EZTEC S.A. Announces Record-Breaking Quarter: Contracted Sales of R$252.8 Million and Net Income of R$56.4 Million with Net Margin of 35.3%

SAO PAULO, Aug. 4 /PRNewswire-FirstCall/ --  EZTEC S.A. (BOVESPA: EZTC3; Bloomberg EZTC3:BZ), with 31 years as one of the most profitable builders and developers in Brazil, announces its results for the second quarter of 2010 (2Q10).

Highlights

• Net Revenue was R$160.0 million in 2Q10, up 21.2% on 2Q09, and R$300.9 million in 1H10, 27.2% higher than in 1H09.
• Gross Income of R$68.1 million in 2Q10, 30.2% higher than in 2Q09. In 1H10, gross income reached R$130.7 million, up 34.5% on 1H09, resulting in a Gross Margin of 43.4%, a 2.4 p.p. increase year on year.
• EBITDA in 2Q10 was R$53.2 million, 38.6% higher than in 2Q09, and R$99.8 million in 1H10, up 33.5% on 1H09, for an EBITDA Margin of 33.2%, a 1.6 p.p. increase year on year.
• Net Income was even higher than the record net income reported in 1Q10, reaching R$56.4 million, an increase of 32.2%, representing Net Margin of 35.3%. In 1H10, net income totaled R$102.8 million, representing earnings per share of R$0.717, Net Margin of 34.2% and Annualized ROE of 23.8%.
• EZTEC maintained its financial solidity in 2Q10, ending the quarter with Cash and Equivalents of R$114.6 million. Excluding debt (all SFH financing), the company's Net Cash was R$41.0 million, plus Performed Receivables from real estate projects of R$158.6 million. These receivables, which qualify for securitization, are adjusted by the IGP-M inflation index + 12.0% per year.
• During 2Q10, EZTEC launched five projects (Up Home, Quinta do Horto, Prime House Sacoma, Sky and Varanda Tremembe), which were all residential projects in the middle or upper-middle income segment located in the city of Sao Paulo. Together, these projects totaled R$338.2 million in EZTEC PSV. As a result, real estate launches in 1H10 amounted to R$535.2 million, up 48.1% on 1H09. The volume launched represents approximately 66.9% of the average set forth in the company's guidance and a 5.8% increase on total launches in 2009.
• EZTEC's share of Contracted Sales in 2Q10 reached a record R$252.8 million, a 2.1% increase on 2Q09, and R$426.9 million in 1H10, up 34.5% on 1H09. EZTEC always discloses sales net of brokerage commissions and rescissions.
• On June 30, 2010, EZTEC's land bank totaled R$3.5 billion in own PSV. The average land bank acquisition cost, including costs with increasing construction potential, is equivalent to 9.1% of PSV.

SOURCE EZTEC S.A.