Bright Horizons Turns To Profit In Q4, Revenues Beat View

(RTTNews) - Child care and early education provider Bright Horizons Family Solutions, Inc. (BFAM) on Thursday reported a turnaround to profit in the fourth quarter on higher revenues that beat analysts' estimates and on a tax benefit. Looking ahead to fiscal 2014, the company forecast earnings in line with analysts' expectations.

The Watertown, Massachusetts-based company's net income available to common shareholders for the fourth quarter was $23.74 million or $0.35 per share, compared to net loss of $17.41 million or $2.87 per share in the same period last year.

The latest quarter's results included transaction costs related to acquisitions and secondary offerings of common stock totaling $1.2 million, compared to costs of $0.4 million in the year-ago period.

Adjusted earnings for the quarter were $21.15 million or $0.32 per share, compared to $9.36 million or $0.17 per share in the prior-year period. On average, nine analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 17 percent to $319.18 million from $273.43 million in the same period last year. Analysts had a consensus revenue estimate of $316.26 million.

The higher revenue reflects contributions from new and ramping full-service child care centers, average price increases of 3 to 4 percent, and expanded sales of back-up dependent care and educational advisory services.

The latest quarter included a tax benefit of $2.42 million compared to tax expense of $1.71 million in the year-ago period.

As of December 31, 2013, Bright Horizons operated 880 early care and education centers with the capacity to serve 99,700 children and families, up 14 percent in capacity since December 31, 2012.

Looking ahead to fiscal 2014, Bright Horizons forecast adjusted earnings in a range of $1.42 to $1.46 per share on overall revenue growth in a range of 10 to 12 percent. Analysts currently expect earnings of $1.45 per share for the year on revenues of $1.36 billion.

BFAM closed Thursday's trading at $39.57, down $0.27 or 0.68 percent on a volume of 82,915 shares.