Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Shares of our common stock are listed on the New York Stock Exchange (“NYSE”) under the symbol “TOL”. At December 18, 2020, there were approximately 494 record holders of our common stock.
Issuer Purchases of Equity Securities
During the three months ended October 31, 2020, we repurchased the following shares of our common stock:
Period Total number
of shares
purchased (a) Average
price
paid per share Total number
of shares
purchased as
part of a
publicly
announced plan or program (b) Maximum
number
of shares that
may yet be
purchased
under the plan or program (b)
(in thousands) (in thousands) (in thousands)
August 1, 2020 to August 31, 2020 1 $ 41.55 1 19,987
September 1, 2020 to September 30, 2020 2 $ 44.39 2 19,985
October 1, 2020 to October 31, 2020 1 $ 47.47 1 19,984
Total 4 4
(a) Our stock incentive plans permit us to withhold from the total number of shares that otherwise would be issued to a performance based restricted stock unit recipient or a restricted stock unit recipient upon distribution that number of shares having a fair value at the time of distribution equal to the applicable income tax withholdings due and remit the remaining shares to the recipient. During the three months ended October 31, 2020, we withheld 6,608 of the shares subject to performance based restricted stock units and restricted stock units to cover approximately $313,200 of income tax withholdings and we issued the remaining 12,400 shares to the recipients. The shares withheld are not included in the total number of shares purchased in the table above.
Our stock incentive plans also permit participants to exercise non-qualified stock options using a “net exercise” method. In a net exercise, we generally withhold from the total number of shares that otherwise would be issued to the participant upon exercise of the stock option that number of shares having a fair market value at the time of exercise equal to the option exercise price and applicable income tax withholdings, and remit the remaining shares to the participant. During the three-month period ended October 31, 2020, 100,000 shares of our common stock were subject to net exercise. Of these, we withheld 65,487 shares to cover approximately $2.8 million of option exercise costs and income tax withholdings, and issued the remaining 34,513 shares to the participants. The shares withheld in connection with the net exercise method are not included in the total number of shares purchased in the table above.
(b) On March 10, 2020, our Board of Directors authorized the repurchase of 20 million shares of our common stock in open market transactions, privately negotiated transactions (including accelerated share repurchases), issuer tender offers or other financial arrangements or transactions for general corporate purposes, including to obtain shares for the Company’s equity award and other employee benefit plans. This authorization terminated, effective March 10, 2020, the prior authorization that had been in effect since December 10, 2019. The Board of Directors did not fix any expiration date for the share repurchase program currently in place.
Subsequent to October 31, 2020 and through December 21, 2020, we repurchased approximately 2.4 million shares of our common stock at an average price of $45.04 per share, substantially all of which were purchased under the repurchase program authorized by our Board of Directors on March 10, 2020.
Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreements), which limit the amount of share repurchases we may make. Based upon these provisions, our ability to repurchase our common stock was limited to approximately $3.18 billion as of October 31, 2020.
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Dividends
During fiscal 2020, we paid aggregate cash dividends of $0.44 per share to our shareholders. The payment of dividends is within the discretion of our Board of Directors and any decision to pay dividends in the future, and the amount of any such dividend, will depend upon an evaluation of a number of factors, including our results of operations, our capital requirements, our operating and financial condition, and any contractual limitations then in effect. Our revolving credit agreement and term loan agreement each require us to maintain a minimum tangible net worth (as defined in the respective agreement), which restricts the amount of dividends we may pay. At October 31, 2020, under the provisions of our revolving credit agreement and term loan agreement, we could have paid up to approximately $2.56 billion of cash dividends.
Stockholder Return Performance Graph
The following graph and chart compares the five-year cumulative total return (assuming that an investment of $100 was made on October 31, 2015, and that dividends were reinvested) from October 31, 2015 to October 31, 2020, for (a) our common stock, (b) the S&P Homebuilding Index and (c) the S&P 500 ® :
Comparison of 5 Year Cumulative Total Return Among Toll Brothers, Inc., the S&P 500 ® , and
the S&P Homebuilding Index
October 31: 2015 2016 2017 2018 2019 2020
Toll Brothers, Inc. $ 100.00 $ 76.29 $ 128.77 $ 95.15 $ 113.76 $ 122.53
S&P 500 ®
$ 100.00 $ 104.51 $ 129.21 $ 138.70 $ 158.57 $ 173.97
S&P Homebuilding Index $ 100.00 $ 94.35 $ 141.28 $ 113.52 $ 166.22 $ 195.10
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ITEM 6. SELECTED FINANCIAL DATA
The following tables set forth selected consolidated financial and housing data at and for each of the five fiscal years in the period ended October 31, 2020. They should be read in conjunction with the Consolidated Financial Statements and Notes thereto listed in Item 15(a)1 of this Form 10-K beginning at page F-1 and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 7 of this Form 10-K.
Summary of Consolidated Statements of Operations and Balance Sheets (amounts in thousands, except per share data):
Year ended October 31: 2020 2019 2018 2017 2016
Home Sales Revenues $ 6,937,357 $ 7,080,379 $ 7,143,258 $ 5,815,058 $ 5,169,508
Income before income taxes $ 586,901 $ 787,170 $ 933,916 $ 814,311 $ 589,027
Net income $ 446,624 $ 590,007 $ 748,151 $ 535,495 $ 382,095
Earnings per share:
Basic $ 3.43 $ 4.07 $ 4.92 $ 3.30 $ 2.27
Diluted $ 3.40 $ 4.03 $ 4.85 $ 3.17 $ 2.18
Weighted average number of shares outstanding:
Basic 130,095 145,008 151,984 162,222 168,261
Diluted 131,247 146,501 154,201 169,487 175,973
Cash dividends declared per share $ 0.44 $ 0.44 $ 0.41 $ 0.24 $ —
At October 31: 2020 2019 2018 2017 2016
Cash, cash equivalents, and marketable securities $ 1,370,944 $ 1,286,014 $ 1,182,195 $ 712,829 $ 633,715
Inventory $ 7,658,906 $ 7,873,048 $ 7,598,219 $ 7,281,453 $ 7,353,967
Total assets $ 11,065,733 $ 10,828,138 $ 10,244,590 $ 9,445,225 $ 9,736,789
Debt:
Loans payable $ 1,147,955 $ 1,111,449 $ 686,801 $ 637,416 $ 871,079
Senior debt 2,661,718 2,659,898 2,861,375 2,462,463 2,694,372
Mortgage company loan facility 148,611 150,000 150,000 120,145 210,000
Total debt $ 3,958,284 $ 3,921,347 $ 3,698,176 $ 3,220,024 $ 3,775,451
Equity $ 4,927,476 $ 5,118,693 $ 4,768,912 $ 4,537,090 $ 4,235,202
Housing Data
Year ended October 31: 2020 2019 2018 2017 2016
Closings:
Number of homes 8,496 8,107 8,265 7,151 6,098
Value (in thousands) $ 6,937,357 $ 7,080,379 $ 7,143,258 $ 5,815,058 $ 5,169,508
Net contracts signed:
Number of homes 9,932 8,075 8,519 8,175 6,719
Value (in thousands) $ 7,995,086 $ 6,710,937 $ 7,604,265 $ 6,828,277 $ 5,649,570
At October 31: 2020 2019 2018 2017 2016
Backlog:
Number of homes 7,791 6,266 6,105 5,851 4,685
Value (in thousands) $ 6,374,570 $ 5,257,091 $ 5,522,523 $ 5,061,517 $ 3,984,065
Number of selling communities 317 333 315 305 310
Home sites:
Owned 36,105 36,567 32,503 31,341 34,137
Controlled 27,077 22,663 20,919 16,970 14,700
Total 63,182 59,230 53,422 48,311 48,837
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