Toll Brothers, Inc. (NYSE:TOL) Q3 2024 Earnings Conference Call August 21, 2024 8:30 AM ET
Company Participants
Douglas Yearley - CEO
Martin Connor - CFO
Conference Call Participants
Stephen Kim - Evercore ISI
John Lovallo - UBS
Alan Ratner - Zelman & Associates
Michael Rehaut - JPMorgan
Michael Dahl - RBC Capital Markets
Trevor Allinson - Wolfe Research
Rafe Jadrosich - Bank of America
Sam Reid - Wells Fargo
Operator
Good morning, and welcome to the Toll Brothers Third Quarter Fiscal Year 2024 Conference Call. [Operator Instructions] The company is planning to end the call at 9:30 when the market opens. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Douglas Yearley, CEO. Please go ahead.
Douglas Yearley
Thank you, Dave. Good morning. Welcome, and thank you for joining us. With me today are Marty Connor, Chief Financial Officer; Rob Parahus, President and Chief Operating Officer; Wendy Marlett, Chief Marketing Officer; and Gregg Ziegler, Senior VP, Treasurer and our Head of Investor Relations.
As usual, 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. Please read our statement on forward-looking information in our earnings release of last night and on our website to better understand the risks associated with our forward-looking statements.
We had another terrific quarter and are very pleased with our fiscal third quarter results. We delivered 2,814 homes at an average price of $968,000 generating record third quarter home sale revenues of $2.72 billion. Our adjusted gross margin of 28.8% exceeded guidance by 110 basis points primarily due to greater efficiencies in our homebuilding operations, as well as favorable mix. Our SG&A expense was 9.0% of home sale revenues or 20 basis points better than guidance.
Outperformance in both the topline and then our margin drove earnings of $3.60 per diluted share, keeping us on track to deliver another great year for Toll Brothers. In the third quarter, we signed 2,490 net contracts for $2.4 billion, up approximately 11% in both units and dollars compared to last year's third quarter. On a per community basis, we sold at a pace of 2.1 homes per month, down slightly versus the 2.2 pace we sold in last year's third quarter.