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EZTEC - 2Q19 Earnings Release


2Q19 Earnings Release

2Q19 delivers Net Income of R$ 94.9 million and Net Margin of 58.6%

São Paulo, August 14th, 2019 - EZTEC S.A. (B3: EZTC3), celebrates its 40th anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the second quarter of 2019 (2Q19). 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:

  • EZTEC ended 2Q19 with a Net Cash position of R$ 349.0 million, in addition to holding R$534.8 million in Receivables from Real Estate Developments. In the period, there was a cash burn of R$ 3.0 million, leading to cash, cash equivalents and short-term investments of R$ 420.8 million and debt of R$ 71.8 million from SFH financing.;
  • Net Revenue reached R$ 308.2 million in 1H19;
  • Gross Profit was R$ 117.6 million, for a Gross Profit Margin of 38.2% in 1H19;
  • Net Income reached R$ 112.2 million, with Net Margin of 36.4% in 1H19;
  • EZTEC’s Contracted Sales, net of cancellations, reached R$675.7 million in 1H19; and
  • On June 30th, 2019, the Company’s Landbank totaled R$5.8 billion in own PSV. The average acquisition cost for these plots, including costs regarding increases in constructive potential, is 14% of the PSV.

    To access the Earnings Release, click here.

    Conference Calls

    English
    August 15th, 2019
    3:30 p.m. (New York Time)
    4:30 p.m. (Brasília Time)
    Ph.: +1 (412) 317-6380
    Code: EZTEC

    Replay:
    +1 (412) 317-0088
    Code: 10128200
    Webcast: Click here

    Portuguese
    August 15th, 2019
    2:00 p.m. (New York Time)
    3:00 p.m. (Brasília Time)
    Ph.: +55 (11) 3181-8565
    Code: EZTEC

    Replay:
    +55 (11) 3193-1012
    Code: 8661706#
    Webcast: Click here

    For further information contact:
    EZTEC S.A. - Investor Relations
    Phone: +55 (11) 5056-8313
    E-mail: ri@eztec.com.br
    www.eztec.com.br/ir

    ABOUT EZTEC:

    With 40 years of operations, EZTEC is one of the most profitable publicly-traded companies in Brazil‘s real estate development and building industry. Based on its fully integrated business model, EZTEC has already launched 138 projects, totaling more than 4.2 million square meters of built area and area under construction, and 28.230 units. EZTEC S.A. is listed on the Novo Mercado special corporate governance segment of the São Paulo Stock Exchange (BM&FBOVESPA) under the ticker EZTC3.

    "This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of EZTEC. These are merely projections and, as such, are based exclusively on the expectations of the Company‘s management concerning the future of the business and its continued access to capital to fund its business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian economy and the industry, among other factors and risks disclosed in the Company‘s filed disclosure documents and are, therefore, subject to change without prior notice".

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    Contact IR

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