KinderCare Learning Companies (KLC) Registration Filing summary

Company overview and business model

• Operates the largest private early childhood education (ECE) provider in the U.S. by center capacity, with over 1,500 centers and 900 before- and after-school sites in 40 states and D.C.

• Serves children ages six weeks to 12 years, offering community-based, employer-sponsored, and premium programs under multiple brands.

• Focuses on educational excellence, employee engagement, health and safety, and operational growth as core pillars.

• Proprietary curriculum and high accreditation rates (>80% of centers) differentiate offerings; strong emphasis on inclusion and access for all socioeconomic backgrounds.

Financial performance and metrics

• Fiscal 2023 revenue: $2.51 billion; net income: $102.6 million; Adjusted EBITDA: $266.4 million.

• Six months ended June 29, 2024: revenue $1.34 billion; net income $26.8 million; Adjusted EBITDA $160.8 million.

• Same-center revenue grew at an 8.6% CAGR from 2018 to 2023; 2023 same-center occupancy was 69%.

• Cost of services increased 28.1% in 2023, driven by higher personnel costs, enrollment, and reduced COVID-19 stimulus.

• As of June 29, 2024, cash and cash equivalents: $95.7 million; long-term debt: $1.49 billion.

Use of proceeds and capital allocation

• Net proceeds of ~$555.7 million (at $25/share midpoint) will be used to repay $548.4 million of First Lien Term Loan Facility debt and pay $7.3 million in expenses.

• If underwriters exercise their option in full, proceeds increase to $640.5 million, all for debt repayment.

• No current plans to pay dividends; future earnings expected to be retained for growth and debt service.