Bright Horizons Family Solutions Reports Third Quarter Financial Results
Earnings per diluted share of $0.29 in the quarter ended September 30, 2002 increased 32% from $0.22 per diluted share for the quarter ended September 30, 2001. Revenues for the current period increased 21% to $105.4 million from $87.2 million for the quarter ended September 30, 2001. Net income for the third quarter ended September 30, 2002 increased 35% to $3.8 million from $2.8 million in the third quarter of 2001.
Earnings per diluted share of $0.88 for the nine months ended September 30, 2002 increased 31% from $0.67 per diluted share for the nine months ended September 30, 2001. Revenues for the first nine months of 2002 increased 18% to $299.8 million from $254.7 million for the same period in 2001. Net income for the nine months increased 34% to $11.4 million from $8.5 million in 2001. In conjunction with the January 1, 2002 adoption of Statement of Financial Accounting Standard No. 142, which resulted in the discontinuance of the amortization of goodwill, earnings per share increased by approximately $0.02 and $0.07 for the quarter and nine months ended September 30, 2002, respectively, compared to the same 2001 periods.
"We are very pleased with our continued strong results this quarter, which included the addition of 11 new centers to our network," said David Lissy, Chief Executive Officer. These include new programs in partnership with Reebok, the Massachusetts Institute of Technology (MIT), JM Family Enterprises and GE Medical Systems, as well as three new centers for the UAW/Ford. We expanded our partnership with JFK Medical Systems in Palm Beach, Florida with the opening of our first employer sponsored charter school, and added our 35th dedicated back-up and school age program with the opening of our second center for PNC Financial in Philadelphia, further building our leadership position in backup child care."
"We also continued our growth abroad with the opening of a center in partnership with Land Rover in Warwick, England and a new center for IBM in Dublin, Ireland," Lissy continued. "We now operate 67 centers in the UK and Ireland and continue to be excited about the opportunity to build on our position as the quality leader in providing workplace child care and other work/life solutions in Europe." The Company also closed five centers, ending the quarter with 462 centers with the capacity to serve approximately 53,500 children.
The Company also announced the results of its annual parent satisfaction survey. "We are very pleased with this year's 98.8% satisfaction rate, which is up from 98.3% last year," added Mary Ann Tocio, President and Chief Operating Officer. The survey went out to families who use Bright Horizons centers around the world, and more than 12,000 families responded to the latest survey. "While we will continue to focus on the areas of improvement suggested by parents who entrust us with their children daily, it is gratifying to know how much the quality of our programs and the dedication of our teachers are valued," remarked Tocio.
Bright Horizons Family Solutions will be hosting an investor conference call today at 4:30 pm EDT. The public is invited to listen to the conference call by dialing 973-582-2703. Replays of the entire call will be available through Friday, November 1, 2002 at 973-341-3080, PIN# 3509665. Visit the Bright Horizons Family Solutions Web site at www.brighthorizons.com.
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 460 child care and early education centers in the United States, Europe, Canada and the Pacific Rim. Bright Horizons serves more than 375 clients, including 84 FORTUNE 500 companies and 54 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, 2001.
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
9/30/02 9/30/01
Revenues $105,385 100.0% $87,173 100.0%
Cost of services 90,459 85.8% 74,746 85.7%
Gross profit 14,926 14.2% 12,427 14.3%
Selling, general and
administrative expenses 8,527 8.1% 7,062 8.1%
Amortization 102 0.1% 542 0.7%
Income from operations 6,297 6.0% 4,823 5.5%
Net interest income (expense) 1 0.0% (7) 0.0%
Income before income taxes 6,298 6.0% 4,816 5.5%
Income tax provision (2,549) -2.4% (2,029) -2.3%
Net income $3,749 3.6% $2,787 3.2%
Per share data:
Net income per share - basic $ 0.30 $ 0.23
Weighted average number
of common shares outstanding 12,421 12,229
Net income per share - diluted $ 0.29 $ 0.22
Weighted average number
of common and common
equivalent shares 13,028 12,813
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Nine months ended
9/30/02 9/30/01
Revenues $299,815 100.0% $254,665 100.0%
Cost of services 255,763 85.3% 217,240 85.3%
Gross profit 44,052 14.7% 37,425 14.7%
Selling, general and
administrative expenses 24,314 8.1% 20,977 8.2%
Amortization 285 0.1% 1,655 0.7%
Income from operations 19,453 6.5% 14,793 5.8%
Net interest income (expense) 36 0.0% (72) 0.0%
Income before income taxes 19,489 6.5% 14,721 5.8%
Income tax provision (8,063) -2.7% (6,181) -2.4%
Net income $11,426 3.8% $8,540 3.4%
Per share data:
Net income per share - basic $0.92 $0.70
Weighted average number
of common shares outstanding 12,368 12,164
Net income per share - diluted $0.88 $0.67
Weighted average number
of common and common
equivalent shares 13,032 12,793
CONTACT: Bright Horizons Family Solutions
Investor Contact
Elizabeth Boland, 617/673-8000
or
Media Contact
Ilene Hoffer, 617/673-8000
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