KinderCare Learning Companies, Inc. has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $671,476,000 from $624,468,000 in the same quarter the previous year. This growth is attributed to higher tuition rates and increased enrollment.
Cost of services for the quarter was $521,093,000, representing 77.6% of revenue, compared to 75.0% in the same quarter of the previous year. The increase is due to decreased reimbursements from COVID-19 Related Stimulus and higher personnel costs.
The company reported a gross profit of $54,375,000 for the quarter, compared to $58,724,000 in the previous year, with the decline attributed to increased costs.
Interest expense for the quarter was $39,459,000, up from $38,451,000 in the previous year, driven by higher interest on long-term debt.
Net income for the quarter was $13,959,000, down from $16,036,000 in the previous year. The decrease is primarily due to higher costs and expenses.
Cash provided by operating activities was $156,736,000, while cash used in investing and financing activities was $108,702,000 and $67,112,000, respectively.
KinderCare had a working capital of $302,819,000 as of September 28, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including amendments to the Credit Agreement and the issuance of an incremental first lien term loan.
KinderCare does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to ineffective IT general controls.
KinderCare continues to focus on expanding its footprint through greenfield development and strategic acquisitions, highlighting its growth strategy.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the KinderCare Learning Companies Inc. quarterly 10-Q report dated November 21, 2024. To report an error, please email earnings@qz.com.