New Operational Level Boosts EZTEC's Net Income by 52.8% to R$157.1 million in 1H11

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• Brazil - Português

SAO PAULO, Aug. 8, 2011 /PRNewswire/ -- EZTEC S.A. (BOVESPA: EZTC3; Bloomberg EZTC3:BZ) celebrates its 32nd anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the second quarter (2Q11) and first six months of 2011 (1H11).

Highlights

• Net Revenue reached R$177.4 million in 2Q11, up 10.9% from 2Q10, and R$361.6 million in 1H11, up 20.2% from 1H10.
• Gross Income was R$85.4 million in 2Q11 and R$172.4 million in 1H11, up 26.7% and 33.5% from 2Q10 and 1H10 respectively, with Gross Margin of 48.1% in 2Q11 and 47.7% in 1H11 (7.7 p.p. above our guidance for the year).
• EBITDA in 2Q11 increased by 23.9% from 2Q10 to R$65.3 million, for EBITDA Margin of 36.8%. EBITDA in 1H11 was 35.5% higher than the R$133.6 million in 1H10, accompanied by EBITDA margin of 36.9%, for expansion of 4.2 p.p..
• Net Income was R$75.8 million in 2Q11, up 34.3% from 2Q10, for Net Margin of 42.7%, expanding 7.4 p.p. from the same quarter a year earlier. In 1H11, Net Income was R$157.1 million, representing net margin of 43.4%, earnings per share of R$1.070 and Annualized ROE of 30.6%.
• EZTEC maintained its financial solidity in 2Q11, ending the period with Cash, Cash Equivalents and Financial Investments of R$306.6 million. Excluding the debt of R$50.5 million (composed exclusively of SFH financing), the Company's Net Cash stood at R$256.1 million, which was complemented by Performing Receivables from real estate projects of R$214.7 million, which are eligible for securitization and remunerated at IGPM+12% p.a..
• In 2Q11, the Company launched 3 developments: the commercial project Superia Pinheiros, the upper-middle-income residential project Chateau Monet and the high-income residential project Still Vila Mascote, all located in the city of São Paulo and launched in late June. Given the launch date, the sales from these projects will be booked only as of 3Q11. Launches in the quarter totaled own PSV of R$224.4 million, bringing own PSV in 1H11 to R$669.9 million, for growth of 25.2% from 1H10. As a result, launch volume already represents 60.9% of the center of the guidance range given for 2011.
• EZTEC's share of contracted sales net of brokerage commissions and rescissions reached R$98.1 million in 2Q11 and R$473.4 million in 1H11, up 10.9% from 1H10.
• In the second quarter, EZTEC acquired six new lots, all in the city of Sao Paulo, which represent additional own PSV of R$373.4 million. As a result, on June 30, 2011, EZTEC's land bank corresponded to R$4.0 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 8.6% of PSV.

Conference Call
Tuesday, August 09, 2011 – 10:30 a.m. (US ET)
Webcast: www.eztec.com.br/ir
Phone: (1 412) 317-6776
Code: EZTEC

For further information contact:
EZTEC S.A. - Investor Relations
Phone: +55 (11) 5056-8328
E-mail: [email protected]
www.eztec.com.br/ir

SOURCE EZTEC