Growing as planned, EZTEC reports net income of R$78.3 million in 1Q12

USA - English

• Brazil - Português

SAO PAULO, May 9, 2012 /PRNewswire/ -- EZTEC S.A. (BOVESPA: EZTC3) celebrates its 33rd anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the first quarter of 2012 (1Q12).

Highlights

• Net Revenue reached R$185.9 million in 1Q12, growth of 0.9% from 1Q11.

• Gross Income was R$93.7 million in 1Q12, up 7.6% from 1Q11, with Gross Margin of 50.4%, (10.4 p.p. above our guidance for the year).

• EBITDA was R$73.1 million in 1Q12, a growth of 7.2% from 1Q11, for EBITDA Margin of 39.3%.

• Net Income was R$78.3 million, with net margin of 42.1%, 12.1 p.p. above the guidance for the year, representing Earnings per Share of R$0.53 and Annualized ROE of 24.3%.

• EZTEC kept its financial strength in 1Q12, ending the period with Cash Equivalents and Financial Investments of R$285.7 million. Excluding the debt of R$88.4 million (being exclusively of SFH financing), the Company's Net Cash stood at R$197.3 million, which was complemented by Performed Receivables from real estate projects of R$222.8 million, which are available for securitization and yielding IGPM+12% p.a.

• In 1Q12, the Company launched 2 projects: the commercial project Neo Offices, in the city of Sao Paulo, with own PSV of R$40.8 million; and the middle-end residential project Bosque Ventura, in the Sao Paulo Metropolitan Arena (SPMA), with own PSV of R$103.4 million, totaling R$144.2 million in 1Q12. As a result, EZTEC achieved 11.1% of the midpoint of its Guidance of launches for 2012.

• EZTEC's stake of Contracted Sales, net of brokerage commissions and rescissions, reached R$238.9 million in 1Q12, reduction of 4.1% from 1Q11.

• In the first quarter of 2012, EZTEC acquired three new lots, two in the Sao Paulo Metropolitan Area and one in the city of Sao Paulo, which mean additional own PSV of R$795.7 million. As a result, on March 31, 2012, EZTEC's land bank (ex-EZ Tower) totaled R$4.5 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 10.6% of PSV.

Conference Call
Thursday, May 10th, 2012 – 10:30 a.m. (US EDT)
Webcast: http://webcast.mz-ir.com/publico.aspx?codplataforma=3829
Phone: +1 (412) 317-6776

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

SOURCE EZTEC