TORONTO, July 26, 2016 /CNW/ - BrightPath Early Learning
Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading
Canadian provider of quality early childhood education and care,
today provided an update on its previously announced agreement to
acquire the Peekaboo Child Care Centre Inc. ("Peekaboo") portfolio
of 20 early learning and child care centres in the Greater Toronto Area. Additionally, the
Company reported that is has completed the acquisition of The
Lawrence Park School in Toronto.
The long-standing and successful school, located in the established
central Toronto neighbourhood of
Lawrence Park, was established in 1982, currently has 95 licensed
spaces and further augments BrightPath's accretive growth in the
Greater Toronto Area.
Under the terms of the Peekaboo definitive agreement, BrightPath
will acquire approximately 2,500 licensed spaces in 20 early
learning and child care centres located in the Regions of Peel and
Halton. The addition of this capacity will increase the size
of BrightPath's portfolio by 41%.
The Company continues to work towards completion of the
transaction with initial conditions under the agreement satisfied
and meetings with regional child care authorities underway. The
closing date is expected to be in the third quarter of 2016 and
remains subject to customary closing conditions and those regarding
child care licensing.
As previously announced, the purchase price for the Peekaboo
portfolio is $22 million based, in
part, on historical financial performance of the centres. Using
historical metrics, the acquisition generates approximately
$3 million of incremental Funds from
Operations ("FFO") net of the financing costs on the bank facility
arranged to fund the transaction. The Company anticipates further
operational and financial benefits derived through synergies and
economies of scale as the Peekaboo centres are integrated with
BrightPath's operating and management systems platform.
The Lawrence Park School is known for its advanced programs,
lower student-to-teacher ratios and the long-tenure and
professionalism of its teachers. The school educates and cares for
children 18 months to six years of age.
"We are pleased to expand our high quality portfolio with this
strategic acquisition in Ontario,"
said Mary Ann Curran, Chief
Executive Officer of BrightPath. "Lawrence Park School provides
BrightPath the opportunity to provide an enhanced preschool and
kindergarten offering. The model supports high academic
achievement and well-rounded social and emotional development, and
is highly desirable in markets across Canada. We welcome the educators, other staff,
children and families of the Lawrence Park School to
BrightPath."
The transaction, valued at $1.125
million, closed in July 2016
and was financed using the Company's available capital resources.
Accordingly, the transaction is expected to be immediately
accretive.
NON- IFRS PERFORMANCE MEASURES
The Company uses FFO as an indicator of financial performance.
FFO is calculated by adjusting net profit (loss) to add back
acquisition costs expensed as incurred, depreciation and certain
other non-cash items.
FFO does not have a standardized meaning prescribed by IFRS. The
Company's method of calculating FFO may be different from other
entities and, accordingly, may not be comparable to such other
entities. FFO: (i) does not represent cash flow from operating
activities as defined by IFRS; (ii) is not indicative of cash
available to fund all liquidity requirements, including capital for
growth; and (iii) is not to be considered as an alternative to
IFRS-based net profit (loss) for the purpose of evaluating
operating performance.
ABOUT BRIGHTPATH EARLY LEARNING INC.
BrightPath Early Learning Inc. is a Canadian leader in child
care and early education with 55 locations in major markets across
the country and comprising 6,029 licensed spaces. With the closing
of the Peekaboo acquisition and the Lawrence Park School, the
breadth of the Company's portfolio will expand to 76 locations
totaling approximately 8,595 licensed spaces. Meeting the highest
standards in curriculum, nutrition, technology and recreational
programing, BrightPath is committed to providing families with the
very best child development and care Canada has to offer.
For more information, visit www.BrightPathKids.com/corporate
(TSX‐V: BPE).
FORWARD-LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking
statements regarding the future growth, results of operations,
performance and opportunities of the Company. Forward-looking
statements can generally be identified by the use of, but not
limited to, the following words: "plans", "expects" or "does not
expect", "budget", "scheduled", "estimate", "forecast", "pro
forma", "anticipate" or "does not anticipate", "believe", "intend",
"inferred", "potential" and similar expressions or statements that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking
statements are not historical facts, but reflect the Company's
current expectations regarding future results or events based on
information currently available and what the Company believes to be
reasonable assumptions. All forward-looking statements are
qualified by these cautionary statements.
Forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied by such forward-looking statements. Factors that could
cause actual results or events to differ materially from those
expressed, implied or projected include, but are not limited to,
general economic conditions, the Company's ability to meet and
maintain forecasted occupancy levels, general government policies,
continued availability of government child care subsidies to
parents, unexpected costs or liabilities related to acquisitions,
construction, environmental matters, legal matters, changes in
interest rates, credit spreads and the availability of financing.
In addition, please refer to the Risks and Uncertainties section of
the Company's annual Management's Discussion and Analysis. As such,
the Company gives no assurance that actual results will be
consistent with these forward-looking statements.
Readers should not place undue reliance on any such
forward-looking statements. These forward-looking statements are
made as of the date hereof. The Company undertakes no obligation to
publicly update or revise any such statement, reflect new
information or reflect the occurrence of future events or
circumstances, except as required by securities laws.
Readers should also note that the Peekaboo acquisition remains
subject to certain conditions to be waived by BrightPath and there
is no assurance that the transaction will be completed.
SOURCE BrightPath Early Learning Inc.