Fourth-quarter revenues approached $1.5 billion, compared with $903.4 million in fourth-quarter 2003. Meanwhile, net income for the fourth quarter reached $180.6 million, up from $93.4 million for the same quarter a year ago, and net income for all of fiscal 2004 rose to $409.1 million, compared with $259.8 million a year ago. Furthermore, as of Oct. 31, the company reported a backlog of contracts worth an aggregate of just over $1.5 billion.

"With more communities and more product line than ever before, we produced record results across the board while enjoying strong pricing power in the lot-constrained, affluent markets where we operate," says Robert I. Toll, chairman and CEO, in a statement. "Demand remained tremendous."

According to Fred Cooper, SVP of finance and investor relations, the firm's average home price is $580,000. The company entered what he calls the "luxury active adult" market in 1999 and is now involved in developing 46 active adult communities, of which 17 are open and 29 are in the pipeline. This market now represents 11% of Toll Brothers' business, and Cooper projects it will account for 15% within five years.