Bright Horizons Family Solutions Reports Second Quarter 2006 Financial Results
BOSTON, MA, Jul 26, 2006 (MARKET WIRE via COMTEX News Network) -- Bright Horizons Family Solutions, Inc. (NASDAQ: BFAM) today announced financial results for the second quarter ended June 30, 2006.
Earnings per diluted share of $0.40 in the quarter ended June 30, 2006 increased 21% from $0.33 per diluted share for the quarter ended June 30, 2005. Revenue for the second quarter of 2006 increased 12% to $175.2 million from $157.0 million for the same quarter last year. Net income for the second quarter of 2006 increased 15% to $10.9 million from $9.5 million in the second quarter of 2005.
Earnings per diluted share of $0.75 for the six months ended June 30, 2006 increased 19% from $0.63 per diluted share for the six months ended June 30, 2005. Revenue for the first six months of 2006 increased 12% to $344.4 million from $307.8 million for the same period last year. Net income for the first six months of 2006 increased 17% to $20.9 million from $17.8 million in the first six months of 2005.
In conjunction with the January 1, 2006 adoption of Statement of Financial Accounting Standard No. 123R, which resulted in the expensing of stock-based compensation costs, earnings per diluted share decreased by approximately $0.02 and $0.04 respectively for the second quarter and year-to-date 2006 compared to the same 2005 periods.
"We are pleased to report another solid quarter," said David Lissy, Chief Executive Officer. "As we celebrate our 20th anniversary this year, I am extremely proud of the talented and passionate team of early educators and other professionals who make up our Bright Horizons family worldwide. As we have grown, we have continued to enhance the strength of our culture, deliver strong and consistent financial results and improve the quality of the services we offer to the children, families and clients we serve."
During the second quarter, Bright Horizons added eight new centers to its network. Included in these additions were centers for Mercedes Benz in Alabama, the University of California at San Francisco, GlaxoSmithKline, BlueCross BlueShield of North Carolina and the Marine Institute in Galway, Ireland. The Company closed four centers and at the end of the second quarter operated 615 early care and education centers, with the capacity to serve 66,760 children and families.
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 706-679-4144 and entering conference ID# 2693939. Replays of the entire call will be available through Friday, August 11, 2006 at 706-645-9291, PIN# 2693939. 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 more than 600 early care and family centers in the United States, the United Kingdom, Ireland and Canada. Bright Horizons serves more than 600 clients, including more than 95 FORTUNE 500 companies and 65 of the "100 Best Companies" 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 integrate acquisitions, 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
----------------------------------
6/30/2006 6/30/2005
---------------- ----------------
Revenue $ 175,232 100.0% $ 157,017 100.0%
Cost of services 139,940 79.9% 128,279 81.7%
--------- ----- --------- -----
Gross profit 35,292 20.1% 28,738 18.3%
Selling, general and administrative
expenses 15,835 9.0% 12,763 8.1%
Amortization 751 0.4% 384 0.3%
--------- ----- --------- -----
Income from operations 18,706 10.7% 15,591 9.9%
Net interest income 79 0.0% 370 0.3%
--------- ----- --------- -----
Income before income taxes 18,785 10.7% 15,961 10.2%
Income tax provision (7,910) -4.5% (6,500) -4.2%
--------- ----- --------- -----
Net income $ 10,875 6.2% $ 9,461 6.0%
========= ===== ========= =====
Per share data:
Net income per share - basic $ 0.41 $ 0.35
========= =========
Weighted average number of common
shares outstanding 26,425 27,057
========= =========
Net income per share - diluted $ 0.40 $ 0.33
========= =========
Weighted average number of common and
common equivalent shares 27,484 28,365
========= =========
Supplemental Information:
Earnings before interest, taxes,
depreciation and amortization
(EBITDA)(a) $ 23,200 $ 19,045
Reconciliation of net income to EBITDA:
Net income, as reported $ 10,875 $ 9,461
Add back income tax provision 7,910 6,500
Less net interest income (79) (370)
--------- ---------
Income from operations 18,706 15,591
Add back depreciation 3,743 3,070
Add back amortization 751 384
--------- ---------
EBITDA $ 23,200 $ 19,045
(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
----------------------------------
6/30/2006 6/30/2005
---------------- ----------------
Revenue $ 344,371 100.0% $ 307,775 100.0%
Cost of services 276,174 80.2% 252,134 81.9%
--------- ----- --------- -----
Gross profit 68,197 19.8% 55,641 18.1%
Selling, general and administrative
expenses 31,020 9.0% 25,322 8.2%
Amortization 1,361 0.4% 760 0.3%
--------- ----- --------- -----
Income from operations 35,816 10.4% 29,559 9.6%
Net interest income 197 0.1% 597 0.2%
--------- ----- --------- -----
Income before income taxes 36,013 10.5% 30,156 9.8%
Income tax provision (15,148) -4.4% (12,336) -4.0%
--------- ----- --------- -----
Net income $ 20,865 6.1% $ 17,820 5.8%
========= ===== ========= =====
Per share data:
Net income per share - basic $ 0.78 $ 0.66
========= =========
Weighted average number of common
shares outstanding 26,660 26,976
========= =========
Net income per share - diluted $ 0.75 $ 0.63
========= =========
Weighted average number of common and
common equivalent shares 27,752 28,285
========= =========
Supplemental Information:
Earnings before interest, taxes,
depreciation and amortization
(EBITDA)(a) $ 44,475 $ 36,346
Reconciliation of net income to EBITDA:
Net income, as reported $ 20,865 $ 17,820
Add back income tax provision 15,148 12,336
Less net interest income (197) (597)
--------- ---------
Income from operations 35,816 29,559
Add back depreciation 7,298 6,027
Add back amortization 1,361 760
--------- ---------
EBITDA $ 44,475 $ 36,346
(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.
INVESTOR CONTACT:
Elizabeth Boland:
617-673-8000
MEDIA CONTACT:
Ilene Serpa:
617-673-8000