KinderCare Learning Companies Files Q3 2024 10-Q

TL;DR

KinderCare's Q3 2024 10-Q is in. Check financials.

AI Summary

KinderCare Learning Companies, Inc. filed its 10-Q for the period ending September 28, 2024. The filing details the company's financial performance and position. Key financial data points and operational updates are provided within the report.

Why It Matters

This filing provides investors and stakeholders with the latest financial health and operational status of KinderCare, a major player in the child day care services industry.

Risk Assessment

Risk Level: medium — As a publicly traded company, KinderCare's 10-Q filings are routine, but the specific financial details and any disclosed risks can impact its stock and industry perception.

Key Players & Entities

• KinderCare Learning Companies, Inc. (company) — Filer of the 10-Q
• 0000950170-24-129727 (other) — Accession Number for the filing
• 20240928 (date) — Conformed period of report
• 20241121 (date) — Filing date
• 5005 MEADOWS ROAD (address) — Company business and mail address
• LAKE OSWEGO, OR 97035 (address) — Company business and mail city, state, zip

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share KLC New York Stock Exchan

Filing Documents

• klc-20240928.htm (10-Q) — 2666KB
• klc-ex10_6.htm (EX-10.6) — 2776KB
• klc-ex31_1.htm (EX-31.1) — 15KB
• klc-ex31_2.htm (EX-31.2) — 15KB
• klc-ex32_1.htm (EX-32.1) — 9KB
• klc-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-129727.txt ( ) — 14359KB
• klc-20240928.xsd (EX-101.SCH) — 1497KB
• klc-20240928_htm.xml (XML) — 2076KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Consolidated Balance Sheets (Unaudited) 2 Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) 3 Condensed Consolidated Statements of Shareholder's Equity (Unaudited) 4 Condensed Consolidated Statements of Cash Flows (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 43 PART II. OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Risk Factors

Risk Factors 44 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 3. Defaults Upon Senior Securities 44 Item 4. Mine Safety Disclosures 44 Item 5. Other Information 44 Item 6. Exhibits 45

Signatures

Signatures 46 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by our use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "seek," "vision," or "should," or the negative thereof or other variations thereon or comparable terminology. Forward-looking statements include those we make regarding the following matters: our ability to address changes in the demand for child care and workplace solutions; our ability to adjust to shifts in workforce demographics, economic conditions, office environments and unemployment rates; our ability to hire and retain qualified teachers, management, employees, and maintain strong employee engagement; the impact of public health crises, such as the COVID-19 pandemic, on our business, financial condition and results of operations; our ability to address adverse publicity; changes in federal child care and education spending policies and budget priorities; our ability to acquire additional capital; our ability to successfully identify acquisition targets, acquire businesses and integrate acquired operations into our business; our reliance on our subsidiaries; our ability to protect our intellectual property rights; our ability to protect our information technology and that of our third-party service providers; our ability to manage the costs and liabilities of collecting, using, storing, disclosing, transferring and processing personal information; our ability to manage payment-related risks; our expectations regarding the effects of existing and developing laws and regulations, litigation and regulatory proceedings; our ability to maintain adequate insurance coverage; the fluctuati

—FIN ANCIAL INFORMATION

PART I—FIN ANCIAL INFORMATION Ite m 1. Financial Statements (Unaudited). KinderCare Learning Companies, Inc. Condensed Consolidated B alance Sheets (Unaudited) (In thousands, except share data) September 28, 2024 December 30, 2023 Assets Current assets: Cash and cash equivalents $ 137,240 $ 156,147 Accounts receivable, net 100,923 88,086 Prepaid expenses and other current assets 64,656 39,194 Total current assets 302,819 283,427 Property and equipment, net 413,310 395,745 Goodwill 1,119,259 1,110,591 Intangible assets, net 432,149 439,001 Operating lease right-of-use assets 1,372,242 1,351,863 Other assets 82,718 72,635 Total assets $ 3,722,497 $ 3,653,262 Liabilities and Shareholder's Equity Current liabilities: Accounts payable and accrued liabilities $ 226,680 $ 154,463 Current portion of long-term debt 15,827 13,250 Operating lease liabilities—current 144,731 133,225 Deferred revenue 28,181 25,807 Other current liabilities 89,114 99,802 Total current liabilities 504,533 426,547 Long-term debt, net 1,496,423 1,236,974 Operating lease liabilities—long-term 1,315,098 1,301,656 Deferred income taxes, net 57,715 60,733 Other long-term liabilities 113,153 120,472 Total liabilities 3,486,922 3,146,382 Commitments and contingencies (Note 16) Shareholder's equity: Common stock, par value $ 0.01 ; 200,000,000 shares authorized; 90,366,089 shares issued and outstanding as of September 28, 2024 and December 30, 2023 904 904 Additional paid-in capital 77,425 383,188 Retained earnings 163,844 123,101 Accumulated other comprehensive loss ( 6,598 ) ( 313 ) Total shareholder's equity 235,575 506,880 Total liabilities and shareholder's equity $ 3,722,497 $ 3,653,262 See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited) 2 KinderCare Learning Com

View Full Filing

View this 10-Q filing on SEC EDGAR