EZTEC's Launches Represent 40.5% of the Center of Its Guidance Range for 2011 and Reports Record-High Net Income of R$81.3 Million

SAO PAULO, May 10, 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 first quarter of 2011 (1Q11).

Highlights

• EZTEC's Net Revenue was R$184.2 million, up 30.8% from 1Q10 and 17.9% higher than in 4Q10.
• Gross Income in the quarter was R$87.1 million, 41.1% more than in 1Q10 and 14.3% more than in the previous quarter, reaching Gross Margin of 47.3%, or 7.3 p.p. higher than the guidance for the year.
• EBITDA in 1Q11 increased by 48.8% from 1Q10 to R$68.2 million, for EBITDA Margin of 37.0%. In relation to 4Q10, EBITDA grew by 29.6%, for EBITDA margin expansion of 3.3 p.p..
• Net Income was R$81.3 million in 1Q11, up 75.4% from 1Q10, for Net Margin of 44.1%, expanding 11.2 p.p. from the same period a year earlier, corresponding to Earnings per Share of R$0.554 and annualized ROE of 33.1%.
• EZTEC maintained its financial solidity in 1Q11, ending the period with Cash, Cash Equivalents and Financial Investments of R$284.6 million. Excluding debt (which is exclusively composed of SFH financing), the Company's Net Cash was R$251.4 million, plus Performing Receivables from real estate projects of R$216.6 million. These receivables, which qualify for securitization, are adjusted by the IGP-M+12% p.a..
• In 1Q11, the Company launched 5 developments: the commercial projects NeoCorporate Offices and Trend Paulista Offices in Sao Paulo, the middle-end residential projects Quality House Sacoma in Sao Paulo and Royale Tresor in the Sao Paulo Metropolitan Area, and the middle-high end residential project Up Home Jd. Prudencia in Sao Paulo. The launches in the quarter totaled own potential sales value (PSV) of R$445.6 million, for growth of 126.2% from 1Q10 and 75.3% from 4Q10. As a result, launch volume already represents 40.5% of the center of the guidance range established for 2011.
• EZTEC's share of Contracted Sales in 1Q11 totaled R$375.3 million in 1Q11, an increase of 115.6% in relation to 1Q10 and 85.6% in relation to 4Q10. EZTEC always discloses its sales net of brokerage commissions and rescissions.
• On March 31, 2011, EZTEC's Land Bank totaled R$3.6 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 8.7% of PSV.

Conference Call
Wednesday, May 11, 2011 – 10:00 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 S.A.