NEWTON, Mass.–(BUSINESS WIRE)–Bright Horizons Family Solutions Inc. (NYSE: BFAM), a top provider of early education, child care, family care solutions, and workforce education, announced its financial results for the second quarter of 2024 and updated its financial guidance for the year.
Second Quarter 2024 Highlights:
Revenue rose to $670 million, marking an 11% increase from the same period last year.
Income from operations reached $69 million, a 52% rise.
Net income surged to $39 million, with diluted earnings per share increasing to $0.67, up 90% and 91%, respectively.
Adjusted EBITDA grew by 25% to $103 million.
Adjusted income from operations increased by 52% to $69 million.
Adjusted net income reached $51 million, with diluted adjusted earnings per share at $0.88, up 39% and 38%, respectively.
CEO’s Comments:
Stephen Kramer, Chief Executive Officer, stated, “We had a strong second quarter in 2024. Our performance showed solid growth, highlighted by an 11% increase in full-service revenue and a 38% growth in adjusted EPS. Given our strong results and positive business momentum, we are raising our full-year revenue and adjusted EPS outlook.”
Quarterly Financial Performance:
Revenue for Q2 2024 increased by $66.8 million, or 11%, compared to Q2 2023. This growth was driven by higher enrollment and tuition fees, as well as increased use of back-up care services.
Income from operations for Q2 2024 was $69.1 million, up 52% from $45.5 million in Q2 2023. This increase was due to higher gross profit from enrollment growth and improved operational efficiency. However, this was partially offset by a $9.3 million drop in pandemic-related government support and higher overhead costs. Net income rose 90% to $39.2 million, and diluted earnings per share increased to $0.67.
Adjusted EBITDA for Q2 2024 was $102.6 million, a 25% increase. Adjusted income from operations also rose by 52% to $69.1 million. Adjusted net income grew 39% to $51.3 million, with diluted adjusted earnings per share reaching $0.88.
As of June 30, 2024, Bright Horizons operated 1,032 centers, serving about 115,000 children.
Balance Sheet and Liquidity:
By June 30, 2024, the company held $140.2 million in cash and had $389.8 million available under its revolving credit facility. Cash generated from operations was $225.8 million, up from $180.0 million in the same period last year. Net investments for the first half of 2024 totaled $64.1 million. Additionally, $106.5 million was paid for deferred and contingent consideration related to the 2022 acquisition of Only About Children in Australia.
2024 Outlook:
Bright Horizons expects 2024 revenue to range between $2.65 billion and $2.7 billion, with diluted adjusted earnings per share between $3.30 and $3.40. Further details will be provided in the upcoming earnings conference call.
Conference Call:
The company will hold a conference call today at 5:00 pm ET to discuss Q2 2024 results and its updated outlook. To participate, dial 1-877-407-9039 or 1-201-689-8470 for international callers, and request the Bright Horizons call. Replays will be available until August 15, 2024, at 1-844-512-2921 or 1-412-317-6671, conference ID #13744696. The call’s audio webcast and this press release can be accessed through the Investor Relations section of Bright Horizons’ website at www.brighthorizons.com.
Forward-Looking Statements:
This release contains forward-looking statements, including predictions about future financial performance. Actual results may differ significantly due to various factors, such as changes in demand for services, labor market conditions, government support, and economic fluctuations. The company does not undertake to update these statements unless required by law.
About Bright Horizons Family Solutions Inc.:
Bright Horizons provides high-quality early education, child care, back-up care, and workforce education services. With over 35 years of experience, Bright Horizons operates more than 1,000 centers in the U.S., U.K., Netherlands, Australia, and India, serving over 1,450 leading employers. The company supports employees at every stage of their personal and professional lives.