Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 30, 2019
 
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
(Exact name of Registrant as specified in its charter)
  
 
 
Delaware
 
001-35780
 
80-0188269
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification Number)
200 Talcott Avenue
Watertown, MA
 
02472
(Address of principal executive offices)
 
(Zip code)
Registrant’s telephone number, including area code: (617) 673-8000
Not Applicable
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR§240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
 





Item 2.02
Results of Operations and Financial Condition
On April 30, 2019, Bright Horizons Family Solutions Inc. issued a press release announcing its financial results for the fiscal quarter ended March 31, 2019 and updated certain financial guidance for the full year 2019. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
The information contained in this Item, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for any purpose, and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, regardless of any general incorporation language in any such filing.
Item 9.01
Financial Statements and Exhibits
(d)
Exhibits
99.1 Press Release of Bright Horizons Family Solutions Inc. dated April 30, 2019.
.





SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
Date:
April 30, 2019
By:
/s/ Elizabeth Boland
 
 
 
Elizabeth Boland
 
 
 
Chief Financial Officer





EXHIBIT INDEX
Exhibits
99.1 Press Release of Bright Horizons Family Solutions Inc. dated April 30, 2019.


Exhibit


Exhibit 99.1
Bright Horizons Family Solutions Reports First Quarter of 2019 Financial Results
WATERTOWN, MA - (Business Wire - April 30, 2019) - Bright Horizons Family Solutions® Inc. (NYSE: BFAM), a leading provider of high-quality child care, early education and other services designed to help employers, families and adult learners better address the challenges of work and family life, today announced financial results for the first quarter of 2019 and updated certain financial guidance for the full year 2019.
First Quarter 2019 Highlights (compared to first quarter 2018):
Revenue increased 8% to $502 million
Income from operations increased 14% to $63 million
Net income increased 13% to $42 million and diluted earnings per common share increased 15% to $0.71
Non-GAAP measures
Adjusted income from operations* increased 14% to $63 million
Adjusted EBITDA* increased 13% to $94 million
Adjusted net income* increased 12% to $48 million and diluted adjusted earnings per common share* increased 13% to $0.81
“We are pleased with the strong start to 2019, as we continue to grow each of our service offerings and expand our portfolio of client partners. We are privileged to support families so they can thrive and prosper at work and at home, and to help so many working adults grow and develop in their careers by advancing their education while they work,” said Stephen Kramer, Chief Executive Officer. “We are also thrilled to have been named one of Fortune Magazine’s “100 Best Companies to Work For” for the 18th time. This important recognition helps us continue to recruit and retain dedicated and talented professionals in our field, while demonstrating to our client partners our commitment to common values. Creating a culture where women and men are proud to grow their careers while making a lasting difference in the lives of others is core to our ability to deliver on our mission and achieve excellence.”
First Quarter 2019 Results
Revenue increased $38.1 million, or 8%, in the first quarter of 2019 from the first quarter of 2018 on contributions from new and ramping full service child care centers, average price increases of 3% to 4%, and expanded sales and utilization of our back-up care and educational advisory services.
Income from operations was $62.9 million for the first quarter of 2019, an increase from $55.3 million in the same 2018 period. Increases in revenue and gross profit reflect contributions from enrollment gains in mature and ramping centers, new child care centers, back-up care and educational advisory clients that have increased utilization levels or been added since the first quarter of 2018, efficiencies in service delivery across the expanding customer base, and strong cost management. These gains were partially offset by investments in marketing and technology to support our customer user experience, service delivery and operating efficiency, and costs incurred during the pre-opening and ramp-up phase of newer lease/consortium centers. Net income was $42.0 million for the first quarter of 2019 compared to net income of $37.3 million in the same 2018 period, an increase of $4.7 million, or 13%, attributable to the expanded income from operations. Diluted earnings per common share was $0.71 for the first quarter of 2019 compared to $0.62 in the same 2018 period.
In the first quarter of 2019, adjusted EBITDA increased $10.6 million, or 13%, to $93.8 million, and adjusted income from operations increased $7.7 million, or 14%, to $63.3 million from the first quarter of 2018 due primarily to the expanded gross profit. Adjusted net income increased by $5.2 million, or 12%, to $47.8 million on the expanded income from operations. Diluted adjusted earnings per common share was $0.81 compared to $0.72 in the first quarter of 2018.
As of March 31, 2019, the Company operated 1,079 child care and early education centers with the capacity to serve approximately 120,000 children and their families.




*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are non-GAAP measures. Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, non-cash lease expense, stock-based compensation expense, and transaction costs. Adjusted income from operations represents income from operations before transaction costs. Adjusted net income represents net income determined in accordance with GAAP, adjusted for stock-based compensation expense, amortization expense, transaction costs and the income tax provision (benefit) thereon. Diluted adjusted earnings per common share is a non-GAAP measure, calculated using adjusted net income. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
Balance Sheet and Cash Flow
For the three months ended March 31, 2019, the Company generated approximately $107.0 million of cash from operations compared to $105.8 million for the same 2018 period, and invested $60.6 million in fixed assets, acquisitions, and other investments compared to $29.5 million in the same 2018 period. Net cash used in financing activities totaled $62.3 million in the three months ended March 31, 2019 compared to $79.6 million for the same 2018 period. The Company reported a net increase in cash and cash equivalents of $4.7 million to $20.1 million as of March 31, 2019.
2019 Outlook
As described below, the Company is updating certain financial guidance. For the full year 2019, the Company currently expects:
Revenue growth in 2019 in the range of 8-10%
Net income in the range of $173 million to $176 million and diluted earnings per common share in the range of $2.93 to $2.97
Adjusted net income in the range of $211 million to $214 million and diluted adjusted earnings per common share in the range of $3.58 to $3.64
Diluted weighted average shares of approximately 59 million shares
For a reconciliation of the non-GAAP measures to their most directly comparable GAAP measure, refer to the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
Conference Call
Bright Horizons Family Solutions will host an investor conference call today at 5:00 pm ET.  Interested parties are invited to listen to the conference call by dialing 1-877-407-9039 or, for international callers, 1-201-689-8470, and asking for the Bright Horizons Family Solutions conference call moderated by Chief Executive Officer Stephen Kramer.  Replays of the entire call will be available through May 21, 2019 at 1-844-512-2921 or, for international callers, 1-412-317-6671, conference ID #13685053. A link to the audio webcast of the conference call and a copy of this press release are also available through the Investor Relations section of the Company’s web site, www.brighthorizons.com.
Forward-Looking Statements
This press release includes statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth plan, strategies, our service offerings, our clients, our culture, estimated effective tax rate and tax expense, estimates and impact of equity transactions and excess tax benefits, our investments, and our 2019 financial guidance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, changes in the demand for child care and other dependent care services, including variation in enrollment trends and lower than expected demand from employer sponsor clients; the possibility that acquisitions may disrupt our operations and expose us to additional risk; our ability to pass on our increased costs; our indebtedness and the terms of such indebtedness; our ability to withstand seasonal fluctuations in the demand for our services; our ability to implement our growth strategies successfully; and other risks and uncertainties more fully described in the “Risk Factors” section of our Annual Report on Form 10-K filed February 27, 2019, and other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.




Presentation of Non-GAAP Measures
In addition to the results provided in accordance with U.S. generally accepted accounting principles (“GAAP”) throughout this press release, the Company has provided non-GAAP measurements - adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share - which present operating results on a basis adjusted for certain items.  The Company uses these non-GAAP measures as key performance indicators for the purpose of evaluating performance internally, and in connection with determining incentive compensation for Company management, including executive officers.  Adjusted EBITDA is also used in connection with the determination of certain ratio requirements under our credit agreement. We also believe these non-GAAP measures provide investors with useful information with respect to our historical operations. These non-GAAP measures are not intended to replace, and should not be considered superior to, the presentation of our financial results in accordance with GAAP. The use of the terms adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.  Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are reconciled from the respective measures under GAAP in the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of intangible assets, expenses related to the completion of debt financing transactions, and expenses associated with completed acquisitions as well as tax effects associated with these items. These adjustments to net income and diluted earnings per common share in future periods are generally expected to be similar to the types of charges and costs excluded from adjusted net income and diluted adjusted earnings per common share in prior quarters, although we can provide no assurance as to the timing or magnitude of any such adjustments. The exclusion of these charges and costs in future periods will have an impact on the Company’s adjusted net income and diluted adjusted earnings per common share.
About Bright Horizons Family Solutions Inc.
Bright Horizons is trusted by families around the world to provide care and education for their children. Operating approximately 1,100 child care centers, Bright Horizons cares for approximately 120,000 children annually in the United States, the United Kingdom, the Netherlands, Canada and India. Used by more than 1,100 of the world's best employers across industries, Bright Horizons back-up child and elder care, tuition program management, education advising, and student loan repayment programs support employees through every life and career stage, and help people succeed at work and at home. For more information, go to www.brighthorizons.com.
Contacts:
Investors:
 
Elizabeth Boland
 
 
CFO - Bright Horizons
 
 
eboland@brighthorizons.com
 
 
617-673-8125
 
Kevin Doherty
 
 
MD - Solebury Communications Group
 
 
kdoherty@soleburyir.com
 
 
203-428-3233
Media:
 
Ilene Serpa
 
 
VP - Communications - Bright Horizons
 
 
iserpa@brighthorizons.com
 
 
617-673-8044




BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
(Unaudited)

 
Three Months Ended March 31,
 
2019
%
 
2018
%
Revenue
$
501,758

100.0
 %
 
$
463,657

100.0
 %
Cost of services
374,811

74.7
 %
 
350,113

75.5
 %
Gross profit
126,947

25.3
 %
 
113,544

24.5
 %
Selling, general and administrative expenses
55,875

11.1
 %
 
50,212

10.8
 %
Amortization of intangible assets
8,162

1.6
 %
 
8,048

1.8
 %
Income from operations
62,910

12.6
 %
 
55,284

11.9
 %
Interest expense — net
(11,948
)
(2.4
)%
 
(11,503
)
(2.5
)%
Income before income tax
50,962

10.2
 %
 
43,781

9.4
 %
Income tax expense
(8,920
)
(1.8
)%
 
(6,483
)
(1.4
)%
Net income
$
42,042

8.4
 %
 
$
37,298

8.0
 %
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Common stock — basic
$
0.73

 
 
$
0.64

 
Common stock — diluted
$
0.71

 
 
$
0.62

 
 
 
 
 
 
 
Weighted average number of common shares outstanding:
 
 
 
 
 
Common stock — basic
57,679,041

 
 
58,190,819

 
Common stock — diluted
58,752,384

 
 
59,448,031

 






BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 
March 31, 2019
 
December 31, 2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
20,129

 
$
15,450

Accounts receivable — net
130,298

 
131,178

Prepaid expenses and other current assets
37,208

 
47,263

Total current assets
187,635

 
193,891

Fixed assets — net
603,117

 
597,141

Goodwill
1,381,044

 
1,347,611

Other intangibles — net
322,388

 
323,035

Operating lease right-of-use assets (1)
651,480

 

Other assets
50,872

 
62,628

Total assets
$
3,196,536

 
$
2,524,306

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Current portion of long-term debt
$
10,750

 
$
10,750

Borrowings under revolving credit facility
50,150

 
118,200

Accounts payable and accrued expenses
153,328

 
154,195

Operating lease liabilities (1)
79,617

 

Deferred revenue and other current liabilities
220,411

 
200,640

Total current liabilities
514,256

 
483,785

Long-term debt — net
1,034,664

 
1,036,870

Operating lease liabilities (1)
636,831

 
71,817

Deferred income taxes
75,486

 
71,306

Other long-term liabilities
98,287

 
81,051

Total liabilities
2,359,524

 
1,744,829

Total stockholders’ equity
837,012

 
779,477

Total liabilities and stockholders’ equity
$
3,196,536

 
$
2,524,306

(1)
The Company adopted Accounting Standards Codification No. 842, Leases (ASC 842), effective January 1, 2019. Upon adoption, the Company recognized operating lease right-of-use assets and liabilities for the rights and obligations created by those leases with lease terms longer than twelve months. Lease obligations associated with deferred rent and tenant improvement allowances recorded under the previous guidance were reclassified from other current liabilities and operating lease liabilities to the operating lease right-of-use assets. The Company adopted ASC 842 using the modified retrospective method, electing to use the effective date as the date of initial application. Therefore, comparative information for prior periods has not been adjusted.






BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
Three Months Ended March 31,
 
2019
 
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
42,042

 
$
37,298

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
26,462

 
24,683

Stock-based compensation expense
3,106

 
2,891

Deferred income taxes
3,796

 
(490
)
Other non-cash adjustments — net
1,460

 
724

Changes in assets and liabilities
30,147

 
40,742

  Net cash provided by operating activities
107,013

 
105,848

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of fixed assets — net
(21,061
)
 
(12,767
)
Purchases of investments
(20,011
)
 

Payments and settlements for acquisitions — net of cash acquired
(19,490
)
 
(16,716
)
  Net cash used in investing activities
(60,562
)
 
(29,483
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Revolving credit facility — net
(68,150
)
 
2,300

Principal payments of long-term debt
(2,688
)
 
(2,688
)
Purchase of treasury stock
(60
)
 
(85,725
)
Taxes paid related to the net share settlement of stock options and restricted stock
(2,779
)
 
(3,176
)
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase
11,414

 
12,303

Payments of contingent consideration for acquisitions

 
(2,615
)
  Net cash used in financing activities
(62,263
)
 
(79,601
)
Effect of exchange rates on cash, cash equivalents and restricted cash
548

 
431

  Net increase in cash, cash equivalents and restricted cash
(15,264
)
 
(2,805
)
Cash, cash equivalents and restricted cash — beginning of period
38,478

 
36,570

Cash, cash equivalents and restricted cash — end of period
$
23,214

 
$
33,765







BRIGHT HORIZONS FAMILY SOLUTIONS INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)


 
Full service
center-based
child care
 
Back-up
care
 
Educational
advisory
services
 
Total
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
Revenue
$
418,320

 
$
64,694

 
$
18,744

 
$
501,758

Income from operations
41,530

 
17,117

 
4,263

 
62,910

Adjusted income from operations (1)
41,530

 
17,550

 
4,263

 
63,343

 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
 
 
 
 
 
Revenue
$
392,625

 
$
54,679

 
$
16,353

 
$
463,657

Income from operations
36,911

 
14,125

 
4,248

 
55,284

Adjusted income from operations (2)
37,239

 
14,125

 
4,248

 
55,612

(1)
Adjusted income from operations represents income from operations excluding expenses incurred in connection with completed acquisitions, which have been allocated to the back-up care segment.
(2)
Adjusted income from operations represents income from operations excluding expenses incurred related to a secondary offering, which have been allocated to the full service center-based child care segment.






BRIGHT HORIZONS FAMILY SOLUTIONS INC.
NON-GAAP RECONCILIATIONS
(In thousands, except share data)
(Unaudited)


 
Three Months Ended March 31,
 
2019
 
2018
Net income
$
42,042

 
$
37,298

Interest expense — net
11,948

 
11,503

Income tax expense
8,920

 
6,483

Depreciation
18,300

 
16,635

Amortization of intangible assets (a)
8,162

 
8,048

EBITDA
89,372

 
79,967

Additional Adjustments:
 
 
 
Non-cash operating lease expense (b)
927

 
8

Stock-based compensation expense (c)
3,106

 
2,891

Transaction costs (d)
433


328

Total adjustments
4,466

 
3,227

Adjusted EBITDA
$
93,838

 
$
83,194

 
 
 
 
Income from operations
$
62,910

 
$
55,284

Transaction costs (d)
433

 
328

Adjusted income from operations
$
63,343

 
$
55,612

 
 
 
 
Net income
$
42,042

 
$
37,298

Income tax expense
8,920

 
6,483

Income before income tax
50,962

 
43,781

Stock-based compensation expense (c)
3,106

 
2,891

Amortization of intangible assets (a)
8,162

 
8,048

Transaction costs (d)
433

 
328

Adjusted income before income tax
62,663

 
55,048

Adjusted income tax expense (e)
(14,851
)
 
(12,468
)
Adjusted net income
$
47,812

 
$
42,580

 
 
 
 
Weighted average number of common shares — diluted
58,752,384

 
59,448,031

Diluted adjusted earnings per common share
$
0.81

 
$
0.72







BRIGHT HORIZONS FAMILY SOLUTIONS INC.
NON-GAAP RECONCILIATIONS
(In thousands, except share data)
(Unaudited)


 
Forward Guidance (h)
 
Three Months Ended 
June 30, 2019
 
Year Ended 
December 31, 2019
 
Low
 
High
 
Low
 
High
Net income
$
46,600

 
$
47,200

 
$
173,200

 
$
175,600

Net income allocated to unvested participating shares
(200
)
 
(200
)
 
(800
)
 
(800
)
Income tax expense (f)
15,200

 
15,600

 
51,900

 
52,700

Income before income tax
61,600

 
62,600

 
224,300

 
227,500

Stock-based compensation expense (c)
4,800

 
5,000

 
17,750

 
18,250

Amortization of intangible assets (a)
8,300

 
8,500

 
33,500

 
34,000

Transaction costs (d)

 

 
400

 
400

Adjusted income before income tax
74,700

 
76,100

 
275,950

 
280,150

Tax impact on adjusted income before income tax (g)
(17,700
)
 
(18,000
)
 
(65,300
)
 
(66,300
)
Adjusted net income attributable to common stockholders
$
57,000

 
$
58,100

 
$
210,650

 
$
213,850

 
 
 
 
 
 
 
 
Per common share information:
 
 
 
 
 
 
 
Diluted earnings per common share
$
0.79

 
$
0.80

 
$
2.93

 
$
2.97

Income tax expense (f)
0.26

 
0.27

 
0.88

 
0.90

Income before income tax
1.05

 
1.07

 
3.81

 
3.87

Stock-based compensation expense (c)
0.08

 
0.08

 
0.30

 
0.31

Amortization of intangible assets (a)
0.14

 
0.14

 
0.57

 
0.58

Transaction costs (d)

 

 
0.01

 
0.01

Tax impact on adjusted income before income tax (g)
(0.30
)
 
(0.31
)
 
(1.11
)
 
(1.13
)
Diluted adjusted earnings per common share
$
0.97

 
$
0.98

 
$
3.58

 
$
3.64

(a)
Represents amortization of intangible assets, including approximately $4.7 million in both the three months ended March 31, 2019 and 2018, associated with intangible assets recorded in connection with our going private transaction in May 2008.
(b)
Represents non-cash operating lease expense in accordance with Accounting Standards Codification Topic 842, Leases, in 2019, and Topic 840, Leases, in 2018.
(c)
Represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation.
(d)
Represents transaction costs incurred in connection with completed acquisitions and the March 2018 secondary offering.
(e)
Represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 24% and 23% for 2019 and 2018, respectively. The tax rate for 2019 represents a tax rate of approximately 27% applied to the expected adjusted income before tax for the full year, less the estimated effect of additional excess tax benefits related to equity transactions for the full year 2019, which the Company estimates will be in the range of $7 million to $10 million. However, the timing, volume and tax benefits associated with such future equity activity will affect these estimates and the estimated effective tax rate for the year.
(f)
Represents estimated income tax expense calculated using an effective tax rate of approximately 23% for the year ended December 31, 2019, based on projected income before tax, less the estimated impact of additional excess tax benefits related to equity transactions, which the Company estimates in the range of $7 million to $10 million for the full year in 2019. However, the timing, volume and tax benefits associated with such future equity activity will affect these estimates and the estimated effective tax rate for the year.
(g)
Represents estimated tax on adjusted income before income tax using an effective tax rate of approximately 24%.
(h)
Forward guidance amounts are estimated based on a number of assumptions and actual results could differ materially from the estimates provided herein.