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KinderCare Learning Companies Inc. (KLC-12.17%) has filed its Form 10-K filing for the fiscal year ended December 28, 2024.
The filing reports total revenue of $2,663,035,000, an increase from $2,510,182,000 in the previous year. This growth was driven by higher tuition rates and increased enrollment at both early childhood education centers and before- and after-school sites.
Cost of services, excluding depreciation and impairment, rose to $2,032,513,000, up from $1,824,324,000. This increase was attributed to higher personnel costs and reduced reimbursements from COVID-19 related stimulus programs.
Depreciation and amortization expenses increased to $117,606,000, reflecting additional capital expenditures and depreciation of assets from acquired and new centers.
The company reported a net loss of $92,840,000, compared to a net income of $102,558,000 in the prior year. This was largely due to a significant increase in equity-based compensation expenses related to the modification of the profit interest units plan.
KinderCare completed its initial public offering in October 2024, raising net proceeds of approximately $616.1 million, which were primarily used to repay outstanding debt.
The company continues to expand its footprint, acquiring 23 early childhood education centers during the fiscal year. Goodwill from these acquisitions totaled $9.1 million.
KinderCare's long-term debt stood at $918,719,000 as of December 28, 2024, with the company entering into several amendments to its credit facilities during the year to optimize interest rates and extend maturity dates.
The company is subject to various risks, including changes in demand for childcare services, regulatory changes, and competition from other providers.
KinderCare's strategic growth initiatives include increasing same-center revenues, expanding employer-sponsored programs, and pursuing strategic acquisitions in the fragmented early childhood education market.
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. annual 10-K report dated March 21, 2025. To report an error, please email earnings@qz.com.