Bright Horizons Family Solutions(BFAM)2021-08-05 06:12Financial Data and Key Metrics Changes - Revenue increased by 50% to 34 million, and adjusted net income was 0.49, up 11% from last year [7][18] - Adjusted EBITDA was 81 million, down 40% year-over-year due to a surge in demand during the early pandemic [13][21] - Educational advisory business reported a 24% revenue growth, driven by new client launches and increased activity levels [15][24] Market Data and Key Metrics Changes - Occupancy levels in open full-service centers averaged between 50% to 60%, with expectations to return to pre-COVID levels by year-end [11][41] - Traditional in-center and in-home backup care usage is progressing towards pre-COVID levels, with solid growth in users and uses [22] Company Strategy and Development Direction - The company is focused on reopening centers and ramping up enrollment to pre-COVID levels, with expectations of 95% of centers open by the end of Q3 [29] - The company is actively seeking acquisition opportunities to expand its market presence and enhance service offerings [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recovery and growth opportunities across all business lines, despite ongoing challenges from COVID-19 [17][31] - Labor inflation and tight labor markets are acknowledged as challenges, but the company is managing costs and pricing effectively [61][64] Other Important Information - The company has resumed its share repurchase program, acquiring 9.6 million, consistent with the prior year, and the structural tax rate on adjusted net income was 21% [26] Q&A Session Summary Question: Inquiry about the economics of acquired services - Management explained that the economics of backup care services are based on usage, and the goal is to broaden service relevance to a larger employee population [34] Question: Clarification on educational advisory growth - Management indicated that mid-teens revenue growth is expected, with some headwinds on margins due to ramping the Sittercity business [38] Question: Occupancy rate expectations - Management confirmed that occupancy rates are expected to improve, with a goal of reaching near pre-COVID levels by year-end [41] Question: Addressable market for backup care - Management highlighted a significant opportunity in backup care, noting that the addressable market is larger than onsite childcare services [45] Question: Impact of Delta variant on return-to-office plans - Management noted that while some companies may delay return dates, there is a strong intent among employers to bring employees back to the office [60] Question: Labor inflation and hiring challenges - Management acknowledged labor inflation and a constrained labor pool, but emphasized their ability to price ahead of these challenges [61][64] Question: Center closures and new growth - Management clarified that the closure of centers was a location-by-location decision, with plans for most to reopen [77] Question: Future revenue recovery - Management expects full-service revenues to return to pre-COVID levels in early 2022, contingent on enrollment concentration and tuition levels [52]