Bright Horizons Family Solutions Reports Second Quarter 2005 Financial Results
BOSTON--(BUSINESS WIRE)--July 26, 2005--Bright Horizons Family Solutions, Inc. (Nasdaq: BFAM) today announced financial results for the second quarter ended June 30, 2005.
Earnings per diluted share of $0.33 in the quarter ended June 30, 2005 increased 32% from $0.25 per diluted share for the quarter ended June 30, 2004. Revenue for the second quarter of 2005 increased 15% to $157.0 million from $136.8 million for the same quarter last year. Net income for the second quarter of 2005 increased 38% to $9.5 million from $6.9 million in the second quarter of 2004.
Earnings per diluted share of $0.63 for the six months ended June 30, 2005 increased 34% from $0.47 per diluted share for the six months ended June 30, 2004. Revenue for the first six months of 2005 increased 15% to $307.8 million from $268.1 million for the same period last year. Net income for the first six months of 2005 increased 37% to $17.8 million from $13.0 million in the first six months of 2004.
"We are pleased to report strong results again this quarter," said David Lissy, Chief Executive Officer. "I am proud of the way we have continued to grow and strengthen our organization as we deliver on our mission to provide high-quality early education and important work/life supports for the children, families, and clients we serve."
During the second quarter, Bright Horizons expanded its network to include new centers in the US for National City Bank, Huntington Bank, The Venetian Resort Hotel, Sioux Valley Hospital and for the Health Protection Agency in the UK. The Company closed five centers and at the end of the second quarter operated 577 early care and education centers, with the capacity to serve 64,240 children and families.
"During this past quarter we announced an agreement to acquire ChildrenFirst, a leading provider of employer-sponsored back-up child care," said Lissy. "We have long respected ChildrenFirst for the quality of their centers and the strong value proposition that they have offered to employers around back-up child care. This combination will provide a strong platform and an enhanced level of service for our current and prospective client partners and their working families." The Company expects to close the transaction late in the third quarter of 2005.
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 713-481-0095. Replays of the entire call will be available through Friday, August 5, 2005 at 973-341-3080, PIN# 6252946. 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 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 577 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."
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) enroll families in new as well as existing centers, and 3) open new centers and complete acquisitions under negotiated terms, as well as other factors that are discussed in detail in the Company's filings with the Securities and Exchange Commission.
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
-----------------------------------
6/30/2005 6/30/2004
----------------- -----------------
Revenue $157,017 100.0% $136,800 100.0%
Cost of services 128,279 81.7% 113,799 83.2%
---------- ------ ---------- ------
Gross profit 28,738 18.3% 23,001 16.8%
Selling, general and
administrative expenses 12,763 8.1% 10,986 8.0%
Amortization 384 0.3% 246 0.2%
---------- ------ ---------- ------
Income from operations 15,591 9.9% 11,769 8.6%
Net interest income 370 0.3% 60 0.0%
---------- ------ ---------- ------
Income before income taxes 15,961 10.2% 11,829 8.6%
Income tax provision (6,500) -4.2% (4,951) -3.6%
---------- ------ ---------- ------
Net income $9,461 6.0% $6,878 5.0%
========== ====== ========== ======
Per share data:
---------------------------------
Net income per share - basic $0.35 $0.26
========== ==========
Weighted average number of common
shares outstanding 27,057 26,470
========== ==========
Net income per share - diluted $0.33 $0.25
========== ==========
Weighted average number of common
and common equivalent shares 28,365 27,758
========== ==========
Supplemental Information:
---------------------------------
Earnings before interest, taxes, $19,045 $14,819
depreciation and amortization
(EBITDA)(a)
Reconciliation of net income to
EBITDA:
Net income, as reported $9,461 $6,878
Add back income tax provision 6,500 4,951
Less net interest income (370) (60)
---------- ----------
Income from operations 15,591 11,769
Add back depreciation 3,070 2,804
Add back amortization 384 246
---------- ----------
EBITDA $19,045 $14,819
(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)
Six months ended
-----------------------------------
6/30/2005 6/30/2004
----------------- -----------------
Revenue $307,775 100.0% $268,147 100.0%
Cost of services 252,134 81.9% 224,205 83.6%
---------- ------ ---------- ------
Gross profit 55,641 18.1% 43,942 16.4%
Selling, general and
administrative expenses 25,322 8.2% 21,279 7.9%
Amortization 760 0.3% 444 0.2%
---------- ------ ---------- ------
Income from operations 29,559 9.6% 22,219 8.3%
Net interest income 597 0.2% 95 0.0%
---------- ------ ---------- ------
Income before income taxes 30,156 9.8% 22,314 8.3%
Income tax provision (12,336) -4.0% (9,333) -3.5%
---------- ------ ---------- ------
Net income $17,820 5.8% $12,981 4.8%
========== ====== ========== ======
Per share data:
---------------------------------
Net income per share - basic $0.66 $0.49
========== ==========
Weighted average number of common
shares outstanding 26,976 26,360
========== ==========
Net income per share - diluted $0.63 $0.47
========== ==========
Weighted average number of common
and common equivalent shares 28,285 27,701
========== ==========
Supplemental Information:
---------------------------------
Earnings before interest, taxes, $36,346 $28,153
depreciation and amortization
(EBITDA)(a)
Reconciliation of net income to
EBITDA:
Net income, as reported $17,820 $12,981
Add back income tax provision 12,336 9,333
Less net interest income (597) (95)
---------- ----------
Income from operations 29,559 22,219
Add back depreciation 6,027 5,490
Add back amortization 760 444
---------- ----------
EBITDA $36,346 $28,153
(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.
INVESTOR CONTACT:
Elizabeth Boland, 617-673-8000
MEDIA CONTACT:
Ilene Hoffer, 617-673-8000
SOURCE: Bright Horizons Family Solutions, Inc.