EZTEC Begins 2010 With Net Income Growth of 34.0% to R$46.3 million, Gross Margin of 44.4% and Net Margin of 32.9%

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

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%.
• EZTEC's 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 Company's 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 Sao Paulo, and Massimo Residence, a middle income residential development located in Jundiai. 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.
• EZTEC's 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, EZTEC's 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.
• EZTEC's 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%.

SOURCE EZTEC S.A.