Bright Horizons Family Solutions Reports Third Quarter 2004 Financial Results
BOSTON--(BUSINESS WIRE)--Oct. 26, 2004--Bright Horizons Family Solutions, Inc. (Nasdaq: BFAM) today announced financial results for the third quarter ended September 30, 2004.
Earnings per diluted share of $0.49 in the quarter ended September 30, 2004 increased 32% from $0.37 per diluted share for the quarter ended September 30, 2003. Revenue for the third quarter increased 18% to $139.0 million from $118.1 million for the same quarter last year. Net income for the third quarter of 2004 increased 34% to $6.8 million from $5.0 million in the third quarter of 2003.
Earnings per diluted share of $1.42 for the nine months ended September 30, 2004 increased 28% from $1.11 per diluted share for the nine months ended September 30, 2003. Revenue for the first nine months of 2004 increased 17% to $407.1 million from $347.5 million for the same period last year. Net income for the first nine months of 2004 increased 34% to $19.8 million from $14.7 million in the first nine months of 2003.
Bright Horizons added 31 new centers this quarter to its network of early education and family centers in the U.S., UK, Ireland and Canada. New additions this quarter included Symbol Technology in New York, Virginia Mason Medical Center in Seattle, the sixth center for USAA in Phoenix, the second center for Cambridge University in England, and the national network of family centers for UAW-Ford. The Company closed one center in the third quarter and, as of September 30, 2004, operated 555 early care and family centers with the capacity to serve more than 61,500 children and families.
"Our strong performance again this quarter is a direct result of our ability to consistently provide high quality and innovative solutions while successfully managing the day-to-day operations at our network of centers in 39 states and 4 countries," said David Lissy, Chief Executive Officer of Bright Horizons. "We are truly pleased with these results, and are proud of the hard work and dedication of our entire family of employees - it is their efforts and contributions that allow us to deliver on our mission to help children, families, and employers work together to be their very best."
"We are very proud of our 53 clients who were recently recognized by Working Mother magazine among the 2004 "100 Best Companies for Working Mothers", including 9 of the top 10 companies," continued Lissy. This annual recognition highlights leading employers who have demonstrated a significant commitment to providing workplaces that embrace working mothers, who as a group have been the single fastest growing segment of the American workforce since 1980. "These outstanding employers recognize that providing quality work-site child care and other programs that help employees better integrate the challenges of work and life are key to their business success," added Lissy.
Bright Horizons Family Solutions will host an investor conference call today at 4:30 pm EDT. The public is invited to listen to the conference call by dialing 713-481-0086. Replays of the entire call will be available through Friday, November 12, 2004 at 973-341-3080, PIN# 5270306. The conference call will also be webcast and can be accessed through the Investor Relations section of the Bright Horizons Web site, www.brighthorizons.com. A copy of this press release is also available on the Web site.
Bright Horizons Family Solutions is the world's leading provider of employer-sponsored child care, early education and work/life consulting services, managing more than 550 early care and family centers in the United States, the United Kingdom, Ireland and Canada. Bright Horizons serves more than 400 clients, including more than 80 FORTUNE 500 companies and more than half of the "100 Best Companies for Working Mothers," as recognized by Working Mother magazine. Bright Horizons is one of FORTUNE magazine's "100 Best Companies to Work for in America."
This press release contains forward-looking statements, which involve a number of risks and uncertainties. Bright Horizons Family Solutions' actual results may vary significantly from the results anticipated in these forward-looking statements as a result of certain factors. These include the ability of the Company to 1) execute contracts relating to new commitments, 2) to enroll families in new as well as existing centers, and 3) to open new centers for clients who control construction, and the impact of government tax and fiscal policies on employers considering work-site child care, as well as other factors that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's Annual Report on Form 10-K for the year ended December 31, 2003.
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
-----------------------------------
9/30/2004 9/30/2003
----------------- -----------------
Revenue $138,954 100.0% $118,085 100.0%
Cost of services 116,025 83.5% 100,178 84.8%
---------- ------ -----------------
Gross profit 22,929 16.5% 17,907 15.2%
Selling, general and
administrative expenses 10,991 7.9% 9,122 7.7%
Amortization 354 0.3% 67 0.1%
---------- ------ -----------------
Income from operations 11,584 8.3% 8,718 7.4%
Net interest income (expense) 72 0.1% (33) 0.0%
---------- ------ -----------------
Income before income taxes 11,656 8.4% 8,685 7.4%
Income tax provision (4,877) -3.5% (3,640) -3.1%
---------- ------ -----------------
Net income $6,779 4.9% $5,045 4.3%
========== ====== =================
Per share data:
---------------
Net income per share - basic $0.51 $0.39
========== ==========
Weighted average number of common
shares outstanding 13,300 12,839
========== ==========
Net income per share - diluted $0.49 $0.37
========== ==========
Weighted average number of common
and common equivalent shares 13,941 13,524
========== ==========
Supplemental Information:
-------------------------
Earnings before interest, taxes,
depreciation and amortization
(EBITDA)(a) $14,737 $11,485
Reconciliation of net income to
EBITDA:
Net income, as reported $6,779 $5,045
Add back income tax provision 4,877 3,640
Less net interest income
(expense) (72) 33
---------- ----------
Income from operations 11,584 8,718
Add back depreciation 2,799 2,700
Add back amortization 354 67
---------- ----------
EBITDA $14,737 $11,485
(a) EBITDA is used as a financial performance indicator within the
child care industry and is presented for informational purposes only.
EBITDA is not a financial measure under generally accepted accounting
principles and may be subject to varying methods of calculation and
may not be comparable to other similarly titled measures by other
companies.
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Nine months ended
-----------------------------------
9/30/2004 9/30/2003
----------------- -----------------
Revenue $407,101 100.0% $347,539 100.0%
Cost of services 340,230 83.6% 294,508 84.7%
---------- ------ ---------- ------
Gross profit 66,871 16.4% 53,031 15.3%
Selling, general and
administrative expenses 32,270 7.9% 27,572 7.9%
Amortization 798 0.2% 282 0.1%
---------- ------ ---------- ------
Income from operations 33,803 8.3% 25,177 7.3%
Net interest income 167 0.0% 82 0.0%
---------- ------ ---------- ------
Income before income taxes 33,970 8.3% 25,259 7.3%
Income tax provision (14,210) -3.4% (10,559) -3.1%
---------- ------ ---------- ------
Net income $19,760 4.9% $14,700 4.2%
========== ====== ========== ======
Per share data:
---------------
Net income per share - basic $1.50 $1.16
========== ==========
Weighted average number of common
shares outstanding 13,214 12,631
========== ==========
Net income per share - diluted $1.42 $1.11
========== ==========
Weighted average number of common
and common equivalent shares 13,879 13,261
========== ==========
Supplemental Information:
-------------------------
Earnings before interest, taxes,
depreciation and amortization
(EBITDA)(a) $42,898 $33,181
Reconciliation of net income to
EBITDA:
Net income, as reported $19,760 $14,700
Add back income tax provision 14,210 10,559
Less net interest income (167) (82)
---------- ----------
Income from operations 33,803 25,177
Add back depreciation 8,297 7,722
Add back amortization 798 282
---------- ----------
EBITDA $42,898 $33,181
(a) EBITDA is used as a financial performance indicator within the
child care industry and is presented for informational purposes only.
EBITDA is not a financial measure under generally accepted accounting
principles and may be subject to varying methods of calculation and
may not be comparable to other similarly titled measures by other
companies.
CONTACT: Bright Horizons Family Solutions
Investor Contact:
Elizabeth Boland, 617-673-8000
or
Media Contact:
Ilene Hoffer, 617-673-8000
SOURCE: Bright Horizons Family Solutions