Operator: Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Toll Brothers' Second Quarter 2011 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.
Thank you. I will now turn the call over to Mr. Douglas Yearley Jr., Chief Executive Officer. Please go ahead, Sir.
Douglas C. Yearley, Jr. - CEO and Director: Thank you Sherdae. Welcome and thank you all for joining us. I'm Doug Yearley, CEO, and with me today are Bob Toll, Executive Chairman; Marty Connor, Chief Financial Officer; Fred Cooper, Senior VP of Finance, International Development and Investor Relations; Joe Sicree, Chief Accounting Officer; Kira Sterling, Chief Marketing Officer; Mike Snyder, Chief Planning Officer; Don Salmon, President of TBI Mortgage Company; and (Greg Ziegler), Senior VP, Treasury.
Before I begin, I ask you to read the statement on forward-looking information in today's release and on our website. I caution you that many statements on this call are based on assumptions about the economy, world events in housing and financial markets, and many other factors beyond our control that could significantly affect future results.
Those listening on the web can email questions to email@example.com. At the suggestion of several of you, we're going to reduce our prepared remarks to provide more time for Q&A. Since our detailed release has been out since early this morning and is posted on our website, I'm sure you've all read it. So I won't reread it for you.
We continue to see stability and, in some cases, improvement across our various luxury product lines. Our target customers generally have remained employed during this downturn and with their solid credit profiles have been able to secure mortgages at good rates. We believe that some of our clients after waiting so long are starting to move off the fence and into the market motivated by attractive pricing, low interest rates, and most importantly, the desire to take the next step in their lives.
The family with elementary school kids and a puppy when the housing debacle began five years ago now has middle school kids and the dog weighs 80 pounds. The 55-year old who wanted an active adult lifestyle in 2006 is now 60. Some people would rather move on than wait for a better housing market.
Our fiscal year 2011 second quarter net signed contracts rose 8% in dollars and 7% in units compared to 2010 second quarter. The average price of net signed contracts was $570,000, an increase of 1% from 2010 second quarter.
Fiscal year 2011 second quarter net signed contracts of 4.35 units per community were approximately equal to 2010 second quarter total and exceeded 2009 second quarter by 87% and 2008 second quarter by 47%. However, they were still well below our historical second quarter average, dating back to 1990 of 7.88 units per community.
Our contract cancellation rate of 3.9% in the second quarter compared to 5.3% in 2010 second quarter, which was better than the Company's pre-downturn historical average of about 7%. Our fiscal year 2011 second quarter end backlog increased 1% in both dollars and units compared to 2010 second quarter end.