CALGARY, May 12, 2014 /CNW/ - BrightPath Early Learning Inc. ("BrightPath" or the "Company") (TSX-V: BPE), the leading Canadian provider of quality early childhood education and care, announced today that it has entered into an agreement to develop a purpose-built child care centre in Edmonton, Alberta.
Situated in the West Henday Promenade, the Company's first new development in the Edmonton market will be located at the access point to Lewis Estates and central to several other high-growth master-planned communities. Across from a major public transit hub and adjacent to Anthony Henday Drive (Edmonton's major ring road), the primary trade area consists of more than 25,000 residents, with projected housing starts indicating more than twice the population by 2018. Current information on the supply of child care spaces indicates fewer than 700 licensed spaces available to address existing market demand. West Henday centre will comprise approximately 250 licensed child care spaces in a 20,000 square foot facility constructed on a 0.8 acre parcel of land.
The Company is securing the land site through a long-term ground lease agreement with Melcor Developments Ltd. ("Melcor"). BrightPath will commence construction upon satisfaction of conditions and receipt of a development permit from municipal authorities.
The West Henday Promenade is a 111,000 square foot newly developed community shopping centre developed by Melcor to serve this rapidly growing Edmonton suburb and is anchored by Sobeys, Shoppers Drug Mart, RBC and CIBC.
The West Henday centre will be financed by BrightPath's available credit facility. Similar to the operational and financial success of previous greenfield investments, this opportunity is expected to significantly enhance the Company's profitability and cash flow.
"We are excited to once again work with BrightPath by introducing a quality child care facility in our West Henday Promenade project," said Mr. Brian Baker, President and CEO of Melcor Developments Ltd. "BrightPath provides a service that aligns with our objective of creating fully integrated communities for surrounding residents and clients of our business campuses. BrightPath's child care facility will be a valuable component to this vision in West Henday. This is our second project with BrightPath and we look forward to the prospect of additional partnerships."
"The Edmonton site is our third new location announced in as many weeks," said Mary Ann Curran, Chief Executive Officer of BrightPath. "We recently announced a leasehold location in the Calgary suburb of Cochrane and a greenfield location in the rapidly growing Symons Valley area in northwest Calgary. These actions contribute significantly to the fulfillment of our previously stated and published plans to realize higher levels of EBITDA in 2014 from our existing portfolio through optimization of return on capital, coupled with expansion into a number of new locations that when built and stabilized will further add a substantial amount of incremental recurring cash flow for BrightPath."
"We plan to report the Company's first quarter financial results on May 22, 2014 and anticipate reporting Adjusted EBITDA well in excess of both the prior year and prior quarter, reflecting the market-based pricing strategy, increasing occupancies and cost savings initiatives which we have previously outlined and discussed. Accordingly, the material growth in the Company's base level of cash flow augmented by the re-ignition of the Company's growth program is anticipated to both significantly increase the Company's profitability and enhance BrightPath's commitment to deliver shareholder value," Ms. Curran added.
About BrightPath Early Learning Inc.
BrightPath Early Learning Inc. is a Canadian leader in child care and early education with 51 locations in major markets across the country. Meeting the highest standard in curriculum, nutrition, technology and recreational programming, BrightPath is committed to providing families with the very best care and child development programs Canada has to offer.
For more information, please visit www.BrightPathKids.com/corporate or contact Dale Kearns, President of BrightPath Early Learning Inc. at (403) 705-0362 Ext. 406.
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.
SOURCE: BrightPath Early Learning Inc.
For further information: Dale Kearns, President, BrightPath Early Learning Inc., Office: (403) 705-0362 Ext. 406, Toll Free: (888) 808-2252, Suite 200, 30 Glendeer Circle SE, Calgary, AB T2H 2Z7, www.brightpathkids.com