Bright Horizons Family Solutions(BFAM)

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Bright Horizons Family Solutions(BFAM) - 2022 Q3 - Earnings Call Transcript
2022-11-02 12:22
Financial Data and Key Metrics Changes - Revenue for Q3 2022 increased by 17% to $540 million, with adjusted net income of $38 million and adjusted EPS of $0.66 [8][26] - Adjusted operating income held steady at $46 million, representing 8% of revenue, while adjusted EBITDA increased by 2% to $81 million, or 15% of revenue [26][30] - The company expects to achieve $2 billion in revenue for the full year 2022, with adjusted EPS narrowed to a range of $2.60 to $2.65, reflecting a growth of 30% to 33% [22][41] Business Line Data and Key Metrics Changes - Full service childcare segment revenue increased by 14% to $381 million, driven by increased enrollment and pricing [8][28] - Back-up care revenue grew by 30% to $129 million, marking the highest revenue quarter in the segment's history [16][35] - Education advisory business revenue increased by 14% to $31 million, with solid participant growth [20][36] Market Data and Key Metrics Changes - Enrollment growth in the U.S. was mid-single digits, with notable gains in major metro areas like New York City and San Francisco [9][10] - In the UK and Netherlands, enrollment growth was muted due to labor market challenges [13] - The company experienced a 7% headwind from a strengthening dollar, resulting in a $19 million year-over-year impact [30] Company Strategy and Development Direction - The company is focused on rebuilding enrollment pipelines and improving staffing levels through investments in teacher compensation and benefits [24][34] - New product innovations, such as pet care and virtual tutoring, are being rolled out to drive greater adoption and frequency of use [19] - The company aims to maintain strong client relationships and leverage its employer-sponsored business model to meet childcare needs [25][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued progress across the business and the importance of childcare services for clients' workforce strategies [24][75] - Staffing remains a significant constraint on enrollment growth, with ongoing efforts to improve retention and recruitment [76] - The company anticipates a reduction in government subsidies in 2023, with expectations of $50 million to $60 million in funding for 2022 [64] Other Important Information - The company generated $131 million in cash from operations and made capital investments of $251 million, including $206 million for the acquisition of Only About Children [40] - Interest expense for Q3 was reported at $12 million, with expectations for an increase in Q4 due to the current rate environment [38] Q&A Session Summary Question: Confirmation of Q4 revenue guidance - Management confirmed that Q4 revenue is expected to be slightly down from Q3, primarily due to foreign exchange headwinds and a pullback in backup care [44] Question: Government subsidies recognized - Management indicated that $14 million was recognized in Q3, with expectations of a similar amount for the remainder of the year [45] Question: Organic constant currency revenue growth - Management reported that organic constant currency growth for full service was around 10% year-on-year [49] Question: Client sentiment and occupancy cadence - Management noted positive sentiment from clients regarding the importance of childcare services, with expectations for improved occupancy as staffing levels increase [53] Question: Full service margin expectations - Management expects full service margins to be close to breakeven in Q4, with some improvement anticipated [54] Question: Utilization rates and geographic performance - Management confirmed that utilization rates averaged 55% to 60% in Q3, with expectations for a slight uptick in Q4 [57] Question: Capital allocation priorities - Management indicated a focus on growing enrollment and recovering the primary business, with ongoing investments in smaller acquisitions and lease models [88]
Bright Horizons Family Solutions(BFAM) - 2022 Q2 - Quarterly Report
2022-08-04 16:00
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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to 2 Wells Avenue Newton, Massachusetts 02459 (Address of principa ...
Bright Horizons Family Solutions(BFAM) - 2022 Q2 - Earnings Call Transcript
2022-08-03 03:05
Financial Data and Key Metrics Changes - Revenue increased by 11% to $490 million, with adjusted operating income rising by 48% to $50 million [8][22] - Adjusted net income reached $42 million, resulting in adjusted EPS of $0.71, up 45% from the previous year [8] Business Line Data and Key Metrics Changes - Full service segment revenue grew by 11% to $371 million, with occupancy rates improving across both urban and suburban locations [9][10] - Backup care revenue increased by 13% to $92 million, surpassing pre-pandemic levels for the first time [14][28] - Education advisory business revenue grew by 7% to $27 million, driven by high interest in college admissions assistance [16][29] Market Data and Key Metrics Changes - Enrollment levels improved, with occupancy averaging between 35% and 65% across the portfolio [22] - The strength of the U.S. dollar against the British pound and euro resulted in a revenue headwind of approximately $13 million [24] Company Strategy and Development Direction - The company is focused on growth strategies and plans to invest in staffing and wage adjustments to meet demand [20][35] - The acquisition of Only About Children is expected to contribute approximately $70 million in revenue for the second half of 2022, with full potential realized in 2023 [19][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full enrollment recovery, particularly in suburban and client centers [13][55] - The company revised its 2022 revenue outlook to approximately $2 billion, with adjusted EPS projected between $2.60 and $2.75 [20][33] Other Important Information - The company is experiencing seasonal enrollment impacts due to children aging into elementary school, affecting backfill capabilities [13][50] - The structural tax rate on adjusted net income increased to 26% for 2022, compared to 21% in the previous year [30] Q&A Session Summary Question: What is constraining growth recovery? - Management indicated that staffing and recruiting challenges are the primary constraints, with some urban markets lagging behind suburban areas in meeting demand [37][39] Question: What are the expectations for depreciation and amortization? - The estimated D&A for the year is around $80 million, with a contribution from Only About Children of approximately $2 million [40] Question: Can you provide more details on enrollment percentages? - Management noted that half of the centers have returned to pre-COVID levels, while urban markets like New York City and DC are still facing challenges [42][44] Question: What is the outlook for labor shortages? - Management is hopeful that wage investments will help alleviate staffing shortages, with an increase in applications and net new staff [46] Question: How are seasonal factors affecting enrollment? - The company is experiencing typical seasonal patterns, with preschoolers aging out and not enough younger children to backfill [48][50] Question: What government subsidies were received in Q2? - The company received approximately $16 million in government subsidies for P&L centers, which helped offset costs [51] Question: What are the price increases for this year and expectations for next year? - Price increases averaged 5% to 6% this year, with expectations for higher increases next year due to rising costs [56][58] Question: What is the visibility on financial guidance? - Management acknowledged challenges in visibility due to seasonal turnover and enrollment patterns, but believes the revised guidance is reasonable [60][62] Question: What is the margin profile for Only About Children? - Only About Children is expected to operate at a lower margin initially, with integration costs absorbed into the overall results [70]
Bright Horizons Family Solutions(BFAM) - 2022 Q1 - Quarterly Report
2022-05-05 16:00
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 March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to 2 Wells Avenue Newton, Massachusetts 02459 (Address of princip ...
Bright Horizons Family Solutions(BFAM) - 2022 Q1 - Earnings Call Transcript
2022-05-04 02:42
Bright Horizons Family Solutions Inc. (NYSE:BFAM) Q1 2022 Earnings Conference Call May 3, 2022 5:00 PM ET Company Participants Michael Flanagan - Senior Director, IR Stephen Kramer - CEO Elizabeth Boland - CFO Conference Call Participants Manav Patnaik - Barclays Andrew Steinerman - JPMorgan Hans Hoffman - Jefferies Jeff Meuler - Robert W. Baird Jeff Silber - BMO Capital Markets George Tong - Goldman Sachs Toni Kaplan - Morgan Stanley Faiza Alwy - Deutsche Bank Operator Greetings, and welcome to Bright Hori ...
Bright Horizons Family Solutions(BFAM) - 2021 Q4 - Annual Report
2022-02-24 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2021 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 (Stat ...
Bright Horizons Family Solutions(BFAM) - 2021 Q4 - Earnings Call Transcript
2022-02-17 02:03
Bright Horizons Family Solutions Inc. (NYSE:BFAM) Q4 2021 Results Conference Call February 16, 2022 5:00 PM ET Company Participants Michael Flanagan - Senior Director, IR Stephen Kramer - CEO Elizabeth Boland - CFO Conference Call Participants Hamzah Mazari - Jefferies George Tong - Goldman Sachs Jeff Silber - BMO Capital Markets Stephanie Yee - JP Morgan Toni Kaplan - Morgan Stanley Jeff Mueller - Baird Operator Greetings. Welcome to the Bright Horizons Family Solutions Fourth Quarter 2021 Earnings Call. A ...
Bright Horizons Family Solutions(BFAM) - 2021 Q3 - Quarterly Report
2021-11-04 16:00
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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to 2 Wells Avenue Newton, Massachusetts 02459 (Address of pri ...
Bright Horizons Family Solutions(BFAM) - 2021 Q3 - Earnings Call Transcript
2021-11-03 02:11
Bright Horizons Family Solutions Inc. (NYSE:BFAM) Q3 2021 Earnings Conference Call November 2, 2021 5:00 PM ET Company Participants Michael Flanagan – Director-Investor Relations Stephen Kramer – Chief Executive Officer Elizabeth Boland – Chief Financial Officer Conference Call Participants Andrew Steinerman – JP Morgan Hamzah Mazari – Jefferies Manav Patnaik – Barclays George Tong – Goldman Sachs Gary Bisbee – Bank of America Jeff Silber – BMO Capital Markets Jeff Mueller – Baird Toni Kaplan - Morgan Stanl ...
Bright Horizons Family Solutions(BFAM) - 2021 Q2 - Quarterly Report
2021-08-05 16:00
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 June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to 2 Wells Avenue Newton, Massachusetts 02459 (Address of principa ...