BrightPath Reports Record Third Quarter Financial Performance and Successfully Delivers on New Growth

CALGARY, Nov. 5, 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 nine month periods ended September 30, 2015.

Portfolio performance highlights for the quarter ended September 30, 2015, which reflect the seasonally weak summer season, are as follows (all comparisons are against the same period in prior year):

• A 6.7% increase in revenue to $12.8 million;
• Adjusted EBITDA of $0.9 million, an increase of 14.2%;
• Improved centre margin of 25.5% of revenue compared to 23.2%;
• Average occupancy of Stabilized centres was 76.4% compared to 77.9%;
• Funds from Operations ("FFO") of $0.7 million ($0.006 per share), an increase of 48.4%;   
• A 142.3% increase in Adjusted Funds from Operations ("AFFO") to $0.6 million ($0.005 per share); and
• Available capital of $27.3 million at quarter end to fund the Company's pipeline of growth initiatives, including both the announced additional 815 licensed spaces that represent a 14% increase in the Company's current portfolio of 5,796 spaces, as well as other growth initiatives not yet announced.

Highlights for the nine months ended September 30, 2015 include:

• Revenues of $40.4 million, an increase of 6.5%;
• Adjusted EBITDA of $4.5 million, an increase of 11.1%;
• Higher centre margin of 27.7% of revenue compared to 26.6%;
• A 19.4% increase in FFO to $3.7 million ($0.030 per share); and
• AFFO of $3.5 million ($0.029 per share), an increase of 20.8%.

Significant events to date in 2015 include:

• Following the quarter end, the Creekside greenfield centre in the Symons Valley area of northwest Calgary was opened, comprising 247 licensed spaces in a 20,000 square foot facility on a 0.9 acre parcel of land;
• The expansion of the Company's Airdrie centre, located in a suburban community north of the city of Calgary, was opened in July 2015, increasing its licensed capacity from 57 licensed spaces to 117;
• In September 2015, the Company's new centre located west of Calgary in Cochrane was opened, creating 120 licensed spaces in leased premises;
• In August 2015, BrightPath completed the sale and leaseback of the real estate housing its McKenzie Towne location in southeast Calgary with an affiliate of First Capital Realty Inc. ("First Capital") for gross proceeds of $7.5 million. This transaction generated  $3.2 million of cash, after repayment of indebtedness and fees, and $4.0 million of additional bank financing capacity to augment funding for the Company's growth pipeline and share repurchase program;
• Construction of the Company's first Edmonton greenfield development, the West Henday centre, with approximately 250 licensed spaces, began in May 2015. This facility is scheduled to open in early 2016;
• The Company announced plans to develop a greenfield centre in an underserved market in southwest Calgary.  Located nearby the planned ring road, the Richmond Early Learning and Child Care Centre will create approximately 245 licensed spaces in a newly-developed 20,000 square foot facility on a one acre land parcel within First Capital's London Place West shopping centre. Construction of the facility is expected to begin in early 2016;
• In November, following on the enrollment success and market demand for the Creekside centre, the Company announced plans to open a new centre nearby in Riocan REIT's Sage Hill Crossing.  When completed, the Sage Hill centre will offer approximately 130 licensed spaces in 10,000 square feet of leasehold premises; and
• The TSX Venture Exchange accepted the renewal of the Company's notice of intention to make a normal course issuer bid ("NCIB") in September 2015 to purchase up to a maximum five percent of the issued and outstanding common shares to contribute to enhanced shareholder value and liquidity. During the three and nine months ended September 30, 2015, the Company purchased 412,200 and 551,700 shares for cancellation, respectively, of which 512,200 had been cancelled at September 30, 2015. Cumulatively to date, the Company has purchased for cancellation 1,012,700 shares under its NCIBs at an average price of $0.35 per share.

"BrightPath's third quarter of 2015 operating results were strong despite select challenges in the market, particularly in Alberta. The Company managed to achieve stronger margins and better financial results versus the prior year by maintaining occupancy levels at the highest possible levels and tightly managing its operating costs," noted Mary Ann Curran, Chief Executive Officer of the Company. "The recent openings of our new Creekside and Cochrane centres and the expansion at Airdrie, as well as the strong pipeline of developments underway, together with the additional capital funding created through the sale and leaseback of BrightPath's McKenzie Towne centre, all validate our commitment to growing profitably and aggressively, and to enhancing value for our shareholders."

Financial Review

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

		Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q2 2014		Q1 2014		Q4 2013
Revenue		$	12,815	$	13,912	$	13,647	$	12,911	$	12,013	$	13,181	$	12,703	$	12,182
Centre margin		3,265		3,976		3,949		3,741		2,782		3,670		3,626		3,209
Centre margin %		25.5		28.6		28.9		29.0		23.2		27.8		28.5		26.3
Adjusted EBITDA		915		1,781		1,819		1,889		801		1,704		1,560		926
FFO		696		1,436		1,551		1,609		469		1,365		1,250		650
AFFO		596		1,373		1,516		1,448		246		1,311		1,329		690
Net profit (loss)		1,344		140		296		(85)		(963)		133		(653)		(1,282)
Per share amounts:
	FFO	0.006		0.012		0.013		0.013		0.004		0.011		0.010		0.005
	AFFO	0.005		0.011		0.012		0.012		0.002		0.011		0.011		0.006
	Net profit (loss)	0.011		0.001		0.002		(0.001)		(0.008)		0.001		(0.005)		(0.011)

For the three months ended September 30, 2015, which reflect the seasonally weak summer season, the Company reported revenue of $12,815 (September 30, 2014 - $12,013) and centre margin of $3,265 (September 30, 2014 - $2,782). The 6.7% increase in revenue year over year included the beneficial impact of new centre openings in Surrey and Cochrane, the expansion of the Company's Airdrie centre and a 3.6% increase in Stabilized centre revenue. The positive effect of fee increases and improved operating metrics in the Stabilized centres was offset, in part, by a decline in average occupancy from 77.9% in the third quarter of 2014 to 76.4% in the third quarter of 2015 due to weakness in the Alberta economy as anticipated by the Company. Notwithstanding the decline in average occupancy, centre margin as a percentage of revenue increased to 25.5% compared to 23.2% a year earlier. Fee increases and efficiencies in labour and operating costs were only partially offset by wage rate increases to centre staff and non-optimal labour ratios in certain centres while occupancies build partially from the reconfiguration of rooms to younger age groups in Ontario.

For the nine month period ended September 30, 2015, revenue was $40,374 (September 30, 2014 - $37,897) and centre margin was $11,190 (September 30, 2014 - $10,078). The reasons for the increase in revenue are substantially the same as those discussed above for the three month period. Stabilized centre revenue increased 4.0% period over period. Centre margin as a percentage of revenue increased to 27.7% compared to 26.6% in 2014, also for substantially the same reasons as the third quarter.

Adjusted EBITDA for the third quarter of 2015 was $915 compared to $801 in the third quarter of 2014. Adjusted EBITDA improved 14.2% mainly due to higher centre margin offset, in part, by higher general and administrative and operating lease expenses and rent associated with the sale and leaseback of the McKenzie Towne centre.

Adjusted EBITDA for the nine months ended September 30, 2015 was $4,515 compared to $4,065 in the same period in 2014, an increase of 11.1%.

In August 2015, the Company completed a transaction for the sale and leaseback of its McKenzie Towne centre location in Calgary, Alberta for gross proceeds of $7,500. Net cash proceeds from the transaction, after repayment of indebtedness and transaction fees, were $3,211. In addition, $4,004 of bank financing capacity was created to be used toward initiatives to create shareholder value. The transaction, effected at a capitalization rate of 6.76%, not only serves to validate and underscore the inherent strength of BrightPath's operating and financial covenant as a tenant, but also the value of its real estate portfolio embedded in its 25 owned properties.  

Net profit for the third quarter of 2015 was $1,344 compared to a net loss of $963 in the third quarter of 2014. The third quarter of 2015 includes the gain on the sale and leaseback of the McKenzie Towne centre of $1,791, whereas the third quarter of 2014 reflects a loss on the disposition of development land of $268. Basic and diluted net profit per share for the three months ended September 30, 2015 was $0.011 and $0.010, respectively (September 30, 2014 - $(0.008) and $(0.008), respectively).

Net profit for the nine months ended September 30, 2015 was $1,784 compared to a net loss of $1,483 for the nine months ended September 30, 2014. Basic and diluted net profit per share for the nine months ended September 30, 2015 was $0.015 (September 30, 2014 - $(0.012)).  

In Alberta, stabilized centre occupancy declined to 81.7% in the third quarter of 2015 from 85.6% in the third quarter of 2014. While both quarters' occupancy levels reflect the weak seasonality of the summer months, the third quarter of 2015 began to reflect pressure on enrollment levels due to the downturn in the Alberta economy. The Calgary market has experienced the most softening, whereas the Edmonton market has remained stronger due to its substantial government, banking, and insurance employment base. With unemployment levels in Alberta anticipated in the 6% range, the Company anticipates continued pressure on enrollment through the fourth quarter. To date, the Company has been successful at managing and growing its business through optimizing fee levels, improving labour hour efficiency and reducing variable costs, while continuing to provide competitive wages, which together more than offset the effect of the decline in enrollments. The Company will continue to utilize these measures to manage through the economic challenges.

In recent years, the Company has focused on the development of state-of-the-art centres in under-served markets in major cities in Western Canada that provide a breadth of superior child care services while achieving greater profitability through economies of scale. These centres continue to receive an enthusiastic reception. This is underscored by the notable enrollment success of the Creekside greenfield centre, located in Canadian Real Estate Investment Trust's Creekside shopping centre in northwest Calgary with 247 licensed spaces, opened this week. In the face of a weakening Alberta economic climate, virtually all of the full day spaces are booked for enrollment over the next two months, thereby significantly surpassing the Company's anticipated pro forma which included a 24 month stabilization period, an industry norm for projects of this size. The success of this project underscores the severe shortage of quality licensed spaces in recently-developed suburbs of many Canadian cities and the ability of BrightPath to identify and execute its growth strategy to serve these communities. Similarly, the Surrey facility, opened in September 2014 with 206 licensed spaces, is now 67% occupied and should readily achieve stabilization well within the 24 month period expected for centres of this scale.

In Ontario, the Company is focused on rebuilding occupancy, reconfiguring space and pursuing opportunities to add capacity. Occupancy in Ontario centres improved to 64.3% in the third quarter of 2015 from 62.6% in the third quarter of 2014.

Occupancy in Stabilized centres in British Columbia increased to 75.8% in the third quarter of 2015 from 74.6% in the third quarter of 2014.

Adjusted EBITDA, AFFO and FFO

($000's)

	Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q2 2014		Q1 2014		Q4 2013
Centre margin for the period	3,265		3,976		3,949		3,741		2,782		3,670		3,626		3,209
General and administrative expense	(1,271)		(1,258)		(1,192)		(903)		(1,138)		(1,170)		(1,276)		(1,518)
Taxes, other than income taxes	(40)		(44)		(43)		(52)		(44)		(43)		(43)		(34)
Operating lease expense	(1,039)		(893)		(895)		(897)		(799)		(753)		(747)		(731)
Adjusted EBITDA	$	915	$	1,781	$	1,819	$	1,889	$	801	$	1,704	$	1,560	$	926
	Q3 2015		Q2 2015		Q1 2015		Q4 2014		Q3 2014		Q2 2014		Q1 2014		Q4 2013
Net profit (loss) for the period	1,344		144		296		(85)		(963)		133		(653)		(1,282)
Depreciation and certain other non-cash items	815		948		941		924		799		802		853		891
Acquisition  and development costs	328		344		314		736		365		232		280		214
Restructuring costs	-		-		-		-		-		198		770		827
Loss on disposition of development land	-		-		-		34		268		-		-		-
Gain on sale and leaseback	(1,791)		-		-		-		-		-		-		-
FFO^(1)	$	696	$	1,436	$	1,551	$	1,609	$	469	$	1,365	$	1,250	$	650
Stock based compensation	63		153		78		107		108		93		103		76
Maintenance capital expenditure	(163)		(216)		(113)		(268)		(331)		(147)		(24)		(36)
AFFO^(1)	$	596	$	1,373	$	1,516	$	1,448	$	246	$	1,311	$	1,329	$	690

(1)	Certain non-IFRS measures in prior periods have been adjusted.

FFO for the third quarter of 2015 was $696 compared to $469 in the third quarter of 2014, an increase of 48%. FFO per share for the third quarter of 2015 was $0.006 compared to $0.004 for the same period in 2014. FFO for the nine months ended September 30, 2015 was $3,683 compared to $3,084 for the nine months ended September 30, 2014, an increase of 19%. FFO per share for the nine months ended September 30, 2015 was $0.030 compared to $0.025 for the same period in 2014.

AFFO for the third quarter of 2015 was $596 compared to $246 a year earlier, an increase of 2.5 times. AFFO per share for the third quarter of 2015 was $0.005 compared to $0.002 for the third quarter of 2014. AFFO for the nine months ended September 30, 2015 was $3,485 compared to $2,886 in the same period of 2014, an increase of 21%. AFFO per share for the nine months ended September 30, 2015 was $0.029 compared to $0.024 for the same period in 2014.

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 centres typically exhibit lower occupancy levels during ramp up of enrollments, thereby adversely impacting total portfolio occupancies prior to achieving stabilization.   

Stabilized Centres	Three months ended September 30,
	2015		2014
Alberta
Ending Centres #	30		30
Ending Spaces #	3,238		3,163
Avg. Occupancy %	81.7		85.6
British Columbia
Ending Centres #	7		7
Ending Spaces #	577		581
Avg. Occupancy %	75.8		74.6
Ontario
Ending Centres #	14		14
Ending Spaces #	1,408		1,440
Avg. Occupancy %	64.3		62.6
Total Stabilized Centres
Ending Centres #	51		51
Ending Spaces #	5,223		5,184
Avg. Occupancy %	76.4		77.9
Non-stabilized Centres	Three months ended September 30,
	2015		2014
Alberta
Ending Centres #	1		-
Ending Spaces #	120		-
Avg. Occupancy %	26.5		-
British Columbia
Ending Centres #	1		1
Ending Spaces #	206		206
Avg. Occupancy %	53.5		22.3
Ontario
Ending Centres #	-		-
Ending Spaces #	-		-
Avg. Occupancy %	-		-
Total Non-stabilized Centres
Ending Centres #	2		1
Ending Spaces #	326		206
Avg. Occupancy %	49.1		22.3
Total Portfolio (All Centres)	Three months ended September 30,
	2015		2014
Ending Centres #	53		52
Ending Spaces #	5,549		5,390
Avg. Occupancy %	75.1		77.2

Deferred Share Units ("DSUs")

For the three months ended September 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 164,519 DSUs. The DSUs were issued on October 23, 2015.

Outlook

The Company remains focused on delivering on its identified priorities for 2015, which have been:

• To generate substantially higher Adjusted EBITDA and enhance shareholder value through:
  • continuous product advancement enabling optimized pricing and occupancy levels;
  • disciplined management of enrollment and mix;
  • continuously improving management of all costs – labour, other operating and general and administrative;
  • realizing the cash flow from development initiatives announced in 2014 and earlier in 2015, as well as those in the pipeline but not yet announced; and
  • measures to enhance shareholder value, including monetization of select assets and the NCIB program.

With unemployment levels in Alberta anticipated in the 6% range, the Company anticipates continued pressure on enrollment through the fourth quarter. To date, the Company has been successful at managing its business through optimizing fee levels, improving labour hour efficiency and reducing variable costs, while continuing to provide competitive wages, which together have more than offset the effect of the decline in enrollments.

In Ontario, the multi-year planned roll out of FDK was completed in 2014. The supply of licensed spaces in Ontario continues to adjust to a new addressable market, with a focus on younger children and expanded programing. This programing supports child development thus providing market advantage vis a vis those centres providing child care with more limited services, education and programing.

It is noteworthy that recent new centre openings reflect a 70% enrollment level, demonstrating the demand for BrightPath services and its success in executing its growth strategy. As such, the Company is confident that the 427 additional licensed spaces in select markets in Alberta that have recently come online are in demand, as are the additional 815 licensed spaces under development. With respect to future opportunity, the British Columbia Lower Mainland market represents a significant opportunity while the Southern Ontario market offers select opportunities.

As noted on earlier occasions, BrightPath's management and board of directors believe that the current price of the Company's common shares on the TSX Venture does not appropriately or adequately reflect the Company's current value, operational performance, financial results, strategic achievements and its near and longer term prospects. We have previously outlined the disconnect between the price of the Company's 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 were pleased to validate the financial opportunity underpinning this disconnect with the announcement of the sale of real estate underlying the Company's McKenzie Towne centre. This transaction created the availability of an additional $7.3 million of capital, a significant sum 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 funding already available for the Company's pipeline of growth initiatives and the purchase of the Company's common shares.

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

The Company believes that the undervaluation of its share price is not only significant based on its current operations and real estate holdings, but is also further highlighted by the future growth of approximately 815 licensed spaces which have been announced. The pro forma 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. Furthermore, those centres can be operated without any significant increase in general and administration overhead expense.

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 Friday, November 6, 2015 at 10:00 am EST.  The call details are as follows:

To access the conference call by telephone, dial [phone] or [phone]. 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=1074679&s=1&k=7AB16B9A6777A0AD6EB397751E0C4BBA

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, November 20, 2015 at midnight. To access the archived conference call, dial [phone] or [phone] and enter the reservation number 61188666 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 54 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)			September 30, 2015		December 31, 2014
Assets
Non-current assets
	Property and equipment		$	47,205	$	45,811
	Goodwill and definite life intangible assets		30,043		30,074
			77,248		75,885
Current assets
	Cash		2,528		3,455
	Accounts receivable		1,594		1,983
	Prepaid and other expenses		1,896		1,515
	Short term investments		39		39
			6,057		6,992
Total Assets			$	83,305	$	82,877
Liabilities
Non-current liabilities
	Provision for restructuring costs		$	-	$	45
	Long term debt and financing leases			14,886		19,762
	Convertible debentures – liability component			4,376		4,355
			19,262		24,162
Current liabilities
	Accounts payable and accrued liabilities		5,481		2,924
	Current portion of provision for restructuring costs		114		290
	Deferred revenue		1,213		878
	Current portion of debt and financing leases		2,141		1,418
			8,949		5,510
Total Liabilities			28,211		29,672
Shareholders' Equity
	Share capital		65,572		65,871
	Convertible debentures – equity component		342		342
	Equity settled share based compensation		2,713		2,419
	Accumulated deficit		(13,533)		(15,427)
Total Shareholders' Equity			55,094		53,205
Total Liabilities and Shareholders' Equity			$	83,305	$	82,877

BrightPath Early Learning Inc.
Consolidated Statements of Operations and Comprehensive Income (Loss)
Three and nine months ended September 30, 2015 and 2014
(Unaudited)

			Three months ended September 30,				Nine months ended September 30,
(CDN $000's)			2015		2014		2015		2014
Revenue			$	12,393	$	11,633	$	39,138	$	36,787
Government grants				422		380		1,236		1,110
Total revenue				12,815		12,013		40,374		37,897
Centre expenses
		Salaries, wages and benefits	7,038		6,611		21,728		20,087
		Other operating expenses	2,512		2,620		7,456		7,732
Centre margin			3,265		2,782		11,190		10,078
Operating leases			1,039		799		2,827		2,299
Finance			318		361		1,031		1,101
General and administrative			1,271		1,138		3,721		3,584
Taxes, other than income taxes			40		44		127		130
Restructuring			-		-		-		968
Acquisition and development			328		365		986		877
Gain on sale and leaseback			(1,791)		-		(1,791)		-
Loss on disposition of development land			-		268		-		268
Stock-based compensation			63		108		294		304
Depreciation and amortization			765		715		2,331		2,142
			2,033		3,798		9,526		11,673
Profit (loss) before other income			1,232		(1,016)		1,664		(1,595)
Other income			112		53		120		112
Net Profit (Loss) and Total Comprehensive Income (Loss)			$	1,344	$	(963)	$	1,784	$	(1,483)
Net profit (loss) per share
	Basic		$	0.011	$	(0.008)	$	0.015	$	(0.012)
	Diluted		$	0.010	$	(0.008)	$	0.015	$	(0.012)

BrightPath Early Learning Inc.
Consolidated Statements of Changes in Shareholders' Equity
Nine months ended September 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			-		-		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
Balance at January 1, 2015			$	65,871	$	342	$	2,419	$	(15,427)	$	53,205
Stock-based compensation				-	-			294		-		294
Shares purchased for cancellation				(299)	-			-		110		(189)
Net profit and comprehensive income				-	-			-		1,784		1,784
Balance at September 30, 2015			$	65,572	$	342	$	2,713	$	(13,533)	$	55,094

BrightPath Early Learning Inc.
Consolidated Statements of Cash Flow
Three and nine months ended September 30, 2015 and 2014
(Unaudited)

			Three months ended September 30,				Nine months ended September 30,
(CDN $000's)			2015		2014		2015		2014
Cash provided by (used in):
Operating Activities
Net profit (loss)			$	1,344	$	(963)	$	1,784	$	(1,483)
Items not affecting cash:
	Depreciation and amortization		765		715		2,331		2,142
	Depreciation included in operating costs		38		38		113		113
	Finance costs		318		361		1,031		1,101
	Gain on sale and leaseback		(1,791)		-		(1,791)		-
	Loss on disposition of development land		-		268		-		268
	Stock-based compensation		63		108		294		304
	Change in fair value of convertible debenture liability component		(111)		(48)		(111)		(98)
Change in non-cash working capital			593		643		2,711		(387)
Change in non-current portion of provision for restructuring costs			-		(68)		(45)		(5)
Cash generated by operations			1,219		1,054		6,317		1,955
Finance costs paid			(188)		(230)		(789)		(832)
Net cash generated by operating activities			1,031		824		5,528		1,123
Investing Activities
Property and equipment			(4,512)		(1,695)		(9,230)		(2,873)
Net proceeds on sale and leaseback			7,214		-		7,214		-
			2,702		(1,695)		(2,016)		(2,873)
Financing Activities
Loan proceeds			934		-		934		-
Loan repayments			(4,315)		(282)		(4,970)		(855)
Financing transaction costs			-		-		(32)		(47)
Finance lease repayments			(65)		(63)		(195)		(184)
Shares purchased for cancellation			(146)		-		(176)		-
			(3,592)		(345)		(4,439)		(1,086)
Change in Cash			141		(1,216)		(927)		(2,836)
Cash at beginning of period			2,387		2,320		3,455		3,940
Cash at end of period			$	2,528	$	1,104	$	2,528	$	1,104

SOURCE BrightPath Early Learning Inc.

regarding this release, please contact Dale Kearns, President & Chief Financial Officer of BrightPath Early Learning Inc. at [phone] ext. 406.