BFAM - Earnings call transcript Q1 2019 | Bright Horizons Family Solutions Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Bright Horizons First Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now like to turn the conference over to your host, Elizabeth Boland, Chief Financial Officer. Thank you, you may begin.

Elizabeth Boland

Thanks, Kevin, and hello to everybody on the call today. call Lissy, Kramer, our the Officer; Chief on Dave and Executive me are our Stephen Executive With Chair.

being matters. Before Stephen, I the call Investor administrative website of available let to the is Today's brighthorizons.com. me cover Relations will turn off a under it be webcast, and over our recording section few

in reminder on are those included including financial performance earnings this subject statement to the our regarding any Harbor statements forward-looking participants, a call, As that made Safe to are release. future that's

Forward-looking involve actual and and to obligation that operating and of detail XX-K. uncertainties and described forward-looking as any date materially update only Form in the are made, statements we differ Any on risks undertake inherently speaks it's statements. may forward-looking our XXXX no financial cause results they statements in to which

today and detailed earnings the refer our which also in reconciled which website. to to IR is non-GAAP measures, our GAAP available under counterparts of release, financial are We section their

will Stephen business. the now update and So through Stephen? of the takes us review

Stephen Kramer

Elizabeth. evening. Great. this you have of who thanks all to us again joined And Thanks

As past always Elizabeth you up and numbers before a call, up your on our it financial for for on quarter outlook plans more questions. growth and update review will results for then review of the and XXXX. our operating today's follow detailed this with I'll we open

the pleased very with start strong to are We XXXX.

York. with Waste and client center reporting X% backup segment, a second topline launches For for center In backup care the $XXX of Technologies. six full center portfolio XX%. are an and of added growth and of our our we recent quarter lease/consortium we centers our $X.XX, adjusted in LX of New increase Greenwich first Village, year expanded this Barclays We ADP, million Management including to for EPS service

launching past Aurora We advisory and base services Fisher. to quarter, also our education Thermo this client Care for added Health

within opportunities and base. excited our to about be cross-promotion also the very continue existing We cross-selling client

than our less our shared with Chick-fil-A from of We've full solutions our the one service, begun case became a of we have in this moving backup to purchase end-user care a and realize quarter also calls, of on of childcare the prior programs services. to our multi-service to client As making of marketing year. single a speed example than we the improve have more clients this currently the earlier service launch the benefits and client in targeted experience. technology been investments latest

Rolls first also basis line rates their growth expanded quarter example In such increased others in over initiatives, quarter, income provider backup instantly to Horizons extend growth, outreach positioned our in other transaction be we solid We the operating backup our In continue we continue operating UK. growth top to acquire client Family strategic their and base time. reservations as this strong with of being adjusted we continue innovative the in and that market are care organization an leverage My in family drive the choice, over is other of first well open Family services relationship and along should these and our UK. off-market. This once employers We leading acquired consistent our building made emerging and business. welcome rolled the Together, the for mobile deliver fully highly by founders acquirer Care, Royce. the of results the of time support XX enabled us Virgin and to leading asset Care regarded of the percentage web a to Atlantic in and an of including, operating a points. position care Bright across the our great to activity journeys. personalized Tracking leadership booked. employers the These team out platform reservations really progress exemplified pleased The with mix of on initiatives and My to talented

We full to newer including our service leverage centers that are levels. lease/consortium and centers operating enrollment gains mature to continue in ramping client

We also in had with coupled that backup utilization My from operations. And strong this in the segment. Family strong the Care drove our contributions performance

on. growth Now areas on I'll briefly touch the strategic we're focused

of all As momentum business. aspects midpoint so we the we good across of do approach our with XXXX,

and in focused use on each new First, additional our growth cross-sells continues and clients. The with existing strategy relationships, remain sales current our services interest our organic pipelines industries of clients client across strong, existing expanding cultivating be both and and to new of through services. with

Second, lease/consortium centers.

the of a a limited supply client have needs of our component our centers XXXX target urban growth been settings on we always concentrated our of see focus As partners. reminder, plan. population our to quality a demographic, opportunities meet Since these has and where of a of strong been childcare select types high

of years. over these last XX six opened have plus centers We the

continue mature and creation ramp from the levels We as significant opportunity this of we be strategy. the progress to operating of they pleased very and are to contribution centers value group positive by about this optimistic

our Finally, primary a solid and good networks with of continue regard centers. a to single to each we pipeline geographies, of M&A, prospects of mix acquisition three in cultivate including

our backup opportunities time-to-time our have to to Care like advising that education Family acquire or businesses add segments. from we non-center addition, My In

XXXX expect plans this history years of a plan in element As they the our a growth have solid and throughout in be approach puts together, to key beyond. acquisitions Taking our our continue us position ahead. multichannel to growth to in we achieve

sum about things. final share I two excitement up, Before my want to I

unique nearly we few that Horizons Best employers Magazine's Facebook the feel the work of work leading passion a employers even to with including HR one at time. more Bright proud HR families, weeks in allows once lines, those capabilities has Bright very privilege and I Along XXX of After every our XX,XXX Amgen energized stories day challenges leaders, many Horizons clients, prospects shared market to we the Bay First, their a XXX has assist the have attendance. about with always clients XXth be perpetuate so was hard of employer been strong the of Summit the professionals for to today's Area Fortune cutting Senior great all being Horizons the the place and opportunity to and will Companies meet lives our workforce. expertise to and collectively For, to We from and optimistic been also Bright have solve our and those serve. again to our from the a opportunity ago. commitment for each and Bright that facing pleased Linkedin, Work I'm in employees people. hearing about edge hear the Horizons really I from and to culture and and children, It impact of adult globally. to is employee every our us that learners, named hosted

detail I'll that, year the range Elizabeth drive So growth well and X% positioned in positive of We agility for in are more operating the and we continue in Q&A. and believe back adjusted $X.XX closing, With to per performance years. over be we’ve you to that the numbers anticipate we demonstrated momentum with revenue share range in the $X.XX. XX% strong the with of can to to continued operating review during the earnings leverage full

Elizabeth Boland

headwind Thank the million Overall, X.X% growth The full or was driven you, $XX in Once revenue or X% includes contributions quarter. service headlines Stephen. quarter. enrollment gains, quarter. in for newer and rate the approximately approximately the to the revenue growth X.X% recapping created our up rates exchange again, was center and points service from by $XX of for million from basis centers full Also foreign increases, acquisitions. the XXX

X.X%. basis, a segment this common So expanded on currency

topped generating previous in the XX% Our our operations estimates backup growth topline quarter.

adjusted on care or days. XXXX. the service million mature from adjusted points gross on Ed to our on from base. $XXX the expanded XX.X% UK XX advisory service, points In was full X.X% new ramping acquired increased grew and increased strong of segment, existing addition the of to centers as clients revenue basis our vacation that said, new existing revenue. of And of on the which clients XX new In million in represents from basis revenue increases. launched aided that profit usual school operating for who expanded client and and segments, services by utilization income timing gains contributions with in tuition QX, we our from from family into contributions which in enrollment my by the coupled on and use growth million, up realized income operating $XX.X down XX.X% QX Breaking to XX% launches $XX.X Stephen centers expanded

XXXX on efficiency delivery. strong income in and operating Our the up XX% levels quarter from in just margins of backup over XX.X% generated improving utilization service operations the

$XX slightly was Turning in to it and on up interest higher million average XXXX rates. QX slightly interest of over expense, XXXX

current rate with income rate term Our times levels. XXXX adjusted cost from up the debt net to half approximately which an $XXX We borrowing approximates million at The X% on of quarter interest EBITDA. structural X% is swap. quarter of about is three with fixed loans, the ended XXXX our tax XX.X% net in

flow first cash also we cash to working quarter our $XXX the continue XXXX. improved and with million of Turning strong performance movements, in capital operating to generate flow, positive

of existing and in continues our support our to investments the under of strategy, cash the $XX terms growth this invested by existing we've In be priority operations million of $X reinvested and and the business Through year, March and our new followed in centers that acquisitions flow authorization. in have deployment repurchases share our of capital first allocation million functions.

project in coming XX% to centers across we topline now growth range our our XXst, March the than We the XXXX Adding overall of to family to we children at backup XX% of we Lastly, continue XXXX to including will clients. service from XXX,XXX project to X,XXX my and more guidance touched X% in the the approximately earlier, on with care. for with that grow partner XX%. headlines of lines serve operated in the capacity X% of range Stephen all that XXXX addition division

exchange topline of also includes euro than of on the Ed to which XX% and the an X% we of FX rates XX% full X% we segment range X% We in headwind top continue growth in pound line range in service realized lower XXXX. our projected growth approximately advisory in are and services to our project for to projecting

On to top P&L continue X% line and ramping X% X.X% the in we network. side to to to enrollment of and in across the centers service realize full expect price range our to increases add mature from to approximately the operating center for XXXX, the X% average

XXX growth, $XX we the borrowings and prune estimate to metrics $XX underperforming to million interest will to time points also strategy in outstanding a close including new roughly on in in of stock management, basis expense will of few projected other we the to that efficiency and line to to million contributed We compensation amortization over points depreciation million approximately of in XX centers to the performance to XXXX million. performance acquisitions. operating improve of and cost expect centers for Top year, and million of $XX will disciplined organic Based service year. basis million. the million, approximate add improvement rates Consistent we $XX to of the operating XXXX. openings XX to rest key full XX $XX $XX our year, for we the and increasing margin estimates interest range discipline $XX compared – in the XX delivery range with On contribute our the centers improved anticipate range for

expense. tax increase XX.X% the similar stock impact so to primarily we to the option the to full in reported reflects range QX, diminishing The projecting the year from of reported we're on be tax our front, On structural tax XX% the for rate range exercises XX%. the in XXXX

cash $XX Lastly, or business. in the which estimate approximate capital million of expand flow the generate so million approximately yield $XXX we of Overall, $XXX million million invest will flow maintenance would $XX from of weighted cash growth average shares to year. are for on million projected to ongoing free we $XXX the $XXX million to to and operations

to that in opening are million this invest expect for We approximately new center year $XX and capital in centers XXXX. early

a projection share. in net of range earnings to range of million combination $XXX the factors EPS the for to income in and million projection I year, again, adjusted low a outlined double lead our the to So all that the the $X.XX of adjusted to overall $XXX recapping of digits $X.XX

foreign and exchange Looking specifically also reported growth a reduced we project as are of quarter to we to topline slightly headwind. QX, growth to expect sustain X% X% past drivers this projecting we the

On the translates the bottom a X.XX adjusted which EPS income $XX to of range of share. line to $XX we're to projecting in the X.XX in range net million, adjusted million

Devin, ready are So to Q&A. with to we that, go

Operator

Manav question. first Our from with question Patnaik Instructions] Please [Operator line of Barclays. comes the shoot your

Ryan Leonard

this get asked Manav, you would there a Hey, more for on often and there. market, is how is curious, look take we to much grow just full room the at step the Ryan back center question,

You out center or the you leading market? over years, guys the next of of When from is in are growth space a more do you there of white lot available full existing cross-selling a see obviously still look player. coming couple kind

Stephen Kramer

Yes, great Ryan. that's question, a

continue both and could obviously do, opportunities so well organizations see about us today estimate with we we U.S. in both, here to individual who work line onsite a see fraction the addition who we to we with from additional childcare XX,XXX today to serve are small of clients nuance So that don't sites the continuing today in of in center, expand that there a would again two those as work larger single as continue locations to of that have that benefit an or also is, employees. service. also The current those within center we centers to add on to footprint of their put who opportunity see clients their centers other I services, in

see Bright we in who are in who of So other work with both new to existing prospects as lines service the as clients family. centers, of clients clients well Horizons existing it us

Ryan Leonard

adopt that who time? these you've for Are is that the seen, solution? cross-selling I to And center someone up typically that time second takes adopt the it, how initiatives of services? other you thanks. it there has from a any to in seeing for changed time some it of signs guess, some a clients takes acceleration over Got And the in

Stephen Kramer

of you've I cross-selling. more us think that our heard Well, last couple Sure. over talk about initiatives around years, focus the and

velocity. into to I is different our so our well are of managers relatively increased account is are to seeing salespeople that different the we sell an some now beginning think existing compensation as And as we and and salespeople dimensions, accounts it. decision has our fruits a having that be a long managers to very relationship with certainly whether that as And available one certainly cycle see still partner well to methodical the as center our sales ability

very On extend us. I well the like feel to introduce other service hand, team to equipped is the that our continue into and for center world

Ryan Leonard

you. it. Thank Got

Elizabeth Boland

Thanks Ryan.

Operator

Steinerman shoot next line Our Andrew JP question. Morgan. your the question comes Please with of from with

Andrew Steinerman

guide what Hi wanted you revenue on in margins type how margins. half driving on cadence Elizabeth, second operating and year little of quarter do of see that? I you color is just What to implied second EPS, operating a more the that gave and the factors margins the and are just in the of get operating

Elizabeth Boland

Yes.

if it, dramatic since year XX full But shift we went no margin doing first XXX we'll year, basis sort an improving of mentioned, year, quarter will arena the the quarter. be is cadence the expect operating we along. And we're goes are this of QX. at XX as look to that frame the modestly look as XXXX, to quarter-to-quarter up the we guiding points so had ticking in of in how as same be I'd the that rest year this as maybe we the back on. we against for the how – So I delivered the for first range to from relatively

Andrew Steinerman

Okay. Thank you.

Elizabeth Boland

Yes.

Operator

Bank question. Please the shoot your line Our Gary Bisbee next America. from of of with question comes

Gary Bisbee

base U.S. been sites that addressable is in that's an thing acquisitions the new the center, that targeted that it's comment number Hey, evening. and the big for is from customer to openings a that Yes. time could a small time, about of the curious benefit is larger. onsite company market's for there's talked XX,XXX the Stephen, that work XX, good XX long or center one long new lot has been way a and centers

number been such add to since the IPO, every and wouldn't For you Like be organic same it's why gains? been proportional there the year there's routine penetrating factor there's company the a market the more a been through M&A when but years opportunity, had the few gating increase to the that that opportunity that an some is like big rate bigger growth over time? obviously at there M&A a to

Stephen Kramer

Sure.

we and organizations And a is their employer is getting foremost capital and happen of with direct So step site. it be order that after that whether are the that the our an about whether there that of required, on go HR think yes. required way considerations the there to is, rate sales is be lot benefits, And about think their first be I make that portfolio employer space, team. that real to Gary the the would leadership estate would limiting of ultimately their center at in allocation that the a on opportunity

are been our think segment. employers consistently working to has in that number terms the The I introduce many to of similarity is that possible. have there as who in diligently and of able as yes get diligently to, reality childcare that have been we lot of we a to So worked onsite concept

rate to at it we market their in serving relates employers an our standpoint, from have really there that on that obviously we the employees. limiting is As the the fragmented look step acquisition focus

a fit selective perspective, perspective from strategic a we're then so from and quality And from perspective. financial be trying to a very fit

with you, and the as an realize and of help at benefit broadly out see looking look That time the there employers sort our out in is and there very opportunities, the opportunity at of each onsite lot steps criteria. what limiting is rate said, having the a agree sort benefit exist that of would at I two so to center coexisting continue same different opportunities M&A hard the we but there And fit different. to press we of

Gary Bisbee

the up then from that efficient help And that just be? tight down like that that in follow it or Thanks. offering of given but same and market have actually bring more does you pitch HR HR this labor is that is we the hear know how I is supporting. if pressure use cost tighter an technology how and more and can be on factor, them, other offsetting market, the just me much impactful there's to the don’t the world labor does strikes demand sales parts should base

Stephen Kramer

we Yes, is absolutely work the certainly that we offering for said. agree. impact and The the of real, in talent clear an is environment are where

On long-term the cycles and decision about the one makers for an of will their and is an onsite thinking persist so that years This of what see continue the center is decision ultimately of culture, for center is fit center for particular right. onsite with their economic many is sets that we many their long-term, employers to through particular making and childcare set side, employer very they different the requirements. needs

to work yes, and onsite the our the talent that benefit, in. that services of has they're whereby the And broadly, longest need the for services so, I find would clearly from about all have, proposition – we the longest of that making. term the currently center the they investment we think ourselves say

Gary Bisbee

or for four that appeared gone your change about be now the to just think up rates you in its should with little a that right just and have thinking Thank still given stabilizing. three then level you one targeting? is in and the leverage to comfort we place you. Any times, bit how Okay. are And Great. Elizabeth, are coming

Elizabeth Boland

Sure.

is we optimizing own that pricing would If times its with debt that, above cash the and quote the that would the to times more think that of which ticking course the us flow range and some probably delever had us. is and that, a think requires against I enable X.X best toX.X for works and on temporarily. in we but terms the borrowing, like transaction that it, we a of – range come flexibility

Gary Bisbee

you. Thank Great.

Elizabeth Boland

Thanks.

Operator

shoot comes next of with from Our question. Sachs. Tong line with George Please your question Goldman

George Tong

Hi, thanks. Good afternoon.

Elizabeth Boland

Hi, George.

George Tong

of pretty utilization you investments recent in trends discuss been has persistent you technology that's to Can growth. given you growth helping also cycle? Enrollment to to benefits reflect enrollment rates from drive are expect driver your where higher how potentially revenue and the we overall macro change

Elizabeth Boland

full lines. cycle we ramp distinguishing touch centers because only Yes, think first I of between the able the that we're that's service across want to service it In – full realize year-over-year make centers to because of to full sure I gains maturity. service utilization, enrollment will three to our I on are takes use the long get that types different

first to categorize and we operating XX their continue a and what year. then and open they mature centers, ramp as two in the So months, fourth new they're to level by get year three

those services part the and the utilization delivery it's can more speed service in if experience some drive impact, confirmation The more in Ed way. in center, experience our more investments we have with that ultimately in the X% is centers, but specific mature the think enable centers advising use, eke on our utilization backup bit of that's that forums in can seeing management more of the you to are portion extent that take I we of that the and not ramping more efficiency to X% care year. and the but the we can both that but then by enrollment to will, of the centers. open technology so enjoy are the the the improved that services And overall from we deploying pipeline backup backup the employee more having where a pipeline, use gains therefore also reserve that from to enrollment then technology channel, effective come And and centers the end-user little other with those element mechanism to a to the of out

the use retaining the full So is I use, with both step the two. pleased awareness, well what the is we and increase because have use will over step and as And think one, ultimately that's expanding broader persistence investments our population outcomes to in like of centers to the of technology sustain more the over reservations efforts a both where is see then service as our is that registrations the, early we time. marketing which we're time will increase

George Tong

helpful. to it centers, provide expect relates maturing over an can on And do much that you cohorts? you tailwind next margin as the And over that's persist several the lease/consortium perspective? you timeframe update of to years how from a expect it, Got what lift from a margin

Elizabeth Boland

Sure.

segment, we to coming of So margin XX from in would another, years, top and that a realize these full of two growing that's lease/consortium our the business. we of to years say On additional against couple getting discipline, general, basis opening year of so new ramp of maturity. next we looking centers, to to and sort would centers year in base service typically this those call have basis centric that, another a maintaining enrollment operations be of XX from XX sort the routine price for we our XX urban year basic increases, more classes in points retaining modestly, expansion of that as would cost points it of tailwind

more will and that's part contribution tailwind having it's a growth in expansion will points have what of year classes we that is years, XX in So range sort additional the be enough another basis but is, it be the the would basis years, view. combination business between And from of couple mature strategy to that base out, of you as centers. incidental, the lease/consortium two won't somewhere be out. just that's and George, this years of margin still point XX But our expect we points three overall of

George Tong

you. helpful. Thank it. Got Very

Elizabeth Boland

Welcome.

Stephen Kramer

Thanks.

Operator

Our comes your question. Please shoot question of from line Jeff Meuler Baird. with next

Jeff Meuler

Yes, thank you.

wasn't Just Care announced it first, quarter, was My date because I it the it Family the before thought in the what but acquisition guidance. closing sounds last prior was the of like

the was date? what Just closing

Elizabeth Boland

the It of think crossover February, of so in terms – early so timing did maybe for in it’s I it earnings release, the was the… basically

Stephen Kramer

think went in last… I coincidence with press the Yes, announcement the out

Elizabeth Boland

was of February. Earnings in release, it week yes, first the

Stephen Kramer

Exactly.

Jeff Meuler

Okay. back seems care But I it's you out had faster just still the you're you the else we full quarter market in guiding as the Is just, contribution from organically it the to the growth a and it the guess that to contribution, even what It something sustainable? backup that. then selling, about And initiatives? points have the year, four if the it two-month going Is to do is on see cross it tech a type impactful growth in while. is most initiatives? of like

Stephen Kramer

thanks Jeff. Yes,

So of we sort in the base we business. are uptick and modest seeing agree backup

out if use the marketing do of Care certainly see in use. increase as some ability and So net our launches drive you well terms to from the uptick My Family our acquisition, technology client nice we new to as and registration platforms additional

of registration terms well seeing the higher the key than that Family of new and a seen in to use as clients, what the three as as drivers driving we've are place Care acquisition leading sort My we those So is slightly of us historically.

Elizabeth Boland

Right.

– as double would previous you that previous low the So in been digits. have say guidance the the

XX% growth to you adding in think the I more like our – to in My with we say on the Family be range that. this Family Care to XX% Care at My looking – XX% year So XX% would in organic

the – to clients within some cross been cross promotion and the we of the that And expanded expand good opportunity more it the think about in we're good use the for couple why coming I about up like seeing of we selling year. is say opportunity. talk to about sustainability has but from future on is the comes for beyond to looks course headline are of into are the base, continue But relay the we've this efforts what will talking to in that the opportunity, future is years steps XXXX this are on fruits we come of periods, we outlook but and our of guidance specific think last you to to feel it think that years I we question want as of the the and quarters. That's part utilization.

Jeff Meuler

lease Okay. do competitors attacking what are urban key the And competitors in where you or as to out markets consortium barriers are of perspective the simultaneously of markets? capacity capacity you're the not, in you then centers, There so? a the adding adding those doing of see if opportunity, them from what seeing lot

Stephen Kramer

markets is estate competitor, entry, competition strong of capital the we Yes, So and are really we the tend barriers more to velocity markets say in build we are we to of is what The high, occasional that kind those don't bring so the up sophisticated same see out are that markets. worthiness credit that landlords be do an see to that those require pretty real the requirements I'd table. in reason costs seeing there open those right? the more is in high.

markets. things is into certain your coming answer part have I have those don't to in didn't also we But those I probably we we colocated of that exist, And second it, those that in So competition are think question we if more an that things is that think markets. have others the then our would reality see have. advantage that clients

other might be additionally to the absorb. into to might us better have losses allows to ability front that, therefore less is ramp are our than what a ramp so backup to more in competitors what have end on quickly those care And then place centers and typical and that

good between our about is in there imbalance significant taken supply urban competitive the demand. together, position fact markets, feel that So we a pretty I those really despite think and

Jeff Meuler

this balance The one. there including last sheet items or not XXX expense one any impact is just between the lease any is line then best Did last for ASC And save accounting? Thanks. just P&L movement Okay. year. accounting,

Elizabeth Boland

Yes. including income the net on standard any have Thanks impact either were impact earnings We movements as some classification was asking. or the P&L promulgated don't those for impact, removed. statement potential ultimately of

long what as balance the the sheet said, So do impact now is of that well component in there's we as term. have liabilities liability current as is you a

that other cash there than we so statement the report. as working there's And of of and result then there's to no that, capital change needing that, movement some a are on there impact line items. bit flow a between earnings But

Jeff Meuler

That's you. helpful. Thank

Elizabeth Boland

Thank you.

Stephen Kramer

Thank you.

Operator

[Operator Please comes Silber Instructions] Markets. your Jeff BMO with from of the line shoot Our question Capital question. next

Jeff Silber

in couple too off-market the deal? fact Stephen, for acquisitions. Care Is a Family that you I'm think there that it. My tougher to much much, lot be find mentioned I deal remarks, getting there into this Maybe it competition I called times so Is was you reading Thanks out your an of more think companies? a

Stephen Kramer

of sort I So that varies and strategic size both think that as as well of the opportunity. geography nature by the the

directly see through Care and going that because that reason will sites, typically strategic of to do we're I we’re through organizations, have intermediary. because network I two called would tend seen the larger, go between history particular in reason long and to an we've because go would I'd intermediaries. an I Family relationship time. that in being think off opportunities persistence existed for larger that market as friendship we more that able than tending keyed that we are way. at on have to scenarios. owners that think opportunities that that single with rather Again, we market the My on out of continue auction intermediaries of was we and And to networks smaller continued through been we the in is seeing off to the sort look we say and do And a that a understanding those types our long naturally and and intermediary the an really one of of it's type in think the

back couple ended It we again, think our But was was relationship was think, sure I intermediaries. strategic, that to we go when a make Now ultimately helpful acquisition opportunity. Asquith really did that it years of I we that up made large. the had through commented with

So our into Bright again, believe I it the within good status My to industry. wouldn't than that just anything acquisition an we're We choice read through be competency of acquirer of it's a and it was more recognition that core a the Care Family continues Horizons. other

Jeff Silber

disclose And Okay. were the quick for just Did appreciate I you a color centers you. that in new the number numbers open the of that. on Elizabeth, question quarter?

Elizabeth Boland

six quarter. added centers we in the Yes,

Jeff Silber

Okay. Fantastic. much. so Thanks

Elizabeth Boland

you. Thank

Stephen Kramer

Thank you.

Operator

Hamzah Group. question shoot next Please question. comes your with of online Mazari Macquarie Our

Hamzah Mazari

evening. good Hey,

you this can is more have service. typical that of clients and one some new center hoping years, subscribing terms that of an terms little a anything of months, view then a people you one sort a than point but around in may have a to who have do for there color? to of sort was bit, of Is on in And that you think customer just then of where terms magnitude also you. a there Thank more sales I another center low-to-high adding in little cycle, cycle, doesn't color center. a adding as touched sales order

Stephen Kramer

Sure.

clearly our center cycle is sales So longest. our

or that then onsite And be in value year typically the in of the terms will educating So a development. a plus an prospect center. plus client year it of about having is

So licensing of actual ultimately opening a the and center. construction new

the backup that be service So process sales we in XX six are get have educate to from share multiyear advisory, a start with or Whereas yes beginning to or the line to that tends to to that decide our and of months tend and cycles we they that Ed time to from that end. to launch. might months in to more the time client

would that sort so the be of end. And

side. on taken then come quickly. there that and are I the six I clients on plus and then a to have certainly backup on board Now Ed months the advisory others years But are side on more And and year of couple center say years there about think have years. average, a would would that

Hamzah Mazari

a on think but Or contract just Right. lose had thoughts do just attrition attrition, pricing? when you your is you while any And guys but of Is rate clients? highlighted why I I you then net that customer back call was that client – new maybe a know retention? business, out you Starbucks retention guess and

Stephen Kramer

Yes, very we very, retention. have so customer high

high, XX%. So XX%, very

Elizabeth Boland

XX%

Stephen Kramer

work there contract many own client retention. as lost. who The client therefore may where but they're consolidating with childcare, XX% don't sites a is with as typical they not work us cases on childcare most is sites. have they their M&A require the side, work the at centers many In is the or doesn't a center and where Yes, workforces, they're sticking

that larger is, an wake where see we The in typically of see unusual that that portfolio organization that of that in it's something we'll to want client reason in to ultimately larger M&A happens that across client prune. of pretty the that side, other acquire, in But deals there'll very it's for of specific typically the we'll will a know our lose the tail something face might in us services. And closures portfolio any a client. to be on we going closures a centric

Hamzah Mazari

Is too be this you any thoughts Got And a but the you. a last college any on of too thoughts from business your being you. question, just to just terms or may scandal? on matter in over. early, it I'll impact positive that that? turn And around Thank small for admissions

Stephen Kramer

obviously so Yes, to you. is the segment Thank small college total. advisory relatively our

recognition admissions other On among but hand, has Certainly given obviously admissions many, importantly is say many which scandal. value around both college ethical an advice, the among provided for of press the that what years increased individuals the the that employers to there I would have all as now. we college there more of been is

make have services that of employers that educational those playing access that to employ a is idea then And the ensuring to secondly, becomes the to wide ability have of highly and level the and so the field attractive. really backgrounds ethical available means it attractive. And also variety employees that

the publicity it it of it’s attractive employers market. look is to is very And to and again, a way directly certainly do ultimately way we to given the individuals. we the at lot So

Hamzah Mazari

you. Thank Great.

Stephen Kramer

Excellent.

want if our thank everyone joining again call wishing So other night. I and everyone just there's no great questions, to for a

Elizabeth Boland

road. on Yes, we'll see the

Stephen Kramer

Take care.

Elizabeth Boland

you. Thank

Operator

today's This teleconference. concludes

you your participation. lines disconnect your now for may Thank You at this time.

Bright Horizons Family Solutions (BFAM) 30 Apr 192019 Q1 Earnings call transcript