Brightstar Corp. Reports Record 2011 Revenue and Earnings

MIAMI, April 25, 2012 /PRNewswire/ -- Brightstar Corp., the world's largest specialized wireless distributor and a global leader in services and solutions for the wireless industry today reported strong 2011 full year results including record revenue and earnings.

"Our Company has just recorded its best annual financial performance in its 15 year history with full year 2011 record earnings and profits," said Marcelo Claure, Chairman and CEO of Brightstar Corp. "We expanded both our global reach and our service offerings, anticipating the ever-evolving needs of our customers. I am pleased with our overall performance and believe we are well-positioned to continue to execute on our growth strategies that will enhance our market leadership position in 2012 and beyond," he added.

Full year 2011 highlights include:

• Increased revenue and profitability:
  • Revenue increased 24% from approximately $4.6 billion in 2010 to approximately $5.7 billion in 2011
  • Adjusted gross margin (non-GAAP) improved 38 basis points from 8.07% in 2010 to 8.45% in 2011
  • Adjusted EBITDA (non-GAAP) grew 46% from $133.8 million in 2010 to $195.7 million in 2011
• Enhanced liquidity:
  • Total capitalization increased 6% from approximately $1.0 billion in 2010 to approximately $1.1 billion in 2011
    • At December 31, 2011, the Company had approximately $711 million in available liquidity (cash and available unused Bank Credit Lines)
  • Improved net debt to EBITDA ratio 14% from 2.1x in 2010 to 1.8x in 2011
  • Increased long-term capital base by issuing an add-on $100 million of Senior Notes, increasing its total Senior Notes outstanding from $250 million in 2010 to $350 million in 2011
• Won significant new contracts in 2011 and in the first quarter of 2012, showcasing its growing services and solutions capabilities. A select number of these wins include:
  • Value-Added Distribution Services:
    • A  contract with HTC, expanding  its distribution reach to 28 sub-Saharan countries, including Kenya, Nigeria, Tanzania, Zambia, Uganda, Ghana and others.
    • The significant ramp-up of Brightstar's Tierra del Fuego, Argentina manufacturing facility, adding new vendors and expanding with existing ones.
  • Supply Chain Optimization Services:
    • With newly executed supply chain contracts and the renewal of existing ones, the company now operates over 65 supply chain optimization contracts.
    • A multi-service agreement with MTN South Africa that will provide device management, supply chain and inventory management services.
    • A new exclusive 4PL supply chain services contract with Cricket Communications, Inc., a leading provider of innovative and value-driven wireless services to approximately 5.9 million customers.
    • A premier master reseller agreement with StarHub, Singapore's fully integrated info-communications service provider, to bundle mobility products and services with StarHub's mobile and fixed broadband services to support the needs of Small and Medium-size Business (SMB) customers.
    • 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.
  • Multi-Channel Retail Services:
    • A number of contracts with some of the world's largest retailers to provide retail management outsourcing, virtual inventory and online ".com" services.
  • Buy-back, Trade-In, Reverse Logistics Services:
    • Multiple contracts with leading OEMs, network operators and wireless retailers to collect, refurbish, and resell wireless handsets where possible, or recycle in an environmentally friendly manner those handsets that are not resalable.
    • A strategic alliance with GENCO ATC, the leader in product lifecycle logistics, expanding its test, repair and remanufacture services.
  • Cell Phone and Wireless Device Protection and Replacement Services:
    • With the 2011 acquisition and successful integration of eSecuritel, a leading provider of cell phone and wireless device protection and replacement programs, the company expects to grow its subscriber base three-fold in 2012.
    • A new eSecuritel contract with Cellular Sales, the leading Verizon Wireless premium retailer, offering its device protection program across 470 locations.
    • A new contract with Cricket Communications, Inc. that will offer for sale eSecuritel's device protection program to its subscribers across 35 states.

"2011 was a record performance year for Brightstar, with our best-ever revenue and profitability, with $1.1 billion in capitalization, increased long-term capital base through the issuance of bonds and significant business wins in our core distribution business and expanding service offerings," said Claure. "This evolution of our business requires laser-focus on the flawless execution of our contracts with new and existing customers.  It is in that spirit, that we have elected not to pursue an initial public offering at this time so that we may successfully integrate and manage our growth on a sustainable basis.  Our primary focus must be on building out our service offerings to fulfill our goal of becoming the world's premier services and solutions provider to the wireless industry.  We may revisit an initial public offering at a time when it aligns with our future needs and objectives," Claure added.

"I want to thank our dedicated employees, customers and stakeholders for an incredible 2011 and I look forward to another strong performance in 2012 as we continue to innovate our services platform and serve our customers," concluded Claure.

About Brightstar Corp.
Brightstar is the world's largest specialized wireless distributor and a leading global services company focused on enhancing the performance and profitability of the key participants in the wireless device value chain. The company supports over 80,000 points of sale worldwide with operations in 51 countries and territories and provides a comprehensive range of more than 100 customized services for value-added distribution, supply chain optimization, multi-channel retail, buy-back, trade-in and reverse logistics, and cell phone and wireless device protection and replacement programs. Brightstar's services help customers manage the growing complexity of the wireless device value chain and enable them to increase product availability, expand their channel reach and drive supply chain efficiencies by getting the right products to the right place at the right time for the best value. 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 uncertainties and risks. 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.

We have provided as-adjusted non-GAAP financial measures as we believe adjusted gross profits, adjusted EBITDA and Adjusted net income are useful in evaluating our operating performance compared to that of other companies because the calculation adjusts for items which we believe are not indicative of operating performance. We use these measures to evaluate the operating performance of our business and aid in period-to-period comparability. We also use these measures for planning and forecasting, measuring results against our forecast, and in certain cases, for bonus targets for certain employees. Using several measures to evaluate the business allows us and investors to assess our performance and ultimately monitor our ability to generate returns for our stockholders.

We believe Adjusted gross profit, Adjusted EBITDA and Adjusted net income are also useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies. Our Adjusted gross profit, Adjusted EBITDA and Adjusted net income may not provide information that is directly comparable to that provided by other companies, as other companies may calculate these measures differently.

Adjusted gross profit, Adjusted EBITDA and Adjusted net income are not measures of financial performance under GAAP and should not be considered as an alternative to gross profit, operating income (loss) or net income (loss) or as an indication of operating performance derived in accordance with GAAP. Adjusted gross profit, Adjusted EBITDA and Adjusted net income have limitations as analytical tools. These measures can exclude a number of items, some of which are cash expenditures and some of which may be recurring. Investors should consider non-GAAP measures in addition to, not as a substitute for, or as superior to measures of financial performance prepared in accordance with U.S. GAAP.

(In $ thousands)

(In $ thousands)

(In $ thousands)

SOURCE Brightstar Corp.