Bright Horizons Family Solutions(US:BFAM)2025-05-07 20:48Revenue Growth - Revenue for the three months ended March 31, 2025, increased by $42.8 million, or 7%, to $665.5 million compared to $622.7 million for the same period in 2024[102] - Back-up care revenue grew by $13.9 million, or 12%, due to increased utilization of services by new and existing clients[104] - Full service center-based child care revenue increased by $26.9 million, or 5.6%, with a net enrollment growth of 2% and average tuition rate increases of approximately 4-5%[102] Profitability - Gross profit for the three months ended March 31, 2025, was $155.7 million, representing 23.4% of revenue, compared to 21.7% in the same period of 2024[101] - Net income for the quarter was $38.0 million, or 5.7% of revenue, up from $17.0 million, or 2.7%, in the prior year[101] - Adjusted EBITDA for the quarter was $92.3 million, or 13.9% of revenue, compared to $75.0 million, or 12.0%, in the same period of 2024[101] - Adjusted EBITDA increased by $17.3 million, or 23%, for the three months ended March 31, 2025, primarily due to increased contributions from the back-up care and full service center-based child care segments[116] - Adjusted net income rose by $15.1 million, or 51%, for the three months ended March 31, 2025, driven by higher adjusted income from operations and lower interest expense[117] Cost and Expenses - Cost of services increased by $22.2 million, or 5%, to $509.8 million, primarily due to increased personnel costs associated with expanded enrollment[105] - Selling, General and Administrative Expenses (SGA) rose by $4.3 million, or 5%, to $91.9 million for the three months ended March 31, 2025, representing 14% of revenue[110] - Income from operations increased by $22.3 million, or 56%, to $62.3 million for the three months ended March 31, 2025, with significant contributions from both the full service center-based child care and back-up care segments[112] Operational Metrics - The company operated 1,023 early education and child care centers with a capacity to serve approximately 115,000 children as of March 31, 2025[95] - 47% of the monitored cohort of centers were more than 70% enrolled, reflecting improved occupancy compared to the previous year[97] Cash and Debt Management - The company had $112.0 million in cash at March 31, 2025, compared to $110.3 million at December 31, 2024, with $59.5 million held in foreign jurisdictions[126] - The company amended its revolving credit facility, increasing it from $400 million to $900 million on April 17, 2025[127] - Long-term debt as of March 31, 2025, totaled $872.7 million, down from $918.4 million as of December 31, 2024[140] - The company had net investments of $15.2 million in fixed asset purchases during the three months ended March 31, 2025, compared to $19.4 million in the same period in 2024[136] Tax and Financial Position - Income tax expense was $13.9 million for the three months ended March 31, 2025, at an effective tax rate of 27%, compared to $9.3 million and 35% in the prior year[114] - The company reported a working capital deficit of $295.8 million at March 31, 2025, primarily due to long-term investments and share repurchases[129] - As of March 31, 2025, the company had $849.8 million in lease liabilities, with $103.3 million classified as short-term[130] - The company authorized a share repurchase program of up to $400 million, with $94.0 million remaining available for future repurchases as of March 31, 2025[131] Cash Flow Activities - Net cash provided by operating activities decreased to $86.2 million for the three months ended March 31, 2025, down from $116.3 million in the same period in 2024[134] - Cash used in investing activities was $14.5 million for the three months ended March 31, 2025, compared to $38.1 million in the same period in 2024, primarily due to reduced net purchases of debt securities[135] - Cash used in financing activities decreased to $73.4 million for the three months ended March 31, 2025, compared to $97.6 million in the same period in 2024, mainly due to no payments for deferred consideration in 2025[137] Strategic Focus - The company remains focused on strategic priorities to enhance service quality and expand its client base amid a dynamic operating environment[99] - The company complied with its financial covenants as of March 31, 2025[147]