Toll Brothers, Inc. F3Q09 (Qtr End 07/31/2009) Earnings Call Transcript

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2009-08-27 19:37:15.0

Tags: Goldman Sachs Group Inc., Call Transcript, Quarter, Earnings, Toll Brothers Inc., Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question is from the line of David Goldberg from UBS.

Unidentified Analyst

Good afternoon, it's actually Susan for David. Wondering if you could give us some sense of what percent of deliveries you had this quarter were of home that had been canceled maybe in previous quarters and were then sold over the last few weeks or so?

Joel Rassman

About 35%, 35 of our deliveries were from quick delivery homes.

Unidentified Analyst

Can you give us some sense of how that compares to the last few quarters or how we should be thinking about it for the next several quarters too?

Joel Rassman

I can't answer the question for the next several quarters, but that is higher than it has been for a while. I think the last quarter we were 29%. In the first quarter we were 23%. In the fourth quarter we were 23%. Then in the third quarter of 2008 we were 31%.

Operator

Our next question comes from the line of Joshua Pollard from Goldman Sachs.

Joshua Pollard - Goldman Sachs

Just wanted to ask, you talked about your rates being up 26% and that's on your deposit. Can you give some sense of what that was in July or what it was for the second quarter just to get a sense of if things are getting incrementally better into August versus where they were earlier in the summer.

Robert Toll

Anybody here have that?

Unidentified Company Representative

We may. Since the four week is better than the eight week.

Robert Toll

Yes, my feeling is that it is getting better, but I'd like to be able to give stats.

Joel Rassman

Actually, as of the last call, two weeks later into the period we were 19% ahead at the first call and now we are 26% ahead.

Unidentified Company Representative

19% for the four weeks?

Joel Rassman

For the four weeks.

Robert Toll

Right.

Joshua Pollard - Goldman Sachs

19% for the four weeks previous at your call two weeks ago and now it's 26 for the -- ?

Robert Toll

Right. So things are getting stronger.

Joshua Pollard - Goldman Sachs

The other question was on the land side of things. We continue to hear that there's a lot of competition for finished lots, especially in areas where there hasn't been a ton of development, but can you talk about whether or not you're seeing more competition for raw or partially finished land?

 

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