Kindercare Learning Companies, Inc. · NYSE:KLC
Kindercare Learning Companies — Q1 2025 Earnings Presentation
16 slides from Kindercare Learning Companies's earnings presentation, May 13, 2025
Slide 1: Earnings Results 1st Quarter, 2025
Earnings Results 1st Quarter, 2025 May 13th, 2025
Slide 2: Legal Disclaimer
Legal Disclaimer DISCLAIMER Neither KinderCare Learning Companies, Inc. (“KinderCare”, “the Company” or “we”) nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, or any other written or oral commu
Slide 3: First Quarter FY25 Business Highlights
First Quarter FY25 Business Highlights KinderCare Learning Companies expands its footprint to 41 states and the District of Columbia, Champions Champions expanded into 10 new districts during 1 Entering Idaho 3 Q1 and has increased by 88 sites during the past 12 with acquisition of center located ju
Slide 4: Core Pillars Strategically Aligned to Deliver Positive Results
Core Pillars Strategically Aligned to Deliver Positive Results Foundational principles result in superior child development, engaged employees and families, and profitable results HEALTH & SAFETY EDUCATIONAL EXCELLENCE Safety first – ALWAYS Proprietary curriculum drives better outomes Dedicate
Slide 5: Key Performance Metrics
Key Performance Metrics March 29, 2025 March 30, 2024 Total Centers and Sites Count Early childhood education centers (1) 1,582 1,563 Early childhood education centers (1) Total Before- and after-school sites (2) 1,038 950 December 28, 2024 1,574 Total centers and sites 2,620 2,513 Acquired 5 Three
Slide 6: Revenue and Profitability Continue Growing Over Prior Year
Revenue and Profitability Continue Growing Over Prior Year Revenue ($M) (1) Adjusted EBITDA ($M) (4) +2.1% +12.2% $689.9 $671.5 $668.2 $86.4 $83.6 $654.7 $647.0 $74.4 $71.4 $66.0 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 ECE (2) $605.3 $641.1 $626.4 $593.3 $615.0 TTM $276.8 $280.7 $295.1 $29
Slide 7: Executing Multi-Faceted Portfolio Growth Strategy
Executing Multi-Faceted Portfolio Growth Strategy Total Centers and Sites Average Weekly FTEs (000’s) (1) 145.2 151.1 143.3 144.1 150 141.0 +4.3% 2,591 2,599 2,620 100 2,513 2,423 50 950 1,018 1,025 1,038 855 - 1Q24 2Q24 3Q24 4Q24 1Q25 NCOs (2) and Acquisitions 10 10 10 1,563 1,568 1,573 1,574 1,582
Slide 8: Same-Center Revenue and Occupancy In-Line with Guidance
Same-Center Revenue and Occupancy In-Line with Guidance Same-Center Revenue ($M) (1) Same-Center Occupancy (1) +1.4% (50) bps $632.3 72.3% 69.6% 68.6% 67.9% 69.1% $616.7 $606.4 $597.7 $582.4 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Softer Occupancy in the 1st Quarter Contributed to Slower Y
Slide 9: Strong Balance Sheet is Rightsized for Growth and Liquidity
Strong Balance Sheet is Rightsized for Growth and Liquidity • Ample liquidity to execute strategic plan Liquidity Profile ($M) (1) Revolver availability $262.5 • No material near-term debt maturities Less outstanding letters of credit (55.1) • Corporate/Issuer ratings: B2/B+ Plus unrestricted cash 1
Slide 10: Reiterating FY 2025 Guidance
Reiterating FY 2025 Guidance Revenue Adjusted EBITDA Adjusted EPS $2.75 - $2.85 Billion $310 - $325 Million $0.75 - $0.85 Growth Algorithm Assumptions (% Year over Year Growth Contributions) Occupancy New Center Openings (NCOs) Relatively Flat ~1% Pricing Acquisitions Low end of 3% - 5% 1 – 2% B2B/C
Slide 11: 3rd Party Observations on CCDF Outlook
3rd Party Observations on CCDF Outlook (1) “The federal child care subsidy program remains highly stable with bipartisan support” - Capstone 01 CCDF Overview ACCORDING TO CAPSTONE: “The CCDF is the primary federal subsidy for private child care. The program has existed for decades and is administere
Slide 12: Resilient Subsidy Funding with Consistent Growth and Strong Bipartisan Support
Resilient Subsidy Funding with Consistent Growth and Strong Bipartisan Support (1) CCDF Funding, $B 14.66 13.65 11.24 11.47 10.31 10.30 10.61 9.18 7.86 7.95 7.22 7.31 7.39 7.31 7.45 7.54 6.84 7.16 7.16 7.16 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 202
Slide 13: Appendix / Reconciliations
| aX KINDERCARE LEARNING COMPANIES” Appendix / Reconciliations
Slide 14: Income Statement
Income Statement (In thousands, except per share data) Three Months Ended March 29, March 30, 2025 2024 Revenue $ 668,244 $ 654,670 Costs and expenses: Cost of services (excluding depreciation and impairment) 516,188 497,694 Depreciation and amortization 29,977 28,540 Selling, general, and administr
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In thousands) Three Months Ended FY Ended March 29, December 28, September 28, June 29, March 30, December 30, 2025 2024 2024 2024 2024 2023 Net income (loss) $ 21,157 $ (133,583) $ 13,959 $ 28,535 $ (1,751) $ 102,558 Add back: Interest expense 20,108 50,733 39,459 43
Slide 16: Balance Sheet and Leverage
Balance Sheet and Leverage $M As of March 29, 2025 As of December 28, 2024 As of December 30, 2023 Total Debt (1) $927 $926 $1,250 Revolver (2) - - - Less: Cash (3) $131 $62 $156 Net Debt $796 $864 $1,094 Adjusted TTM EBITDA (4) $307 $298 $266 Net Debt / TTM Adjusted EBITDA (4) 2.6x 2.9x 4.1x Notes:
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