BFAM - Earnings call transcript Q4 2024 | Bright Horizons Family Solutions Inc.

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Operator

Greetings, and welcome to Bright Horizons Family Solutions Fourth Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Michael Flanagan, Vice President, Investor Relations. Thank you, Mr. Flanagan you may begin.

Michael Flanagan

welcome Horizons' and call. quarter Sherry, you, to fourth Bright earnings Thank

Investor our we today's will a the that please be section is under Before note and call begin, brighthorizons.com. website, . being webcast available Relations of recording

statements harbor to those call, our statement business, performance included forward-looking future subject are release. on and this in As a outlook any to made reminder financial participants, including regarding the earnings safe

materially financial and uncertainties and be that cause results risks to with involve and differ detail in conjunction that inherently statements in XXXX, our Forward-looking statements earnings SEC other are should filings. and in actual considered may cautionary release, operating the XX-K Form described

no speaks Any detailed forward-looking on under of any counterparts the IR it refer obligation statements. at which only Today, date of earnings we undertake website to available non-GAAP reconciled the in are to as investors.brighthorizons.com. which forward-looking our financial measures, release, our also update is statement GAAP which the to and we made, section and is

the [indiscernible] today's Financial the it call Chief Officer, Elizabeth before Kramer; provide Executive Stephen is results start to update Chief up follow of questions. we reviewing our our and an on on your Stephen will our Elizabeth and by detailed Boland. Officer, review me will open business. numbers Joining

So turn call Stephen. with me to let that, over the

Stephen Kramer

on the in and of quarter everyone our largely to backup fourth revenue evening bottom outstanding by with call. performance exceeded adjusted Total I strong top the segment the our EPS the good expectations on line. and Mike, Thanks, performance quarter, care how the and we year. driven the pleased our for and finished am

EPS XX%, revenue initial XX%, while surpassing grew year. the the year, our increased by For by total projections for significantly adjusted

pandemic. the multiple segment to our business COVID which the with Bright X,XXX of changed This full clients and in service the in history, We Backup the earnings the generating more and segment million years prior represents for entire Horizons income overall growth of contribution of spanning ahead. mix, company's believe our of fundamentally than EBIT, has $XXX strengthened geographies we impressive Care highest the performance operating growth and achieved the trajectory excess

and some for EPS on $XXX XX% the recent $X.XX in centers growing into full service quarter, QX, to the to child In including increased to adjusted care our $XXX the up Jude's of $XXX center in get XX% second XX% To St. India X Institute million our and in revenue Revenue segment, million. specifics with adjusted and added quarter. per EBITDA client fourth X% to increased share. Hospital Ragon for We Stanley. centers Morgan million

which the the family. new of year, Horizons we were which for For opened Bright full XX of to most are centers employers, client XX

Enrollment than year U.S. low in with occupancy centers international operations a X and more increased percentage across rate our average consistent the low single-digit at in for prior quarter. the XXs, opened in QX with

due occupancy QX traditional seasonality. enrollment As QX are historically reminder, and quarters lowest a our to

nearly XX% centers our occupancy, demonstrate than high of the to We very of in levels of are more quarter. continue our see XX% pleased fourth portfolio cohort top to averaging

enrollment in opportunity our and the concentrated cohorts, growth As to growth our saw which be quarter. middle enrollment bottom such, fourth mid-single-digit continues in

and to families City New uptick underperforming Seattle, in to we district in our of childcare underperforming well York In enrollment encouraged a locations, drive our to in readjust we have signs by of office suited our below and that are results. return continue early growth centers mandate. office are located by changes said, shift I'm in that improved the they of these seen to policy remains efforts have employers return we accommodate an to seen trends and some pace to at D.C., needs inquiries. as we the expectations, the With intensify centers our business number driving

In the to the financial as U.K., we last continue narrowing losses fourth make year. to compared the operational progress and in quarter,

year, across strong our performance agency much For spend. delivered portfolio improved improved financial lower we growth, staff and full enrollment and the operational on retention center U.K.

results in years a While performance a and follow. by We our the earnings to breakeven steady path improvement headwind margins, U.K. the is see in overall with still full continued progress clear service to I'm to encouraged in business. of the momentum XXXX the

higher Traditional Care, me with center-based turn growth. a showing ended our delivered Let XX% in-home to use year and expectations strong trended than as now Backup we in care, with particularly network million. which to the growth $XXX strong quarter revenue use

client also continue fourth Lonza. to in new including and Harris with to base quarter, our the launches add employer We Health

As XXXX backup drove eligible among employees was backup million. of I for year $XXX standout of mentioned Greater with million adoption earlier, income operating another benefit care $XXX care. the topping revenue

care to of their This adoption type with provider greater availability. more users backup care pleased and our been of payments. were benefit more has the by benefit supported initiatives, and the consuming marketing continued of expansion use suite users see the We utilizing increased annual unique expanded

that and With Care a years. outlook the for significant for the bottom engine the momentum top the line year company's many we remain exiting we will have saw XXXX, confident growth for Backup I and be

student quarter Education of operating portfolio, added million the in Our Atlantic products. We new Natural clients of year. and from Health quarter loan and to same up grew last the notably launching to repayment more United business continue $XX to XX% Foods slightly and Advisory Systems adoption the our margin ticked see

As meeting this are needs available we transformation believe to employers and reskilling execute continue the focused of its investing in this their and to on large the and upskilling employees, market. opportunity on evolving for segment continues in

want affected Angeles. heartfelt Before our fires the those to for take to moment a devastating up, in I I wrap sympathies by express Los

share of have loss our in and employees, the we who overall many While across Horizons was Southern families We the sense operational permeates communities, have clients for Bright deep impacted. that California. significantly impact limited, quite been

proud Over witnessed the of the series a we has past our up. I'm months, team and and way natural few disaster very unimaginable have of stepped tragedy

While are they the have employees not of devastating in wake supporting our responders, these are been many on called tragedies. who first

$X.XX ahead Looking to prospects, to client and I I growth remain in X,XXX our to about long-term ability tremendous to stakeholders. entered model, value We resiliency of strength continue excited our business the confidence have more drive XXXX, our than the relationships all to and strong of our approximately of of XX% EPS billion to XXXX of foundation share or growth with are we and of the side, to for $X.X a adjusted year. XX% earnings billion a $X.XX deliver on to revenue. projecting And range the expect per $X.XX

numbers over I'll the and that, dive With call XXXX share turn Elizabeth, more our into around details the who quarterly outlook. will to

Elizabeth Boland

adjusted Thanks, XX% and everybody overall EBITDA million, QX to locations million 'XX, year. who revenue year $XXX of over the the while XX $XX quarter, XX.X% hello of income XX.X% is added quarter. fourth over XX% million centers, and the prior increased $XXX or closed To We recap revenue adjusted Stephen, able increased or X of increased to having of in join to the operating XX% of fourth call. the revenue with X,XXX ended

points low revenue full FX. pricing approximately $XXX a single-digit bit XX million growth basis tailwind up this in of and QX was and was enrollment X% service further, break from down increases, To on

levels opened portfolio in across increased XXs one year centers utilization. QX for relatively low percent remained mentioned, than As Stephen over levels consistent our prior more that from occupancy the year, of have the been and QX

period. discussed cohorts have number we cohorts on above we 'XX. from our occupancy, under QX in to the XX% XX% XX% bottom cohort center top-performing QX in the from to period. XX% now defined of the QX, of in centers top centers, these our occupied over year In prior those continue increase In of improved 'XX of prior the cohort, In prior in XX% the centers improving calls, represent XX% as of centers, of year

helped increased Adjusted million Higher to Full improved $XX operations segment the year. in the leverage, and million U.K. the prior drive our operating particularly over and in enrollment income operating earnings. $X.X U.S. growth of Service in

to Turning the $XX revenue growth in operating use adjusted as 'XX than drove million XX% $XXX the QX Strong of or grew fourth in quarter $XX in to of more QX backup as of revenue. well million or better-than-expected the Revenue income care. million. XX% overall

our For topping the revenue million, expectations to year, XX% XX% to growth. of $XXX XX% grew

improved Lastly, operating expense interest modestly over our leverage. QX $XX.X of Educational reflecting cash. in to interest in $XX.X the million Advising due largely the revenue segment up down million ticked Net margin and quarter income operating prior year, was invested the prior year, incremental than of on the in higher to delivered XX%,

the with XX.X% on adjusted rate The the structural in rate. effective net year of quarter, in roughly line was income effective tax full

the to cash Turning and flow. sheet balance

cash lastly, repurchase continued of first flow XXXX. summer we quarter, activity with And build in XXXX, totaling we full from the in $XX fixed $XX to million roughly cash operations the XXXX. 'XX and stock million million the compared For We in asset $XXX of cash repurchased million $XX generated made to million specifically the as compared QX, XXXX. our year free in in investments $XXX since generated in

ratio million We outstanding. ended EBITDA cash, the debt weighted million with of shares to $XXX Xx average roughly a leverage XX.X and year of approximately net adjusted

outlook. to on XXXX our moving Now

$X.X be the headwind range strengthening includes top growth X% U.S. This year-over-year point XXXX of of the the our currencies. against from of to basis a foreign in billion. to billion of terms In expect line, $X.XX to currently we dollar revenue the X% XXX

to As constant a grow X%. result, to currency expect revenue approximately we X%

And we currency level. and offset to enrollment to service, advisory, XX% on expect to headwind segment a growth expect range In revenue a X% driven expansion X% continued mid-single of in X.X%, grow the at grow net In Looking digits. low Backup of we reported to increase constant to expect with from by of reported to XX%, to increases, the tuition full by X.X% in gains Care, revenue use. closings. revenue net the center modest in we

of to expect range terms be in EPS in the $X.XX share. a $X.XX XXXX we adjusted earnings, to previewed, Stephen As of

first -- the to of quarter Turning XXXX. specifically now to

basis is growth over a X% line to the basis outlook roughly prior FX reported total from million year. XXX in top Our range million, of headwind points to $XXX on to the for reflecting X% $XXX

to to the X% X.X% Back the service constant X% to full to mid-single XX% in in currency. revenue range at and up advisory X.X% in expect to digit. grow or grow XX% of again, We reported

$X.XX expect earnings, of of we QX adjusted share. be in the to terms EPS range to $X.XX a In

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

Operator

Patnaik Instructions] [Operator Barclays. question is from first with Manav Our

Manav Patnaik

I I just could you pricing pricing quantify that X% [indiscernible]. then of you could the hoping [indiscernible] was and little know was break a X% you enrollment what hoping I said basically? enclosure. to just out those But bit

Elizabeth Boland

this is the right, question So Manav, your for XXXX. if I heard

Manav Patnaik

X% Yes, for to guide the X% specifically? full center

Elizabeth Boland

Yes.

I was you up just little breaking -- bit. a were Sorry,

So be the offset then Overall, yes. effect, Enrollment closure the in or would the X.X% And X% the the those then openings X.X% we have headwind. effect price we And points foreign centers increase to XXX points in X% net exchange looking by you range. the will, if range. to in of X to so basis offsetting the items. X.X X.X% growth closed is at

Manav Patnaik

just in could in Helpful. with the for the you Okay. then that that help year for X you full the before us done just I Got segments? margin And Understood. know the you've before, it. perhaps have quarter? like

Elizabeth Boland

Sure.

digits, to So improve service comes the the leverage segment, the some low-ish X%. around to mid-single basis digits of et that for pricing the in looking cost, cetera. so. mid-single would full this We so we're to points from or and to enrollment That from the be XXX year,

that service So in range. that's full

to delivered we've for be backup similar the to Our expect in what year, it we business XXXX. would

the would to It in for of teens XX% There's range phasing be first to So similar what of XX%, we XX% that to little that, high this mid- did a on for bit the year. higher different end specifically. quarter that.

the year, then year year, little for So but And high in year. to business, income difference the operating of in ed of phasing that some as mid- the next versus a overall, teens the the year, again, you can trend full but bit throughout advising the well. this see the

Operator

next is Sachs. Goldman George Our question from with Tong

Keen Fai Tong

Can you You that XQ. the latest course of with your XXXX? occupancy currently mentioned in occupancy views on over low the how is the will provide trend rates XXs, consistent

Elizabeth Boland

to we for is expectation for to call -- growth a comps maybe our in bit end. the, than growth little second fairly have it, X.X% maybe half first mean overall a range, slightly I back the little more, X.X% bit harder -- weighted through Yes. half, the but the modestly, but in year, enrollment steady the

Keen Fai Tong

you Would the percentage? low to expect about what to high mid-XXs, XXs mid- And the to reach XXs.

Elizabeth Boland

Yes.

yes. would we where mid-XXs, [indiscernible]. George, be Sorry, it the That's in

Keen Fai Tong

I'm over you in the step step-up there's and expect year know the the would happens back of year. first How then the second I -- in the course of half seasonality And down half? the assuming

Elizabeth Boland

because It second higher be expect it exactly. like be half. the back the then in year be first to would growth Yes, half would it was enrollment, -- the this would consistent, fairly in and we the tapering

Operator

Our question with JPMorgan. Andrew next is from Steinerman

Andrew Steinerman

X% It the you pre-COVID in was year. normal, which thought would of about the Elizabeth, years years, centers X.X you I mention me closings or about would center a low sounds I say I that revenues point. to when just that heard only number drag drag how Maybe pruning, center the would be. of by could because X% many many think

of seems centers a like normal not year. pruning kind only it's like just you're X.X% of amount if it pre-COVID even this a year, So for

Elizabeth Boland

Yes.

the to I So course, a that openings. it's mean, trying about it's point quantify of we're I net, factor I think Andrew, it, the there, of -- think but the

intended that be So was a factor. unit revenue net to

So will be than higher that. closings

I are centers less than or call we point the and -- in X.XX X.XX% and is development openings up are similar net. We shapes that ramp expect So I'll to that, openings closings on one about more if profile. Those what in opening then centers. and XXXX. and openings X% though, X% of number are which that historic the and they pipeline -- We do it, XX out down We in of delivering a open centers and X% thing, are now. newer ramping are have think is opened sort would based right typical here a

are been somewhat have under already we tapered at centers The down. a that enrolled there is level closing revenue

headwind might past. not on it a you representative but of have perhaps completely in the seen So effect is of what the revenue,

Andrew Steinerman

what center Right. And what the the was drag just quarter, quarter fourth in revenue was the from same in reported? the fourth question, closing

Michael Flanagan

closing. a from center about XXX it new from Yes, We've basis gross basis, got a some was point headwind centers.

So the to. closer net was

Elizabeth Boland

in points basis XXX QX.

Operator

is next with Baird. question from Our Jeff Mueler

Jeffrey Meuler

the on from means? mentioned intensifying full detail differently the go that into are the into 'XX recovery you've you Can more centers just what with drive you that you part doing efforts. COVID operational what intensifying going disappointment side underperforming and Like doing the service? just an Stephen, in efforts throughout been to up

Stephen Kramer

Yes.

a think for you of question. it the lot thank I -- Jeff, So

I refine of continuing think really a it is lot on focused to experience. the prospect family

think have and redoubling are I continued again, on efforts is what things a again, we do inquiry. how an as our are, family handled like So to prospective

receiving making so families the intensifying And through those sure the touch really personal that we're are that process.

great enroll greater our think tour we will improve and the sure experience I continue providing family making are to that once visibility into they the center. have experience we that in

centers to and and convert backup basis. say are own providing experience our use into care backup enrollment our then within that having a permanent first and on leverage more really would that them enroll a ultimately, using full-time them improving backup through then users I And we the ability use to also systems

in so say within that So see to and lot a them happens many that work making that expose differentiate I of the the we're options to is family that and how it the would other managing our that to can sure has funnel opportunities with as centers great down it community.

Jeffrey Meuler

client use up we growth Got that annual discussions banks on of the versus could adjustments new and clients? Care, budget as just just think or about a it. talk driver allowance going existing as then into driving And 'XX you Backup about budget

Stephen Kramer

sure. Yes,

existing we're had step how all, with renewal would quarter throughout obviously, performed with back, to of positive we season, pleased and I had really discussions again, . XX%, fourth our base. to first client conversations take a in growing the say it XXXX backup for this the specifically to the confidence related and just third XXXX. XX% us to really conversations which, gives guide as we relates XX% So to to

as unique base a in users, and one good are grow that incremental they focus our We user. continuing the terms through see way important our broaden Again, are grow so client interested as had they from anecdotal lever the of well uses their in small investments. we are grow evidence invested as really that in continuing as clients to per on employer we our is ours, to base with, users in the of both within the really Obviously, clients of and more got they is looking signals number of number to the only year. prior than renewal aligned those the

And not unique bank seeing many come they employers users instead, are to as set ultimately broader with that of to it are continuing additional allow relates the changes so a that But we're will used for offering. use.

really good of terms felt marketing as season, in [indiscernible] good increased against we to efforts drive well supply So about other and ability as to about QX continue our the the and renewal demand. feel

Operator

Chan next from Josh Our is question UBS. with

Joshua Chan

Stephen, impactful I and of little occupancy? that you a Just of your kind is the would your occupancy to a office mind? tailwind. think -- current potentially to difference explain between of of important pre-covid the return might you a your kind factor do How much that mentioned of being to the be attribute you in you ballpark, office how bit factor

Stephen Kramer

there as increase us with have and of to Yes. the most enrollment a that be Look, base the challenges. some we have of into been able enrollment. Clearly, enrollment factors improve I say across of have the that grown think gone suborn would centers, number I of to continuing

those. is that cohort that cohort. those remarks, selection alluded third the the to There prepared of in in is I in are bottom urban there a that ones are selection the are in of I business district. them which about think think And So a

So office something certainly about to downtown at downtown have to think be about and point, to markets, Seattle, D.C., could appears in an about that think isolated think Midtown unlock. Manhattan, return those this

been selection it's in We're see have date will centers progress there hopefully to return terms are the nor starting a but I going the increased forward, policies. enrollment our historically and assisted that stubborn. wouldn't by to say certainly markets driver those some that of inquiries get office particularly in will key of to of

Joshua Chan

breakeven. you so, result to are if And that year's drive U.K., U.K. a In the in of kind think of mean that breakeven you're to that the I full led improvement what the for to fully the last Great. the year? to initiatives path mentioned you that Does some ones year that get beyond to this kind expect undertaking of

Stephen Kramer

Sure.

And we So XXXX. $XX going loss full I to [ ] in this within had think the XX segment million in a XXXX, million our it's that of actually expectation closer calls year, in had to previous is service expectation shared certainly, be to of able be we're an that ] U.K. going , we [ and breakeven. get to to the

do improvements see of to allowed start we that the growth. what enrollment kinds us think down better I and in XXXX to saw to was

our So the of job nice really a team did U.K. our enrollment. in growing

able our diligently on result, And staffing certainly more on getting reliance as and reduce better efficient accommodations. we're work staffing. third-party They really agency to really a

an additional X puzzle will the continue then that government for olds, of XXXX the forward will we there into has to the announced increased roll of hours. those year given expectation that sort and piece all to this other for be We only of numbers XXXX have year X that of efforts is

hours to going free free hours go entitlement entitlement. they're of to from So XX XX of

and that QX. will And in that, so create expectation velocity additional is some QX our

Operator

with Our next Toni Stanley. Morgan is question Kaplan from

Toni Kaplan

quarter, was low X.X% to laid for and out this trends out to enrollment enrollment guided third the the you've And X.X% and quarter with wanted start coming [ about in I quarter. last single-digit you had fourth to ] year. all

because I what a of had seen back in than post-COVID enrollment guess, you think has you you So just period, here, thinking lot lot higher care. do center but new just like the was were a was still about lower sort seeing previously? driven I don't this come feel there -- people to enrollment it

get your to the wanted Just enrollment thoughts trends? on the

Elizabeth Boland

Toni. Thanks, Yes.

bit I we where opportunity the helpful parsing terms for of growth. is actually in it little think the seeing enrollment a are

we you've elementary they -- time, some cetera. centers, occupied. will are full, a our there ultimately, et are cycling into gain always centers school, over center when of a enrollment. be that's out So older best-performing may XX% Those for of got that But period children

So same in maintaining much that the all. at those enrollment cohort enrollment means level not growth centers from

centers are sub real XX% XX% where cohort in XX% middle is we've we occupied, enrolled, as good those opportunity the sort digits. growth improvement and characterized The that's that of middle, have that in mid-single the seen to

those We age difficult are centers of spaces it's children the a in in where always the to the availability cases. and little stage in bit of together piece enrollment of all

and who these level interest who families -- think child some enroll mentioned But we centers solution slower it a this XX%. and there They've grow has They're in the have in they've that would that as the recovery underperforming environment choices coming stubbornly most down I where located explored very awareness Stephen during improvement other can to of made of has slower, talked area. earlier, it's enrollment work-centric percentage some where it urban to below expected, still are on been been not of an environments. care, a is, is [indiscernible] families to where even environment they needing an afford high in the home. kind reflecting and to opportunity though than have have back to options, that a little for we're in bit less we other the in cases, pandemic are their And gain. also closer

other is has So serving that choices. population a we're higher income

have longer to tend to in tend urban be continue more we've urban, enrolled. as we continue to to see Centers near been environments. We about, client enrolled. see, we centers enrollment our good open be are talked And that serving generally more at

are what open just that I characteristics to just being newer enrolled those under described even have or or may of so reopen. And

Toni Kaplan

care. wondering is care if that Perfect. financials margin sort large to enough Then Backup nascent it of think revenue in strength was or higher the home with that still the just the within there? profile a you in about very you're are offering that Care, or mentioned move is I the And how providing? of to lower backup needle

Elizabeth Boland

So overall the part care really appreciate top alternative. is our of in-home families is But a -- the It's -- own majority group. it's Many network is actually care solution. the important partners is center-based. the the group that and our next of centers, primarily at then

or it's overall important centers an the the own So service within home solution expensive in and more solution, it's providing care, -- is delivery. portion in And needs not of It's of nascent optionality center-based population. our the meet having important or care than incidental. an to terms of but our providing part a it's it of parent

our with as along grow capacity. having is needs But We enough end our care but see we as types to of we can has. certainly are service partners continuing capacity to have round center-based to serve that as economics in-home the optimal, want delivery because So that that, the own critical. the many in the network is we're most consumer it and/or

Operator

Our Instructions] Capital Jeff BMO next Markets. [Operator from question with is Silber

Jeffrey Silber

opportunity just what have higher, to wondering And about bit talk you it started forward. are know and any a seeing. gears you go generally labor more we an I'm do going inflation. wage to and increase raise shift little tick a supply specifically, does to wanted offset to up prices midyear maybe I if I see

Stephen Kramer

Yes.

estimates I significant investments So over comfortable some that made this think with X have that the wage we point. last the we're Again, years. at we've

compensated. itself, new first, to say we which in obviously especially ways we the don't opportunity, that about point, this I to wage Again, expect the inflation in families greater good in where those employee. the are feel addition that have where always for expectation. event is terms we that the our enrich other consider that's wage than our case, of at being that, we So invest expect, although, in that, but in would employees seeing and benefits our in not we for we what again, was package

Jeffrey Silber

you if this helpful. the repurchase had your quarter it about using I'm that behind in quarter. share thought as Okay. can opposed other mentioned while. drove curious you That's What little really for in the a time to you know process it's purposes? I to And first just just that. been talk do the

Elizabeth Boland

we've Yes. be. for and the have to it's active I last this well-priced and of couple be capital making in in in course both that building to being we thought that -- our been been a in sort in very has overall have us years, this certainly at mean We've of cash I Australia good as cash can are and been, plan generation of option has debt, opportunistic years coming and our as been plant there, got we between out the year, we the the over investments just stabilized. business The we've think, judicious time. about deployment, performance but sure visibility continued flow

Operator

with Our Bank. next question is from Deutsche Faiza Alwy

Faiza Alwy

where So you below cohort do closings. curious, the utilization be that's this I'm about would think know have talked you potential next utilized XX% around And store time? I year

Elizabeth Boland

Yes.

in XX% -- group. are mentioned cohort. as suboptimal are bottom that we group are centers on call, the So a that had have we of or we of Pre-COVID, in about sort of always so that centers performance

points on way the do based that end between the threshold a least of of and based to expect what to of would we but And And XX% have all would so enrollment to group. year. cohort probably expect X% some to X% few where continued 'XX overall grow the -- be pruning may We this not getting certainly at see at improvement or on expected. we is in portfolio we the target somewhere so

improving by been have ramping. affected. that opening most would of I and the have gains some overall, I But it's enrollment those we centers that think also centers the are a there think matter that in will look be

X. would that, want don't So number that you I think ever to getting to be

Faiza Alwy

Okay.

full the on you points talked margin et service from just then And I XXX just enrollment, about cetera. coming Understood. basis Okay. know expansion,

know curious but each cohorts. utilization we within -- the I'm So talked margins these I about -- of

about you sort in to of you an think the how And XX% give point? margins utilization could XX% those this update so XX% at us on cohort the versus above

Elizabeth Boland

mean, broadly pre-COVID enrolled that's most to centers, operating group Yes. the above the speaking, back margin -- XX% the essentially I is level. best

in the even level business, XX% are were that were margins, EBIT the were better. better those at we back centers or So performers. They we full so certainly and service to

less that positive, And so doing losing we they digits in talking but our the it enrolled average just are more to It's that XX% call than money. well. like XX% actually cohort group about the is underperforming XX% in mid-single were that. are The that's range. middle overall They're

so some as group, lose level. a And they

So were -- They're representative basis, that revenue relevant money. quoting -- we're of it but quote they to they're if revenue. unit losing losing enrolled. as isn't performing, of not really where a percentage that it's not are a on they under would be The they're they

middle and to bigger from headwind is where opportunity really the and the that then that's getting margins those come positive. And then breakeven will almost to improvement are have in centers in So the to closer from the and group level. of to mid-single of opportunity move call or where, so the XX% back it, that group digits centers middle XX% that ultimately,

Stephen Kramer

a Okay. joining this us and Thank you wishing time. for much great all evening all you very

Elizabeth Boland

everyone. care. Thanks, . Take

Operator

today's will Thank conclude you. This conference.

and you thank participation. your for lines your this You at may time, disconnect

Bright Horizons Family Solutions (BFAM) 13 Feb 252024 Q4 Earnings call transcript