EXHIBIT 99.1
FOR IMMEDIATE RELEASE
INVESTOR CONTACT:
Elizabeth Boland: 617-673-8000
MEDIA CONTACT:
Ilene Hoffer: 617-673-8000
BRIGHT HORIZONS FAMILY SOLUTIONS REPORTS
THIRD QUARTER FINANCIAL RESULTS
BOSTON, MA - (October 23, 2003) - Bright Horizons Family Solutions, Inc.
(Nasdaq: BFAM) today announced financial results for the third quarter and nine
months ended September 30, 2003.
Earnings per diluted share of $0.37 in the quarter ended September 30, 2003
increased 28% from $0.29 per diluted share for the quarter ended September 30,
2002. Revenue for the third quarter increased 12% to $118.1 million from $105.4
million for the same quarter last year. Net income for the third quarter of
2003 increased 35% to $5.0 million from $3.7 million in the third quarter of
2002.
Earnings per diluted share of $1.11 for the nine months ended September 30,
2003 increased 26% from $0.88 per diluted share for the nine months ended
September 30, 2002. Revenue for the first nine months increased 16% to $347.5
million from $299.8 million for the same period last year. Net income for the
first nine months of 2003 increased 29% to $14.7 million from $11.4 million in
the first nine months of 2002.
"Our strong performance again this quarter reflects outstanding operational
performance across the board," said David Lissy, Chief Executive Officer. "I'm
proud of the way our team has executed consistently on our plan to achieve
modest expansion of our margins while maintaining our high quality standards.
All the while, we continue to grow our organization - adding new centers and
investing in the people and systems that will allow us to build on our
leadership position in our field."
Bright Horizons added nine new child care centers this quarter, including new
centers for CIGNA, Memorial Sloan-Kettering Cancer Center and Saint Joseph
Mercy Heath Systems of Michigan; in addition, the Company significantly
expanded its relationship with Microsoft, providing both full service and
back-up child care at a new location in Redmond, Washington. As previously
announced, the Company added four new elementary schools in the suburban
Detroit area through the acquisition of Brookfield Academy. At the end of the
third quarter, the Company operated 487 early care and education centers, with
the capacity to serve 57,500 children and families.
"I'm also very pleased to announce that we have acquired the contract to manage
the Marin Day Schools network of high-quality child care centers." The MDS
network is
comprised of 20 child care programs in the San Francisco Bay area including a
broad range of employers in the entertainment, high tech, health care and
consumer products industries, as well as city and county offices. "We have had
a great deal of respect for their team and their programs over the years,"
added Lissy. "Bright Horizons and MDS share a common mission and dedication to
excellence, and we believe that our combined expertise puts us in a clear
leadership position in providing high-quality early care and education to
children, families and employers in Northern California."
Bright Horizons Family Solutions will host an investor conference call today at
4:30 pm ET. The public is invited to listen to the conference call by dialing
973-582-2706. Replays of the entire call will be available through Friday,
November 7, 2003 at 973-341-3080, PIN# 4233450. The conference call will also
be webcast and can be accessed through the Investor Relations section of the
Bright Horizons Web site, www.brighthorizons.com. A copy of this press release
is also available on the Web site.
####
Bright Horizons Family Solutions is the world's leading provider of
employer-sponsored child care and early education, managing more than 487 early
care and education centers in the United States, Europe, Canada and the Pacific
Rim. Bright Horizons serves more than 400 clients, including 84 FORTUNE 500
companies and 50 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, 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 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 for the year ended December 31, 2002.
BRIGHT HORIZONS FAMILY SOLUTIONS NOTES
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Three months ended
------------------------------------------------------------
9/30/2003 9/30/2002
------------------------- -------------------------
Revenue $ 118,085 100.0% $ 105,385 100.0%
Cost of services 100,178 84.8% 90,459 85.8%
--------- ----- --------- -----
Gross profit 17,907 15.2% 14,926 14.2%
Selling, general and administrative expenses 9,122 7.7% 8,527 8.1%
Amortization 67 0.1% 102 0.1%
--------- ----- --------- -----
Income from operations 8,718 7.4% 6,297 6.0%
Net interest (expense) income (33) 0.0% 1 0.0%
--------- ----- --------- -----
Income before income taxes 8,685 7.4% 6,298 6.0%
Income tax provision (3,640) -3.1% (2,549) -2.4%
--------- ----- --------- -----
Net income $ 5,045 4.3% $ 3,749 3.6%
========= ===== ========= =====
PER SHARE DATA:
Net income per share - basic $ 0.39 $ 0.30
========= =========
Weighted average number of common
shares outstanding 12,839 12,421
========= =========
Net income per share - diluted $ 0.37 $ 0.29
========= =========
Weighted average number of common
and common equivalent shares 13,524 13,028
========= =========
SUPPLEMENTAL INFORMATION:
Earning before interest, taxes, $ 11,457 $ 8,772
depreciation and amortization (EBITDA)*
Reconciliation of net income to EBITDA:
Net income, as reported $ 5,045 $ 3,749
Add back income tax provision 3,640 2,549
Less net interest expense/income 33 (1)
--------- ---------
Income from operations 8,718 6,297
Add back depreciation 2,672 2,373
Add back amortization 67 102
--------- ---------
Earning before interest, taxes, $ 11,457 $ 8,772
depreciation and amortization (EBITDA)
* EBITDA is used as a financial performance indicator within the child
care industry and is presented for informational purposes only. EBITDA
is not a financial measure under generally accepted accounting
principles and may be subject to varying methods of calculation and
may not be comparable to other similarly titled measures by other
companies.
BRIGHT HORIZONS FAMILY SOLUTIONS
Selected Financial Information
(Unaudited)
(in thousands except per share data)
Nine months ended
------------------------------------------------------------
9/30/2003 9/30/2002
------------------------- -------------------------
Revenue $ 347,539 100.0% $ 299,815 100.0%
Cost of services 294,508 84.7% 255,763 85.3%
--------- ----- --------- -----
Gross profit 53,031 15.3% 44,052 14.7%
Selling, general and administrative expenses 27,572 7.9% 24,314 8.1%
Amortization 282 0.1% 285 0.1%
--------- ----- --------- -----
Income from operations 25,177 7.3% 19,453 6.5%
Net interest income 82 0.0% 36 0.0%
--------- ----- --------- -----
Income before income taxes 25,259 7.3% 19,489 6.5%
Income tax provision (10,559) -3.1% (8,063) -2.7%
--------- ----- --------- -----
Net income $ 14,700 4.2% $ 11,426 3.8%
========= ===== ========= =====
PER SHARE DATA:
Net income per share - basic $ 1.16 $ 0.92
========= =========
Weighted average number of common
shares outstanding 12,631 12,368
========= =========
Net income per share - diluted $ 1.11 $ 0.88
========= =========
Weighted average number of common
and common equivalent shares 13,261 13,032
========= =========
SUPPLEMENTAL INFORMATION:
Earning before interest, taxes, $ 33,194 $ 26,457
depreciation and amortization (EBITDA)*
Reconciliation of net income to EBITDA:
Net income, as reported $ 14,700 $ 11,426
Add back income tax provision 10,559 8,063
Less net interest income (82) (36)
--------- ---------
Income from operations 25,177 19,453
Add back depreciation 7,735 6,719
Add back amortization 282 285
--------- ---------
Earning before interest, taxes, $ 33,194 $ 26,457
depreciation and amortization (EBITDA)
* EBITDA is used as a financial performance indicator within the child
care industry and is presented for informational purposes only. EBITDA
is not a financial measure under generally accepted accounting
principles and may be subject to varying methods of calculation and
may not be comparable to other similarly titled measures by other
companies.