NYSE$BFAM

Bright Horizons Family Solutions · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Bright Horizons' Q3 2020 financial performance was impacted by the COVID-19 pandemic, with revenue declining due to center closures and reduced enrollment, although back-up care and educational advisory services provided some offset.

Bright Horizons Family Solutions reported a challenging third quarter in 2020 due to the COVID-19 pandemic. Revenue decreased by 34% compared to the same period in 2019. The company experienced a loss from operations and a net loss, though Back-up Care and Educational Advisory services partially offset the impact.

  • Revenue decreased by 34% to $338 million due to the COVID-19 pandemic.
  • Loss from operations was $6 million, a significant drop from the $63 million income from operations in Q3 2019.
  • Net loss was $7 million, compared to a net income of $41.3 million in the same period last year.
  • Approximately 900 child care centers were open as of September 30, 2020, out of a total of 1,026 centers.

Headline financials

Total Revenue

$338M

Previous: $512M-33.9%
EPS (adj)

$0.02

Previous: $0.86-97.7%
Capital Expenditures

-$54.5M

Previous: -$74.5M+26.8%
Free Cash Flow

-$61.1M

Previous: -$33.2M-84.0%
Net Income

-$6.65M

Previous: $41.3M-116.1%
Operating Income

-$5.93M

Previous: $62.6M-109.5%
Gross Profit

$55.2M

Previous: $125M-55.9%
Cash & Equivalents

$365M

Previous: $48.5M+652.7%
Total Assets

$3.67B

Previous: $3.21B+14.4%
Stock-Based Comp

$5.7M

Previous: $4.72M+20.7%

Revenue & EPS history

Bright Horizons · Revenue · Quarterly

$338M

Q3 2020-33.9%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Bright Horizons · $338M total across 3 segments · Q3 2020

  • Full Service Center-Based Child Care
    $220M
  • Back-Up Care
    $93.1M
  • Educational Advisory Services
    $24.7M

Forward guidance

Due to the unpredictable nature of the COVID-19 pandemic, Bright Horizons is not providing financial guidance for the remainder of fiscal year 2020.

Tailwinds

  • The company will continue to work with local teams on operational decisions.
  • Prudent management of spending to support current operations will continue.
  • The company will continue to re-ramp enrollment.
  • Re-opening of the remainder of the business will continue.
  • The value proposition to families, staff and clients remains consistent and strong.

Headwinds

  • The duration and scope of the ongoing business disruption cannot be predicted.
  • The pace of enrollment ramping at re-opened centers cannot be predicted.
  • The re-opening of the remaining temporarily closed centers cannot be predicted.
  • The situation is dependent on many interdependent variables and decisions by government authorities and client partners.
  • The situation is dependent on demand, economic trends, and developments in the persistence and treatment of COVID-19.

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 Q3 2020

Historical avgQ3 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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