Toll Brothers Inc (NYSE: TOL) stock rose 3.7% on March 26th, 2021 (as of 11:13:33 UTC-4 · USD; Source: Google finance) and continued its bullish momentum, after the company posted better than expected results for the second quarter of FY 21.
The company has ended the second quarter of FY 21 with approximately $715 million in cash and cash equivalents, compared to $1.37 billion at FYE 2020 and $950 million at FY 2021’s first quarter end. At FY 2021 second quarter end, the Company also had $1.790 billion available under its $1.905 billion bank revolving credit facility, in which most of which is scheduled to mature in November 2025. FY 2021’s second quarter end book value per share has slightly increased to $39.82 per share, compared to $38.53 at FYE 2020. The Company has ended FY 2021’s second quarter with a net debt-to-capital ratio of 35.6%, compared to 35.8% at FY 2021’s first quarter end, and 33.3% at FYE 2020. In March 2021, the company had redeemed all $250 million of its outstanding 5.625% senior notes due 2024.
Moreover, in the second quarter of FY 2021, the Company had spent about $205.8 million on land to purchase approximately 2,053 lots. The Company has ended the second quarter with 320 selling communities, compared to 309 at FY 2021’s first quarter end and 326 at FY 2020’s second quarter end.
TOL in the second quarter of FY 21 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 80 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.93 billion in the second quarter of FY 21, beating the analysts’ estimates for revenue of $1.77 billion. Home sales revenues were a second quarter were up 21% to $1.84 billion. The delivered homes were 2,271, up 18% in the quarter. Net signed contract value was $3.05 billion, up 97% compared to FY 2020’s second quarter. The contracted homes were 3,487, up 85%. Backlog value was $8.69 billion at second quarter end, up 58% compared to FY 2020’s second quarter. The homes in backlog were 10,104, up 57%.
The company expects continued improvement in margin through the second half of fiscal 2021 as well as in 2022, and the company anticipates to return on beginning equity in excess of 20% in fiscal 2022. The company anticipates community count growth to 340 communities at end of fiscal year, with an additional 10% growth in fiscal 2022.