Thu, Nov 21, 9:17 PM (229 days ago)
For the third quarter ended September 28, 2024, KinderCare Learning Companies, Inc. (KLC) reported revenues of $671,476,000, a 7.5% increase from $624,468,000 in the prior year. The revenue growth was driven by higher tuition rates and increased enrollment, particularly in early childhood education centers, which generated $626,439,000. However, net income decreased to $13,959,000 from $16,036,000, reflecting rising costs, particularly in personnel and operating expenses, which increased by 11.2% to $521,093,000. The company's operating margin contracted to 8.1%, down from 9.4% a year ago. Cash flow from operations fell significantly to $156,736,000 from $307,764,000, impacted by reduced reimbursements from COVID-19 stimulus programs. Total liabilities rose to $3,486,922,000, primarily due to increased long-term debt, which reached $1,496,423,000. The company remains focused on expanding its footprint through acquisitions and enhancing service offerings while navigating uncertainties related to government funding and changing market conditions. The effective tax rate was 22.9%, and the company recorded significant equity-based compensation expenses due to recent modifications in its incentive plans.