By: Dylan Sikes - AllPennyStocks.com News

Friday, September 12, 2014

Employment in Canada has been trending sideways, with the latest data from Statistics Canada this month showing little change from September to August. Compared to a year earlier, employment was up by 81,000, or 0.5 percent, mostly because of part-time workers being added. Alberta didn’t have a strong month during August, shedding 13,000 jobs, but the province has been a standout across the last year, adding 38,000 jobs from August 2013, despite the month-over-month decline. The yearly advance of 1.7 percent was the fastest pace of any province. Citing the Alberta Economic Outlook Q2 2014 in a corporate presentation, BrightPath Early Learning Inc. (TSX-Venture:BPE) notes that Alberta is expected to lead all provinces with real gross domestic product expansion of 3.8 percent this year and that housing starts were up 11 percent year-over-year as many young families migrate to Alberta.

BrightPath owns 52 child care and early education centers across major markets in Canada. The company has put a focus on Alberta as a driver for corporate growth based upon the aforementioned statistics that should command a greater need for their services. The company says that there are regulated centers (full- or part-time) centers for only 20 percent of children aged 0 – 5 years old, creating an opportunity for expansion.

Along with plans to expand its footprint in Western Canada, BrightPath boosted its prices under the mantra that people are willing to “pay more to get more.” This, coupled with restructuring efforts, improved revenue and margins in the second quarter. Quarterly revenue hit a record $13.2 million, up 10.4 percent from Q2 2013, while center margin rose 90 basis points to 27.8 percent.

On Friday, BrightPath announced a new development in Edmonton, Alberta. The center, located in the community of Windermere South, is the fourth new Alberta location for the company this year. The primary trade area has in excess of 25,000 residents, with housing start projections indicating the population to reach 75,000 by 2019. BrightPath says there are currently fewer than 300 licensed child care spaces currently in the area to meet demand.

The 13,500 square foot center, which is planned to be opened next year, will be funded through BrightPath’s available cash and credit facility. The Windermere center will be comprised of approximately 190 licensed child care spaces in a new 160,000 square foot shopping center anchored by a large grocery retailer and a major pharmacy.

“Similar to the operational and financial success of BrightPath's previous new development investments, this opportunity is expected to significantly enhance the Company's profitability and cash flow,” the company said in a statement today.

Bay Street seems to appreciate the news on Friday, with shares rising 3 cents to 42 cents, albeit on only 60,500 in volume. The stock has been in a steady upward channel since last September. Technical traders may take note that a triangle pattern formed as trading volatility has tightened since the stock hit a May low of 30 cents before a sharp rise to 50 cents. There is some static technical resistance at 44 cents that ties in with the top trendline of the pattern. Proper due diligence is, as always, encouraged.

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