Bright Horizons Family Solutions Reports Fourth Quarter and FY2003 Results
BOSTON--(BUSINESS WIRE)--Feb. 12, 2004--Bright Horizons Family Solutions, Inc. (Nasdaq: BFAM) today announced financial results for the fourth quarter and full year ended December 31, 2003.
Earnings per diluted share of $0.39 in the quarter ended December 31, 2003 increased 30% from $0.30 per diluted share for the same 2002 quarter. Revenue for the current quarter increased 16% to $125.2 million from $107.7 million for the quarter ended December 31, 2002. Net income for the fourth quarter ended December 31, 2003 increased 37% to $5.3 million from $3.9 million in the fourth quarter of 2002.
Earnings per diluted share of $1.50 for the year ended December 31, 2003 increased 27% from $1.18 per diluted share in 2002. Revenue for the full year increased 16% to $472.8 million from $407.5 million in 2002. Net income in 2003 increased 31% to $20.0 million from $15.3 million in the prior year.
"It was another strong year for Bright Horizons, and we are very pleased with the results," commented David Lissy, Chief Executive Officer. "During 2003 we added 60 new centers in partnership with some of the world's finest employers, including Microsoft, Toyota Motor Manufacturing, AstraZeneca, the Massachusetts Institute of Technology, Bristol-Myers Squibb, Hospital Corporation of America (HCA) and the LPGA. We also deepened our commitment to elementary education and expanded our leadership in back-up child care this past year." As announced previously, this past quarter the Company completed the acquisition of Resources in Active Learning, under which it will manage the high-quality network of Marin Day Schools in Northern California. Bright Horizons ended the year with 509 early care and education centers under operation in the US, Europe and Canada.
"This year also marked an exciting milestone in the growth of Bright Horizons with the opening of our 500th center in San Antonio, Texas, " added Lissy. "This center is the eighth for the Citigroup family of companies, which opened their first center with us in 1994. The commitment of employers like Citibank and our more than 400 other partners, to improve productivity by helping employees better integrate the challenges of work and life has been the driving force behind our growth over the years. While we are proud of how we have grown, we are reminded each day that our ultimate success is judged by our ability to provide quality care and service -- one child, one family, and one client at a time."
"We are also gratified by two other objective measures of our performance in 2003," added President and Chief Operating Officer Mary Ann Tocio. "First is the re-affirmation of the success of our work with children and families as indicated by the 98.8% satisfaction score in our recent parent survey. Second is the confirmation from our own employees that they are proud to work for Bright Horizons, as we were once again named one of the "100 Best Companies to Work For" by FORTUNE magazine. This marks the fifth year Bright Horizons has been named to this prestigious list, an accomplishment of which we are extremely proud."
Bright Horizons Family Solutions will host an investor conference call today at 4:30 pm ET. The public is invited to listen to the conference call by dialing 973-582-2706. Replays of the entire call will be available through Friday, February 27, 2004 at 973-341-3080, PIN# 4408818. 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 500 early care and education centers in the United States, Europe and Canada. Bright Horizons serves more than 400 clients, including more than 80 FORTUNE 500 companies and 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 1) to 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, 2002.
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
-------------------------------------
12/31/2003 12/31/2002
------------------ ------------------
Revenue $125,217 100.0% $107,717 100.0%
Cost of services 105,901 84.6% 91,877 85.3%
----------- ------ ----------- ------
Gross profit 19,316 15.4% 15,840 14.7%
Selling, general and
administrative expenses 9,644 7.7% 8,952 8.3%
Amortization 266 0.2% 92 0.1%
----------- ------ ----------- ------
Income from operations 9,406 7.5% 6,796 6.3%
Net interest (expense) income (20) 0.0% (12) 0.0%
----------- ------ ----------- ------
Income before income taxes 9,386 7.5% 6,784 6.3%
Income tax provision (4,072) -3.3% (2,891) -2.7%
----------- ------ ----------- ------
Net income $5,314 4.2% $3,893 3.6%
=========== ====== =========== ======
Per share data:
---------------
Net income per share - basic $0.41 $0.31
=========== ===========
Weighted average number of
common shares outstanding 13,043 12,429
=========== ===========
Net income per share - diluted $0.39 $0.30
=========== ===========
Weighted average number of
common and common equivalent shares 13,699 13,002
=========== ===========
Supplemental Information:
-------------------------
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)(a) $12,429 $9,552
Reconciliation of net income to EBITDA:
Net income, as reported $5,314 $3,893
Add back income tax provision 4,072 2,891
Less net interest expense/income 20 12
----------- -----------
Income from operations 9,406 6,796
Add back depreciation 2,757 2,664
Add back amortization 266 92
----------- -----------
EBITDA $12,429 $9,552
(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)
Twelve months ended
-------------------------------------
12/31/2003 12/31/2002
------------------ ------------------
Revenue $472,756 100.0% $407,532 100.0%
Cost of services 400,409 84.7% 347,640 85.3%
----------- ------ ----------- ------
Gross profit 72,347 15.3% 59,892 14.7%
Selling, general and
administrative expenses 37,216 7.9% 33,266 8.2%
Amortization 548 0.1% 377 0.1%
----------- ------ ----------- ------
Income from operations 34,583 7.3% 26,249 6.4%
Net interest income (expense) 62 0.0% 24 0.0%
----------- ------ ----------- ------
Income before income taxes 34,645 7.3% 26,273 6.4%
Income tax provision (14,631) -3.1% (10,954) -2.6%
----------- ------ ----------- ------
Net income $20,014 4.2% $15,319 3.8%
=========== ====== =========== ======
Per share data:
---------------
Net income per share - basic $1.57 $1.24
=========== ===========
Weighted average number of
common shares outstanding 12,737 12,383
=========== ===========
Net income per share -
diluted $1.50 $1.18
=========== ===========
Weighted average number of
common and common equivalent
shares 13,373 13,025
=========== ===========
Supplemental Information:
-------------------------
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)(a) $45,610 $36,009
Reconciliation of net income to EBITDA:
Net income, as reported $20,014 $15,319
Add back income tax
provision 14,631 10,954
Less net interest
income/expense (62) (24)
----------- -----------
Income from operations 34,583 26,249
Add back depreciation 10,479 9,383
Add back amortization 548 377
----------- -----------
EBITDA $45,610 $36,009
(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, Inc.
Investors:
Elizabeth Boland, 617-673-8000
or
Media:
Ilene Hoffer, 617-673-8000
SOURCE: Bright Horizons Family Solutions, Inc.