EZTEC - Investor Relations Mobile

2Q17 Earnings Release


2Q17 Earnings Release

EZTEC ends 1H17 with Net Income of R$53 million

Gross Margin maintenance at 47%

São Paulo, August 10, 2017 - EZTEC S.A. (BOVESPA: EZTC3) celebrates its 38th anniversary as one of the most profitable builders and developers in Brazil. The Company announces its results for the second quarter of 2017 (2Q17). Except where stated otherwise, EZTEC’s operating and financial information is presented on a consolidated basis and in Brazilian real (R$), in accordance with Generally Accepted Accounting Principles in Brazil ("BR GAAP") and the International Financial Reporting Standards (IFRS) applicable to real estate developers in Brazil, as approved by the Accounting Pronouncement Committee (CPC), Securities and Exchange Commission of Brazil (CVM) and Federal Accounting Board (CFC).

Since January 1st, 2013, the rules of the IFRS 10 and IFRS 11 were taken into effect. These rules regard the projects with shared control. When adopting the norms of the CPC 19, a share of the Assets and Liabilities, Revenues and Expenses stop being consolidated proportionally to the Company´s stake. These changes will affect neither the Shareholder’s Equity nor the Company’s Net Income.

OPERATING AND FINANCIAL HIGHLIGHTS:

  • By the end of the first quarter of 2017, EZTEC reported a Cash Equivalents and Financial Investments position of R$638 million. By excluding the Gross Debt of R$345 million (exclusively composed of SFH financing), the Company’s Net Cash stands at R$293 million, of which R$51.7 million was Cash Generation in 2Q17. This is complemented by Performed Receivables from real estate projects of R$658 million, which is available for securitization and yields IGP-M + 10 to 12% p.a.;
  • Net Revenue reached R$203 million in 1H17;
  • Gross Profit totaled R$95 million, with Gross Margin of 47,0% in 1H17;
  • EBITDA reached R$26 million for a EBITDA Margin of 12.7% in 1H17;
  • Net Income reached R$53 million, with Net Margin of 26% in 1H17;
  • In the 2Q17 EZTEC has launched one project with a PSV of R$49,5 million;
  • EZTEC’s Contracted Sales, net of rescissions, reached R$49 million in the 1H17; and
  • On June 30th, 2017, the Company’s Landbank totaled R$5.4 billion in own PSV. The average acquisition cost for these plots, including costs regarding increases in constructive potential, is 14% of the PSV.

To access the Earnings Release, click here.

Conference Calls

English
August 11th, 2017
11:00 a.m. (New York Time)
12:00 p.m. (Brasília Time)
Ph.: +1 (412) 317-5450
Code: EZTEC

Replay:
+1 (412) 317-0088
Code: 10108111
Webcast: Click here

Portuguese
August 11th, 2017
09:30 a.m. (New York Time)
10:30 a.m. (Brasília Time)
Ph.: +55 (11) 2188-0155
Code: EZTEC

Replay:
+55 (11) 2188-0400
Code: EZTEC
Webcast: Click here


Contact IR

Telephone: +55 11 5056 8313
E-mail: ri@eztec.com.br