CALGARY, Nov. 20, 2014 /CNW/ - BrightPath Early Learning
Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading
Canadian provider of high-quality, comprehensive early childhood
education and care, announced today its operational and financial
results for the three and nine month periods ended September 30, 2014. The financial results
clearly demonstrate that the successful implementation of the
profitable growth strategy communicated last year is continuing,
and that significant progress towards the operating and financial
goals set for 2014 is being achieved.
Portfolio performance highlights for the three months ended
September 30, 2014, which reflect the
typically adverse impact of the summer season on the Company's
operations, 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):
- A 7.2% increase in revenue to $12.0
million;
- Adjusted EBITDA of $0.8 million,
an increase of 254.4%;
- Improved centre margin which rose to 23.2% of revenue compared
with 23.1%;
- Average occupancy of 77.2% compared with 79.0% a year
earlier;
- A significant decrease of 29.3% in general and administrative
costs to $1.1 million;
- Funds from Operations ("FFO") of $517 ($0.004 per
share) compared with $(161)
($0.001 loss per share) in the prior
year;
- Adjusted Funds from Operations ("AFFO") increased $0.4 million to $0.3
million ($0.002 per share from
$0.001 loss per share in 2013);
and
- Available capital of $25 million
at period end to fund its pipeline of growth initiatives, including
an additional 870 child care spaces or 16% to the Company's current
portfolio of 5,390 spaces.
Highlights for the nine months ended September 30, 2014:
- Revenues of $37.9 million
compared to $34.6 million in 2013, an
increase of 9.4%;
- Adjusted EBITDA of $4.1 million
compared to $2.1 million in 2013, an
increase of 91.6%;
- Higher centre margin of $10.1
million (26.6% of revenue) compared to $9.0 million (25.9% of revenue) in 2013, an
increase of 12.4%;
- A significant decrease of 22.3% in general and administrative
costs to $3.6 million from
$4.6 million in 2013;
- A 155.6% increase in FFO to $3.2
million ($0.03 per share)
compared to $1.2 million
($0.01 per share) in 2013, a
substantial increase of $2.0 million;
and
- A 130.2% increase in AFFO to $3.0
million ($0.02 per share)
compared to $1.3 million
($0.01 per share) in 2013, an
increase of $1.7 million.
Significant events during 2014 to date include:
- 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 the city of 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;
- The Company's first Edmonton
greenfield development, on lands within Melcor Developments' West
Henday Promenade Shopping Centre representing 250 spaces, was
announced. Both the West Henday and Symons Valley developments are
being modeled on the highly successful and well-received
McKenzie Towne development in
southeast Calgary;
- BrightPath expanded its Stony
Plain centre in the Edmonton,
Alberta area, increasing its licensed capacity from 121 to
151 child care spaces;
- The Company initiated the process of expanding its Airdrie, Alberta centre from 50 licensed child
care spaces to 111;
- The Surrey centre, in a
rapidly growing area within metropolitan Vancouver, British Columbia with 206 child
care spaces, was opened on schedule in September 2014, with enrollment progressing
well;
- The TSX Venture Exchange accepted the Company's notice of
intention to make a normal course issuer bid ("NCIB") in the open
market to purchase up to a maximum five percent of the issued and
outstanding common shares to contribute to enhanced shareholder
value and liquidity; and
- BrightPath announced its second new development in Edmonton, representing 190 child care spaces
in leased premises in the community of Windermere South.
"In its third quarter of operations for 2014, the Company more
than tripled its Adjusted EBITDA compared to last year," noted
Mary Ann Curran, Chief Executive
Officer of BrightPath. "Our success is based on our ongoing
commitment to and parent recognition of our product innovation,
more effective and efficient operating practices and a strengthened
pipeline of new child care spaces that represents a further 870
child care spaces, an increase of 16%. We anticipate further
refinement as we gain operating leverage through our recently
implemented ERP and cost reduction initiatives, and substantial
profitable growth as we bring the announced developments on
stream."
Financial Review|
($000's except where otherwise noted
and per share amounts)
Selected Quarterly Information
|
|
|
|
|
|
|
|
|
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Revenue
|
$
|
12,013
|
$
|
13,181
|
$
|
12,703
|
$
|
12,182
|
$
|
11,211
|
$
|
11,941
|
$
|
11,484
|
$
|
10,594
|
Centre
margin
|
2,782
|
3,670
|
3,626
|
3,209
|
2,592
|
3,216
|
3,159
|
2,731
|
Centre margin
%
|
23.2
|
27.8
|
28.5
|
26.3
|
23.1
|
26.9
|
27.5
|
25.8
|
Adjusted
EBITDA
|
801
|
1,704
|
1,560
|
926
|
226
|
923
|
973
|
590
|
FFO
|
517
|
1,415
|
1,250
|
688
|
(161)
|
646
|
760
|
228
|
AFFO
|
294
|
1,361
|
1,329
|
728
|
(113)
|
653
|
756
|
320
|
Net profit
(loss)
|
(963)
|
133
|
(653)
|
(1,282)
|
(1,287)
|
(504)
|
(396)
|
(1,587)
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
|
FFO
|
0.004
|
0.012
|
0.010
|
0.006
|
(0.001)
|
0.005
|
0.006
|
0.002
|
|
AFFO
|
0.002
|
0.011
|
0.011
|
0.006
|
(0.001)
|
0.005
|
0.006
|
0.003
|
|
Net profit
(loss)
|
(0.008)
|
0.001
|
(0.005)
|
(0.011)
|
(0.011)
|
(0.004)
|
(0.003)
|
(0.013)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results were strong despite the typical summer
seasonal reduction in occupancy during the third quarter of 2014,
and a short term lag in September
2014 enrollments that reflected the repositioning and
reconfiguration of certain programs and child care spaces.
Enrollments have subsequently rebounded as anticipated in the weeks
following and as at the date hereof, occupancy levels are higher
than a year ago. As the Company continues to innovate its
programing and achieve a higher price point and higher overall
revenue in many of its centres, planned transition results in some
occupancy fluctuation in a select number of centres.
For the three months ended September 30,
2014, the Company reported revenue of $12,013 (September 30,
2013 - $11,211) and centre
margin of $2,782 (September 30, 2013 - $2,592). The 7.2% increase in revenue year over
year was primarily due to fee increases implemented at select
centres, offset by a decrease in average child enrollments of 1.8
percentage points. Centre margin as a percentage of revenue
remained relatively consistent at 23.2% compared with 23.1% a year
earlier. Fee increases and utilization of the information now
available through the Company's ERP system to optimize labour
efficiency were offset, in part, by wage rate increases,
reconfiguration of certain programs and spaces, a shift in age mix
of children in Ontario due to the
effects of public school full day kindergarten ("FDK"), and
increased centre operating costs in western Canada.
Adjusted EBITDA for the third quarter of 2014 was $801 compared to $226 in the third quarter of 2013. Adjusted
EBITDA improved compared to the third quarter of 2013 due to higher
centre margin and lower general and administrative expenses.
Adjusted EBITDA, AFFO and FFO – Certain Amounts Amended For
Correction
|
|
|
|
|
|
|
|
|
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Centre margin for the
period
|
2,782
|
3,670
|
|
3,626
|
|
3,209
|
|
2,592
|
|
3,216
|
|
3,159
|
2,731
|
General and
administrative expense
|
(1,138)
|
(1,170)
|
(1,276)
|
(1,518)
|
(1,610)
|
(1,547)
|
(1,453)
|
(1,466)
|
Taxes, other than
income taxes
|
(44)
|
(43)
|
(43)
|
(34)
|
(30)
|
(26)
|
(48)
|
(43)
|
Operating lease
expense
|
(799)
|
(753)
|
(747)
|
(731)
|
(726)
|
(720)
|
(685)
|
(632)
|
Adjusted
EBITDA
|
$
|
801
|
$
|
1,704
|
$
|
1,560
|
$
|
926
|
$
|
226
|
$
|
923
|
$
|
973
|
$
|
590
|
|
|
|
|
|
|
|
|
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Net profit (loss) for
the period
|
(963)
|
|
133
|
|
(653)
|
|
(1,282)
|
|
(1,287)
|
(504)
|
(396)
|
(1,587)
|
Depreciation and
certain other non-cash items
|
847
|
852
|
853
|
929
|
851
|
843
|
773
|
845
|
Acquisition and
development costs
|
365
|
232
|
280
|
214
|
275
|
307
|
383
|
430
|
Restructuring
costs
|
-
|
198
|
770
|
827
|
-
|
-
|
-
|
-
|
Loss on disposition
of development land
|
268
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Terminated
projects
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
540
|
FFO
|
$
|
517
|
$
|
1,415
|
$
|
1,250
|
$
|
688
|
$
|
(161)
|
$
|
646
|
$
|
760
|
228
|
Stock based
compensation
|
108
|
93
|
103
|
76
|
176
|
129
|
61
|
174
|
Maintenance capital
expenditure
|
(331)
|
(147)
|
(24)
|
(36)
|
(128)
|
(122)
|
(65)
|
(82)
|
AFFO
|
$
|
294
|
$
|
1,361
|
$
|
1,329
|
$
|
728
|
$
|
(113)
|
$
|
653
|
$
|
756
|
$
|
320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO for the third quarter of 2014 was $517 compared to $(161) in the third quarter of 2013. The increase
over the prior year amount is primarily due to higher centre margin
and lower general and administrative expenses. FFO per share for
the third quarter of 2014 was $0.004
compared to $(0.001) for the same
period in 2013. The Company's progress is marked by the fact
that it has now recorded positive FFO per share for four
consecutive quarters.
AFFO for the third quarter of 2014 was $294 compared to $(113) a year earlier. The year over year
increase in AFFO of $407 was
primarily due to increased centre margin and lower general and
administrative expenses, offset by an increase in maintenance
capital expenditures which are typically planned to occur with
greater concentration during the seasonally slower summer months.
AFFO per share for the third quarter of 2014 was $0.002 compared to $(0.001) for the third quarter of 2013.
The Company's land development site in British Columbia was reclassified as an asset
held for sale during the third quarter of 2014 following the
decision by the Company to accept an offer for gross proceeds of
$750 which will augment capital
allocated to nearer term growth opportunities. The land development
site was acquired as part of a $5
million portfolio transaction in 2011. Purchaser conditions
have been waived and the transaction is expected to close in
December 2014.
Child Care Centre Portfolio Overview
The Company's child care centre locations, number of licensed
spaces and average occupancies are as shown in the table that
follows. Average occupancies exhibit lower levels of
attendance June through August due to seasonal factors.
|
|
|
|
|
|
|
|
|
Area:
|
Q3
2014
|
Q2
2014
|
Q1
2014
|
Q4
2013
|
Q3
2013
|
Q2
2013
|
Q1
2013
|
Q4
2012
|
Alberta
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
30
3,163
85.6
|
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
|
|
|
|
|
|
|
|
|
|
British
Columbia
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
8
787
69.1
|
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
|
|
|
|
|
|
|
|
|
|
Ontario
Ending Centres
#
Ending Spaces
#
Avg. Occupancy
%
|
14
1,440
62.6
|
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
|
|
|
|
|
|
|
|
|
|
Total
Ending
Centres #
Ending
Spaces #
Avg. Occupancy
%
|
52
5,390
77.2
|
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
|
|
|
|
|
|
|
|
|
|
Deferred Share Units ("DSUs")
For the three months ended September 30,
2014, pursuant to the Board of Directors DSU plan, five
members of the board of directors of BrightPath received board fees
in the form of DSUs representing $79
fair value in respect of 188,241 DSUs. The DSUs were issued
on October 31, 2014.
Outlook
In its third quarter of operations for 2014, the Company
achieved a year over year increase in Adjusted EBITDA by a factor
of well over three times. The Company has continued to
improve and innovate its product and this is increasingly being
recognized by its customers. The Company has also strengthened its
pipeline of growth opportunities which now represents a further 870
child care spaces, an increase of 16%. In summary, the Company
remains focussed on the following objectives:
- To generate substantially higher EBITDA through optimizing the
return on capital invested – through product improvement, better
management of enrollment and mix, market-based pricing of tuition
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
$25 million to fully fund both its
announced and near term pipeline growth plans.
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 NCIB and the sale of
a land development site to augment capital allocated to nearer term
growth opportunities.
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 appropriate 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 be 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 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 loss, but not Adjusted EBITDA,
FFO and AFFO.
QUARTERLY CONFERENCE CALL
BrightPath's quarterly results conference call is scheduled for
Friday, November 21, 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.
A live audio webcast of the conference call will be available
at: http://www.newswire.ca/en/webcast/detail/1438437/1598841.
Please connect at least 10 minutes prior to the web 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.
The conference call will be archived for replay until
Friday, December 5, 2014 at midnight.
To access the archived conference call, dial +1 (416) 849-0833 or
+1 (855) 859-2056 and enter the reservation password 30756615
followed by the number sign.
ABOUT BRIGHTPATH EARLY LEARNING INC.
BrightPath Early Learning Inc. is a Canadian leader in child
care and early education with 52 locations in major markets across
the country. Meeting the highest standard in curriculum,
nutrition, technology and recreational programing, BrightPath is
committed to providing families with the very best care and child
development programs Canada has to
offer.
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)
|
|
September
30, 2014
|
December
31, 20131
|
Assets
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property and equipment
|
|
$
|
45,957
|
$
|
46,187
|
|
Goodwill and definite
life intangible assets
|
|
30,103
|
30,273
|
|
|
76,060
|
76,460
|
Current
assets
|
|
|
|
|
Cash
|
|
1,104
|
3,940
|
|
Accounts
receivable
|
|
1,628
|
1,891
|
|
Prepaid and other
expenses
|
|
1,518
|
968
|
|
Short term
investments
|
|
39
|
39
|
|
Asset held for
sale
|
|
750
|
-
|
|
|
5,039
|
6,838
|
|
|
|
|
Total
Assets
|
|
$
|
81,099
|
$
|
83,298
|
|
Liabilities
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Long term debt and
financing leases
|
|
$
|
17,012
|
$
|
17,936
|
|
Convertible
debentures – liability component
|
|
|
4,446
|
|
4,413
|
|
Provision for
restructuring costs
|
|
|
113
|
|
118
|
|
|
21,571
|
22,467
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
3,437
|
3,314
|
|
Current portion of
provision for restructuring costs
|
|
358
|
542
|
|
Deferred
revenue
|
|
1,207
|
1,216
|
|
Current portion of
debt and financing leases
|
|
1,218
|
1,272
|
|
|
6,220
|
6,344
|
|
|
|
|
Total
Liabilities
|
|
27,791
|
28,811
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Share
capital
|
|
66,048
|
66,030
|
|
Convertible
debentures – equity component
|
|
342
|
342
|
|
Equity settled share
based compensation
|
|
2,312
|
2,026
|
|
Accumulated
deficit
|
|
(15,394)
|
(13,911)
|
Total Shareholders'
Equity
|
|
53,308
|
54,487
|
|
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
$
|
81,099
|
$
|
83,298
|
1Certain
amounts reclassified to conform to current year
presentation.
|
BrightPath Early
Learning Inc.
Consolidated
Statements of Operations and Comprehensive Loss
Three and nine
months ended September 30, 2014 and 2013
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended September
30,
|
Nine months
ended September
30,
|
(CDN
$000's)
|
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
|
Revenue
|
|
$
|
11,633
|
$
|
10,928
|
$
|
36,787
|
$
|
33,724
|
Government
grants
|
|
|
380
|
|
283
|
|
1,110
|
|
912
|
Total
revenue
|
|
|
12,013
|
|
11,211
|
|
37,897
|
|
34,636
|
|
|
|
|
|
|
Centre
expenses
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
6,611
|
6,121
|
20,087
|
18,612
|
|
Other operating
expenses
|
|
2,672
|
2,498
|
7,784
|
7,057
|
Centre
margin
|
|
2,730
|
2,592
|
10,026
|
8,967
|
|
|
|
|
|
|
Operating
leases
|
|
799
|
726
|
2,299
|
2,131
|
Finance
|
|
361
|
353
|
1,101
|
937
|
General and
administrative
|
|
1,086
|
1,610
|
3,532
|
4,610
|
Taxes, other than
income taxes
|
|
44
|
30
|
130
|
104
|
Restructuring
costs
|
|
-
|
-
|
968
|
-
|
Acquisition and
development costs
|
|
365
|
275
|
877
|
965
|
Loss on disposition
of development land
|
|
268
|
-
|
268
|
-
|
Stock-based
compensation
|
|
108
|
176
|
304
|
366
|
Depreciation and
amortization
|
|
715
|
722
|
2,142
|
2,089
|
|
|
3,746
|
3,892
|
11,621
|
11,202
|
|
|
|
|
|
|
Loss before other
income
|
|
(1,016)
|
(1,300)
|
(1,595)
|
(2,235)
|
|
|
|
|
|
|
Other
income
|
|
53
|
13
|
112
|
48
|
Net Loss and Total
Comprehensive Loss
|
$
|
(963)
|
$
|
(1,287)
|
$
|
(1,483)
|
$
|
(2,187)
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.008)
|
$
|
(0.011)
|
$
|
(0.012)
|
$
|
(0.018)
|
Weighted average
number of common shares
|
|
|
|
|
|
|
Basic and
diluted
|
|
121,727,325
|
121,719,316
|
121,722,015
|
121,719,316
|
|
|
|
|
|
|
BrightPath Early
Learning Inc.
Consolidated
Statements of Changes in Shareholders' Equity
Nine months ended
September 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
|
|
-
|
-
|
366
|
-
|
366
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
|
-
|
-
|
-
|
(2,187)
|
(2,187)
|
|
|
|
|
|
|
|
Balance at
September 30, 2013
|
$
|
66,030
|
$
|
342
|
$
|
1,950
|
$
|
(12,629)
|
$
|
55,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January
1, 2014
|
$
|
66,030
|
$
|
342
|
$
|
2,026
|
$
|
(13,911)
|
$
|
54,487
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
-
|
-
|
|
304
|
|
-
|
|
304
|
|
|
|
|
|
|
|
|
|
|
|
Deferred share units
redeemed
|
|
|
18
|
-
|
|
(18)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and
comprehensive loss
|
|
|
-
|
-
|
|
-
|
|
(1,483)
|
|
(1,483)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
September 30, 2014
|
$
|
66,048
|
$
|
342
|
$
|
2,312
|
$
|
(15,394)
|
$
|
53,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BrightPath Early
Learning Inc.
Consolidated
Statements of Cash Flow
Three and nine
months ended September 30, 2014 and 2013
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
(CDN
$000's)
|
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
|
Cash provided by
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
Net loss
|
|
$
|
(963)
|
$
|
(1,287)
|
$
|
(1,483)
|
$
|
(2,187)
|
Items not affecting
cash:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
715
|
722
|
2,142
|
2,089
|
|
Depreciation included
in operating costs
|
|
38
|
29
|
113
|
84
|
|
Finance
costs
|
|
361
|
353
|
1,101
|
937
|
|
Loss on disposition
of development land
|
|
268
|
-
|
268
|
-
|
|
Stock-based
compensation
|
|
108
|
176
|
304
|
366
|
|
Change in fair value
of convertible debenture liability component
|
|
(48)
|
-
|
(98)
|
-
|
Change in non-cash
working capital
|
|
643
|
870
|
(387)
|
600
|
Non-current portion
of provision for restructuring costs
|
|
(68)
|
-
|
(5)
|
-
|
Cash generated by
operations
|
|
1,054
|
863
|
1,955
|
1,889
|
|
|
|
|
|
|
Finance costs
paid
|
|
(230)
|
(219)
|
(832)
|
(732)
|
Net cash generated by
operating activities
|
|
824
|
644
|
1,123
|
1,157
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
Acquisitions
|
|
-
|
-
|
-
|
(2,188)
|
Property and
equipment
|
|
(1,695)
|
(793)
|
(2,873)
|
(1,833)
|
Restricted
cash
|
|
-
|
220
|
-
|
220
|
|
|
(1,695)
|
(573)
|
(2,873)
|
(3,801)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
Loan
proceeds
|
|
-
|
-
|
-
|
2,350
|
Loan
repayments
|
|
(282)
|
(115)
|
(855)
|
(405)
|
Financing transaction
costs
|
|
-
|
(91)
|
(47)
|
(91)
|
Finance lease
repayments
|
|
(63)
|
(79)
|
(184)
|
(199)
|
|
|
(345)
|
(285)
|
(1,086)
|
1,655
|
|
|
|
|
|
|
Change in
Cash
|
|
(1,216)
|
(214)
|
(2,836)
|
(989)
|
Cash at beginning of
period
|
|
2,320
|
5,025
|
3,940
|
5,800
|
Cash at end of
period
|
|
$
|
1,104
|
$
|
4,811
|
$
|
1,104
|
$
|
4,811
|
|
|
|
|
|
|
|
|
SOURCE BrightPath Early Learning Inc.