Childtime Learning Centers reports its financial results for the third fiscal quarter ended January 3, 1997.FARMINGTON HILLS Far·ming·ton Hills A city of southeast Michigan, an industrial suburb of Detroit. Population: 81,400. , Mich.--(BUSINESS WIRE)--Feb. 10, 1997-- Childtime Learning Centers (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTIM CTIM Coupled Thermosphere Ionosphere Model ) today announced its third quarter financial results for the period ended January January: see month. 3, 1997. The company reported record third quarter revenues of $17,622,000 for the twelve weeks ended January 3, 1997, a 17% increase over last year's third quarter revenues of $15,052,000 for the twelve weeks ended January 5, 1996. For the forty weeks ended January 3, 1997, revenues were $58,337,000, a 19% increase over last year's revenues of $49,002,000 for the forty weeks ended January 5, 1996. As previously reported and further discussed below, the company experienced softer than expected fall enrollment in certain regional markets. Accordingly, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the twelve weeks ended January 3, 1997 decreased 16% to $931,000 from $1,107,000 for the twelve weeks ended January 5, 1996. However, year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. operating income increased 4% to $4,111,000 for the forty weeks ended January 3, 1997, compared to $3,957,000 (which excludes a $612,000 land valuation write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. ) for the forty weeks ended January 5, 1996. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share was 12 cents for the twelve weeks ended January 3, 1997 (which excludes an 11 cent per share tax benefit resulting from a settlement with the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. and the reversal of a liability established for this matter), as compared to 14 cents pro forma earnings per share, as defined below, for the twelve weeks ended January 5, 1996, a 14% decrease. For the forty weeks ended January 3, 1997, pro forma earnings per share was 50 cents (which excludes an 11 cent per share tax benefit resulting from a settlement with the IRS and the reversal of a liability established for this matter) as compared to 48 cents pro forma earnings per share, as defined below, for the forty weeks ended January 5, 1996, a 4% increase. Prior year's earnings per share data is presented on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis to reflect the company's initial public offering in February February: see month. , 1996 of 1,930,000 shares, use of proceeds, interest income generated from related cash flow, and the termination of certain expenses concurrent with the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , as if the offering had occurred April 1, 1995. Pro forma earnings per share, for both the twelve-week and forty-week periods ended January 5, 1996, have also been adjusted to exclude a previously disclosed one-time charge of 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. to reduce the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of land held for disposal to its net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . Commenting on the announcement, Childtime Chief Executive Officer and President, Harold Lewis said, "We are pleased with our third quarter results. The overall growth in centers has surpassed our expectations, and reflects our aggressive pace of acquisitions. As anticipated and previously reported in the company's second quarter earnings release, the company experienced softer than expected enrollment in certain regional markets. As expected, this impacted the entire third quarter results. However, we are encouraged by the overall results of the winter enrollment trends." Lewis added "Our management team set a goal to add 25 to 30 centers in fiscal year 1997. By the end of the third quarter, we had already achieved this goal by adding 7 centers in the first quarter, and 10 centers in both the second and third quarters. In addition to these 27 centers, the company has added 10 centers to-date in the fourth quarter, bringing the current fiscal year 1997 total additions to 37." The company, which went public on February 2, 1996, has experienced significant growth in the past three years, expanding from a base of 128 centers, to 211 centers as of today. The company's growth strategy encompasses the development of child care centers, both in traditional residential communities as well as at-work centers within businesses, office parks and hospitals. Childtime, the nation's fifth largest child care provider, employs over 4,000 professional educators and child care providers, and provides a vital service to approximately 20,000 children and their parents in 15 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). . -0-
(in thousands, except per share data)
Twelve weeks ended Forty weeks ended
__________________ _________________
1/3/97 1/5/96 1/3/97 1/5/96
_______ _______ _______ _______
Net revenues $17,622 $15,052 $58,337 $49,002
Operating
income (1) $ 931 $ 1,107 $ 4,111 $ 3,957
Pro forma net
income(1)(2)(3) $ 628 $ 751 $ 2,729 $ 2,582
Pro forma average
shares(2) 5,429 5,429 5,429 5,429
Pro forma E.P.S.
(1)(2)(3) $ 0.12 $ 0.14 $ 0.50 $ 0.48
(1) Prior year operating income has been adjusted to exclude a
previously disclosed one-time charge of $612,000 to reduce the
carrying value of land held for disposal to its net realizable value
for the 40 weeks ended January 5, 1996. Prior year pro forma net
income has been adjusted to exclude a previously disclosed one-time
charge of $612,000 to reduce the carrying value of land held for
disposal, net of a $245,000 tax benefit, to its net realizable value
for the 40 weeks ended January 5, 1996.
(2) Prior year pro forma net income, average shares and earnings per
share data reflect the company's initial public offering, including
use of proceeds, interest income generated from related cash flow
and the termination of certain expenses concurrent with the offering
of 1,930,000 shares of common stock, as if the offering had occurred
April 1, 1995.
3) As the result of recently enacted legislation, the tax treatment
of certain expenses incurred by the company in connection with an
acquisition, for which deductibility had been challenged by the IRS,
was clarified. Accordingly, the company and the IRS reached an
agreement, which resulted in a $600,000 tax benefit in the third
quarter of fiscal 1997 from the reversal of a liability established
for this matter. Current year pro forma net income and earnings per
share information have been adjusted to exclude the impact of this
benefit.
CONTACT: Childtime Learning Centers, Inc., Farmington Hills Mike Yeager, 810/476-3200, fax: 810/476-1168 |
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