EZTEC - Investor Relations Mobile

3Q17 Earnings Release


3Q17 Earnings Release

Sale of Tower B from the EZ Towers raises net income to R$335.2 in 9M17

107% growth in net income relative to the same period of 2016

São Paulo, November 09th, 2017 - EZTEC S.A. (B3: 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 2017 (3Q17). 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 first quarter of 2017, EZTEC reported a Cash Equivalents and Financial Investments position of R$1131.1 million. By excluding the Gross Debt of R$297.6 million (exclusively composed of SFH financing), the Company’s Net Cash stands at R$833.5 million, with a R$720.7 million Cash Generation in 3Q17, of which R$180.2 was paid in dividends. This is complemented by Performed Receivables from real estate projects of R$614.8 million, which is available for securitization and yields IGP-M + 10 to 12% p.a.;
  • Net Revenue reached R$894.6 million in 9M17;
  • Gross Profit totaled R$409.9 million, with Gross Margin of 45.8% in 9M17;
  • EBITDA reached R$310.6 million for a EBITDA Margin of 34.7% in 9M17;
  • Net Income reached R$336.9 million, with Net Margin of 37.7% in 9M17;
  • In the 3Q17 EZTEC has launched one project with a PSV of R$67.8 million;
  • EZTEC’s Contracted Sales, net of rescissions, reached R$715 million in the 9M17;
  • On September 30th, 2017, the Company’s Landbank totaled R$5.6 billion in own PSV. The average acquisition cost for these plots, including costs regarding increases in constructive potential, is 13% of the PSV; and
  • Sale of Tower B from the EZ Towers project to Brookfied for the lump sum value of R$650.3, received in full still in 3Q17.

To access the Earnings Release, click here.

Conference Calls

English
November 10th, 2017
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: 10108113
Webcast: Click here

Portuguese
November 10th, 2017
07:30 a.m. (New York Time)
10:30 a.m. (Brasília Time)
Ph.: +55 (11) 3127-4971
or +55 (11) 3728-5971

Code: EZTEC

Replay:
+55 (11) 3127-4999
Code: 64772410
Webcast: Click here


Contact IR

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