Brightstar Corp. Reports Full Fiscal 2012 Financial Results
Brightstar Corp. Reports Full Fiscal 2012 Financial Results
Realizes Record Revenue and Earnings
MIAMI--(BUSINESS WIRE)-- Brightstar Corp., the world's largest specialized wireless distributor, and leader in wireless services, today announced strong 2012 full year results including record revenue and earnings.
"Our Company reported its best annual financial performance posting record high revenue and earnings," said Marcelo Claure, Chairman and CEO of Brightstar Corp. "2012 represented a historic year for our Company as we realized solid returns on our key strategic initiative to diversify from providing primarily distribution and supply chain services to offering a full suite of services and solutions across our various geographies."
"I am excited about our compelling services offering as it positions us well to manage all aspects of the device lifecycle, enabling us to optimize the wireless value chain for our customers. Going forward, I am confident that we have the right foundation to continue our momentum as we maintain our disciplined approach to profitably growing our business," he concluded.
Brightstar conducts business in various regions including: U.S./Canada; Latin America, Asia Pacific, Middle East and Africa ("APAC/MEA"), and Europe. The Company's service offerings include value-added distribution, supply chain solutions, handset protection and insurance services, buy-back and trade-in solutions, multi-channel retail solutions and financial services.
Full year 2012 highlights include:
Record revenue and profitability:
- Consolidated revenue increased 11.4 percent from approximately $5.7 billion in 2011 to $6.3 billion in 2012, outpacing the industry's growth
- Gross margin improved 40 basis points from 8.4 percent in 2011 to 8.8 percent in 2012 driven by a favorable mix towards higher margin services
- Adjusted EBITDA (non-GAAP) grew 6.9 percent from $196 million in 2011 to $209 million in 2012
- At December 31, 2012, the Company had approximately $902 million in available liquidity (cash and available unused Bank Credit Lines)
- Improved net debt to EBITDA ratio from 1.8x in 2011 to 1.7x in 2012
- Increased long-term capital base by exercising the option to increase the Revolving Credit Agreement, increasing revolving credit from $500 million in 2011 to $600 million in 2012
Brightstar won significant new contracts in 2012 and in the first quarter of 2013. Additionally, the Company closed two key select acquisitions aimed at expanding and enhancing its global service offerings. A select number of these wins include:
- Executed two contracts with Cricket Communications, Inc., a leading provider of innovative and value-driven wireless services to approximately 5.9 million customers. Closed an exclusive 4PL supply chain service contract and a contract that offers for sale Brightstar's device protection program to its subscribers across 35 states.
- A strategic sourcing and integrated supply chain services agreement with four of Verizon Wireless' largest dealers, including Moorehead Communications (dba as TCC), Go Wireless, A Wireless and Diamond Wireless to distribute over two million devices across approximately 1,500 points of sale.
- Selected by Best Buy Inc., to manage the retailer's entire inventory of returned mobile devices in the U.S. Additionally, Best Buy will leverage Brightstar's global distribution channels to improve device resale values.
- Closed an exclusive buy-back and trade-in contract with Softbank Corp., the third largest mobile phone operator in Japan. Softbank is in the process of completing a transaction whereby they are expected to acquire 70% of fully-diluted Sprint Nextel Corp., shares.
- A strategic partnership with Target Corp., to provide support as it transforms and invests in its wireless and connected device category, Target Mobile.
- Acquired U.K.-based Mobile Phone Xchange (MPX), a leading device buy-back and trade-in business. The acquisition allows Brightstar to offer mobile operators and retailers a fully-integrated, scalable technology platform that helps drive bottom line revenues, reduce churn, and reduce acquisition and retention costs by allowing both retailers and consumers to realize the value of used mobile devices. MPX provides buy-back solutions to a leading European operator and to more than 450 retail outlets in Europe.
- Acquired San Francisco, Calif.-based LetsTalk.com, Inc. ("LetsTalk") (dba as Consensus), a leading provider of mobile device activation and e-commerce solutions. The acquisition allows Brightstar to offer LetsTalk's customizable .com and activation solutions to its more than 100,000 manufacturer, operator, retail, and enterprise customers in over 100 countries.
Brightstar is the world's largest specialized wireless distributor and a leading global services company, serving mobile device manufacturers, wireless operators and retailers, with a local presence on six continents. Brightstar's industry-leading services include value-added distribution, supply chain solutions, handset protection and insurance services, buy-back and trade-in solutions, multi-channel retail solutions and financial services. Annual revenues were $6.3 billion for the period ended December 31, 2012. The company is ranked #58 on the Forbes 2012 List of America's Largest Private Companies. Brightstar is also the largest Hispanic-owned business in the United States. For more information, please visit http://www.brightstarcorp.com.
Safe Harbor Statement:
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to risks and uncertainties. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
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