You are about to review presentations, reports, filings and/or other materials regarding Brightpoint, Inc. (the "Company"), that may contain time-sensitive information. The information contained therein is only current as of the date thereof. The Company expressly disclaims any obligation to review, update or correct these materials after the date thereof. The Company may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.
United States Securities and Exchange Commission ("SEC") filings may be provided by a hyperlink to a third-party SEC filings website, and are subject to the limitations noted above. The Company does not maintain or monitor the third-party SEC filings website and the Company may not provide information directly to this website.
Certain information in this website or in materials accessed in or through this website may contain forward-looking statements regarding future events or the future performance oft the Company. These statements are only predictions and actual events or results may differ materially. Please refer to the documents the Company files, from time to time, with the SEC; including, the Company's most recent Form 10-K and Form 10-Q and the cautionary statements contained in Exhibit 99.1 thereto. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in or implied by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date these statements were made. The Company undertakes no obligation to update any forward-looking statements contained in this website.
BrightPoint's Core Values include: integrity, accomplishment, quality, respect, learning, and community involvement. Please see our values page at www.BrightPoint.com.
Corporate Governance Principles,
Corporate Governance and Nominating Committee Charter,
Audit Committee Charter,
Compensation and Human Resources Committee Charter,
Director Committee Composition,
Code of Business Conduct.
Matthew Thornton - Avian Securities
T. Michael Walkley - Canaccord Genuity
Jim Suva - Citi Investment Research
Deepak Sitaraman - Credit Suisse
Brian Modoff - Deutsche Bank Securities
Howard Smith - First Analysis
Bill Choi - Janney Capital Markets
Peter Misek - Jefferies & Co.
Scott Searle - Merriman Curhan Ford
Ittai Kidron - Oppenheimer & Co.
Greg Burns - Sidoti & Co.
BrightPoint is a global leader in providing device lifecycle services to the wireless industry. We provide customized logistic services including demand planning, procurement, inventory management, software loading, kitting and customized packaging, fulfillment, credit services, receivables management, call center services, activation services, website hosting, e-fulfillment solutions, repair, refurbish and recycle services, reverse logistics, transportation management and other services within the global wireless industry.
Brightpoint has more than 4,000 employees, as well as a significant number of temporary staff, and a global footprint covering more than 35 countries, including 13 Latin American countries through its investment in Intcomex, Inc..
Brightpoint provides inventory and receivables management and/or financing to certain of its customers which are typically Wireless Network Operators or Mobile Virtual Network Operators (MVNOs). These services result in CFR, Funded and Unfunded, which are reflected as assets and liabilities, respectively on our Balance Sheet. Contract financing services are generally provided together with an assortment of Brightpoint's other customized logistic services such as: distribution, channel development, fulfillment, product management and customization and eBusiness solutions. A contract financing service is very similar to a distribution arrangement, except that in a contract financing services arrangement, Brightpoint typically has very limited or no inventory risk and usually has little to no discretion in setting the sales prices for the products handled. Due to the nature of the contract financing services arrangement (limited inventory risk and reduced discretion in setting pricing) accounting principles generally accepted in the United States require that these contract financing services transactions be recorded on a net basis within the Income Statement. We believe we earn a reasonable return commensurate with the risks taken in a contract financing services transaction. In addition, we believe that providing contract financing services differentiates Brightpoint from many of its competitors and helps enhance relationships with its customers.
We have found that our Wireless Network Operator and MVNO customers receive operational and financial benefits from entering into contract financing arrangements with Brightpoint. We believe that our customers achieve efficiencies as well as other benefits from these arrangements and are more effective in accomplishing their mission critical objectives by allowing Brightpoint to provide services such as inventory and receivables management and/or financing. Brightpoint employs experienced and dedicated personnel and has developed industry leading systems and processes which enable us to effectively and efficiently manage these critical functions on behalf of our Wireless Network Operator and/or MVNO customers.
Brightpoint typically negotiates one aggregate fee per unit specific to customer needs and the type of services provided (including contract financing services), which includes an estimated cost of capital related to the anticipated working capital that will be invested when product and/or receivable financing is involved. Brightpoint records the revenue generated from these logistic services (including the contract financing services) at the amount of the net product margin earned or fee per unit billed rather than as the gross amount of the transactions. The logistic services fee or net product margin amounts are reported within our Integrated Logistic Services business line. The cash inflows and outflows associated with any inventory and/or receivables financing (part of the contract financing services offering) are reported as investing activities with the Statement of Cash Flows.
The logistic services fee or net margin is recorded as logistic services revenue, which is reported within cash flow from operations.
The cash inflows and outflows resulting from the inventory and receivables financing services mimic the typical cash flow cycle from our distribution business. However, under a typical contract financing services agreement, accounting principles generally accepted in the United States require the inflow of cash from the recovery of the receivables associated with the shipment of product as well as the outflow of cash from the payable associated with paying for the inventory both be classified as investing activities rather than operating activities. Investing inflows or outflows in the cash flow statement are only the result of fluctuations in cash as a result of the timing difference associated with the collection of contract financing receivables or payments of payables associated with these contract financing arrangements. At the completion of the payment cycle, these cash flows net to zero within the investing section of Brightpoint's cash flow statement.
The following example is for illustrative purposes only and Brightpoint contract financing services may vary from this example.
Brightpoint enters into a contract under which Brightpoint will provide logistic services for ABC Company (ABC). Under the terms of the contract, Brightpoint will manage both the inventory and receivable for ABC Company. On behalf of ABC, we purchase a handset for $1.00 under a contract financing arrangement and then sell that handset to an ABC dealer for $1.00. At the time of purchase of the handset, Brightpoint records an asset and an associated liability in the amount of $1.00. The asset is classified as "contract financing receivable" and the liability as "unfunded portion of contract financing receivable", respectively within Brightpoint's Balance Sheet. We distribute the inventory on behalf of ABC to an ABC dealer. Brightpoint earns $0.05 of fee revenue from ABC for performing this CFR service. We do not record revenue of $1.00, but earn $0.05 in fee revenue from ABC for handling the contract financing transaction. At the same time, Brightpoint records $1.00 of the receivable from the sale as "contract financing receivable" and $0.05 as trade receivables. As part of the contract financing service provided to ABC, Brightpoint performs receivable collection services on behalf of ABC from ABC's dealer. Due to timing, Brightpoint may pay ABC for the inventory before collecting from ABC's dealer and would have an investing outflow of $1.00 followed by an investing inflow of $1.00 and an operating inflow of $0.05 in its Statement of Cash Flows.
BrightPoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint, Inc. in 1995. The company is headquartered in Indianapolis, Indiana.
On April 7, 1994, BrightPoint offered 2,300,000 shares at $6.25 per share (9,356,585 shares at $1.54 per share on a split adjusted basis) through Sands Brothers & Co., Ltd. and associates.
BrightPoint operates in three main regions: the Americas, Asia Pacific, and Europe, Middle East and Africa (EMEA). Within these regions, Brightpoint has operations centers and/or sales offices in Australia, Austria, Belgium, Denmark, Finland, Germany, Hong Kong, India, Malaysia, the Netherlands, New Zealand, Norway, Poland, Portugal, Puerto Rico, Singapore, Slovakia, South Africa, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom and the United States. You can view the specific address of each location on our Contact Us page.
BrightPoint's Q1 2012 earnings release is expected to be issued after the market closes on Thursday, April 26, 2012. The company will host a conference call at approximately 8:00am ET on Friday, April 27, 2012 to discuss the first quarter 2012 financial results.
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