EZTEC - Investor Relations Mobile

1Q11 Earnings Release - EZTEC


São Paulo, May 10, 2011 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 32nd anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the first quarter of 2011 (1Q11).

OPERATING AND FINANCIAL HIGHLIGHTS

  • EZTEC’s Net Revenue was R$184.2 million, up 30.8% from 1Q10 and 17.9% higher than in 4Q10.
  • Gross Income in the quarter was R$87.1 million, 41.1% more than in 1Q10 and 14.3% more than in the previous quarter, reaching Gross Margin of 47.3%, or 7.3 p.p. higher than the guidance for the year.
  • EBITDA in 1Q11 increased by 48.8% from 1Q10 to R$68.2 million, for EBITDA Margin of 37.0%. In relation to 4Q10, EBITDA grew by 29.6%, for EBITDA margin expansion of 3.3 p.p..
  • Net Income was R$81.3 million in 1Q11, up 75.4% from 1Q10, for Net Margin of 44.1%, expanding 11.2 p.p. from the same period a year earlier, corresponding to Earnings per Share of R$0.554 and annualized ROE of 33.1%.
  • EZTEC maintained its financial solidity in 1Q11, ending the period with Cash, Cash Equivalents and Financial Investments of R$284.6 million. Excluding debt (which is exclusively composed of SFH financing), the Company’s Net Cash was R$251.4 million, plus Performing Receivables from real estate projects of R$216.6 million. These receivables, which qualify for securitization, are adjusted by the IGP-M+12% p.a..
  • In 1Q11, the Company launched 5 developments: the commercial projects NeoCorporate Offices and Trend Paulista Offices in São Paulo, the middle-end residential projects Quality House Sacomã in São Paulo and Royale Tresor in the São Paulo Metropolitan Area, and the middle-high end residential project Up Home Jd. Prudência in São Paulo. The launches in the quarter totaled own potential sales value (PSV) of R$445.6 million, for growth of 126.2% from 1Q10 and 75.3% from 4Q10. As a result, launch volume already represents 40.5% of the center of the guidance range established for 2011.
  • EZTEC’s share of Contracted Sales in 1Q11 totaled R$375.3 million in 1Q11, an increase of 115.6% in relation to 1Q10 and 85.6% in relation to 4Q10. EZTEC always discloses its sales net of brokerage commissions and rescissions.
  • On March 31, 2011, EZTEC’s Land Bank totaled R$3.6 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 8.7% of PSV.

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Contact IR

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