Bright Horizons Family Solutions Reports Second Quarter of 2020 Financial Results
Second Quarter 2020 Highlights (compared to second quarter 2019):
-
Revenue of
$294 million (decrease of 44%) -
Income from operations of
$8 million (decrease of 89%) -
Net income of
$0.4 million and diluted earnings per common share of$0.01 (decreases of 99%)
Non-GAAP measures
-
Adjusted income from operations* of
$27 million (decrease of 64%) -
Adjusted EBITDA* of
$60 million (decrease of 43%) -
Adjusted net income* of
$26 million and diluted adjusted earnings per common share* of$0.44 (decreases of 55%)
“While this past quarter has been one of the most challenging in the Company’s history, I couldn’t be more proud of the Bright Horizons team for rising to the challenges presented by the COVID-19 pandemic,” said
“This pandemic has refocused the nation’s attention on how crucial childcare is to the country’s economic recovery and stability,” Kramer continued. “Now more than ever, our centers provide vital care and education for young children and are a critical support to working parents juggling work and home life in new ways. At the same time, we continue to provide reliable and effective solutions for our employer partners who rely on us to enable their workforces to be productive. Our experience over the last several months operating our child care centers during the pandemic has extended our expertise in safe and healthy practices and uniquely positions us to capitalize on the long-term opportunity that lies ahead.”
COVID-19 Response Update
As we previously disclosed, the COVID-19 pandemic has substantially disrupted Bright Horizons’ global operations resulting in the temporary closure of a significant number of our child care centers. In mid-March, in response to the growing challenges presented by COVID-19, we began the temporary closure of a significant portion of our centers, while continuing to operate critical health care client and “hub” centers to provide care and support services to the children whose parents work on the front lines of the response. As countries and local jurisdictions have begun to lift certain restrictions and re-open, we have commenced a phased re-opening of our temporarily closed centers. As of
Back-up Care and Educational Advisory: Our other service offerings — Back-up Care and Educational Advisory — have remained fully operational for our clients and their employees. In response to the acute need for child care support during this pandemic, we have expanded Back-Up Care services to both current and new clients, supporting the needs of families affected by other child care and/or school closures, primarily through in-home and reimbursed self-sourced care. This pivot provided great value to our clients and their employees and, as a result, supported the economics of our business in the second quarter while a significant portion of our child care centers remained temporarily closed. As businesses and families adapt to new conditions in the coming months, we expect our Back-up Care services to return to primarily in-center and in-home service delivery at more normalized levels going forward.
Balance Sheet and Liquidity
Bright Horizons has a strong balance sheet, with
Second Quarter 2020 Results
Revenue decreased
Income from operations of
In the second quarter of 2020, adjusted EBITDA* decreased
As of
*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, the excess of lease expense over cash lease expense (prior to fiscal 2020), stock-based compensation expense, impairment costs including costs incurred due to the impact of COVID-19, transaction costs, center closing costs and duplicative corporate office costs. Adjusted income from operations represents income from operations before impairment costs, transaction costs, center closing costs and duplicative corporate office costs. Adjusted net income represents net income determined in accordance with GAAP, adjusted for stock-based compensation expense, amortization expense, impairment costs, transaction costs, center closing costs, duplicative corporate office 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.”
2020 Outlook
At this time, the duration and scope of the ongoing business disruption, including the pace of re-opening and ramping temporarily closed centers, cannot be predicted, and is dependent on many interdependent variables and decisions by government authorities and our client partners. As previously disclosed, the negative financial impact to our results and future financial or operational performance, including our annual performance for 2020, cannot be reasonably estimated. Therefore, we do not expect to provide financial guidance for fiscal 2020.
We will continue to work with our local teams on the operational decisions and prudently managing our spending to support the current operations, while we continue to re-ramp enrollment and re-open the remainder of our business. While these are unprecedented circumstances, our value proposition to families, staff and clients remains consistent and strong — to provide high-quality child care and early education, dependent care, and workforce education services. These challenging times highlight our crisis management abilities, our critical role in the business continuity plans of our client partners, our leadership in developing and implementing enhanced health and safety protocols, and the value that our unique service offering provides to the families and clients we serve. We remain confident in our business model, the strength of our client partnerships, the strength of our balance sheet and liquidity position, and in our ability to respond to changing market conditions.
Conference Call
Forward-Looking Statements
This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, operating expectations, effects of COVID-19 on our operations, the continued operation of currently open centers, our phased re-opening plans for temporarily closed center locations, permanent center closures, timing when a majority of our centers will re-open, timing to re-ramp enrollment, impact of government mandates, cost-saving initiatives, future opportunities in the industry, growth in our back-up care segment, future financial performance, estimated effective tax rate and tax expense and our investments. 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, prolonged disruptions to our operations as a result of required school and business closures and stay-at-home mandates in response to the COVID-19 pandemic, including current conditions and future developments in the public health arena; the impact of COVID-19 on the global economy; the availability or lack of government supports; changes in the demand for child care, dependent care and other workplace solutions, including variation in enrollment trends and lower than expected demand from employer sponsor clients as well as variations in return to work protocols as the economy re-opens; the possibility that acquisitions may disrupt our operations and expose us to additional risk; increased costs resulting from recommended or mandated enhanced health and safety protocols and physical distancing; 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
Presentation of Non-GAAP Measures
In addition to the results provided in accordance with
About
Bright Horizons® is a leading global provider of high-quality child care and early education, back-up care, and workplace education services. For more than 30 years, we have partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. We operate approximately 1,100 child care centers in
|
|
|||||||||||||
|
|
Three Months Ended |
||||||||||||
|
|
2020 |
|
% |
2019 |
|
% |
|||||||
|
Revenue |
$ |
293,772 |
|
|
100.0 |
% |
|
$ |
528,060 |
|
|
100.0 |
% |
|
Cost of services |
228,536 |
|
|
77.8 |
% |
|
388,439 |
|
|
73.6 |
% |
||
|
Gross profit |
65,236 |
|
|
22.2 |
% |
|
139,621 |
|
|
26.4 |
% |
||
|
Selling, general and administrative expenses |
49,247 |
|
|
16.8 |
% |
|
56,491 |
|
|
10.7 |
% |
||
|
Amortization of intangible assets |
7,875 |
|
|
2.6 |
% |
|
8,297 |
|
|
1.6 |
% |
||
|
Income from operations |
8,114 |
|
|
2.8 |
% |
|
74,833 |
|
|
14.1 |
% |
||
|
Interest expense — net |
(9,129 |
) |
|
(3.1 |
)% |
|
(11,723 |
) |
|
(2.2 |
)% |
||
|
Income (loss) before income tax |
(1,015 |
) |
|
(0.3 |
)% |
|
63,110 |
|
|
11.9 |
% |
||
|
Income tax benefit (expense) |
1,374 |
|
|
0.4 |
% |
|
(13,783 |
) |
|
(2.6 |
)% |
||
|
Net income |
$ |
359 |
|
|
0.1 |
% |
|
$ |
49,327 |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Earnings per common share: |
|
|
|
|
|
|
|
||||||
|
Common stock — basic |
$ |
0.01 |
|
|
|
|
$ |
0.85 |
|
|
|
||
|
Common stock — diluted |
$ |
0.01 |
|
|
|
|
$ |
0.83 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||
|
Common stock — basic |
59,631,428 |
|
|
|
|
57,847,630 |
|
|
|
||||
|
Common stock — diluted |
60,266,102 |
|
|
|
|
58,939,763 |
|
|
|
||||
|
|
|||||||||||||
|
|
Six Months Ended |
||||||||||||
|
|
2020 |
|
% |
|
2019 |
|
% |
||||||
|
Revenue |
$ |
800,095 |
|
|
100.0 |
% |
|
$ |
1,029,818 |
|
|
100.0 |
% |
|
Cost of services |
626,000 |
|
|
78.2 |
% |
|
763,250 |
|
|
74.1 |
% |
||
|
Gross profit |
174,095 |
|
|
21.8 |
% |
|
266,568 |
|
|
25.9 |
% |
||
|
Selling, general and administrative expenses |
106,616 |
|
|
13.3 |
% |
|
112,366 |
|
|
10.9 |
% |
||
|
Amortization of intangible assets |
16,084 |
|
|
2.1 |
% |
|
16,459 |
|
|
1.6 |
% |
||
|
Income from operations |
51,395 |
|
|
6.4 |
% |
|
137,743 |
|
|
13.4 |
% |
||
|
Interest expense — net |
(19,335 |
) |
|
(2.4 |
)% |
|
(23,671 |
) |
|
(2.3 |
)% |
||
|
Income before income tax |
32,060 |
|
|
4.0 |
% |
|
114,072 |
|
|
11.1 |
% |
||
|
Income tax expense |
(969 |
) |
|
(0.1 |
)% |
|
(22,703 |
) |
|
(2.2 |
)% |
||
|
Net income |
$ |
31,091 |
|
|
3.9 |
% |
|
$ |
91,369 |
|
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Earnings per common share: |
|
|
|
|
|
|
|
||||||
|
Common stock — basic |
$ |
0.53 |
|
|
|
|
$ |
1.57 |
|
|
|
||
|
Common stock — diluted |
$ |
0.52 |
|
|
|
|
$ |
1.55 |
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||
|
Common stock — basic |
58,781,169 |
|
|
|
|
57,763,335 |
|
|
|
||||
|
Common stock — diluted |
59,572,444 |
|
|
|
|
58,846,073 |
|
|
|
||||
|
|
|||||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
270,442 |
|
|
$ |
27,872 |
|
|
Accounts receivable — net |
221,532 |
|
|
148,855 |
|
||
|
Prepaid expenses and other current assets |
84,947 |
|
|
52,161 |
|
||
|
Total current assets |
576,921 |
|
|
228,888 |
|
||
|
Fixed assets — net |
596,947 |
|
|
636,153 |
|
||
|
|
1,391,650 |
|
|
1,412,873 |
|
||
|
Other intangible assets — net |
287,489 |
|
|
304,673 |
|
||
|
Operating lease right-of-use assets |
713,687 |
|
|
700,956 |
|
||
|
Other assets |
44,902 |
|
|
46,877 |
|
||
|
Total assets |
$ |
3,611,596 |
|
|
$ |
3,330,420 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Current portion of long-term debt |
$ |
10,750 |
|
|
$ |
10,750 |
|
|
Accounts payable and accrued expenses |
144,316 |
|
|
167,059 |
|
||
|
Current portion of operating lease liabilities |
92,457 |
|
|
83,123 |
|
||
|
Deferred revenue and other current liabilities |
244,024 |
|
|
222,358 |
|
||
|
Total current liabilities |
491,547 |
|
|
483,290 |
|
||
|
Long-term debt — net |
1,024,801 |
|
|
1,028,049 |
|
||
|
Operating lease liabilities |
724,375 |
|
|
685,910 |
|
||
|
Deferred income taxes |
54,856 |
|
|
58,940 |
|
||
|
Other long-term liabilities |
117,742 |
|
|
102,963 |
|
||
|
Total liabilities |
2,413,321 |
|
|
2,359,152 |
|
||
|
Total stockholders’ equity |
1,198,275 |
|
|
971,268 |
|
||
|
Total liabilities and stockholders’ equity |
$ |
3,611,596 |
|
|
$ |
3,330,420 |
|
|
|
|||||||
|
|
Six Months Ended |
||||||
|
|
2020 |
|
2019 |
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
|
Net income |
$ |
31,091 |
|
|
$ |
91,369 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
55,880 |
|
|
53,347 |
|
||
|
Impairment losses |
18,985 |
|
|
— |
|
||
|
Stock-based compensation expense |
9,438 |
|
|
7,618 |
|
||
|
Deferred income taxes |
(2,783 |
) |
|
3,641 |
|
||
|
Other non-cash adjustments — net |
(1,187 |
) |
|
(294 |
) |
||
|
Changes in assets and liabilities |
(60,164 |
) |
|
34,930 |
|
||
|
Net cash provided by operating activities |
51,260 |
|
|
190,611 |
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
|
Purchases of fixed assets — net |
(25,022 |
) |
|
(45,015 |
) |
||
|
Payments and settlements for acquisitions — net of cash acquired |
(4,394 |
) |
|
(25,860 |
) |
||
|
Proceeds from the maturity of debt securities and sale of other investments |
7,247 |
|
|
— |
|
||
|
Purchases of debt securities and other investments |
(6,106 |
) |
|
(20,024 |
) |
||
|
Net cash used in investing activities |
(28,275 |
) |
|
(90,899 |
) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
|
Proceeds from stock issuance — net of issuance costs |
249,937 |
|
|
— |
|
||
|
Revolving credit facility — net |
— |
|
|
(117,858 |
) |
||
|
Principal payments of long-term debt |
(5,375 |
) |
|
(5,375 |
) |
||
|
Payments for debt issuance costs |
(2,818 |
) |
|
— |
|
||
|
Purchase of treasury stock |
(32,658 |
) |
|
(690 |
) |
||
|
Taxes paid related to the net share settlement of stock options and restricted stock |
(7,715 |
) |
|
(5,540 |
) |
||
|
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase |
21,187 |
|
|
17,085 |
|
||
|
Payments of contingent consideration for acquisitions |
(1,088 |
) |
|
— |
|
||
|
Net cash provided by (used in) financing activities |
221,470 |
|
|
(112,378 |
) |
||
|
Effect of exchange rates on cash, cash equivalents and restricted cash |
(908 |
) |
|
414 |
|
||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
243,547 |
|
|
(12,252 |
) |
||
|
Cash, cash equivalents and restricted cash — beginning of period |
31,192 |
|
|
38,478 |
|
||
|
Cash, cash equivalents and restricted cash — end of period |
$ |
274,739 |
|
|
$ |
26,226 |
|
|
|
|||||||||||||||
|
|
Full service
|
|
Back-up care |
|
Educational
|
|
Total |
||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||
|
Revenue |
$ |
137,306 |
|
|
$ |
135,904 |
|
|
$ |
20,562 |
|
|
$ |
293,772 |
|
|
Income (loss) from operations |
(71,842 |
) |
|
75,121 |
|
|
4,835 |
|
|
8,114 |
|
||||
|
Adjusted income (loss) from operations (1) |
(54,873 |
) |
|
77,249 |
|
|
4,835 |
|
|
27,211 |
|
||||
|
As a percentage of revenue |
(40 |
)% |
|
57 |
% |
|
24 |
% |
|
9 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
|
|
|
|
|
|
||||||||
|
Revenue |
$ |
438,580 |
|
|
$ |
70,049 |
|
|
$ |
19,431 |
|
|
$ |
528,060 |
|
|
Income from operations |
51,827 |
|
|
18,434 |
|
|
4,572 |
|
|
74,833 |
|
||||
|
Adjusted income from operations |
51,827 |
|
|
18,434 |
|
|
4,572 |
|
|
74,833 |
|
||||
|
As a percentage of revenue |
12 |
% |
|
26 |
% |
|
24 |
% |
|
14 |
% |
||||
|
(1) |
|
Adjusted income (loss) from operations for the full service center-based child care segment represents income from operations excluding impairment costs incurred due to the impact of COVID-19 on our operations of |
|
|
Full service
|
|
Back-up care |
|
Educational
|
|
Total |
||||||||
|
Six Months Ended |
|
|
|
|
|
|
|
||||||||
|
Revenue |
$ |
548,697 |
|
|
$ |
210,071 |
|
|
$ |
41,327 |
|
|
$ |
800,095 |
|
|
Income (loss) from operations |
(55,095 |
) |
|
97,360 |
|
|
9,130 |
|
|
51,395 |
|
||||
|
Adjusted income (loss) from operations (1) |
(32,453 |
) |
|
99,488 |
|
|
9,130 |
|
|
76,165 |
|
||||
|
As a percentage of revenue |
(6 |
)% |
|
47 |
% |
|
22 |
% |
|
10 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended |
|
|
|
|
|
|
|
||||||||
|
Revenue |
$ |
856,900 |
|
|
$ |
134,743 |
|
|
$ |
38,175 |
|
|
$ |
1,029,818 |
|
|
Income from operations |
93,357 |
|
|
35,551 |
|
|
8,835 |
|
|
137,743 |
|
||||
|
Adjusted income from operations (2) |
93,357 |
|
|
35,984 |
|
|
8,835 |
|
|
138,176 |
|
||||
|
As a percentage of revenue |
11 |
% |
|
27 |
% |
|
23 |
% |
|
13 |
% |
||||
|
(1) |
|
Adjusted income (loss) from operations for the full service center-based child care segment represents income from operations excluding impairment costs incurred due to the impact of COVID-19 on our operations of |
|
(2) |
|
Adjusted income from operations represents income from operations excluding expenses incurred in connection with completed acquisitions of |
|
|
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
Net income |
$ |
359 |
|
|
$ |
49,327 |
|
|
$ |
31,091 |
|
|
$ |
91,369 |
|
|
Interest expense — net |
9,129 |
|
|
11,723 |
|
|
19,335 |
|
|
23,671 |
|
||||
|
Income tax expense (benefit) |
(1,374 |
) |
|
13,783 |
|
|
969 |
|
|
22,703 |
|
||||
|
Depreciation |
19,784 |
|
|
18,588 |
|
|
39,796 |
|
|
36,888 |
|
||||
|
Amortization of intangible assets (a) |
7,875 |
|
|
8,297 |
|
|
16,084 |
|
|
16,459 |
|
||||
|
EBITDA |
35,773 |
|
|
101,718 |
|
|
107,275 |
|
|
191,090 |
|
||||
|
As a percentage of revenue |
12.2 |
% |
|
19.3 |
% |
|
13.4 |
% |
|
18.6 |
% |
||||
|
Additional Adjustments: |
|
|
|
|
|
|
|
||||||||
|
COVID-19 related costs (b) |
18,436 |
|
|
— |
|
|
23,406 |
|
|
— |
|
||||
|
Stock-based compensation expense (c) |
5,155 |
|
|
4,512 |
|
|
9,438 |
|
|
7,618 |
|
||||
|
Other costs (d) |
661 |
|
|
— |
|
|
1,364 |
|
|
433 |
|
||||
|
Non-cash operating lease expense (e) |
— |
|
|
(345 |
) |
|
— |
|
|
582 |
|
||||
|
Total adjustments |
24,252 |
|
|
4,167 |
|
|
34,208 |
|
|
8,633 |
|
||||
|
Adjusted EBITDA |
$ |
60,025 |
|
|
$ |
105,885 |
|
|
$ |
141,483 |
|
|
$ |
199,723 |
|
|
As a percentage of revenue |
20.4 |
% |
|
20.1 |
% |
|
17.7 |
% |
|
19.4 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Income from operations |
$ |
8,114 |
|
|
$ |
74,833 |
|
|
$ |
51,395 |
|
|
$ |
137,743 |
|
|
As a percentage of revenue |
2.8 |
% |
|
14.1 |
% |
|
6.4 |
% |
|
13.4 |
% |
||||
|
COVID-19 related costs (b) |
18,436 |
|
|
— |
|
|
23,406 |
|
|
— |
|
||||
|
Other costs (d) |
661 |
|
|
— |
|
|
1,364 |
|
|
433 |
|
||||
|
Adjusted income from operations |
$ |
27,211 |
|
|
$ |
74,833 |
|
|
$ |
76,165 |
|
|
$ |
138,176 |
|
|
As a percentage of revenue |
9.3 |
% |
|
14.1 |
% |
|
9.5 |
% |
|
13.4 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
359 |
|
|
$ |
49,327 |
|
|
$ |
31,091 |
|
|
$ |
91,369 |
|
|
Income tax expense (benefit) |
(1,374 |
) |
|
13,783 |
|
|
969 |
|
|
22,703 |
|
||||
|
Income (loss) before income tax |
(1,015 |
) |
|
63,110 |
|
|
32,060 |
|
|
114,072 |
|
||||
|
Amortization of intangible assets (a) |
7,875 |
|
|
8,297 |
|
|
16,084 |
|
|
16,459 |
|
||||
|
COVID-19 related costs (b) |
18,436 |
|
|
— |
|
|
23,406 |
|
|
— |
|
||||
|
Stock-based compensation expense (c) |
5,155 |
|
|
4,512 |
|
|
9,438 |
|
|
7,618 |
|
||||
|
Other costs (d) |
661 |
|
|
— |
|
|
1,364 |
|
|
433 |
|
||||
|
Adjusted income before income tax |
31,112 |
|
|
75,919 |
|
|
82,352 |
|
|
138,582 |
|
||||
|
Adjusted income tax expense (f) |
(4,667 |
) |
|
(17,461 |
) |
|
(12,261 |
) |
|
(32,312 |
) |
||||
|
Adjusted net income |
$ |
26,445 |
|
|
$ |
58,458 |
|
|
$ |
70,091 |
|
|
$ |
106,270 |
|
|
As a percentage of revenue |
9.0 |
% |
|
11.1 |
% |
|
8.8 |
% |
|
10.3 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding — diluted |
60,266,102 |
|
|
58,939,763 |
|
|
59,572,444 |
|
|
58,846,073 |
|
||||
|
Diluted adjusted earnings per common share |
$ |
0.44 |
|
|
$ |
0.99 |
|
|
$ |
1.18 |
|
|
$ |
1.81 |
|
|
(a) |
|
Represents amortization of intangible assets, including |
|
(b) |
|
COVID-19 related costs represent impairment costs for long-lived assets and investments, and costs associated with the closure of centers incurred as a result of the impact of COVID-19 on our operations. For the three months ended |
|
(c) |
|
Represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation. |
|
(d) |
|
Other costs in the three and six months ended |
|
(e) |
|
Represents the excess of lease expense over cash lease expense (for periods prior to fiscal 2020). |
|
(f) |
|
Represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 15% and 23% for 2020 and 2019, respectively. The tax rate for 2020 represents a tax rate of approximately 30% applied to the expected adjusted income before income tax, less the estimated effect of excess tax benefits related to equity transactions. However, the jurisdictional mix of the expected adjusted income before income tax for the full year, and the timing and volume of the tax benefits associated with future equity activity will affect these estimates and the estimated effective tax rate for the year. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200805006026/en/
Investors:
Chief Financial Officer - Bright Horizons
eboland@brighthorizons.com
617-673-8125
Senior Director of Investor Relations - Bright Horizons
michael.flanagan@brighthorizons.com
617-673-8720
Media:
Vice President - Communications - Bright Horizons
iserpa@brighthorizons.com
617-673-8044
Source: