Record Net Revenue and Growth of Margins Increase EZTEC's Net Income to R$78.2 Million

SAO PAULO, Oct. 28 /PRNewswire-FirstCall/ -- EZTEC S.A. (BOVESPA: EZTC3; Bloomberg EZTC3:BZ) with 31 years, is one of the most profitable builders and developers in Brazil. The Company announces its results for the third quarter of 2010 (3Q10).

Highlights

• Net Revenue of R$179.2 million in 3Q10, up 22.7% on 3Q09, and R$480.2 million in the first nine months of 2010 (9M10), up 25.5% on 9M09.
• Gross Income in 3Q10 of R$93.4 million, up 52.1% in relation to 3Q09, for Gross Margin of 52.1%. In 9M10, gross income amounted to R$224.1 million, 41.4% higher than in the same period last year, for gross margin of 46.7%, up 5.2 p.p. from 9M09.
• EBITDA in 3Q10 increased by 49.6% from 3Q09 to R$76.4 million, with EBITDA Margin of 42.6%. It totaled R$176.5 million in 9M10, 40.3% higher than in 9M09, for EBITDA margin of 36.8%, expanding 3.2 p.p. from 9M09.
• Net Income surpassed the record set in 2Q10 to reach R$78.2 million, growing 54.5% from 3Q09 and representing Net Margin of 43.6%. In 9M10, net income was R$181.0 million, for earnings per share of R$1.263, net margin of 37.7% and Annualized ROE of 26.8%.
• EZTEC maintained its financial solidity in 3Q10, ending the quarter with Cash and Equivalents of R$134.3 million. Excluding debt (all SFH financing), the company's Net Cash stood at R$78.6 million plus Performing Receivables from real-estate projects of R$279.0 million. These receivables, which qualify for securitization, are adjusted by the IGP-M + 12% p.a.
• In 3Q10, it was launched the high-end residential project Sophis. Located in Moema, in the city of São Paulo, with R$97.8 million in EZTEC PSV. Launches totaled R$633.0 million in 9M10, up 53.1% from 9M09. Launch volume represents approximately 79.1% of the center of the company's guidance and surpassed total launches in 2009 by 25.1%.
• EZTEC's share of Contracted Sales reached R$118.9 million in 3Q10, and was focused on units delivered or to be delivered in 2010. In 9M10, EZTEC's share of contracted sales totaled R$545.8 million, up 17.3% on 9M09. EZTEC always discloses its sales net of brokerage fees and rescissions.
• On September 30, 2009, the Land Bank represented R$3.9 billion in own PSV. The average land bank acquisition cost, including costs with increasing construction potential, corresponded to 8.7% of PSV.

SOURCE EZTEC S.A.