BOSTON, April 03, 2025 (GLOBE NEWSWIRE) -- Block & Leviton is investigating KinderCare Learning Companies (NYSE: KLC) for potential securities law violations. Investors who have lost money in their KinderCare Learning Companies investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/klc. What is this all about? Shares of KinderCare Learning Companies fell over 12% in intraday trading on April 3, 2025, following the re ...

I gave a buy rating to KinderCare Learning (NYSE: KLC ) in November last year, with my key thesis being that KLC can capitalize on the underlying secular trend. That turned out to be a badI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intri ...

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes. Follow us for updates on LinkedIn, X, and Facebook, and keep up with other news by following Bra ...

NEW YORK, March 31, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of KinderCare Learning Companies, Inc. ("KinderCare" or the "Company") (NYSE: KLC). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980. The investigation concerns whether KinderCare and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] O ...

I was excited to see KinderCare Learning Companies, Inc. (NYSE: KLC ) go public with its IPO last October. I sent my kids there as preschoolers, and the family had a great experience for a reasonable cost. Unfortunately, in aDr. Duru has blogged about financial markets since the year 2000. A veteran of the dot-com bubble and bust, the financial crisis, and the coronavirus pandemic, he fully appreciates the value in trading and investing around the extremes of market behavior. In this spirit, his blog "One-T ...

Core Viewpoint - KinderCare Learning Companies, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following disappointing financial results and a significant drop in share price [1][4]. Group 1: Company Overview - KinderCare conducted its initial public offering (IPO) on October 9, 2024, selling 24 million shares at a price of $24.00 per share [3]. - The company reported an operational loss of $89.3 million for the fourth quarter of 2024, a stark contrast to an operational income of $48.7 million in the same quarter of the previous year [4]. Group 2: Financial Performance - The operational loss was attributed to increased equity-based compensation expenses and lower COVID-19 stimulus reimbursements [4]. - KinderCare's full-year guidance for 2025 fell short of consensus estimates, leading to a significant decline in share price [4]. - Following the announcement of the financial results, KinderCare shares dropped by $3.92, or approximately 22%, from $17.68 to $13.76 [4]. Group 3: Legal Investigation - The law firm Kirby McInerney LLP is investigating potential claims against KinderCare regarding possible violations of federal securities laws [1]. - The investigation may involve certain officers of KinderCare in addition to the company itself [1].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-42367 KinderCare Learning Companies, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of inco ...

KinderCare Learning Companies, Inc. (NYSE:KLC) Q4 2024 Results Earnings Conference Call March 20, 2025 5:00 PM ET Company Participants Olivia Kirrer - Vice President, Growth Finance and M&A Paul Thompson - Chief Executive Officer Tony Amandi - Chief Financial Officer Conference Call Participants Andrew Steinerman - J.P. Morgan Toni Kaplan - Morgan Stanley Ronan Kennedy - Barclays George Tong - Goldman Sachs Jeff Silber - BMO Faiza Alwy - Deutsche Bank Jeffrey Meuler - Baird Joshua Chan - UBS Operator Welcom ...

Financial Data and Key Metrics Changes - Total revenues grew 5% year-over-year to $2.7 billion, with adjusted EBITDA increasing by 12% to $298 million [21][34] - Adjusted EPS for the fourth quarter was $0.09, with an adjusted EBITDA margin of 10%, flat year-over-year [34][38] - Same center revenue increased by 5% to $2.4 billion, with average weekly full-time enrollments slightly up to 145,000 [21][22] Business Line Data and Key Metrics Changes - Early education centers saw a 4% revenue growth year-over-year to $593 million, with same center revenue up 3% [35] - Champions business revenue expanded by 12% in the fourth quarter, totaling $54 million, with 1,025 sites, an 8% increase from the previous year [36][20] Market Data and Key Metrics Changes - Demand for quality early childhood education in the US continues to exceed supply, presenting growth opportunities [9][10] - Occupancy rates improved by 90 basis points to 69.8%, with expectations for continued growth [22][40] Company Strategy and Development Direction - KinderCare aims to expand access to high-quality childcare through new centers and acquisitions, leveraging its scale and brand recognition [10][11] - The company is focused on enhancing its offerings to meet the needs of families and employers, including customized childcare benefits [14][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued bipartisan support for early childhood education funding, which is crucial for growth [16][62] - The outlook for 2025 includes revenue guidance of $2.75 billion to $2.85 billion, representing a 3% to 7% increase, with adjusted EBITDA expected to range from $310 million to $325 million [45][46] Other Important Information - Approximately 35% of total revenue in 2024 came from subsidy funding, with 20% from employer partnerships [26][27] - The company opened 77 new Champion sites in 2024 and plans to continue this momentum in 2025 [28] Q&A Session Summary Question: How is the first quarter trending relative to guidance? - Management indicated that the first quarter is tracking in line with annual guidance, with $4.6 million of revenue from acquisitions in Q4 [56][57] Question: What percentage of revenue is tied to US federal government funding? - Approximately 35% of revenue comes from the Child Care and Development Block Grant, with bipartisan support expected to continue [61][62] Question: What are the expectations for occupancy rates in lower quintiles? - Management noted that engagement with teachers and families is key to improving occupancy in lower-performing centers [68][69] Question: What factors could influence revenue and margin guidance? - Revenue growth will depend on occupancy rates and cost controls, with potential upside from acquisitions if market conditions remain favorable [70][74] Question: How is the B2B employer-sponsored business performing? - Occupancy rates in employer-sponsored centers are trending in the high 70s, with opportunities for further expansion [78][79] Question: What is the rationale for expecting flat occupancy in 2025? - Management emphasized the need for operational practices to gain traction before expecting significant occupancy increases [100][101] Question: Are acquisitions included in the revenue guidance? - The revenue guidance includes a 1% to 2% contribution from acquisitions, but specific volume guidance is not provided [102][103]

Revenue Performance - Total revenue for Q4 2024 increased by $29.0 million, or 4.7%, to $647.0 million compared to $618.0 million in Q4 2023[5] - Revenue from early childhood education centers rose by $23.0 million, or 4.0%, driven by a 3% increase in tuition rates and a 1% increase in enrollment[5] - Revenue from before- and after-school sites increased by $6.0 million, or 12.5%, primarily due to new site openings and increased enrollment[6] - Revenue for the fiscal year ended December 28, 2024, was $2,663,035, an increase of 6.1% from $2,510,182 in the previous year[28] Profitability and Loss - Loss from operations for Q4 2024 was $89.3 million, a significant change from an income of $48.7 million in Q4 2023, largely due to increased equity-based compensation expenses[7] - Net loss for Q4 2024 was $133.6 million, compared to a net income of $14.8 million in Q4 2023, reflecting a $148.4 million change[7] - Net loss for the fiscal year ended December 28, 2024, was $92,840, compared to a net income of $102,558 in the previous year, marking a significant decline[28] - Basic and diluted net loss per common share for the fiscal year ended December 28, 2024, was $(0.96), down from $1.13 in the previous year[28] Adjusted Metrics - Adjusted EBITDA for Q4 2024 increased by $3.1 million, or 4.9%, to $66.0 million, while adjusted net income rose to $10.7 million from $0.1 million in Q4 2023[10] - Adjusted EBITDA for the fiscal year ended December 28, 2024, was $298,123, an increase from $266,382 in the previous year[32] - Adjusted net income for the three months ended December 28, 2024, was $10.7 million, compared to $0.1 million for the same period in 2023, representing a significant increase[33] - Adjusted net income per common share for the fiscal year ended December 28, 2024, was $0.40, up from $0.20 in the previous fiscal year[33] Cash and Financial Position - As of December 28, 2024, the company had $62.3 million in cash and cash equivalents and $184.2 million in available borrowing capacity[12] - Cash provided by operating activities for the fiscal year ended December 28, 2024, was $115,887, a decrease from $303,540 in the previous year[30] - The company incurred interest expenses of $170,539 for the fiscal year ended December 28, 2024, compared to $152,893 in the previous year[28] Company Operations - As of December 28, 2024, the company operated 1,574 early childhood education centers and 1,025 before- and after-school sites[11] - For fiscal year 2025, the company expects revenue to be approximately $2.75 billion to $2.85 billion, with adjusted EBITDA projected at $310 million to $325 million[14] - The fiscal year 2025 outlook includes a 53rd week, contributing an estimated $45 million to $50 million in revenue and $10 million to $12 million in adjusted EBITDA[14] Impairments and Expenses - The company reported a total impairment loss of $10,535 for the fiscal year ended December 28, 2024, down from $13,560 in the previous year[28] - The company recognized $7.4 million in COVID-19 related stimulus funding for the three months ended December 28, 2024, and $63.3 million for the fiscal year[35] - Equity-based compensation expense for the three months ended December 28, 2024, included $113.1 million related to a one-time modification to the PIUs Plan[34] - The company recognized a one-time expense of $14.3 million related to advance distributions to Class B PIU recipients in March 2024[34] Shareholder Information - The weighted average number of common shares outstanding for the fiscal year ended December 28, 2024, was 96,309, an increase from 90,366 in the previous year[28] - The weighted average number of common shares outstanding for the three months ended December 28, 2024, was 114,136,000, compared to 90,366,000 for the same period in 2023[33] - The company completed an initial public offering, generating proceeds of $625,968 during the fiscal year ended December 28, 2024[30] Debt and Financing - The company incurred $3.6 million in transaction costs associated with its incremental first lien term loan during the fiscal year ended December 28, 2024[35] - Loss on extinguishment of long-term debt for the fiscal year ended December 28, 2024, was primarily due to the repayment of $608.0 million on the first lien term loan[34] - The non-GAAP tax rate was 25.8% for both the three months and fiscal years ended December 28, 2024, and December 30, 2023[34]