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EZTEC - 3Q19 Earnings Release


3Q19 Earnings Release

Net Revenue is R$ 188 million and Gross Margin of 47% are the highest since the selling of EZ Tower

São Paulo, November 13th, 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 third quarter of 2019 (3Q19). 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 carried out this quarter a follow-on that allowed a net funding of R$ 941 million in cash. As a result, it ended 3Q19 with a Net Cash position of R$ 1,335.9 million, in addition to holding R$ 572.5 million in Receivables from Real Estate Developments. In the period, there was a cash build of R$ 986.9 million, or R$ 45,4 million ex-follow-on, leading to cash, cash equivalents and short-term investments of R$ 1,402.1 million and debt of R$ 66.2 million from SFH financing.;
  • Net Revenue reached 495.8 million in 9M19;
  • Gross Profit was R$ 205.5 million, for a Gross Profit Margin of 41.5% in 9M19;
  • Net Income reached R$ 173.5 million, with Net Margin of de 35.0% in 9M19;
  • EZTEC’s Contracted Sales, net of cancellations, reached R$ 1,018.9 million in 9M19; and
  • On September 30, 2019, the Company‘s Landbank totaled R$ 5.7 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 Call

    English
    November 14th, 2019
    10:00 a.m. (New York Time)
    12:00 p.m. (Brasília Time)
    Ph.: +1 (412) 317-6380
    Code: EZTEC

    Replay:
    +1 (412) 317-0088
    Code: 10128201
    Webcast: Click here



    Contact IR

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