Bright Horizons Family Solutions Reports 39% Growth in Net Income; Technology Companies Embrace Y2K Child Care Initiative.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 21, 1999-- 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 and nine months ended September 30, 1999. Revenues for the third quarter increased 15% to $61.1 million from $53.2 million for the quarter ended September 30, 1998. Net income for the third quarter of 1999 increased 39% to $1.9 million, or $0.15 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $1.3 million, or $0.11 per diluted share, excluding merger costs of $5.4 million net of tax, or $0.48 per diluted share recorded in the quarter ended September 30, 1998. Revenues for the nine months ended September 30, 1999 increased 17% to $180.6 million from $154.3 million for the nine months ended September 30, 1998. Net income for the current nine-month period increased 38% to $5.9 million, or $0.46 per diluted share, from $4.2 million, or $0.34 per diluted share, for the nine months ended September 30, 1998, excluding the effects of non-recurring merger costs in 1998. "We are very pleased with the strong net income growth and the addition of 37 new centers over the past twelve months, including ten family centers opened this quarter," said Chief Executive Officer Roger Brown. "We closed four centers in the quarter in accordance with our plan to exit centers that cannot meet our threshold economic returns while sustaining our high quality standards." "We are excited to add America On-Line, Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. and Microsoft to our list of companies that will be using our "Y2Kids" program. "Y2Kids" provides round-the-clock child care during the changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. to the year 2000," Brown stated. "New family center commitments from Charles Schwab Charles Schwab can refer to:
Commented Brown, "We are now the dominant partner of the nations' leading technology companies who we believe will continue to rapidly embrace work-site child care as a way to find and keep the best and the brightest people despite fierce competition for talent. "I am also very enthusiastic about the creation of our new division, Bright Horizons Backup Solutions, the nation's largest provider of back-up child care at the work-site. Backup Solutions is headed up by Divisional Vice President Susan Brenner, Ed.D., a well-respected leader in the early childhood education field with over twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of experience in the field. Susan developed the first dedicated back-up center in the nation to be accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. , our first center for Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. in 1992, and has created programs for clients including Lands' End
During the quarter ended September 30, 1999, the Company repurchased a total of 325,000 shares, at an average price of $14.41 per share, under the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program announced in July 1999. In October 1999, the Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: an additional 750,000 shares for repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. , and the Company will continue to be active in the stock repurchase program from time to time in accordance with applicable securities regulations in open market or privately negotiated transactions. The actual number of shares purchased, the timing of purchases and the prices paid will depend on future market conditions. The shares repurchased will be available for use under the Company's Stock Option Plan to minimize dilution to existing shareholders. Bright Horizons Family Solutions is the nation'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" and was recently honored by the Child Care Action Campaign for its pioneering role in improving the quality of child care in the nation. The company manages 291 family centers for more than 220 clients in 34 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Among Bright Horizons Family Solutions' clients are many of the nation's leading companies, including 68 Fortune 500 companies and 42 of the "100 Best Companies for Working Mothers," as recognized by Working Mother magazine. Bright Horizons Family Solutions commenced operations on July 24, 1998, upon completion of the merger of Bright Horizons (formerly Nasdaq: BRHZ) and CorporateFamily Solutions (formerly Nasdaq: CFAM CFAM Cerebral Function Analysis Monitor CFAM Cash Flow After Marketing (costs; finance, accounting) CFAM Contingency Force Analysis Model (military simulation model) ). Visit the Bright Horizons Family Solutions website at www.brighthorizons.com. 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 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, 1998. -0-
Bright Horizons Family Solutions
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
9/30/99 9/30/98
Revenues $61,139 100.0% $53,161 100.0%
Cost of services 52,774 86.3% 46,272 87.0%
Gross profit 8,365 13.7% 6,889 13.0%
Selling, general and
administrative expenses 5,172 8.5% 4,742 8.9%
Amortization 229 0.4% 172 0.4%
Other charges (1) 0 0.0% 7,500 14.1%
Income (loss) from operations 2,964 4.8% (5,525) -10.4%
Net interest income 211 0.4% 317 0.6%
Income (loss) before income taxes 3,175 5.2% (5,208) -9.8%
Income tax (provision) benefit (1,299) -2.1% 1,159 2.2%
Net income (loss) $1,876 3.1% ($4,049) -7.6%
Per share data:
Net income (loss) per share - basic $ 0.15 $ (0.36)
Weighted average number of common
shares outstanding 12,104 11,207
Net income (loss) per share - diluted $ 0.15 $ (0.36)
Weighted average number of common and
common equivalent shares 12,608 11,207
Pro forma information:
Pro forma net income excluding
non-recurring item $1,876 $1,345
Pro forma net income
per share - diluted $ 0.15 $ 0.11
Weighted average number of common
and common equivalent shares 12,608 12,328
Nine months ended
9/30/99 9/30/98
Revenues $180,560 100.0% $154,336 100.0%
Cost of services 154,957 85.8% 133,275 86.4%
Gross profit 25,603 14.2% 21,061 13.6%
Selling, general and
administrative expenses 15,566 8.6% 14,094 9.1%
Amortization 675 0.4% 706 0.5%
Other charges (1) - 0.0% 7,500 4.8%
Income (loss) from operations 9,362 5.2% (1,239) -0.8%
Net interest income 567 0.3% 935 0.6%
Income (loss) before income taxes 9,929 5.5% (304) -0.2%
Income tax provision (4,069) -2.3% (853) -0.5%
Net income (loss) $5,860 3.2% ($1,157) -0.7%
Per share data:
Net income (loss) per share - basic $ 0.49 $ (0.10)
Weighted average number of common
shares outstanding 11,996 11,099
Net income (loss) per share - diluted $ 0.46 $ (0.10)
Weighted average number of common and
common equivalent shares 12,699 11,099
Pro forma information:
Pro forma net income excluding
non-recurring item $5,860 $4,237
Pro forma net income
per share - diluted $ 0.46 $ 0.34
Weighted average number of common and
common equivalent shares 12,699 12,391
(1) In July 1998, the Company completed its previously announced merger between CFAM and BRHZ. Costs associated with the merger have been included as a charge in the operating results of the third quarter of 1998. |
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