Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Principal Market
Our common stock is listed on the NYSE under the ticker symbol “BFAM”.
As of February 14, 2022, there were 22 holders of record of our common stock.
Dividend Policy
There were no cash dividends paid on our common stock during the past two fiscal years. Our board of directors does not currently intend to pay regular dividends on our common stock. However, we expect to reevaluate our dividend policy on a regular basis and may, subject to compliance with the covenants contained in our senior secured credit facilities and other considerations, determine to pay dividends in the future.
Issuer Purchases of Equity Securities
The table below sets forth information regarding purchases of our common stock during the three months ended December 31, 2021:
Period Total Number of Shares Purchased
(a)
Average Price Paid per Share
(b)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)
(c)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (In thousands) (1)
(d)
October 1, 2021 - October 31, 2021 15,104 $ 146.35 15,104 $ 88,332
November 1, 2021 - November 30, 2021 (2) (3)
223,466 $ 125.86 214,392 $ 61,022
December 1, 2021 - December 31, 2021 658,746 $ 121.74 658,746 $ 380,593
897,316 888,242
(1) The board of directors of the Company authorized a share repurchase program of up to $400 million of the Company’s outstanding common stock effective December 16, 2021. The share repurchase program has no expiration date. The December 2021 repurchase program replaced the prior share repurchase program of up to $300 million effective June 2018, of which approximately $0.2 million remained available thereunder. The June 2018 repurchase program had no expiration date. All repurchased shares have been retired.
(2) During the month of November 2021, we retired a total of 1,574 shares that had been issued pursuant to restricted stock award agreements in connection with the payment of tax withholding obligations arising as a result of the vesting of such restricted stock awards. The shares were valued using the transaction date and closing stock price for purposes of such tax withholdings. Shares retired in connection with the payment of tax withholding obligations are not included in, and are not counted against, our share repurchase authorization.
(3) During the month of November 2021, we repurchased 7,500 shares of unvested restricted stock awards that were subject to forfeiture resulting from the grantee’s termination of service with us for an aggregate $0.6 million pursuant to the restricted stock award agreement. The purchase price was equal to the purchase price paid by the grantee on the date of grant as provided in the restricted stock award agreement.
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Equity Compensation Plans
The following table provides information as of December 31, 2021 with respect to shares of our common stock that may be issued under existing equity compensation plans.
Plan Category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (1)
(a)
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (1)
(b)
Number of Securities Remaining Available For Future Issuance under Equity Compensation Plans (excluding securities reflected in column (a))
(c)
Equity compensation plans approved by security holders 2,471,941 $ 112.47 1,996,035
Equity compensation plans not approved by security holders — — —
Total 2,471,941 $ 112.47 1,996,035
(1) The number of securities includes 60,793 shares that may be issued upon the settlement of restricted stock units and performance stock units. The restricted stock units and performance stock units are excluded from the weighted average exercise price calculation.
Performance Graph
The following performance graph and related information shall not be deemed to be “ soliciting material ” or to be “ filed ” with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference into such filing.
The following graph compares the total return to stockholders of our common stock for the past five years through December 31, 2021, relative to the total return of the following:
• the New York Stock Exchange Composite Index; and
• the Russell Midcap Growth Index. Bright Horizons selected an index as a comparable as there is a lack of public company comparables in our industry, with most of our peers operating as private companies or divisions of larger diversified companies, and no widely recognized published industry indices. We determined that an equity index for companies with similar market capitalization and growth objectives would provide for an appropriate peer group and we believe the Russell Midcap Growth Index provides the best means of comparison to the Company. The Russell Midcap Growth Index is a subset of the Russell 1000 Index and is composed of select companies from the 800 smallest companies of the Russell 1000 Index (Russell Midcap Index) that display higher price-to-book ratios and higher forecasted growth values.
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The graph assumes that $100 was invested in our common stock, and in the indices noted above, and that all dividends, if any, were reinvested. No dividends have been declared or paid on our common stock. The stock price performance shown in the graph is not necessarily indicative of future performance.
Years ended December 31,
2016 2017 2018 2019 2020 2021
Bright Horizons Family Solutions Inc. $ 100.00 $ 134.25 $ 159.17 $ 214.64 $ 247.06 $ 179.78
NYSE Composite Index $ 100.00 $ 118.90 $ 108.45 $ 136.36 $ 145.89 $ 176.06
Russell Midcap Growth Index $ 100.00 $ 125.27 $ 119.32 $ 161.64 $ 219.16 $ 247.05
Note: Underlying data provided by Zacks Investment Research, Inc.
Item 6. [Reserved]