EZTEC Closes 2009 With Net Income of R$162.9 Million, Net Margin of 32.2%, EBITDA Margin of 31.7% and ROE of 20.6%

USA - English

• USA - English
• USA - English

SAO PAULO, March 8 /PRNewswire-FirstCall/ -- EZTEC S.A. (Bovespa: EZTC3), one of the most profitable publicly held companies within the Brazilian real estate industry, announces its results for the 4Q09:

Highlights

-- In fiscal year 2009, Net Revenue was R$506.0 million, up 51.5% from 2008. In 4Q09, net revenue grew 42.9% from 4Q08 to R$123.4 million.

-- In 2009, Gross Income was R$204.3 million, growing 27.5% from the prior year, for Gross Margin of 40.4%. In 4Q09, gross income was R$45.8 million, up 7.0% from 4Q08.

-- In 2009, EBITDA was R$160.3 million, up 106.0% from 2008, for EBITDA Margin of 31.7%, expanding 8.4 p.p. from the previous year. In 4Q09, EBITDA was R$34.6 million, an 11.1% increase from 4Q08.

-- Net Income was R$162.9 million in the year, for earnings per share of R$1.137, or 13.5% of the closing price on March 5, 2010. Net income was 59.5% higher than in 2008 and represented Net Margin of 32.2%.

-- EZTEC continued to maintain a solid cash position in 4Q09, ending the period with Available Cash of R$128.4 million, Net Cash of R$61.5 million and Performing Receivables from real estate projects of R$223.4 million. These receivables, which qualify for securitization and are adjusted by the IGP-M inflation index + 12% per year, grew by 191.7% from 3Q09 due to the conclusion of 7 projects in 4Q09.

-- Two projects were Launched in the quarter: the middle-end residential developments Reserva do Bosque and Quality House Jd. Prudencia located in Sao Paulo, as well as 3 phases of the low-end residential project Vidabella located in Mogi das Cruzes in the Sao Paulo Metropolitan Area. Launches totaled R$92.3 million in 4Q09, up 29.3% from 4Q08. In 2009, launches totaled R$505.8 million, for growth of 15.9% over 2008.

-- EZTEC's share in Contracted Sales was a record R$564.8 million in the year, growing by 57.8% from 2008, of which R$99.5 million was in the fourth quarter. EZTEC always discloses its sales net of brokerage and rescissions.

-- On December 31, 2009, EZTEC's Land Bank was worth R$3.6 billion in own PSV. The average land bank acquisition cost, including costs with increasing construction potential, is equivalent to 9.1% of PSV.

-- EZTEC's Management announces 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%.

    Conference Call
    Tuesday, March 9, 2010 - 9:00 a.m. (US ET)
    Webcast: www.eztec.com.br/ir
    Phone: (1 412) 858-4600
    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.