With the Highest Margins Since IPO, EZTEC Reports Net Income of R$233.4 Million in 9M11

SAO PAULO, Nov. 8, 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 second quarter (3Q11) and first nine months of 2011 (9M11).

Highlights

• Net Revenue reached R$530.9 million in 9M11, up 10.6% from 9M10. In 3Q11, Net Revenue was R$169.3 million.
• Gross Income was R$265.4 million in 9M11, up 19.8% from 9M10. In 3Q11, gross income reached R$92.9 million, with Gross Margin of 54.9%, accumulating 50.0% in 9M11 (10.0 p.p. above our guidance for the year).
• EBITDA was R$200.9 million in 9M11, an increase of 15.6% from 9M10, for EBITDA Margin of 37.8%. EBITDA in 3Q11 was R$67.3 million, followed by an EBITDA margin of 39.8%.
• Net Income was R$233.4 million, for net margin of 44.0%, Earnings per Share of R$1.59 and Annualized ROE of 29.3%. Considering only 3Q11, Net Income was R$76.3 million in 3Q11, for Net Margin of 45.1%, 1.5 p.p. superior from the same quarter a year earlier.
• EZTEC kept its financial strength in 3Q11, ending the period with Cash Equivalents and Financial Investments of R$314.0 million. Excluding the debt of R$39.3 million (made exclusively of SFH financing), the Company's Net Cash stood at R$274.7 million, which was complemented by Performed Receivables from real estate projects of R$183.4 million, which are available for securitization and yielding IGPM+12% p.a..
• In 3Q11, the Company launched the high-end residential project Sophis Santana, in the city of Sao Paulo, with own PSV of R$108.5 million, bringing launches in 9M11 to R$778.4 million, for growth of 23% from 9M10. As a result, launch volume already represents 70.7% of the center of the guidance range for 2011.
• EZTEC's stake of Contracted Sales, net of brokerage commissions and rescissions, reached R$161.7 million in 3Q11 and R$635.1 million in 9M11, growth of 16% from 9M10.
• In the third quarter of 2011, EZTEC acquired three new lots, all of them in the city of Sao Paulo, which mean additional own PSV of R$483.8 million. As a result, on September 30, 2011, EZTEC's land bank totaled R$4.4 billion in own PSV. The average cost of lot acquisitions, including the costs associated with expanding construction potential, is equivalent to 9.3% of PSV.

Conference Call
Wednesday, November 09, 2011 – 08:30 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) 5056-8323
E-mail: [email protected]
www.eztec.com.br/ir

SOURCE EZTEC S.A.