EZTEC - Investor Relations Mobile

1Q10 Earnings Release - EZTEC begins 2010 with Net Income growth of 34.0% to R$46.3 million

São Paulo, May 7, 2010 - EZTEC S.A. (BOVESPA: EZTC3), with 31th years as one of the most profitable builders and developers in Brazil. EZTEC announces its results for the first quarter of 2010 (1Q10) and the outlook for 2010.


  • Net Revenue of R$140.9 million, up 14.2% from 4Q09 and 34.8% higher than in 1Q09.
  • Gross Income of R$62.5 million, 36.6% higher than in the last quarter of 2009, for Gross Margin of 44.4%, up 7.3 p.p. from 4Q09. In relation to 1Q09, gross income grew 39.6%.
  • EBITDA in 1Q10 was R$46.5 million, up 34.6% from 4Q09, for EBITDA Margin of 33.0%, increasing 5.0 p.p. from the previous quarter. In 1Q10, EBITDA was 28.1% higher than in 1Q09.
  • In 1Q10, Net Income was R$46.3 million, representing earnings per share of R$0.323 and Net Margin of 32.9%. In relation to 4Q09, Net Income grew by 34.0%.
  • EZTECís financial solidity was evident once again in 1Q10, ending the quarter with Cash and Equivalents of R$154.3 million, up 20.2% from the previous quarter. Excluding debt (all SFH financing), the Companyís Net Cash was R$84.3 million, plus performing receivables from real estate projects of R$176. million. These receivables, which qualify for securitization, are adjusted by the IGP-M inflation index + 12% per year.
  • In 1Q10, three developments were launched: the middle income residential developments Gran Village Club and Clima Mascote located in São Paulo, and Massimo Residence, a middle income residential development located in Jundiaí. As a result, launches in 1Q10 totaled R$197.0 million, up 262.1% from 1Q09. The volume launched represents approximately 25.0% of the center of the guidance range.
  • EZTECís share of Contracted Sales in 1Q10 totaled R$174.1 million, an increase of 75.0% in relation to 4Q09 and 150.0% in relation to 1Q09. EZTEC always discloses its sales net of brokerage commissions and rescissions.
  • On March 31, 2010, EZTECís land bank totaled R$3.4 billion in own PSV. The average land bank acquisition cost, including costs with increasing construction potential, is equivalent to 9.0% of PSV.
  • EZTECís management reaffirms to investors and the general market its guidance for 2010, with launches of between R$700.0 million and R$900.0 million and minimum levels of gross margin of 40% and net margin of 30%.

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Contact IR

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