Bright Horizons Family Solutions Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Bright Horizons Family Solutions Inc. filed its 2023 10-K report detailing operations and financial performance for the fiscal year ending December 31, 2023.</b>

AI Summary

BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) filed a Annual Report (10-K) with the SEC on February 27, 2024. The company operates as a provider of child day care services. The filing covers the fiscal year ending December 31, 2023. The company's principal executive offices are located at 2 Wells Avenue, Newton, MA 02459. The filing includes financial data for the fiscal years 2021, 2022, and 2023. The company was formerly known as Bright Horizons Solutions Corp.

Why It Matters

For investors and stakeholders tracking BRIGHT HORIZONS FAMILY SOLUTIONS INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Bright Horizons' financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's stability and growth prospects. Understanding the company's financial statements and risk factors outlined in this report is essential for stakeholders to make informed investment decisions and evaluate potential future returns.

Risk Assessment

Risk Level: medium — BRIGHT HORIZONS FAMILY SOLUTIONS INC. shows moderate risk based on this filing. The company operates in the child day care services industry, which can be subject to regulatory changes, economic downturns affecting parental spending, and competition, as detailed in the risk factors section of the 10-K.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's performance and potential challenges in the child care sector.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (Date of submission)
• 2023-01-01 — Fiscal Year Start (Reporting period)

Key Players & Entities

• BRIGHT HORIZONS FAMILY SOLUTIONS INC. (company) — Filer name
• BFAM (company) — Ticker symbol
• 2 WELLS AVENUE, NEWTON, MA 02459 (company) — Business address
• 800188269 (company) — IRS number
• Bright Horizons Solutions Corp (company) — Former company name

FAQ

Industry Context

The company operates within the child day care services industry, providing educational and care services for children.

Regulatory Implications

The filing is a standard 10-K report submitted to the SEC, adhering to regulations for public companies.

What Investors Should Do

1. Review the company's financial statements for the fiscal years 2021-2023.
2. Analyze the risk factors section for potential operational and market challenges.
3. Assess the company's business strategy and competitive landscape as described in the filing.

Year-Over-Year Comparison

This is the 2023 10-K filing for Bright Horizons Family Solutions Inc., providing an update on the company's financial and operational status compared to previous periods.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share BFAM New York Stock

Filing Documents

• bfam-20231231.htm (10-K) — 2082KB
• ex211202310k.htm (EX-21.1) — 54KB
• ex231202310k.htm (EX-23.1) — 3KB
• ex311202310k.htm (EX-31.1) — 14KB
• ex312202310k.htm (EX-31.2) — 14KB
• ex321202310k.htm (EX-32.1) — 6KB
• ex322202310k.htm (EX-32.2) — 6KB
• ex97202310k.htm (EX-97) — 24KB
• bfam-20231231_g1.jpg (GRAPHIC) — 84KB
• 0001437578-24-000007.txt (&nbsp;) — 12313KB
• bfam-20231231.xsd (EX-101.SCH) — 82KB
• bfam-20231231_cal.xml (EX-101.CAL) — 143KB
• bfam-20231231_def.xml (EX-101.DEF) — 452KB
• bfam-20231231_lab.xml (EX-101.LAB) — 1125KB
• bfam-20231231_pre.xml (EX-101.PRE) — 780KB
• bfam-20231231_htm.xml (XML) — 1719KB

Business

Item 1. Business 4

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 28

Cybersecurity

Item 1C. Cybersecurity 28

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 30

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 30 Information about our Executive Officers 31 Part II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32

[ Reserved ]

Item 6. [ Reserved ] 33

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 48

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 50

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 88

Controls and Procedures

Item 9A. Controls and Procedures 88

Other Information

Item 9B. Other Information 90

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 90 Part III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 90

Executive Compensation

Item 11. Executive Compensation 90

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 90

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 90

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 90 Part IV.

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 90

Form 10-K Summary

Item 16. Form 10-K Summary 93

Signatures

Signatures 94 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). The following cautionary statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the "safe harbor" provisions of the Act. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "expects," "may," "will," "should," "seeks," "projects," "approximately," "intends," "plans," "estimates" or "anticipates," or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Annual Report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations; financial condition; liquidity; prospects; the industries in which we and our partners operate; the impact of global health pandemics on our near term and long term operations; the effects of a cyber-attack, data breach or other security incident on our information technology system or software or those of our third-party vendors; our expectations around ramping centers, back-up care services, enrollment, occupancy and overall recovery; future center closures; our U.K. operations; cost management and cost-saving initiatives; labor costs and labor market; continued performance and contributions from our back-up care segment and expansion of back-up care solutions; growth of partnerships; impact of the macroeconomic environment and gene

Business

Item 1. Business Our Company For more than 35 years, Bright Horizons has been a champion for working families — designing and delivering innovative education and care solutions. We are a leading provider of high-quality early education and child care, family care solutions, and workforce education services that are designed to help working families and client employees thrive personally and professionally. We provide services primarily under multi-year contracts with employers who offer early education and child care, back-up care, and educational advisory and other services as part of their employee benefits packages. These benefits help employers support their employees across life and career stages and improve recruitment, employee engagement, productivity, retention, and career advancement. We are committed to providing the highest quality education and care across all of our offerings. We are organized in three reportable segments, which are aligned with our service offerings as follows: Full service center-based child care (approximately 74% of our revenue in 2023); Back-up care (approximately 21% of our revenue in 2023); and Educational advisory and other services (approximately 5% of our revenue in 2023). As of December 31, 2023, we had more than 1,450 employer client relationships across a diverse array of industries, including more than 220 Fortune 500 companies. As of December 31, 2023, we operated 1,049 early education and child care centers with the capacity to serve approximately 120,000 children in the United States, the United Kingdom, the Netherlands, Australia, and India. Our History Guided by our HEART principles — Honesty, Excellence, Accountability, Respect, and Teamwork — we have operated early education and child care centers for employers and working parents since 1986. In 1998, we transformed our organization through the merger of Bright Horizons, Inc. and Corporate Family Solutions, Inc., both then Nasdaq-listed companies founded i