EZTEC - Investor Relations Mobile

3Q10 Earnings Release - Record Net Revenue and Margins Increase EZTECís Net Income to R$78.2 million. Gross Margin expands to 52.1% while Net Margin expands to 43.6%.


São Paulo, October 28, 2010 - EZTEC S.A. (BOVESPA: EZTC3), founded 31 years ago, is one of the most profitable builders and developers in Brazil. The Company announces its results for the third quarter of 2009 (3Q10).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Net Revenue of R$179.2 million in 3Q10, up 22.7% on 3Q09, and R$480.2 million in the first nine months of 2010 (9M10), up 25.5% on 9M09.
  • Gross Income in 3Q10 of R$93.4 million, up 52.1% in relation to 3Q09, for Gross Margin of 52.1%. In In 9M10, gross income amounted to R$224.1 million, 41.4% higher than in the same period last year, for gross margin of 46.7%, up 5.2 p.p. from 9M09.
  • EBITDA in 3Q10 increased by 49.6% from 3Q09 to R$76.4 million, with EBITDA Margin of 42.6%.It totaled R$176.5 million in 9M10, 40.3% higher than in 9M09, for EBITDA margin of 36.8%, expanding 3.9 p.p. from 9M09.
  • Net Income surpassed the record set in 2Q10 to reach R$78.2 million, growing 54.5% from 3Q09 and representing Net Margin of 43.6%. In 9M10, net income was R$181.0 million, for earnings per share of R$1.263, net margin of 37.7% and Annualized ROE of 26.8%.
  • EZTEC maintained its financial solidity in 3Q10, ending the quarter with Cash and Equivalents of R$134.3 million. Excluding debt (all SFH financing), the company’s Net Cash stood at R$78.6 million plus Performing Receivables from real-estate projects of R$279.0 million. These receivables, which qualify for securitization, are adjusted by the IGP-M + 12% p.a.
  • In 3Q10, we launched the high-end residential project Sophis. Located in Moema, in the city of São Paulo, with R$97.8 million in EZTEC PSV. Launches totaled R$633.0 million in 9M10, up 53.1% from 9M09. Launch volume represents approximately 79.1% of the center of the company’s guidance and surpassed total launches in 2009 by 25.1%.
  • EZTEC’s share of Contracted Sales reached R$118.9 million in 3Q10, and was focused on units delivered or to be delivered in 2010. In 9M10, EZTEC’s share of contracted sales totaled R$545.8 million, up 17.3% on 9M09. EZTEC always discloses its sales net of brokerage fees and rescissions.
  • On September 30, 2009, the Land Bank represented R$3.9 billion in own PSV. The average land bank acquisition cost, including costs with increasing construction potential, corresponded to 8.7% of PSV.

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Contact IR

Telephone: +55 11 5056 8313
E-mail: ri@eztec.com.br