Toll Brothers, Inc. (NYSE:TOL) Q4 2022 Earnings Call Transcript

Michael Dahl : Understood. Okay. And then maybe from a more near-term standpoint, given some of the comments earlier in the quarter and how you say you got burned by them. But it does seem like maybe you ended the quarter closer to 1 a month. So when you make the comment about no discernible improvement, is that kind of relative to quarter end pace? Is it — you were down 60% for the full quarter, and you’re just saying still down about 60%? Maybe just give us a little more on the current sales pace and what you’re trying to — the message with that comment?

Douglas Yearley : Yes. So the demand was pretty even between August, September and October. So our comments on November and the first — the beginning of December here are related to the entire fourth quarter. So I wouldn’t read more into it than that. To my earlier comment on we’re going to continue to react the need to incentivize where appropriate. Remember, we haven’t given up on ROE, and we are very focused on ROE, and we will continue to focus on ROE, not just in terms of any future land buying or in terms of renegotiating of existing deals, but also in terms of the need to turn inventory. And so building costs coming down, cycle time coming down, and the need to turn that inventory is front and center in our mind.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Douglas Yearley: Jason, thank you very much. Thanks, everyone for your interest and support and great questions. We are always here to help clarify any further questions you may have. And have a wonderful, wonderful holiday season, and we’ll see you in the new year. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.