NYSE$BFAM

Bright Horizons Family Solutions · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Bright Horizons experienced a mixed Q1 2020, with revenue increasing slightly but income from operations and net income decreasing due to the impact of COVID-19.

Bright Horizons Family Solutions reported a 1% increase in revenue to $506 million for Q1 2020. However, the company experienced a decrease in income from operations by 31% to $43 million and a decrease in net income by 27% to $31 million. These declines were primarily attributed to the impact of COVID-19, which led to temporary center closures and related impairment charges.

  • Revenue increased by 1% to $506 million compared to Q1 2019, driven by new centers and back-up care services, offset by COVID-19 related closures.
  • Income from operations decreased by 31% to $43 million due to lower gross margins and impairment charges from temporary center closures.
  • Net income decreased by 27% to $31 million, impacted by the decrease in income from operations.
  • The company is prioritizing the health and well-being of children, families, and staff while strengthening its financial position during the COVID-19 pandemic.

Headline financials

Total Revenue

$506M

Previous: $502M+0.9%
EPS (adj)

$0.74

Previous: $0.81-8.6%
Capital Expenditures

-$17.1M

Previous: -$24.2M+29.3%
Free Cash Flow

$13.6M

Previous: $17.8M-23.6%
Net Income

$30.7M

Previous: $42M-26.9%
Operating Income

$43.3M

Previous: $62.9M-31.2%
Gross Profit

$109M

Previous: $127M-14.2%
Cash & Equivalents

$49.2M

Previous: $20.1M+144.6%
Total Assets

$3.35B

Previous: $3.2B+4.8%
Stock-Based Comp

$4.28M

Previous: $3.11M+37.9%

Revenue & EPS history

Bright Horizons · Revenue · Quarterly

$506M

Q1 2020+0.9%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Bright Horizons · $506M total across 3 segments · Q1 2020

  • Full Service Center-Based Child Care
    $411M-1.7%
  • Back-Up Care
    $74.2M+14.6%
  • Educational Advisory Services
    $20.8M+10.8%

Forward guidance

Due to the uncertainty surrounding the COVID-19 pandemic, Bright Horizons is unable to provide financial guidance for fiscal year 2020.

Tailwinds

  • The company will continue to work with local teams on operational decisions.
  • They will prudently manage spending to support current operations.
  • They are preparing for the re-opening of the remainder of the business.
  • The company's value proposition to families, staff and clients remains the same.
  • They are confident in their business model.

Headwinds

  • The duration and scope of the ongoing business disruption cannot be predicted.
  • The pace of re-opening and ramping temporarily closed centers cannot be predicted.
  • The impact is dependent on many interdependent variables.
  • The impact is dependent on decisions by government authorities and client partners.
  • The negative financial impact to our results and future financial or operational performance cannot be reasonably estimated.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

46%

25 / 54 earnings

Positive

+12.4%

Q2 2024

Best reaction

-18.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-16.1%-23.8%
Q4 2025-18.2%-13.4%-6.8%
Q3 2025+12.3%+8.6%+11.4%
Q1 2025-4.2%-3.8%-0.7%
Q4 2024+8.4%+9.5%+6.5%
Q3 2024-13.2%-13.0%-11.1%
Q2 2024+12.4%+10.4%+17.0%
Q1 2024+7.2%+10.2%+1.3%
Q4 2023+6.4%+11.5%+15.3%
Q3 2023+9.5%+14.7%+21.1%
Q2 2023-2.8%-4.6%-2.7%
Q1 2023+5.7%+17.2%+9.2%
Q4 2022+3.9%+2.7%+1.4%
Q3 2022+1.1%+0.2%+14.6%
Q2 2022-12.1%-16.3%-28.3%
Q1 2022-10.1%-23.1%-19.3%
Q4 2021-3.2%-1.3%+3.2%
Q3 2021-12.4%-12.4%-28.5%
Q2 2021-1.0%-1.4%-1.6%
Q1 2021-5.9%-4.8%-1.4%
Q4 2020-9.2%-8.6%-7.9%
Q3 2020-2.2%+5.8%+5.1%
Q2 2020+10.8%+7.9%+22.2%
Q1 2020-7.0%-6.7%+12.5%
Q4 2019+0.2%+0.1%-27.4%
Q3 2019+1.0%-2.8%+2.3%
Q2 2019-1.7%-0.8%+8.5%
Q1 2019+0.6%+1.3%+5.7%
Q4 2018+2.6%+2.7%+6.1%
Q3 2018+0.9%+1.2%+5.9%
Q2 2018+2.5%+1.5%+10.9%
Q1 2018-1.0%+2.2%+5.6%
Q4 2017-0.4%+1.3%+6.8%
Q3 2017+2.8%+3.7%+3.1%
Q2 2017-0.7%-0.4%+1.2%
Q1 2017+4.7%+6.4%+2.5%
Q4 2016-3.3%-3.8%-1.9%
Q3 2016-6.2%-5.7%+1.1%
Q2 2016-2.5%+0.5%+4.5%
Q1 2016-0.3%
Q4 2015-3.4%
Q3 2015+4.1%
Q2 2015+5.0%
Q1 2015+6.3%
Q4 2014+1.6%
Q3 2014-1.3%
Q2 2014-2.2%
Q1 2014+0.4%
Q4 2013-0.9%
Q3 2013-0.3%
Q2 2012-1.1%
Q2 2013-0.5%
Q1 2013-2.2%
Q4 2012+8.1%
Q3 2012
Q1 2012

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