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3Q16 Earnings Release


3Q16 Earnings Release

EZTEC generates over R$208 million of Cash in the 9M16

Gross Margin of 45% demonstrates Company‘s capacity to keep profitability of its assets

São Paulo, November 09, 2016 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 37th anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the third quarter of 2016 (3Q16). Except where stated otherwise, EZTEC‘s operating and financial information is presented on a consolidated basis and in Brazilian real (R$), in accordance with Generally Accepted Accounting Principles in Brazil ("BR GAAP") and the International Financial Reporting Standards (IFRS) applicable to real estate developers in Brazil, as approved by the Accounting Pronouncement Committee (CPC), Securities and Exchange Commission of Brazil (CVM) and Federal Accounting Board (CFC).

Since January 1st, 2013, the rules of the IFRS 10 and IFRS 11 were taken into effect. These rules regard the projects with shared control. When adopting the norms of the CPC 19, a share of the Assets and Liabilities, Revenues and Expenses stop being consolidated proportionally to the Company´s stake. These changes will affect neither the Shareholder‘s Equity nor the Company‘s Net Income.

OPERATING AND FINANCIAL HIGHLIGHTS:

  • By the end of the 3Q16, EZTEC reported a Cash Equivalents and Financial Investments position of R$533.9 million. By excluding the Gross Debt of R$315.0 million (exclusively from SFH financing), the Company‘s Net Cash stands at R$218.9 million, of which R$48 million was generated in 3Q16. This is complemented by Performed Receivables from real estate projects of R$364.7 million, which is available for securitization and yields IGP-M + 10 to 12% p.a.;
  • Net Revenue reached R$420.8 million in 9M16;
  • Gross Profit totaled R$188.9 million, with Gross Margin of 44.9% in 9M16,;
  • EBITDA reached R$111.8 million for a EBITDA Margin of 26.6% in 9M16;
  • Net Income reached R$161.2 million, with Net Margin of 38.3% in 9M16; representing an Annualized ROE, adjusted by the additional dividends, of 8.2%;
  • EZTEC‘s Contracted Sales, net of rescissions, reached R$35.2 million in the 9M16;
  • October marked the acquisition of [i] 20% of Mônaco Incorporação Ltda. Society, which encompasses the Royale Prestige, Royale Tresor, and Royale Mérit projects, summing up 80% in participation; and [ii] 45% of participation in Serra Azul Incorporadora Ltda., which encompasses the Brasiliano projects, adding up to 90% in participation. Such acquisitions cost approximately R$20 million.
  • As of September 30, 2016, EZTEC‘s Land Bank totaled R$5.7 billion in own PSV. The average Cost of Lot Acquisitions, including the costs associated with expanding construction potential, is equivalent to 13.2% of PSV.

To access the Earnings Release, click here.

Conference Calls

English
November 10th, 2016
09:00 a.m. (New York Time)
12:00 p.m. (Brasília Time)
Ph.: +1 (412) 317-5450
Code: EZTEC

Replay:
+1 (412) 317-0088
Code: 10092947
Webcast: Click here

Portuguese
November 10th, 2016
07:30 a.m. (New York Time)
10:30 a.m. (Brasília Time)
Ph.: +55 (11) 2188-0155
Code: EZTEC

Replay:
+55 (11) 2188-0400
Code: EZTEC
Webcast: Click here


Contact IR

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