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 2004 FINANCIAL RESULTS
BOSTON, MA - (October 26, 2004) - Bright Horizons Family Solutions, Inc.
(Nasdaq: BFAM) today announced financial results for the third quarter ended
September 30, 2004.
Earnings per diluted share of $0.49 in the quarter ended September 30, 2004
increased 32% from $0.37 per diluted share for the quarter ended September 30,
2003. Revenue for the third quarter increased 18% to $139.0 million from $118.1
million for the same quarter last year. Net income for the third quarter of 2004
increased 34% to $6.8 million from $5.0 million in the third quarter of 2003.
Earnings per diluted share of $1.42 for the nine months ended September 30, 2004
increased 28% from $1.11 per diluted share for the nine months ended September
30, 2003. Revenue for the first nine months of 2004 increased 17% to $407.1
million from $347.5 million for the same period last year. Net income for the
first nine months of 2004 increased 34% to $19.8 million from $14.7 million in
the first nine months of 2003.
Bright Horizons added 31 new centers this quarter to its network of early
education and family centers in the U.S., UK, Ireland and Canada. New additions
this quarter included Symbol Technology in New York, Virginia Mason Medical
Center in Seattle, the sixth center for USAA in Phoenix, the second center for
Cambridge University in England, and the national network of family centers for
UAW-Ford. The Company closed one center in the third quarter and, as of
September 30, 2004, operated 555 early care and family centers with the
capacity to serve more than 61,500 children and families.
"Our strong performance again this quarter is a direct result of our ability to
consistently provide high quality and innovative solutions while successfully
managing the day-to-day operations at our network of centers in 39 states and 4
countries," said David Lissy, Chief Executive Officer of Bright Horizons. "We
are truly pleased with these results, and are proud of the hard work and
dedication of our entire family of employees - it is their efforts and
contributions that allow us to deliver on our mission to help children,
families, and employers work together to be their very best."
"We are very proud of our 53 clients who were recently recognized by Working
Mother magazine among the 2004 "100 Best Companies for Working Mothers",
including 9 of the top 10 companies," continued Lissy. This annual recognition
highlights leading employers who have demonstrated a significant commitment to
providing workplaces that embrace working mothers, who as a group have been the
single fastest growing segment of the American workforce since 1980. "These
outstanding employers recognize that providing quality work-site child care and
other programs that help employees better integrate the challenges of work and
life are key to their business success," added Lissy.
Bright Horizons Family Solutions will host an investor conference call today at
4:30 pm EDT. The public is invited to listen to the conference call by dialing
713-481-0086. Replays of the entire call will be available through Friday,
November 12, 2004 at 973-341-3080, PIN# 5270306. 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, early education and work/life consulting
services, managing more than 550 early care and family centers in the United
States, the United Kingdom, Ireland and Canada. Bright Horizons serves more than
400 clients, including more than 80 FORTUNE 500 companies and more than half 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, 2003.
BRIGHT HORIZONS FAMILY SOLUTIONS
SELECTED FINANCIAL INFORMATION
(Unaudited)
(in thousands except per share data)
Three months ended
------------------------------------------------
9/30/2004 9/30/2003
--------------------- ---------------------
Revenue $ 138,954 100.0% $ 118,085 100.0%
Cost of services 116,025 83.5% 100,178 84.8%
--------- ------ --------- ------
Gross profit 22,929 16.5% 17,907 15.2%
Selling, general and administrative expenses 10,991 7.9% 9,122 7.7%
Amortization 354 0.3% 67 0.1%
--------- ------ --------- ------
Income from operations 11,584 8.3% 8,718 7.4%
Net interest income (expense) 72 0.1% (33) 0.0%
--------- ------ --------- ------
Income before income taxes 11,656 8.4% 8,685 7.4%
Income tax provision (4,877) -3.5% (3,640) -3.1%
--------- ------ --------- ------
Net income $ 6,779 4.9% $ 5,045 4.3%
========= ====== ========= ======
PER SHARE DATA:
Net income per share - basic $ 0.51 $ 0.39
========= =========
Weighted average number of common
shares outstanding 13,300 12,839
========= =========
Net income per share - diluted $ 0.49 $ 0.37
========= =========
Weighted average number of common
and common equivalent shares 13,941 13,524
========= =========
SUPPLEMENTAL INFORMATION:
Earnings before interest, taxes,
depreciation and amortization (EBITDA)* $ 14,737 $ 11,485
Reconciliation of net income to EBITDA:
Net income, as reported $ 6,779 $ 5,045
Add back income tax provision 4,877 3,640
Less net interest income (expense) (72) 33
--------- ---------
Income from operations 11,584 8,718
Add back depreciation 2,799 2,700
Add back amortization 354 67
--------- ---------
EBITDA $ 14,737 $ 11,485
* 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
----------------------------------------------
9/30/2004 9/30/2003
-------------------- --------------------
Revenue $ 407,101 100.0% $ 347,539 100.0%
Cost of services 340,230 83.6% 294,508 84.7%
--------- ----- --------- -----
Gross profit 66,871 16.4% 53,031 15.3%
Selling, general and administrative expenses 32,270 7.9% 27,572 7.9%
Amortization 798 0.2% 282 0.1%
--------- ----- --------- -----
Income from operations 33,803 8.3% 25,177 7.3%
Net interest income 167 0.0% 82 0.0%
--------- ----- --------- -----
Income before income taxes 33,970 8.3% 25,259 7.3%
Income tax provision (14,210) -3.4% (10,559) -3.1%
--------- ----- --------- -----
Net income $ 19,760 4.9% $ 14,700 4.2%
========= ===== ========= =====
PER SHARE DATA:
Net income per share - basic $ 1.50 $ 1.16
========= ==========
Weighted average number of common
shares outstanding 13,214 12,631
========= ==========
Net income per share - diluted $ 1.42 $ 1.11
========= ==========
Weighted average number of common
and common equivalent shares 13,879 13,261
========= ==========
SUPPLEMENTAL INFORMATION:
Earnings before interest, taxes,
depreciation and amortization (EBITDA)* $ 42,898 $ 33,181
Reconciliation of net income to EBITDA:
Net income, as reported $ 19,760 $ 14,700
Add back income tax provision 14,210 10,559
Less net interest income (167) (82)
--------- ----------
Income from operations 33,803 25,177
Add back depreciation 8,297 7,722
Add back amortization 798 282
--------- ----------
EBITDA $ 42,898 $ 33,181
* 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.