Toll Brothers, Inc. (NYSE:TOL) Q4 2023 Earnings Call Transcript December 6, 2023 8:30 AM ET
Company Participants
Douglas Yearley - Chairman and CEO
Martin Connor - CFO
Conference Call Participants
Stephen Kim - Evercore ISI
Mike Dahl - RBC Capital Markets
Michael Rehaut - JP Morgan
Alan Ratner - Zelman Associates
Rafe Jadrosich - Bank of America
Alex Barron - Housing Research Center
John Lovallo - UBS
Truman Patterson - Wolfe Research
Operator
Good morning, and welcome to the Toll Brothers Fourth Quarter Fiscal Year 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] The company is planning to end the call at 9:30 when the market opens. During the Q&A, please limit yourself to one question and one follow-up. Please also note this event is being recorded.
I would now like to turn the conference over to Douglas Yearley, CEO. Please go ahead, sir.
Douglas Yearley
Thank you, Rocco. Good morning. Welcome and thank all of you for joining us. Before I begin, I ask you to read our statement on forward-looking information in our earnings release of last night and on our website. I caution you that many statements on this call are forward-looking based on assumptions about the economy, world events, housing and financial markets, interest rates, the availability of labor and materials, inflation, and many other factors beyond our control, that could significantly affect future results.
With me today are Marty Connor, Chief Financial Officer; Rob Parahus, President and Chief Operating Officer; Fred Cooper, Senior VP of Finance and Investor Relations; Wendy Marlett, Chief Marketing Officer; and Gregg Ziegler, Senior VP and Treasurer.
Fiscal 2023 and the fourth quarter were terrific for Toll Brothers. Our income and earnings per share for the full year were all-time highs and we ended the year with a 72% increase in fourth quarter signed contracts compared to Q4 2022. We delivered 2,755 homes and generated $2.95 billion in home sales revenues in the fourth quarter, $211 million above the midpoint of our guidance.
Our adjusted gross margin was 29.1% and our SG&A expense as a percentage of home sales revenues was 8.2%, each beating guidance by 60 basis points. The combination of top-line outperformance and improved operating efficiency resulted in net income of $445.5 million or $4.11 per diluted share, our second best fourth quarter ever behind only last year's fourth quarter.