Bright Horizons Family Solutions (BFAM) has reported 28.42 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $17.12 million, or $0.28 a share in the quarter, compared with $23.92 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $33.46 million, or $0.56 a share compared with $28.71 million or $0.47 a share, a year ago.
Revenue during the quarter grew 7.25 percent to $398.54 million from $371.60 million in the previous year period. Gross margin for the quarter expanded 70 basis points over the previous year period to 24.90 percent. Total expenses were 88.12 percent of quarterly revenues, up from 87.92 percent for the same period last year. That has resulted in a contraction of 20 basis points in operating margin to 11.88 percent.
Operating income for the quarter was $47.35 million, compared with $44.88 million in the previous year period.
However, the adjusted operating income for the quarter stood at $49.06 million compared to $45.24 million in the prior year period. At the same time, adjusted operating margin improved 14 basis points in the quarter to 12.31 percent from 12.17 percent in the last year period.
"We are pleased to report strong financial results for the fourth quarter and the full year of 2016," said David Lissy, chief executive officer. "Recent studies have shown that more and more young workers say that choosing the right employer is a key part of family planning. At Bright Horizons, we are leading the way in providing our employer clients and the working families that we serve across the world with the critical supports they need to successfully integrate work and life, and maximize their productivity
For financial year 2017, Bright Horizons Family Solutions forecasts revenue to grow in the range of 10 percent to 12 percent. It projects net income to be in the range of $122 million to $124 million, Bright Horizons Family Solutions expects adjusted net income to be in the range of $154 million to $157.50 million. The company expects diluted earnings per share to be in the range of $1.99 to $2.03, the company expects diluted earnings per share to be in the range of $2.52 to $2.58 on adjusted basis.
For the first-quarter, Bright Horizons Family Solutions projects net income to be in the range of $26 million to $26.60 million. It expects adjusted net income to be in the range of $33.50 million to $34.25 million. The company expects diluted earnings per share to be in the range of $0.43 to $0.44. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.55 to $0.56.
Operating cash flow improvesBright Horizons Family Solutions has generated cash of $211.52 million from operating activities during the year, up 24.38 percent or $41.46 million, when compared with the last year. The company has spent $302.84 million cash to meet investing activities during the year as against cash outgo of $155.35 million in the last year.
Cash flow from financing activities was $93.76 million for the year as against cash outgo of $90.58 million in the last year period.
Cash and cash equivalents stood at $12.86 million as on Dec. 31, 2016, up 11.41 percent or $1.32 million from $11.54 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Bright Horizons Family Solutions was negative $236.84 million on Dec. 31, 2016 compared with negative $152.63 million on Dec. 31, 2015. Current ratio was at 0.40 as on Dec. 31, 2016, down from 0.50 on Dec. 31, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
Debt moves upBright Horizons Family Solutions has witnessed an increase in total debt over the last one year. It stood at $1,140.76 million as on Dec. 31, 2016, up 21.46 percent or $201.55 million from $939.21 million on Dec. 31, 2015. Total debt was 48.17 percent of total assets as on Dec. 31, 2016, compared with 43.67 percent on Dec. 31, 2015. Debt to equity ratio was at 1.66 as on Dec. 31, 2016, up from 1.29 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.14 for the quarter from 4.18 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
