Bright Horizons Family Solutions, Inc. (NYSE:BFAM) Q2 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 05:00 pm ET

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Bright Horizons Family Solutions, Inc. (NYSE:BFAM) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Bright Horizons Family Solutions Second Quarter 2019 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Elizabeth Boland, Chief Financial Officer. Thank you, Elizabeth. You may begin.

Executive
Elizabeth Boland

Thanks, Ashley, and hello to everybody on the call today. With me on the call are Stephen Kramer, our Chief Executive Officer; and Dave Lissy, our Executive Chair. And after my few administrative matters, I'll turn the call over to Stephen.

Today's call is being webcast and a recording will be available under the Investor Relations section of our website, brighthorizons.com. As a reminder to participants, any forward-looking statements made on this call, including those regarding future financial performance are subject to the safe harbor statement included in our earnings release.

Forward-looking statements inherently involve risks and uncertainties that may cause actual operating and financial results to differ materially and they are described in detail in our 2018 Form 10-K. Any forward-looking statements speaks only as of the date on which it's made, and we undertake no obligation to update any forward-looking statements. We also refer today to non-GAAP financial measures, which are detailed and reconciled to their GAAP counterparts in our earnings release, which is available under the IR section of our website.

So, Stephen will now take us through a review and update on the business. Stephen?

Executive
Stephen Kramer

Thanks, Elizabeth, and thanks to all of you who've joined us this evening. As always on today's call, I'll review our financial and operating results for this past quarter and update you on our growth plans and outlook for 2019. Elizabeth will then follow with a more detailed review of the numbers before we open it up to your questions.

As we move to the second half of 2019, we continue to be very pleased with our strong and consistent performance. For the second quarter of this year, we are reporting top line growth of 8% to $528 million and adjusted EPS growth of 14% to $0.99 a share.

In our full-service business, we added 12 locations, including client-sponsored centers for mind-body, our six centers for Penn State University and three lease/consortium centers in the Greater Seattle area. In addition, we expanded our back-up care and ed advisory client portfolios with recent launches for Nestle, BJC HealthCare, Peloton and WeWork. Our cross-selling and cross promotion efforts also continued to yield good results this past quarter.

A few examples of existing Bright Horizons' clients who added a second or third service this past quarter include Allstate, Freddie Mac, The University of Southern California and Vertex. As we've shared on prior calls, only about a quarter of our existing clients currently purchase more than one of our services. So the addressable opportunity in this area is still significant. Tracking our solid top line growth, we also continued to deliver strong and consistent operating results across the business.

In the second quarter, adjusted operating income grew 13% and expanded 70 basis points to 14.2% of revenue. In our