by Calculated Risk on 2/06/2008 10:40:00 AM

From MarketWatch: Toll's home-building revenue falls 22%

Toll Brothers Inc. doesn't see any end in sight to the U.S. housing market's woes as the luxury home builder said Wednesday that first quarter home-construction revenue fell 22% compared to the same period last year.

"The housing market remains very weak in most areas. Based on current traffic and deposits, we are not yet seeing much light at the end of the tunnel," said Robert Toll, chairman and CEO.

On cancellations:

In FY 2008's first quarter, the Company had 257 cancellations totaling approximately $198.0 million, compared to 436 cancellations totaling $318.9 million in FY 2007's first quarter, and 417 cancellations totaling $328.5 million in FY 2007's fourth quarter.

Tracking cancellations is important because the Census Bureau does not adjust new home sales (and inventory) with cancellations. Toll's cancellation rate is usually lower than the industry because historically Toll has required larger deposits than other homebuilders. Although the absolute number of cancellations declined, the Toll cancellation rate in Q1 was 28% vs. 29% in Q1 2007, or essentially unchanged.