Bright Horizons Family Solutions Reports Financial Results for Second Quarter of 2024

NEWTON, Mass.--()--Bright Horizons Family Solutions® Inc. (NYSE: BFAM), a leading provider of high-quality early education and child care, family care solutions, and workforce education services designed to support working families and client employees across life and career stages, today announced financial results for the second quarter of 2024 and updated financial guidance for 2024.

Second Quarter 2024 Highlights (compared to Second Quarter 2023):

  • Revenue of $670 million (increase of 11%)
  • Income from operations of $69 million (increase of 52%)
  • Net income of $39 million and diluted earnings per common share of $0.67 (increases of 90% and 91%, respectively)

Non-GAAP financial measures

  • Adjusted EBITDA* of $103 million (increase of 25%)
  • Adjusted income from operations* of $69 million (increase of 52%)
  • Adjusted net income* of $51 million and diluted adjusted earnings per common share* of $0.88 (increases of 39% and 38%, respectively)

We had a strong second quarter of 2024,” said Stephen Kramer, Chief Executive Officer. “We continued to execute well and delivered solid top and bottom-line growth in the quarter, highlighted by 11% full-service revenue growth, 15% back-up care revenue growth and 38% adjusted EPS growth. With the strong first-half results and the positive momentum we see in our business, we are increasing our full-year outlook for both revenue and adjusted EPS.”

Second Quarter 2024 Results

Revenue increased by $66.8 million, or 11%, in the second quarter of 2024 from the second quarter of 2023, due to enrollment gains and tuition price increases at our centers, as well as increased utilization of back-up care services.

Income from operations was $69.1 million for the second quarter of 2024 compared to $45.5 million for the second quarter of 2023, an increase of 52%. The increase in income from operations is primarily related to incremental gross profit contributions resulting from enrollment growth and improving operating leverage in our full service center-based child care segment, as well as higher utilization of back-up care services in our back-up care segment. These contributions were partially offset by a decrease of $9.3 million in funding received from pandemic-related government support programs and incremental overhead costs to support expanded service delivery. Net income was $39.2 million for the second quarter of 2024 compared to $20.6 million for the second quarter of 2023, an increase of 90%, due to the increase in income from operations noted above, as well as a lower effective tax rate. Diluted earnings per common share was $0.67 for the second quarter of 2024 compared to $0.35 for the second quarter of 2023.

In the second quarter of 2024, adjusted EBITDA* increased by $20.7 million, or 25%, to $102.6 million, and adjusted income from operations* increased by $23.5 million, or 52%, to $69.1 million from the second quarter of 2023, due primarily to the increase in gross profit in the full service center-based child care segment. Adjusted net income* increased by $14.5 million, or 39%, to $51.3 million, as a result of the increase in adjusted income from operations. Diluted adjusted earnings per common share* was $0.88 for the second quarter of 2024 compared to $0.64 for the second quarter of 2023.

As of June 30, 2024, the Company operated 1,032 early education and child care centers with the capacity to serve approximately 115,000 children.

*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), which are commonly referred to as “non-GAAP financial measures.” Adjusted EBITDA represents EBITDA (which is net income, as determined in accordance with GAAP, before interest expense, income tax expense, depreciation, and amortization) adjusted to exclude stock-based compensation expense and non-recurring costs, such as value-added tax expense related to prior periods and at times, other non-recurring costs, such as transaction costs and impairment costs. Adjusted income from operations represents income from operations, as determined in accordance with GAAP, adjusted to exclude non-recurring costs, such as value-added tax expense related to prior periods and at times, other non-recurring costs, such as transaction costs and impairment costs. Adjusted net income represents net income, as determined in accordance with GAAP, adjusted to exclude amortization, stock-based compensation expense, and non-recurring costs, such as value-added tax expense related to prior periods, interest on deferred consideration, and the income tax provision (benefit) thereon, and at times, other non-recurring costs, such as transaction costs and impairment costs. Diluted adjusted earnings per common share is calculated using adjusted net income. These non-GAAP financial measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations,” respectively.

Balance Sheet and Liquidity

At June 30, 2024, the Company had $140.2 million of cash and cash equivalents and $389.8 million available for borrowing under our revolving credit facility. In the six months ended June 30, 2024, we generated $225.8 million of cash from operations, compared to $180.0 million for the same period in 2023, and made net investments totaling $64.1 million, compared to $68.7 million for the same period in the prior year. Additionally, during the six months ended June 30, 2024, the Company paid deferred and contingent consideration related to acquisitions, including $106.5 million related to its 2022 acquisition of Only About Children, a child care operator in Australia.

2024 Outlook

Based on current trends and expectations, we currently expect fiscal year 2024 revenue to be in the range of $2.65 billion to $2.7 billion and diluted adjusted earnings per common share to be in the range of $3.30 to $3.40. The Company will provide additional information on its outlook during its earnings conference call.

Conference Call

Bright Horizons Family Solutions will host an investor conference call today at 5:00 pm ET to discuss the results for the second quarter of 2024, as well as the Company’s updated business outlook, strategy and operating expectations. Interested parties are invited to listen to the conference call by dialing 1-877-407-9039, or for international callers, 1-201-689-8470, and asking for the Bright Horizons Family Solutions conference call moderated by Chief Executive Officer Stephen Kramer. Replays of the entire call will be available through August 15, 2024 at 1-844-512-2921, or for international callers, at 1-412-317-6671, conference ID #13744696. A link to the audio webcast of the conference call and a copy of this press release are also available through the Investor Relations section of the Company’s web site, www.brighthorizons.com.

Forward-Looking Statements

This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, operating expectations, execution and delivery of our services and solutions, business trends, our future growth opportunities, enrollment and occupancy levels, back-up care utilization, long-term growth strategy, estimated effective tax rate, tax expense, our future business and financial performance, and our 2024 financial guidance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, changes in the demand for child care, dependent care and other workplace solutions, including variations in enrollment trends and lower than expected demand from employer sponsor clients as well as variations in workforce demographics and work environments; the constrained labor market for teachers and staff and ability to hire and retain talent, including the impact of increased compensation and labor costs; the availability or lack of government support and impact of government child care benefit programs; our ability to respond to changing client and customer needs; the possibility that acquisitions may disrupt our operations and expose us to additional risk; our ability to pass on our increased costs; our indebtedness and the terms of such indebtedness; our ability to withstand seasonal fluctuations in the demand for our services; our ability to implement our growth strategies successfully; changes in general economic, political, business and financial market conditions, including the impact of inflation and interest rate fluctuations; fluctuations in currency exchange rates; the effects of a cyber-attack, data breach or other security incident on our information technology system or software or those of our third party vendors; changes in tax rates or policies; impacts to our brand or reputation; and other risks and uncertainties more fully described in the “Risk Factors” section of our Annual Report on Form 10-K filed on February 27, 2024, and other factors disclosed from time to time in our other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with GAAP throughout this press release, the Company has provided certain non-GAAP financial measures that present operating results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures as key performance indicators for the purpose of evaluating performance internally, and in connection with determining incentive compensation for Company management, including executive officers. Adjusted EBITDA is also used in connection with the determination of certain ratio requirements under our credit agreement. We believe that these non-GAAP financial measures provide investors with useful information with respect to our historical operations. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of our financial results in accordance with GAAP. The use of the terms adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.

With respect to our outlook for diluted adjusted earnings per common share, we do not provide the most directly comparable GAAP financial measure or corresponding reconciliation to such GAAP financial measure on a forward-looking basis. We are unable to predict with reasonable certainty and without unreasonable effort certain items such as the timing and amount of net excess income tax benefits, future impairments, transaction costs, and other non-recurring costs, as well as gains or losses from the early retirement of debt and the outcome from legal proceedings. These items are uncertain, depend on various factors outside our management’s control, and could significantly impact, either individually or in the aggregate, our future period earnings per common share as calculated and presented in accordance with GAAP.

For more information regarding adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share, refer to the reconciliation of GAAP financial measures to the non-GAAP financial measures in the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”

About Bright Horizons Family Solutions Inc.

Bright Horizons® is a leading global provider of high-quality early education and child care, back-up care, and workforce education services. For more than 35 years, we have partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Bright Horizons operates more than 1,000 early education and child care centers in the United States, the United Kingdom, the Netherlands, Australia and India, and serves more than 1,450 of the world’s leading employers. Bright Horizons’ early education and child care centers, back-up child and elder care, and workforce education programs help employees succeed at each life and career stage. For more information, go to www.brighthorizons.com.

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

Three Months Ended June 30,

 

 

 

2024

 

 

%

 

 

2023

 

 

%

Revenue

$

670,059

 

 

100.0

%

 

$

603,216

 

 

100.0

%

Cost of services

 

507,647

 

 

75.8

%

 

 

466,653

 

 

77.4

%

Gross profit

 

162,412

 

 

24.2

%

 

 

136,563

 

 

22.6

%

Selling, general and administrative expenses

 

87,499

 

 

13.1

%

 

 

81,899

 

 

13.6

%

Amortization of intangible assets

 

5,854

 

 

0.8

%

 

 

9,132

 

 

1.5

%

Income from operations

 

69,059

 

 

10.3

%

 

 

45,532

 

 

7.5

%

Interest expense — net

 

(12,013

)

 

(1.8

)%

 

 

(12,219

)

 

(2.0

)%

Income before income tax

 

57,046

 

 

8.5

%

 

 

33,313

 

 

5.5

%

Income tax expense

 

(17,872

)

 

(2.7

)%

 

 

(12,719

)

 

(2.1

)%

Net income

$

39,174

 

 

5.8

%

 

$

20,594

 

 

3.4

%

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Common stock — basic

$

0.68

 

 

 

 

$

0.36

 

 

 

Common stock — diluted

$

0.67

 

 

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Common stock — basic

 

57,971,350

 

 

 

 

 

57,707,565

 

 

 

Common stock — diluted

 

58,438,186

 

 

 

 

 

57,905,424

 

 

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

%

 

 

2023

 

 

%

Revenue

$

1,292,768

 

 

100.0

%

 

$

1,156,822

 

 

100.0

%

Cost of services

 

995,228

 

 

77.0

%

 

 

898,645

 

 

77.7

%

Gross profit

 

297,540

 

 

23.0

%

 

 

258,177

 

 

22.3

%

Selling, general and administrative expenses

 

175,045

 

 

13.5

%

 

 

164,670

 

 

14.2

%

Amortization of intangible assets

 

13,499

 

 

1.1

%

 

 

17,330

 

 

1.5

%

Income from operations

 

108,996

 

 

8.4

%

 

 

76,177

 

 

6.6

%

Interest expense — net

 

(25,694

)

 

(2.0

)%

 

 

(25,135

)

 

(2.2

)%

Income before income tax

 

83,302

 

 

6.4

%

 

 

51,042

 

 

4.4

%

Income tax expense

 

(27,139

)

 

(2.1

)%

 

 

(22,322

)

 

(1.9

)%

Net income

$

56,163

 

 

4.3

%

 

$

28,720

 

 

2.5

%

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Common stock — basic

$

0.97

 

 

 

 

$

0.50

 

 

 

Common stock — diluted

$

0.96

 

 

 

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Common stock — basic

 

57,924,875

 

 

 

 

 

57,655,715

 

 

 

Common stock — diluted

 

58,374,296

 

 

 

 

 

57,807,667

 

 

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

140,246

 

$

71,568

Accounts receivable — net

 

184,987

 

 

281,710

Prepaid expenses and other current assets

 

70,785

 

 

93,621

Total current assets

 

396,018

 

 

446,899

Fixed assets — net

 

578,925

 

 

579,296

Goodwill

 

1,788,166

 

 

1,786,405

Other intangible assets — net

 

203,930

 

 

216,576

Operating lease right-of-use assets

 

756,215

 

 

774,703

Other assets

 

114,145

 

 

92,265

Total assets

$

3,837,399

 

$

3,896,144

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

23,500

 

$

18,500

Accounts payable and accrued expenses

 

282,760

 

 

259,077

Current portion of operating lease liabilities

 

100,934

 

 

100,387

Deferred revenue

 

258,896

 

 

272,891

Other current liabilities

 

46,396

 

 

148,578

Total current liabilities

 

712,486

 

 

799,433

Long-term debt — net

 

931,857

 

 

944,264

Operating lease liabilities

 

775,324

 

 

796,701

Other long-term liabilities

 

104,702

 

 

109,915

Deferred income taxes

 

29,809

 

 

33,155

Total liabilities

 

2,554,178

 

 

2,683,468

Total stockholders’ equity

 

1,283,221

 

 

1,212,676

Total liabilities and stockholders’ equity

$

3,837,399

 

$

3,896,144

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income

$

56,163

 

 

$

28,720

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

53,099

 

 

 

56,229

 

Stock-based compensation expense

 

15,516

 

 

 

13,313

 

Deferred income taxes

 

(3,921

)

 

 

(4,250

)

Non-cash interest and other — net

 

7,411

 

 

 

5,434

 

Changes in assets and liabilities

 

97,482

 

 

 

80,596

 

Net cash provided by operating activities

 

225,750

 

 

 

180,042

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of fixed assets — net

 

(42,016

)

 

 

(40,115

)

Purchases of debt securities and other investments

 

(36,281

)

 

 

(8,956

)

Proceeds from the maturity of debt securities and sale of other investments

 

17,713

 

 

 

11,227

 

Payments and settlements for acquisitions — net of cash acquired

 

(3,548

)

 

 

(30,884

)

Net cash used in investing activities

 

(64,132

)

 

 

(68,728

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Revolving credit facility — net

 

 

 

 

(84,000

)

Principal payments of long-term debt

 

(8,000

)

 

 

(8,000

)

Proceeds from issuance of common stock upon exercise of options

 

6,901

 

 

 

7,382

 

Taxes paid related to the net share settlement of stock options and restricted stock

 

(1,786

)

 

 

(1,629

)

Payments of deferred and contingent consideration for acquisitions

 

(103,872

)

 

 

(225

)

Net cash used in financing activities

 

(106,757

)

 

 

(86,472

)

Effect of exchange rates on cash, cash equivalents and restricted cash

 

(723

)

 

 

(330

)

Net increase in cash, cash equivalents and restricted cash

 

54,138

 

 

 

24,512

 

Cash, cash equivalents and restricted cash — beginning of period

 

89,451

 

 

 

51,894

 

Cash, cash equivalents and restricted cash — end of period

$

143,589

 

 

$

76,406

 

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Full service

center-based

child care

 

Back-up care

 

Educational

advisory services

 

Total

Three Months Ended June 30, 2024

 

 

 

 

Revenue

$

507,077

 

$

136,490

 

$

26,492

 

$

670,059

 

Income from operations

 

32,644

 

 

31,593

 

 

4,822

 

 

69,059

 

Adjusted income from operations

 

32,644

 

 

31,593

 

 

4,822

 

 

69,059

 

As a percentage of revenue

 

6

%

 

23

%

 

18

%

 

10

%

 

 

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

Revenue

$

458,531

 

$

118,838

 

$

25,847

 

$

603,216

 

Income from operations

 

13,070

 

 

27,470

 

 

4,992

 

 

45,532

 

Adjusted income from operations

 

13,070

 

 

27,470

 

 

4,992

 

 

45,532

 

As a percentage of revenue

 

3

%

 

23

%

 

19

%

 

8

%

 
 

 

Full service

center-based

child care

Back-up care

Educational

advisory services

Total

Six Months Ended June 30, 2024

 

 

 

 

Revenue

$

990,717

 

$

251,162

 

$

50,889

 

$

1,292,768

 

Income from operations

 

54,088

 

 

47,576

 

 

7,332

 

 

108,996

 

Adjusted income from operations

 

54,088

 

 

47,576

 

 

7,332

 

 

108,996

 

As a percentage of revenue

 

5

%

 

19

%

 

14

%

 

8

%

 

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

Revenue

$

888,722

 

$

217,968

 

$

50,132

 

$

1,156,822

 

Income from operations

 

21,503

 

 

45,243

 

 

9,431

 

 

76,177

 

Adjusted income from operations (1)

 

23,247

 

 

49,539

 

 

9,431

 

 

82,217

 

As a percentage of revenue

 

3

%

 

23

%

 

19

%

 

7

%

(1)

 

For the six months ended June 30, 2023, adjusted income from operations represents income from operations excluding value-added-tax expense of $6.0 million related to prior periods, of which $4.3 million was associated with the back-up care segment and $1.7 million was associated with the full service center-based child care segment.

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

NON-GAAP RECONCILIATIONS

(In thousands, except share data)

(Unaudited)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income

$

39,174

 

 

$

20,594

 

 

$

56,163

 

 

$

28,720

 

Interest expense — net

 

12,013

 

 

 

12,219

 

 

 

25,694

 

 

 

25,135

 

Income tax expense

 

17,872

 

 

 

12,719

 

 

 

27,139

 

 

 

22,322

 

Depreciation

 

19,612

 

 

 

19,787

 

 

 

39,600

 

 

 

38,899

 

Amortization of intangible assets (a)

 

5,854

 

 

 

9,132

 

 

 

13,499

 

 

 

17,330

 

EBITDA

 

94,525

 

 

 

74,451

 

 

 

162,095

 

 

 

132,406

 

As a percentage of revenue

 

14

%

 

 

12

%

 

 

13

%

 

 

11

%

Additional adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense (b)

 

8,105

 

 

 

7,463

 

 

 

15,516

 

 

 

13,313

 

Other costs (c)

 

 

 

 

 

 

 

 

 

 

6,040

 

Total adjustments

 

8,105

 

 

 

7,463

 

 

 

15,516

 

 

 

19,353

 

Adjusted EBITDA

$

102,630

 

 

$

81,914

 

 

$

177,611

 

 

$

151,759

 

As a percentage of revenue

 

15

%

 

 

14

%

 

 

14

%

 

 

13

%

 

 

 

 

 

 

 

 

Income from operations

$

69,059

 

 

$

45,532

 

 

$

108,996

 

 

$

76,177

 

Other costs (c)

 

 

 

 

 

 

 

 

 

 

6,040

 

Adjusted income from operations

$

69,059

 

 

$

45,532

 

 

$

108,996

 

 

$

82,217

 

As a percentage of revenue

 

10

%

 

 

8

%

 

 

8

%

 

 

7

%

 

 

 

 

 

 

 

 

Net income

$

39,174

 

 

$

20,594

 

 

$

56,163

 

 

$

28,720

 

Income tax expense

 

17,872

 

 

 

12,719

 

 

 

27,139

 

 

 

22,322

 

Income before income tax

 

57,046

 

 

 

33,313

 

 

 

83,302

 

 

 

51,042

 

Amortization of intangible assets (a)

 

5,854

 

 

 

9,132

 

 

 

13,499

 

 

 

17,330

 

Stock-based compensation expense (b)

 

8,105

 

 

 

7,463

 

 

 

15,516

 

 

 

13,313

 

Other costs (c)

 

 

 

 

 

 

 

 

 

 

6,040

 

Interest on deferred consideration (d)

 

 

 

 

1,471

 

 

 

 

 

 

2,925

 

Adjusted income before income tax

 

71,005

 

 

 

51,379

 

 

 

112,317

 

 

 

90,650

 

Adjusted income tax expense (e)

 

(19,704

)

 

 

(14,540

)

 

 

(31,395

)

 

 

(25,536

)

Adjusted net income

$

51,301

 

 

$

36,839

 

 

$

80,922

 

 

$

65,114

 

As a percentage of revenue

 

8

%

 

 

6

%

 

 

6

%

 

 

6

%

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — diluted

 

58,438,186

 

 

 

57,905,424

 

 

 

58,374,296

 

 

 

57,807,667

 

Diluted adjusted earnings per common share

$

0.88

 

 

$

0.64

 

 

$

1.39

 

 

$

1.13

 

(a)

 

Amortization of intangible assets represents amortization expense, including amortization expense of $3.3 million and $5.0 million for the three months ended June 30, 2024 and 2023, respectively, and of $8.3 million and $10.0 million for the six months ended June 30, 2024 and 2023, respectively, associated with intangible assets recorded in connection with our going private transaction in May 2008.

(b)

 

Stock-based compensation expense represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation.

(c)

 

Other costs in the six months ended June 30, 2023 consist of value-added tax expense of $6.0 million related to prior periods, of which $4.3 million was associated with the back-up care segment and $1.7 million was associated with the full service center-based child care segment.

(d)

 

Interest on deferred consideration represents the imputed interest on the deferred consideration issued in connection with the July 1, 2022 acquisition of Only About Children, a child care operator in Australia. The deferred consideration was paid in January 2024.

(e)

 

Adjusted income tax expense represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 28% for both the three and six months ended June 30, 2024 and 2023. The jurisdictional mix of the expected adjusted income before income tax for the full year will affect the estimated effective tax rate for the year.

 

Contacts

Investors:
Elizabeth Boland
Chief Financial Officer - Bright Horizons
eboland@brighthorizons.com
617-673-8125

Michael Flanagan
Vice President - Investor Relations - Bright Horizons
michael.flanagan@brighthorizons.com
617-673-8720

Media:
Ilene Serpa
Vice President - Communications - Bright Horizons
iserpa@brighthorizons.com
617-673-8044

Contacts

Investors:
Elizabeth Boland
Chief Financial Officer - Bright Horizons
eboland@brighthorizons.com
617-673-8125

Michael Flanagan
Vice President - Investor Relations - Bright Horizons
michael.flanagan@brighthorizons.com
617-673-8720

Media:
Ilene Serpa
Vice President - Communications - Bright Horizons
iserpa@brighthorizons.com
617-673-8044