Bright Horizons Family Solutions Inc (BFAM) Reports 20% Revenue Growth in Q3 2023
Bright Horizons Family Solutions Inc (NYSE:BFAM) reported a 20% increase in revenue for Q3 2023, reaching $646 million.
Income from operations rose by 71% to $67 million, while net income saw a 119% increase to $40 million.
Diluted earnings per common share increased by 123% to $0.69.
Adjusted EBITDA and adjusted income from operations increased by 26% and 46% respectively.
On November 1, 2023, Bright Horizons Family Solutions Inc (NYSE:BFAM), a leading provider of high-quality early education and child care, family care solutions, and workforce education services, announced its financial results for the third quarter of 2023.
Financial Highlights
The company reported a 20% increase in revenue, reaching $646 million, compared to the third quarter of 2022. This increase was attributed to enrollment gains and price increases at existing centers, as well as expanded sales and increased utilization of back-up care.
Income from operations saw a significant increase of 71%, reaching $67 million. Net income also saw a substantial increase of 119%, reaching $40 million. Diluted earnings per common share increased by 123% to $0.69.
Adjusted income from operations and adjusted EBITDA also saw increases of 46% and 26% respectively. Adjusted net income increased by 34% to $51 million, and diluted adjusted earnings per common share increased by 33% to $0.88.
CEO Commentary
I am pleased with our third quarter results featuring 20% revenue growth and more than 30% adjusted EPS growth, said Stephen Kramer, Chief Executive Officer. Our Full Service segment performed well with continued enrollment gains and 17% revenue growth, while our Back-Up Care segment reported a record revenue quarter with more than 30% year-over-year growth. Our results demonstrate the positive momentum in our business, the breadth of our suite of solutions and our steadfast commitment to quality in all that we do.
Balance Sheet and Liquidity
As of September 30, 2023, the company had $40.9 million of cash and cash equivalents and $351.4 million available for borrowing under its revolving credit facility. In the nine months ended September 30, 2023, the company generated $161.0 million of cash from operations, compared to $131.0 million for the same period in 2022.
2023 Outlook
Based on current trends and expectations, the company expects fiscal year 2023 revenue to be in the range of $2.375 billion to $2.4 billion, and diluted adjusted earnings per common share to be in the range of $2.73 to $2.78.
Explore the complete 8-K earnings release (here) from Bright Horizons Family Solutions Inc for further details.
This article first appeared on GuruFocus.
