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Jun 30, 2020
Bright Horizons Q2 2020 Earnings Report
Bright Horizons faced significant challenges due to the COVID-19 pandemic, with revenue and income decreasing substantially, but demonstrated resilience through back-up care services and cost management.
Key Takeaways
Bright Horizons Family Solutions reported a 44% decrease in revenue and a significant drop in net income due to the temporary closure of child care centers during the COVID-19 pandemic. The company managed to offset some of the losses through growth in back-up care services and cost management initiatives.
Revenue decreased by 44% compared to the second quarter of 2019 due to temporary closures of child care centers.
Income from operations decreased by 89% due to reduced gross profit and impairment charges.
Net income decreased by 99% due to the decrease in income from operations.
The company expanded Back-Up Care services to support families affected by child care and school closures.
Bright Horizons
Bright Horizons
Bright Horizons Revenue by Segment
Revenue by Segment
Full service center-based child care Revenue
CapyFin.comBack-up care Revenue
CapyFin.comEducational advisory services Revenue
CapyFin.com Forward Guidance
Due to the uncertainty surrounding the COVID-19 pandemic, Bright Horizons is not providing financial guidance for fiscal year 2020.
Positive Outlook
- Value proposition to families, staff and clients remains consistent and strong.
- Highlights crisis management abilities.
- Critical role in the business continuity plans of client partners.
- Leadership in developing and implementing enhanced health and safety protocols.
- Value that the unique service offering provides to the families and clients served.
Challenges Ahead
- Duration and scope of the ongoing business disruption cannot be predicted.
- Pace of re-opening and ramping temporarily closed centers cannot be predicted.
- Dependent on many interdependent variables and decisions by government authorities and client partners.
- Negative financial impact to the results and future financial or operational performance cannot be reasonably estimated.
- Do not expect to provide financial guidance for fiscal 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income