Core Insights - Bright Horizons Family Solutions (BFAM) reported revenue of $674.15 million for Q4 2024, marking a year-over-year increase of 9.5% and exceeding the Zacks Consensus Estimate by 0.60% [1] - The company's EPS for the same period was $0.98, up from $0.83 a year ago, representing a surprise of 7.69% over the consensus estimate of $0.91 [1] Revenue Breakdown - Full service center-based child care revenue was $484.50 million, slightly below the average estimate of $485.72 million, with a year-over-year change of +8.4% [4] - Educational advisory and other services generated $32.48 million, exceeding the average estimate of $31.98 million, but reflecting a year-over-year decline of 4.3% [4] - Back-up care revenue reached $157.17 million, surpassing the average estimate of $152.22 million, with a year-over-year increase of 16.8% [4] Operational Performance - Adjusted income from operations for full service center-based child care was $17.20 million, below the average estimate of $18.14 million [4] - Adjusted income from operations for educational advisory and other services was $9.53 million, exceeding the average estimate of $7.28 million [4] - Adjusted income from operations for back-up care was $52.63 million, surpassing the average estimate of $49.35 million [4] Stock Performance - Bright Horizons shares have returned +2.1% over the past month, compared to a +3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Bright Horizons Family Solutions (BFAM) reported quarterly earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and up from $0.83 per share a year ago [1] - The company achieved revenues of $674.15 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.60% and increasing from $615.65 million year-over-year [3] - Over the last four quarters, Bright Horizons has consistently surpassed consensus EPS and revenue estimates [2][3] Stock Movement and Outlook - The stock has gained approximately 6.7% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [4] - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $669.66 million, and for the current fiscal year, it is $3.94 on revenues of $2.9 billion [8] Industry Context - Bright Horizons operates within the Zacks Business - Services industry, which is currently ranked in the bottom 26% of over 250 Zacks industries [9] - The performance of the stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Performance - Revenue for Q4 2024 was $674 million, an increase of 10% compared to Q4 2023[3] - Income from operations for Q4 2024 was $48.2 million, reflecting a 71% increase from $28.2 million in Q4 2023[4] - Net income for Q4 2024 reached $29.1 million, a significant increase of 427% from $5.5 million in Q4 2023[4] - Adjusted EBITDA for Q4 2024 was $110.7 million, up 12% from the previous year[5] - For the full year 2024, revenue totaled $2.7 billion, an increase of 11% year-over-year[6] - Adjusted net income for Q4 2024 was $57.4 million, a 19% increase from the previous year[5] - Revenue for the year ended December 31, 2024, increased to $2,686,013 thousand, a 11.1% increase from $2,418,257 thousand in 2023[21] - Net income for 2024 was $140,191 thousand, representing a 88.8% increase from $74,223 thousand in 2023, with net income margin at 5.2%[21] - Adjusted income from operations for the year 2024 was $277,753 thousand, up from $212,602 thousand in 2023, reflecting a 30.7% increase[29] - Adjusted EBITDA for the full year 2024 was $409.3 million, up from $352.1 million in 2023, reflecting a year-over-year increase of 16%[32] - Adjusted net income for the full year 2024 was $203.2 million, an increase of 23.7% from $164.3 million in 2023[32] Cash Flow and Assets - The company generated approximately $337.5 million of cash from operations in 2024, compared to $256.1 million in 2023[9] - Cash provided by operating activities increased to $337,462 thousand in 2024, compared to $256,140 thousand in 2023, marking a 31.7% increase[25] - Total assets decreased slightly to $3,850,319 thousand in 2024 from $3,896,144 thousand in 2023[23] - Total stockholders' equity increased to $1,278,396 thousand in 2024, up from $1,212,676 thousand in 2023, indicating a growth of 5.4%[23] Expenses and Liabilities - The company reported a decrease in interest expense to $48,761 thousand in 2024 from $51,609 thousand in 2023, a reduction of 3.6%[21] - The current portion of long-term debt increased to $28,500 thousand in 2024 from $18,500 thousand in 2023, reflecting a 54.1% increase[23] - The company incurred stock-based compensation expenses of $9.0 million in Q4 2024, compared to $7.7 million in Q4 2023, reflecting an increase of 17%[32] Operational Metrics - The company operated 1,019 early education and child care centers as of December 31, 2024, with a capacity to serve approximately 115,000 children[7] - EBITDA as a percentage of revenue improved to 16% in Q4 2024, consistent with the previous year, while full-year EBITDA margin also held steady at 15%[32] - Impairment losses for Q4 2024 totaled $30.3 million, compared to $35.9 million in Q4 2023, indicating a decrease of 15.6%[32] - Income from operations for Q4 2024 was $48.2 million, up from $28.2 million in Q4 2023, representing a growth of 70.8%[32] Future Outlook - The company expects fiscal year 2025 revenue to be in the range of $2.85 billion to $2.9 billion[10] - The company plans to continue focusing on market expansion and new product development to drive future growth[21] Shareholder Information - The company repurchased $84.6 million of its common stock during the year ended December 31, 2024[9] - The company reported a diluted adjusted earnings per share of $0.98 for Q4 2024, compared to $0.83 in Q4 2023, marking a growth of 18.1%[32] - The weighted average diluted shares outstanding increased slightly to 58.4 million in Q4 2024 from 58.1 million in Q4 2023[32]

Core Viewpoint - Bright Horizons Family Solutions (BFAM) is expected to report quarterly earnings of $0.91 per share, a 9.6% increase year-over-year, with revenues projected at $670.11 million, reflecting an 8.9% year-over-year growth [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating stability in analysts' projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Revenue Projections - Revenue from full-service center-based child care is estimated at $485.72 million, showing an 8.6% year-over-year increase [5]. - Revenue from educational advisory and other services is expected to be $31.98 million, indicating a decline of 5.8% from the previous year [5]. - Revenue from back-up care is projected at $152.22 million, reflecting a 13.1% year-over-year increase [6]. Adjusted Income Estimates - Adjusted income from operations for educational advisory and other services is forecasted to be $7.28 million, down from $9.91 million year-over-year [6]. - Adjusted income from operations for back-up care is expected to reach $34.93 million, compared to $37.43 million in the previous year [7]. Stock Performance - Over the past month, Bright Horizons shares have increased by 6.7%, outperforming the Zacks S&P 500 composite, which rose by 2.1% [8]. - Despite recent performance, BFAM holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [8].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to Commission File Number: 001-35780 BRIGHT HORIZONS FAMILY SOLUTIONS INC. (Exact name of registrant as specified in its charter) Delaware 80-0188269 (State or oth ...

I gave a buy rating to Bright Horizons Family (NYSE: BFAM ) in June, with my key thesis being that the business will continue to grow for a long period of time given the secularI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsic value ...

Financial Data and Key Metrics Changes - Total revenue increased by 11% to $719 million, adjusted EBITDA rose by 20% to $121 million, and adjusted EPS grew by 26% to $1.11 per share [9][18] - Adjusted operating income of $89 million represented 12.4% of revenue, a 34% increase year-over-year [18] - The company generated $217 million in cash from operations, compared to $161 million last year, and ended the quarter with $110 million in cash [24] Business Line Data and Key Metrics Changes - Full service child care revenue increased by 9% to $487 million, with occupancy levels averaging in the low 60s [9][19] - Back-up care revenue grew by 18% to $202 million, with adjusted operating income of $70 million, representing 35% of revenue [11][22] - Educational Advisory revenue increased by 4% to $31 million, with an operating margin of 21% [14][22] Market Data and Key Metrics Changes - Enrollment in centers opened for more than one year increased at a low single-digit rate across U.S. and international operations [10] - The U.K. operations showed progress, narrowing losses compared to last year, but still require work to return to pre-pandemic performance levels [10][80] Company Strategy and Development Direction - The company is refining its full-year revenue guidance to approximately $2.675 billion, representing 11% growth, and adjusted EPS range of $3.37 to $3.42 [17][25] - Continued investments in building supply, new care types, and personalized market initiatives are expected to drive growth [13][59] - The company is focused on improving its EdAssist business through team investments, product enhancements, and marketing efforts [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and outlook for Q4, with expectations of continued growth in back-up care and stabilization in full service [8][17] - The company anticipates low single-digit enrollment growth for the remainder of the year and into 2025 [32][69] - Management noted challenges in the bottom cohort of centers, particularly related to occupancy recovery and geographic factors [38][41] Other Important Information - The company held its first in-person client event since the pandemic, reinforcing its commitment to innovation and client engagement [15][16] - The company is maintaining a disciplined approach to M&A, focusing on long-term strategy rather than short-term acquisitions [54] Q&A Session Summary Question: What was the organic constant currency revenue growth in Q3? - Full service revenue growth was 9.4%, with organic constant currency at 8% [26][27] Question: Can you provide a breakdown of enrollment growth? - Enrollment growth was consistent in low single digits, with stronger infant and toddler enrollment aligning with preschool growth [29][30] Question: What are the expectations for occupancy rates? - Occupancy rates are expected to remain in the low 60s for the rest of the year, with gradual recovery anticipated in 2025 [36][37] Question: What are the key challenges in the bottom cohort of centers? - Challenges include geographic imbalances and client center utilization, with specific actions being taken for improvement [41][42] Question: What are the drivers of back-up care growth? - Growth is primarily driven by increased utilization by existing clients rather than new clients [51][52] Question: What is the outlook for EdAssist participation growth? - Participation growth has been muted, influenced by market conditions, but the company is focused on transformation and investment in this area [56][58] Question: How is the company addressing pricing strategies? - The company is considering price increases while balancing service delivery and cost structures, with a cautious approach to future pricing [74][75]

Bright Horizons Family Solutions Inc. (NYSE:BFAM) Q3 2024 Earnings Conference Call November 4, 2024 5:00 PM ET Company Participants Michael Flanagan - VP, IR Stephen Kramer - CEO Elizabeth Boland - CFO Conference Call Participants Andrew Steinerman - J.P. Morgan Manav Patnaik - Barclays George Tong - Goldman Sachs Jeff Meuler - Baird Toni Kaplan - Morgan Stanley Jeff Silber - BMO Capital Markets Josh Chan - UBS Faiza Alwy - Deutsche Bank Harold Antor - Jefferies Operator Greetings, and welcome to the Bright ...

For the quarter ended September 2024, Bright Horizons Family Solutions (BFAM) reported revenue of $719.1 million, up 11.4% over the same period last year. EPS came in at $1.11, compared to $0.88 in the year-ago quarter.The reported revenue represents a surprise of +1.18% over the Zacks Consensus Estimate of $710.72 million. With the consensus EPS estimate being $1.06, the EPS surprise was +4.72%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Bright Horizons Family Solutions (BFAM) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.06 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.72%. A quarter ago, it was expected that this child care and early education services provider would post earnings of $0.72 per share when it actually produced earnings of $0.88, delivering a sur ...