1. Huntingdon Valley, PA 19006-4298
A Letter to our Shareholders:
E N D E D JA N U A R Y 31 , 20 01
FOR THE THREE MONTHS
FIRST QUARTER REPORT
The Montilla at The Vistas At Cimarron Ridge, Scottsdale, AZ
1st Quarter Report
3103 Philmont Avenue
We are pleased to once again report record results In light of the steady flow of negative economic
across the board. Our record first quarter earnings news, we are quite pleased with our level of buyer
rose 78% compared to first quarter 2000 and our interest. We believe demand is being fueled, in part,
record revenues increased 38%. Most significantly in by the strong demographics supporting the luxury
these times of sobering economic news and market. There are now over 12.8 million affluent
forecasts, we produced our fortieth consecutive households, the fastest growing income group among
quarterly year-over-year record for contracts signed, all U.S. households, as well as waves of maturing baby
up 14%, and a record first quarter backlog, up 27%, boomers entering their move-up and empty-nester
compared to one year ago. years. Our active-adult communities are also
prospering, thanks to the special brand we have
These results and our track record of over 20%
created in the luxury market.
compound average annual growth in earnings and
revenues during the past decade reflect the The combination of lot supply shortages and healthy
success of our strategy of focusing on the luxury demographics-driven demand is putting upward
market as we've built our brand name reputation pressure on home prices. This is greatly benefiting
to become the nation’s leading builder of luxury Toll Brothers’ business as reflected in our increasing
homes. With our excellent management team, we profit margins and average selling prices.
have pursued a program of geographic expansion
In the past two months, we have opened a number
and product diversification within the luxury
of new communities that had been delayed due to
market that has increased our growth and earnings
slow-growth politics. The strong reception they
potential dramatically.
received suggests that there remains significant pent-
Record first quarter 2001 net income was $39.9 up demand for luxury homes.
million ($1.01 per share diluted). Record first
At Dominion Valley Country Club, our new 2,800-
quarter revenues were $475.3 million and the
home Arnold Palmer Golf Course community in
average price of homes delivered rose 13% to
Prince William County, Virginia, potential buyers
$472,000. Record first quarter signed contracts
camped out for two days to reserve one of the 52
totaled $448.0 million as the average home price of
homes available in our first section. Within eight
contracts signed rose 12% to $507,000. The
hours of opening the community, all 52 were taken.
Company’s record backlog at first quarter-end rose
At Regency at Monroe, our new 850-home active-
to $1.42 billion with the average price of homes in
adult community in Central New Jersey, we had a
backlog increasing 15% to $531,000.
similar experience, taking 50 deposits on the day we
Our record first quarter results presage strong opened. In both communities buyers were
earnings growth and another record year in 2001. undeterred even as we continued to raise prices
During 2001 we plan to increase the number of our throughout the day.
selling communities to approximately 160 compared
As we enter the spring selling season with cautious
to 146 at fiscal year end 2000. We believe this
optimism, we are inspired by the diligence and
expansion, coupled with continued buyer interest,
determination of our Toll Brothers’ associates. We
year-over-year backlog growth and increased
thank them, our shareholders and our home owners
production from our highly amenitized master
for their continued support and confidence.
planned golf course and lake side communities,
should make 2002 a record year as well.
Slow growth politics is limiting the supply of
building lots in affluent markets as securing land
Robert I. Toll Bruce E. Toll
approvals becomes more and more difficult. This
Chairman of the Board Vice Chairman
increase in regulatory oversight is negatively
and Chief Executive Officer of the Board
impacting those builders without the capital and
capabilities to persevere through long and complex
First-Class Mail
approval requirements. With our financial strength,
PAID
U.S. Postage
land approval and development expertise and
CMSS
Zvi Barzilay
roughly 36,000 home sites under control, we
President and Chief Operating Officer
expect to continue to prosper in this growth-
February 27, 2001
restricted environment.

2. Corporate Profile Consolidated Condensed Statements of Income Consolidated Condensed Balance Sheets
(Amounts in thousands, except per share data) (Amounts in thousands)
Toll Brothers, Inc. is the nation’s leading builder and sales, security, landscape, cable T.V. and
(Unaudited)
of luxury homes. With fiscal 2000’s record broadband Internet delivery service. The
Jan. 31, 2001 Oct. 31, 2000
earnings of $146 million on record revenues of Company also operates its own lumber Three Months
(Unaudited)
$1.81 billion, the Company completed its eighth distribution, and house component assembly Ended January 31 ASSETS
consecutive year of record earnings, its ninth and manufacturing operations. The Company 2001 2000 Cash and cash equivalents $ 229,451 $ 161,860
Revenues:
consecutive year of record revenues and year- acquires and develops commercial properties Residential inventories 1,846,120 1,712,383
Housing sales $ 458,369 $ 334,220
end backlog, and its tenth consecutive year of through its affiliate,Toll Brothers Realty Trust. Property, construction and office equipment 26,150 24,075
Land sales 10,907 9,025
record signed contracts. Toll Brothers currently operates over 145 Receivables, prepaid expenses and other assets 122,811 113,025
Equity earnings in unconsolidated joint venture 2,386
Toll Brothers began business in 1967 and is selling communities in 20 states: Arizona, Investments in unconsolidated entities 17,403 18,911
Interest and other 3,599 1,306
listed on the New York Stock Exchange and the California, Connecticut, Delaware, Florida, $2,241,935 $2, 030,254
475,261 344,551
Pacific Exchange under the symbol “TOL”. The Illinois, Massachusetts, Maryland, Michigan, New Costs and expenses:
Company builds customized single-family and Hampshire, New Jersey, Nevada, New York, Housing sales 344,813 257,794 LIABILITIES AND STOCKHOLDERS’ EQUITY
attached homes, principally on land it develops North Carolina, Ohio, Pennsylvania, Rhode Land sales 8,540 7,039 Liabilities:
and improves, for move-up and empty-nester Island,Tennessee,Texas, and Virginia. Selling, general and administrative 46,949 35,457 Loans payable $ 327,389 $ 326,537
buyers in six regions of the country. The Interest 11,764 8,933
Toll Brothers is the only public home builder to Subordinated notes 669,520 469,499
Company is developing country club, golf course have won all three of the industry’s highest 412,066 309,223 Customer deposits on sales contracts 105,527 104,924
communities in seven states and has active- honors: America’s Best Builder from the Accounts payable 85,324 110,927
adult, age-qualified communities in Michigan, National Association of Home Builders, the Income before income taxes 63,195 35,328 Accrued expenses 183,051 185,141
New Jersey, Connecticut, and Virginia. The National Housing Quality Award and Income taxes payable 69,290 88,081
Income taxes 23,270 12,935
Company operates its own architectural, Builder of the Year. For more information visit Total liabilities 1,440,101 1,285,109
Net Income $ 39,925 $ 22,393
engineering, mortgage, title, land development www.tollbrothers.com.
Earnings per share Stockholders’ equity:
$1.01 $475.3
Basic $ 1.10 $ .61 Common stock 365 359
Income Per Total Revenues
Diluted $ 1.01 $ .61 Additional paid-in capital 108,786 105,454
(in millions)
Share (Diluted)
Retained earnings 708,533 668,608
Weighted average number of shares
$344.6 Treasury stock (15,850) (29,276)
Basic 36,163 36,471
Total stockholders’ equity 801,834 745,145
Diluted 39,415 36,909
$.61
$272.9
$2,241,935 $2,030,254
$244.7
$.46
$.44 $202.5
$.39
Housing Data Toll Brothers, Inc. Investor Relations
2001 2000
(Three months ended January 31) Corporate Office Frederick N. Cooper – 215-938-8312
3103 Philmont Avenue Vice President - Finance
Number of homes closed 971 799
Huntingdon Valley, PA 19006 fcooper@tollbrothersinc.com
Sales value of homes closed (in 000’s) $ 458,369 $ 334,220
215-938-8000
Number of homes contracted* 883 864 Joseph R. Sicree – 215-938-8045
www.tollbrothers.com
1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Vice President - Chief Accounting Officer
Sales value of homes contracted* (in 000’s) $ 447,998 $ 391,578 NYSE – “TOL”
Three Months Ended January 31 Three Months Ended January 31
jsicree@tollbrothersinc.com
Before Extraordinary Item Number of homes in backlog* 2,678 2,431
Sales value of homes in backlog* (in 000’s) $1,420,932 $ 1,121,599
$448 $1,421
Contracts Backlog
(in millions) (in millions)
$392
*Contract totals for the three month period ended January 31, 2001 and 2000 include $4,333,000 (15 homes) and
$1,122
$4,759,000 (18 homes), respectively, from an unconsolidated 50% owned joint venture. Backlog as of January 31, 2001
$309 and 2000 includes $10,116,000 (35 homes) and $15,067,000 (57 homes), respectively, from this joint venture.
Statement on Forward-looking Information
$270 $853
Certain information included herein and in other Company reports, SEC filings, statements and presentations is forward-
looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements
$665
concerning the Company’s anticipated operating results, financial resources, increases in revenues, increased profitability,
$174
interest expense, growth and expansion, ability to acquire land, ability to sell homes and properties, ability to deliver homes
$498
from backlog, ability to secure materials and subcontractors and stock market valuations. Such forward-looking informa-
tion involves important risks and uncertainties that could significantly affect actual results and cause them to differ mate-
rially from expectations expressed herein and in other Company reports, SEC filings, statements and presentations. These
risks and uncertainties include local, regional and national economic conditions, the effect of governmental regulation, the
competitive environment in which the Company operates, fluctuations in interest rates, changes in home prices, the avail-
ability and cost of land for future growth, the availability of capital, fluctuations in the capital and securities markets, the
1997 1998 1999 2000 2001 1997 1998 1999 2000 2001
availability and cost of labor and materials, and weather conditions.
Three Months Ended January 31 At January 31