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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $0.01 per share | TOL | The New York Stock Exchange |
Guarantee of Toll Brothers Finance Corp. 5.625% Senior Notes due 2024 | TOL/24 | The New York Stock Exchange |
99.1* |
TOLL BROTHERS, INC. | ||||||
Dated: | May 21, 2019 | By: | /s/ Michael J. Grubb | |||
Michael J. Grubb Senior Vice President, Chief Accounting Officer |
FOR IMMEDIATE RELEASE | CONTACT: Frederick N. Cooper (215) 938-8312 |
May 21, 2019 | fcooper@tollbrothers.com |
▪ | Net income and earnings per share were $129.3 million and $0.87 per share diluted, compared to net income of $111.8 million and $0.72 per share diluted in FY 2018’s second quarter. |
▪ | Pre-tax income grew 15% to $176.2 million, compared to $152.7 million in FY 2018’s second quarter. |
▪ | Impairments were $19.4 million compared to $13.8 million. |
▪ | Home sales revenues were $1.71 billion, up 7%; home building deliveries were 1,911, up 1%. |
▪ | Net signed contract value was $2.00 billion, down 16%; contract units were 2,424, down 9%. |
▪ | Backlog value at second-quarter end was $5.66 billion, down 11%; units in backlog totaled 6,467, down 8%. |
▪ | Home sales gross margin was 19.7%; Adjusted Home Sales Gross Margin, which excludes interest and inventory write-downs (“Adjusted Home Sales Gross Margin”), was 23.5%. |
▪ | SG&A, as a percentage of home sales revenues, was 10.4%. |
▪ | Income from operations was 9.4% of total revenues. |
▪ | Other income and Income from unconsolidated entities was $15.7 million. |
▪ | Third quarter deliveries of between 1,800 and 2,000 units with an average price of between $855,000 and $880,000. |
▪ | FY 2019 deliveries of between 7,700 and 8,100 units with an average price of between $855,000 and $880,000. |
▪ | Third quarter Adjusted Home Sales Gross Margin of approximately 22.5%. |
▪ | FY 2019 Adjusted Home Sales Gross Margin of approximately 23.0%. |
▪ | Third quarter SG&A, as a percentage of home sales revenues, of approximately 10.7%. |
▪ | FY 2019 SG&A, as a percentage of home sales revenues, of approximately 10.4%. |
▪ | Third quarter Other income, Income from unconsolidated entities, and land sales gross profit of approximately $13 million. |
▪ | FY 2019 Other income, Income from unconsolidated entities, and land sales gross profit of approximately $100 million. |
▪ | Third quarter and fourth quarter tax rate of approximately 27.5%. |
▪ | FY 2019’s second quarter net income and earnings per share increased 16% and 21%, respectively, to $129.3 million, or $0.87 per share diluted, compared to FY 2018’s second quarter net income of $111.8 million, or $0.72 per share diluted. |
▪ | FY 2019’s second quarter pre-tax income was $176.2 million, compared to FY 2018’s second quarter pre-tax income of $152.7 million. FY 2019’s second quarter results included pre-tax inventory impairments totaling $19.4 million. FY 2018’s second quarter results included pre-tax inventory impairments of $13.8 million |
▪ | FY 2019’s six-month net income was $241.4 million, or $1.63 per share diluted, compared to FY 2018’s six-month net income of $243.9 million, or $1.55 per share diluted. |
▪ | FY 2019’s six-month pre-tax income was $327.6 million, compared to FY 2018’s six-month pre-tax income of $284.3 million. |
▪ | FY 2019’s six-month pre-tax income results included pre-tax inventory write-downs totaling $27.0 million ($23.3 million attributable to operating communities and $3.7 million attributable to future communities). FY 2018’s six-month pre-tax income results included inventory write-downs of $17.7 million ($17.1 million attributable to operating communities and $0.6 million attributable to future communities). |
▪ | FY 2019’s second quarter home sales revenues of $1.71 billion and 1,911 units rose 7% in dollars and 1% in units, compared to FY 2018’s second quarter totals of $1.60 billion and 1,886 units. |
▪ | FY 2019’s six-month total revenues of $3.03 billion and 3,441 units rose 9% in dollars and 4% in units, compared to FY 2018’s six-month period totals of $2.77 billion and 3,309 units. |
▪ | The Company’s FY 2019 second quarter net signed contracts of 2,424 units and $2.00 billion, decreased by 9% in units and 16% in dollars, compared to FY 2018’s second quarter net contracts of 2,666 units and $2.38 billion. |
▪ | The Company’s FY 2019 six-month net signed contracts of $3.17 billion and 3,803 units decreased 22% in dollars and 15% in units, compared to net signed contracts of $4.07 billion and 4,488 units in FY 2018’s six-month period. |
▪ | In FY 2019, second quarter-end backlog of $5.66 billion and 6,467 units decreased 11% in dollars and 8% in units, compared to FY 2018’s second quarter-end backlog of $6.36 billion and 7,030 units. The average price of homes in backlog was $875,500, compared to $904,800 at FY 2018’s second quarter end. |
▪ | FY 2019’s second quarter home sales gross margin was 19.7%, compared to 18.8% in FY 2018’s second quarter. FY 2019’s second quarter Adjusted Home Sales Gross Margin was 23.5%, compared to FY 2018’s second quarter Adjusted Home Sales Gross Margin of 22.5%. |
▪ | FY 2019’s second quarter land sales gross profit was $1.1 million. Due to the adoption of Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers”, land sales gross profit is presented separately. In prior years, land sales gross profit was included in Other income. |
▪ | Interest included in cost of sales was 2.6% of revenue in FY 2019’s second quarter, compared to 2.8% in FY 2018’s second quarter. |
▪ | SG&A, as a percentage of home sales revenues, was 10.4% in FY 2019’s second quarter, compared to 10.4% in FY 2018’s second quarter. |
▪ | Income from operations of $160.5 million represented 9.4% of total revenues in FY 2019’s second quarter, compared to $134.4 million and 8.4% of revenues in FY 2018’s second quarter. |
▪ | Income from operations of $284.9 million represented 9.3% of total revenues in FY 2019’s six-month period, compared to $218.1 million and 7.9% of revenues in FY 2018’s six-month period. |
▪ | Other income and Income from unconsolidated entities in FY 2019’s second quarter totaled $15.7 million, compared to $18.4 million in FY 2018’s second quarter. |
▪ | Other income and Income from unconsolidated entities in FY 2019’s six-month period totaled $42.7 million, compared to $66.2 million in FY 2018’s six-month period. |
▪ | FY 2019’s second-quarter cancellation rate (current quarter cancellations divided by current quarter signed contracts) was 5.3%, compared to 5.6%, in FY 2018’s second quarter. As a percentage of beginning quarter backlog, FY 2019’s second quarter cancellation rate was 2.3%, compared to 2.5% in FY 2018’s second quarter. |
▪ | The Company ended its FY 2019 second quarter with $924.4 million in cash and cash equivalents, compared to $801.7 million at FY 2019’s first-quarter end, and $475.1 million at FY 2018’s second-quarter end. At FY 2019’s second-quarter end, the Company also had $1.12 billion available under its $1.295 billion, 20-bank revolving credit facility, which matures in May 2021. |
▪ | During the second quarter of FY 2019, the Company repurchased approximately 2,700 shares at an average price per share of $36.95, for an aggregate purchase price of approximately $0.1 million. |
▪ | To-date in FY 2019, the Company has repurchased approximately 788,000 shares of its common stock at an average price of $32.04, for a total purchase price of approximately $25.2 million. |
▪ | On April 26, 2019, the Company paid its quarterly dividend of $0.11 per share to shareholders of record at the close of business on April 12, 2019. |
▪ | Stockholders’ Equity at FY 2019’s second-quarter end was $4.94 billion, compared to $4.48 billion at FY 2018’s second-quarter end. Book value per share for FY 2019’s second-quarter end was $33.84 per share, compared to $29.50 at FY 2018’s second-quarter end. |
▪ | The Company ended its FY 2019 second quarter with a debt-to-capital ratio of 42.5%, compared to 42.7% at FY 2019’s first-quarter end and 44.6% at FY 2018’s second-quarter end. The Company ended FY 2019’s second quarter with a net debt-to-capital ratio (1) of 34.6%, compared to 36.0% at FY 2019’s first-quarter end, and 40.4% at FY 2018’s second-quarter end. |
▪ | The Company ended FY 2019’s second quarter with approximately 54,500 lots owned and optioned, compared to 54,000 one quarter earlier, and 51,000 one year earlier. Approximately 33,500 of these lots were owned, of which approximately 16,000 lots, including those in backlog, were substantially improved. |
▪ | In the second quarter of FY 2019, the Company spent approximately $218.2 million on land to purchase approximately 2,100 lots. |
▪ | The Company ended FY 2019’s second quarter with 311 selling communities, compared to 317 at FY 2019’s first-quarter end and 283 at FY 2018’s second-quarter end. |
▪ | Based on FY 2019’s second-quarter-end backlog and the pace of activity at its communities, the Company now estimates it will deliver between 7,700 and 8,100 homes in FY 2019. It believes the average delivered price for FY 2019 will be between $855,000 and $880,000 per home. This translates to projected home sales revenues of between $6.58 billion and $7.13 billion in FY 2019, compared to $7.14 billion in FY 2018. |
▪ | The Company expects FY 2019 third quarter deliveries of between 1,800 and 2,000 units with an average price of between $855,000 and $880,000. |
▪ | The Company expects its third quarter FY 2019 Adjusted Home Sales Gross Margin to be approximately 22.5% of home sales revenues. |
▪ | The Company expects its FY 2019 Adjusted Home Sales Gross Margin to be approximately 23.0% of home sales revenues. |
▪ | FY 2019 third quarter SG&A is expected to be approximately 10.7% of third quarter home sales revenues. |
▪ | FY 2019 SG&A is expected to be approximately 10.4% of FY 2019 home sales revenues. |
▪ | The Company’s third quarter FY 2019 Other income, Income from unconsolidated entities, and land sales gross profit is expected to total approximately $13 million. |
▪ | FY 2019 Other income, Income from unconsolidated entities, and land sales gross profit is expected to total approximately $100 million. |
▪ | The FY 2019 third quarter and FY 2019 fourth quarter effective tax rates are expected 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. |
April 30, 2019 | October 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 924,448 | $ | 1,182,195 | |||
Inventory | 7,790,840 | 7,598,219 | |||||
Property, construction and office equipment, net | 289,186 | 193,281 | |||||
Receivables, prepaid expenses and other assets | 659,768 | 550,778 | |||||
Mortgage loans held for sale | 124,940 | 170,731 | |||||
Customer deposits held in escrow | 97,462 | 117,573 | |||||
Investments in unconsolidated entities | 390,085 | 431,813 | |||||
$ | 10,276,729 | $ | 10,244,590 | ||||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Loans payable | $ | 1,027,408 | $ | 686,801 | |||
Senior notes | 2,512,404 | 2,861,375 | |||||
Mortgage company loan facility | 110,012 | 150,000 | |||||
Customer deposits | 419,479 | 410,864 | |||||
Accounts payable | 318,346 | 362,098 | |||||
Accrued expenses | 890,668 | 973,581 | |||||
Income taxes payable | 12,172 | 30,959 | |||||
Total liabilities | 5,290,489 | 5,475,678 | |||||
Equity: | |||||||
Stockholders’ Equity | |||||||
Common stock | 1,779 | 1,779 | |||||
Additional paid-in capital | 721,311 | 727,053 | |||||
Retained earnings | 5,352,424 | 5,161,551 | |||||
Treasury stock, at cost | (1,135,166 | ) | (1,130,878 | ) | |||
Accumulated other comprehensive income | 806 | 694 | |||||
Total stockholders' equity | 4,941,154 | 4,760,199 | |||||
Noncontrolling interest | 45,086 | 8,713 | |||||
Total equity | 4,986,240 | 4,768,912 | |||||
$ | 10,276,729 | $ | 10,244,590 |
Six Months Ended April 30, | Three Months Ended April 30, | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||
Revenues: | |||||||||||||||||||||||
Home sales | $ | 3,031,365 | $ | 2,774,667 | $ | 1,712,057 | $ | 1,599,199 | |||||||||||||||
Land sales (1) | 47,910 | 4,037 | |||||||||||||||||||||
3,079,275 | 2,774,667 | 1,716,094 | 1,599,199 | ||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Home sales | 2,416,592 | 79.7 | % | 2,232,637 | 80.5 | % | 1,374,347 | 80.3 | % | 1,298,157 | 81.2 | % | |||||||||||
Land sales (1) | 37,174 | 77.6 | % | 2,921 | 72.4 | % | |||||||||||||||||
2,453,766 | 2,232,637 | 1,377,268 | 1,298,157 | ||||||||||||||||||||
Gross margin - home sales | 614,773 | 20.3 | % | 542,030 | 19.5 | % | 337,710 | 19.7 | % | 301,042 | 18.8 | % | |||||||||||
Gross margin - land sales (1) | 10,736 | 22.4 | % | 1,116 | 27.6 | % | |||||||||||||||||
Selling, general and administrative expenses | $ | 340,609 | 11.2 | % | $ | 323,919 | 11.7 | % | $ | 178,371 | 10.4 | % | $ | 166,652 | 10.4 | % | |||||||
Income from operations | 284,900 | 9.3 | % | 218,111 | 7.9 | % | 160,455 | 9.4 | % | 134,390 | 8.4 | % | |||||||||||
Other: | |||||||||||||||||||||||
Income from unconsolidated entities | 10,559 | 41,444 | 4,419 | 2,564 | |||||||||||||||||||
Other income - net | 32,146 | 24,791 | 11,285 | 15,794 | |||||||||||||||||||
Income before income taxes | 327,605 | 284,346 | 176,159 | 152,748 | |||||||||||||||||||
Income tax provision | 86,231 | 40,429 | 46,835 | 40,938 | |||||||||||||||||||
Net income | $ | 241,374 | $ | 243,917 | $ | 129,324 | $ | 111,810 | |||||||||||||||
Per share: | |||||||||||||||||||||||
Basic earnings | $ | 1.65 | $ | 1.58 | $ | 0.88 | $ | 0.73 | |||||||||||||||
Diluted earnings | $ | 1.63 | $ | 1.55 | $ | 0.87 | $ | 0.72 | |||||||||||||||
Cash dividend declared | $ | 0.22 | $ | 0.19 | $ | 0.11 | $ | 0.11 | |||||||||||||||
Weighted-average number of shares: | |||||||||||||||||||||||
Basic | 146,687 | 154,306 | 146,622 | 152,731 | |||||||||||||||||||
Diluted | 148,081 | 157,013 | 148,129 | 155,129 | |||||||||||||||||||
Effective tax rate | 26.3% | 14.2% | 26.6% | 26.8% |
(1) | On November 1, 2018, we adopted Accounting Standard Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). Upon adoption, land sale activity is presented as part of income from operations where previously it was included in "Other income - net." Prior periods are not restated. During the six months ended April 30, 2018, we recognized land sales revenues and land sales cost of revenues of $41.4 million and $38.1 million, respectively. During the three months ended April 30, 2018, we recognized land sales revenues and land sales cost of revenues of $34.4 million and $31.8 million, respectively. |
Six Months Ended April 30, | Three Months Ended April 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Impairment charges recognized: | |||||||||||||||
Cost of home sales - land owned/controlled for future communities | $ | 3,676 | $ | 624 | $ | 1,899 | $ | 507 | |||||||
Cost of home sales - operating communities | 23,280 | 17,061 | 17,495 | 13,325 | |||||||||||
$ | 26,956 | $ | 17,685 | $ | 19,394 | $ | 13,832 | ||||||||
Depreciation and amortization | $ | 33,314 | $ | 12,520 | $ | 17,645 | $ | 6,349 | |||||||
Interest incurred | $ | 87,862 | $ | 81,269 | $ | 43,440 | $ | 42,582 | |||||||
Interest expense: | |||||||||||||||
Charged to home sales cost of sales | $ | 79,227 | $ | 78,912 | $ | 44,786 | $ | 45,027 | |||||||
Charged to land sales cost of sales | 635 | 283 | |||||||||||||
Charged to other income - net | 1,001 | 285 | |||||||||||||
$ | 79,862 | $ | 79,913 | $ | 45,069 | $ | 45,312 | ||||||||
Home sites controlled: | April 30, 2019 | April 30, 2018 | |||||||||||||
Owned | 33,497 | 31,991 | |||||||||||||
Optioned | 21,096 | 19,001 | |||||||||||||
54,593 | 50,992 |
April 30, 2019 | October 31, 2018 | ||||||
Land and land development costs | $ | 2,201,475 | $ | 1,917,354 | |||
Construction in progress | 4,900,353 | 4,917,917 | |||||
Sample homes | 421,271 | 493,037 | |||||
Land deposits and costs of future development | 267,741 | 245,114 | |||||
Other | 24,797 | ||||||
$ | 7,790,840 | $ | 7,598,219 |
North: | Connecticut, Illinois, Massachusetts, Michigan, New Jersey and New York |
Mid-Atlantic: | Delaware, Maryland, Pennsylvania and Virginia |
South: | Florida, North Carolina and Texas |
West: | Arizona, Colorado, Idaho, Nevada, Oregon, Utah and Washington |
California: | California |
Three Months Ended April 30, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
REVENUES | |||||||||||||||||||||
North | 316 | 338 | $ | 221.9 | $ | 226.2 | $ | 702,200 | $ | 669,300 | |||||||||||
Mid-Atlantic | 387 | 398 | 255.7 | 254.9 | 660,700 | 640,500 | |||||||||||||||
South | 380 | 319 | 284.4 | 240.7 | 748,300 | 754,600 | |||||||||||||||
West | 488 | 532 | 364.9 | 349.4 | 747,700 | 656,700 | |||||||||||||||
California | 268 | 270 | 500.5 | 438.4 | 1,867,700 | 1,623,500 | |||||||||||||||
Traditional Home Building | 1,839 | 1,857 | 1,627.4 | 1,509.6 | 884,900 | 812,900 | |||||||||||||||
City Living | 72 | 29 | 84.1 | 89.6 | 1,167,700 | 3,090,800 | |||||||||||||||
Corporate and other | 0.6 | ||||||||||||||||||||
Total home sales | 1,911 | 1,886 | 1,712.1 | 1,599.2 | $ | 895,900 | $ | 847,900 | |||||||||||||
Land sales | 4.0 | ||||||||||||||||||||
Total consolidated | $ | 1,716.1 | $ | 1,599.2 | |||||||||||||||||
CONTRACTS | |||||||||||||||||||||
North | 407 | 363 | $ | 285.5 | $ | 252.5 | $ | 701,400 | $ | 695,600 | |||||||||||
Mid-Atlantic | 530 | 548 | 346.5 | 347.8 | 653,700 | 634,600 | |||||||||||||||
South | 498 | 466 | 348.1 | 339.5 | 698,900 | 728,400 | |||||||||||||||
West | 643 | 660 | 454.4 | 445.1 | 706,800 | 674,400 | |||||||||||||||
California | 305 | 564 | 505.7 | 901.2 | 1,657,900 | 1,597,900 | |||||||||||||||
Traditional Home Building | 2,383 | 2,601 | 1,940.2 | 2,286.1 | 814,200 | 878,900 | |||||||||||||||
City Living | 41 | 65 | 63.1 | 97.1 | 1,538,900 | 1,494,300 | |||||||||||||||
Total consolidated | 2,424 | 2,666 | $ | 2,003.3 | $ | 2,383.2 | $ | 826,400 | $ | 893,900 | |||||||||||
BACKLOG | |||||||||||||||||||||
North | 1,193 | 1,304 | $ | 834.8 | $ | 905.6 | $ | 699,700 | $ | 694,500 | |||||||||||
Mid-Atlantic | 1,327 | 1,285 | 865.5 | 839.7 | 652,200 | 653,400 | |||||||||||||||
South | 1,271 | 1,284 | 955.5 | 982.2 | 751,800 | 765,000 | |||||||||||||||
West | 1,472 | 1,602 | 1,088.3 | 1,143.6 | 739,300 | 713,800 | |||||||||||||||
California | 1,110 | 1,384 | 1,789.9 | 2,316.8 | 1,612,600 | 1,674,000 | |||||||||||||||
Traditional Home Building | 6,373 | 6,859 | 5,534.0 | 6,187.9 | 868,400 | 902,200 | |||||||||||||||
City Living | 94 | 171 | 127.7 | 172.5 | 1,358,400 | 1,009,000 | |||||||||||||||
Total consolidated | 6,467 | 7,030 | $ | 5,661.7 | $ | 6,360.4 | $ | 875,500 | $ | 904,800 |
Six Months Ended April 30, | |||||||||||||||||||||
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
REVENUES | |||||||||||||||||||||
North | 553 | 547 | $ | 391.4 | $ | 360.5 | $ | 707,800 | $ | 659,000 | |||||||||||
Mid-Atlantic | 692 | 730 | 461.4 | 461.9 | 666,800 | 632,700 | |||||||||||||||
South | 661 | 540 | 492.5 | 412.2 | 745,100 | 763,300 | |||||||||||||||
West | 922 | 944 | 665.3 | 607.4 | 721,600 | 643,400 | |||||||||||||||
California | 477 | 455 | 870.6 | 725.5 | 1,825,200 | 1,594,500 | |||||||||||||||
Traditional Home Building | 3,305 | 3,216 | 2,881.2 | 2,567.5 | 871,800 | 798,400 | |||||||||||||||
City Living | 136 | 93 | 152.7 | 207.2 | 1,122,800 | 2,228,000 | |||||||||||||||
Corporate and other | (2.5 | ) | |||||||||||||||||||
Total home sales | 3,441 | 3,309 | 3,031.4 | 2,774.7 | $ | 881,000 | $ | 838,500 | |||||||||||||
Land sales | 47.9 | ||||||||||||||||||||
Total consolidated | $ | 3,079.3 | $ | 2,774.7 | |||||||||||||||||
CONTRACTS | |||||||||||||||||||||
North | 648 | 634 | $ | 457.0 | $ | 450.0 | $ | 705,200 | $ | 709,800 | |||||||||||
Mid-Atlantic | 877 | 872 | 567.5 | 559.9 | 647,100 | 642,100 | |||||||||||||||
South | 766 | 769 | 543.5 | 578.5 | 709,500 | 752,300 | |||||||||||||||
West | 994 | 1,149 | 721.3 | 779.0 | 725,700 | 678,000 | |||||||||||||||
California | 454 | 952 | 774.6 | 1,547.2 | 1,706,200 | 1,625,200 | |||||||||||||||
Traditional Home Building | 3,739 | 4,376 | 3,063.9 | 3,914.6 | 819,400 | 894,600 | |||||||||||||||
City Living | 64 | 112 | 102.7 | 159.0 | 1,604,700 | 1,419,600 | |||||||||||||||
Total consolidated | 3,803 | 4,488 | $ | 3,166.6 | $ | 4,073.6 | $ | 832,700 | $ | 907,700 |
Units | $ (Millions) | Average Price Per Unit $ | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Three months ended April 30, | |||||||||||||||||||||
Revenues | 55 | 26 | $ | 94.6 | $ | 35.4 | $ | 1,719,200 | $ | 1,360,000 | |||||||||||
Contracts | 13 | 44 | $ | 44.1 | $ | 69.6 | $ | 3,391,300 | $ | 1,583,000 | |||||||||||
Six months ended April 30, | |||||||||||||||||||||
Revenues | 72 | 54 | $ | 121.8 | $ | 67.9 | $ | 1,692,100 | $ | 1,257,700 | |||||||||||
Contracts | 16 | 118 | $ | 56.1 | $ | 191.8 | $ | 3,509,100 | $ | 1,625,100 | |||||||||||
Backlog at April 30, | 116 | 180 | $ | 255.6 | $ | 291.3 | $ | 2,203,700 | $ | 1,618,300 |
Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenues - homes sales | $ | 1,712,057 | $ | 1,599,199 | $ | 3,031,365 | $ | 2,774,667 | ||||||||
Cost of revenues - home sales | 1,374,347 | 1,298,157 | 2,416,592 | 2,232,637 | ||||||||||||
Home sales gross margin | 337,710 | 301,042 | 614,773 | 542,030 | ||||||||||||
Add: | Interest recognized in cost of revenues - home sales | 44,786 | 45,027 | 79,227 | 78,912 | |||||||||||
Inventory write-downs | 19,394 | 13,832 | 26,956 | 17,685 | ||||||||||||
Adjusted homes sales gross margin | $ | 401,890 | $ | 359,901 | $ | 720,956 | $ | 638,627 | ||||||||
Homes sales gross margin as a percentage of home sale revenues | 19.7 | % | 18.8 | % | 20.3 | % | 19.5 | % | ||||||||
Adjusted Home Sales Gross Margin as a percentage of home sale revenues | 23.5 | % | 22.5 | % | 23.8 | % | 23.0 | % | ||||||||
April 30, 2019 | April 30, 2018 | January 31, 2019 | ||||||||||
Loans payable | $ | 1,027,408 | $ | 649,299 | $ | 1,000,467 | ||||||
Senior notes | 2,512,404 | 2,860,290 | 2,511,932 | |||||||||
Mortgage company loan facility | 110,012 | 103,550 | 74,135 | |||||||||
Total debt | 3,649,824 | 3,613,139 | 3,586,534 | |||||||||
Total stockholders' equity | 4,941,154 | 4,480,703 | 4,819,562 | |||||||||
Total capital | $ | 8,590,978 | $ | 8,093,842 | $ | 8,406,096 | ||||||
Ratio of debt-to-capital | 42.5 | % | 44.6 | % | 42.7 | % | ||||||
Total debt | $ | 3,649,824 | $ | 3,613,139 | $ | 3,586,534 | ||||||
Less: | Mortgage company loan facility | (110,012 | ) | (103,550 | ) | (74,135 | ) | |||||
Cash and cash equivalents | (924,448 | ) | (475,113 | ) | (801,734 | ) | ||||||
Total net debt | 2,615,364 | 3,034,476 | 2,710,665 | |||||||||
Total stockholders' equity | 4,941,154 | 4,480,703 | 4,819,562 | |||||||||
Total net capital | $ | 7,556,518 | $ | 7,515,179 | $ | 7,530,227 | ||||||
Net debt-to-capital ratio | 34.6 | % | 40.4 | % | 36.0 | % |