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.

OPERATING AND FINANCIAL HIGHLIGHTS

  • 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