Page 1

FOR IMMEDIATE RELEASE May 25 , 2021 Toll Brothers AMERICA'S LUXURY HOME BUILDER CONTACT : Frederick N. Cooper ( 215 ) 938-8312 fcooper@tollbrothers.com Toll Brothers Reports FY 2021 2nd Quarter Results FORT WASHINGTON , PA , May 25 , 2021 Toll Brothers , Inc. ( NYSE : TOL ) ( TollBrothers.com ) , the nation's leading builder of luxury homes , today announced results for its second quarter ended April 30 , 2021 . FY 2021's Second Quarter Financial Highlights ( Compared to FY 2020's Second Quarter ) : • • • • • • Net income and earnings per share were $ 127.9 million and $ 1.01 per share diluted , compared to net income of $ 75.7 million and $ 0.59 per share diluted in FY 2020's second quarter . Pre - tax income was $ 169.8 million , compared to $ 102.1 million in FY 2020's second quarter . Pre - tax income in the second quarter of FY 2021 includes a charge of $ 34.2 million for the early retirement of debt . Home sales revenues were a second quarter record $ 1.84 billion , up 21 % compared to FY 2020's second quarter ; delivered homes were 2,271 , up 18 % . Net signed contract value was $ 3.05 billion , up 97 % compared to FY 2020's second quarter ; contracted homes were 3,487 , up 85 % . Net signed contracts , in both dollars and units were all - time records . Backlog value was $ 8.69 billion at second quarter end , up 58 % compared to FY 2020's second quarter ; homes in backlog were 10,104 , up 57 % . Quarter - end backlog , in both dollars and units , were all - time records . Home sales gross margin was 21.9 % , compared to FY 2020's second quarter home sales gross margin of 19.5 % . Adjusted home sales gross margin , which excludes interest and inventory write - downs , was 24.4 % , compared to FY 2020's second quarter adjusted home sales gross margin of 22.9 % . • • SG & A , as a percentage of home sales revenues , was 11.9 % , compared to 13.8 % in FY 2020's second quarter . Income from operations was $ 184.4 million . • • Other income , income from unconsolidated entities , and gross margin from land sales and other was $ 21.5 million . In March 2021 , the Company announced an increase of its quarterly cash dividend to $ 0.17 per share , or a rate of $ 0.68 per share on an annualized basis , representing a 54.5 % increase from the prior quarterly cash dividend of $ 0.11 per share . Douglas C. Yearley , Jr. , chairman and chief executive officer , stated : “ Our business continues to operate at a very high level . With strong demand and constrained industry - wide supply , we have continued to raise prices in excess of cost increases while setting all - time records for contracts and backlog in both units and dollars , and exceeding our guidance on nearly every metric . " These exceptional results reflect the strategic expansion of our product lines and geographies , as well as structural changes we have made in how we operate to focus on driving sustainable increases in profit margins and return on equity . Based on the land we currently control , we are projecting community count growth to 340 communities at fiscal year end , with an additional 10 % growth in fiscal 2022 . " We are encouraged by the continued strength of the housing market , which is supported by a long - term supply - demand imbalance , favorable demographics , especially the drive to home ownership among millennials , low mortgage rates , and the greater overall appreciation for one's home that has emerged out of the pandemic . These market conditions , which we expect to continue into the foreseeable future , play to our strengths of creating luxury communities in desirable locations , offering a broad range of price points , and providing our home buyers the ability to personalize their homes . " Based on the strength of our outlook for the remainder of this year and beyond , we are raising our fiscal year 2021 guidance on nearly all key metrics . We expect continued margin improvement through the second half of fiscal 2021 as well as in 2022 , and we project return on beginning equity in excess of 20 % in fiscal 2022. "