Saturday, September 24, 2005
Toll Bros. Has Already Tapped Most Deposits
thehousingbubble2.blogspot.com
If housing news is slow, The homebuilders financials can always provide food for thought. Take the Toll Brothers August 25th, press release, which included the July 31, 2005 balance sheet. How big are the customer deposits stand behind the backlog? "Joel H. Rassman, chief financial officer, stated: 'Based on our record third quarter backlog of 9,490 homes, we now expect to deliver between 2,750 and 2,850 homes..in our fourth quarter 2005 at an average price of between $675,000 and $685,000."
That works out to around $6.4 billion. Further down in the financials under liabilities, we find 'Customer Deposits' of $438 million, or 6.8% of the backlogs gross value. But looking at assets, the line item 'Customer Deposits Held In Escrow' reveals only $86.7 million, or 1.35%.
It shouldn't be a surprise, as the public homebuilders are having cash flow problems. Toll for example had $672 million in cash and current receivables and $1.2 billion in current liabilities. |
