As a result, the Portland-based national player is reporting this week a fiscal third quarter profit of $5.5 million or 57 cents a share, a slight drop from the same quarter of 2000 on an 8.5% increase in net revenues to $168 million. The news sent KinderCare's stock price up to a 52-week high of $24.50 Thursday, a price that remained unchanged in early Friday trading.

The company says occupancy declined 1.5 percentage points to 66.4% from 67.9% in the same period last year due partially to the new centers, which open with lower occupancy than mature centers, and lower number of children in some of the older centers. Over the past three months, KinderCare acquired two centers located in the Chicago area of Illinois and an Ohio-based regional chain comprised of 13 centers.

The newly opened and acquired centers contributed additional net revenues in the third quarter of fiscal 2001 of $4.2 million, while the 43 closed stores reduced net revenues by $3.4 million in the third quarter. As of last week, KinderCare and its subsidiaries operated a total of 1,242 early childhood education and care centers in 39 states, employing more than 28,000 people.

Through the first three quarters (ended March 9), profits were $8.1 million compared to $12.1 million in the same period last year. The $3.1 million decline comes despite a 6.7% hike in average tuition due to the opening and closing of centers, acquisitions and the decision to convert from passenger vans to buses.