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HORSHAM, PA-During this year’s second fiscal quarter and first half, locally based Toll Brothers continued to hit new highs in revenue, profits, sales and backlog while the selling prices of its luxury homes also keep ratcheting up. More than a dozen high-rise condos that dot the map from California to Rhode Island are the newest addition to the company’s portfolio of residential communities, and Robert I. Toll, chairman and CEO, said it is holding back on pre-sales at one of its waterfront Hoboken, NJ condos in anticipation of increases in prices.

Second-quarter income grew to $170.1 million, a 135%-increase over the same quarter a year ago. Second-quarter contracts reached $2.2 billion for 3,181 homes, up 38% over the corresponding quarter of 2004. Its second-quarter backlog is close to $5.9 billion for 8,561 homes, “the highest in the company’s history,” Toll says. Second-quarter revenues were just under $1.3 billion, an increase of 52% compared with the same quarter the previous year.

Going forward, the company has 68,000 home sites and, of those, 56% are options on land and the rest are owned. Toll says that is a five- to six-year supply. “The luxury market is the sweetest spot in the homebuilding industry,” he says, explaining that it is not as vulnerable to rising interest rates and economic downturns as other home sectors.

The average home price in Toll Brothers’ portfolio was $644,000 in second quarter, and the average price for contracts signed during the quarter is $693,000. Year-over-year, Toll said, prices for the company’s homes in the Las Vegas area rose between 30% and 40%, were up approximately 20% along Florida’s east coast and about 15% along its west coast. Prices are softer, he said, in Detroit, Boston and Dallas, where they rose, on average, about 5%.

Asked about the company’s upcoming geographic focus, Toll cited Arizona and San Francisco, but added, “We don’t care if it’s Massachusetts, New Jersey, Illinois or where, we look for opportunities. We believe our expertise in securing land and opening communities in highly-regulated, upscale markets gives us a competitive advantage both today and in the future.”

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