CorporateFamily Solutions Reports Earnings of $0.10 Per Share for the Fourth Quarter of 1997; Net Income Rises 73% to $527,000.NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 18, 1998--Marguerite W. Sallee, president and chief executive officer of Coreased 28% to $21,588,000 for the latest 14-week income of $304,000, or $0.09 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, for the comparable period in 1996. Diluted weighted average o $1,401,000 from $811,000. Adjusted diluted earse of $297,000 for 19 97 and to reflect an effecCenters for clients including Boeing, MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) Ameriinues to be strong, which our fourth quarter ret with other 13-week quarters. Growth in existinayment of all the company's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and thte this growth trend to continue, and we are well positioned to meet the increasing demand for family services. We believe President Clinton's historic child care proposal will receive bipartisan support and will increase corporate America's awareness of the importance of assisting with employees' family needs. The proposed tax credits for corporations that offer child care assistance should stimulate new companies to provide family services. "CorporateFamily Solutions continues to implement its growth strategies successfully. In the fourth quarter, we received commitments from three new clients for three Family Centers. CorporateFamily Solutions took over the management of an existing center for St. Mary's Medical Center St. Mary's Medical Center may refer to:
"In addition, CorporateFamily Solutions broadened the range of services to its clients during the fourth quarter through the acquisition of Schools At Work, a national educational consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in the development of public and private work-site schools. We believe work-site schools offer a significant, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth opportunity for the company. We have development projects underway for two clients, and a number of existing and prospective clients have expressed an interest in work-site schools. "CorporateFamily Solutions also experienced growth in its non- non- word element [L.]not . non- pref. Not: noninvasive. center based services by adding special school-age back-up care programs during holidays and snow days for three new clients: GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) , Summit Bank and Covance. These programs are an excellent example of providing services to clients without a significant capital investment on their part." Ms. Sallee concluded, "Looking forward in 1998, we have 16 new Family Centers under various stages of construction, nine for new clients and seven for existing clients. Our sales pipeline of prospects for additional new Family Centers remains strong, and we are continuing discussions with our existing clients to identify additional sites and more ways we can support their business strategies. As a result, we are confident of the company's prospects for further profitable growth." CorporateFamily Solutions, Inc. is a leading national provider of services for the corporate market that support families and business success. The company works with more than 100 employers seeking to create a "family friendly" work environment by providing workplace child care, education, family support programs and 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" . The company currently manages 95 employer-sponsored Family Centers for 70 corporate clients in 28 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 CorporateFamily Solutions' clients are many of the nation's leading companies, including 35 of the "Fortune 500" companies and 23 of the "100 Best Companies for Working Mothers", as recognized by Working Mother magazine. This press release contains historical and forward-looking information. The 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. are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate and, therefore, actual results may differ materially from those projected in the forward-looking statements due to certain risks and uncertainties, including, but not limited to, the "Risk Factors" section in the registration Statement on Form S-1 dated August 12, 1997. Among the factors that could cause actual results to differ materially are competitive pressures, loss of client relationships, changing economic conditions, acquisitions, new Family Center development, governmental regulations and a reduction of market acceptance of work and family services. The company undertakes no obligation to publicly release any revision to any forward-looking statement contained herein to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date released or to reflect the occurrence of unanticipated events. -0-
CorporateFamily Solutions, Inc. and Subsidiary
Unaudited Financial Highlights
(in thousands, except per share and selected operating data)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
January 2, December 27, January 2, December 27
1998 1996 1998 1996
------- ------- ------- -------
As Reported
-----------
Revenue $21,588 $16,863 $77,722 $62,926
Net income $ 527 $ 1,782 $ 1,104 $ 2,736
Earnings per share:
Basic $ 0.12 $ 0.93 $ 0.39 $ 1.44
Diluted $ 0.10 $ 0.55 $ 0.28 $ 0.85
Weighted average common
shares outstanding:
Basic 4,476 1,908 2,841 1,903
Diluted 5,220 3,232 3,995 3,227
Adjusted
--------
Net income $ 527 $ 304(1) $ 1,401(2) $ 811(1)
Earnings per share:
Basic $ 0.12 $ 0.16(1) $ 0.49(2) $ 0.43(1)
Diluted $ 0.10 $ 0.09(1) $ 0.35(2) $ 0.25(1)
Selected Operating Data (at end of period)
Family Center clients 70 65
Family Centers open 95 85
Family Centers under development 16 7
(1) The Company did not incur any federal income tax expense for the
period as a result of a reduction of valuation allowances to
utilize net operating loss carryforwards. Assumes an effective
tax rate of approximately 48%.
(2) Excludes the effect of a one time, non-tax deductible expense of
$297 relating to the removal of restrictions on a restricted
common stock grant issued in 1996.
CONTACT: CorporateFamily Solutions Inc., Nashville Michael E. Hogrefe, 615/256-9915 |
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