Bright Horizons : BRIGHT HORIZONS FAMILY SOLUTIONS REPORTS FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL RESULTS

Bright Horizons : BRIGHT HORIZONS FAMILY SOLUTIONS REPORTS FOURTH QUARTER AND
                       FULL YEAR 2012 FINANCIAL RESULTS

                   BRIGHT HORIZONS FAMILY SOLUTIONS REPORTS
             FOURTH QUARTER AND FULL YEAR 2012 FINANCIAL RESULTS

BOSTON, MA - (March 13, 2013) - Bright Horizons Family Solutions Inc. (NYSE:
BFAM), a leading provider of high-quality child care and early education
services as well as other services designed to help employers and families
address the challenges of work and life, today announced financial results for
the fourth quarter and year ended December 31, 2012.

Fourth quarter 2012 highlights:

  *Revenue increased 10% to $273.4 million 

  *Income from operations rose 23% to $27.9 million 

  *Adjusted EBITDA* increased 21% to $47.0 million

  *Adjusted net income* increased 10% to $9.4 million

Full year 2012 highlights:

  *Revenue increased 10% to $1.1 billion 

  *Income from operations rose 10% to $95.5 million

  *Adjusted EBITDA* increased 22% to $180.8 million 

  *Adjusted net income* increased 62% to $37.8 million

"We delivered strong results this year as a result of our continued focus on
growing and improving the quality of each of our services, while expanding our
relationships with our existing clients and growing our footprint in the U.S.
and in Europe," said David Lissy, Chief Executive Officer. "We have once
again executed well and expanded our leadership position in our field by
providing high quality solutions across key life stages that allow employers
and working families to be more productive at home and at work. Those
employers in turn are better able to adapt to the changing demographics and
realities of today's workforce where dual working parent families are more of
the norm, women are increasingly the primary breadwinners in their household
and men are demanding and expecting more work-life balance than ever before."

Fourth quarter 2012 results
Revenue increased $24.5 million in the fourth quarter of 2012 on contributions
from new and ramping full service child care centers, average price increases
of 3-4%, and expanded sales of our back-up dependent care and educational
advisory services.

Income from operations increased $5.2 million, or 22.7%, in the fourth quarter
of 2012, driven by expanded gross profit. Enrollment gains in mature and
ramping centers, contributions from new child care centers as well as back-up
dependent care and educational advisory clients that have been added since the
fourth quarter of 2011, and strong cost management have driven gross margin
improvement from 21.5% in the fourth quarter of 2011 to 23.1% in 2012.

Adjusted EBITDA increased $8.2 million, or 21.2% in the fourth quarter of
2012, primarily as a result of the $9.7 million increase in gross profit,
offset by increases in selling, general and administrative expenses ("SG&A")
spending, including investments in technology and marketing to support the
growth of the business.

Net income for the fourth quarter of 2012 increased by $0.4 million, or 9.2%,
and adjusted net income increased by $0.9 million, or 10.2%, as a result of
the $5.2 million increase in operating income, offset by an increase in
interest expense and income tax expense.

Full year 2012 results
Revenue growth of $97.2 million for the full year 2012 was attributable to the
contributions from new and ramping full service child care centers, average
price increases of 3-4%, and expanded sales of our back-up dependent care and
educational advisory services.

Income from operations increased $8.6 million in 2012. Excluding the impact of
the $15.2 million non-recurring expense related to the exchange of stock
options in the second quarter of 2012 which is included in SG&A, income from
operations would have been $110.7 million, an increase of $23.8 million, or
27.4%. Consistent with the drivers in the fourth quarter of 2012, the
expansion of gross margin from 21.3% in 2011 to 22.9% in 2012 was driven by
enrollment gains in mature and ramping centers, contributions from new child
care centers as well as back-up dependent care and educational advisory
clients that have been added in 2012, and strong cost management that has
driven operating efficiency. 

Adjusted EBITDA increased $32.3 million, or 21.8% in 2012 primarily as a
result of the $38.6 million increase in gross profit offset by increases in
SGA spending.

Net income for the full year 2012 increased by $3.7 million, or 78.7%, to $8.5
million as a result of the $8.6 million increase in operating income, offset
by an increase in interest expense and income tax expense. Adjusted net income
increased by $14.4 million, or 61.5%, to $37.8 million compared to 2011. 

As of December 31, 2012, the Company operated 765 early care and education
centers with the capacity to serve 87,100 children and families, a 4.5%
increase in capacity since December 31, 2011.

"We are pleased to close out 2012 with continued revenue growth and margin
improvement this quarter that position us well as we head into 2013," said
David Lissy, Chief Executive Officer. "We added a total of 50 centers in
2012, and our back-up dependent care services and our educational advisory
services each experienced strong growth during the year. We believe that our
unique culture and work environment serves to differentiate us in our field.
As such, we are proud to have been named for the fourteenth time as one of
FORTUNE Magazine's "100 Best Companies to Work for" in America in January of
this year. This recognition is a tribute to our talented and passionate team
in our centers, schools, and offices who provide high-quality care, education,
and support to the children, families and clients we have the privilege to
serve."

*Adjusted EBITDA and adjusted net income are metrics used by management to
measure operating performance. Adjusted EBITDA represents our earnings before
interest, taxes, depreciation, amortization, straight line rent expense, stock
compensation expense, expenses related to the initial public offering and
refinancing that were completed in January 2013 and the sponsor management
fee. Adjusted net income represents our net income determined in accordance
with generally accepted accounting principles in the United States, or GAAP,
adjusted for stock compensation expense, amortization expense, the sponsor
management fee, expenses associated with our initial public offering and debt
refinancing that were completed in January 2013, and the income tax benefit
thereon. These non-GAAP measures are more fully described and are reconciled
from the respective measures determined under GAAP in the table below.

Balance Sheet and Cash Flow
During 2012, the Company generated approximately $107.0 million of cash flow
from operations compared to $133.6 million in 2011, which included the
collection of income tax refunds totaling $25 million, and invested $69.1
million in fixed assets, of which $28.4 million related to new child care
centers. The Company's cash and cash equivalents grew $3.7 million in the year
to $34.1 million at December 31, 2012. On January 30, 2013, the Company repaid
all of its outstanding indebtedness with the proceeds from our initial public
offering of common stock and proceeds from the issuance of $790 million in new
secured term loans.

2013 Outlook
As described below, the Company is providing certain targets regarding its
2013 expectations.

  *Overall revenue growth in 2013 in the high single digits (8-10%)

  *Adjusted EBITDA growth in 2013 in the range of 14-17%

  *Adjusted net income ranging from $76-$79 million in 2013, including the
    effect of reduced interest expense following the Company's debt
    refinancing on January 30, 2013.

In addition, the Company estimates that full diluted weighted average shares,
as adjusted, will approximate 65-66 million shares in 2013 and 62.5 million
shares for the first quarter of 2013. This includes the 11.6 million common
shares issued in connection with the initial public offering and exercise of
the overallotment option, from their respective dates of issuance, and assumes
the conversion of the Class L shares into common shares as if that conversion
occurred on January 1, 2013.

Conference Call
Bright Horizons Family Solutions will host an investor conference call today
at 4:30 pm ET. The public and other interested parties are invited to listen
to the conference call by dialing 1-877-407-0784, or for international
callers, 1-201-689-8560, and asking for the Bright Horizons Family Solutions
conference call, moderated by Chief Executive Officer David Lissy. Replays of
the entire call will be available through March 20, 2013 at 1-877-870-5176,
or, for international callers, at 1-858-384-5517, conference ID # 409846. A
webcast of the conference call will also be available through the Investor
Relations section of the Company's Web site, www.brighthorizons.com. A copy
of this press release is available on the Web site.

Forward-Looking Statements

This press release includes statements that express our opinions,
expectations, beliefs, plans, objectives, assumptions or projections regarding
future events or future results and therefore are, or may be deemed to be,
"forward-looking statements." Bright Horizons Family Solutions' actual results
may vary significantly from the results anticipated in these forward-looking
statements, which can generally be identified by the use of forward-looking
terminology, including the terms "believes," "expects," "may," "will,"
"should," "seeks," "projects," "approximately," "intends," "plans,"
"estimates" or "anticipates," or, in each case, their negatives or other
variations or comparable terminology. These forward-looking statements include
all matters that are not historical facts. They include statements regarding
our intentions, beliefs or current expectations concerning, among other
things, our results of operations, financial condition, liquidity, prospects,
growth, strategies and the industries in which we and our partners operate. By
their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future. We believe that these risks and uncertainties include,
but are not limited to, the following: changes in the demand for child care
and other dependent care services, including variation in enrollment trends
and lower than expected demand from employer sponsor clients; the possibility
that acquisitions may disrupt our operations and expose us to additional risk;
our ability to pass on our increased costs; changes in our relationships with
employer sponsors; our substantial indebtedness and the terms of such
indebtedness; our ability to withstand seasonal fluctuations in the demand for
our services; significant competition within our industry; our ability to
implement our growth strategies successfully; as well as those risks and
uncertainties described in the "Risk Factors" section of our prospectus filed
with the Securities and Exchange Commission on January 25, 2013. These
forward-looking statements speak only as of the time of this release and we do
not undertake to publicly update or revise them, whether as a result of new
information, future events or otherwise, unless required by law.

Non-GAAP Measures
Adjusted EBITDA, adjusted income before taxes and adjusted net income are not
presentations made in accordance with GAAP, and the use of the terms adjusted
EBITDA, adjusted income before taxes and adjusted net income may differ from
similar measures reported by other companies. We believe that adjusted EBITDA,
adjusted income before taxes and adjusted net income provide investors with
useful information with respect to our historical operations. We present
adjusted EBITDA, adjusted income before taxes and adjusted net income as
supplemental performance measures because we believe they facilitate a
comparative assessment of our operating performance relative to our
performance based on our results under GAAP, while isolating the effects of
some items that vary from period to period. Specifically, adjusted EBITDA
allows for an assessment of our operating performance and of our ability to
service or incur indebtedness without the effect of non-cash charges, such as
depreciation, amortization, the excess of rent expense over cash rent expense
and stock compensation expense, and the effect of our sponsor management fee,
which we will not owe for periods after the consummation of the initial public
offering which was completed on January 30,2013, as well as the expenses
related to preparing for the initial public offering and refinancing which
have been included in the statement of operations in 2012. In addition,
adjusted income before taxes and adjusted net income allow us to assess our
performance without the impact of the specifically identified items that we
believe do not directly reflect our core operations. These measures also
function as benchmarks to evaluate our operating performance.

Adjusted EBITDA, adjusted income before taxes, adjusted net income and
adjusted EBITDA margin are not measurements of our financial performance under
GAAP and should not be considered in isolation or as an alternative to income
before taxes, net income, net cash provided by operating, investing or
financing activities or any other financial statement data presented as
indicators of financial performance or liquidity, each as presented in
accordance with GAAP. The Company understands that although adjusted EBITDA,
adjusted income before taxes and adjusted net income are frequently used by
securities analysts, lenders and others in their evaluation of companies, they
have limitations as analytical tools, and you should not consider them in
isolation, or as a substitute for analysis of our results as reported under
GAAP. Some of these limitations are:

  *adjusted EBITDA, adjusted income before taxes adjusted net income and
    adjusted EBITDA margin do not fully reflect the Company's cash
    expenditures, future requirements for capital expenditures or contractual
    commitments; 

  *adjusted EBITDA, adjusted income before taxes and adjusted net income do
    not reflect changes in, or cash requirements for, the Company's working
    capital needs;

  *adjusted EBITDA does not reflect the significant interest expense, or the
    cash requirements necessary to service interest or principal payments, on
    debt; and

  *although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized will often have to be replaced in the
    future, and

  *adjusted EBITDA, adjusted income before taxes and adjusted net income do
    not reflect any cash requirements for such replacements.

Because of these limitations, adjusted EBITDA, adjusted income before taxes
and adjusted net income should not be considered as discretionary cash
available to us to reinvest in the growth of our business or as measures of
cash that will be available to us to meet our obligations.

About Bright Horizons Family Solutions Inc.
Bright Horizons Family Solutions® is a leading provider of high-quality child
care, early education and other services designed to help employers and
families better address the challenges of work and life. The Company provides
center-based full service child care, back-up dependent care and educational
advisory services to more than 850 clients across the United States, the
United Kingdom, Ireland, the Netherlands, Canada and India, including more
than 130 FORTUNE 500 companies and more than 75 of Working Mother magazine's
2012 "100 Best Companies for Working Mothers". Bright Horizons is one of
FORTUNE magazine's "100 Best Companies to Work For" and is headquartered in
Watertown, MA. The Company's website is located at www.brighthorizons.com.

Contacts:
Investors:
Elizabeth Boland
CFO Bright Horizons
Eboland@brighthorizons.com
617-673-8125

Kevin Doherty
VP - Solebury Communications Group LLC
kdoherty@soleburyir.com
203-428-3233

Media:
Ilene Serpa
VP-Public Relations -Bright Horizons
iserpa@brighthorizons.com
617-673-8044

                    Bright Horizons Family Solutions Inc.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                         (Unaudited, $ in thousands)
                                            Three Months Ended December 31,
                                             2012      %       2011      %
Revenue                                    $ 273,426 100.0%  $ 248,885 100.0%
Cost of services                             210,321  76.9%    195,485  78.5%
Gross profit                                  63,105  23.1%     53,400  21.5%
Selling general & administrative              28,526  10.4%     23,888   9.6%
Amortization                                   6,635   2.4%      6,730   2.7%
Income from operations                        27,944  10.3%     22,782   9.2%
Loss from foreign currency transactions          -              (36)   0.0%
Interest income                                   46   0.0%        795   0.3%
Interest expense                           (22,056)  -8.1%  (19,760)  -7.9%
                                           (22,010)  -8.1%  (19,001)  -7.6%
Income before tax                              5,934   2.2%      3,780   1.6%
Income tax provision (benefit)                 1,707   0.6%      (90)   0.0%
Net income                                     4,227   1.6%      3,870   1.6%
Net income attributable to
non-controlling
interest                                          53   0.1%      (89)   0.0%
Net income attributable to Bright
Horizons
Family Solutions Inc.                      $   4,174   1.5%  $   3,959   1.6%

                    Bright Horizons Family Solutions Inc.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                         (Unaudited, $ in thousands)
                                            Twelve Months Ended December 31,
                                             2012       %       2011      %
Revenue                                   $ 1,070,938 100.0%  $ 973,701 100.0%
Cost of services                              825,168  77.1%    766,500  78.7%
Gross profit                                  245,770  22.9%    207,201  21.3%
Selling general & administrative              123,373  11.5%     92,938   9.5%
Amortization                                   26,933   2.5%     27,427   2.9%
Income from operations                         95,464   8.9%     86,836   8.9%
Gain from foreign currency transactions           -    0.0%        835   0.1%
Interest income                                   152   0.0%        824   0.1%
Interest expense                            (83,864)  -7.8%  (82,908)  -8.5%
                                            (83,712)  -7.8%  (81,249)  -8.3%
Income before tax                              11,752   1.1%      5,587   0.6%
Income tax provision                            3,243   0.3%        825   0.1%
Net income                                      8,509   0.8%      4,762   0.5%
Net income attributable to
non-controlling
interest                                          347   0.0%          3   0.0%
Net income attributable to Bright
Horizons
Family Solutions Inc.                     $     8,162   0.8%  $           0.5%

                    Bright Horizons Family Solutions Inc.
                          Non-GAAP Reconciliations
                         (Unaudited, $ in thousands)
                          Three Months Ended          Twelve Months Ended
                             December 31,                December 31,
                          2012         2011          2012          2011
Net income             $     4,227    $   3,870  $     8,509 $         4,762
Interest expense, net       22,010        18,965       83,712          82,084
Income tax expense
(benefit)                    1,707         (90)        3,243             825
Depreciation                 9,503         7,731       34,415          28,024
Amortization (e)             6,635         6,730       26,933          27,427
     EBITDA            44,082        37,206      156,812         143,122
Additional
adjustments:
Straight line rent
expense (a)                  1,046           630        2,142           1,739
Stock compensation
expense (b)                    896           355       17,596           1,158
Sponsor management
fee (c)                        625           625        2,500           2,500
Expenses related to
initial public
offering and
refinancing (d)                401           -         1,801             - 
Total adjustments            2,968         1,610       24,039           5,397
     Adjusted
EBITDA                 $    47,050 $      38,816  $     180,851 $      148,519
Net income             $     4,227    $   3,870  $     8,509 $         4,762
Income tax expense           1,707         (90)        3,243             825
(benefit) 
     Income             5,934         3,780       11,752           5,587
before tax
Stock compensation             896           355       17,596           1,158
expense (b)
Sponsor management             625           625        2,500           2,500
fee (c)
Amortization (e)             6,635         6,730       26,933          27,427
Expenses related to
initial public                                    
offering and                   401           -         1,801             - 
refinancing (d)
    Adjusted           14,491        11,490       60,582          36,672
income before tax
Adjusted income tax       (5,128)      (2,994)    (22,775)       (13,259)
expense (f)
    Adjusted net  $     9,363 $       8,496  $    37,807 $        23,413
income

(a) Represents rent in excess of cash paid for rent, recognized on a straight
line basis over the lease life in accordance with Accounting Standards
Codification ("ASC") Topic 840, Leases.
(b) Represents non-cash stock-based compensation expense.
(c) Represents annual fees paid to the Company's Sponsor under a management
agreement, which was terminated upon completion of our initial public offering
on January 25, 2013.
(d) Represents the portion of costs associated with the preparation for the
Company's initial public offering and refinancing of indebtedness, completed
in January 2013, that are required to be expensed in accordance with generally
accepted accounting principles.
(e) Represents amortization of intangible assets, including $20.1 million,
$20.6 million, $5.0 million and $5.0 million in 2012, 2011 and for the three
months ended December 30, 2012 and 2011, respectively, associated with
intangible assets recorded in connection with our going private transaction in
May 2008.
(f) Adjusted income tax expense includes the income tax expense (benefit) as
reported plus the tax impact associated with the expenses described in notes
(b) (c) (d) and (e), using an effective tax rate of 40%.

                    Bright Horizons Family Solutions Inc.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                         (Unaudited, $ in thousands)
                                                                  December 31,
                                               December 31, 2012      2011
ASSETS
Current assets:
         Cash and cash equivalents            $          34,109  $     30,448
         Accounts receivable, net                        62,714        60,656
         Other current assets                            39,194        33,101
                 Total current assets                   136,017       124,205
Fixed assets, net                                       340,376       237,157
Goodwill                                                993,397       947,371
Other intangibles, net                                  432,580       453,117
Other assets                                             11,262         9,314
                 Total assets                 $       1,913,632  $  1,771,164
 LIABILITIES, NONCONTROLLING INTEREST AND STOCKHOLDERS' DEFICIT
Current liabilities:
         Current portion of long-term debt    $           2,036  $      4,814
         Accounts payable and accrued
         expenses                                         97,207        89,033
         Deferred revenue and other current
         liabilities                                     102,650        99,825
                 Total current liabilities              201,893       193,672
Long-term debt                                          904,607       794,443
Deferred income taxes                                   146,404       156,144
Other long term liabilities                              52,388        44,984
                 Total liabilities                     1,305,292     1,189,243
Redeemable noncontrolling interest                        8,126        15,527
Common stock, Class L, at accreted
distribution value (1)                                   854,101       772,422
Total stockholders' deficit                          (253,887)    (206,028)
                 Total liabilities,
                 noncontrolling interest and
                 stockholders' equity          $      1,913,632  $  1,771,164

(1) Prior to filing a registration statement with the Securities and Exchange
Commission ("SEC") related to our initial public offering, Class L common
stock was classified within stockholders' equity (deficit). In order to
comply with SEC requirements as a public company, we reclassified Class L
common stock outside of permanent equity for all periods presented. For
further discussion on Class L common stock, see the consolidated financial
statements and notes thereto for the year ended December 31, 2011 included in
the Company's Prospectus filed pursuant to Rule 424(b) under the Securities
Act of 1933, as amended, with the SEC on January 24, 2013.

               Bright Horizons Family Solutions Inc.
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (Unaudited, $ in thousands)
                                                        Twelve Months Ended 
                                                             December 31,
                                                           2012        2011
Cash flows from operating activities
 Net income                                               $  8,509  $  4,762
 Adjustments to reconcile net income to net cash
 provided by operating activities:
       Depreciation and amortization                         61,348     55,451
       Amortization of OID and deferred financing
       costs                                                  6,783      6,330
       Proceeds from PIK notes                               23,754     20,902
       Stock based compensation                              17,596      1,158
       Deferred income taxes                              (12,045)   (5,872)
       Other non-cash adjustments, net                          879         90
 Changes in assets and liabilities
       Accounts receivable                                 (1,580)   (1,487)
       Income taxes                                          (218)     27,321
       Accounts payable and accrued expenses                  1,155     13,303
       Other, net                                               801     11,612
              Net cash provided by operating
              activities                                    106,982    133,570
Cash flows from investing activities
 Additions to fixed assets, net of acquired amounts       (69,086)  (42,517)
 Proceeds from disposal of fixed assets                          21      4,851
 Payments for acquisitions, net of cash acquired         (111,825)  (57,326)
              Net cash used in investing activities      (180,890)  (94,992)
Cash Flows from Financing Activities
 Principal payments of long term debt and revolver         (5,472)  (23,433)
 Borrowings of long-term debt                                82,321        - 
 Other, net                                                     356        152
              Net cash provided by (used in) financing
              activities                                     77,205  (23,281)
Effect of exchange rate changes on cash                         364     (287)
              Net increase in cash and cash
              equivalents                                     3,661     15,010
Cash and cash equivalents, beginning of period               30,448     15,438
Cash and cash equivalents, end of period                $    34,109  $  30,448

                    Bright Horizons Family Solutions Inc.
                             Segment Information
                         (Unaudited, $ in thousands)
                                                         Other
                             Full service   Back-up   educational
                             center-based  dependent   advisory
                                 care        care      services       Total
        Year ended December
        31, 2012
Revenue                      $    922,960  $ 129,336  $    18,642  $ 1,070,938
Amortization of intangibles        25,906        725          302       26,933
Income from operations             60,410     33,607        1,447       95,464
Income from operations,
excluding the impact
 of stock option exchange
(1)                                71,650     36,406        2,624      110,680
        Year ended December
        31, 2011
Revenue                      $    844,595  $ 114,502  $    14,604  $   973,701
Amortization of intangibles        25,178      1,947          302       27,427
Income from operations             58,950     28,669       (783)       86,836
        Three months ended
        December 31, 2012
Revenue                      $    233,282  $  34,581  $     5,563  $   273,426
Amortization of intangibles         6,378        181           76        6,635
Income from operations             16,302     10,016        1,626       27,944
        Three months ended
        December 31, 2011
Revenue                      $    213,961  $  30,819  $     4,105  $   248,885
Amortization of intangibles         6,251        403           76        6,730
Income from operations             14,558      8,178           46       22,782

(1) Income from operations excluding the $15.2 million charge recorded in the
second quarter of 2012 in connection with the exchange of existing options to
purchase shares of Class A common stock for options to purchase a combination
of shares of Class A common and Class L common stock.

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