Kindercare Learning Companies, Inc.(US:KLC)2025-03-20 20:15Revenue Performance - Total revenue for Q4 2024 increased by $29.0 million, or 4.7%, to $647.0 million compared to $618.0 million in Q4 2023[5] - Revenue from early childhood education centers rose by $23.0 million, or 4.0%, driven by a 3% increase in tuition rates and a 1% increase in enrollment[5] - Revenue from before- and after-school sites increased by $6.0 million, or 12.5%, primarily due to new site openings and increased enrollment[6] - Revenue for the fiscal year ended December 28, 2024, was $2,663,035, an increase of 6.1% from $2,510,182 in the previous year[28] Profitability and Loss - Loss from operations for Q4 2024 was $89.3 million, a significant change from an income of $48.7 million in Q4 2023, largely due to increased equity-based compensation expenses[7] - Net loss for Q4 2024 was $133.6 million, compared to a net income of $14.8 million in Q4 2023, reflecting a $148.4 million change[7] - Net loss for the fiscal year ended December 28, 2024, was $92,840, compared to a net income of $102,558 in the previous year, marking a significant decline[28] - Basic and diluted net loss per common share for the fiscal year ended December 28, 2024, was $(0.96), down from $1.13 in the previous year[28] Adjusted Metrics - Adjusted EBITDA for Q4 2024 increased by $3.1 million, or 4.9%, to $66.0 million, while adjusted net income rose to $10.7 million from $0.1 million in Q4 2023[10] - Adjusted EBITDA for the fiscal year ended December 28, 2024, was $298,123, an increase from $266,382 in the previous year[32] - Adjusted net income for the three months ended December 28, 2024, was $10.7 million, compared to $0.1 million for the same period in 2023, representing a significant increase[33] - Adjusted net income per common share for the fiscal year ended December 28, 2024, was $0.40, up from $0.20 in the previous fiscal year[33] Cash and Financial Position - As of December 28, 2024, the company had $62.3 million in cash and cash equivalents and $184.2 million in available borrowing capacity[12] - Cash provided by operating activities for the fiscal year ended December 28, 2024, was $115,887, a decrease from $303,540 in the previous year[30] - The company incurred interest expenses of $170,539 for the fiscal year ended December 28, 2024, compared to $152,893 in the previous year[28] Company Operations - As of December 28, 2024, the company operated 1,574 early childhood education centers and 1,025 before- and after-school sites[11] - For fiscal year 2025, the company expects revenue to be approximately $2.75 billion to $2.85 billion, with adjusted EBITDA projected at $310 million to $325 million[14] - The fiscal year 2025 outlook includes a 53rd week, contributing an estimated $45 million to $50 million in revenue and $10 million to $12 million in adjusted EBITDA[14] Impairments and Expenses - The company reported a total impairment loss of $10,535 for the fiscal year ended December 28, 2024, down from $13,560 in the previous year[28] - The company recognized $7.4 million in COVID-19 related stimulus funding for the three months ended December 28, 2024, and $63.3 million for the fiscal year[35] - Equity-based compensation expense for the three months ended December 28, 2024, included $113.1 million related to a one-time modification to the PIUs Plan[34] - The company recognized a one-time expense of $14.3 million related to advance distributions to Class B PIU recipients in March 2024[34] Shareholder Information - The weighted average number of common shares outstanding for the fiscal year ended December 28, 2024, was 96,309, an increase from 90,366 in the previous year[28] - The weighted average number of common shares outstanding for the three months ended December 28, 2024, was 114,136,000, compared to 90,366,000 for the same period in 2023[33] - The company completed an initial public offering, generating proceeds of $625,968 during the fiscal year ended December 28, 2024[30] Debt and Financing - The company incurred $3.6 million in transaction costs associated with its incremental first lien term loan during the fiscal year ended December 28, 2024[35] - Loss on extinguishment of long-term debt for the fiscal year ended December 28, 2024, was primarily due to the repayment of $608.0 million on the first lien term loan[34] - The non-GAAP tax rate was 25.8% for both the three months and fiscal years ended December 28, 2024, and December 30, 2023[34]