Bright Horizons Family Solutions Reports 33% Net Income Growth; Announces Agreement to Acquire Four Centers in Scotland.Business Editors BOSTON--(BUSINESS WIRE)--April 22, 2002 Bright Horizons Family Solutions Bright Horizons Family Solutions is a US-based child-care provider and one of the largest publicly held child-care corporations in the world. The result of a merger in 1998 between Massachusetts-based Bright Horizons , Inc. (Nasdaq: BFAM BFAM Brother from Another Mother BFAM Bioinformatics for the Analysis of Mammalian Genomes BFAM Budget Formulation & Appropriation Model ) today announced financial results for the quarter ended March 31, 2002. Net income increased 33% to $3.7 million, or $.29 per diluted share, in the quarter ended March 31, 2002, from $2.8 million, or $0.22 per diluted share, in the first quarter of 2001. Revenues for the quarter ended March 31, 2002 increased 16% to $94.5 million from $81.7 million for the same period in 2001. "We are very pleased with our first quarter results," commented David Lissy, Chief Executive Officer. "We posted record net income of $3.7 million, a 33% increase over last year's first quarter, despite the lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. weakness in the economy. Strong margin performance at the center level and a 16% increase in revenues over the previous year's quarter fueled the increase in earnings." "We added ten new centers this quarter," continued Lissy, "including our fourteenth center for JP Morgan Chase, our fourth center for Pfizer and our third center for Bayer. We also added centers for new clients such as the Lamont Doherty Earth Observatory at Columbia University Columbia University, mainly in New York City; founded 1754 as King's College by grant of King George II; first college in New York City, fifth oldest in the United States; one of the eight Ivy League institutions. , Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of Alabama, and the Western Pennsylvania Western Pennsylvania consists of the western third of the state of Pennsylvania in the United States. Pittsburgh is the largest city in the region, with a metropolitan area of about 2.4 million people, and is the cultural center for Western Pennsylvania. School for the Blind, and we now serve more than 325 clients in 400 centers around the world." The company closed two centers during the quarter. "I am also very pleased to announce today that we have entered into an agreement to acquire Red Apple Nurseries, a local child care provider in Scotland," added Lissy. "This acquisition, scheduled to close in the second quarter of 2002, will bring four of Scotland's premier child care centers into the Bright Horizons family and will add an important dimension to our ability to serve employers and families throughout the United Kingdom. The combination of Bright Horizons' experience with multinational clients and the local talent on the Red Apple team will be a powerful combination for Scotland's leading employers who seek customized solutions with a culturally attuned at·tune tr.v. at·tuned, at·tun·ing, at·tunes 1. To bring into a harmonious or responsive relationship: an industry that is not attuned to market demands. 2. approach. Upon completion of the acquisition, Bright Horizons will operate 14 centers in the UK and 3 in Ireland, including our first center for the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community in Dublin, which opened in April." "The importance of early childhood education was recently highlighted by President Bush in his Early Childhood Education Initiative," added Roger Brown, Executive Chairman. "I recently attended a White House conference where President Bush outlined this new initiative for ensuring that every child in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. enters school ready to learn. This is a goal that Bright Horizons has been actively supporting since our founding over 15 years ago. Through our Language Works! curriculum, we have been using a variety of proven techniques to help children develop literacy and a love of reading. We welcome this initiative as one more catalyst for high quality child care and early education." Bright Horizons Family Solutions will be hosting an investor conference call today at 4:30 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The public is invited to listen to the conference call by dialing 973-628-9554. Replays of the entire call will be available through Friday, May 3, 2002 at 973-341-3080 and entering pin code 3210509. Visit the Bright Horizons Family Solutions Web site at www.brighthorizons.com. Bright Horizons Family Solutions is the world's leading provider of employer-sponsored child care, early education and work/life consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , managing 400 child care and early education centers in the United States, Europe, Canada and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . Bright Horizons serves more than 325 clients, including 82 FORTUNE 500 companies and 48 of the "100 Best Companies for Working Mothers," as recognized by Working Mother magazine. Bright Horizons is one of FORTUNE magazine's "100 Best Companies to Work for in America." This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which involve a number of risks and uncertainties. Bright Horizons Family Solutions' actual results may vary significantly from the results anticipated in these forward-looking statements as a result of certain factors. These include the ability of the Company to 1) execute contracts relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc new commitments, 2) to enroll families in new as well as existing centers and 3) to open new centers for clients who control construction, and the impact of government tax and fiscal policies on employers considering work-site child care, as well as other factors that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2001.
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
3/31/2002 3/31/2001
Revenues $94,476 100.0% $81,736 100.0%
Cost of services 80,307 85.0% 69,518 85.1%
Gross profit 14,169 15.0% 12,218 14.9%
Selling, general and
administrative expenses 7,648 8.1% 6,766 8.3%
Amortization 109 0.1% 582 0.7%
Income from operations 6,412 6.8% 4,870 5.9%
Net interest income (expense) 23 0.0% (74) 0.0%
Income before income taxes 6,435 6.8% 4,796 5.9%
Income tax provision (2,717) -2.9% (2,007) -2.5%
Net income $3,718 3.9% $2,789 3.4%
Per share data:
Net income per share - basic $0.30 $0.23
Weighted average number
of common shares
outstanding 12,298 12,085
Net income per share - diluted $0.29 $0.22
Weighted average number
of common and common
equivalent shares 12,978 12,741
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