NYSE$BFAM

Bright Horizons Family Solutions · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Bright Horizons' financial performance improved in the second quarter of 2021, with revenue and income from operations increasing significantly compared to the same period in 2020.

Bright Horizons reported a 50% increase in revenue to $441 million and a 319% increase in income from operations to $34 million in the second quarter of 2021. The company's recovery from the pandemic is on track, with enrollment and back-up usage returning.

  • Revenue increased by 50% to $441 million.
  • Income from operations increased by 319% to $34 million.
  • Net income increased to $19 million, with diluted earnings per share of $0.31.
  • Adjusted EBITDA increased by 13% to $68 million.

Headline financials

Total Revenue

$441M

Previous: $294M+50.3%
EPS (adj)

$0.49

Previous: $0.44+11.4%
Operating Margin

7.7%

No prior period
Capital Expenditures

-$34M

Previous: -$32.4M-4.9%
Free Cash Flow

-$15.1M

Previous: -$32M+52.7%
Net Income

$18.8M

Previous: $359K+5140.9%
Operating Income

$34M

Previous: $8.11M+319.2%
Gross Profit

$106M

Previous: $65.2M+62.5%
Cash & Equivalents

$419M

Previous: $270M+54.8%
Total Assets

$3.74B

Previous: $3.61B+3.6%
Stock-Based Comp

$5.83M

Previous: $5.16M+13.1%

Revenue & EPS history

Bright Horizons · Revenue · Quarterly

$441M

Q2 2021+50.3%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Bright Horizons · $441M total across 3 segments · Q2 2021

  • Full Service Center-Based Child Care
    $334M+143.6%
  • Back-Up Care
    $81.5M-40.0%
  • Educational Advisory Services
    $25.6M+24.3%

Forward guidance

Bright Horizons remains focused on ramping up its centers and re-opening temporarily closed centers throughout 2021, but is not providing full earnings guidance due to the unpredictable effects of COVID-19.

Tailwinds

  • Focused on ramping up centers
  • Phased re-opening of temporarily closed centers
  • Confident in business model
  • Strong client partnerships
  • Strong balance sheet and liquidity position

Headwinds

  • COVID-19 pandemic has substantially disrupted global operations
  • Broad effects of COVID-19 cannot be predicted
  • Duration of COVID-19 disruptions cannot be predicted
  • Scope of ongoing and related disruptions cannot be predicted
  • Negative financial impact to results and future financial 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 Q2 2021

Historical avgQ2 2021

-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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