Margin Outlook
Q: What are segment margin expectations this year?
A: Management expects backup margins to remain near 30% in Q4 while full service margins improve modestly in the low single digits, consistent with 2023 levels. "

Organic Growth
Q: What organic revenue growth did you deliver?
A: Full service organic revenue grew at 8% constant currency, with M&A contributing roughly 0.5% to growth. "

Back-up Care
Q: What drove back-up care growth this quarter?
A: Growth was led by increased utilization among existing clients, leveraging diversified care options rather than relying on new client additions. "

Occupancy Recovery
Q: When will occupancy return to pre-COVID levels?
A: Average occupancy is in the low 60s this quarter, with gradual improvements expected into 2025, although the lowest-performing centers remain a challenge. "

M&A Activity
Q: What is the current status of the M&A pipeline?
A: The company maintains disciplined capital allocation with strong provider relationships, though no near-term acquisitions are planned. "

2025 Outlook
Q: What are expectations for enrollment and pricing in 2025?
A: For 2025, enrollment is projected to grow at low single digits, with pricing increases tapering to around 4% as margins mature. "

EdAssist Trends
Q: What issues are noted in EdAssist participation growth?
A: Participation remains muted due to market conditions, prompting renewed investments in the platform, product, and targeted outreach. "

UK Performance
Q: How is the UK segment performing and rationalizing centers?
A: The UK segment improved notably by halving losses compared to 2023, with plans to close approximately 15–20 centers to further streamline operations. "

Government Policy
Q: Could federal childcare cost caps affect your business?
A: Management views such proposals as low risk, noting that federal support has historically been limited to the most vulnerable families. "

Inflation Impact
Q: Are UK inflation and pricing similar to the US?
A: A global average informs pricing, though geographic variances exist; UK pressures are balanced by tuition adjustments. "

Enrollment Mix
Q: How does enrollment break down by age group?
A: Overall enrollment is growing in the low single digits, with infant-toddler segments performing stronger, aligning with preschool trends. "

Fall Enrollment
Q: How did fall enrollment perform versus expectations?
A: Full service enrollment in the fall met expectations, exhibiting seasonal normalization consistent with historical patterns. "

Middle Cohort
Q: Has middle cohort enrollment growth changed during the season?
A: Growth in the middle occupancy cohort has been steady with modest, mid-single digit increases despite typical seasonal deceleration. " "

Bottom Cohort
Q: What challenges affect low occupancy centers?
A: Centers under 40% occupancy face varied operational challenges without a uniform pattern, and each is addressed on an individual basis. "

Care Utilization
Q: Do you track backup care usage percentages?
A: Instead of strict day-to-day usage metrics, management focuses on overall robust engagement with the benefit. "

Self-Sourced Care
Q: Did self-sourced care and hurricanes impact enrollments?
A: The effect was minimal overall; only one center in North Carolina experienced a temporary closure, with no lasting impact on enrollments. "