Brightpoint reports first quarter financial results.INDIANAPOLIS--(BUSINESS WIRE)--April 22, 1997-- First quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 76% to $199,169,000 vs. $112,960,000 in prior year First quarter net income increased 119% to $5,416,000 vs. $2,477,000 (pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma ) in prior year First quarter net income per share increased 92% to $0.23 vs. $0.12 (pro forma) in prior year 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) reported its financial results for the first quarter ended March 31, 1997. Net sales for the first quarter of 1997 increased 76 percent to $199,169,000 as compared to $112,960,000 for the first quarter of 1996. Net income of $5,416,000, or $0.23 per share, for the first quarter of 1997 increased 119 percent from $2,477,000 (pro forma), or $0.12 per share, for the same period of 1996. Excluding the impact of the net investment gain and related income taxes, net income and net income per share for the first quarter of 1997 would have been $4,568,000 and $0.20, respectively. Consistent with pooling-of-interests accounting treatment, all financial information reflects the combined financial results of Brightpoint, Inc. and Allied Communications, Inc. and certain affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. (Allied), pursuant to their June June: see month. 1996 merger. Net Sales. In the first quarter of 1997, net sales were derived 43 percent from the Company's Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). (APAC APAC Australian Partnership for Advanced Computing APAC Agricultural Policy Analysis Center APAC Asia and Pacific APAC Asian Pacific American Coalition APAC Adapted Physical Activity Council (American Alliance for Health) ) division, 35 percent from the North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. division, 19 percent from the Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ,
Middle East and Africa (EMA (1) (Enterprise Management Architecture) An earlier strategic plan from Digital for integrating network, system and application management. It provided the operating environment for managing a multi-vendor network. ) division and 3 percent from the Latin
America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. division. Sales for the first quarter of 1996 were derived 10
percent from APAC, 69 percent from North America, 3 percent from EMA and
18 percent from Latin America.
Sales in the APAC division continued to accelerate as the Company furthered its efforts to penetrate this large, attractive market. The Company's North America and EMA divisions also reported solid results. Sales in the Latin America division decreased as the Company continues to reduce its sales to other distributors. The Latin America market has historically been covered by the Company through a network of other distributors. 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: net sales for the 1997 quarter were generated from the sale of wireless handsets (91 percent of net sales), the sale of wireless accessories (7 percent) and fees generated from the provision of value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: logistics services (2 percent). Value-Added Logistics Services. Brightpoint provides logistics services to wireless carriers and wireless handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. and accessories manufacturers. These services consist of inventory procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and management, fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. , programming, light assembly, kitting and packaging, and various other services. These functions assist the carriers and manufacturers in developing efficient processes and channels for their products and services. Although not a large percentage of net sales, these services contribute significantly to gross profit 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. . During the first quarter of 1997, the Company was selected by MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Corporation and Aerial aerial: see antenna, in electronics. Communications, Inc. to provide value-added logistics services to assist each of them in marketing their wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. services. Also in the first quarter, Pocket Communications, Inc. (Pocket) which, in 1996, selected the Company to provide value-added logistics services, filed for protection under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Gross Margin. The gross margin for the first quarters ended March 31, 1997 and 1996 were 8.0 percent and 7.0 percent, respectively. This gross margin expansion was created primarily by an increase in the amount of higher margin value-added logistics services provided by Brightpoint, as well as increased sales in certain markets in which the Company generates higher margins. In addition, the Company continues its disciplined effort to reduce lower margin sales to other distributors in the North and Latin America markets. The execution of this strategy to reduce sales to other distributors resulted in lower first quarter sales and higher gross margins in Latin America. The gross margin in the Latin America market increased by more than 200 basis points in the first quarter of 1997 compared to the same period in 1996. Net Income. Net income for the first quarter of 1997 increased 119 percent from pro forma net income for the first quarter of 1996. Pro forma net income for 1996 provides for income taxes in periods in which Allied was not subject to income taxes. The increase in net income is due primarily to increased sales made at higher gross margins. In addition, the effective income tax rate decreased from 39 percent in the first quarter of 1996 (on a pro forma basis) to 30 percent in the first quarter of 1997, due primarily to increased earnings in tax jurisdictions with lower statutory rates. Net income per share was $0.23 for the first quarter of 1997 (based on 23,187,000 weighted average shares outstanding) compared to $0.12 for the same period a year ago (based on 20,595,000 shares outstanding). During the first quarter of 1997, the Company realized a gain on the sale of an equity investment it had made in Cellstar Corporation. The gain, net of transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , was approximately $8,303,000. In addition, the Company recorded unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on its investments in Pocket and two smaller equity investments totaling approximately $6,871,000. The net investment gain recorded in the first quarter of 1997 was $1,432,000. Excluding the impact of this net investment gain and related income taxes, net income per share for the first quarter of 1997 would have been $0.20. Balance Sheet. During the first quarter of 1997, the number of day's sales outstanding 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 46 days, compared to the average day's sales outstanding for 1996 of approximately 48 days. During the first quarter of 1997, inventory turned approximately 7 times, down slightly from the 1996 average turnover of 8 times. In order to fund working capital needs and potential acquisitions, the Company has obtained a commitment from its banks for a $200 million global credit facility, which will replace the current $125 million facilities. Brightpoint, Inc. distributes wireless communication equipment and related products globally and provides related services including inventory management, fulfillment, packaging and programming. The Company's primary mission is to always be the most efficient market channel for vendors and the low cost/high service provider to customers, thereby striving to be the best total cost provider in terms of price, time and reliability. -0-
BRIGHTPOINT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months
Ended
March 31
1996 1997
________ ________
Net sales $112,960 $199,169
Cost of sales 105,032 183,167
________ ________
Gross profit 7,928 16,002
Selling, general and administrative
expenses 3,677 8,096
________ ________
Income from operations 4,251 7,906
Net investment gain (1) - 1,432
Interest expense 184 1,123
________ ________
Income before income taxes and
minority interest 4,067 8,215
Income taxes (2) 1,590 2,443
________ ________
Income before minority interest 2,477 5,772
Minority interest - 356
________ ________
Net income (1), (2) $ 2,477 $ 5,416
________ ________
________ ________
Net income per share (1), (2) $ 0.12 $ 0.23
________ ________
________ ________
Weighted average common shares
outstanding 20,595 23,187
________ ________
________ ________
(1) Excluding the impact of the net investment gain and related
income taxes, net income and net income per share for the first
quarter of 1997 would have been $4,568,000 and $0.20, respectively.
(2) Income taxes for the first quarter of 1996 are presented on a
pro forma basis to include income taxes for periods during which
Allied was not subject to income taxes.
BRIGHTPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
December 31, March 31,
1996 1997
____________ ___________
ASSETS
Current assets:
Cash and cash equivalents $ 14,255 $ 19,153
Marketable securities 18,000 -
Accounts receivable (less
allowance for doubtful
accounts of $1,115 in 1996
and $1,063 in 1997) 113,119 110,922
Inventories 112,916 105,790
Other current assets 8,422 8,208
____________ ___________
Total current assets 266,712 244,073
Property and equipment 8,207 12,397
Goodwill 15,232 16,975
Other assets 8,894 2,813
____________ ___________
Total assets $ 299,045 $ 276,258
____________ ___________
____________ ___________
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and accrued
expenses $ 123,231 $ 72,300
____________ ___________
Total current liabilities 123,231 72,300
Notes payable 79,564 102,307
Deferred taxes 330 330
Minority interest 938 823
Stockholders' equity:
Preferred stock, $.01 par value:
1,000 shares authorized;
no shares issued or outstanding - -
Common stock, $.01 par value:
25,000 shares authorized;
21,636 and 22,125 issued and
outstanding in 1996
and 1997, respectively 216 221
Additional paid-in capital 73,206 77,196
Retained earnings 17,534 22,950
Unrealized gain on marketable
securities, net of tax 3,929 -
Foreign currency translation
adjustment 97 131
____________ ___________
Total stockholders' equity 94,982 100,498
____________ ___________
Total liabilities and stockholders'
equity $ 299,045 $ 276,258
____________ ___________
____________ ___________
CONTACT: Brightpoint, Inc., 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. Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
317/297-6100 |
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