Kindercare Learning Companies, Inc.(US:KLC)2024-11-20 21:15Revenue Performance - Revenue for Q3 2024 was $671.5 million, an increase of $47.0 million or 7.5% compared to Q3 2023[5] - Revenue from early childhood education centers increased by $40.5 million, or 6.9%, primarily due to higher tuition rates and increased enrollment[6] - Revenue from before- and after-school sites increased by $6.5 million, or 16.8%, driven by new site openings and increased tuition rates[7] - Revenue for the nine months ended September 28, 2024, was $2,016,079,000, representing a 6.6% increase from $1,892,186,000 in the same period of 2023[28] Income and Earnings - Net income for Q3 2024 was $14.0 million, a decrease of $2.0 million or 13.0% from $16.0 million in Q3 2023[8] - Adjusted net income for Q3 2024 was $4.3 million, a significant increase of $7.7 million or 225.4% compared to an adjusted net loss of $3.4 million in Q3 2023[9] - Net income for the nine months ended September 28, 2024, was $40,743,000, a decrease of 53.5% from $87,731,000 in the same period of 2023[30] - Basic and diluted net income per common share for the nine months ended September 28, 2024, was $0.45, down from $0.97 in the prior year[28] - Net income for the three months ended September 28, 2024, was $13.959 million, a decrease of 13.4% compared to $16.036 million for the same period in 2023[32] - Basic net income per common share for the three months ended September 28, 2024, was $0.15, consistent with $0.18 in the same period of 2023[32] Operational Metrics - Income from operations decreased by $4.3 million, or 7.4%, to $54.4 million for Q3 2024 compared to $58.7 million for Q3 2023[8] - Adjusted EBITDA increased by $14.4 million, or 25.1%, to $71.4 million in Q3 2024 compared to $57.0 million in Q3 2023[9] - Adjusted EBITDA for the three months ended September 28, 2024, was $71.356 million, an increase of 25.2% from $57.019 million in the prior year[32] - EBIT for the nine months ended September 28, 2024, was $174.301 million, down 23.6% from $228.352 million for the same period in 2023[32] Costs and Expenses - Cost of services (excluding depreciation and impairment) was $1,518,818,000, accounting for 75.3% of revenue, compared to 71.7% in the prior year[28] - Total costs and expenses for the nine months ended September 28, 2024, were $1,847,499,000, or 91.6% of revenue, up from 88.0% in the previous year[28] - Cash used in investing activities totaled $108,702,000 for the nine months ended September 28, 2024, compared to $96,542,000 in the previous year[30] Cash Flow and Financial Position - The company had $137.2 million in cash and cash equivalents and $104.2 million in available borrowing capacity as of September 28, 2024[12] - Cash provided by operating activities for the nine months ended September 28, 2024, was $156,736,000, a significant decrease from $307,764,000 in the same period of 2023[30] - The company reported a net change in cash of $(19,078,000) for the nine months ended September 28, 2024, contrasting with an increase of $83,436,000 in the same period of 2023[30] Asset and Liability Overview - Total assets increased to $3,722.5 million as of September 28, 2024, compared to $3,653.3 million as of December 30, 2023[24] - Interest expense for the nine months ended September 28, 2024, was $119,806,000, representing 5.9% of revenue, compared to 6.0% in the prior year[28] - The company experienced a loss on extinguishment of long-term debt, netting $895,000 for the nine months ended September 28, 2024[30] Special Items and Adjustments - The company recognized $16.9 million in COVID-19 related stimulus during the three months ended September 28, 2024, compared to $36.9 million in the same period of 2023[33] - Impairment losses for the three months ended September 28, 2024, were $1.257 million, down from $1.776 million in the same period of 2023[32] - Management and advisory fee expenses for the three months ended September 28, 2024, were $1.216 million, unchanged from the same period in 2023[32] - The company incurred $14.3 million in one-time expenses related to advance distributions to certain employees in March 2024[33] - The non-GAAP tax rate was 25.8% for both the three and nine months ended September 28, 2024, and September 30, 2023[33]