With New Records Since IPO, EZTEC Reports Net Income of R$329.0 Million in 2011

SAO PAULO, March 13, 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 fourth quarter of 2011 (4Q11) and fiscal year 2011.

Highlights

• Net Revenue reached R$744.2 million in 2011, up 16.9% from 2010. In 4Q11, Net Revenue was R$213.3 million.

• Gross Income was R$375.6 million in 2011, up 26.2% from 2010. In 4Q11, gross income reached R$110.3 million, with Gross Margin of 51.7%, accumulating 50.5% in 2011 (10.5 p.p. above our guidance for the year).

• EBITDA was R$289.3 million in 2011, an increase of 27.7% from 2010, for EBITDA Margin of 38.9%. EBITDA in 4Q11 was R$88.4 million, followed by an EBITDA margin of 41.4%.

• Net Income was R$329.0 million, for net margin of 44.2%, Earnings per Share of R$2.242 and Annualized ROE of 29.9%. Considering only 4Q11, Net Income was R$97.6 million in 4Q11, for Net Margin of 45.7%, 5.6 p.p. superior from the same quarter a year earlier.

• EZTEC kept its financial strength in 4Q11, ending the period with Cash Equivalents and Financial Investments of R$302.3 million. Excluding the debt of R$61.0 million (being exclusively of SFH financing), the Company's Net Cash stood at R$241.4 million, which was complemented by Performed Receivables from real estate projects of R$229.8 million, which are available for securitization and yielding IGPM+12% p.a.

• In 4Q11, the Company launched 5 residential projects, 2 in the city of Sao Paulo and 3 in the Sao Paulo Metropolitan Area (SPMA), totaling own PSV of R$379.0 million, bringing launches in 2011 to R$1,157.4 million, for growth of 30.5% from 2010. As a result, EZTEC complied its Guidance of launches for 2011 by reaching 105.2% of its center, close to the top.

• EZTEC's stake of Contracted Sales, net of brokerage commissions and rescissions, reached R$249.2 million in 4Q11 and R$884.3 million in 2011, growth of 18.2% from 2010.

• In the forth quarter of 2011, EZTEC acquired six new lots, three in the city of Sao Paulo, two in the coastal city of Santos and one in the SPMA, which mean additional own PSV of R$564.0 million. As a result, on December 31, 2011, EZTEC's land bank totaled R$4.8 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 9.7% of PSV.

Conference Call
Wednesday, March 14th, 2012 – 10:30 a.m. (US EDT)
Webcast: http://webcast.mz-ir.com/publico.aspx?codplataforma=3565
Phone: +1 (412) 317-6776
Code: EZTEC

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 S.A.