Toll Brothers(TOL) - 2024 Q4 - Annual Report

Financial Performance - In fiscal year 2024, the company signed net contracts worth $10.07 billion for 10,231 homes, compared to$7.91 billion for 8,077 homes in fiscal year 2023, and $9.07 billion for 8,255 homes in fiscal year 2022[50]. - The backlog at October 31, 2024, was$6.47 billion, representing 5,996 homes, with approximately 97% expected to be delivered by October 31, 2025[81]. - The company experienced a loss before income taxes of $204.6 million in fiscal 2024, compared to a loss of$142.4 million in fiscal 2023[101]. Land and Home Sites - As of October 31, 2024, the company owned 11,268 home sites and controlled an additional 31,863 through options and purchase agreements, totaling 43,131 planned home sites[42]. - The company acquired control of approximately 14,900 home sites in fiscal 2024, compared to 4,200 in fiscal 2023, with a total of approximately 74,700 home sites controlled as of October 31, 2024[68]. - The aggregate purchase price of land parcels under option and purchase agreements was approximately $6.10 billion as of October 31, 2024, with$549.2 million paid or deposited[70]. Construction and Development - The company has 3,526 spec homes in its communities, with 2,664 under construction and 862 completed as of October 31, 2024[62]. - The company expects to pay an additional $5.55 billion for land parcels over the next several years, with some option contracts written off or written down[44]. - The company controlled 67 land parcels for rental projects, containing approximately 21,300 units, with investments totaling$549.2 million in 40 Rental Property Joint Ventures[99]. Financing and Mortgage - The average cash down payment from home buyers in fiscal year 2024 was approximately 8% of the total purchase price of a home[50]. - The company had commitments to fund $1.84 billion of mortgage loans as of October 31, 2024, with$168.8 million of these loans having locked-in interest rates[53]. - The gross capture rate for mortgage financing increased to 38.0% in fiscal 2024 from 32.5% in fiscal 2023[90]. - A 1% increase in interest rates would increase the interest incurred by approximately $9.1 million per year based on the variable-rate debt outstanding as of October 31, 2024[695]. Market Position and Strategy - The company believes that the demographics supporting the luxury and affordable luxury markets will provide growth opportunities in the future[59]. - The company competes primarily on price, location, design, quality, service, and reputation in a highly competitive home building market[54]. - The company has not made any acquisitions in fiscal years 2024 and 2023, focusing instead on expanding its footprint through existing operations[37]. Investments and Commitments - The company had investments of$1.01 billion in unconsolidated entities as of October 31, 2024, with additional funding commitments of up to $312.8 million[94]. - The company had$388.6 million invested in Land Development Joint Ventures, with funding commitments of $243.0 million to six of these ventures[83]. Leadership and Governance - Douglas C. Yearley, Jr. has been with the company since 1990 and became CEO in June 2010, later appointed Chairman of the Board in November 2018[700]. - The company has an insider trading policy that applies to all personnel and is designed to comply with applicable laws and regulations[702]. - The information regarding executive compensation will be included in the 2025 Proxy Statement[704].