BrightPath Delivers Significant Increase in Six Month Adjusted EBITDA and Initiates Shareholder Value Enhancing Transactions

CALGARY, July 29, 2015 /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 six month periods ended June 30, 2015.

Portfolio performance highlights for the quarter ended June 30, 2015 are as follows (all comparisons are against the same period in prior year and all dollar amounts are in thousands, except per share amounts, unless otherwise noted):

  • A new record for quarterly revenue of $13.9 million, an increase of 5.5%;
  • Adjusted EBITDA of $1.8 million, an increase of 4.5%;
  • Centre margin rose to 28.6% of revenue compared to 27.8%;
  • Average occupancy of Stabilized centres was 86.9% compared to 87.5%;
  • Funds from Operations ("FFO") of $1.4 million ($0.012 per share), an increase of 1.5%;
  • Adjusted Funds from Operations ("AFFO") of $1.4 million ($0.011 per share), an increase of 0.9%;
  • Significant progress in the occupancy growth of the Clayton Hills centre in Surrey, British Columbia which opened in September 2014. Occupancy is, at present, 49%, which puts it on track to reach stabilization well in advance of the 24 month period that industry metrics typically anticipate. Based on confirmed enrollments, the Company anticipates occupancy in September will exceed 60% and the threshold required for profitability. In the interim, the adverse impact from the financial loss during stabilization has negatively impacted the Company's reported profitability, Adjusted EBITDA, FFO and AFFO reported herein; and
  • Available capital of $23.8 million at quarter end to fund the Company's pipeline of growth initiatives, including the announced additional 1,055 licensed spaces, or 19.4% increase in the Company's current portfolio of 5,443 spaces, and other initiatives not yet announced.

Highlights for the six months ended June 30, 2015 include:

  • Revenues of $27.6 million, an increase of 6.5%;
  • Adjusted EBITDA of $3.6 million, an increase of 10.3%;
  • Higher centre margin of 28.8% of revenue compared to 28.2%;
  • A 12.1% increase in FFO to $3.0 million and a 13.6% increase in FFO per share to $0.025; and
  • A 7.4% increase in AFFO to $2.9 million, resulting in a 9.1% increase in AFFO per share to $0.024.

Significant events to date in 2015 include:

  • In February 2015, construction of the Creekside greenfield centre in the Symons Valley area of northwest Calgary, which will open in the Fall of 2015 and comprise of approximately 250 licensed spaces, began;
  • In May 2015, construction of the West Henday centre, with approximately 250 licensed spaces, began. This facility, which is scheduled to open in early 2016, is the Company's first Edmonton greenfield development;
  • The expansion of the Company's Airdrie centre, located in a community just north of  Calgary, was opened in July 2015, increasing its licensed capacity from 57 licensed spaces to 117;
  • The Company's new centre just west of Calgary in Cochrane is nearing completion with the scheduled opening of approximately 120 licensed spaces in September 2015;
  • BrightPath entered into conditional agreements with First Capital Realty Inc. ("First Capital") to sell the real estate underlying its McKenzie Towne location in southeast Calgary for gross proceeds of $7.5 million and leaseback the property from the purchaser. This transaction creates the availability of approximately $7.3 million of capital to augment funding for the Company's growth pipeline and share repurchase program. It is expected to result in a gain on disposition of approximately $1.8 million and close in the third quarter of 2015;
  • The announcement of plans to develop a greenfield centre located in First Capital's London Place West shopping centre in southwest Calgary. When completed, the Richmond Early Learning and Child Care Centre will comprise of approximately 245 licensed spaces in a 20,000 square foot facility on a one acre parcel of land. Construction of the facility is expected to begin in early 2016; and
  • During the three and six months ended June 30, 2015, the Company purchased 67,000 and 139,500 shares for cancellation, respectively, of which 92,500 had been cancelled at June 30, 2015, under its normal course issuer bid ("NCIB"). Cumulatively to date, the Company has purchased for cancellation 525,200 shares under its NCIB at an average price of $0.36 per share.

"BrightPath confronted challenges and leveraged opportunities during the second quarter of 2015," noted Mary Ann Curran, Chief Executive Officer of the Company. "We began our year with a strategy to address product and profitability optimization, portfolio growth and surfacing shareholder value. In addition to solid year over year growth in financial results and portfolio growth, we are pleased to have validated the inherent value of our greenfield development program through a precedent setting sale leaseback monetization. This transaction creates the availability of capital to continue to successfully improve shareholder value."

Financial Review

($000's except where otherwise noted and per share amounts)



Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Revenue

$

13,912

$

13,647

$

12,911

$

12,013

$

13,181

$

12,703

$

12,182

$

11,211

Centre margin

3,976

3,949

3,741

2,782

3,670

3,626

3,209

2,592

Centre margin %

28.6

28.9

29.0

23.2

27.8

28.5

26.3

23.1

Adjusted EBITDA

1,781

1,819

1,889

801

1,704

1,560

926

226

FFO

1,436

1,551

1,633

517

1,415

1,250

688

(161)

AFFO

1,373

1,516

1,472

294

1,361

1,329

728

(113)

Net profit (loss)

140

296

(85)

(963)

133

(653)

(1,282)

(1,287)

Per share amounts:










FFO

0.012

0.013

0.013

0.004

0.012

0.010

0.006

(0.001)


AFFO

0.011

0.013

0.012

0.002

0.011

0.011

0.006

(0.001)


Net profit (loss)

0.001

0.002

(0.001)

(0.008)

0.001

(0.005)

(0.011)

(0.011)











For the three months ended June 30, 2015, the Company reported record revenue of $13,912 (June 30, 2014 - $13,181) and record centre margin of $3,976 (June 30, 2014 - $3,670). The 5.5% year-over-year increase in quarterly revenue included the beneficial impact of the Clayton Hills centre opened in September 2014 and a 3.1% increase in Stabilized centre revenue. The positive effect of fee increases in Stabilized centres was offset, in part, by a decline in average occupancy from 87.5% in the second quarter of 2014 to 86.9% in the second quarter of 2015. Centre margin as a percentage of revenue in the second quarter of 2015 increased to 28.6% compared to 27.8% in the same quarter a year earlier. Fee increases and efficiencies resulting in lower operating costs were offset, in part, by wage rate increases, non-optimal labour ratios in support of building occupancies and reconfiguration of rooms to different age groups in Ontario.

Revenue for the six month period ended June 30, 2015 was $27,559 (June 30, 2014 - $25,884) and centre margin was $7,925 (June 30, 2014 - $7,296). Centre margin as a percentage of revenue increased to 28.8% compared to 28.2% in 2014. The reasons for the increases in revenue and centre margin are substantially the same as those discussed above for the second quarter of fiscal 2015. Stabilized centre revenue increased 4.3% period over period.

Adjusted EBITDA for the second quarter of 2015 was $1,781 compared to $1,704 in the second quarter of 2014, an increase of 4.5%. Labour as a percentage of revenue increased primarily due to higher than cost of living wage rate increases to centre staff, the impact of the Clayton Hills centre as it ramps up occupancy, non-optimal labour ratios in certain centres while occupancies build and reconfiguration of certain rooms to younger age groups in Ontario.

Adjusted EBITDA for the six months ended June 30, 2015 was $3,600 compared to $3,264 in the same period in 2014, an increase of 10.3%.   

Net profit for the second quarter of 2015 was $144 compared to a net profit of $133 in the second quarter of 2014. Net profit for the six months ended June 30, 2015 was $440 compared to a net loss of $520 for the six months ended June 30, 2014. In accordance with International Financial Reporting Standards, the Company expenses all business acquisition costs in the period incurred. Acquisition and development costs, incurred for future growth and profitability, were $344 for the second quarter of 2015 compared to $232 in the second quarter of 2014. Basic and diluted net profit per share for the three and six months ended June 30, 2015 was $0.001 and $0.004 (June 30, 2014 - $0.001 and $(0.004), respectively).

Continued oil price volatility in Alberta has impacted enrollments in localized areas in this region as anticipated. Enrollment losses have centred primarily around the before and after school age segment, with younger age groups in full day care showing greater strength at 96% occupancy for those children. The Company is mindful of the unpredictability inherent in the market and continues to closely monitor conditions and the resulting impact on operations and make adjustments as necessary. BrightPath anticipates additional modest pressure on enrollments moving into the third quarter of 2015.

In Ontario, the Company's emphasis on driving enrollments and the strategies in place to achieve this has resulted in improved occupancy in Ontario centres to 78.1% in the second quarter of 2015 from 74.9% in the first quarter of 2015. Compared to the three months ended June 30, 2014, occupancies in Ontario decreased slightly from 79.3%.

Occupancy in Stabilized centres in British Columbia increased to 85.3% in the second quarter of 2015 from 83.4% in the second quarter of 2014.

Adjusted EBITDA, AFFO and FFO



Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Centre margin for the period

3,976

3,949

3,741

2,782

3,670

3,626

3,209

2,592

General and administrative expense

(1,258)

(1,192)

(903)

(1,138)

(1,170)

(1,276)

(1,518)

(1,610)

Taxes, other than income taxes

(44)

(43)

(52)

(44)

(43)

(43)

(34)

(30)

Operating lease expense

(893)

(895)

(897)

(799)

(753)

(747)

(731)

(726)

Adjusted EBITDA

$

1,781

$

1,819

$

1,889

$

801

$

1,704

$

1,560

$

926

$

226




Q2 2015

Q1 2015

Q4 2014

Q3 2014

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Net profit (loss) for the period

144

296

(85)

(963)

133

(653)

(1,282)

(1,287)

Depreciation and certain other non-cash items

948

941

948

847

852

853

929

851

Acquisition  and development costs

344

314

736

365

232

280

214

275

Restructuring costs

-

-

-

-

198

770

827

-

Loss on disposition of development land

-

-

34

268

-

-

-

-

FFO

$

1,436

$

1,551

$

1,633

$

517

$

1,415

$

1,250

$

688

$

(161)

Stock based compensation

153

78

107

108

93

103

76

176

Maintenance capital expenditure

(216)

(113)

(268)

(331)

(147)

(24)

(36)

(128)

AFFO

$

1,373

$

1,516

$

1,472

$

294

$

1,361

$

1,329

$

728

$

(113)


FFO for the second quarter of 2015 was $1,436 compared to $1,415 in the second quarter of 2014, an increase of 1.5%. FFO per share for the second quarter of 2015 was $0.012 compared to $0.012 for the same period in 2014. FFO for the six months ended June 30, 2015 was $2,987 ($0.025 per share) compared to $2,665 ($0.022 per share) for the six months ended June 30, 2014, an increase of 12.1%.

AFFO for the second quarter of 2015 was $1,373 ($0.011 per share) compared to $1,361 ($0.011 per share) a year earlier. AFFO for the six months ended June 30, 2015 was $2,889 compared to $2,690 in the same period of 2014. AFFO per share for the six months ended June 30, 2015 was $0.024 compared to $0.022 for the same period in 2014, an increase of 9.1%.

Centre Portfolio Overview

A summary of the Company's number of centres and licensed spaces, as well as average occupancies by region are provided in the table that follows. Centres typically experience lower levels of attendance June through August due to seasonal factors. As well, new centre locations may exhibit lower occupancy levels during ramp up of enrollments, thereby adversely impacting total portfolio occupancies prior to achieving stabilization.   






Stabilized Centres




Three months ended June 30,





2015


2014

Alberta







Ending Centres #




30


30

Ending Spaces #




3,238


3,121

Avg. Occupancy %




90.6


91.7








British Columbia







Ending Centres #




7


7

Ending Spaces #




577


576

Avg. Occupancy %




85.3


83.4








Ontario  







Ending Centres #




13


13

Ending Spaces #




1,351


1,363

Avg. Occupancy %




78.6


79.8








Total Stabilized Centres







Ending Centres #




50


50

Ending Spaces #




5,166


5,060

Avg. Occupancy %




86.9


87.5

Non-stabilized Centres




Three months ended June 30,





2015


2014

Alberta







Ending Centres #




-


-

Ending Spaces #




-


-

Avg. Occupancy %




-


-








British Columbia







Ending Centres #




1


-

Ending Spaces #




206


-

Avg. Occupancy %




43.5


-








Ontario  







Ending Centres #




1


1

Ending Spaces #




71


71

Avg. Occupancy %




69.4


68.6








Total Non-stabilized Centres







Ending Centres #




2


1

Ending Spaces #




277


71

Avg. Occupancy %




50.1


68.6

Total Portfolio (All Centres)




Three months ended June 30,





2015


2014

Ending Centres #




52


51

Ending Spaces #




5,443


5,131

Avg. Occupancy %




85.0


87.3

Deferred Share Units ("DSUs")

For the three months ended June 30, 2015, pursuant to the Board of Directors DSU plan, five members of the board of directors of BrightPath elected to receive board fees in the form of DSUs in lieu of cash remuneration, representing $0.06 million fair value in respect of 176,213 DSUs. The DSUs were issued on July 20, 2015.

In its May 5, 2015 news release, the Company reported 219,462 DSUs were issued on April 2, 2015 pursuant to the Employee DSU plan. The correct number of DSUs issued were 205,534. 

Outlook

The Company remains focussed on delivering on its identified priorities for 2015:

  • To generate substantially higher Adjusted EBITDA and to optimize the return on capital invested through:
    • continuous product advancement;
    • disciplined management of enrollment and mix;
    • market-based pricing of tuition fees;
    • continuously improving management of all costs – labour, other operating and general and administrative; and
    • realizing the cash flow from development initiatives announced in 2014 and recently in 2015, as well as those in the pipeline but not yet announced.

Continued oil price volatility has disrupted the Alberta market. The Company continues to monitor conditions and the resulting impact on operations while being mindful of the unpredictability inherent in the market. The Edmonton market has remained relatively strong and vibrant due to its employment base emphasis on government, banking and insurance. The Calgary market employment base is more focussed on the energy sector with centre enrollment slippage having a more significant impact on before and after school enrollments than full day child care. BrightPath anticipates additional modest pressure on enrollments moving into the third quarter of 2015.

In Ontario, the final stages of full day kindergarten are complete and occupancies are generally stabilizing at levels now approaching 80%. There are continuing signs of an encouraging trend as compared to the first quarter of 2015, occupancies in Ontario increased from 74.9% to 78.1%. The Company is reconfiguring rooms, which change in mix creates downward pressure on margins but market support for fee levels remain strong.

The expansion of BrightPath's Airdrie, Alberta centre was completed and opened on schedule at the beginning of July. The remaining announced developments at the Cochrane, Creekside and West Henday locations, for which the Company is experiencing momentum in pre-registrations, are on schedule from a construction perspective and expected to open beginning in late 2015 and early 2016.

The Company announced today a further expansion of its growth pipeline with plans to develop a 245 licensed space greenfield centre at First Capital's London Place West shopping centre in southwest Calgary. This is the second major greenfield transaction completed with First Capital, and builds on the success of the Company's previous greenfield developments.

As the Company completes its first half of operations for 2015, it is pleased with its results to date and will continue to demonstrate its commitment to its objectives going forward. Concurrently, BrightPath's management and board of directors are increasingly dismayed by the price of the Company's common shares. We have previously outlined the disconnect between the price of the Company's common shares and the value of its increasingly profitable operations and owned real estate portfolio with a gross book value of $45 million. As such, we are pleased to validate the financial opportunity underpinning this disconnect with the announcement today of the sale of real estate underlying the Company's McKenzie Towne centre. This transaction creates availability of $7.3 million of capital which is significant compared to the total equity market capitalization of the Company as of today of approximately $40 million. The capital surfaced from this transaction is anticipated to augment the available funding for the Company's growth pipeline of development properties and the purchase of the Company's common shares.

The Company believes that the undervaluation of its share price is not only significant based on its current operations and real estate holdings, but also further highlighted by the future growth of over approximately 1,000 child care spaces which have been announced. The cash flow per share which will be generated by this growth pipeline is highly accretive as it is fully funded and can be delivered without any equity dilution to shareholders.

Real estate monetization represents just one of several initiatives management is initiating and exploring to surface value for its shareholders.

NON- IFRS PERFORMANCE MEASURES

The Company uses "centre margin" as an indicator of centre performance. 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 include labour and direct costs and exclude operating lease expense for leasehold properties and mortgage interest, if any, on those properties owned by the Company.

The Company also uses Adjusted EBITDA, FFO and AFFO as indicators of financial performance. 

Adjusted EBITDA is calculated by deducting the following from centre margin: operating lease expense, general and administrative expenses, and taxes other than income taxes. FFO is calculated by adjusting the net profit/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 learning materials, toys, furniture, appliances and other equipment. Maintenance capital expenditures do not occur evenly over the course of the year with these activities typically occurring with greater intensity during the seasonally slower summer months.

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.

Centre operating results are also analyzed based on Stabilized and Non-stabilized centres which may not be comparable with that used by other entities. Acquired and newly-developed centres are deemed to be stabilized after 24 months, or sooner if normalized occupancy levels are achieved.

Net profit/loss is impacted by, among other items, accounting standards that require centre acquisition and transaction costs to be expensed as incurred. As the Company executes its consolidation and development strategy in the Canadian market, it will routinely incur such expenses which will negatively impact the Company's reported net profit/loss, but not Adjusted EBITDA, FFO and AFFO.

QUARTERLY CONFERENCE CALL

BrightPath's quarterly results conference call is scheduled for Thursday, July 30, 2015 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://event.on24.com/r.htm?e=1018970&s=1&k=055913084FF5CC84934F925FDCDD6670

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 Thursday, August 13, 2015 at midnight. To access the archived conference call, dial +1 (416) 849-0833 or +1 (855) 859-2056 and enter the reservation number 76023560 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 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 (TSXV: 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.

BrightPath Early Learning Inc.








Consolidated Statements of Financial Position








(Unaudited)
























(CDN $000's)




June 30,
2015



December 31,
2014

Assets
















Non-current assets









Property and equipment




$

48,918



$

45,811


Goodwill and definite life intangible assets




30,044



30,074





78,962



75,885

Current assets









Cash




2,387



3,455


Accounts receivable




1,503



1,983


Prepaid and other expenses




1,996



1,515


Short term investments




39



39





5,925



6,992









Total Assets




$

84,887



$

82,877











Liabilities
















Non-current liabilities









Provision for restructuring costs




$

-



$

45


Long term debt and financing leases





19,046




19,762


Convertible debentures – liability component





4,386




4,355





23,432



24,162

Current liabilities









Accounts payable and accrued liabilities




5,409



2,924


Current portion of provision for restructuring costs




182



290


Deferred revenue




634



878


Current portion of debt and financing leases




1,401



1,418





7,626



5,510









Total Liabilities




31,058



29,672









Shareholders' Equity









Share capital




65,795



65,871


Convertible debentures – equity component




342



342


Equity settled share based compensation




2,650



2,419


Accumulated deficit




(14,958)



(15,427)

Total Shareholders' Equity




53,829



53,205









Total Liabilities and Shareholders' Equity




$

84,887



$

82,877

 

BrightPath Early Learning Inc.

Consolidated Statements of Operations and Comprehensive Income (Loss)

Three and six months ended June 30, 2015 and 2014

(Unaudited)





















Three months ended June 30,


Six months ended June 30,

(CDN $000's)


2015


2014


2015


2014










Revenue


$

13,499


$

12,791


$

26,745


$

25,154

Government grants



413



390



814



730

Total revenue



13,912



13,181



27,559



25,884










Centre expenses










Salaries, wages and benefits


7,424


6,828


14,690


13,476


Other operating expenses


2,512


2,683


4,944


5,112

Centre margin


3,976


3,670


7,925


7,296










Operating leases


893


753


1,788


1,500

Finance


365


388


713


740

General and administrative


1,258


1,170


2,450


2,446

Taxes, other than income taxes


44


43


87


86

Restructuring


-


198


-


968

Acquisition and development


344


232


658


512

Stock-based compensation


153


93


231


196

Depreciation and amortization


779


713


1,566


1,427



3,836


3,590


7,493


7,875










Profit (loss) before other income


140


80


432


(579)










Other income


4


53


8


59










Net Profit (Loss) and Total Comprehensive Income (Loss)


$

144


$

133


$

440


$

(520)










Net profit (loss) per share










Basic and diluted


$

0.001


$

0.001


$

0.004


$

(0.004)

 

BrightPath Early Learning Inc.

Consolidated Statements of Changes in Shareholders' Equity

Six months ended June 30, 2015 and 2014

(Unaudited)























(CDN $000's)


Share Capital


Convertible
Debentures –
Equity
Component


Equity Settled
Share Based
Compensation


Accumulated
Deficit


Shareholders'
Equity












Balance at January 1, 2014

$

66,030


$

342


$

2,026


$

(13,911)


$

54,487












Stock-based compensation


-


-


196


-


196

Net loss and comprehensive loss


-


-


-


(520)


(520)












Balance at June 30, 2014

$

66,030


$

342


$

2,222


$

(14,431)


$

54,163























Balance at January 1, 2015

$

65,871


$

342


$

2,419


$

(15,427)


$

53,205













Stock-based compensation



-


-


231




-

231














Shares purchased for cancellation



(76)


-


-


29



(47)













Net profit and comprehensive income



-


-


-


440


440













Balance at June 30, 2015

$

65,795


$

342


$

2,650


$

(14,958)


$

53,829

 

BrightPath Early Learning Inc.

Consolidated Statements of Cash Flow

Three and six months ended June 30, 2015 and 2014

(Unaudited)





















Three months ended June 30,


Six months ended June 30,

(CDN $000's)


2015


2014


2015


2014










Cash provided by (used in):


















Operating Activities









Net profit (loss)


$

144


$

133


$

440


$

(520)

Items not affecting cash:










Depreciation and amortization


779


713


1,566


1,427


Depreciation included in operating costs


38


38


75


75


Finance costs


365


388


713


740


Stock-based compensation


153


93


231


196


Change in fair value of convertible debenture liability component


-


(50)


-


(50)

Change in non-cash working capital


1,392


(678)


2,118


(1,030)

Change in non-current portion of provision for restructuring costs


-


(69)


(45)


63

Cash generated by operations


2,871


568


5,098


901










Finance costs paid


(372)


(387)


(601)


(602)

Net cash generated by operating activities


2,499


181


4,497


299










Investing Activities









Property and equipment


(3,867)


(841)


(4,718)


(1,178)



(3,867)


(841)


(4,718)


(1,178)










Financing Activities









Loan repayments


(328)


(287)


(655)


(573)

Financing transaction costs


(32)


(30)


(32)


(47)

Finance lease repayments


(66)


(61)


(130)


(121)

Shares purchased for cancellation


(14)


-


(30)


-



(440)


(378)


(847)


(741)










Change in Cash


(1,808)


(1,038)


(1,068)


(1,620)

Cash at beginning of period


4,195


3,358


3,455


3,940

Cash at end of period


$

2,387


$

2,320


$

2,387


$

2,320

 

SOURCE BrightPath Early Learning Inc.

For further information: regarding this release, please contact Dale Kearns, President & Chief Financial Officer of BrightPath Early Learning Inc. at (403) 705-0362 ext. 406.

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