EZTEC - Investor Relations Mobile

4Q16 Earnings Release


4Q16 Earnings Release

EZTEC closes 2016 with R$200 million in Cash Generation

Gross Margin of 47% reveals the Company‘s financial consistency through the crisis

São Paulo, March 20, 2017 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 38th anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the third quarter of 2016 (4Q16). 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 2016, EZTEC reported a Cash Equivalents and Financial Investments position of R$563.9 million. By excluding the Gross Debt of R$353.5 million (exclusively from SFH financing), the Company‘s Net Cash stands at R$210.4 million, of which R$200 million was generated in 4Q16. This is complemented by Performed Receivables from real estate projects of R$388.6 million, which is available for securitization and yields IGP-M + 10 to 12% p.a.;
  • Net Revenue reached R$572.2 million in 2016;
  • Gross Profit totaled R$270.1 million, with Gross Margin of 47.2% in 2016,;
  • EBITDA reached R$169.3 million for a EBITDA Margin of 29.6% in 2016;
  • Net Income reached R$230.2 million, with Net Margin of 40.2% in 2016; representing an Annualized ROE, adjusted by the additional dividends, of 8.5%;
  • EZTEC‘s Contracted Sales, net of rescissions, reached R$76 million in the 2016;
  • Launches reached a PSV of R$ 204.6 million in 2016, apart from Share Acquisitions of a PSV of R$25.5 million;
  • 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 December 31st, 2016, EZTEC‘s Land Bank totaled R$5.7 billion in own PSV. The average Cost of Lot Acquisitions, including the costs associated with expanding construction potential, is equivalent to 13.4% of PSV. In the fourth quarter of 2016 EZTEC acquired three plots in the cit of São Paulo, which collectively contributed with R$ 200 million in PSV to the Company‘s land bank, with an average cost of acquisition of 22.8% of its PSV.

To access the Earnings Release, click here.

Conference Calls

English
March 21st, 2017
11:00 a.m. (New York Time)
12:00 p.m. (Brasília Time)
Ph.: +1 (412) 317-5450
Code: EZTEC

Replay:
+1 (412) 317-0088
Code: 10101182
Webcast: Click here

Portuguese
March 21st, 2017
09:30 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