US handset distributor Brightpoint saw profits rocket during the fourth quarter of last year thanks to a good sales performance across its global operation, and also efficient “management” of its balance sheet.
Brightpoint’s EBITDA was $31.9 million (£20.48 million), in the period, up 46 per cent on the previous quarter ($17.1 million) and 56 per cent on the same period in 2008 ($13.8 million).
Brightpoint chief financial officer and treasurer Tony Boor said: “I am particularly proud of the success we had with respect to managing our balance sheet during these turbulent economic times. Through the team’s diligent execution, we were able to generate $164 million of operating cash flow for the year.
“This improvement in liquidity allowed us to pay down debt and to capitalize on strategic opportunities, including the purchase of our primary North America distribution facility and the repurchase of over three million shares of Brightpoint common stock.”
Brightpoint sold 83.5 million units in the year ended December 31, 2009, an increase of one per cent from 2008 and 11 per cent on the previous quarter. Group revenue was up four per cent compared to Q3 but down six per cent year-on-year to $905.6 million (£581.28 million).
Also, Brightpoint confirmed the purchase of its primary distribution facility in North America for $31 million as well as the repurchase of three million shares of Brightpoint stock from NC Telecom Holding for $15.5 million.
Brightpoint chairman and chief executive Robert Laikin said: “I am proud of the Brightpoint team’s performance in many areas despite a challenging global economic climate. I am especially proud of the fact that we were able to grow unit volumes while the overall industry sell-in substantially declined during 2009.
“Brightpoint remains well positioned to take advantage of wireless industry trends and we currently anticipate our unit growth rate to exceed the top end of analyst expectations for the wireless industry for 2010.”