On Friday, Bright Horizons Family Solutions Inc. (NYSE: BFAM) stock observed trading -29.46% off 52-week high price. On the other end, the stock has been noted 12.53% away from low price over the last 52-weeks. The stock disclosed a move of -22.39% away from 50 day moving average and -18.85% away from 200 day moving average. Moving closer, we can see that shares have been trading -20.86% off 20-day moving average.
Bright Horizons Family Solutions® Inc. (BFAM) recently reported financial results for the fourth quarter and full year of 2019 and provided guidance for 2020.
Fourth Quarter 2019 Results
Revenue increased $42.4M, or 9%, in the fourth quarter of 2019 from the fourth quarter of 2018 on contributions from new and ramping full-service child care centers, average price increases of 3-4%, expanded sales of our back-up care and educational advisory services, and acquisitions.
Income from operations was $67.4M for the fourth quarter of 2019, a raise from $63.7M in the same 2018 period. Increases in revenue and gross profit reflect contributions from enrollment gains in new and ramping centers, as well as back-up care and educational advisory clients that have increased utilization levels or been added since the fourth quarter of 2018 and efficiencies in service delivery across the expanding consumer base. These gains were partially offset by investments in marketing and technology to support our end-user experience, and costs incurred during the pre-opening and ramp-up phase of newer lease/consortium centers. Net income was $47.8M for the fourth quarter of 2019 contrast to net income of $46.7M in the same 2018 period, a raise of $1.1M, or 2%, attributable to the expanded income from operations, and offset by a higher effective tax rate for the fourth quarter of 2019. The tax rate for the fourth quarter of 2018 included a one-time benefit related to the finalization of tax positions for foreign tax filings. Diluted earnings per ordinary share was $0.81 for the fourth quarter of 2019 contrast to $0.79 in the fourth quarter of 2018.
In the fourth quarter of 2019, adjusted EBITDA increased $7.1M, or 8%, to $100.4M, and adjusted income from operations increased $3.7M, or 6%, to $67.4M from the fourth quarter of 2018 due primarily to the expanded gross profit. Adjusted net income increased by $6.3M, or 12%, to $59.5M on the expanded income from operations. Diluted adjusted earnings per ordinary share was $1.01 contrast to $0.90 in the fourth quarter of 2018.
As of December 31, 2019, the Company had over 1,150 client relationships with employers across a diverse array of industries, and operated 1,084 child care and early education centers with the capacity to serve about 120,000 children and their families.
*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per ordinary share are non-GAAP measures. Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization, the excess of lease expense over cash lease expense, stock-based compensation expense, and transaction costs. Adjusted income from operations represents income from operations before transaction costs. Adjusted net income represents net income determined in accordance with GAAP, adjusted for stock-based compensation expense, amortization expense, transaction costs, and the income tax expense (benefit) thereon. Diluted adjusted earnings per ordinary share is a non-GAAP measure, calculated using adjusted net income. These non-GAAP measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”
The USA based company Bright Horizons Family Solutions Inc. moved with change of 6.21% to $124.84 with the total traded volume of 755956 shares in recent session versus to an average volume of 336.16K. The stock was observed in the 5 days activity at -17.70%. BFAM’s shares are at -17.43% for the quarter and driving a -0.20% return over the course of the past year and is now at -16.93% since this point in 2018. Right now the stock beta is 0.45. The average volatility for the week and month was at 7.22% and 4.26% respectively. There are 65.36M shares outstanding and 57.39M shares are floated in market.