CALGARY, July 31, 2014 /CNW/ - BrightPath Early Learning
Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading
Canadian provider of quality early childhood education and care,
announced today its operational and financial results for the three
and six month periods ended June 30,
2014. The financial results demonstrate continuation of a
successful implementation of the profitable growth strategy
enunciated last year, and significant progress towards the
operating and financial goals set for 2014.
Portfolio performance highlights for the three months ended
June 30, 2014 are as follows (all
comparisons are against the same period last year and all amounts
are in thousands except per share amounts, unless otherwise
noted):
- The highest quarterly revenue in the Company's history at
$13.2 million, an increase of
10.4%;
- Adjusted EBITDA set a new quarterly record at $1.7 million, an increase of 84.6%;
- Funds From Operations ("FFO") of $1.4
million ($0.012 per share), an
increase of 119.0%;
- Adjusted Funds From Operations ("AFFO") increased $0.7 million or 108.4% to a new quarterly record
of $1.36 million ($0.011 per share);
- Improved centre margin which rose to 27.8% of revenue compared
with 26.9%;
- Average occupancy was 87.3%;
- Following a restructuring that included both a reduction in
corporate overhead and a cost- effective relocation of certain
accounting and operational functions, general and administrative
costs decreased 24.4% to $1.2
million, the third consecutive quarterly decline; and
- The Alberta portfolio
generated 72% of centre margin (with 61% of the Company's licensed
spaces) in the second quarter due in part to an emphasis on new,
larger developments that have delivered very strong operational and
financial performance. These developments serve as a template for
over 800 of the additional 920 spaces which the Company has
announced to grow its platform in Western
Canada, as well as additional pipeline opportunities, all of
which will be financed from the Company's existing financial
resources.
Significant events in 2014 include the following:
- The Company announced plans to open a new child care centre in
Cochrane, Alberta creating 120
spaces in leased premises in this rapidly growing, under-serviced
community in close proximity to Calgary;
- BrightPath announced its intention to develop a greenfield
centre in the Symons Valley area of northwest Calgary in the Creekside commercial
development, developed by Hopewell Developments in conjunction with
Canadian Real Estate Investment Trust ("CREIT"), representing an
additional 250 licensed child care spaces modeled on the highly
successful and well-received McKenzie Towne development in
southeast Calgary;
- The Company's first Edmonton
greenfield development, on lands within the Melcor Developments
West Henday Promenade Shopping Centre representing 250 spaces, was
announced;
- The Company initiated the process of expanding its Airdrie, Alberta centre from 50 licensed
spaces to 111, with completion scheduled for late 2014; and
- Construction of the Surrey
centre achieved substantial completion with the scheduled opening
of 200 child care spaces in the fall of 2014.
"Results for the second quarter continue to demonstrate the
successful execution of the Company's plan to deliver significant
increases to its reported financial results and to grow profitably,
most immediately in Western
Canada," said Mary Ann
Curran, Chief Executive Officer of BrightPath. "The
fundamentals of the business model are being optimized through an
unwavering commitment to product quality and improvement and
tenacity with respect to revenue optimization and cost
reduction. The active pursuit of substantial accretive growth
leverages this solid business base for very significant growth in
profitability."
Financial Review
($000's except where otherwise noted
and per share amounts)
Selected Quarterly Information
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Q3
2012
|
Revenue
|
$
|
13,181
|
$
|
12,703
|
$
|
12,182
|
$
|
11,211
|
$
|
11,941
|
$
|
11,484
|
$
|
10,594
|
$
|
8,818
|
Centre
margin
|
3,670
|
3,626
|
3,209
|
2,592
|
3,216
|
3,159
|
2,731
|
2,108
|
Centre margin
%
|
27.8
|
28.5
|
26.3
|
23.1
|
26.9
|
27.5
|
25.8
|
23.9
|
Adjusted
EBITDA
|
1,704
|
1,560
|
926
|
226
|
923
|
973
|
590
|
(74)
|
FFO
|
1,415
|
1,250
|
688
|
(161)
|
646
|
760
|
228
|
(285)
|
AFFO
|
1,361
|
1,329
|
728
|
(113)
|
653
|
756
|
320
|
(400)
|
Net profit
(loss)
|
133
|
(653)
|
(1,282)
|
(1,287)
|
(504)
|
(396)
|
(1,587)
|
(1,543)
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
FFO
|
0.012
|
0.010
|
0.006
|
(0.001)
|
0.005
|
0.006
|
0.002
|
(0.002)
|
AFFO
|
0.011
|
0.011
|
0.006
|
(0.001)
|
0.005
|
0.006
|
0.003
|
(0.003)
|
Net
profit (loss)
|
0.001
|
(0.005)
|
(0.011)
|
(0.011)
|
(0.004)
|
(0.003)
|
(0.013)
|
(0.013)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
2014, the Company reported revenue of $13,181 (June 30,
2013 - $11,941) and centre
margin of $3,670 (June 30, 2013 - $3,216). The year over year increase in revenue
was primarily due to fee increases implemented, for the most part,
effective January 1, 2014, offset by
a slight decrease in average child enrollments of 0.4 percentage
points. Centre margin as a percentage of revenue increased to 27.8%
compared with 26.9% a year earlier, with the increase mainly
attributable to utilizing the information now available through the
Company's ERP system to optimize labour efficiency and costs.
Adjusted EBITDA for the second quarter of 2014 was $1,704 compared to $1,560 in the first quarter of 2014 and
$923 in the second quarter of 2013.
Adjusted EBITDA improved on a sequential quarter basis and compared
to the second quarter of 2013 due primarily to higher centre margin
and lower general and administrative expenses.
Adjusted EBITDA, AFFO and FFO – Certain Amounts Amended For
Correction
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Q3
2012
|
Centre margin for the
period
|
3,670
|
3,626
|
|
3,209
|
|
2,592
|
|
3,216
|
|
3,159
|
|
2,731
|
|
2,108
|
Generl and
administrative expense
|
(1,170)
|
(1,276)
|
(1,518)
|
(1,610)
|
(1,547)
|
(1,453)
|
(1,466)
|
(1,501)
|
Taxes, other than
income taxes
|
(43)
|
(43)
|
(34)
|
(30)
|
(26)
|
(48)
|
(43)
|
(47)
|
Operating lease
expense
|
(753)
|
(747)
|
(731)
|
(726)
|
(720)
|
(685)
|
(632)
|
(634)
|
Adjusted
EBITDA
|
$
|
1,704
|
$
|
1,560
|
$
|
926
|
$
|
226
|
$
|
923
|
$
|
973
|
$
|
590
|
$
|
(74)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Q3
2012
|
Net profit (loss) for
the period
|
133
|
|
(653)
|
|
(1,282)
|
|
(1,287)
|
|
(504)
|
|
(396)
|
|
(1,587)
|
(1,543)
|
Depreciation and
certain other non-
cash
items
|
852
|
853
|
929
|
851
|
843
|
773
|
845
|
761
|
Acquisition and
development costs
|
232
|
280
|
214
|
275
|
307
|
383
|
430
|
497
|
Restructuring
costs
|
198
|
770
|
827
|
-
|
-
|
-
|
-
|
-
|
Terminated
projects
|
-
|
-
|
-
|
-
|
-
|
-
|
540
|
-
|
FFO
|
$
|
1,415
|
$
|
1,250
|
$
|
688
|
$
|
(161)
|
$
|
646
|
$
|
760
|
$
|
228
|
(285)
|
Stock based
compensation
|
93
|
103
|
76
|
176
|
129
|
61
|
174
|
170
|
Maintenance capital
expenditure
|
(147)
|
(24)
|
(36)
|
(128)
|
(122)
|
(65)
|
(82)
|
(285)
|
AFFO
|
$
|
1,361
|
$
|
1,329
|
$
|
728
|
$
|
(113)
|
$
|
653
|
$
|
756
|
$
|
320
|
(400)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO for the second quarter of 2014 was $1,415 compared to $1,250 in the first quarter of 2014 and
$646 in the second quarter of 2013.
The increase over prior quarter amounts is primarily due to higher
centre margin and lower general and administrative expenses. FFO
per share for the second quarter of 2014 was $0.012 compared to $0.005 for the second quarter of
2013.
AFFO for the second quarter of 2014 was $1,361 compared to $1,329 in the first quarter of 2014 and
$653 in the second quarter of 2013.
AFFO increased on a sequential quarter basis primarily due to
increased centre margin and lower general and administrative
expenses, offset by an increase in maintenance capital expenditures
which typically occur with greater intensity during the seasonally
slower summer months. AFFO increased by $708 compared to the second quarter of 2013
primarily due to increased centre margin and lower general and
administrative expenses, partially offset by increased finance
costs, operating lease expense and maintenance capital
expenditures. AFFO per share for the second quarter of 2014 was
$0.011 compared to $0.005 for the second quarter of 2013.
For the three months ended June 30,
2014, comparable centre revenue increased year over year
9.3% in Alberta, 13.6% in
British Columbia, and 0.8% in
Ontario. Comparable centre margin rose by 10.4% in
Alberta and 32.2% in British Columbia, and declined 1.9% in
Ontario. Comparable centre
occupancies improved in Alberta
and British Columbia, while
Ontario occupancy declined
compared to the prior year period due to the roll out of full day
kindergarten ("FDK"). The decrease in centre margin in Ontario reflects a shift towards younger
children who generate lower margins than older children affected by
FDK. As a result of the completion of implementation of the
Company's Enterprise Resource Planning System ("ERP"), the
management of costs, particularly labour, has been considerably
more effective than in previous periods.
There was a delay by one quarter in realizing the cost savings
related to food procurement and other goods and services consumed
in Alberta due to unforeseen
personnel and implementation challenges. The impact of the savings
of approximately $100,000 quarterly
will be realized beginning in the third quarter. As well, earlier
this year, there was a delay implementing the Company's planned
services and programming for ancillary revenue. The Company has
recently obtained the permits, consents and regulatory approvals to
proceed on a pilot program basis commencing in September. As
such, incremental revenues related to this initiative will commence
in the third quarter.
Included in comparable centres are two newly-developed centres.
Enrollments at these centres continue to show strength
demonstrating the pent up demand for quality child care which
underpins the Company's growth strategy.
|
McKenzie
Towne
Calgary
|
Chestermere
Calgary
|
Total
|
Capital invested ($
millions)
|
6.1
|
6.1
|
12.2
|
Spaces #
|
2861
|
247
|
533
|
Average occupancy %
Q2 2013
|
85.8
|
75.1
|
80.8
|
Average occupancy %
Q2 2014
|
97.5
|
81.2
|
89.9
|
1The number of licensed spaces at McKenzie Towne was
expanded from 247 to 286 in October
2013.
New Locations
Situated in the West Henday Promenade, the Company's first new
development in the Edmonton market
will be located at the access point to Lewis Estates and central to
several other high-growth master-planned communities. Across from a
major public transit hub and adjacent to Anthony Henday Drive
(Edmonton's major ring road), the
primary trade area consists of more than 25,000 residents, with
projected housing starts indicating a doubling of the population by
2018. Current information on the supply of child care spaces
indicates fewer than 700 licensed spaces available to address
existing market demand. Modelled on the highly successful McKenzie
Towne and Chestermere newly-built
day care centres in Calgary, the
West Henday centre will comprise approximately 250 licensed child
care spaces in a 20,000 square foot facility constructed on a 0.8
acre parcel of land.
The Company is securing the Edmonton land site through a long-term ground
lease arrangement with Melcor Developments Ltd. (MRD-TSX).
BrightPath will commence construction upon satisfaction of
conditions and receipt of a development permit.
The Company's most recently announced Calgary greenfield location is located in the
Symons Valley area central to five master planned residential
communities and adjacent to Evanston, the fastest growing residential
community in the city. The primary trade area consists of
more than 50,000 residents, with projected housing starts
indicating almost twice the population by 2017. Current information
on the supply of child care spaces indicates fewer than 300
licensed spaces to address existing market demand. When completed,
the Symons Valley centre will house approximately 250 licensed
child care spaces in a 20,000 square foot facility on a 0.9 acre
parcel of land acquired through a long-term ground lease agreement.
The Symons Valley centre is the Company's first project involving
Hopewell Developments and CREIT.
In Cochrane, Alberta, the
Company has entered into a premises lease for space to accommodate
approximately 120 licensed child care spaces to meet the demand for
child care in this market. The Company's centre in Cochrane will be conveniently located adjacent
to Highway 1A, the arterial road that intersects with Crowchild and
Stoney Trail in Calgary, reinforcing Cochrane as an increasingly desirable place to
live based on its proximity to the latest generation of
transportation links. The primary trade area, which consists of
more than 20,000 residents, has experienced over 700 residential
construction starts since 2013 and is projected to benefit from
continued rapid population growth. Current information on the
supply of child care indicates fewer than 470 licensed
spaces.
Child Care Centre Portfolio Overview
The Company's child care centre locations, number of licensed
spaces and average occupancy rates are as shown in the table that
follows. Average occupancies exhibit lower levels of
attendance June through August due to summer seasonality.
Area:
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Q3
2012
|
Alberta
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
30
3,121
91.7
|
30
3,121
91.0
|
30
3,121
91.2
|
30
3,082
87.3
|
30
3,082
91.8
|
29
2,953
89.9
|
29
2,953
85.8
|
28
2,706
81.3
|
British
Columbia
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
7
576
83.4
|
7
576
81.8
|
7
576
78.4
|
7
576
72.4
|
8
609
78.9
|
8
609
78.2
|
8
609
77.1
|
8
609
63.7
|
Ontario
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
14
1,434
79.3
|
14
1,434
76.4
|
14
1,440
72.1
|
14
1,440
63.7
|
14
1,440
82.8
|
14
1,428
80.7
|
13
1,381
78.5
|
10
1,300
64.6
|
Total
Ending
Centres #
Ending
Spaces #
Avg. Occupancy
%
|
51
5,131
87.3
|
51
5,131
85.9
|
51
5,137
84.4
|
51
5,098
79.0
|
52
5,131
87.7
|
51
4,990
85.9
|
50
4,943
82.7
|
46
4,615
74.3
|
Deferred Share Units ("DSUs")
For the three months ended June 30,
2014, pursuant to the Board of Directors DSU plan, five
members of the board of directors of BrightPath elected to receive
board fees in the form of DSUs representing $67 fair value in respect of 190,177 DSUs.
The DSUs were issued on July 15,
2014.
Executive Options and Announcement
The Company is pleased to announce the appointment of
Elizabeth (Liz) Bradbeer to the
position of Chief Operating Officer. Ms. Bradbeer has recently
served as Vice President Operations and brings more than 20 years
of experience in large multi-channel retail enterprises. Liz holds
a CPA designation and Master of Accounting from the University of Waterloo.
On July 31, 2014, the board of
directors ratified the issuance of stock options to Mary Ann Curran, Dale
Kearns and Liz Bradbeer for
150,000, 75,000 and 50,000 options, respectively. The options
are priced at $0.55 per share, vest
over a period of three years and have a term of five years.
Likewise, options to purchase 75,000 common shares were granted to
each of Messrs. Clarke, Gallivan, Goodman and Olin who are
directors of the Company. The options have a term of five
years, vest over six months and are exercisable at $0.55 per share.
Outlook
As the Company completes its first half of operations for 2014,
it is well positioned to take advantage of growth both from
operating leverage and through its announced development program
and pipeline opportunities. These initiatives are anticipated
to deliver an increase of approximately 25% of licensed child care
spaces commencing in the current quarter with the opening of our
first new leasehold development in the Vancouver area. In summary, the Company
remains focussed on the following objectives:
- To generate substantially higher EBITDA through optimizing a
return on capital invested - through improved management of
enrollment and mix, market-based pricing of fees, and management of
all costs - labour, other operating and general and administrative;
and
- To improve upon its earlier success with new locations
developed by the Company that layer on substantial, accretive
growth. At quarter end the Company has available capital of
$26 million to fully fund both its
announced and near term pipeline growth plans.
As we move forward in 2014, the Company will continue to
demonstrate its commitment to these objectives.
The Company has believed for several quarters that its common
shares remain substantially undervalued. This is particularly the
case in consideration of its established track record, significant
improvement in the Company's financial performance, profitability,
free cash flow and its growth program. In this light, the Company's
board of directors has begun to consider various options to enhance
shareholder value and liquidity including its approval today,
subject to, among other things, regulatory approval, of the
implementation of a Normal Course Issuer Bid.
NON- IFRS PERFORMANCE MEASURES
The Company uses "centre margin" as a performance indicator of
child care centre operating results. Centre margin does not have a
standardized meaning prescribed by IFRS and therefore may not be
comparable with the calculation of similar measures by other
entities. Centre margin is determined by deducting centre expenses
from revenue. Centre expenses exclude net rents due under leases
for leasehold properties and mortgage interest, if any, on those
properties owned by the Company.
BrightPath utilizes a number of key measures, such as Adjusted
EBITDA, FFO, AFFO, occupancy and centre margin, that in its opinion
are critical to measuring the progress of the Company towards its
objectives. The Company uses "comparable centre results" and
"stabilized centre results" to measure performance. Centres are
deemed to be comparable once there is a full calendar year of
results for comparative purposes. Acquired centres in Alberta are deemed to be stabilized 12 months
following their acquisition. Acquired centres in Ontario and British
Columbia and new development centres in all provinces are
deemed to be stabilized after 24 months.
Adjusted EBITDA is calculated by deducting from centre margin:
general and administrative expenses, operating lease expense and
taxes other than income taxes. FFO is calculated by adjusting
the net loss to add back acquisition costs expensed as incurred,
depreciation and certain other non-cash items. AFFO is calculated
by adjusting FFO to add back stock based compensation and deduct
maintenance capital expenditures. Maintenance capital
expenditures consist of capital expenditures that are capitalized
for accounting purposes but are considered to represent recurring
costs such as facilities and leasehold maintenance and the
replacement of toys, appliances and other equipment.
Adjusted EBITDA, FFO and AFFO do not have standardized meanings
prescribed by IFRS. The Company's method of calculating
Adjusted EBITDA, FFO and AFFO may be different from other entities
and, accordingly, may not be comparable to such other entities.
Adjusted EBITDA, FFO and AFFO: (i) do not represent cash flow from
operating activities as defined by IFRS; (ii) are not indicative of
cash available to fund all liquidity requirements, including
capital for growth; and (iii) are not to be considered as
alternatives to IFRS based net income for the purpose of evaluating
operating performance.
Net profit / loss is impacted by, among other items, accounting
standards that require child care centre acquisition and
transaction costs to be expensed as incurred. As the Company
executes its consolidation and development strategy in the Canadian
child care market, it will routinely incur such expenses which will
negatively impact the Company's reported net profit / loss, but not
Adjusted EBITDA, FFO and AFFO.
QUARTERLY CONFERENCE CALL
BrightPath's quarterly results conference call is scheduled for
Friday, August 1, 2014 at
10:00 am EST. The call details
are as follows:
To access the conference call by telephone, dial +1 (647)
427-7450 or +1 (888) 231-8191. Please connect approximately 10
minutes prior to the beginning of the call. The conference call
will be archived for replay until Friday,
August 15, 2014 at midnight. To access the archived
conference call, dial +1 (416) 849-0833 or +1 (855) 859-2056 and
enter the reservation password 74649606 followed by the number
sign.
A live audio webcast of the conference call will be available
at: http://www.newswire.ca/en/webcast/detail/1386529/1538203.
Please connect at least 10 minutes prior to the conference call to
ensure adequate time for any software download that may be required
to join the webcast. The webcast will be archived at the above
website for 90 days.
FORWARD-LOOKING STATEMENTS:
Certain statements in this Release, which are not historical
facts, may constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Any statements related to
BrightPath's projected revenues, earnings, growth rates, revenue
mix, staffing and resources, and product plans are forward-looking
statements as are any statements relating to future events,
conditions or circumstances.
The use of terms such as "believes", "anticipates", "expects",
"projects", "targeting", "estimate", "intend" and similar terms are
intended to assist in identification of these forward-looking
statements. Readers are cautioned not to place undue reliance upon
any such forward-looking statements. Such forward-looking
statements are not promises or guarantees of future performance and
involve both known and unknown risks and uncertainties that may
cause the actual results, performance, achievements and/or
developments of BrightPath to differ materially from the results,
performance, achievements and/or developments expressed or implied
by such forward-looking statements. Forward-looking statements are
based on management's current plans, estimates, projections,
beliefs and opinions. Except as required by law, BrightPath does
not undertake any obligation to update forward-looking statements
should assumptions related to these plans, estimates, projections,
beliefs and opinions change.
The Company undertakes no obligation, except as required by law,
to update publicly or otherwise any forward-looking information,
whether as a result of new information, future events or otherwise,
or the above list of factors affecting this information. Many
factors could cause the actual results of BrightPath to differ
materially from the results, performance, achievements and/or
developments expressed or implied by such forward-looking
statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
BrightPath Early Learning Inc.
Consolidated Statements of Financial Position
(Unaudited)
(CDN
$000's)
|
|
June
30,
2014
|
December
31,
20131
|
Assets
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
Property and
equipment
|
|
$
|
45,996
|
$
|
46,187
|
Goodwill and definite
life intangible assets
|
|
30,140
|
30,273
|
|
|
76,136
|
76,460
|
Current
assets
|
|
|
|
Cash
|
|
2,320
|
3,940
|
Accounts
receivable
|
|
2,021
|
1,891
|
Prepaid and other
expenses
|
|
1,314
|
968
|
Short term
investments
|
|
39
|
39
|
|
|
5,694
|
6,838
|
|
|
|
|
Total
Assets
|
|
$
|
81,830
|
$
|
83,298
|
|
Liabilities
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Long term debt and
financing leases
|
|
$
|
17,315
|
$
|
17,936
|
Convertible debentures – liability
component
|
|
|
4,394
|
|
4,413
|
Provision for
restructuring costs
|
|
|
181
|
|
118
|
|
|
21,890
|
22,467
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
|
3,365
|
3,314
|
Current portion of
provision for restructuring costs
|
|
438
|
542
|
Deferred
revenue
|
|
740
|
1,216
|
Current portion of
debt and financing leases
|
|
1,234
|
1,272
|
|
|
5,777
|
6,344
|
|
|
|
|
Total
Liabilities
|
|
27,667
|
28,811
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
Share
capital
|
|
66,030
|
66,030
|
Convertible debentures
– equity component
|
|
342
|
342
|
Equity settled share
based compensation
|
|
2,222
|
2,026
|
Accumulated
deficit
|
|
(14,431)
|
(13,911)
|
Total Shareholders'
Equity
|
|
54,163
|
54,487
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
81,830
|
$
|
83,298
|
1Certain amounts reclassified to conform to current
year presentation.
BrightPath Early Learning Inc.
Consolidated Statements of Operations and Comprehensive Income
(Loss)
Three and six months ended June 30, 2014 and
2013
(Unaudited)
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
(CDN
$000's)
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
|
Revenue
|
|
$
|
12,791
|
$
|
11,605
|
$
|
25,154
|
$
|
22,796
|
Government
grants
|
|
|
390
|
|
336
|
|
730
|
|
629
|
Total
revenue
|
|
|
13,181
|
|
11,941
|
|
25,884
|
|
23,425
|
|
|
|
|
|
|
Centre
expenses
|
|
|
|
|
|
Salaries, wages and
benefits
|
6,828
|
6,369
|
13,476
|
12,491
|
Other operating
expenses
|
2,683
|
2,356
|
5,112
|
4,559
|
Centre
margin
|
|
3,670
|
3,216
|
7,296
|
6,375
|
|
|
|
|
|
|
Operating
leases
|
|
753
|
720
|
1,500
|
1,405
|
Finance
|
|
388
|
291
|
740
|
584
|
General and
administrative
|
|
1,170
|
1,547
|
2,446
|
3,000
|
Taxes, other than
income taxes
|
|
43
|
26
|
86
|
74
|
Restructuring
costs
|
|
198
|
-
|
968
|
-
|
Acquisition and
development costs
|
|
232
|
307
|
512
|
690
|
Stock-based
compensation
|
|
93
|
129
|
196
|
190
|
Depreciation and
amortization
|
|
713
|
715
|
1,427
|
1,367
|
|
|
3,590
|
3,735
|
7,875
|
7,310
|
|
|
|
|
|
|
Profit (loss) before
other income
|
|
80
|
(519)
|
(579)
|
(935)
|
|
|
|
|
|
|
Other
income
|
|
53
|
15
|
59
|
35
|
Net Profit (Loss)
and Total Comprehensive Income (Loss)
|
$
|
133
|
$
|
(504)
|
$
|
(520)
|
$
|
(900)
|
|
|
|
|
|
|
Net profit (loss) per
share
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.001
|
$
|
(0.004)
|
$
|
(0.004)
|
$
|
(0.007)
|
Weighted average
number of common shares
|
|
|
|
|
|
Basic and
diluted
|
|
121,719,316
|
121,719,316
|
121,719,316
|
121,719,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BrightPath Early Learning Inc.
Consolidated Statements of Changes in Shareholders'
Equity
Six months ended June 30,
2014 and 2013
(Unaudited)
(CDN
$000's)
|
|
Share
Capital
|
Convertible Debentures –
Equity
Component
|
Equity
Settled
Share
Based
Compensation
|
Accumulated
Deficit
|
Shareholders' Equity
|
|
|
|
|
|
|
|
Balance at January
1, 2013
|
$
|
66,030
|
$
|
342
|
$
|
1,584
|
$
|
(10,442)
|
$
|
57,514
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
-
|
-
|
190
|
-
|
190
|
Net loss and
comprehensive loss
|
|
-
|
-
|
-
|
(900)
|
(900)
|
|
|
|
|
|
|
|
Balance at
June 30, 2013
|
$
|
66,030
|
$
|
342
|
$
|
1,774
|
$
|
(11,342)
|
$
|
56,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January
1, 2014
|
$
|
66,030
|
$
|
342
|
$
|
2,026
|
$
|
(13,911)
|
$
|
54,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
-
|
|
-
|
|
196
|
|
-
|
|
196
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
|
-
|
|
-
|
|
-
|
|
(520)
|
|
(520)
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
June 30, 2014
|
$
|
66,030
|
$
|
342
|
$
|
2,222
|
$
|
(14,431)
|
$
|
54,163
|
|
|
|
|
|
|
|
|
|
|
|
|
BrightPath Early Learning Inc.
Consolidated Statements of Cash Flow
Three and six
months ended June 30, 2014 and
2013
(Unaudited)
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
(CDN
$000's)
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
Net profit
(loss)
|
|
$
|
133
|
$
|
(504)
|
$
|
(520)
|
$
|
(900)
|
Items not affecting
cash:
|
|
|
|
|
|
Depreciation and
amortization
|
|
713
|
715
|
1,427
|
1,367
|
Depreciation included
in operating costs
|
|
38
|
31
|
75
|
55
|
Finance
costs
|
|
388
|
291
|
740
|
584
|
Stock-based
compensation
|
|
93
|
129
|
196
|
190
|
Change in fair value
of convertible debenture liability component
|
|
(50)
|
-
|
(50)
|
-
|
Change in non-cash
working capital
|
|
(678)
|
(506)
|
(1,030)
|
(270)
|
Non-current portion
of provision for restructuring costs
|
|
(69)
|
-
|
63
|
-
|
Cash generated by
operations
|
|
568
|
156
|
901
|
1,026
|
|
|
|
|
|
|
Finance costs
paid
|
|
(387)
|
(319)
|
(602)
|
(513)
|
Net cash generated
(used) by operating activities
|
|
181
|
(163)
|
299
|
513
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Acquisitions
|
|
-
|
(2,188)
|
-
|
(2,188)
|
Property and
equipment
|
|
(841)
|
(730)
|
(1,178)
|
(1,040)
|
|
|
(841)
|
(2,918)
|
(1,178)
|
(3,228)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Loan
proceeds
|
|
-
|
2,350
|
-
|
2,350
|
Loan
repayments
|
|
(287)
|
(158)
|
(573)
|
(290)
|
Financing transaction
costs
|
|
(30)
|
-
|
(47)
|
-
|
Finance lease
repayments
|
|
(61)
|
(81)
|
(121)
|
(120)
|
|
|
(378)
|
2,111
|
(741)
|
1,940
|
|
|
|
|
|
|
Change in
Cash
|
|
(1,038)
|
(970)
|
(1,620)
|
(775)
|
Cash at beginning of
period
|
|
3,358
|
5,995
|
3,940
|
5,800
|
Cash at end of
period
|
|
$
|
2,320
|
$
|
5,025
|
$
|
2,320
|
$
|
5,025
|
|
|
|
|
|
|
|
|
SOURCE BrightPath Early Learning Inc.