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Bright Horizons Family Solutions (BFAM)

Bright Horizons® is a leading global provider of high-quality child care and early education, back-up care, and workplace education services. For more than 30 years, the company has partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Bright Horizons operates approximately 1,000 child care centers in the United States, the United Kingdom, the Netherlands, and India, and serve more than 1,300 of the world's leading organizations. Bright Horizons' child care centers, back-up child and elder care, and workforce education programs, including tuition program management, education advising, and student loan repayment, help employees succeed at each life and career stage.

Company profile

Ticker
BFAM
Exchange
CEO
Stephen Howard Kramer
Employees
Incorporated
Location
Fiscal year end
Former names
BRIGHT HORIZONS SOLUTIONS CORP
SEC CIK
Subsidiaries
Bright Horizons Capital Corp. • Bright Horizons Family Solutions LLC • Choice Sitter Solutions LLC • Apex Insurance Inc. • CorporateFamily Solutions LLC • Bright Horizons LLC • Bright Horizons Children’s Centers LLC • ChildrenFirst LLC • Edlink, LLC. • Hildebrandt Learning Centers, LLC ...

BFAM stock data

Calendar

5 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 276.68M 276.68M 276.68M 276.68M 276.68M 276.68M
Cash burn (monthly) (no burn) 12.7M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 38.96M n/a n/a n/a n/a
Cash remaining n/a 237.72M n/a n/a n/a n/a
Runway (months of cash) n/a 18.7 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
5 Aug 22 Rosamund Marshall Common Stock Grant Acquire A No No 0 5,000 0 12,500
22 Jun 22 Richie Laurel Common Stock Grant Acquire A No No 0 1,299 0 3,708
22 Jun 22 Lawrence Lightfoot Sara Common Stock Grant Acquire A No No 0 1,299 0 6,717
22 Jun 22 Hitch Jordan Common Stock Grant Acquire A No No 0 1,299 0 7,717
19.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 307 335 -8.4%
Opened positions 50 35 +42.9%
Closed positions 78 42 +85.7%
Increased positions 114 153 -25.5%
Reduced positions 109 93 +17.2%
13F shares Current Prev Q Change
Total value 115.29B 7.96B +1347.6%
Total shares 59.01M 59.52M -0.9%
Total puts 18.3K 18.4K -0.5%
Total calls 15.7K 47.9K -67.2%
Total put/call ratio 1.2 0.4 +203.4%
Largest owners Shares Value Change
TROW T. Rowe Price 9.64M $815.07M +9.8%
Vanguard 5.28M $446.27M -1.0%
Massachusetts Financial Services 4.07M $344.27M +32.2%
JPM JPMorgan Chase & Co. 3.76M $317.92M +8.2%
Brown Advisory 2.8M $236.38M +22.8%
Bamco 2.59M $219.32M +3.4%
BLK Blackrock 2.37M $200.16M -20.0%
Kayne Anderson Rudnick Investment Management 1.94M $163.65M -4.1%
Capital World Investors 1.51M $127.6M +138.2%
William Blair Investment Management 1.36M $114.88M -20.9%
Largest transactions Shares Bought/sold Change
Select Equity 0 -1.12M EXIT
Massachusetts Financial Services 4.07M +991.55K +32.2%
Capital World Investors 1.51M +876.04K +138.2%
TROW T. Rowe Price 9.64M +864.49K +9.8%
PFG Principal Financial Group Inc - Registered Shares 6.72K -690.11K -99.0%
BLK Blackrock 2.37M -591.55K -20.0%
Brown Advisory 2.8M +518.84K +22.8%
Sands Capital Management 0 -493.8K EXIT
Candlestick Capital Management 450K +450K NEW
AMP Ameriprise Financial 869.9K -398.8K -31.4%

Financial report summary

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Risks
  • The global COVID-19 pandemic has significantly disrupted our business and our financial condition and operating results and will continue to adversely impact our business.
  • Vaccine and workplace safety mandates or guidance proposed or implemented by federal, state or local governments, or by clients, could disrupt the Company’s operations, increase costs and adversely affect its business, financial condition, or results of operations.
  • Our business depends largely on our ability to hire and retain qualified teachers and maintain strong employee relations.
  • Changes in the demand for child dependent care, and workplace solutions, which may be negatively affected by demographic trends and economic conditions, may affect our operating results.
  • Because our success depends substantially on the value of our brands and reputation as a provider of choice, adverse publicity or negative perceptions about our business could impact the demand for our services.
  • Breaches in data security and other information technology interruptions or system failures could adversely affect our financial condition and operating results.
  • Our collection, use, storage, disclosure, transfer and other processing of personal information could give rise to significant costs and liabilities, including as a result of governmental regulations, uncertain or inconsistent interpretation and enforcement of legal requirements or differing views of personal privacy rights, which may have a material adverse effect on our reputation, business, financial condition and results of operation.
  • Our continued profitability depends on our ability to pass on our increased costs, such as labor and related costs, to our customers.
  • Changes in our relationships with employer sponsors or failure to anticipate and respond to changing client and customer (parents or client employees) preferences and expectations or develop new customer-oriented services may affect our operating results.
  • We depend on key management and key employees to manage our business.
  • Our operating results are subject to seasonal fluctuations.
  • Health pandemics, natural disaster, sociopolitical or other catastrophic event could severely disrupt our business.
  • Our substantial indebtedness could adversely affect our financial condition.
  • The terms of our indebtedness restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
  • A permanent shift in workforce demographics and office environments may result in decreased demand for center-based child care and have an adverse effect on our results of operations.
  • The growth of our business may be adversely affected if we do not implement our growth strategies and initiatives successfully or if we are unable to manage our growth or operations effectively.
  • Acquisitions present many risks and may disrupt our operations. We also may not realize the financial and strategic goals that were contemplated at the time of the transaction.
  • Significant competition in our industry could adversely affect our results of operations.
  • Governmental universal child care benefit programs could reduce the demand for our services.
  • Our business activities subject us to litigation risks that may lead to significant reputational damage, monetary damages and other remedies and increase our litigation expense.
  • Significant changes to the availability of, or increases in the cost of, insurance or our deductibles may negatively affect our profitability.
  • Changes in laws and regulations could impact the way we conduct business.
  • Our tax rate is dependent on a number of factors, a change in any of which could impact our future tax rates and net income.
  • The success of our operations in international markets is highly dependent on the expertise of local management and operating staff, as well as the political, social, legal and economic operating conditions of each country in which we operate.
  • Our business is exposed to fluctuations in foreign currency exchange rates, which could adversely impact our results.
  • We cannot guarantee that we will repurchase our common stock pursuant to our stock repurchase program or that our stock repurchase program will enhance long-term stockholder value. Stock repurchases could also increase the volatility of the price of our common stock and could diminish our cash reserves.
  • Our stock price could be extremely volatile, and, as a result, you may not be able to resell your shares at or above the price you paid for them.
  • Your percentage ownership may be diluted by future issuances of capital stock, which could reduce your influence over matters on which stockholders vote.
  • Provisions in our charter documents and Delaware law may deter takeover efforts that could be beneficial to stockholder value.
  • Our certificate of incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
Management Discussion
  • (1)Adjusted EBITDA, adjusted income from operations and adjusted net income are non-GAAP financial measures and are not determined in accordance with accounting principles generally accepted in the United States (“GAAP”). Refer to “Non-GAAP Financial Measures and Reconciliation” below for a reconciliation of these non-GAAP financial measures to their respective measures determined under GAAP and for information regarding our use of non-GAAP financial measures.
  • (1)Adjusted EBITDA, adjusted income from operations and adjusted net income are non-GAAP financial measures and are not determined in accordance with accounting principles generally accepted in the United States (“GAAP”). Refer to “Non-GAAP Financial Measures and Reconciliation” below for a reconciliation of these non-GAAP financial measures to their respective measures determined under GAAP and for information regarding our use of non-GAAP financial measures.
  • Revenue generated by the full service center-based child care segment in the three months ended June 30, 2022 increased by $36.9 million, or 11%, when compared to the same period in 2021. Revenue growth in this segment was primarily attributable to enrollment increases in our open child care centers and from the re-opening of our temporarily closed centers. Tuition revenue increased by $38.8 million, or 13%, when compared to the prior year, on a 16% increase in enrollment. While enrollment in our centers continues to improve, our centers continue to operate below pre-COVID-19 enrollment levels as the ongoing disruption of the pandemic and labor market challenges have slowed the recovery and impacted occupancy levels. We expect continued occupancy improvement throughout 2022 and into 2023. Additionally, during the three months ended June 30, 2022, $1.4 million was received from government programs related to tuition support and was recorded to revenue. Lower foreign currency exchange rates for our United Kingdom and Netherlands operations partially offset our revenue growth, which decreased 2022 tuition revenue by approximately 4%, or $12.6 million. Management fees and operating subsidies from employer sponsors decreased by $1.9 million, or 5%, primarily due to funding received from government support programs that reduced certain center operating costs, which impacted the related operating subsidies. During the three months ended June 30, 2022 and 2021, funding received from government support programs of $6.5 million and $2.8 million, respectively, reduced the operating subsidy revenue due from employers.

Content analysis

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H.S. junior Avg
New words: criteria, dollar, guarantee, lock, realized, turn
Removed: fiscal, issued, January, LP, prevent, spread