Bright Horizons Family Solutions (BFAM) has reported 67.32 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $41.37 million, or $0.68 a share in the quarter, compared with $24.73 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $36.90 million, or $0.61 a share compared with $31.11 million or $0.51 a share, a year ago. Revenue during the quarter grew 9.56 percent to $422.16 million from $385.32 million in the previous year period. Total expenses were 87.82 percent of quarterly revenues, up from 87.39 percent for the same period last year. That has resulted in a contraction of 44 basis points in operating margin to 12.18 percent.
Operating income for the quarter was $51.40 million, compared with $48.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $51.40 million compared to $48.80 million in the prior year period. At the same time, adjusted operating margin contracted 49 basis points in the quarter to 12.18 percent from 12.67 percent in the last year period.
"We are pleased with the strong start to 2017, as we continue to grow while enhancing the quality of our suite of solutions that impact the lives of those we serve," said David Lissy, chief executive officer. "We are thrilled to have been named for the 17th time to FORTUNE Magazine’s list of 100 Best Companies to Work For in America. It is a valuable recognition that demonstrates to our clients the passion, professionalism and dedication of the Bright Horizons family of people across the country. Creating a culture where women and men are proud to grow their careers while making a lasting difference in the lives of others is core to our ability to deliver on our mission and achieve excellence."
Bright Horizons Family Solutions forecasts revenue to grow in the range of 10 percent to 12 percent for the fiscal year 2017. Bright Horizons Family Solutions projects net income to be in the range of $30.80 million to $31.50 million for the second-quarter. For financial year 2017, Bright Horizons Family Solutions projects net income to be in the range of $128 million to $130 million. Bright Horizons Family Solutions expects adjusted net income to be in the range of $43.20 million to $44.30 million for the second-quarter. For the financial year 2017, Bright Horizons Family Solutions expects adjusted net income to be in the range of $157.10 million to $159.80 million. The company expects diluted earnings per share to be in the range of $0.50 to $0.52 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.09 to $2.12. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.70 to $0.72 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.57 to $2.61 on adjusted basis.
Operating cash flow improvesBright Horizons Family Solutions has generated cash of $106.67 million from operating activities during the quarter, up 24.33 percent or $20.88 million, when compared with the last year period. The company has spent $22.87 million cash to meet investing activities during the quarter as against cash outgo of $13.57 million in the last year period.
The company has spent $77.05 million cash to carry out financing activities during the quarter as against cash outgo of $43.82 million in the last year period.
Cash and cash equivalents stood at $21.49 million as on Mar. 31, 2017, down 46.47 percent or $18.66 million from $40.15 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Bright Horizons Family Solutions was negative $189.65 million on Mar. 31, 2017 compared with negative $142.02 million on Mar. 31, 2016. Current ratio was at 0.47 as on Mar. 31, 2017, down from 0.53 on Mar. 31, 2016.
Days sales outstanding were almost stable at 21 days for the quarter, when compared with the last year period.
Debt moves up
Bright Horizons Family Solutions has witnessed an increase in total debt over the last one year. It stood at $1,077.41 million as on Mar. 31, 2017, up 18.04 percent or $164.65 million from $912.76 million on Mar. 31, 2016. Total debt was 45.34 percent of total assets as on Mar. 31, 2017, compared with 42.57 percent on Mar. 31, 2016. Debt to equity ratio was at 1.48 as on Mar. 31, 2017, up from 1.25 as on Mar. 31, 2016. Interest coverage ratio improved to 4.77 for the quarter from 4.55 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
