BRIGHT HORIZONS FAMILY SOLUTIONS Reports FY2022 Q4 Earnings Results on February 16 2023
February 22, 2023
Earnings Overview
BRIGHT HORIZONS FAMILY SOLUTIONS ($NYSE:BFAM) reported its financial results for the fourth quarter of fiscal year 2022, ending December 31, 2022, on February 16, 2023. Total revenue for the quarter amounted to USD 18.0 million, indicating a 2.0% year-on-year rise. Net income was recorded at USD 529.5 million, showing a 14.5% year-on-year growth.
Transcripts Simplified
Overall revenue increased 14.5% to $530 million in Q4. Adjusted operating income of $56 million increased 19% over Q4 ‘21, while adjusted EBITDA of $91 million increased 15%. Full service revenue increased $49 million to $338 million or 14% over the prior year; organic constant currency revenue grew approximately 8%. Enrollment in our centers opened for more than 1 year increased mid single-digits. Back-Up Care revenue grew 15%, with $33 million of operating income or 30% of the associated revenue. Educational Advising segment delivered top line growth of 11% to $33 million on expanded use of services; operating income was 33% of revenue.
Interest expense was $11 million, an increase of $3 million over 2021 on increased overall borrowings and higher average interest rates. Structural tax rate on adjusted net income increased to 26%. Generated $57 million in cash from operations compared to $42 million in the same period of 2021. Made successive investments in acquisitions of $23 million compared to $51 million in the fourth quarter of ‘21.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BFAM. More…
| Total Revenues | Net Income | Net Margin |
| 2.02k | 80.64 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 188.47 | -278.05 | -121.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BFAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.8k | 2.72k | 17.28 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.7% | -16.2% | 7.5% |
| FCF Margin | ROE | ROA |
| 6.4% | 9.5% | 2.5% |
Market Price
On Thursday, February 16 2023, BRIGHT HORIZONS FAMILY SOLUTIONS released its FY2022 Quarterly earnings report. This marks the third quarter of BRIGHT HORIZONS’ fiscal year 2022. The stock opened the day at $75.7 but closed at $72.1, dropping by 6.1% from its prior closing price of $76.9. This decrease could largely be attributed to the results reported by BRIGHT HORIZONS FAMILY SOLUTIONS, which fell short of analyst expectations and missed the estimates for both revenue and net income.
The company attributes the positive progress to its continuous focus on expanding its presence by providing quality family solutions and services to its customers. Overall, BRIGHT HORIZONS FAMILY SOLUTIONS reported a decrease in stock prices after releasing their FY2022 Quarterly earnings report. Moving forward, the company is committed to staying focused on providing quality services to their customers as it continues to strive towards achieving its strong financial goals. Live Quote…
Analysis
At GoodWhale, we have evaluated the financials of BRIGHT HORIZONS FAMILY SOLUTIONS and concluded that it is a medium risk investment. We have come to this conclusion after considering a range of different financial and business aspects. Upon further investigation, we have detected 2 risk warnings on its balance sheet, which are non financial in nature. To access this information, please register as a user on our website. With this registration, you can also take advantage of our other services, such as access to investor research and up-to-date market data. More…
Peers
The company operates in the United States, Canada, the United Kingdom, and India. It has a network of more than 1,000 child care centers. The company also offers online learning programs, family support services, and professional development services. The company’s competitors include Mad Paws Holdings Ltd, Rover Group Inc, Mayfield Childcare Ltd.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is a pet care company that operates in Australia and New Zealand. The company offers a range of services including pet sitting, dog walking, dog daycare, and pet boarding. Mad Paws has a market cap of 39.81M as of 2022 and a ROE of -36.33%.
– Rover Group Inc ($NASDAQ:ROVR)
Rover Group Inc is a publicly traded company that manufactures and sells motor vehicles and related products. The company has a market capitalization of 745.75 million as of 2022 and a return on equity of -12.44%. The company’s products include cars, trucks, buses, and other vehicles.
– Mayfield Childcare Ltd ($ASX:MFD)
Mayfield Childcare Ltd is a publicly traded company that operates in the child care industry. The company has a market capitalization of $63.35 million as of 2022 and a return on equity of 7.15%. Mayfield Childcare Ltd provides child care services to families in the United Kingdom. The company operates a network of child care centers that provide care for children aged 0-5 years old.
Summary
BRIGHT HORIZONS FAMILY SOLUTIONS reported strong financial results for their fourth quarter of FY2022, with total revenue of USD 18.0 million and net income of USD 529.5 million, representing year-over-year increases of 2.0% and 14.5%, respectively. Despite this positive news, their stock price dropped the same day, suggesting investors may be cautious about the future outlook for the company. Further analysis is needed to determine the investability of BRIGHT HORIZONS FAMILY SOLUTIONS’ stock given current market trends, potential impacts of COVID-19, and other potential risks or opportunities.
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