Brightpoint Reports Fourth Quarter Financial Results.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--Jan. 27, 2000 Brightpoint Brightpoint, Inc. (NASDAQ: CELL) is a leading global communications technology firm that specializes in the distribution of wireless devices and in providing customized logistics services to the wireless industry. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CELL) -- Revenue from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations of $538 million for the 1999 fourth quarter -- Net income per share from recurring operations of $0.18 for the 1999 fourth quarter -- Operating activities generate positive cash flow of approximately $35 million for the 1999 fourth quarter Brightpoint, Inc. (NASDAQ:CELL) reported its financial results for the quarter and year ended December December: see month. 31, 1999. Recurring operations in the fourth quarter of 1999 generated net income per share of $0.18 on revenue of $538 million, which compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. on a sequential One after the other in some consecutive order such as by name or number. basis to recurring operations for the third quarter of 1999 in which the Company generated net income per share of $0.07 on revenue of $460 million. For the fourth quarter of 1998, the Company generated net income per share of $0.21 on revenue of $446 million from its recurring operations. Basis of Presentation. Because of the significance of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan announced by the Company on June June: see month. 30, 1999 (the &uot;Plan&uot;), results of operations have been delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. between results from recurring operations and results from non-recurring operations. In addition, the impacts of non-recurring charges have also been shown separately in this earnings release. Recurring operations include all operations except those that have been eliminated or terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the Plan. Recurring operations also exclude the impacts of the non-recurring charges recorded in 1998 and 1999, the cumulative effect of a change in accounting principle recorded in the first quarter of 1999 and a net investment gain recognized in the first quarter of 1998. The attached consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statements of operations include all operations and the charges discussed herein. As of the date of this release, the Company's execution of the Plan has been substantially completed.
RECURRING OPERATIONS
(U.S. Dollars, in
thousands except Quarter Ended Year Ended
per share data) December 31 December 31
----------------- ---------------------
1998 1999 Change 1998 1999 Change
----------------------------------------------------
Revenue $446,056 $537,587 21% $1,309,202 $1,681,629 28%
Cost of revenue 408,865 492,770 21% 1,190,115 1,546,615 30%
----------------- ---------------------
Gross profit 37,191 44,817 21% 119,087 135,014 13%
Selling, general
and administrative
expenses 18,254 25,473 40% 58,268 95,549 64%
----------------- ---------------------
Operating income 18,937 19,344 2% 60,819 39,465 (35%)
Interest expense 2,558 2,779 9% 9,608 12,094 26%
----------------- ---------------------
Income before income
taxes and minority
interest 16,379 16,565 1% 51,211 27,371 (47%)
Income taxes 4,914 6,295 28% 15,363 10,618 (31%)
----------------- ---------------------
Income before
minority
interest 11,465 10,270 (10%) 35,848 16,753 (53%)
Minority interest -- (40) 0% -- (40) 0%
----------------- ---------------------
Net income $ 11,465 $ 10,310 (10%) $ 35,848 $ 16,793 (53%)
----------------- ---------------------
----------------- ---------------------
Net income per
share (diluted) $ 0.21 $ 0.18 (14%) $ 0.67 $ 0.31 (54%)
----------------- ---------------------
----------------- ---------------------
Weighted average
shares outstanding
(diluted) 53,730 62,708 53,483 54,145
----------------- ---------------------
----------------- ---------------------
Revenue. Revenue from recurring operations in the quarter ended December 31, 1999 increased 21%, compared to revenue generated by the same operations in the fourth quarter of 1998. For the year ended December 31, 1999, revenue from recurring operations increased 28% from the prior year. Sales growth in the fourth quarter of 1999 was suppressed sup·press tr.v. sup·pressed, sup·press·ing, sup·press·es 1. To put an end to forcibly; subdue. 2. To curtail or prohibit the activities of. 3. due to a shortage of handsets in all of our markets as demand for handsets exceeded the supply of handsets during the quarter.
Revenue From Recurring Operations By Division
(U.S. Dollars, in thousands)
Quarter Ended December 31
----------------------------
Percent of
Fourth Total
Percent Percent Quarter Year Ended
of of Year-to-Year December 31
1998 Total 1999 Total Change 1998 1999
-------------------------------------------------------
North America $191,444 43% $216,935 40% 13% 36% 43%
Asia-Pacific 101,514 23% 126,041 23% 24% 32% 21%
Europe, Middle
East and
Africa 80,530 18% 120,969 23% 50% 17% 21%
Latin
America 72,568 16% 73,642 14% 1% 15% 15%
---------------------------- ----------
Total $446,056 100% $537,587 100% 21% 100% 100%
---------------------------- ----------
---------------------------- ----------
Revenue From Recurring Operations By Service Line
(U.S. Dollars, in thousands)
Quarter Ended December 31
----------------------------
Percent of
Fourth Total
Percent Percent Quarter Year Ended
of of Year-to-Year December 31
1998 Total 1999 Total Change 1998 1999
-------------------------------------------------------
Sales of
wireless
handsets $356,585 80% $383,728 72% 8% 80% 73%
Sales of
wireless
accessories 50,683 11% 81,962 15% 62% 10% 15%
Integrated
logistics
services 38,788 9% 71,897 13% 85% 10% 12%
---------------------------- ----------
Total $446,056 100% $537,587 100% 21% 100% 100%
---------------------------- ----------
---------------------------- ----------
Gross Margin. The gross margins in recurring operations for the quarters ended December 31, 1999 and 1998 were 8.3%, and gross margins were 8.0% and 9.1% for the years ended December 31, 1999 and 1998, respectively. Gross margins were lower in 1999 due primarily to increased costs of revenue, generally arising from the addition of infrastructure to serve logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. customers who have recently engaged the Company. In the fourth quarter of 1999, these costs were partially offset by higher average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. on handsets which were supported by the product shortages and by the shift in revenue mix to higher margin accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. sales and integrated logistics services. Selling, General and Administrative Expenses. Selling, general and administrative expenses incurred in recurring operations during the fourth quarter of 1999 were $25,473,000 (4.7% of revenue), an increase of 40% from $18,254,000 (4.1% of revenue) in the fourth quarter of 1998. Selling, general and administrative expenses in the fourth quarter of 1999 were virtually flat with the third quarter of 1999 expenses of $25,465,000, or 5.5% of revenue, due primarily to cost reduction measures implemented by the Company earlier in 1999 as part of the Plan. For the year ended December 31, 1999, selling, general and administrative expenses were $95,549,000, an increase of 64% from the prior year. The increases are due primarily to increased levels of business activity and increased costs of serving current and anticipated integrated logistics services customers. Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. . Operating margins (income from operations, as a percent of revenue) from recurring operations for the fourth quarters ended December 31, 1999 and 1998 were 3.6% and 4.2%, respectively. Operating margins for the years ended December 31, 1999 and 1998 were 2.3% and 4.6%, respectively. The decrease in operating margins resulted primarily from the increase in selling, general and administrative expenses as a percent of revenue and, for the year, from the decrease in gross margins. Operating income for the quarters ended December 31, 1999 and 1998, was $19,344,000 and $18,937,000, respectively, and for the 1999 and 1998 annual periods, operating income was $39,465,000 and $60,819,000, respectively. Net Income From Recurring Operations. Net income from recurring operations for the fourth quarter of 1999 was $10,310,000 compared to $11,465,000 in the fourth quarter of 1998. For the years ended December 31, 1999 and 1998, net income from recurring operations was $16,793,000 and $35,848,000, respectively. These changes were due primarily to the factors discussed above in the analyses of revenue, gross margin and selling, general and administrative expenses. In addition, the effective tax rates were 38% and 30% for the quarters ended December 31, 1999 and 1998, respectively, and 39% and 30% for the years ended December 31, 1999 and 1998, respectively. Changes in the effective tax rates are due generally to the amount and geographic dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. . Net income per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share from recurring operations was $0.18 for the fourth quarter of 1999 compared to net income per diluted share of $0.21 for the same period in the prior year, and $0.31 and $0.67 for the years ended December 31, 1999 and 1998, respectively. Net income per diluted share for the fourth quarter of 1999 is calculated assuming the conversion of the convertible notes into 7,261,420 shares of common stock, and after adjusting net income for the after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. interest expense on the notes of $1,140,000. This adjustment is made only in periods in which an assumed conversion would be dilutive to consolidated per-share earnings. In the first quarter of 2000, the Company is consolidating four locations in Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. into a single, new facility designed specifically for the Company and its processes. This will result in higher costs for the first quarter of 2000 due to moving costs, the disposal of assets that will not be used in the new facility, and the potential sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. of existing facilities. The amount of these first quarter costs is not yet determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. . Balance Sheet. As of December 31, 1999, days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying was approximately 35 days, an improvement from days sales outstanding of approximately 44 days at December 31, 1998. During the fourth quarter of 1999, annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. inventory turns were 14 times, an improvement from 11 turns during the fourth quarter of 1998, due in part to product shortages in the industry. Average days costs in accounts payable were 34 days for the fourth quarter of 1999, compared to 27 days for the fourth quarter of 1998. These improvements combined to create a decrease in cash conversion cycle days to 27 days from 50 days in the fourth quarter of 1998 and from 35 days in the third quarter of 1999. Operating Cash Flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . Cash flow provided by operating activities in the fourth quarter of 1999 was approximately $35 million, bringing the 1999 total to $95 million of cash flow provided by operating activities. In 1998, the Company generated $30 million of cash from operating activities in the fourth quarter and used $7 million of cash for the year. The improvements in cash flow were due primarily to the improvements in the Company's cash conversion cycle discussed above. Reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. . Effective in the first quarter of 2000, and applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin to all periods, the Company will reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you certain revenue and cost of revenue amounts related to its services supporting prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. wireless telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. . The Company manages and
distributes prepaid recharge re·charge tr.v. re·charged, re·charg·ing, re·charg·es To charge again, especially to reenergize a storage battery. re cards for various network operators. Due to the limited product risk assumed by the Company in most of these transactions, the Company believes it is preferable to treat these transactions as services rather than product sales based, in part, on clarifications made in recently-issued accounting literature. As such, a reclassification will be made to record the net margin on these transactions as revenue, rather than the gross amount of the transactions. The reclassification, which reduces revenue and costs of revenue by the same amount, has no impact on gross profit, selling, general and administrative expenses, operating income, net income or earnings per share. The amount of the reclassification will be $20,077,000 and $8,432,000 for the quarters ended December 31, 1999 and 1998, respectively, and $63,044,000 and $55,346,000 for the years ended December 31, 1999 and 1998, respectively. For this earnings release, revenue and cost of revenue amounts have not been reclassified, but reported on a basis consistent with prior financial statements for comparative purposes. NON-RECURRING OPERATIONS The following table and discussion relate to certain operations in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan and the United Kingdom and two joint operations A general term to describe military actions conducted by joint forces or by Service forces in relationships (e.g., support, coordinating authority) which, of themselves, do not create joint forces. in China, all of which have been terminated or eliminated.
(U.S. Dollars, in thousands Quarter Ended Year Ended
except per share data) December 31 December 31
------------------------------------------
1998 1999 1998 1999
------------------------------------------
Revenue $ 63,648 $ 8,219 $ 319,420 $ 120,643
Cost of revenue 58,261 8,247 297,273 118,453
------------------------------------------
Gross profit (loss) 5,387 (28) 22,147 2,190
Selling, general and
administrative expenses 3,259 1,408 14,080 13,973
------------------------------------------
Operating income (loss) 2,128 (1,436) 8,067 (11,783)
Interest expense 365 150 2,864 1,019
------------------------------------------
Income (loss) before income
taxes and minority interest 1,763 (1,586) 5,203 (12,802)
Income taxes 502 (458) 1,477 (1,862)
------------------------------------------
Income (loss) before minority
interest 1,261 (1,128) 3,726 (10,940)
Minority interest (23) -- (151) (53)
------------------------------------------
Net income (loss) $ 1,284 $ (1,128) $ 3,877 $ (10,887)
------------------------------------------
------------------------------------------
Net income (loss) per share
(diluted) $ 0.02 $ (0.02) $ 0.07 $ (0.20)
------------------------------------------
------------------------------------------
Weighted average shares
outstanding (diluted) 53,730 53,460 53,483 53,290
------------------------------------------
------------------------------------------
Revenues from non-recurring operations for the quarter ended December 31, 1999 decreased 87% to $8,219,000 from $63,648,000 in the same period of 1998. Revenues for the year ended December 31, 1999 decreased 62% compared to 1998. These decreases are due primarily to the substantial completion of the Plan and the 1998 discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of trading activities as previously announced. In the fourth quarter of 1999, the non-recurring operations realized a negative gross margin of 0.3% compared to a gross margin of 8.5% in the prior year fourth quarter. Gross margins in the fourth quarter of 1999 were negative due to the sales of inventory in liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy . Gross margins for the years ended December 31, 1999 and 1998 were 1.8% and 6.9%, respectively. The non-recurring operations generated a net loss in the fourth quarter of 1999 of $1,128,000 ($0.02 per diluted share) compared to net income in the fourth quarter of 1998 of $1,284,000 ($0.02 per diluted share). For the year ended December 31, 1999, the net loss was $10,887,000 ($0.20 per diluted share) compared to net income of $3,877,000 ($0.07 per diluted share) for 1998. These results are due to the declining revenues and gross margins within these operations and were exacerbated by increased selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. as percent of revenue. NON-RECURRING CHARGES AND OTHER ITEMS Investment Gain. In the first quarter of 1998, the Company realized a net gain on the sale of marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities, representing income of a non-recurring nature of $572,000 ($343,000 after applicable taxes). Trading and Other Charges. The Company recorded non-recurring charges in the fourth quarter of 1998 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: trading division and the elimination of other distributors from its customer base. These actions resulted in charges that totalled $25.7 million. These charges were comprised of legal and administrative costs, employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs and provisions to adjust certain impaired assets Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair to their estimated fair value. These impaired assets included accounts receivable generated by the sale of products in these former channels and inventories and supplier credits Supplier credit Self-financing of a supplier's operations. Also the agreement of a supplier of goods or services to deferred repayment terms. relating to purchases made specifically for these channels. Accounting Change. In the first quarter of 1999, the Company recorded a cumulative effect adjustment for a change in accounting principle of $14.1 million net of applicable taxes. The change in accounting principle resulted from the required adoption of American Institute of Certified Public Accountants With over 330,525 CPA members (in August 2006), the American Institute of Certified Public Accountants (AICPA) is the largest professional organization of Certified Public Accountants (CPAs) in the United States of America. Statement of Position 98-5, Reporting the Costs of Start-up Start-up The earliest stage of a new business venture. Activities, which requires the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the unamortized portion of certain capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. costs. These costs were previously capitalized in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting then in effect. Non-recurring Charges. In the second and third quarters of 1999, the Company recorded non-recurring charges of approximately $85.6 million resulting from actions taken in accordance with the Plan. Further adjustments to the restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. were made in the fourth quarter and included additional amounts incurred during the quarter and revisions to previous estimates. The net effect of the adjustments reduced the total charge by $711,000. The charges included the write-off of goodwill and investments related to the eliminated or terminated operations, as well as losses on the disposals of fixed and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and cash expenses related to lease and employee termination costs and legal fees (approximately $6 million). These amounts are recorded in the &uot;Restructuring and other charges&uot; line. The non-recurring charges also include the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of inventory (included in the &uot;Cost of revenue&uot; line) and accounts receivable (included in the &uot;Selling, general and administrative expenses&uot; line) to their estimated net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. .
Non-recurring Charges and Other Items
(U.S. Dollars, in thousands except
per share data)
Quarter Ended Year Ended
December 31 December 31
---------------------------------------
1998 1999 1998 1999
---------------------------------------
Revenue $ -- $ -- $ -- $ --
Cost of revenue -- 948 -- 9,569
---------------------------------------
Gross profit (loss) -- (948) -- (9,569)
Selling, general and
administrative expenses -- 136 -- 6,941
Restructuring and other
charges 25,749 (823) 25,749 64,886
---------------------------------------
Operating income (loss) (25,749) (261) (25,749) (81,396)
Net investment gain -- -- 572 --
---------------------------------------
Income (loss) before
income taxes (25,749) (261) (25,177) (81,396)
Income taxes (5,857) (972) (5,628) 3,525
---------------------------------------
Income (loss) before
accounting change (19,892) 711 (19,549) (84,921)
Cumulative effect of
accounting change,
net of tax -- -- -- (14,065)
---------------------------------------
Net income (loss) $(19,892) $ 711 $(19,549) $(98,986)
---------------------------------------
---------------------------------------
Net income (loss) per
share (diluted) $ (0.38) $ 0.01 $ (0.37) $ (1.86)
---------------------------------------
---------------------------------------
Weighted average shares
outstanding (diluted) 52,578 53,460 52,818 53,290
---------------------------------------
---------------------------------------
Brightpoint, Inc. is a leading provider of outsourced services in the global wireless telecommunications and data industry. Brightpoint's innovative services include contract manufacturing, customized packaging, prepaid and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions, inventory management, distribution and other outsourced services. Brightpoint's customers include leading network operators, e-tailers, retailers and wireless equipment manufacturers. Additional information about Brightpoint can be found on its website at www.brightpoint.com or by calling its toll-free Investor Relations Investor relations The process by which the corporation communicates with its investors. Information line at 877-IIR-CELL (877-447-2355). &uot;Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. statements&uot; as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 may be included in this news release. A variety of factors could cause the Company's actual results to differ from the reported results expressed in such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Investors are referred to the Company's Cautionary Statements (Exhibit 99 to the Company's most recent Form 10-Q Form 10-Q See 10-Q. ), which statements are incorporated into this news release by reference.
BRIGHTPOINT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
-------------------- ------------------------
1998 1999 1998 1999
--------- --------- ----------- -----------
Revenue $ 509,704 $ 545,806 $ 1,628,622 $ 1,802,272
Cost of revenue 467,126 501,965 1,487,388 1,674,637
--------- --------- ----------- -----------
Gross profit 42,578 43,841 141,234 127,635
Selling, general and
administrative expenses 21,513 27,017 72,348 116,463
Restructuring and
other charges 25,749 (823) 25,749 64,886
--------- --------- ----------- -----------
Income (loss) from
operations (4,684) 17,647 43,137 (53,714)
Net investment gain -- -- 572 --
Interest expense 2,923 2,929 12,472 13,113
--------- --------- ----------- -----------
Income (loss) before
income taxes, minority
interest and accounting
change (7,607) 14,718 31,237 (66,827)
Income taxes (441) 4,865 11,212 12,281
--------- --------- ----------- -----------
Income (loss) before
minority interest and
accounting change (7,166) 9,853 20,025 (79,108)
Minority interest (23) (40) (151) (93)
--------- --------- ----------- -----------
Income (loss) before
accounting change (7,143) 9,893 20,176 (79,015)
Cumulative effect of
accounting change,
net of tax -- -- -- (14,065)
--------- --------- ----------- -----------
Net income (loss) $ (7,143) $ 9,893 $ 20,176 $ (93,080)
--------- --------- ----------- -----------
--------- --------- ----------- -----------
Basic per share:
Income (loss) before
accounting change $ (0.14) $ 0.19 $ 0.38 $ (1.48)
Cumulative effect of
accounting change,
net of tax -- -- -- (0.27)
--------- --------- ----------- -----------
Net income (loss) $ (0.14) $ 0.19 $ 0.38 $ (1.75)
--------- --------- ----------- -----------
--------- --------- ----------- -----------
Diluted per share:
Income (loss) before
accounting change $ (0.14) $ 0.18 $ 0.38 $ (1.48)
Cumulative effect of
accounting change,
net of tax -- -- -- (0.27)
--------- --------- ----------- -----------
Net income (loss) $ (0.14) $ 0.18 $ 0.38 $ (1.75)
--------- --------- ----------- -----------
--------- --------- ----------- -----------
Weighted average common
shares outstanding:
Basic 52,578 53,460 52,818 53,290
--------- --------- ----------- -----------
--------- --------- ----------- -----------
Diluted 52,578 62,708 53,483 53,290
--------- --------- ----------- -----------
--------- --------- ----------- -----------
BRIGHTPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
December 31
---------------------
1998 1999
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 49,528 $ 85,261
Accounts receivable (less
allowance for doubtful
accounts of $6,045 in 1998
and $6,220 in 1999) 278,947 239,307
Inventories 156,333 140,673
Other current assets 64,417 39,678
-------- --------
Total current assets 549,225 504,919
Property and equipment 48,270 36,273
Goodwill and other intangibles 83,467 71,456
Other assets 33,488 11,210
-------- --------
Total assets $714,450 $623,858
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $188,176 $236,781
-------- --------
Total current liabilities 188,176 236,781
Long-term debt:
Line of credit 109,020 46,022
Convertible notes 177,686 184,864
-------- --------
Total long-term debt 286,706 230,886
Stockholders' equity 239,568 156,191
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Total liabilities and stockholders' equity $714,450 $623,858
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