NYSE$BFAM

Bright Horizons Family Solutions · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Bright Horizons' financial performance demonstrated resilience with revenue increase and improved profitability.

Bright Horizons reported a strong third quarter with a 36% increase in revenue to $460 million, driven by enrollment increases and re-opening of child care centers. Net income significantly improved to $27 million, and diluted earnings per share reached $0.44.

  • Revenue increased by 36% to $460 million compared to Q3 2020.
  • Income from operations increased to $46 million from a loss of $5.9 million in the same period last year.
  • Net income was $27 million, a significant increase from a loss of $6.7 million in Q3 2020.
  • Diluted earnings per common share increased to $0.44, up from a diluted loss per share of $0.11 in Q3 2020.

Headline financials

Total Revenue

$460M

Previous: $338M+36.2%
EPS (adj)

$0.64

Previous: $0.02+3100.0%
Capital Expenditures

-$47.4M

Previous: -$54.5M+13.1%
Free Cash Flow

-$20.5M

Previous: -$61.1M+66.4%
Net Income

$26.8M

Previous: -$6.65M+503.1%
Operating Income

$46M

Previous: -$5.93M+875.9%
Gross Profit

$120M

Previous: $55.2M+118.0%
Cash & Equivalents

$412M

Previous: $365M+12.9%
Total Assets

$3.71B

Previous: $3.67B+1.0%
Stock-Based Comp

$5.6M

Previous: $5.7M-1.8%

Revenue & EPS history

Bright Horizons · Revenue · Quarterly

$460M

Q3 2021+36.2%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Bright Horizons · $460M total across 3 segments · Q3 2021

  • Full Service Center-Based Child Care
    $334M+51.7%
  • Back-Up Care
    $99.2M+6.6%
  • Educational Advisory Services
    $27.3M+10.2%

Forward guidance

Due to the broad effects of COVID-19, its duration and the scope of ongoing and related disruptions, cannot be predicted and the negative financial impact to our results and future financial performance cannot be reasonably estimated. Therefore, we are not at this time and do not currently expect to provide full earnings guidance for the remainder of fiscal 2021.

Tailwinds

  • Confident in our business model
  • Confident in the strength of our client partnerships
  • Confident in the strength of our balance sheet
  • Confident in our liquidity position
  • Confident in our ability to continue to respond to changing market conditions

Headwinds

  • COVID-19 pandemic has substantially disrupted our global operations
  • Remain focused on the ramping of our centers
  • Phased re-opening of the limited number of centers that remain temporarily closed
  • The broad effects of COVID-19, its duration and the scope of ongoing and related disruptions, cannot be predicted
  • The negative financial impact to our 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 Q3 2021

Historical avgQ3 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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