-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FSr2sz2DIFX+Kha7QglLGrU/43WasW9lyAvcfrLPe8W3MXRwwIbiMk9/RZnkWPFe pjaUdJRLpEx7aBbFinkukA== 0000794170-97-000014.txt : 19970912 0000794170-97-000014.hdr.sgml : 19970912 ACCESSION NUMBER: 0000794170-97-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970731 FILED AS OF DATE: 19970910 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TOLL BROTHERS INC CENTRAL INDEX KEY: 0000794170 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 232416878 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09186 FILM NUMBER: 97678112 BUSINESS ADDRESS: STREET 1: 3103 PHILMONT AVE CITY: HUNTINGDON VALLEY STATE: PA ZIP: 19006 BUSINESS PHONE: 2159388000 MAIL ADDRESS: STREET 1: 3103 PHILMONT AVENUE CITY: HUNTINGDON VALLEY STATE: PA ZIP: 19006 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 31, 1997 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 1-9186 TOLL BROTHERS, INC. (Exact name of registrant as specified in its charter) Delaware 23-2416878 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3103 Philmont Avenue, Huntingdon Valley, Pennsylvania 19006 (Address of principal executive offices) (Zip Code) (215) 938-8000 (Registrant's telephone number, including area code) Not applicable (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Common Stock, $.01 par value: 34,214,335 shares as of September 1, 1997 TOLL BROTHERS, INC. AND SUBSIDIARIES INDEX Page No. PART I. Financial Information ITEM 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) 1 as of July 31,1997 and October 31,1996 Condensed Consolidated Statements of Income (Unaudited) 2 For the Nine Months and Three Months Ended July 31, 1997 and 1996 Condensed Consolidated Statements of Cash Flows 3 (Unaudited)For the Nine Months Ended July 31, 1997 and 1996 Notes to Condensed Consolidated Financial Statements 4 (Unaudited) ITEM 2.Management's Discussion and Analysis of 6 Financial Condition and Results of Operations PART II. Other Information 8 SIGNATURES 10 STATEMENT ON FORWARD-LOOKING INFORMATION Certain information included herein and in other company statements, reports and S.E.C. filings is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 including but not limited to statements concerning the number of selling communities, anticipated operating results, financial resources, growth and expansion. Such forward looking information involves important risks and uncertainties that could significantly affect actual results and cause them to differ materially from expectations expressed therein. These risks and uncertainties include local, regional and national economic conditions,the effect of governmental regulation on the Company, the competitive environment in which the Company operates, changes in interest rates, home prices, availability and cost of land for future growth, availability of working capital, the availability and cost of labor and materials and the levels of spending for selling, general and administrative costs. TOLL BROTHERS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Amounts in thousands) (Unaudited)
July 31, October 31, 1997 1996 ASSETS Cash and cash equivalents $ 27,041 $ 22,891 Residential inventories 894,244 772,471 Property, construction and office equipment, net 14,998 12,948 Receivables, prepaid expenses and other assets 29,282 26,783 Mortgage notes receivable 2,620 2,833 $ 968,185 $837,926 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Loans payable $ 185,000 $132,109 Subordinated notes 219,956 208,415 Customer deposits on sales contracts 53,372 43,387 Accounts payable 41,735 42,423 Accrued expenses 67,135 58,211 Collateralized mortgage obligations payable 2,611 2,816 Income taxes payable 38,813 35,888 Total liabilities 608,622 523,249 Shareholders' equity: Preferred stock Common stock 342 339 Additional paid-in capital 47,423 43,018 Retained earnings 311,798 271,320 Total shareholders' equity 359,563 314,677 $ 968,185 $837,926
See accompanying notes TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands except per share data) (Unaudited) Nine months Three months ended July 31 ended July 31 1997 1996 1997 1996 Revenues: [S] [C] [C] [C] [C] Housing sales $651,142 $499,219 $241,192 $212,597 Interest and other 2,410 1,137 634 181 653,552 500,356 241,826 212,778 Costs and expenses: Land and housing construction 504,235 383,325 186,255 163,430 Selling, general & 60,807 50,260 21,914 17,787 administrative Interest 19,975 16,194 7,233 6,952 585,017 449,779 215,402 188,169 Income before income taxes and extraordinary loss 68,535 50,577 26,424 24,609 Income taxes 25,285 18,918 9,874 9,196 Income before extraordinary loss 43,250 31,659 16,550 15,413 Extraordinary loss from extinguishment of debt, net of income taxes of $1,659 2,772 Net income $ 40,478 $ 31,659 $ 16,550 $15,413 Earnings per share: Primary Income before extraordinary $ 1.24 $ .92 $ .47 $ .45 loss Extraordinary loss from extinguishment of debt .08 Net Income $ 1.16 $ .92 $ .47 $ .45 Fully-diluted Income before extraordinary $ 1.19 $ .89 $ .45 $ .43 loss Extraordinary loss from extinguishment of debt .07 Net Income $ 1.12 $ .89 $ .45 $ .43 Weighted average number of shares Primary 34,777 34,496 34,856 34,435 Fully-diluted 37,319 36,910 37,422 36,780 [/TABLE] See accompanying notes
TOLL BROTHERS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Nine months ended July 31 1997 1996 Cash flows from operating activities: Net income $40,478 $31,659 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 2,952 2,399 Loss from repurchase of subordinated notes 540 Extraordinary loss from extinguishment of debt 4,431 Deferred taxes 2,803 1,306 Net realizable provisions 1,000 Changes in operating assets and liabilities: Increase in residential inventories (110,629) (113,366) Increase in receivables, prepaid expenses and other assets (3,059) (2,185) Increase in customer deposits on sales 9,985 12,998 contracts Increase in accounts payable, accrued expenses and other liabilities 8,236 14,880 Increase in current income taxes payable 259 686 Net cash used in operating activities (44,544) (50,083) Cash flows from investing activities: Purchase of property, construction and office equipment, net (4,341) (2,214) Principal repayments of mortgage notes receivable 213 972 Net cash used in investing activities (4,128) (1,242) Cash flows from financing activities: Proceeds from loans payable 125,000 160,000 Principal payments of loans payable (83,447) (71,186) Proceeds from the issuance of senior subordinated 97,500 notes Repurchase of subordinated notes (90,434) (13,096) Principal payments of collateralized mortgage obligations (205) (928) Proceeds from stock options exercised and employee stock plan purchases 4,408 4,227 Net cash provided by financing activities 52,822 79,017 Net increase in cash and cash equivalents 4,150 27,692 Cash and cash equivalents, beginning of period 22,891 27,772 Cash and cash equivalents, end of period $27,041 $55,464 Supplemental disclosures of cash flow information Interest paid, net of capitalized amount $ 6,089 $ 4,104 Income taxes paid $20,156 $16,175 Supplemental disclosures of non-cash financing activities: Cost of residential inventories acquired through seller financing $11,144 $ 2,791 Income tax benefit relating to exercise of employee stock options $ 409 $ 888
See accompanying notes TOLL BROTHERS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts in thousands) (Unaudited) 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. The October 31, 1996 balance sheet amounts and disclosures included herein have been derived from the October 31, 1996 audited financial statements of the Registrant. Since the accompanying condensed consolidated financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements, it is suggested that they be read in conjunction with the financial statements and notes thereto included in the Registrant's October 31, 1996 Annual Report on Form 10-K. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, which are of a normal recurring nature, necessary to present fairly the Company's financial position as of July 31, 1997 and 1996, the results of its operations for the nine months and three months then ended and its cash flows for the nine months then ended. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long Lived Assets and for Long-Lived Assets to Be Disposed Of" ("FASB 121") established standards for the recognition and measurement of impairment losses on long-lived assets. The Company adopted FASB 121 as of November 1, 1996. The adoption did not result in the recognition of an impairment loss. Statement of Financial Accounting Standards No. 123 "Accounting for Stock-Based Compensation" ("FASB 123") establishes a fair value based method of accounting for stock-based compensation plans, including stock options. FASB 123 allows the Company to continue accounting for stock option plans under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB 25"), but requires it to provide proforma net income and earnings per share information "as if" the new fair value approach had been adopted. These proforma disclosures will be presented in the Registrant's financial statements to be contained in the 1997 Annual Report to Shareholders. Because the Company intends to continue accounting for its stock option plans under APB 25, there is no impact on the Company's consolidated financial statements resulting from implementation of FASB 123. Statement of Financial Accounting Standards No. 128, "Earnings per Share" ("FASB 128") requires the calculation and dual presentation of Basic and Diluted earnings per share ("EPS") and is effective for financial statements issued for periods ending after December 15, 1997; earlier application of FASB 128 is not permitted. Had FASB 128 been adopted, Basic EPS before extraordinary loss would have been $1.26 and $.94 for the nine months ended July 31, 1997 and 1996, respectively and $.48 and $.45 for the three months ended July 31, 1997 and 1996, respectively. Diluted EPS before extraordinary loss would have been $1.19 and $.89 for the nine months ended July 31, 1997 and 1996, respectively and $.45 and $.43 for the three months ended July 31, 1997 and 1996, respectively. 2. Residential Inventories Residential inventories consisted of the following:
July 31, October 31, 1997 1996 Land and land development costs $206,507 $204,527 Construction in progress 595,897 491,552 Sample homes 44,059 40,017 Land deposits and costs of future development 24,700 16,243 Loan assets acquired for future development 3,385 4,106 Deferred marketing and financing costs 19,696 16,026 $894,244 $772,471
Construction in progress includes the cost of homes under construction, land and land development and carrying costs of lots that have been substantially improved. The Company capitalizes certain interest costs to inventories during the development and construction period. Capitalized interest is charged to interest expense when the related inventories are closed. Interest incurred, capitalized and expensed is summarized as follows:
Nine months Three months ended July 31 ended July 31 1997 1996 1997 1996 Interest capitalized, beginning of period $46,191 $43,142 $51,359 $46,636 Interest incurred 26,250 19,950 8,257 6,983 Interest expensed (19,975) (16,194) (7,233) (6,952) Write off to cost of sales (108) (417) (25) (186) Interest capitalized, end of period $52,358 $46,481 $52,358 $46,481
3. Loans Payable and Subordinated Debt In November 1996, the Company issued $100 million of 8 3/4% Senior Subordinated Notes due 2006. In March 1997, the Company borrowed $50,000,000 from two banks for a period of five years at a 7.72% fixed rate of interest. In March 1997, the Company redeemed all of its 10 1/2% Senior Subordinated Notes due 2002 ($87,800,000 principal amount) at 103%. See Note 4 - Extraordinary Loss From Extinguishment of Debt. 4. Extraordinary Loss From Extinguishment of Debt In January 1997, the Company called for redemption on March 15, 1997 all of its outstanding 10 1/2% Senior Subordinated Notes due 2002 at 103% of principal amount plus accrued interest. The redemption resulted in an extraordinary loss in the first quarter of fiscal 1997 of $2,772,000, net of $1,659,000 of income taxes. The loss represents the redemption premium and the write-off of unamortized deferred issuance costs. The redemption and related financing referred to in Note 3 will result in the reduction of the Company's interest incurred of approximately $2 million annually. 5. Stock Repurchase Program In April 1997, the Company announced that its Board of Directors authorized the repurchase of up to 3,000,000 shares of its Common Stock, par value $.01, from time to time, in open market transactions or otherwise, for the purpose of providing shares for its various employee benefit plans. As of July 31, 1997, the Company had not repurchased any shares. PART I. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The following table sets forth, for the periods indicated, certain income statement items related to the Company's operations as percentages of total revenues and certain other data: Nine months Three months ended July 31 ended July 31 1997 1996 1997 1996 Revenues 100.0% 100.0% 100.0% 100.0% Costs and expenses: Land and housing construction77.2 76.6 77.0 76.8 Selling, general and administrative 9.3 10.1 9.1 8.3 Interest 3.0 3.2 3.0 3.3 Total costs and expenses 89.5 89.9 89.1 88.4 Income before taxes 10.5 % 10.1% 10.9% 11.6%
Revenues for the nine month and three month periods ended July 31, 1997 were higher than those of the comparable periods of 1996 by approximately $153 million, or 31%, and $29 million, or 14%, respectively. The increased revenues for the 1997 periods were primarily attributable to the increase in the number and higher average price of the homes delivered during the periods. The increased number of homes delivered was due to the greater number of communities from which the Company was delivering homes, the larger backlog of homes at the beginning of fiscal 1997 as compared to the beginning of fiscal 1996 and the delays in the 1996 periods caused by the severe winter weather conditions the Company encountered in many of its markets. The increase in the average selling price per home delivered in fiscal 1997 was due to a shift of the location of the homes to more expensive areas, a change in product mix to larger homes and increases in selling prices. The value of new sales contracts signed amounted to $779 million (1,952 homes) and $251 million (638 homes) for the nine month and three month periods ended July 31, 1997, respectively. The value of new contracts signed for the comparable periods of fiscal 1996 were $653 million (1,795 homes) and $206 million (558 homes), respectively. The increase in new contracts signed in both periods of 1997 was primarily attributable to an increase in the average selling price of the houses (due primarily to the location, size and increases in selling prices), and an increase both in the number of communities in which the Company was offering homes for sale and in the number of contracts signed per community. As of July 31, 1997, the backlog of homes under contract amounted to $654 million (1,609 homes), approximately 18% higher than the $555 million (1,482 homes) backlog as of July 31, 1996 and approximately 24% higher than the $526 million (1,367 homes) backlog as of October 31, 1996. Land and construction costs as a percentage of revenues increased in the nine month and three month periods ended July 31, 1997 as compared to the same periods of 1996. The increases were due principally to increased material and overhead costs and the increased costs in the Company's newer markets resulting from the relatively less efficient construction in those markets. The cost increases were partially offset by the lower amount of inventory writedowns recognized in 1997($1.3 million for the nine month period and $.1 million in the three month period) as compared to 1996 ($2.6 million in the nine month period and $1.1 million in the three month period). Selling, general and administrative expenses ("SG&A") in the nine month and three month periods ended July 31, 1997 increased over the comparable periods of 1996 by $10.6 million or 21% and $4.1 million or 23%, respectively. These increases were primarily attributable to the higher level of spending due to the increased number of communities which the Company was operating during the 1997 periods as compared to the same periods of 1996 and the Company's geographic expansion. The Company believes that SG&A, as a percentage of revenues, will decrease for the full 1997 fiscal year as compared to the nine months ended July 31, 1997 due to revenues increasing at a faster pace than SG&A expenses. Interest expense is determined on a specific home-by-home basis and will vary depending on many factors including the period of time that the land under the home was owned, the length of time that the home was under construction, and the interest rates and the amount of debt carried by the Company in proportion to the amount of its inventory during those periods. As a percentage of revenues, interest expense was lower in the nine month and three month periods of 1997 as compared to 1996. Income taxes for the nine month periods ended July 31, 1997 and 1996 were provided at effective rates of 36.9% and 37.4%, respectively. For the three month periods ended July 31, 1997 and 1996, income taxes were provided at an effective rate of 37.4% in each period. The lower effective tax rate in the nine month period of 1997 was due principally to non-taxable investment income the Company earned in the first six months of fiscal 1997. The Company does not expect to have this income in the fourth quarter of 1997 due to the Company's use of its available funds to redeem its 10 1/2% Senior Subordinated Notes in March 1997 and its acquisition of inventory. EXTRAORDINARY LOSS FROM EXTINGUISHMENT OF DEBT In January 1997, the Company called for redemption on March 15, 1997 of all of its outstanding 10 1/2% Senior Subordinated Notes due 2002 at 103% of principal amount plus accrued interest. The redemption resulted in an extraordinary loss in the first quarter of fiscal 1997 of $2,772,000, net of $1,659,000 of income taxes. The loss represents the redemption premium and a write-off of unamortized deferred issuance costs. The redemption and related refinancing will result in the reduction of the Company's interest costs of approximately $2 million annually. (See - "Capital Resources and Liquidity" below). CAPITAL RESOURCES AND LIQUIDITY Funding for the Company's residential development activities has been provided by cash flows from operations, unsecured bank borrowings and the public debt and equity markets. The Company has a $250 million unsecured revolving credit facility with fifteen banks which extends through June 2002. The facility reduces by 50% in June 2000 unless extended as provided for in the agreement. As of July 31, 1997, the Company had $60 million of loans and approximately $28.8 million of letters of credit outstanding under the facility. In November 1996, the Company issued $100 million of 8 3/4% Senior Subordinated Notes due 2006. In addition, in March 1997, the Company borrowed $50 million from two banks for a five year period at 7.72%. The Company used a portion of the proceeds from these sources to redeem the $87.8 million principal amount of its 10 1/2% Senior Subordinated Notes due 2002 in March 1997. In April 1997, Standard & Poor's Rating Group upgraded the Company's Corporate Credit Rating to BBB- and the ratings on its approximately $220 million of senior subordinated notes to BB+. The Company believes that it will be able to continue to fund its activities through a combination of operating cash flow and existing sources of credit. HOUSING DATA
Nine Months Three Months Ended July 31 Ended July 31 1997 1996 1997 1996 Period ended July 31: # of homes closed 1,710 1,391 622 585 # of homes contracted 1,952 1,795 638 558 Sales value of homes contracted (in thous.) $778,761 $653,160 $250,636 $206,135 July 31, Oct.31 July 31, Oct. 31 1997 1996 1996 1995 # of homes in backlog 1,609 1,367 1,482 1,078 Sales value of homes in backlog (in thous.) $653,813 $526,194 $554,761 $400,820
PART II. Other Information ITEM 1. Legal Proceedings None. ITEM 2. Changes in Securities On June 12, 1997, the Board of Directors of the Company adopted a Stockholder Rights Plan providing that one right (a "Right") shall be attached to each share of the Company's common stock (the "Common Stock"). The description and terms of the Rights are set forth in the Rights Agreement (the "Rights Agreement"), dated as of June 12, 1997, between the Company and ChaseMellon Shareholder Services, L.L.C., as Rights Agent. Each Right entitles the registered holder to purchase from the Company a unit consisting of one one-thousandth of a share of Series A Junior Participating Preferred Stock of the Company at a purchase price of $100 per unit. Initially the Rights will be attached to all Common Stock certificates and no separate Rights certificates will be distributed. The Rights will separate from the Common Stock and a distribution date will occur upon the earlier of ten days(or such later date as the Board of Directors of the Company may determine) following a public announcement that a person or group of affiliated persons has acquired beneficial ownership of 15% or more of the outstanding shares of Common Stock or ten business days following the commencement of a tender offer that would result in a person or group benefically owning 15% or more of such outstanding shares of Common Stock. The Rights are not excisable until the distribution date and will expire at the close of the business on July 11, 2007. In the event any person or group (other than certain exempted persons acquires 15% or more of the then outstanding shares of Common Stock (unless such acquisition is made pursuant to a tender offer for all outstanding shares, at a price determined by a majority of the independent directors of the Company who are Continuing Directors (as defined in the Rights Agreement), each holder of a Right will thereafter have the right to receive, upon exercise, Common Stock having a value equal to two times the exercise price of the Right. At any time until ten days following such stock acquisition date, the Company may redeem the Rights at a price of $.001 per Right. ITEM 3. Defaults upon Senior Securities None. ITEM 4. Submission of Matters to a Vote of Security Holders None. ITEM 5. Other Information None. ITEM 6. Exhibits and Reports on Form 8-K (a) Exhibits Exhibit 4. Rights Agreement dated as of June 12, 1997, by and between the Company and ChaseMellon Shareholder Service, L.L.C. as Rights Agent (incorporated herein by reference to Exhibit 1 to the Company's Registration Statement on Form 8-A dated June 20,1997). Exhibit 11. Statement Regarding Computation of Per Share Earnings.* Exhibit 27. Financial Data Schedule.* *Filed electronically herewith. (b) Reports on Form 8-K Report on Form 8-K dated June 12, 1997 related to the Company's Board of Directors adoption of a Stockholder Rights Plan. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TOLL BROTHERS, INC. (Registrant) Date: September 8, 1997 By: /s/ Joel H. Rassman Joel H. Rassman Senior Vice President, Treasurer and Chief Financial Officer Date: September 8, 1997 By: /s/ Joseph R. Sicree Joseph R. Sicree Vice President - Chief Accounting Officer (Principal Accounting Officer) EX-11 2
TOLL BROTHERS, INC. & SUBSIDIARIES EXHIBIT 11 STATEMENT: COMPUTATION OF EARNINGS PER SHARE Nine Months Nine Months ended July 31 ended July 31 1997 1996 Income before extraordinary loss per income statement $43,250,000 $31,659,000 Addback: Interest on convertible debentures, net of income taxes 1,134,000 1,164,000 Income before extraordinary loss (Fully-diluted) $44,384,000 $32,823,000 Per share: Primary $ 1.24 $ .92 Fully-diluted $ 1.19 $ .89 PRIMARY SHARES: Weighted average shares outstanding 34,089,902 33,852,173 Common stock equivalents - stock options 686,922 644,004 TOTAL 34,776,824 34,496,177 FULLY-DILUTED SHARES: Weighted average shares outstanding 34,089,515 33,852,173 Common stock equivalents - stock options 884,992 653,898 Shares issuable on conversion of subordinated debentures 2,344,782 2,404,382 TOTAL 37,319,289 36,910,453 Three Months Three Months ended July 31 ended July 31 1997 1996 Income before extraordinary loss per income statement $16,550,000 $ 15,413,000 Addback: Interest on convertible debentures, net of income taxes 378,000 379,000 Income before extraordinary loss (Fully diluted) $16,928,000 $ 15,792,000 Earnings per share: Primary $ 0.47 $ 0.45 Fully Diluted $ 0.45 $ 0.43 PRIMARY SHARES: Weighted average shares outstanding 34,199,823 33,908,619 Common stock equivalents - stock options 655,716 526,355 TOTAL 34,855,539 34,434,974 FULLY-DILUTED SHARES: Weighted average shares outstanding 34,199,823 33,908,619 Common stock equivalents - stock options 877,288 526,290 Shares issuable on conversion of subordinated debentures 2,344,782 2,344,782 TOTAL 37,421,893 36,779,691
EX-27 3 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 0000794170 TOLL BROTHERS, INC. 9-MOS OCT-31-1997 JULY -31-1997 27,041 0 0 0 894,244 0 33,139 18,141 968,185 0 219,956 342 0 0 359,221 968,185 651,142 653,552 504,235 565,042 0 0 19,975 68,535 25,285 43,250 0 2,772 0 40,478 1.19 1.12
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