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
FOURTH QUARTER 2005 FINANCIAL RESULTS
BOSTON, MA -- (February 13, 2006) - Bright Horizons Family Solutions, Inc.
(Nasdaq: BFAM) today announced financial results for the fourth quarter ended
December 31, 2005.
Earnings per diluted share of $0.35 in the quarter ended December 31, 2005
increased 30% from $0.27 per diluted share for the quarter ended December 31,
2004. Revenue for the fourth quarter of 2005 increased 13% to $163.1 million
from $144.7 million for the same quarter last year. Net income for the fourth
quarter of 2005 increased 30% to $9.8 million from $7.6 million in the fourth
quarter of 2004.
Earnings per diluted share of $1.29 for the year ended December 31, 2005
increased 32% from $0.98 per diluted share for the year ended December 31, 2004.
Revenue for the full year 2005 increased 13% to $625.3 million from $551.8
million for the same period last year. Net income for the year increased 34% to
$36.7 million from $27.3 million in 2004.
"It was another strong year for Bright Horizons, and we are very pleased with
the results," commented David Lissy, Chief Executive Officer. "During 2005 we
added 72 new centers to our network in partnership with some of the world's
finest employers, including The GAP, Union Pacific, YUM! Brands, Schering
Plough, National City Bank, Unilever, and Huntington Bank. We also opened our
first center in Puerto Rico in partnership with Amgen, and added five centers in
the UK, including our 100th center outside the continental U.S. for the Royal
Bank of Scotland." The Company added three centers and closed three centers in
the fourth quarter of 2005 and, as of December 31, 2005, operated 616 early care
and education centers with the capacity to serve more than 66,300 children and
families.
"During 2005 we significantly expanded our network of back-up child care centers
with the acquisition of ChildrenFirst, adding 33 centers and more than 270
clients in the U.S., the UK and Canada. Bright Horizons is the leading provider
of back-up and emergency care with a network of 70 centers in three countries,
offering employers a broad range of locations and services tailored to meet
their employees' back-up and emergency child care needs," said Lissy.
"Of course, none of this would be possible without the passion and dedication of
our team of professionals," added Lissy. "For this reason, we were extremely
honored to be named one of FORTUNE magazine's '100 Best Companies to Work for in
America' for the 7th time and are proud to be in the company of such
forward-thinking employers, including more than 30 of our own clients. This
honor marks a fitting start to 2006, which Bright Horizons has designated as
'The Year of the Teacher'. During the year, we will be focusing attention on
early educators around the world and the important contributions they make
through their commitment to children, and their families, during the most
formative years of their lives. As an industry leader, we are committed to
raising the bar for standards of high-quality child care and education through
professional opportunities and lifetime learning for teachers."
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
713-481-0095. Replays of the entire call will be available through March 3, 2006
at 973-341-3080, PIN# 6926200. 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 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 616 early care and family centers in the United States, the
United Kingdom, Ireland and Canada. Bright Horizons serves more than 600
clients, including more than 90 FORTUNE 500 companies and 65 of the "100 Best
Companies" as recognized by Working Mother magazine. Bright Horizons is one of
FORTUNE magazine's "100 Best Companies to Work For."
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) enroll families
in new as well as existing centers, and 3) open new centers and integrate
acquisitions, as well as other factors that are discussed in detail in the
Company's filings with the Securities and Exchange Commission.
BRIGHT HORIZONS FAMILY SOLUTIONS
SELECTED FINANCIAL INFORMATION
(Unaudited)
(in thousands except per share data)
Three months ended
----------------------------------------------------
12/31/2005 12/31/2004
------------------------ ------------------------
Revenue $163,059 100.0% $144,662 100.0%
Cost of services 131,254 80.5% 119,580 82.7%
-------- ----- -------- -----
Gross profit 31,805 19.5% 25,082 17.3%
Selling, general and administrative expenses 14,727 9.0% 11,918 8.2%
Amortization 714 0.5% 214 0.1%
-------- ----- -------- -----
Income from operations 16,364 10.0% 12,950 9.0%
Net interest income 133 0.1% 176 0.1%
-------- ----- -------- -----
Income before income taxes 16,497 10.1% 13,126 9.1%
Income tax provision (6,654) -4.1% (5,558) -3.9%
-------- ----- -------- -----
Net income $ 9,843 6.0% $ 7,568 5.2%
======== ===== ======== =====
PER SHARE DATA:
- ---------------
Net income per share - basic $ 0.36 $ 0.28
======== ========
Weighted average number of common
shares outstanding 27,256 26,756
======== ========
Net income per share - diluted $ 0.35 $ 0.27
======== ========
Weighted average number of common
and common equivalent shares 28,429 28,110
======== ========
SUPPLEMENTAL INFORMATION:
- -------------------------
Earnings before interest, taxes,
depreciation and amortization (EBITDA)(a) $ 20,485 $ 16,201
Reconciliation of net income to EBITDA:
Net income, as reported $ 9,843 $ 7,568
Add back income tax provision 6,654 5,558
Less net interest income (133) (176)
-------- --------
Income from operations 16,364 12,950
Add back depreciation 3,407 3,037
Add back amortization 714 214
-------- --------
EBITDA $ 20,485 $ 16,201
(a) 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)
Twelve months ended
----------------------------------------------------
12/31/2005 12/31/2004
------------------------ ------------------------
Revenue $625,259 100.0% $551,763 100.0%
Cost of services 509,970 81.6% 459,810 83.3%
-------- ----- -------- -----
Gross profit 115,289 18.4% 91,953 16.7%
Selling, general and administrative expenses 52,717 8.4% 44,188 8.0%
Amortization 1,916 0.3% 1,012 0.2%
-------- ----- -------- -----
Income from operations 60,656 9.7% 46,753 8.5%
Net interest income 1,286 0.2% 343 0.0%
-------- ----- -------- -----
Income before income taxes 61,942 9.9% 47,096 8.5%
Income tax provision (25,241) -4.0% (19,768) -3.5%
-------- ----- -------- -----
Net income $ 36,701 5.9% $ 27,328 5.0%
======== ===== ======== =====
PER SHARE DATA:
- ---------------
Net income per share - basic $ 1.35 $ 1.03
======== ========
Weighted average number of common
shares outstanding 27,123 26,511
======== ========
Net income per share - diluted $ 1.29 $ 0.98
======== ========
Weighted average number of common
and common equivalent shares 28,392 27,846
======== ========
SUPPLEMENTAL INFORMATION:
- -------------------------
Earnings before interest, taxes,
depreciation and amortization (EBITDA)(a) $ 75,154 $ 59,110
Reconciliation of net income to EBITDA:
Net income, as reported $ 36,701 $ 27,328
Add back income tax provision 25,241 19,768
Less net interest income (1,286) (343)
-------- --------
Income from operations 60,656 46,753
Add back depreciation 12,582 11,345
Add back amortization 1,916 1,012
-------- --------
EBITDA $ 75,154 $ 59,110
(a) 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.