Delaware | 001-09186 | 23-2416878 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
250 Gibraltar Road, Horsham, PA | 19044 | |||
(Address of Principal Executive Offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1* |
TOLL BROTHERS, INC. | ||||||
Dated: | December 4, 2018 | By: | /s/ Michael J. Grubb | |||
Michael J. Grubb Senior Vice President, Chief Accounting Officer |
FOR IMMEDIATE RELEASE | CONTACT: Frederick N. Cooper (215) 938-8312 |
December 4, 2018 | fcooper@tollbrothers.com |
• | Net income and earnings per share grew 62% and 78%, respectively, to $311.0 million, or $2.08 per share diluted, compared to net income of $191.9 million, or $1.17 per share diluted, in FY 2017’s fourth quarter |
• | Pre-tax income grew 31% to $396.5 million, compared to $301.7 million in FY 2017’s fourth quarter |
• | Revenues were $2.46 billion, up 21%; home building deliveries were 2,710, up 12% |
• | Net signed contract value was $1.50 billion, down 15%; contract units were 1,715, down 13% |
• | Backlog value at FYE 2018 rose to $5.52 billion, up 9%; units totaled 6,105, up 4% |
• | Gross margin was 21.4%; Adjusted Gross Margin, which excludes interest and inventory write-downs (“Adjusted Gross Margin”), was 24.1% |
• | SG&A, as a percentage of revenues, was 7.6% |
• | Income from operations was 13.8% of revenues |
• | Other income and Income from unconsolidated entities was $58.0 million |
• | The Company repurchased approximately 2.2 million shares of its common stock at an average price of $33.85 per share for an aggregate purchase price of approximately $75.6 million |
▪ | FY 2018 net income and earnings per share rose 40% and 53%, respectively, to $748.2 million, or $4.85 per share diluted, compared to net income of $535.5 million, or $3.17 per share diluted, in FY 2017 |
▪ | Pre-tax income grew 15% to $933.9 million, compared to $814.3 million in FY 2017 |
▪ | Revenues were $7.14 billion, up 23%; home building deliveries were 8,265 units, up 16% |
▪ | Net signed contract value was $7.60 billion, up 11%; contract units were 8,519, up 4% |
▪ | Gross margin was 20.6%; Adjusted Gross Margin was 23.7% |
▪ | SG&A, as a percentage of revenues, was 9.6% |
▪ | Income from operations was 11.0% of revenues |
▪ | Other income and Income from unconsolidated entities was $147.7 million |
▪ | The Company repurchased approximately 12.1 million shares at an average price of $41.56 per share for a total purchase price of approximately $503.2 million |
▪ | Deliveries of between 1,350 and 1,550 units with an average price of between $850,000 and $880,000 |
▪ | Adjusted Gross Margin of approximately 23.5% |
▪ | SG&A, as a percentage of first quarter revenues, of approximately 13.1% |
▪ | Other income and Income from unconsolidated entities of approximately $30 million |
▪ | Tax rate of approximately 27.5% |
▪ | FY 2018’s fourth-quarter net income and earnings per share grew 62% and 78%, respectively, to $311.0 million, or $2.08 per share diluted, compared to FY 2017’s fourth-quarter net income of $191.9 million, or $1.17 per share diluted. |
▪ | FY 2018’s fourth-quarter pre-tax income was $396.5 million, compared to FY 2017’s fourth-quarter pre-tax income of $301.7 million. FY 2018’s fourth-quarter results included pre-tax inventory impairments totaling $6.4 million. FY 2017’s fourth-quarter results included pre-tax inventory impairments of $3.5 million |
▪ | FY 2018’s fourth-quarter total revenues of $2.46 billion and 2,710 units rose 21% in dollars and 12% in units, compared to FY 2017’s fourth-quarter total revenues of $2.03 billion and 2,424 units. The average price of homes delivered was $906,000, compared to $836,600 one year ago. |
▪ | The Company’s FY 2018 fourth-quarter net signed contracts of 1,715 units and $1.50 billion decreased by 13% in units and 15% in dollars, compared to FY 2017’s fourth-quarter net signed contracts of 1,979 units and $1.75 billion. The average price of net signed contracts was $873,800, compared to $886,800 one year ago. |
▪ | On a per-community basis, FY 2018’s fourth-quarter net signed contracts were 5.6, compared to fourth-quarter totals of 6.3 in FY 2017, 5.8 units in FY 2016, and 5.2 in FY 2015. |
▪ | FY 2018’s fourth-quarter gross margin was 21.4%, compared to 22.3% in FY 2017’s fourth quarter. FY 2018’s fourth-quarter Adjusted Gross Margin was 24.1%, compared to FY 2017’s fourth-quarter Adjusted Gross Margin of 25.3%. |
▪ | Interest included in cost of sales was 2.5% of revenues in FY 2018’s fourth quarter, compared to 2.9% in FY 2017’s fourth quarter. |
▪ | SG&A, as a percentage of revenues, was 7.6% in FY 2018’s fourth quarter, compared to 8.2% in FY 2017’s fourth quarter. |
▪ | Income from operations of $338.4 million represented 13.8% of revenues in FY 2018’s fourth quarter, compared to $285.0 million and 14.0% of revenues in FY 2017’s fourth quarter. |
▪ | Other income and Income from unconsolidated entities in FY 2018’s fourth quarter totaled $58.0 million, compared to $16.7 million in FY 2017’s fourth quarter. |
▪ | FY 2018’s fourth-quarter cancellation rate (current-quarter cancellations divided by current-quarter signed contracts) was 9.3%, compared to 7.9% in FY 2017’s fourth quarter. As a percentage of beginning-quarter backlog, FY 2018’s fourth-quarter cancellation rate was 2.5% compared to 2.7% in FY 2017’s fourth quarter. |
▪ | During the fourth quarter of FY 2018, the Company repurchased approximately 2.2 million shares of its common stock at an average price per share of $33.85, for an aggregate purchase price of approximately $75.6 million. |
▪ | In the fourth quarter of FY 2018, the Company spent approximately $205.7 million on land to purchase approximately 1,500 lots. |
▪ | FY 2018’s net income and earnings per share rose 40% and 53%, respectively, to $748.2 million, or $4.85 per share diluted, compared to FY 2017’s net income of $535.5 million, or $3.17 per share diluted. |
▪ | FY 2018’s pre-tax income was $933.9 million, compared to FY 2017’s pre-tax income of $814.3 million. FY 2018’s results included pre-tax inventory impairments totaling $35.2 million. FY 2017’s pre-tax income included pre-tax inventory impairments totaling $14.8 million. |
▪ | FY 2018’s total revenues of $7.14 billion and 8,265 units rose 23% in dollars and 16% in units, compared to FY 2017’s totals of $5.82 billion and 7,151 units. |
▪ | The Company’s FY 2018 net signed contracts of 8,519 units and $7.60 billion, increased 4% in units and 11% in dollars, compared to net contracts of 8,175 units and $6.83 billion in FY 2017. |
▪ | FY 2018’s year-end backlog of $5.52 billion and 6,105 units increased 9% in dollars and 4% in units, compared to FY 2017’s year-end backlog of $5.06 billion and 5,851 units. The average price of homes in backlog was $904,600, compared to $865,100 one year ago. |
▪ | FY 2018’s gross margin was 20.6%, compared to 21.5% in FY 2017. FY 2018’s Adjusted Gross Margin was 23.7%, compared to FY 2017’s Adjusted Gross Margin of 24.8%. |
▪ | Interest included in cost of sales was 2.7% of revenues in FY 2018, compared to 3.0% in FY 2017. |
▪ | SG&A, as a percentage of revenues, was 9.6% in FY 2018, compared to 10.4% in FY 2017. |
▪ | Income from operations of $786.2 million represented 11.0% of revenues in FY 2018, compared to $647.2 million and 11.1% of revenues in FY 2017. |
▪ | Other income and Income from unconsolidated entities in FY 2018 totaled $147.7 million, compared to $167.1 million in FY 2017. |
▪ | The Company ended FY 2018 with $1.18 billion of cash and marketable securities, compared to $522.2 million at FY 2018’s third-quarter end and $712.8 million at FYE 2017. At FYE 2018, the Company also had $1.13 billion available under its $1.295 billion 20-bank revolving credit facility, which matures in May 2021. |
▪ | In FY 2018, the Company repurchased approximately 12.1 million shares at an average price per share of $41.56 for an aggregate purchase price of approximately $503.2 million. |
▪ | On October 27, 2018, the Company paid its quarterly dividend of $0.11 per share to shareholders of record at the close of business on October 13, 2018. |
▪ | Stockholders’ equity at FYE 2018 was $4.76 billion, compared to $4.53 billion at FYE 2017. |
▪ | The Company ended FY 2018 with a debt-to-capital ratio of 43.7%, compared to 44.5% at FY 2018’s third-quarter end, and 41.5% at FYE 2017. The Company ended FY 2018 with a net debt-to-capital ratio of 33.2%, compared to 40.1% at FY 2018’s third-quarter end, and 34.5% at FYE 2017. (1) |
▪ | The Company ended FY 2018 with approximately 53,400 lots owned and optioned, compared to 53,600 one quarter earlier, and 48,300 one year earlier. At FYE 2018, approximately 60% of these lots were owned, of which approximately 16,900 lots, including those in backlog, were substantially improved. |
▪ | In FY 2018, the Company spent approximately $1.0 billion on land to purchase approximately 9,600 lots. |
▪ | The Company ended FY 2018 with 315 selling communities, compared to 301 at FY 2018’s third-quarter end and 305 at FYE 2017. The Company is targeting modest community count growth by FYE 2019. |
▪ | The Company expects FY 2019 first quarter deliveries of between 1,350 and 1,550 units with an average price of between $850,000 and $880,000. |
▪ | The Company expects its FY 2019 first quarter Adjusted Gross Margin to be approximately 23.5%. |
▪ | FY 2019 first quarter SG&A, as a percentage of first quarter revenues, is projected to be approximately 13.1%. |
▪ | The Company’s FY 2019 first quarter Other income and Income from unconsolidated entities is expected to be approximately $30 million. |
▪ | The Company expects its FY 2019’s first quarter tax rate to be approximately 27.5%. |
(1) | See “Reconciliation of Non-GAAP Measures” below for more information on the calculation of the Company’s net debt-to-capital ratio. |
October 31, 2018 | October 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 1,182,195 | $ | 712,829 | |||
Inventory | 7,598,219 | 7,281,453 | |||||
Property, construction and office equipment, net | 193,281 | 189,547 | |||||
Receivables, prepaid expenses and other assets | 550,778 | 544,699 | |||||
Mortgage loans held for sale | 170,731 | 132,922 | |||||
Customer deposits held in escrow | 117,573 | 102,017 | |||||
Investments in unconsolidated entities | 431,813 | 481,758 | |||||
$ | 10,244,590 | $ | 9,445,225 | ||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Loans payable | $ | 686,801 | $ | 637,416 | |||
Senior notes | 2,861,375 | 2,462,463 | |||||
Mortgage company loan facility | 150,000 | 120,145 | |||||
Customer deposits | 410,864 | 396,026 | |||||
Accounts payable | 362,098 | 275,223 | |||||
Accrued expenses | 973,581 | 959,353 | |||||
Income taxes payable | 30,959 | 57,509 | |||||
Total liabilities | 5,475,678 | 4,908,135 | |||||
Equity: | |||||||
Stockholders’ Equity | |||||||
Common stock | 1,779 | 1,779 | |||||
Additional paid-in capital | 727,053 | 720,115 | |||||
Retained earnings | 5,161,551 | 4,474,064 | |||||
Treasury stock, at cost | (1,130,878 | ) | (662,854 | ) | |||
Accumulated other comprehensive income (loss) | 694 | (1,910 | ) | ||||
Total stockholders' equity | 4,760,199 | 4,531,194 | |||||
Noncontrolling interest | 8,713 | 5,896 | |||||
Total equity | 4,768,912 | 4,537,090 | |||||
$ | 10,244,590 | $ | 9,445,225 |
Twelve Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||
Revenues | $ | 7,143,258 | $ | 5,815,058 | $ | 2,455,238 | $ | 2,027,907 | |||||||||||||||
Cost of revenues | 5,673,007 | 79.4 | % | 4,562,303 | 78.5 | % | 1,930,751 | 78.6 | % | 1,575,832 | 77.7 | % | |||||||||||
Gross margin | 1,470,251 | 20.6 | % | 1,252,755 | 21.5 | % | 524,487 | 21.4 | % | 452,075 | 22.3 | % | |||||||||||
Selling, general and administrative expenses | 684,035 | 9.6 | % | 605,572 | 10.4 | % | 186,045 | 7.6 | % | 167,075 | 8.2 | % | |||||||||||
Income from operations | 786,216 | 11.0 | % | 647,183 | 11.1 | % | 338,442 | 13.8 | % | 285,000 | 14.1 | % | |||||||||||
Other: | |||||||||||||||||||||||
Income from unconsolidated entities | 85,240 | 116,066 | 31,327 | 3,792 | |||||||||||||||||||
Other income - net | 62,460 | 51,062 | 26,704 | 12,955 | |||||||||||||||||||
Income before income taxes | 933,916 | 814,311 | 396,473 | 301,747 | |||||||||||||||||||
Income tax provision | 185,765 | 278,816 | 85,497 | 109,869 | |||||||||||||||||||
Net income | $ | 748,151 | $ | 535,495 | $ | 310,976 | $ | 191,878 | |||||||||||||||
Per share: | |||||||||||||||||||||||
Basic earnings | $ | 4.92 | $ | 3.30 | $ | 2.10 | $ | 1.20 | |||||||||||||||
Diluted earnings | $ | 4.85 | $ | 3.17 | $ | 2.08 | $ | 1.17 | |||||||||||||||
Cash dividend declared | $ | 0.41 | $ | 0.24 | $ | 0.11 | $ | 0.08 | |||||||||||||||
Weighted-average number of shares: | |||||||||||||||||||||||
Basic | 151,984 | 162,222 | 148,066 | 159,332 | |||||||||||||||||||
Diluted | 154,201 | 169,487 | 149,603 | 164,565 | |||||||||||||||||||
Effective tax rate | 19.9% | 34.2% | 21.6% | 36.4% |
Twelve Months Ended October 31, | Three Months Ended October 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Impairment charges recognized: | |||||||||||||||
Cost of sales - land owned/controlled for future communities | $ | 9,030 | $ | 4,999 | $ | 6,410 | $ | 1,980 | |||||||
Cost of sales - operating communities | 26,126 | 9,795 | — | 1,500 | |||||||||||
$ | 35,156 | $ | 14,794 | $ | 6,410 | $ | 3,480 | ||||||||
Depreciation and amortization | $ | 25,259 | $ | 25,361 | $ | 6,535 | $ | 6,924 | |||||||
Interest incurred | $ | 165,977 | $ | 175,944 | $ | 42,949 | $ | 45,057 | |||||||
Interest expense: | |||||||||||||||
Charged to cost of sales | $ | 190,734 | $ | 172,832 | $ | 61,819 | $ | 58,467 | |||||||
Charged to other income - net | 3,760 | 4,823 | 1,501 | 2,726 | |||||||||||
$ | 194,494 | $ | 177,655 | $ | 63,320 | $ | 61,193 | ||||||||
Home sites controlled: | October 31, 2018 | October 31, 2017 | |||||||||||||
Owned | 32,503 | 31,341 | |||||||||||||
Optioned | 20,919 | 16,970 | |||||||||||||
53,422 | 48,311 |
October 31, 2018 | October 31, 2017 | ||||||
Land and land development costs | $ | 1,917,354 | $ | 1,861,820 | |||
Construction in progress | 4,917,917 | 4,720,926 | |||||
Sample homes | 493,037 | 506,557 | |||||
Land deposits and costs of future development | 245,114 | 167,445 | |||||
Other | 24,797 | 24,705 | |||||
$ | 7,598,219 | $ | 7,281,453 |
North: | Connecticut, Illinois, Massachusetts, Michigan, Minnesota, New Jersey and New York |
Mid-Atlantic: | Delaware, Maryland, Pennsylvania and Virginia |
South: | Florida, North Carolina and Texas |
West: | Arizona, Colorado, Idaho, Nevada and Washington |
California: | California |
Three Months Ended October 31, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
HOME BUILDING REVENUES | |||||||||||||||||||||
North | 503 | 327 | $ | 348.9 | $ | 214.7 | $ | 693,700 | $ | 656,700 | |||||||||||
Mid-Atlantic | 583 | 548 | 375.2 | 337.8 | 643,600 | 616,400 | |||||||||||||||
South | 449 | 439 | 333.9 | 332.7 | 743,700 | 758,000 | |||||||||||||||
West | 628 | 543 | 461.5 | 330.5 | 734,800 | 608,600 | |||||||||||||||
California | 500 | 420 | 872.6 | 622.2 | 1,745,100 | 1,481,400 | |||||||||||||||
Traditional Home Building | 2,663 | 2,277 | 2,392.1 | 1,837.9 | 898,300 | 807,200 | |||||||||||||||
City Living | 47 | 147 | 63.1 | 190.0 | 1,343,600 | 1,292,400 | |||||||||||||||
Total consolidated | 2,710 | 2,424 | $ | 2,455.2 | $ | 2,027.9 | $ | 906,000 | $ | 836,600 | |||||||||||
CONTRACTS | |||||||||||||||||||||
North | 347 | 327 | $ | 238.4 | $ | 223.1 | $ | 687,100 | $ | 682,300 | |||||||||||
Mid-Atlantic | 383 | 422 | 255.3 | 277.6 | 666,700 | 657,700 | |||||||||||||||
South | 319 | 340 | 242.9 | 253.5 | 761,400 | 745,500 | |||||||||||||||
West | 418 | 440 | 313.5 | 298.6 | 750,000 | 678,700 | |||||||||||||||
California | 226 | 373 | 410.4 | 605.9 | 1,815,800 | 1,624,400 | |||||||||||||||
Traditional Home Building | 1,693 | 1,902 | 1,460.5 | 1,658.7 | 862,700 | 872,000 | |||||||||||||||
City Living | 22 | 77 | 38.1 | 96.3 | 1,732,900 | 1,251,100 | |||||||||||||||
Total consolidated | 1,715 | 1,979 | $ | 1,498.6 | $ | 1,755.0 | $ | 873,800 | $ | 886,800 | |||||||||||
BACKLOG | |||||||||||||||||||||
North | 1,098 | 1,217 | $ | 768.5 | $ | 816.1 | $ | 699,900 | $ | 670,600 | |||||||||||
Mid-Atlantic | 1,142 | 1,143 | 758.8 | 741.6 | 664,400 | 648,800 | |||||||||||||||
South | 1,166 | 1,055 | 903.2 | 815.9 | 774,600 | 773,400 | |||||||||||||||
West | 1,400 | 1,397 | 1,031.1 | 972.0 | 736,500 | 695,700 | |||||||||||||||
California | 1,133 | 887 | 1,883.3 | 1,495.1 | 1,662,200 | 1,685,600 | |||||||||||||||
Traditional Home Building | 5,939 | 5,699 | 5,344.9 | 4,840.7 | 900,000 | 849,400 | |||||||||||||||
City Living | 166 | 152 | 177.6 | 220.8 | 1,069,700 | 1,452,700 | |||||||||||||||
Total consolidated | 6,105 | 5,851 | $ | 5,522.5 | $ | 5,061.5 | $ | 904,600 | $ | 865,100 |
Twelve Months Ended October 31, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
HOME BUILDING REVENUES | |||||||||||||||||||||
North | 1,453 | 1,139 | $ | 975.7 | $ | 775.5 | $ | 671,500 | $ | 680,900 | |||||||||||
Mid-Atlantic | 1,800 | 1,681 | 1,141.1 | 1,030.3 | 633,900 | 612,900 | |||||||||||||||
South | 1,391 | 1,247 | 1,045.4 | 924.0 | 751,500 | 741,000 | |||||||||||||||
West | 2,130 | 1,783 | 1,451.4 | 1,151.7 | 681,400 | 645,900 | |||||||||||||||
California | 1,322 | 1,041 | 2,208.7 | 1,550.5 | 1,670,700 | 1,489,400 | |||||||||||||||
Traditional Home Building | 8,096 | 6,891 | 6,822.3 | 5,432.0 | 842,700 | 788,300 | |||||||||||||||
City Living | 169 | 260 | 321.0 | 383.1 | 1,899,400 | 1,473,500 | |||||||||||||||
Total consolidated | 8,265 | 7,151 | $ | 7,143.3 | $ | 5,815.1 | $ | 864,300 | $ | 813,200 | |||||||||||
CONTRACTS | |||||||||||||||||||||
North | 1,334 | 1,379 | $ | 928.1 | $ | 898.9 | $ | 695,700 | $ | 651,800 | |||||||||||
Mid-Atlantic | 1,799 | 1,838 | 1,158.3 | 1,161.9 | 643,900 | 632,200 | |||||||||||||||
South | 1,502 | 1,342 | 1,132.7 | 1,003.5 | 754,100 | 747,800 | |||||||||||||||
West | 2,133 | 2,032 | 1,510.5 | 1,318.3 | 708,200 | 648,800 | |||||||||||||||
California | 1,568 | 1,395 | 2,596.9 | 2,177.9 | 1,656,200 | 1,561,200 | |||||||||||||||
Traditional Home Building | 8,336 | 7,986 | 7,326.5 | 6,560.5 | 878,900 | 821,500 | |||||||||||||||
City Living | 183 | 189 | 277.8 | 267.8 | 1,518,000 | 1,416,900 | |||||||||||||||
Total consolidated | 8,519 | 8,175 | $ | 7,604.3 | $ | 6,828.3 | $ | 892,600 | $ | 835,300 |
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Three months ended October 31, | |||||||||||||||||||||
Revenues | 27 | 21 | $ | 44.0 | $ | 23.6 | $ | 1,631,400 | $ | 1,125,000 | |||||||||||
Contracts | 13 | 36 | $ | 42.6 | $ | 58.6 | $ | 3,279,700 | $ | 1,629,100 | |||||||||||
Twelve months ended October 31, | |||||||||||||||||||||
Revenues | 100 | 197 | $ | 148.0 | $ | 475.3 | $ | 1,480,000 | $ | 2,412,500 | |||||||||||
Contracts | 156 | 143 | $ | 301.9 | $ | 196.7 | $ | 1,935,100 | $ | 1,375,400 | |||||||||||
Backlog at October 31, | 172 | 116 | $ | 321.3 | $ | 167.4 | $ | 1,868,100 | $ | 1,443,500 |
Three Months Ended October 31, | Twelve Months Ended October 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenues | $ | 2,455,238 | $ | 2,027,907 | $ | 7,143,258 | $ | 5,815,058 | ||||||||
Cost of revenues | 1,930,751 | 1,575,832 | 5,673,007 | 4,562,303 | ||||||||||||
Gross margin | 524,487 | 452,075 | 1,470,251 | 1,252,755 | ||||||||||||
Add: | Interest recognized in cost of sales | 61,819 | 58,467 | 190,734 | 172,832 | |||||||||||
Inventory write-downs | 6,410 | 3,480 | 35,156 | 14,794 | ||||||||||||
Adjusted gross margin | $ | 592,716 | $ | 514,022 | $ | 1,696,141 | $ | 1,440,381 | ||||||||
Gross margin as a percentage of revenues | 21.4 | % | 22.3 | % | 20.6 | % | 21.5 | % | ||||||||
Adjusted Gross Margin | 24.1 | % | 25.3 | % | 23.7 | % | 24.8 | % | ||||||||
October 31, 2018 | October 31, 2017 | July 31, 2018 | ||||||||||
Loans payable | $ | 686,801 | $ | 637,416 | $ | 694,409 | ||||||
Senior notes | 2,861,375 | 2,462,463 | 2,860,771 | |||||||||
Mortgage company loan facility | 150,000 | 120,145 | 82,274 | |||||||||
Total debt | 3,698,176 | 3,220,024 | 3,637,454 | |||||||||
Total stockholders' equity | 4,760,199 | 4,531,194 | 4,528,664 | |||||||||
Total capital | $ | 8,458,375 | $ | 7,751,218 | $ | 8,166,118 | ||||||
Ratio of debt-to-capital | 43.7 | % | 41.5 | % | 44.5 | % | ||||||
Total debt | $ | 3,698,176 | $ | 3,220,024 | $ | 3,637,454 | ||||||
Less: | Mortgage company loan facility | (150,000 | ) | (120,145 | ) | (82,274 | ) | |||||
Cash and cash equivalents | (1,182,195 | ) | (712,829 | ) | (522,181 | ) | ||||||
Total net debt | 2,365,981 | 2,387,050 | 3,032,999 | |||||||||
Total stockholders' equity | 4,760,199 | 4,531,194 | 4,528,664 | |||||||||
Total net capital | $ | 7,126,180 | $ | 6,918,244 | $ | 7,561,663 | ||||||
Net debt-to-capital ratio | 33.2 | % | 34.5 | % | 40.1 | % |