Reading between the lines: Toll Brothers' view of housing

Toll Brothers (NYSE: TOL) reported its first full-year loss after 22 years of profitability on the NYSE in FY2008, but the company is keeping its eye on the future. Frederick Cooper, Senior Vice President of Finance and Investor Relations, told stockholders in a letter inserted in the annual report, "With FYE 2008 liquidity of nearly $3 billion, including approximately $1.6 billion of cash and $1.3 billion under our 31-bank credit facility, which matures in March 2011, we are actively looking for opportunities that we anticipate will arise from today's challenging environment."

Let's first take a look at the challenges the company discusses in the FY2008 annual report and then explore its forward-looking statements. First the hard numbers: