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Miscellaneous - 190 HILLSIDE ROAD 4/30/2018 (2)
190 HILLSIDE ROAD 1 210/098.C-0028-0000.0 I 5 � r ' .ol'r '• -1 Y`yp �M/ •� '� Q� .p• .J oob ,�b _ + a21 :?Q]S-nI f d Yom 3,-4UD-a'3QIVl�' Of 40RTk O 3d •_ Ot � D ,S3^CNUS�� TOWN OF NORTH ANDOVER MASSACHUSETTS BOARD OF APPEALS v 1�� Date:�� y� I y&v Dear Applicant: Enclosed is a copy of the legal notice for your application before '� v the Board of Appeals . ._ Kindly submit $ 7' �t�� -- for the following: Filing Fee $ Postage $ - Your check must be made payable to the Town of North Andover and may be sent to my attention at the Town Office Building, 120 Main (J) Street , North Andover , Mass . 01845. Sincerely, i BOARD OF APPEALS T" Audrey + Taylor, Clerk c 4- le- NO � X3'2• cA��1r••�g�, i F- A►RILT" b '�S:•�1855 :� '"9s�gctiug��` TOWN OF NORTH ANDOVER MASSACHUSETTS BOARD OF APPEALS NOTICE March.21- .19 88 Notice is hereby given that the Board of Appeals will give a hearing at the Town Building,North Andover, on.Tuesday . . . . . evening ... , the .12th day of April 19. $8 , at. .:. . clock, to all parties interested in the appeal of Finder-Care Corporation requesting ai# A 46A tof- .Sec -ion_ 4 .of the Zoning Parag. 4.121�19) By Law so as to permit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . theestahlishment. o.f .a.day. care center for 139 children . . . . . . . . . . . . . . . . . . . . . . . . . . Legal Notice TOWN OF NORTH ANDOVER MASSACHUSETTS ' o BOARD OF APPEALS NOTICE Lside ` f NORrN 1 March 21,1988 March 21,1988 ;. Notice is hereby given that. ►ard of y Notice is hereby given that ► A „ / the Board of Appeals will give the Board of Appeals will give � >~ , a hearing at the Town Se�ic ;o _-,�+ a 'hearing at the Town Building, North.Andgver, on <�:aa �' Building, North Andover, on .s,� °+•,,,•�"tf' Tuesday evening the 12th da 's4 *.°^ t<' Tuesday evening the 12th day Ss��HusE Y 9 Y SSACHusE of April,at 7:30 o'clock,to all of April,at 7:30 o'clock,to all on M� i parties interested in the appeal parties interested in the appeal of Kinder-Care Corporation requesting a Special Permit of of Kinder-Care Corporation requesting a Special Permit of Section 4 Parag.4.121 (19)of the Zoning By Law so as to Section 4 Parag.4.121 (19)of the Zoning By Law so as to permit the establishment of a day care center for 139 permit the establishment of ;,y• re center for 139 children on the premises located a illside Rd.and Turn- children on the premises locatillside Rd.and Turn- pike St. pike St. By Oryr of the Board of Appeals Byr of the Board of Appeals Frank Serio,Jr.,Chairman Frank Serio,Jr.,Chairman Publish in North Andover Citizen March 24 and March 31, Publish in North Andover Citizen March 24 and March 31, 1988 53200-1 ,1988 53200-1 KINDER-CARE LEARNING CbSIT£RS;INC. CHECK MONTGOMERY,ALAB/lMA MOT .r .""y��'Y', y( "+"�"+, F NO '00� K n4 Can P� iw i'• 001413 :DATE: ::::,DESCRIPTION GROSS DISCOUNT : : NET Oy. �6 88061 . St: 70.4 0 TOTAL , 704 ?04:. i i � _rt"' _. �� �,+ ,• � I� 1R IM f ' � w>V i•i � . ALI North-Andover Citizen, Thursday, April 21, 1988 /A7 Day care plans: Rt■ site taIK continues; Reed withdraws pointed out that Kind er-Care's play - area would come only 30 ft. from his By Michael Schoenwald Senior Reporter . ., back deck. Jim Lussier, regional manager for Kinder-Care, said that at The second efforts of a national day - '` most 30 children at a time would play in care corporation to construct a facility in North Andover were met with op- the area. ® '"30 kids who will make just as much position by a group of neighbors and noise as 130," Casey said. one town official during a meeting of Michael Schena, 102 Hillside Rd.,op- the Zoning Board of Appeals last Tues- posed the project from a safety stand- day, April 12. Representatives of Kinder-Care point. Corp., It's a dangerous situation," he said or p. Waltham, asked the ZBA for the of the Hillside Rd. intersection. required special permit to construct a "You're undoubtedly going to end up 6,620 sq. ft. building to accommodate with somebody getting killed there, 133 children at the corner of Hillside especially people with children." Rd. and Rt. 114. By a close 3-2 vote,the Shirley Howe, 5 Hillside Rd., sug- ZBA voted to continue the Kinder-Care gested the traffic from a day care center hearing until Tuesday, May 10. would present a dangerous situation in Kinder-Care had been denied by they , neighborhood with no sidewalks. ZBA in September, 1986, in the com- fN Kinder-Care's attorney, David Bain, pany's attempt to build a center on a - asked the ZBA to give the developers I i iiiM tri rlli�h l�l�l� III smaller piece of land further down Rt. "' " " lli�kVl�4�1 i° conditional approval upon solving the 114 towards Middleton. The new pro- traffic problems at the site. posal included a larger lot with two ac- The ZBA refused, voting 3-2 to con- cess points on Hillside Rd. instead of tinue the hearing until Tuesday, May Rt. 114. 10. Chair Frank Serio,member William �z Sullivan and As Member Ray- Traffic engineer Paul Laporius said , . " mond Vivenzio voted for the conti- that the results of a traffic study for the v... - " nuance, while Nickerson and member project showed an estimated 500 vehicle CONTROVERSIAL FACILITY— The proposed day care facility of Kinder-Car Walter Soule voted in opposition. trips,or 250 cars in the morning and 250 ' Corp., Waltham, would replace this building at the corner of Hillside Rd. and Rf. "I don't want to get involved in plan- at night, generated by the center per 114,shown above.The center has met with opposition from members of the Zoning ning," Soule said, preferring that the day. He said that the developers could Board of Appeals, Police Chief Richard Stanley and potential neighbors of the ZBA deny the plan or accept a improve operating conditions at the facility. withdrawal from Kinder-Care. Hillside Rd. intersection with a Citizen photo by Michael Schoen . In other business,the ZBA accepted "minimum" of placing a traffic officer redesign the building to use only one ac- the withdrawal without prejudice of there at Kinder-Care's expense. tragedy." Police Chief Richard Stanley, Joe D'Angelo, project engineer for cess point further up Hillside Rd. plans for a new day care center at 2n- however, in a April 12 letter to the the State DPW,said the entrance plann- ZBA member Augustine Nickerson Pleasant St. because of inadequRtoe�rt ZBA, said he would be "shirking my ed by Kinder-CareHillside the Rd novas ction had eased s Ovide access across he Kinder- Reed, Forest urprise that the developers! formation. TSt.,he proponent, othentCitizen of duties in not strongly opposing this pro- of Rt. 114 and osition from neighbors ject," and predicted the proposed close" to that intersection. Robert Care property to a back undeveloped and potential amajor safety concern by the center's location as "the strong Picarelli, real estate manager for likelihood of being the scene of a Kinder-Care, said the company could Abuttet. r John Casey, 84 Innis St., North Andover Police Department. Glaucoma is a disease in which elevated pressure within the eye causes EYE damage to the optic nerve. There are two basic types of glaucoma: A) The open angle variety, where the eye is anatomically normal but fluid builds up either because of increased production or decreased ability to'� flow out of the drainage system (the mechanism for this is poorly PHYSICIAN-S understood at present), B) The narrow angle variety, where the eye is anatomically abnormal and the fluid drainage structures are crowded in- to a space that is too small causing fluid to.:back up and further com- press the drainage structures. In this type of glaucoma, eye pressures wuminoton Regional can skyrocket to very high levels and, often at night one can experience such symptoms as eye pain, blurred vision and halos around lights. ■ When eye pressure builds up, it causes damage at the point of least- Eye, Associates , resistance in the eye which is the optic nerve. This in turn causes- damage to the nerve cells which make up the optic nerve and can lead to development of visual field defects in the patient: One rarely goes blind SPECIALISTS IN DISEASES & SURGERY OF THE from this disease but rather as the disease progresses, one develops a "tunnel vision" where things appear normal centrally but are absent EYE from view peripherally. Thus; a person often may not realize he or she has glaucoma because the central visual field is spared until the very DAVID S. GENDELMAN M.D.- PHILLIP M. GENDELMAN M.D- end. However, the condition can be detected in comprehensive eye ex ROBIN F. STEINBERG M.D.- DEBORAH E.ZUCKERMAN M.D. ams. MARK W. O'DONOGHUE O.D. While most people with glaucoma have eye pressures which are SPECIALISTS IN elevated above normal (i.e. greater than 20 mm- of mercury), some peo� RETINA VITREOUS SURGERY• CATARACTS pie with "normal" eye pressure cannot withstand even that degree of AND INTRAOCULAR IMPLANTS • GLAUCOMA pressure to their optic nerves often because of pre-existing optic nerve PEDIATRIC OPHTHALMOLOGY disease. Thus, a normal eye pressure does not rule out glaucoma and a NEURO OPHTHALMOLOGY• EMERGENCY CARE careful dialated fundus exam by an ophthalmologist must always be per- WEEKDAYS:9 AM TO 9 PM•SATURDAYS:9 AM TO 6 PM formed to study the optic nerves. SUNDAYS: 12 PM TO 5 PM People who should be examined for glaucoma are 1) Anyone experien- cing eye pain, halos around lights and blurred vision especially in the dark, 2) Anyone with a family history of glaucoma (as the disease tends MEDICARE& MEDICAID ASSIGNMENT ACCEPTED to run in families) and 3) Anyone over 30 years old (as the disease BAYSTATE AND MULTI GROUP PROVIDER becomes more prevalent in older age groups). Treatment consists of eyedrops, laser procedures and surgery (which 657-3910 is a last resort) depending on the type of glaucoma and the stage of its SALEM STREET, WILMINGTON progress. The best treatment, though, is early detection. The earlier the S ALEM T EST. BURLINGTON disease is discovered, the earlier it can be treated and controlled before optic nerve damage develops. A comprehensive eye exam can often detect early glaucoma that would otherwise get missed. A8/Thursday, April 21, 1988, North Andover Citizen tion, with New England Telephone Woman Voters has been studying the Local officials like 911 emergency plan picking up the anticipated $25 to $40 idea and supports an enhanced. 911 Local public safety officials are sup- or fire station when the emergency million cost. system proposed by the state bill. porting a plan to implement the na- number rings. After installation, customers would The local league would support a tional 911 emergency number statewide Fire Chief William Dolan has been pay up to a 50 cent monthly charge for temporary local 911 number during the this year. waiting for the public to accept this idea the service, according to the bill. interim before a statewide number Panic stricken people will only have for years. It would be up to New England could start up if the costs were not too to remember the three digits to summon "It addresses a lot of the concerns Telephone to figure out how to cope high. help no matter where they are or what that we've been telling people about for with the different prefixes that serve one Dolan anticipated that smooth years- about immediate notification, town, like North Andover. passage and establishment of a state 911 community they are in. That's why North Andover's public the need to remember those phone The North Andover League of number would take.at least two years.� safety officials support Gov. Michael numbers and communication problems Dukakis's bill to establish an enhanced with similar sounding street names," he 911 emergency number that can be call- said. . t - ed for help. "In their excitement, somebody may "I've been a proponent of it (an forget to say Brentwood Avenue or : emergency number) since I became a Brentwood Circle," Dolan said. Save yourself a trip police officer," said North Andover "Even if you can't understand the caller, you still know where they are Police Chief Richard Stanley. , Dukakis introduced the bill into the calling from and where to send ap= i and i f state Legislature last Thursday, paratus," he added. �. February 18. Dolan had requested about five years Order a subscription to.4-GITIZePt at special savings over our newsstand rates Part of the system would provide a ago a local 911 number but it would fand get the additional convenience of home delivery. sophisticated computer program that have cost too much. �'. would flash the caller's address on a This bill, as proposed by Dukakis, Save $4.80 () computer terminal screen at the police would give towns and cities free installa- $16.00 $20.80 j Subscription VS, Newsstand i 1 (31a for 52 weeks) (40t for 52 weeks) NORTH ANDOVER To start home delivery next week call 685-5128 BUILDING & HARDWARE .1 Or mail the form below: 105 Massachusetts Ave., North Andover Name Phone 685-1301 Mon.-Fri. 7:30-6:00; Sat. 8-5 I.Address April 21-30 Street Town . State Zip i 101 O Payment of $ is enclosed. Any size deck 144 Sq. or better receive a FREE SCREW GUN WITH THIS AD. i o Please btu me. 9 .°e value PRESSURE\� GAZEBOS i Mail to: The Citizen, 134 Main St., North Andover, MA 01845 TREATED 40TVen LUMBER. \ 2" x 4" x e' 10 "Full of News You Can't Find Every Day" 1349 #1&2 2"x 8"x 8'....'6.42 4"x 4"x 8'...'6.32 .40 CCA Pressure Treatment for in-ground use. Weatherproof, won't rot or decay. 8. 10 12 14 16 9' Hampshire 2x6 3.49 6.42 8.55 0 0 1.95 5.40 6.75 8.°° $135000 x8 9.,2 12. 9 14.25 1 .3 Fre Delive and Set U A 1 11,25 15. 5 17.84 �20. _ _ 1 Pt. necking 12 1 5 Lofts Lawn Food /4x6 5.84 7.30 87,60 10.22 11.6 28-3-8 Are you having a party? SOLID COLOR $999Bag Plan your special occasion with us. We $12-.99 , _5000 sq. ft. cvg. per bag - give our customers fast, courteous service. SEM) TRANSPARENT Blue Sent 10-3-6 Turf Green 511 .99 50% ORGANIC All meat sliced to order. In_Stock Only --12. 9 Bag cvg. 5000 sq_tt___ Fresh fruits • Fresh salad bar $14.38 atherA� Milorganite 6-2-0 ( - RMdY mix *,;,,' r� C _ GAL Cann :�„_,,,. / .9 Bag CVG 2500 sq. ft. WeatherA„ Latex Hose ____________________ Party Platter's Our Specialty Paint resists mildew,blistering, Blue Seal Special Blend fading.High hiding.For wood, �® F IAO-1 stucco and concrete.Dries fast. House N' water cleanup.Gives all-weather �� �.n����' Grass Seed 529 2 Ib. Bag protection. WX _ _ 800 sq. ft. CVG Top quality Sensible prices always Galv. Deck Screws 309' ' Storage Sheds 6' x 8' ESH i $74900 W 4," 6Free deliv. & set up X � OT II ', 61110 ___ ,� P.Y. Lattice X P.T. Landscape �{ The Area's Largest Delicatessr 8' Timbers Over 200 Items to Choose F- $10.99 0 Stadium Plaza 160 Winthrop Ave., Lawn P.T. Stringers 3-Step trio each 2X8 - $9.19 Open 8:00 AM-9:00 PM Mon. thru Sat.; 8:00 AM 4-step $9.66 each US - '16.99 Across from Showcase Cinema T' Owned and operated by Tom SUNDAY EAGLE-TRIBUNE • April 17, 1988***C9 Traffic problems feared ra Neighbors daycare center p By Hilde Hartnett tended a public hearing on the pro- neighborhood." Eagle-Tribune Writer posal last week, Board of Appeals A traffic engineer for the state NORTH ANDOVER—A member William Sullivan said.The Department of Public Works rec- p ro a p hearing was continued until May ommended that driveways leading /sal for a day care center on Route 10 into the day care center not be 114 and Hillside Road has residents "We have enough problems with placed close to Route 114, Sullivan concerned about increased traffic the traffic as it is,"said Joanne Ca- said. and noise in their neighborhood. sey, whose home at 84 Innis Road Traffic problems have plagued KinderCare Corp., denied a spe- would be beside the center. Devel- the neighborhood for several years, cial permit by the Zoning Board of opers have already said children residents said. Appeals last year for a project on will be playing outside throughout The intersection of Hillside the same site,has requested anoth- the day,she said. It would be "like Road and Route 114 is "a potential er special permit to build a day having a party all day long," Ms. disaster area," Michael Schena of care center for 139 children. Casey said. 102 Hillside Road said. Schena said Day care centers are allowed in "I don't think that intersection there were several fatalities at the the neighborhood with a special can handle any more traffic,"Pau- intersection in the past,causing the permit under town zoning laws. la Hannay of 45 Innis St. said. "I continuation of the road beyond Between 50 and 65 residents at- think it will be detrimental to the Route 114 to be closed. C10***SUNDAY EAGLE-TRIBUNE • April 17,1988 Will `1812 Overture' work? Seagullsomb airport ,b drop o'ysters on runways By Larry Rosenthal up by the vortex created by the pro- pellers,Pealer said. GROTON,Conn. (AP)—Traffic Oyster shells were not a big is down at this port city's pictur- problem until Hurricane Gloria esque airport, but dive-bombing `. struck in 1985, stirring up the seagulls are keeping the skies ;M oyster beds in the waters that sur- abuzz and the facility's manager round the airport on three sides, busy as the birds shell the runways `f to "- a Pealer said. daily with oysters. Many of the oysters are now ap- The seagulls use the runways parently exposed during low tides. and taxiways at Groton-New Lon- <" "The seagulls wait for the tides to don Air ort to crack the o sters break them loose,"Pealer said PY n.,,;, 0— +;.,,o +H.,+ +h- � . �^ 102 Hillside Rd. No. Andover, MA. April 13, 1988 Kinder-Care Learning Centers, Inc. 2400 Presidents Drive Montgomery, Alabama 36116 Dear Mr. Grassgreen: You brochure says, " . . . . we believe it' s never too early to begin thinking about the future. " This letter comes to you because I am concerned about my future and the future of my neighbors and town. Your company has under consideration the building of a Kinder-Care facility in No. Andover, Mass. I want you to know that the people of this town realize there is a need for quality child care, however, we take issue with your staff on the placement of this projected facility. I have watched your staff and engineers discuss this proposal at open meetings of our Planning Board and the Board of Appeals and at every meeting the issue of safety on the roadways leading to and from this facility has been the focus of discussion and disagreement. Your staff proposes to place this facility on a highly traveled roadway (Rt. 114) that has been under study by the Department of Public Works of the state of Massachusetts. The state plans to take part of this property to widen the road by two lanes. There is a residential street, Hillside Road, that joins Rt. 114 at this juncture. The citizens of this town and area travel Hillside Road and Rt. 114 everyday. We have seen a phenominal increase of traffic in this area. Three deaths and many accidents have occured on the very corner where your staff proposes to locate. Presently, traffic in this area often backs up along Hillside and Rt. 114 making long delays a frequent occurance. Hillside Road is used almost daily by the Fire and Police department responding to emergencies in this general area. The projected "trips per day" of parents transporting their children to Kinder-Care will further complicate the situation. It is not difficult, for those of us familiar with the area, to predict future accidents. These could very well include your ` projected clients and their children and well of the families living in the area. There are some things that local residents can project that staff from other parts of the country do not fully appreciate. My letter is being sent to you as President of Kinder-Care to let you know that "all is not well in No. Andover, MA" � � � The Mass. Dept of Public Works, the No. Andover Police Department and citizens of this town know that this location can not safely withstand the added burden of traffic. We know that it is not a safe area for children. You state that "Kinder-Care remains a people-oriented community and neighborhood operation. " If this is truly your philosophy then you, as head of Kinder-Care, should make a personal effort to evaluate this site choice. As a matter of fact, I sat next to one of your representatives at one meeting and told him, "You are putting a good thing in a bad place. " His reply to me was, " I agree with you" . This issue should be evaluated closely by you and your ruling board. No. Andover is far from your home office and I realize that it is impossible for you to know the details of every transaction made by your staff but I would appreciate your reconsideration of this site on the issues of safety to your clients; consideration of its negative impact upon the local area, and elimination of future problems for your corporation. There are better and safer locations in our area that would provide "fume free" , safe playground area to the children in your trust and no traffic or safety problems to the community. Sincerely yours, Rita Schena � � � /r DAVID J. BAIN, JR. b ATTORNEY AT LAW 36 LAWRENCE STREET LAWRENCE,MASSACHUSETTS 01840 (617)683-5896 i May 10, 1988 Frank Cireo, Jr. , Chairman North Andover Zoning Board of Appeals 120 Main STreet North Andover, MA 01845 ' I Re: Application of Kinder-Care for Special Permit Dear Mr. Cireo: Please be advised that the undersigned represents Kinder-Care Corp. who, as you know, have an application pending before the Zoning Board of Appeals for a Special Permit to operate a day-care center at the corner of Hillside A-Venue and Route 114. There is one large problem with the site-traffic. My clients are in the process of attempting to resolve this problem with the State and the owner of the land. If this problem is resolvable, more time will have to be devoted by all parties concerned. My clients have instructed me to ask the Board to be allowed to withdraw this petition without prejudice so that a solution to the traffic problem may be fully explored. My clients would be grateful for this con- sideration. If however, the Board feels that it is not able to allow a blanket withdrawal without prejudice, we would request that the petition be held in abeyance until August of 1988. If Kinder-Care has not been able to resolve the traffic problems, the petition is to be dismissed at that point in time. We thank you for whatever consideration you may be able to give in this matter. Very truly yours, David J. in, Jr. , sq. Attorney for Kinder-Care Corp. nmp i Y i ' � _ ., .__ 1 k - -- ---t- - - � --� - - - - -- - - - -- - �-- --- - - -- --- - - - � - - - - • - - --• - 1 - - - - - -- - - -- - - - ---- - - - - - - - i + - - - - - I G� PAUL E. DEVIN 311 CHESTNUT STREET t NORTH ANDOVER, MASSACHUSETTS 01845 pe z_J'rf 7(1 C� 1' a' 303 Chestnut Street North Andover, Mass. 01845 April 6, 1988 Board of Appeals North Andover, Mass. Dear Sirs: In reference to the request for a Special Permit for Kinder-Care Corporation at the corner of Hillside Road and Turnpike Street for a day care center, please be advised of the following concerns. Of paramount importance is: Safety of children getting on and off school buses at times of high traffic flow on. Hillside Road. Closerp oximity to the intersection- of Hillside and Route 114. Very high traffic flow on Rt'. 114 at all hours and a very high accident rate. Back-up of vehicles trying to enter Rt. 114 from Hillside St , will extend beyond exit and entrance to proposed: Kinder-Care facility, causing delay and traffic congestion. Vehicular traffic on Hillside Road from 6 A.M. to 9A.M. and 4P.P11. to 7 P.M. on weekdays averages between 460 to 490 vehicles per hour. We consider this corner a dangerous location for use as a Childrens Day Care Center. Thankyou for your attention. Sincerely: Ph' lip A. Busby �� CC, ndfts1L'�c Marie W. Busby 17 William H. Kehrig 71 Quail Run North Andover, MA 01845 �C (617) 683-3779 April 5, 1988 "Zoning Board North Andover Town Hall North Andover, MA 01845 Gentlemen: I am writing to you to register my concern over the proposed Kinder-Care facility being considered for construction on the corner of Hillside Rd. and Turnpike St . My concern is clearly not about Kinder-Care, as I understand it is a very professional organization. Rather, it is about the traffic and overall safety factors that would result from such an addition being placed in a residential area. The traffic tnat already flows from the Common, down Chestnut St. to Hillside ttd. and onto Turnpike St. (and return) is already staggering. Tile increase over the past two years has been remarkable. A facility like Kinder-Care that would add some 800 cars(135 cars times 3 pick and 3 drop offs per day) would clearly over tax this area' s ability to handle that traffic load, and present a significant safety problem. Based on these factors , I'm asking you to reconsider this proposal, and, if truly necessary to the town, to have it moved to an area that can more appropriately handle the traffic requirements . Sincerely, dilli.am H. Kehrig CA 76` x. / 2ZG- ,yam vz . //6/ al lKe, C C41A j J��� �1 ,. � and Al/J7�i a,,) Le/ (C`,C.� 171 o /' L ��cC<u, r�YLf c S A Illll KinderCare Kinder-Care Learning Centers, Inc. •2400 Presidents Drive•P.O.Box 2151 •Montgomery,Alabama 36197•(205)277-5090 April 22 , 1988 Ms. Rita Schena 102 Hillside Rd. No. Andover, MA 01845 Re: North Andover, MA Dear Ms. Schena: Thank you for your letter of April 13 expressing your concerns. We have come to the same conclusions and have decided to look elsewhere for a site for our child-care facility. We again thank you for your concern and for the manner in which it was expressed. Sincer , onard C. Kuhn ice President of Development cc: Bob Acker Jim Lussier Bob Piccarelli LCK/ey "For the Pre-school time of their lives" cl� , 7/ -00, r -.-..r+..+-���r-�r ti'..rv-✓.v.-..- r+✓�..'._ _. .. -. .rte-.--`..�..-..,......r-�__._, LAWRENCE EAGLE-TRIBUNE • WEDNESDAY,MARCH 30,1988 *19 Day care plan for workers considered By Hilde Hartnett By offering day care as a fringe benefit, also shown that "kids need to learn more Eagle-Tribune Writer "we could bring people back into the work about parenting," Donahue said, and having NORTH ANDOVER — Projections of a force,"Donahue said. a day care on school grounds would"link old- teacher shortage in the 1990's are prompting The school system employs about 320 peo- er kids with our younger kids." the School Committee to consider starting a ple,about 200 of them teachers,said Superin- A master plan for school buildings that in day care center for use by school employees. tendent George Blaisdell. Most people who cludes two new schools as well and renova- Although the center could not be formed would need day care services would be teach- tions and additions to existing schools will be until other more pressing needs of the school ers,he said,but the"vast majority would not voted on at Town Meeting May 2. The plan system were met, "in the long term, its a require such services." does not include space for day care, said problem that's not going to go away," said School Committee Chairman Diane Batal. School Committee member Brian Donahue. The cost of running a day care has not yet The idea for day care for employees was been computed because there is no space for Although it would be "wonderful" to pro- first brought up by Donahue two years ago one now,he said.But by having one on school vide day care as a way of attracting teachers, such as the school nurse, "there are so many other priorities," she when a shortage of substitute teachers caused grounds, services school officials to consider ways to attract secretaries and other needs would be pro- said. "I think we are a long, long way away teachers. Nided, Donahue said. National studies have from that." OFFICES OF: o;,�,�+°m Town Of 120 Main Street :•APPEALS ": r3�`• ' : NORTH ANDOVER North Andover, BUILDING ;,' ; :e ^'g. Massachusetts 01845 CONSERVATION IAVISI >N OF (617)685-4775 HEALTH PLANNING PLANNING & COMMUNI'T'Y DEVELOPMENT KAItl�.N 1 I.1), NI'.I.SON, 1)IRGC"I-OR TO: Board of Appeals FROM: Scott A . StocKinQ ; _.,renne1 DATE: March 300 19% RE : Special Pprmit Kinder-care Day Care `enter- Staff has the following concerns regarding this proposal : ( 1 ) Traffic safety ; Current traffic levels experienced at the intersect inn of Fill lside Road and Route 114 are very heavy especially during rush hours . A detailed Traffic Impact Study nerds to be filed with this application as outlined in my January 13, 1988 letter to Mr . Donald E . Morin of I' ipder c ai e . ( Letter is attached ) ( 2 ) Deka.iJed Si. e F1ar aF the proposed development needs to be submi t Lpd with this application for review. (3 ) Commenting fr -m the :.site Plan submitted to the Planning Board for re:.r_ew u"drr their Repetitive Petition Application. staff has the following comments : ( ;a ) The Planning Board did not take a formal action on Qhp r- ef i t inrr for want of jurisdiction. The Bnar d fell that the new application was cmmP 1 a ky l „ different then the one denied two -ears ogo by the Board of Appeals since it incJudrd two nompletely different lots of record . ( h ) N(i diren r access shall be allowed onto Route 114 . ( c ) Access to Hillside Road shall be from a frontage road built to State DPW standards . The internertion of the frontage road to Hillside Rn_ad shall (.;r ln_ated as far up on Hillside Road as uns ihln . The second access point onto Hillside Road should be near the rear property tine . ` ' � s�all be setback 100 ' from the , ighn. ,jay of Rnute 114 . The lavg`'oond area shall be secured by a 360 dpgreP fenre and be placed as far from the rnadmeys as possible , ( f ) A 6 ' hiq!, :So } id wood fence shall be palced along the ` ear r1roperty line to provide screening from adjacp'ii; residen f;ial properties . ( g ) TL,,o ( 2) handicapped parking spaces shall be Provided in the parking lot . (h ) The trash dumpster shall be properly screened . � � ( i > The �v � sting lot lines between lots 1 and 2 shall be remo�ed through a Form A Plan filed with the P |anning Board (Form A Plan on record was � auproved 11 /4 /85> ' ( j ) The epnlicant =hall supply landscaping in the pay- I. jng lot in accordance with Section 8.6 (Uff-Str�et Parking Landscaping ) . If the applicant obtainE a Special Permit for this project , they must submit a Site Plan to the Planning Board as required in Section 8 ' 3 of the Zoning Bylaw. OF NOR THI Town Of OF1=1�;F_S OF: o °�, - 12ct Mein Street AI'I°EA►_sNorth Andover, NORTH ANDOVER 13UII-DING .9 Massachusetts 01845 CONSERVATION QSAOHU9E4 DIVISION OF (617)685-4775 HEALTH PLANNING, PLANNING & COMMUNITY DEVELOPMENT KAREN I I.P. NELSON, LAREC'YOR January 13, 19ee Mr . Donald E. Morin Construction Manager Kindercare 764 Main Street Waltham, MA 02154 Dear Mr . Morin: Thank you for meeting me on January 12th in order to outline your company ' s proposal for the corner of Hillside Road and Route 114 . During that meeting I stated that a letter would be sent to you listing the items required for your presentation to the Board of Appeals. Please be advised that the following materials should be provided at least one ( 1 ) week prior to the Boards meeting date: 1 . A set of final s>, plans lans which meet the requirements stated in Section 8 .3 of the Zoning Bylaw . The same set of plans seen by the Board of Appeals should be reviewed by the Planning Board during the Special Permit hearing for the Site Plan Review. 2 A detailed traffic impact study which includes the current and expected traffic levels on Hillside Road and Route 114 . The study should include, at the minimum the following items of analysis: a. Existing traffic volumes at all access points and nearby affected intersections and/or driveways experienced during peak hours . b . Peak hour traffic generation at full development using accepted standards such as. I . T .E . Trip Generation Manual . c . Projected traffic volumes with project implementation. d . Analysis of safe stopping sight distance for access drive( s) and roadways (see development scenario below) . e. Analysis of traffic impacts with the Proposed development . f. Analysis of left turning traffic conflicts and queing problems. g . Recommendation of mitigating measures. h . Sketch of proposed improvements including ' signs, pavement markings, channelizartion, and traffic control devices. i . Estimated coat of improvements called for in mitigating measures. ' The applicant shall utilize the following development scenario in the traffic impact study: 1 . Traffic generated by a facility serving 140 children and supporting staff. Sincerely, �u7 Scott A. Stocking , AICP, Town Planner SAS: jle NORTH '1 �}�.y ��yw��}��tt p �toR 1 tip Zjafi L► of �Kvrflj ( �nbVYrr to Office of POLICE ' - CHIEF OF POLICE NORTH ANDOVER, MASSACHUSETTS PHONE: 's'I CHUS 683-3168 RICHARD M. STANLEY CHIEF April 12, 1988 i I Mr. Frank Serio, Chairman Board of Appeals Town of North Andover Town Building, Main Street North Andover, Ma. 01845 I REF: Kinder Care Corporation, Hillside & Turnpike Streets (Petition # 125-88 Dear Mr. Serio: I have reviewed the plans for building a child care center at the intersection of Hillside Road and Turnpike Streets . In my opinion this location has a very strong liklihood of being the scene of a tragedy. In my position as Police Chief, being charged with the responsi- bility of public safety in this community, I would be shirking my duties by not strongly opposing this project. The current state of affairs at this location is already considered to be hazardous. With the construction of a child care center on a state highway such as Rte # 114 , the situation will only become worse. No matter what guarantees are expressed to the Board of Appeals, as far as traffic controls, fences or child monitors, I must still express my strong opposition to this location. No person can guarantee me that a child of that age will not wander onto Rte # 114 at some time which will surely end in tragedy. I appreciate the opportunity to express my opinion on this matter, and do hope that you, as a member of the Board of Appeals, will consider this a potential hazard and not allow this application to be granted. If I may be of any further assistance to you please feel free to call. �Sincere;l,,rd MStan Oyy CHIEF OF POLICE OF NORTH qti O �9SSA Cf HUSEj�� TOWN OF NORTH ANDOVER MASSACHUSETTS BOARD OF APPEALS MEMORANDUM TO: Chief Stanley, Police Department FROM: Frank Serio, Chairman, Board of Appeals DATE: April 6, 1988 RE: Kin_ derCar�G� Hillside & Turnpike Streets Petition #: 125-88 The Board of Appeals would appreciate any suggestions or recommendations you have concerning the attached application received by our Board. We will be hearing this petition at our regular meeting on April 12, 1988, and your input on this situation would be a great help in our decision. Thank you in advance for your cooperation. i ' E-NORTH 1 3�o�tt LlO /6'6�OL T,Y NORTH ANDOVER FIRE DEPARTMENT CENTRAL FIRE HEADQUARTERS 124 Main Street �'9ssgcNus�t�y North Andover, Mass. 01845 WILLIAM V. DOLAN Tel. (617) 686-3812 Chief of Department To: Board of Appeals From: Fire Chief Dolan Date: April 6, 1988 I am forwarding comments on the following projects which are scheduled for your meeting on April 12, 1988. rKindercare - Rte 114 & Hi1-1-side Road I have attached a copy of my letter date January 29, 1988 which was sent to Scott Stocking under the special permit process ) regarding this proposed Kindercare.,_. _, Special Permit for Robert Reed I feel there is an inadequate amount of information provided to give your board any recommendations or comments on this plan. More detailed information is needed; particularly how the building will be used for the day care center, the number of children the center will accommodate; this information would be beneficial to US. Robert Diagle - Hodges Street The Fire Department is opposed to granting a special permit re- quested under this application. Chief Dolan "SMOKE DETECTORS SAVE LIVES" NOWT► O� Yao 1 faay �. ti0L NORTH ANDOVER FIRE DEPARTMENT CENTRAL FIRE HEADQUARTERS M1 124 Main Street c►,USNorth Andover, Mass. 01845 WILLIAM V. DOLAN Tel. (617) 686-3812 Chwl ol,Depwinient 1 To: Scott Stocking, Town Planner From: Fire Chief Dolan Re: Special Permit Kindercare Date: January 29, 1988 I have reviewed the plans for this proposed structure and. have visited the site and have the following recommendations: 1. A schedule for the razing of the existing structure must be submitted to the Fire Department. 2. Additional fire hydrants will be needed at the corner of Hillside Road and Rte 114 and at the Hillside Road entrance to the facility. 3. A complete fire alarm and detection systemstem will be required and plans for this system must be submitted to the Fire Prevention Officer for approval. The system must be connected to the Municipal Fire Alarm System. 4. A sprinkler system is strongly recommended for the life safety of occupants of this building. I am requesting that the Planning Board insert as a condition that if future additions are made to the building which would increase the total floor area over 7500 sq. ft. , that the entire building have a sprinkler system installed. 5. A 12 ' gate be provided at the southern end of the fence and that mountable curb be installed in parking areas 1, 2 and 3. This gate and area to be kept servicable year round for the purpose of emergency vehicle access. 6. The entire area opposite the parking spaces be marked', in accordance with the town by-law, as a "Fire Lane" . I intend to be present at the February 4th meeting of your board. William V. Dolan, Fire Chief "SMOKE DETECTORS SAVE LIVES" Cv FLOWAGE, INC. P.O. Box 536 - -166 ed North Andover, MA 01845 (ok (617) 6833163 NOVTCS ERAG V 0 July 16, 1991 Jeff Sullivan Bay Bank/Middlesex 7 North East Executive Park Burlington, MA 01.803 CERTIFIED MAIL NO. P 290 098 7719 Dear Mr. Sullivan: I have been trying to finalize the ;,igreefiient:s between Ttowage, Ine. , and your borrower, Maynard re ii-ding the sewer tie-ill for the day care center on Route 1A'{ il-, idorth Andover, 'Kass. I have written to both Maynard Associates and you at Bay Bank, as well as having made at least fi_fteLn phone calls over tlie past year and a half. Your secretary, Donna, has always been very polite and sympathetic to my many calls, but o,a nejer have returned the calls, nor have you returned the documk.iiti as have been promised. At the present time the day c,,.ire has NO recorded documents allowing the use of our privaic syscem, and as we have the right to discontinue servi(,.i_� ;1c any Unless the sewer access and use, and the companion covenant running with the land, are signed and recorded within twent-'/ (20) days from this notice, W.111 cerminace the sewer connection to the day rare ceiitec. I regret having to take this taction, but your failure to communicate in well over a year le&ves mo no alternative. Yourj_,Lruly, 3 CC Maynard Assoc. 1, North Andover Town Manager North Andover Dept. Public i �o� 67 RECEIVED DANIEL LONG (eceived by Town Clerk: TOWN CLERK NORTH ANDOVER MAR 2I 10 46 TOWN OF NORTH ANDOVER, MASSACHUSETTS BOARD OF APPEALS , APPLICATION FOR RELIEF FROM THE REQUIREMENTS OF THE ZONING ORDINANCE applicant Kinder-Care Corporation .—Address 764 Main Street, Waltham � . Application is hereby made: a ) For a variance from the requirements of Section Paragraph and Table of the Zoning By Laws . b) For a Special Permit under Section 4 Paragraph of the Zoning By Laws . C ) As a Party Aggrieved, for review of a decision made by the Building Inspector or other authority. a ) Premises affected are land and building(s ) numbered Hillside Road and Turnpike Street. b) Premises affected are property with frontage on the North ( ) South ( ) East (x ) West ( ) side of Hillside Road xSt4 and known as No. Hillside Road c ) Premises affected. are in Zoning District R-3 and the premises affected have an area of 52,000 square feet and frontage of 324 feet . i. Ownership a ) Name and address of owner ( if joint ownership, give all names ) : Kmiec Realty Trust, 1001 Turnpike Street Date of Purchase _previous Owner t. b) If applicant is not owner , check his/her .interest in the premises: X _Prospective Purchaser Lesee Other (explain) r . 4 Size of proposed building-. 1071 front ; 5816" feet deep; Height 1 stories; Tfeet-. a ) Approximate date of erection; as soon as .permitted b) Occupancy or use of each floor :Chilcrare facility c ) Type of construction: concrete block Size of existing building:- feet front; feet deep; Height stories; feet . a ) Approximate date of erection: b) Occupancy or use of each floor : c ) Type of construction: fias there been a previous appeal , under zoning, on these premises? no, If so, when? y s 7. Description of relief sought on this petition see Attached sheet 6. Deed recorded in the Registry of Deeds in Book Page Land Court Certificate No. Book Page 1'he principal points upon which I base my application are as follows: (,oust be stated in detail ) y See Attached sheet [ agree to pay the filing fee, advertising in newspaper , and incidental ,_!xpenses* Kinder-Care Corporation �. Signature of Peti lone every application for action by the Board shall be made on a form approved )y the Board. These forms shall be furnished by the Clerk upon request. 'any communication purporting to be an application shall be treated as mere notice of intention to seek relief until such time as it is made on the ifficial application form. . All information called for by the form shall ie furnished by the applicant in the manner therein prescribed. .-*very application shall be submitted with a list of "Parties In Interest" ihich list shall include the petitioner, abutters , owners of land directly )pposite on any public or private street 'or way, and abutters to the ibutter's within three hundred feet ( 300 ' ) of the property line of the )etitioner as they appear on the most recent applicable tax list, ,otwithstanding that the land of any such owner is located in another city >r town, the Planning Board of the city or town, and the Planning Board of :very abutting city or town. 1Every application shall be submitted with an application charge cost in he amount of $25. 00. In addition, the petitioner shall be responsible or any and all costs involved in bringing the petition before the Board. ;uch costs shall include mailing and publication, but are not necessarily ,. imited to .these. :very application shalt be submitted with a plan of land approved by the toard. No petition will be brought before the Board unless said plan has ,een submitted. Copies of the Board' s requirements regarding plans are ,ttached hereto or are available from the Board of Appeals upon request. LIST OF PARTIES IN INTEREST Name Address i T. (use additional sheets if necessary) 7. DESCRIPTION OF RELIEF SOUGHT ON THIS PETITION: Petitioner prays for a special permit described in Section 2.29. 1 of the Zoning By-laws of No. Andover to establish a Daycare Center for 139 children, said special permit being required by Section 4 of the Zoning By-laws 8. THE PRINCIPAL POINTS UPON WHICH I BASE MY APPLICATION ARE AS FOLLOWS: The By-laws of the Town of North Andover permit Childcare facilities in all zones with special permit (Section 4, table uses zoning By-laws of the Town of North Andover) . The Town obviously finds the Centers to be necessary and appropriate uses of land. The site chosen for the location of this Center contains 52,000 square feet. The petitioner intends to construct a one-story building of approximately 6200 square feet to house its facility. The size of the lot; its location and the character of the surrounding area make this site an appropriate location. The land in its present undeveloped state is an eyesore that detracts from the surrounding neighborhood. The proposed use will have a bene- ficial affect upon the neighborhood in that an open,fully maintained parcel of land will be improved by the construction of an attractive facility and the addition of the necessary business. The proposed use will be self-contained upon a more than adequate parcel of land. Neither pedestrian nor vehicular traffic will be affected to any appreciable degree by this proposed use. The develop- ment of this land pursuant to the petitioners plan will not have an adverse affect upon current traffic and certainly will not be a nuisance or serious hazard. The facilities planned by the petitioner are both adequate and appropriate. The building has been tested and modified by the petitioner over its years in the business of Childcare. There are stringent state licensing requirements which the petitioner must satisfy in order to do business. These requirements include,but are not limited to,the size of the building, its location on the lot, the amount of available play area, the materials of which the building is to be constructed, the fire safety procedures, and many other requirements. The facility will provide for the proper operation of the proposed use. Abuttors to Lots 28, 61 Plan 98C Standing in the name of Kmiec Realty Trust Innis Street Street Number John W. & Joanne Casey 84 Innis Street Roy Robert & Elane Houde Jr. 76 Innis Street Peter & Louise L. Aziz 74 Innis Street Hillside Road Angelo E. & Aphrodite E. Noukas 164 Hillside Road Stephen M. & Claire M. Juba 162 Hillside Road Raymond J. & Marcelle Langeuin 150 Hillside Road Edmond R. & Mary D. Becotte 136 Hillside Road William B. & Arline M. Kent 137 Hillside Road Mail to 550 Turnpike Street North Andover, MA Andrew G. & Maxine Vannette 570 Turnpike Street Paul Calire & Theresa Perotta 179 Hillside Road i c N L d Z-)-7 Qx/ L b' Vr G L4� K F:-E �/" Zo IfrILT� E�6E�E� J I L& o-A,Fr. B1G "rdT LGr ry to ALie h U 3o a.Iz�� cv 5 ` -FZ.TrA,L <._,iTE ASA. FAV1 (a vi .,j✓ G+___�4t'a.AC?E;A- &,21v0 -ft t .gip' F.1��E I i s \ ' I �7L� o z _ �� t a G�a �� Kinder-Care �LG-F��t�SE T 5�0 4 0 �Y t \ s �1 •, i Lie.d.�A• tF's I a s c Aj 1 �.� LAB � .L✓E-7-z> :makI�P� �� r� 6E c�a..�•Sr-►Ef of d J A -� {�I �E < rrA crZ(�� f2 15 A.iA I A gam. eK IL5rl Jd=% IZ' 15 I LLo,--j r>E Ya �/ ri 6E�Jgr2 ISA✓A ILAB�E. EXI �U \ i�ILI>� 3D ExIg \ sI ST,� e,>",62e,>",62ahI�E�Nz I cs ca P" /�/ D 1 N•���z��� t c-rE�wc ,o IBJ SIJ-jI of BLS,. II �nf C'rQiL L�E�LE Ib.,,L i .BLE'AT�, OVEQHE;kC>�•-'E`�nLE- C�{2E�, F2� ED r � , , i P,�tE ctu4 v-AvA.I LA BLE' e I�I LL-t-.4 DE- ex15��11 I s e-A�- r -,-Mrc cCa'o b t-T FIST �AT7`� LAMA LI'rV- 1�5 T�oiLLa-rg-5 F�oPosc� Soi L�TL�/-r Bo(21�Ga LLr�.TfoeJ�S. I L-I!''I I rlA ri-iF- rJ °iM""•" �", u 51 p� gt> # PE' . 1 14 E— �olLArri� F�oPPSEd L1 [.Tio� oG O�AIN46.I� Fw LE: I 'Zo CkiTE: 12-1-0-7 �.W �pN1 i ��,t10OyCR NORM F � A l��ll be filed of �oRo HegNO ev n 'appeal s' ,.er the A w .m (2.0) �pis Notice Of fii`::n; of t' TOW" . � anttl�e Office Of the �gAOA::.o SSACHV Clerk. OVER TOWN OF NORTH AND MASSACHUSETTS gOARI) OF, APPEALS * * ition #125-88 * Pet Kindercare Corp• DECISION 764 Main St. Waltham, Ma. the application * ** 9 1988 Upon of Section 42 May 10 requirements * * * * hearing °n om the shment of a day held a public Special Permit fr establi and Turn- of Appeal as to permit de Road Jr. , The Board Corp. requesting a S ByLaw so at Rill Serio, Care the Zoning premises located Frank of Kinder 4.12119) °f es and voting and Raymond h on the P resent Sullivan ParagraP 139 children members were P Soule, William care center for following Clerk, Walter pike Street. The Nickerson, 24 and March 31, Augustine on March Chairman, Citizen continue North Andover mail• This meeting was Vivenzio. regular the advertised in VOTED, The hearing was were notified by the Board all abutters April 12, 1988' Sullivan, 1988 and as req uested• from the meeting of P sec o WITHOUT PREJUDICE Vivenzio anddWITHD Upon a motion made low the petition to unanimously 1988. Dated this 11th day of Mays Sincerely BOARD OF APPEALS Frank Seri �0, • Chairman /awt A ►a ,t o�.Nurc�ry,�ti RECEIVED Any appeal shall be filed ���o •.�b� 04"IEL LONG within (?0) '�!s a`l[er the :f;`'►�,,,,L,,,� �� TOWN C( F 12K date of fi:ing of this Notice Vii;• 1855 � � NORTH AMUOVER ►SSA•,••g� � ,UY in the Office of the Town ►•,.`.:r 1'' MAY ( 1 12 01 PM Clerk.. TOWN OF NORTH ANDOVER MASSACHUSETTS BOARD Of APPEALS NOTICE OF DECISION KinderCare Corp. Ma 11 1988 764 Main St. Date . . . . . Y . . . : . . . . . . . . . . . . . . . . . Waltham, Ma. 12 -88 Petition No.. . . . �. . . . . . . . . . . . Date of Hearing. .McY. AQ, .1988. . Petition of . . . .Kindercare,Gorp. . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Premises affected . . . . . . . . . RiIlside. Rd•. .aud. Tur..npike. S.treet. . . . . . . . . . . . . . . . . . . . . . . . . . . Special Permit Referring to the above petition for a %RUMMfrom the requirements of the Sec.t.ion 4 . . . . . . . .Baragrap.h.4.12J,(19) .of. .the .Zoning .ByLaw. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . so as to permit . es.tablishment .of. a. daycare. center. fo.r. .139. children. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . After a public hearing given on the above date, the Board of Appeals voted to . .ALLOW. . . . . the .Petitioner. to. WITHDRAW. WITHOUT. . . xx � �XX:k�IX4 �X PREJUDI.CE P9@lX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f4 �' I�4 Signed Frank Serio, Jr. , Chairman . . . . . . . .Augustine. Nicker$pn.,. .C.l,erk. . . . . Walter Soule . . . . . . . . . . . . . . . . . . . . . . . . . William Sullivan Raymdrid-Vivenz io . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . Board.of Appeals IN- a r " r i F 1 v s k � % iffor finder-Care's pre-kindergarten program is Here are a few examples of some of the learning based on the fact that young children learn opportunities from one story,"The Three Bears": best by being actively involved with con- Math concepts Crete materials.Therefore,Discovery Areas counting, comparing sizes of large, medium and are utilized to help children have the appropriate small one-to-one correspondence of which bed experiences to learn the skills and concepts in each chair and bowl of porridge belongs to papa bear, of the developmental areas. New games and mamma bear and baby bear activities are included with every unit for enriching j Discovery Area learning.The Discovery Areas used Visual development f with this age group are Construction,Creative Art, identifying colors and shapes, discriminating be- Homeliving, Library, Manipulatives, Math, Music, tween sizes Science,Sound Table and Woodworking. In addition to the Discovery Area learning, there Language skills k are small group and individual activities to provide discussing the story and characters, increasing further opportunities for the children's social, vocabulary emotional,mental and physical growth.Small group Comprehension skills times focus on language development, listening, and following directions listening and following directions,recalling retails, ' - � v activities. A part of these additional activities is sequencing the story and discussing charactermotives Once Upon a Time. . . Happily Ever After activity pages.The skills and concepts featured in the story Science concepts and Discovery Areas are re-emphasized as each recreating the three bears walk in the woods, child completes a variety of tasks on his or her own activity pages. Every child also receives story sheets making "three bears porridge„ and tasting it hot that pictorially summarize the highlights of each and cold story selection.This enables the child to retell and Creative expression share the stories with family and friends. making bear costumes and character puppets, Upon completion of the story unit, the children dramatizing the story, learning songs, rhymes and take home their activity pages, story pages,'"and fingerplays related.arts and crafts. A letter to the parents from Kinder-Care is a part of the story sheets.The letter fine motor skills tells parents the concepts and ski lh which have .underlining and circling items,folding and cutting E been taught or�revi during the, unit and story pages b lfadfng-the-xbre„ a be se and Included rtiCler deas.which parents might want to furniturer "au,9 1 orrie with their children to reinforce-and Social awareness' Is learning. working and playing together INA ib ENfiALAREAS QIP FOURS QGNITIYE GROSS MOTOR SOCIAL/EMOTIONAL Izotivs and draws,l�slcshapes Climbs equipment provided Relates positively to adults cttlr&ts up ts}Ll IM Catches large ball Plays cooperatively in small groups 1 se5 one t4-one cgerGiponsice to h2' Attempts"to skip Shares toys and materials with others Koows age;and;;addA rr, walks balance beam with aid Takes turns willingly Ctsrrectly name$,3-d Coins Runs lightly on toes Offers to help Discriminates between sizes Hops on one foot for several steps Plays simple games Labels common objects by categories Moves torhythm of music Persists in problem solving Identifies similarities and differences in objects Walks up and down stairs(alternating feet) Chooses own friends 'Identifies body parts such as elbow and knee Walks backward toe/heel joins in songs and group games Color knowledge beyond basic a Shows pride in accomplishments Identifies capital and lower case letters Asks for help when needed Reproduces patterns in sequence FINE MOTOR Follows a series of directions Cuts with scissors Speaks clearly Threads beads or spools ori string Recites short verses,rhymes and songs Pastes and glues appropriately PERSONAL Engages in group discussion Uses a pencil Dresses self Tells a picture story in sequence Traces shapes and patterns Buckles/laces/zips/knots with minor help Recalls details from a story Folds pages in half Lases fork effectively Predicts outcomes in a story Hammers nails into;board Cuts easy foods with a knife Explains feelings/motives/actions of story Completes a puzzle of 9-15 pieces Manages ordinary toileting procedures characters Follows dot-to-dot pattern Washes hands and face Listens to a story for a purpose Prints a few letters and numerals Brushes teeth after meals Increasing attention span to 15-25 minutes Handedness being established Samples new foods Y ° � „ 9LL9E ewegelV IAjawoSjuoVN aniap sluapisaad 00f I 4 , xs aaiva' " alb' • .: s� r faaq agoz alpys-ot saagaeat pup , a . d 'uaapligz),aof,saijinilae 1puoIw:)npa xa,y 1m pall!}sl liat}v:JaA3 Apdde" e uodn az)u0'weagoid ayl •ssa:)oad x , al aqi ur aje is pup swooi s,uajpliga j aqt j!SIA of stua ed } e pup sawoalam aie:)-japul f. ind �r s , ra er-Care's pre-kindergarten educational program,Once Upon A Time...Happily Ever After,offers a full year of challenging J educational activities and exciting learning oppor-tunities designed to meet the developmental h needs of children who will be eligible for kinder- garten the following fall. 4 The program is built around highly motivating and interesting stories from children's literature.Happily Ever After,a reading readiness program published by Addison Wesley,is blended with and enhanced by material developed by-Kinder-Care specifically to encourage the social emotional, physical and mental development of our pre-kindergarten children. Each story forms the basis of two weeks of curriculum. The concepts contained in the stories provide a springboard for learning oppor- tunities which are appropriate for this age group such as counting, learning colors and shapes, identifying letters,increasing visual discrimination, developing language, making comparisons, be- coming socially aware,improving fine motor skills and "using creative expression. 41r jt • 1 a y � 1 r w w w. F. Krno�K � to Let JUndermCare. St at t your child on theivaLh to a� brighter tuture AKinder-care s we know that even the youngest attention and patient support. ° Kinder-Care children scored higher children have their dreams of the future. real- Kinder-Care's unique"Learning Ladder" K�_d. ize them,children need the best possible start. ="_ than the national average. The kind of start we want to give your meets your child's needs—from. At Kinder-Care,every child is off child at Kinder-Care. 6 weeks to 12 years. Everyfour to a winning start! Thischild-size months,there'sa version of our That's why we want your child to detailed grog- The best way to learn goodwill ambas- Whetheryour child is as young as 6 weeks as ressre ort,and sad-Kinderoo spend aweek at Kinder-Care,free.It's p more about Kinder-Care eager as a 5-year-old preschooler or as a conference , isalwaysgood our way of introducing you to our quality high-spirited as a youngster in grade withyourchild's is to visit us.You'll get to foracuddle! child care and learning programs. teacher meet our staff and tour our Dailyfareat school,Kinder-Care provides a learning o center.When you come in be sure to bring Relax.Your child's at Kinder-Care. gKinder-Care. od hot lunch Program that allows for each child's indi- ° m ® along the attached coupon.It entitles your plustwonour- vidual potential,needs,and readiness. :shin snacks. child to a free week at Kinder-Care. Kinder-Care provides children with g The results have been rewarding.In Absorbingpuz- a safe,secure and loving environment.Our staff's first the Metropolitan Readiness Test,a zles help children Safe secure surrounded responsibility is to care for the children and meet their nationwide exam that measures how learn at their > > needs—from a good hot lunch each day to individual well prepared a child is for the first grade, own pace. by love 1.1crer S IF11,011 ,. I _ tlip At The first Kinder-Care center opened its doors in 1969.Today,there are more than � E 1,000 centers in 42 states(and 2 Canadian . C provinces). P Every day,over 80,000 children are �I cared for at their neighborhood Kinder- Care.And over the years more than half a million children have enjoyed the benefits of Kinder-Care's cheerful centers and unique preschool learning programs. Today,Kinder-Care is the world's larg- est private day care organization.And the t. bright red bell tower emblem continues to symbolize,as it did from the very first day, quality child care of the highest order. l Please call 1-800-5511500 for the Kinder-Care � Learning Center nearest you.Then call the center to arrange for a personal tour.When you come in, bring along this free week coupon so we can com- plete your child's enrollment. 1iT1 � Name �+ KinderCare •�©3 Your child's Name YourChild's Age Kinder-Care Learning Centers,Inc. 2400 Presidents Drive,Montgomery,Alabama 36116 Address City State Zip *This special free week offer is available to new enrollees KINDER-CARE'S OPEN DOOR POLICY: r' upon payment of registration. Parents are always welcome and encouraged to visit anytime. c c �K Let KindermCare start your child hances are,your child is already our staff approaches this readiness with love,understand- thinking about the future,too. V ing,and patience. You know how bright those Three-year-olds learn all about the world through the dreams are.And you know that to program,My Window on the World.Each month they realize those dreams,your child receive the National Wildlife Federation children's maga- must have the best possible start. zine, YourBig Backyard.The magazine serves as a spring- At Kinder-Care Learning board for learning concepts such as simple counting,learn- Centers,we know that the best,the ing colors and shapes,making com- brightest futures begin early.With DailyfareatKinder-care: parisons and noting differences the careful planning and loving sup- Agood hot lunch,plus two between things found in nature.My port of responsible,concerned pro- nourishing snacks. Window on the World challenges and fessionals,in a safe,secure and loving environment. excites young children to learn about d` o Every Kinder-Care center meets the same exacting their wonderful world. ' standards of safety.Our child-care professionals are there Four-year-olds enjoy a variety of 4b at the state-licensed center from the time your child arrives playground and Discovery Areas in the morning until you arrive in the evening.Under the activities designed to stimulate curl- Absorbingpuzzleshelpchil- constant care and supervision of Kinder-Care's staff,chil- osity and further social,physical and dren learn attheirown pace. dren feel secure,confident,and loved. emotional growth.The Once Upon Our staff food specialists have developed a complete A Time...Happily EverAfter program prepares children nutritionally-balanced menu so the children get all the for reading readiness programs by using story sheets, nourishment their growing bodies concept boards and activity books. need.A good hot lunch is served The five-year-old's growing interest and expanding every day,along with wholesome social and language skills are stimulated through such activ- midmorning and afternoon snacks. ities as acting,clay modeling,music appreciation,wood- And as the children spend their working,painting,and drawing.The academically excellent days with other children,together Beginning to Read, Write and Listen and Mathematics they learn to share,to express them- Their Way programs help prepare your child for early suc- selves,and,maybe most important, cess in first grade. Stacking toysstrengthen to understand and care about each School-age children have their own club that meets eye-hand coordination. other's feelings. daily before and after school—full time in summer—in their own separate area of the center.Klubmates offers 6-to Kinder-Care's unique"Learning Ladder"meets 12-year-olds the opportunity to earn your child's needs—from 6 weeks to 12 years. "" 40 different achievement badges, Whether your child is as young as 6 weeks, as eager as a 1; from First Aid to Space Exploration...Ecology to Sports.The Kinder- 5-year-old preschooler,or as high-spirited as a youngster Care van takes children to and from in grade school,Kinder-Care provides a carefully structured t school and on a fascinating range of learning program that allows for each child's individual poten- ° _ field trips. tial,needs and readiness. You will never feel left out of this Infants are cared for in a bright welcoming room colorful ill never of learning le and designed to provide both stimulation and security.Parents Everyfourmonths,there's a P g detailed progress report, adventure.Every quarter you receive receive an Infant Activity Daily Report which covers what and a conference w:lhyour a calendar describing themes and the child ate,how much,and when—when the child slept and child's teacher. how long,as well as progress in areas such as motor,social- Asubjects for the next three months. ization and language skills. And on a more formal basis,your child's teacher will prepare Toddlers enjoy safe,protected surroundings in which a progress report three times a year,setting time aside to discuss it with you. to develop new abilities.Simple child development toys encourage pushing,pulling,grasping,stacking and toss- At Kinder-Care,every child is given the best ing.There are plenty of opportunities for songs,chatter, possible start. and peekaboo games—and lots of places for toddling,soft tumbling " ` Kinder-Care's learning programs take advantage of the and taking first steps. skills children generally acquire at certain ages.But within Two-year-olds enter the GOAL these broad outlines every child's talents and abilities unfold (Growth Opportunities for Achieve- at a different rate.That's why Kinder-Care teachers are ment and Learning)program and r trained to be watchful and adaptable.Every teacher is learn through Discovery Area group encouraged to add personal touches and approaches to the activities to develop self-control, programs,while bringing out the particular talents of each cooperation and the ability to com- Thischild-size version of child through individual attention and encouragement. ouram municate.When your child shows Kinderoouill isalwaysgoodor Kinder-Care gives children the confidence and enthu- signs of readiness for toilet training, for a cuddle! siasm to reach for their dreams. *Infant care may not be available in all centers. safe,secure,surrounded y love j 1 r ' , Nt Aillh w s K i n d e r a r e? The first Kinder-Care center opened its doors in 1969.Today,there are more than 1000 centers in 42 states(and 2 Canadian provinces). Every day,over 80,000 children are cared for at their neighborhood Kinder-Care.And over the years more than half a million children have enjoyed the benefits of Kinder-Care's cheerful centers and unique preschool learning programs. Today,Kinder-Care is the world's largest private day care organization.And the bright red bell tower emblem continues to symbolize,as it did from the very first day,quality child care of the highest order. A KinderCard Kinder-Care Learning Centers,Inc. 2400 Presidents Drive•Montgomery,Alabama 36116 KINDER-CARE'S OPEN DOOR POLICY Parents are always welcome and encouraged to visit anytime. •sasal ang 11E uo 92E1aAu sate z8ozd lfuiuxaal loouas luuotleu aql ueul.1ag2!q paaoos pa2paVAou3loE ue)isal ssaulpeag -azd s aju0-.iaputX;o lied lui2alui sialoogasa.zd amo-aapuiX uul!1odoalaW aql suns is al atl L u —u1EJ201d ualsz7 pun d*'Al slIMS aAile4iluun0 is-ioloo 13uiAu t1lyA gBnozgl awuo `pnag ol ffuzuuzr4ag aql;o s►segduza puu sllpIS 2uipea_iazd alisoduioo uaaplTgo a1E0-zapurX lugl podai aql sloagaz Alzealo Isom lugl Isaa 1aBEn2ue-I`lenstA W iolipnV of pnozd w aen pud •stuujl�o id tui uiuw atll;o uotloas aql si siq,L Atoll :slsalgns angio palsisuoo 1I•(apuzf -uaual ino;o autos;o ssauaAp:)a1ja -aJeo.k1olipnV aql ui ajaen saaoos Iszg aql jo;si pltuo E pajudaid atl;ainseauz Slalwnoou of algE aaann ajuo-.xaputX;saq�►q aq j, ltam nnoq;o ioleoipui luuotssaioid am`sisal leuoileu ql fnozgl�CIluaoag aping lsapo3 pareduds3ilaq sxa1oog3said amv3-.iapu mous slinsaa isal icuoprN Guest columnist •C W-�2re system should help, not hurt. CITY PARK,Pa.— Jay Belsky is a professor'of The ,ultimate strength of this human development 'at :The nation rests not simply on the Pennsylvania. State Universi- buildingof weapons systems ty. :+ :arid the security of our borders, but also on its capacity to.rear tainly do,then we must pursue human beings capable of car- three policy goals: ing,producing, and preserving ■ Parents .must-:",.- Y'e our national heritage. °.choices available and•the"free= Recent-research findings dom to exercise them within. suggest that we may be playing reasonable economic limits. Russian roulette with the well- Parents of infants,-particularly being of future generations. newborns, should have the.op- IVlore=than 50% of mothers portunity to stay at home for a ,of infants under.1 year of age : reasonable period of time be- ar.in'the labor.force.:Several fore returning to work without recent studies indicate that fear of losing their jobs. children growing up in families ■Parents must have the op- using more than 20 hours per tion.of returning to work on a week of non-parental care in part-time basis and be assured their first year of life are at of reverting to full-time status heightened risk of seeming in- after the child's first birthday. secure as 1-year-olds and of be- ■Quality care for children ing disobedient and aggressive of all ages and in all child-care at older ages . - locales must be available and 'These facts probably say affordable.• :. more about the U.S.child-care For many -families today, system than about any inevita- there is no economic freedom ble effects of day care on chil- to remain at home or to work dren's development part time,even if such options To characterize the current existed. By insisting that such system as patchwork and jury- parents purchase unstable, rigged would be an understate- poor-quality care, as the im- ment The unsatisfactory child- plicit policies of this nation cur- care options that all too many rently do, we are taking risks families are forced to rely on with our future in ways that are generate unnecessary stress no less dangerous than the cur- and friction for parents, chil- rent budget deficit i. dren, and workers in their If the USA expects to pro- homes, schools,.and work gress into the 21st century, it places, and this undermines must create a viable child-r&are economic productivity and psy- -'system. There is every reason chological well-being. to expect that the return on the If,a child-care system is to investment in such a•system 'promote human growth and would be every bit as great as development rather than dis- that realized overbe past cen- rupt the social and economic tury in the creation of transpor- fabric of everyday life,as cur- tation and communicatiorr sys- rent arrangements most cer- terns. ' JEFF RIGGENBACH An opposing view Dont let government ruin care for children ORANGE,. Calif. — If the Jeff Riggenbach is producer,, politicians and bureaucrats' and commentator for the Cato . now calling for more govern- Institute's daily syndicated ra ment involvement in day care dio program,Byline. really want to help working parents, they should work to complaint of any kind against get government out of the day- her.Why?Because,under Cali= care business altogether. e . fornia law, a cooperatiy 'day-`, Do licensing laws make it care center — the type.-this impossible for unsafe day-care woman operated— is required centers to operate? Do they to be under the.direction'of a prevent the emotionally dis- parent.of one of the children turbed or the unscrupulous enrolled there, and this day-. from going into the day-care care operator was a grandpar- business? Absolutely not ent,but not a parent, of one,of In Northern California not the children enrolled In. her too long ago, a fully licensed center.. and accredited day-care opera- so it is that government.has .' for was convicted of murdering created a shortage of:afford- one child left in her care and able day care..Does this mean inflicting physical and emo- that government should spend tional wounds on a number of the taxpayers' y to make others.How did this happen,if more affordable; day care . licensing can be relied upon to available?Hardly.;. prevent such tragedies? It may be true that it costs . In fact,the only thing licens- the taxpayers less to provide ing accomplishes is a reduction day care for a single'parent' in the supply of affordable day than to pay that parent welfare care available to working par- so she-can stay home with-the ents.A few years ago,a Boston kids, but the taxpayerswould woman of my acquaintance de- save even.more if they didn't cided against entering the day- . have to pay the cost of any 90V- care business despite the evi- ernment meddling in the:.day- dent shortage of affordable care business. The market day care because she found would provide plenty of afford- that meeting all the govern- able day care if only govern= ment requirements would ment would get out of its way. force her to price her services . Nor is government%needed beyond the means of even fair- to assure,adequate standards ly affluent families. of safety.in day-care.centers. Just last year,here in South- Safety standards in the electri- em California,a day-care oper- cal appliance industry are.'as- ator who had been offering her , sured by a private organization services for more than seven — Underwriters Laboratories. years was ordered to close her The day-care industry and its doors,on pain of six months in insurance carriers could do the jail and a $6,000 fine, despite same for day-care centers, if the fact that the state could' only government .would butt find no one willing to file a • out of the situation. 8A•THURSDAY, NOVEMBER 12, 1987 • USA TODAY "USA TODAY hopes to serve as a forum for better ' understanding and unity to help make the USA truly • ' one nation." —Allen H. Neuharth ® Chairman and Founder Sept. 15, 1982 John C. Quinn John Seigenthaler Editor Editorial Director OPINION The Debate: DAY-CARE DILEMMA Today's debate includes our opinion that governments at all levels must set and enforce standards for child care, an opposing view from California, other views from Pennsylvania and the District of Columbia, and voices from across the USA. Government has role in. caring for children Jessica McClure,the 19-month-old Texas tot dramatically rescued last month from the dry well she fell into,could be home with her parents Thanksgiving Day. We're all thankful for thaL But we must never forget that, every workday, millions of parents drop off their children at illegal child-care facili- ties like the one where Jessica nearly lost her life. And the story doesn't always have a happy ending. In Brooklyn,two preschoolers burned to death when their sit- ter couldn't save all the children she was taking care of.In Bowie, Md., a 20-month-old boy drowned in the backyard pool of a sitter tending too many children. Many parents can't even find someone to take care of their children.A young Miami mother's two sons died in a dryer when she had to leave them home alone. Natioft�vide„only...A% of our child-care needs is'being3 ' met,by'one estimate.'Next week, legislation will be intro- duced in Congress to help improve the availability,afforda- bility,and quality of child care across the USA It's about time. The legislation is backed by a national coalition of 70 or- ganizations.It would help low-income families pay for child care. And it would require states to review and upgrade their child-care licensing requirements. Already some are arguing,as you can read elsewhere on this page,that the government should butt out That's what's been happening. And it hasn't worked. Governments at all levels must butt in. They can help low-income parents afford child care,so they can work and stay off the welfare roles. They can set and enforce nutri- tion,health, and safety standards. But governments can't do it alone.And they shouldn't- Religious houldn'tReligious groups already are the largest providers of child care. Private charities are getting involved. Schools can help,especially in caring for children before and after school hours. Hospitals can take care of children with mi- nor illnesses while their parents work Many employers have found it helps to recruit and retain good workers if they provide some child-care services. Parents play the most important role. They have to do more than drop off and pick up their children.They have to learn how to select quality child care. And they have to Ttteep up with the care their children are receiving. You may still hear a few whiners say that there wouldn't be a child-care problem if women would stay home where they belong_ That's nonsense. Most women work because they have to. And less than a fourth of them are in high- paying professional and managerial careers. Our child-care problems won't go away. They re getting worse daily. We can't ignore them. Or pass the buck Or point fingers at each other. Today, half the mothers with children younger than 6 work In eight years,three-fourths of preschoolers and four- fifths of schoolchildren will have working mothers. We must be ready. UJN IVUNI WuJIIIIIWl -- ---------- I fhought dcare was wonderful WASHINGTON — I loved that's where we stayed.AR day. Laurie Frink is a writer for going to JoAnn's.I didn't know We didn't come in for lunch. USA TODAY's Life section. I'd grow up to think the care Through her kitchen window, my sister and I received — or JoAnn handed out bologna bring us in her air-conditioned the lack of it — bordered on sandwiches on dry Wonder house,scrub us clean,and plop abuse. Bread and three or four potato us in front of the TV to watch It was 1967. I was 7; my sis- chips served on flimsy paper cartoons until Mom carne to ter,Debbie,5.My parents were plates. pick us up. divorced — a much more un- We didn't come in to get a I liked JoAnn's TV room— common occurrence in those drink of water. If we got it was neat And I especially days than it is today.My moth- thirsty, we slurped water liked JoAnn's teenage daugh- er worked full time, so JoAnn through the garden hose. ter.She was a cheerleader and took care of Debbie and me for We didn't come in to use the taught me how to do cart- $50 a week- bathroom We had two choices: wheels and jumps. Each workday,.Mom would "hold it" or squat in the back When school started, I spent take us to JoAnn's.We'd go in- yard. But there were as many less time at JoAnn's. But Deb- side to JoAnn's kitchen— just as 32 kids in JoAnn's back yard bie, a kindergartner that year, a few steps up from-the TV some days —she was licensed was there almost a half day room in her split-level house in for far fewer — and modesty without me.. Debbie started Springfield, Mo. -We'd eat the prevented me from relieving •crying .each.•:time :Mom:: cereal Mom had brought with • myself behind a.bush. That dropped us off in the morning. us while she and JoAnn talked summer Mom took me to the My mother was— and is— JoAnn fussing. over what doctor•a lot for bladder infer- a good mother.She started ask- good girls Debbie;and:Fwere-::*:' -tions- The doctor.said it must ing questions and was horrified Mom would'.leave,`we'd fin- be the bubble baths at the answers. ish our breakfast, and out to At the end of each humid, I'missed.,JoAnn's when we the back yard,we went And ' summer day, JoAnn arould ' changed sitters. MARIAN WRIGHT EDELMAN Guest Icol.urririist We're puttingour future at risk WASHINGTON — Linda mal development are jeopar- Marian Wright'EdeIman is Grant lived in Dade County, dized daily.We are in a child- president of Children's De- Fla., with her children, 3-year- . care crisis.While Congress de- fence Fund. old Anthony and. 4-year-old . bates:whether the federal gov- -Maurice.Although:..h•e'wh' kl sk"`,?.,'ernir'6t' has'-af;;; ile 'in'-the.* �rnrhmitrnpnt to-duality child to support her family, her in- provision of high-quality child care. Efforts to protect chip come was too low to pay for care,the crisis grows and chil- dren in care outside the home child care. Because she quali- dren are harmed. have been abandoned. Fund fled for the government's As an increasing number of ing to help low income families child-care assistance program, mothers have gone to work to • meet the cost of child care ha she put her name on.the wait help their families pay the been slashed.The buying pow. ing list with 22,000 other low-in- bills, the need for high-quality er of the annual funding fol Z come families. child care has grown. federal child-care assistance While she waited,she relied ' ■In 1970, less than 30% of for low-income families is nOA on friends and relatives to care preschool children had moth- half of what it was in 1975. for the boys.Some;days the ar- ers working outside•the home. . State and local governments rangements fell through, and z,. ■By1985,.more'•thanhali•of�' employers, charities, religiotu she was 'forced to-leave thealJ children under 6:had.work;l organizations, and parent, boys alone or risk-losing her 4irig'.iiiothers:1 have struggled to meet the job.One such day Maurice and. ■By 1995, over two-thirds need.However,they cannot do - Anthony climbed into the dry- —nearly 15 million preschool- it alone. Our future as a pro er. The door shut, and they ers— will have-working moth- ductive nation depends upon tumbled and burned to death. ers. our children. Our failure to-in Nothing will bring Maurice The same decade that has vest.in high-quality child.care and Anthony back But steps witnessed an explosion in la- endangers* that future. We can and must be taken now to bor-force participation of must act now to ensure thatou) protect the millions of children mothers has seen a simulta- children are provided with the .•:..•..whose„he health, safety;and opti- neous erosion of the federal care they need. care? responsibility ensure quality day M ACROSS THE USA/Whose resp ty is it to ens ■■/���ES FROM - ♦ a i �.e ./.'} ;lam y•Y�. Y i ��+ •t `F.f;. } ,9�r: t 3 •fix 7 .A.'�j.1`' a'• �l LF _ k `'R .4(� F, `�T,�? Y . / S ' � .w.+ [ 1' t {Z,'q.1 ; � •L" .. is ? ROBERT GARRETT, 48 49 K THEODORE JASKIE, ;F VICKI LEVIN, 24 Supply attendant Letter carrier TRICIA DELL, 29 DENNIS RODRIGUES, 38 Market researcher College Park, Ga. JOHN MIRAGLIA, 69 Program analyst Brown Deer, Wis. STELLA GOWOREK, 59 Business owner ' Wheaton, Md. Granada Hills, Calif. Retired Housing superintendent overnments should Daycare owners are respon- Somerville, Mass. Cincinnati, Ohio Local governments day sible for the quality of their Rome, N.Y. Day fare is nota federal The government is already responsible for quality ovem- It is the government's re nsible for quality public be respo to make. oned and don't Whoever wants to run a day bili to ensure quality concern. It should be the con- resp° shouldn't it start care• Local citizens should be centers. But it i i e I'm old-fashioned govern- schools. Why getting the benefits from the s re that qualityband safety are like day-care centers — peri- care center should be licensed sponse ty on early with public day-care cen g they pay. The money od. Mothers should just stay by the state government,which day care• The way it is now, me tsfB�tW°Or local upheld. The government carecen should be kept in the area from should license all day governments to tern and preschools. However, ►� home and take care of their should also provide periodic he middle-and upper-income ca m parents have to I certainly don't think quality which it was derived. Corpora- tem for operation, as well as own kids. My mother stayed spections to ensure that the pieafford are the only ones care. dote d local g care should solely tions could also provide day fbcant share of the day ns to home with me. It's OK if a centers are safe. Every state afford qualify day m making sure government's reS ons dials. care services in order to Pro- make Bute the centers mother up mother works part time and should have the nin a damcare ccen- because thee regurirfchildren are in a resPc ty put their kids in That resp. h' vide jobs to people who need to par. has a responsible baby sitter. tions in running Y the places they p care of fall to communities, corpora ter. After all, children are the safe environment The govern work. But by putting kids in a day ment's role is to ensure that the are capable of taking bons, and individuals. care center,parents risk losing same no matter where they poor have the same advantage. them. the closeness to their children. live. l 1 . ..•.t�b�tk:Ak�atK C•.�-_.w.�. ..s.� ..n:.....M1,�t-i ......a. .._ +..:� � Jl�ll KinderCare . . . About Ki* nderooCare Learniing Inc. In July of 1969, Kinder-Care Learning Centers and industry quality care for their employees at an opened its first child care center in Montgomery, affordable price in local centers and in on-site Alabama.Founder and Chairman of the Board Perry locations such as the two centers Kinder-Care oper- Mendel recognized the need for quality care created ates at Walt Disney World for Disney employees. by the spiraling number of working mothers. He Company size also offers families the assurance that, brought together a group of professionals in the in the event of relocation, there is always another g g g p P Y fields of early childhood education,nutrition,phys- quality learning experience in a Kinder-Care center ical fitness and health to assist in developing a near their home. comprehensive service to children and parents. With its substantial growth,Kinder-Care remains Mendel envisioned a nationwide chain early in a people-oriented community and neighborhood Kinder-Care's history. operation. Each center director has the necessary The management of Kinder-Care, under the autonomy, with corporate guidelines and assistance leadership of President Richard J. Grassgreen, has from field management,to provide a quality program brought the company considerable recognition in the for the children.Each teacher is given the opportunity child care industry as well as in the financial world. and the resources to plan exciting,active and creative Kinder-Care went public in 1972 and continues to programs for children and to utilize the finest of grow at a fast pace, with over 1100 centers in 40 indoor and outdoor equipment, audio visuals and states and Canada. learning materials. Particular care is taken to select As the corporate name indicates, Kinder-Care staff who are warm and responsive to the young child Learning Centers are dedicated to a teaching curric- and who are motivated to help the center grow. ulum that seeks to enrich a child's day. Age group Opportunity for professional enhancement is avail- educational programs are conducted in an environ- able through Kinder-Care Teacher Certification ment specifically designed for children. Care begins programs. with warm,nurturing staff who explore with children, The company addresses the needs and concerns from early infancy through age twelve,the"Discovery of American families with projects centered around Learning"programs at Kinder-Care.Developmentally Family Awareness Month;Muscular Dystrophy Asso- appropriate activities provide fun and learning even ciation fundraising; Big Hearts, Little Hearts, an for the after-schooler(Klubmate)who earns badges intergenerational program;Kinder-Care's"Listen to for special achievements in areas such as First Aid, Dolly" child abuse awareness and prevention pro- Camp Craft and Friends Around the World. Field gram,and other pertinent safety issues.Each center is trips,arts and crafts,sports and outdoor activities are an integral part of this large operation.Each employee an integral part of the Klubmates group and the enjoys the satisfaction of providing quality child care summertime Kinder Camp. services in the finest tradition of free enterprise. Kinder-Care pioneered employer-sponsored child Kinder-Care Learning Centers, Inc. is a wholly- care in 1981.The Kindustry program offers business owned subsidiary of Kinder-Care, Inc. KC 65 3/87 HOW TO SELECT QUALITY CHILD CARE FOR YOUR CHILD Kinder Care Choosing the best child care arrangement for your child is not an easy task. To make a responsible decision you need the answers to many questions.This checklistwill be your guide as you visit child care centers in search of the right place for your child. Ask questions and consider the answers. Each child is unique and each family has its own needs.The choice of appropriate,affordable and available child care is one of the most important decisions you,as a parent or guardian,will ever make.This checklist will help you make the best decision for your child and your family. The Center ❑ Is it licensed? ❑ Is there a"special rest area'for ill children? ❑ Are the rooms equipped with equipment,toys and educational materials appropriate for each age group? ❑ Is there an "isolation area" for ill children? ❑ Are emergency procedures and phone numbers clearly posted? ❑ Is the center clean and sanitary? ❑ Are the menus posted?Are the meals nutritionally balanced? ❑ Are there formal procedures for the release of a child? ❑ Is the infant/toddler area clean,well equipped,sanitary and properly staffed? ❑ Are there suitable "napping"accommodations? ❑ Does the outdoor play area have equipment that encourages active play and large muscle development? ❑ Is there a vehicle for field trips and school transportation?Is it safe and equipped with seat belts for each child? ❑ Are parents welcome and encouraged to visit at any time? The Staff ❑ Is the director a professional person who inspires confidence? ❑ Is the staff familiar with the center's philosophies,policies and procedures? ❑ Is the staff warm and loving,but firm and Flexible? ❑ Does the staff have training in child care methods and developmental learning? ❑ Does the staff respect each child as an individual and teach children to respect the rights of others? ❑ Is the staff sensitive to the needs and feelings of children and parents? ❑ Does the center place an emphasis on parent communication and involvement? ❑ Are parental visits,questions and comments welcome? ❑ Is the staff enthusiastic about their responsibilities? The Learning Program ❑ Does the center have a written, planned program you can see in action? ❑ Are the learning programs designed for each age group? ❑ Is the educational program designed to achieve certain goals? ❑ Are activities designed to enhance the development of the total child? ❑ Is the staff supported by professional resource people,training and materials? ❑ Is there an appropriate emphasis on outdoor play and physical fitness? ❑ Is there an active,fun summer program? ❑ Is there a program designed specifically for the school age child? ❑ Is there appropriate stimulation and nurturing of the infant/toddler age child? ❑ Are the educational programs designed to prepare a child for primary education? Licensed center based care offers many advantages...reliability of service 52 weeks each year ...equipment and buildings designed and sized for young children and an administrator and staff trained to care for young children in a safe and healthy environment Kinder-Care Learning Centers, Inc. a M, E D MNMA ORD PU U a ...... IRMEZ Kinder Careknows that You,as parents,are very concerned about the food our children receive. Good nourishment is important to us too. Nutrition relates directly to growth, health, 1earning ability Y and general well-being. ing. That's why we are committed to serving nutritious well-balanced meals and snacks to our children. B t — well balanced we mean that we serve foods from each of he four food groups daily it bread, s da ead Y P , g Y Y meat n fruit/vegetable. Kinder-Care meals meet the recommended daily dietary requirementsui rements for growing children. Your children receive a hearty morning snack lunch an afternoon snack each day.A typical morningrnin g snack at Kinder Care consists ofcheese toast,milkand/or juice. Lunch might be spaghetti,gh tti,fruit,t,milk and slaw or vegetable soup, grilled cheese sandwiches, fruited jello and milk Afternoon snacks are healthy and fun such as Peanut butter spread on celery sticks apple and cheese wedges and juice. Foods higher in sugar content such as cookies pudding and brownies may be served,but are limited to no more than twice weekly. Y Meal times are happy times at Kinder Care. We encourage children toparticipate by passing g naPkins, utensils and cups. Meals are seryed"family-style" and reflect regionaland geographical hical t aste preferences.Weencourage meal timeconversation and tasting new foodsChildren re encouraged to help in "clean up" activities after meal time.. Children'stastes and abilities to manage foods vary with age.Infants fed on individual schedules according to parental preferences with formula and/or baby food provided by theirparents. Toddlers are servedtable food including g finger foods,such as banana slices and fish sticks,and foodsods which y are digested easily. Preshoolers also enjoy "finger" foods, but are v_ k .� encouraged to use utensils and develop independent t fe ding s kills. _ . �s Schoola ers C Klubm tes„ at Kinder-Care,Care often help prepare r theirit snacks which are planned for older children's tastes and ..,. Preferences. PA Family involvement is important to the success of our program. .. Kinder-Care keeps parents informed through nutrition newsletters : 3 clearly posted menus and on-going conversation. We encourage r - g special meals with arent "get to ethers”which include sharin s x;, v P g g x .. your children.r We at Kinder Care recognize that by serving well-balanced nutritious meals we are helping children grow and ensuring your ' 4 confidence. r Kinder-Caire.-.8 ...... ........ Learning Centers, Rnco 1975 Q 369,247 GROWTH AND EXPANSION 1976 509,787 I 1977 ❑ 745,180 Net Earnings 1978 ❑ 1,320,671 1979 ❑ 2,173,226 1980 3,449,495 1981 �� 4,290,743 1982 6,654,637 1983 11,185,697 1984 16,632,912 1985 24,598,671 1986 33,336,175 1975 6,088,993 1976 ❑ 9,108,769 1977 ❑ 12,620,884 Operating Revenues 1978 ❑ 19,744,208 1979 ❑ 28,591,345 1980 56,577,767 1981 F 87,037,734 1982 116,467,200 1983 128,050,897 1984 1 156,344,106 1985 192,173,883 1986 231,141,517 1975 ❑ 88 1976 ❑ 133 1977 ❑ 170 (r� Numbers of Centers 1978 L 241 1979 (— 335 1980 l 540 1981 720 1982 745 1983 783 i 1984 890 1985 1000 1986 1066 KinderCare* KINDER-CARE LEARNING CENTERS, INC. THE oU OF KINDER-CARE'S EDUCATIONAL PROGRAM Through Kinder-Care's theme-related GOAL program each child will be provided the opportunities to: 1. Develop a healthy, positive self-image. 2. Develop communicative skills. 3. Develop self expression through creative media, dramatics, music, storytelling, block building and other forms of play. 4. Develop self-control, self-direction, and independence. 5. Develop social skills through group interaction. 6. Develop intellectually through a balance of teacher-directed and free choice activities. 7. Develop and strengthen auditory skills, visual acuity, and rhythm awareness. 8. Increase attention span and follow simple directions. 9. Practice thoughtful and courteous behavior. 10. Develop gross motor skills and manual dexterity. 11. Develop an awareness of physical fitness and good health habits. 12. Develop moral and aesthetic values. 13. Develop a respect for individual and cultural differences. 14. Experience a high degree of success through developmental activities. 15. Assume responsibility in given tasks. A6 RR KinderCare 01982 Kinder-Care Leeming Centers.Inc. KC 66 10/18/83 • n KINDER-CARE Kinder Care LEARNING ..:CENTERS, INC.- ALABAMA Rancho Cordova Margate Darien LOUISIANA Anniston Rancho Cucamonga Melbourne Decatur Alexandria Bessemer Rancho San Diego Merritt Island DeKalb Baton Rouge Birmingham(Metro) Redlands North Lauderdale Downer's Grove Gretna Center Point Rohnert Park North Tampa Edwardsville Harvey Daphne Riverside Ocala Elgin Kenner Decatur Sacramento Oldsmar Geneva Lafayette Dothan Salinas Orange Park Glen Ellyn Laplace Forestdale San Diego Orlando Glendale Heights Lake Charles Gadsden San 4ose Ormond Beach Godfrey LakeMeta *h Gardendale Santa Ana Palm Bay Hanover Park Monroe Hoover Santee Panama City Joliet New Orleans Huntsville Santa Clara Pensacola Lake Zurich Shreveport " Irondale Simi Valley Pinellas Libertyville Slidell Mobile Stanton Port Orange Lisle Montgomery Stockton Seminole McHenry MAINE Opelika Sunnymead Sunrise Matteson Portland Pelham Thousand Oaks Tallahassee Montgomery Phenix City Tracy Tampa Niles MARYLAND Prattville Tustin Titusville Normal Abingdon Selma Vacaville GEORGIA Oak Forest Annapolis Theodore Vallejo Orland Park Arnold Ventura Acworth Tuscaloosa Palatine Bowie West Covina Albany Park Forest Columbia ARIZONA COLORADO Athens Peoria Eldersburg Glendale Atlanta(Metro) Richton Park Frederick Mesa Arvada Augusta Rockford Glen Burnie Hanover Phoenix Aurora Austell Boulder Chamblee Rock Island Tempe Roselle :" Odenton Tucson Colorado Springs Clarkston ;:::r St Charles Olney Denver College Park ARKANSAS Englewood Columbus Schaumburg Holland Pasadena d St Charles Fayetteville Fort Collins Conyers Springfield Severna Park Fort Smith Greeley Decatur Streamwood Waldorf Hot Springs Lakewood Doraville Tinley Park White Marsh Little Rock Littleton Douglasville Urbana MASSACHUSETTS North Little Rock Longmont East Point Vernon Hills Pine Bluff Westminster Ft OglethorpeWheeliBedford Wheeling Springdale CONNECTICUT Forest Park ridge Beverly Woodbridge West Memphis Gainesville(Oakwood) Billerica Bloomfield Griffin INDIANA Braintree CALIFORNIA Branford Jonesboro Beech Grove Brockton Anaheim Bristol Lawrenceville Bloomington Chelmsford Antioch Brookfield Lilburn Carmel Danvers Benicia Danbury Mableton Columbus Framingham Buena Park Enfield Macon Ft.Wayne Holyoke Cerritos Farmington Marietta Indianapolis Lexington Citrus Heights Hamden Martinez Lafayette Longmeadow City of Industry Hartford Morrow Muncie Lynn Clovis Manchester Norcross New Haven Marlboro Colton Middletown Oakwood West Lafayette Melrose Concord North Haven Peachtree City. Methuen Corona Rocky Hill Riverdale IOWA Milford Covina Vernon Rome Bettendorf Newburyport Diamond Bar West Hartford Roswell Cedar Rapids Norwood EI Cajon West Haven Savannah Davenport Pembroke Encinitas Windsor Smyrna Marion Rockland Escondido DELAWARE Snellville Waterloo Salem Fairfield Dover Tucker KANSAS Shrewsbury Fountain Valley Wilmin ton Union City Springfield Fremont g Valdosta Derby Waltham Fresno FLORIDA Warner Robbins Emporia Wayland Fullerton Altamonte Springs Kansas City Westfield Glendora ILLINOIS Lansing Atlantic Beach Westboro Granada Hills Arlington Heights Lawrence Boca Raton g g Weymouth Huntington Beach Aurora Lenexa Casselberry Woburn Irvine Belleville Manhattan Clearwater Olathe Worchester N. Jurupa Bensenville Overland Park Daytona Beach Worchester S. Laguna Hills Dunedin Bloomingdale Livermore Gainesville Bloomington Salina MICHIGAN Milpitas Ft Beach Walton Bh Bolingbrook Topeka Detroit(Metro) Mission Viejo Bourbonnais Wichita East Lansing Indian Harbor Beach 9 Modesto Jacksonville Buffalo Grove KENTUCKY Farmington Hills Newbury Park Jacksonville Beach Carol Stream Bowling Green., Grand Rapids Oceanside Champai nKalamazoo Lake Buena Vista Independence Ontario Chicago Metro) Kentwood Lakeland Lexington Pittsburg Largo Country Club Hills Louisville Lansing Pleasanton Mandarin Crystal Lake Livonia Poway Northville Okemos Plymouth Portage Burlington Lawton TEXAS Newport News. Rochester Camden MooreReston Southfield Cher Hill MustangAbilene Richmond Sterling Heights Clementon NormaAllen Amarillo Stafford Troy Delran Oklahoma City Arlington Sterling Park Utica Erial Ponca City Austin Vienna Waterford Franklin Township Shawnee Baytown Virginia Beach Westland Freehold StillwaterBedford Woodbridge Wyoming Glasboro Sylvania Bryan WASHINGTON MINNESOTA Howell Tulsa Carrollton Manalapan Warr Acres College Station Auburn Apply Valley Marlton Yukon Blaine Medford Conroe Bellingham Bloomington Mt.Holl OREGON Corps Bothell Brooklyn Park Mt.Laurel Aloha Corpus Christi Bremerton Burnsville Pennsauken Eugene Cypress Federal Way Coon Rapids Toms River Gresham Dallas/Ft.Worth Hazel Dell Deer Park Kennewick Hillsboro Cottage Grove Voorhees o Pas Eden Prairie Washington Township Lake Oswego El l Pas Kent Maple Grove Portland Lacey Maplewood Salem Y NEW MEXICO Farmers Branch Lynnwood Minneapolis(Metro) Albuquerque Tualatin Friendswood Olympia Moundsview Hobbs West Linn GarlandOrchards North Oaks Sante Fe PENNSYLVANIA Grand Prairie Puyallup Houston(Metro) Redmond Plymouth NORTH CAROLINA Stillwater Bethel Park Humble Renton Woodbury Cary Bridgeville Hurst Richland MISSISSIPPI Chapel Hill Camp Hill Irving Seattle Charlotte Coraopolis Katy Silverlake Biloxi Durham Cranberry Kingswood Spokane Greenville Fayetteville Downingtown Lake Jackson Tacoma Gulfport Gastonia Exton LaPorte Totem Lake Hattiesburg Goldsboro Fairless Hills League City Vancouver Jackson Greensboro Greensburg Lewisville Yakima Meridian Greenville Hershey Longview WISCONSIN Pascagoula Highpoint King of Prussia Lubbock Tupelo Knightdale Lancaster Mesquite Appleton Vicksburg Lumberton Lansdale Midland Brookfield MISSOURI Pineville Library Mission Bend Brown Deer Raleigh Mars Missouri City Eau Claire Ballwin Rocky Mount Moon Township North Richland Hills Green Bay Belton Wilmington Newtown Odessa Greenfield Blue Springs Wilson North Huntingdon Pasadena Janesville Bridgeton Winston-Salem Penn Hills Pearland Madison Cape Girardeau OHIO Philadelphia(Metro) Rosenberg Menomonee Falls Columbia Plum Borough San Angelo New Berlin Creve Coeur Amelia Richboro San Antonio Racine Fenton Ashland South Park Sherman Schofield Florissant Brunswick Thorndale Spring Sheboygan Gladstone Canton Warminster Temple South Milwaukee Grandview Cincinnati(Metro) West Lawn Texarkana Waukesha Harvester Cleveland Wexford Tyler West Allis Hazelwood Columbus York Victoria High Ridge Dayton Waco Independence Eastlake RHODE ISLAND Watauga CANADA Jefferson City Elyria Johnston Webster Toronto Joplin Englewood SOUTH CAROLINA Wichita Falls Winnipeg Kansas City Gahanna UTAH Lake St.Louis Grove City Charleston ee's Summit Harrison Charleston Heights Centerville Manchester Huber Heights Columbia North Salt Lake City Maryland Heights Hudson Florence Orem Oakville Kettering Goose Creek Salt Lake City Raytown Landen Greenville Sandy St.Ann Lorrain Inman West Jordan St.Charles Loveland Mauldin VIRGINIA St.Jose h Maple Heights Mt.Pleasant p Alexandria St.Louis(Metro) Mason North Augusta St.Peters Medina North Charleston Annandale Spanish Lake Mentor Orangeburg Aquia Springfield Middletown Spartanburg Brandermill Milford Summeryille Bristol NEBRASKA Pickerington Sumter i Burke Center Bellevue Reynoldsburg Taylors Burke Lake Lavista Springboro TENNESSEE Centerville Lincoln Springfield Chantilly Millard Toledo Chattanooga Charlottesville Omaha Troy Clarksville Chesapeake NEVADA Vandalia Hermitage Fairfax Wadsworth Hixson Franconia Las Vegas West Carrollton Jackson Franklin Farms Kinder Care Reno Westchester Johnson City Fredericksburg Sparks Westerville Kingsport Hampton NEW HAMPSHIRE Worthington Knoxville Herndon For information Xenia Maryville Leesburg about the Center Manchester Memphis Manassas Zanesville you,, lease NEW JERSEY Murfreesboro Midlothian Y P OKLAHOMA Nashville Montclair call 1-800-551-1500. Belford Broken Arrow Powell Newington ""c:R-CARE LEARNING CENTERS,INC. 3/86 Kinder-Care's exclusive educational programs magazine. Kinder-Care has constructed a full day provide unlimited opportunities for the development curriculum around the nature topics emphasized in of the TOTAL child.These age-appropriate programs the magazine. Ideas are suggested to teachers, are oriented toward the development of the child's along with a child's Activity Book which accom- social, emotional, physical and intellectual needs. panies the magazine. Three essential facets are combined to form Kinder- In addition, the pre-kindergarten children are Care's quality educational programs: enrolled in our Once Upon A Time ,. . . Happily •well-trained, caring adults Ever After program, which combines Kinder- 0 safe, healthy, developmentally sound Care's programming with a well-respected com- environment mercially produced system. The children are •age-appropriate learning activities offered pre-reading readiness activities through Our child-centered environment consists of the magic, mystery and excitement of classic classrooms which have been carefully designed selections of children's literature. Creative art, and furnished to enhance the creative and develop- science, music and other skill areas are also mental needs of young children.The room arrange- included in the curriculum. ment and activities are child-sized, placed at the The kindergarten-aged children participate in child's level and developmentally appropriate for the highly respected Beginning To Read, Write, each particular age group. Classrooms are bright, and Listen, a program of comprehensive, multi- happy, stimulating and designed to encourage sensory reading readiness activities. Language children to explore and learn at their own pace. activities in the areas of reading, spelling, hand- Each day provides a balanced schedule of writing and listening are correlated to provide a activities — quiet, active, group and individual parti- balanced approach.Mathematics Their Way is also cipation is planned, along with opportunities for used with our kindergartners.This activity-centered eating, resting and outdoor play. Kinder-Care's age- program helps children develop an understanding specific programs are built upon monthly topics and of mathematics through the use of real objects. In weekly themes, such as transportation, seasons, addition, kindergarten-aged children receive their colors, numbers, pets, safety, shapes and sizes. own subscriptions of the popular Weekly Reader. Infant care at Kinder-Care is individualized as Kinder-Care also tests each kindergartner in the teachers carry out the infants' schedules provided spring using the Metropolitan Readiness Test to by parents. Multisensory experiences in an atmos- assess skill levels. phere of warmth and trust form the foundation for Kinder-Care's very special program for school- the infants' healthy development. Daily routines are agers is entitled KLUBMATES — the after-school carried out with the focus on nurturing. Stringent fun achievement club.This program stresses group health and sanitation policies ensure proper environ- and individual activities which help children learn ments for encouraging babies' exploration and more about the world d in which they live. Opportu- learning. 6, nities to develop decision-making and leadership Toddlers and twos are encouraged to learn as skills are encouraged as the children participate in they actively explore the areas of their class earning achievement badges. rooms. Monthly curriculum ideas and activity Kinder-Care recognizes the importance of suggestions are sent to teachers of toddlers and I I coordinating home with center.Involving parents two year olds which emphasize gaining indepen- kil ..n their children's child care experience is vital. dence in skills such as toileting and self-feeding. Kinder Calendars,which are quarterly parent My Window On The World is Kinder- newsletters, "What We Did Today" notes Care's program for three year olds. Thisposted at the center and daily conversa- program combines the use of Your Big tions help keep parents informed of their Backyard,the National Wildlife Federa- children's activities, interests and tion's magazine for pre- achievements. schoolers, and materials Children at Kinder- specifically developed toKinder CareoCare are safe, loved and enhance the use of the learning. KINDER-CARE LEARNING CENTERS,INC.•P.O.BOX 2151 •MONTGOMERY,ALABAMA 36197.1-800-551-1500 KC 77G 3/86 v c N i d r.r Zol-7 —_ V I- GILL E.lo-� to � U..I os.cA B.7G Oto cL �. •: R -t"dr' oaf J bl1C y �r �A LT tv KFS I?5�j z �, i ;�'- A,�� kinder-Care 2 Sogo d t I�i�.t�.`C�A-• IZ� c`4\ •4• K E Y 37 1 Aj A ��S�la�.��2�i�-[� �tl.�� EA6Er�cr�T I-s F�arC�• �O \ \ I' � ' T !�I �E� � �% 20 F ,A � I j I I�1•/'' 26ElJElZ ISA�/A.IIABLE. �Cl�j6-% 1� ImoL)tk*z�1 �eS}I C X7. 0. rd/1eC ;W7ATE2 I�j b/A A�iL�I. EX/STI ->LG N� ®'I� Il1/SICJE�IIZ Gtjh 11 Q(� ��/ \� 1 •A�Ga✓E� 1"C'fG�IOL�I o N 15 SN x.71 OE O{= -a. I E�t.�E�Jre� <�r�/i�e 1�J slv�.111�.BLE'A--r—�,r over E;kC> I-IA"rCrIZ�-L(aS 15.da/A.I L.a•BLE � I LL 51�E- EX I�jTI J!a I5 loth- I�E-T�E"2 `� -46." LCL.d-rfo ESC'r�7Zloe O��Ot-ao1• I -T— r-- E S LE rt-4,v l L4BLE - -' rrz r 1 >+tA IAA21A�LE MAY BE 'Le. C Pr— �.ST I•�IA.T�o �.DA L 1'r�— I�i� f -j�OI LP T•r�T Eo0lr-?Ga LGY.64TIGrIS. II��J C� G� �� I14 o.0 n..+w I I, � I n c;_ 4 . E-- �gcATri� �SEo ��'�.�LTlor� vF I7�.11`�6�C Lor'• <.,��,��: I"-Zo L�3.TE: IZ-I-B� �.. s via� Oo G tta...� aw o.r. 10 11 D l gRK.2M. G N :3-2'Coil N 15` q'I I CL��22GYJt� C.CA`�I'ZCc1 now I I C� [I 7L7. -q u � I li a p D ' El Fl-=T LP t 7 ' m ' J41 GL-/��FZGZ�M N� 1 JN I i, FLOOR PLAN KP 135S _ .►� Vit;- �f 01 `_g f 4 4WL k I;a I. 1 G � • Y f r g CoQ F` O z � , 01 1r 1 �� 0 0 0 %1WC:;-P oma, � �P ; ,� � p D Q �'�y H, 7I T�.''G'i •^[1,r +';r 1�I r�, •IL_ :v;, f(,,��j� -- . --. o-':3,S r,�.'f�� :x`,2y4xV,.. A �v int,.. µo � c�}::: - �., .A I_13 �i ! ,`... �f.f ' .., e'... ® (' t?. � " �1 s�"` �' r' ",M�� , ry7,•:.... y. yy` Ii 4: 1 { c,til- � •�/ U. C.-• t c . : Feb.29-March4 THIS WAY, PLEASE . JUNGLE FRIENDS April 4-8 COMMUNITY HELPERS WHO WEAR HATS It= T�G'c • Monkey • Hippopotamus •Turtle Jif 4 • Fire Fighter • Police Officer • Nurse •Chef and Baker • Presentation of f:•� .l VLC • Elephant •Zebra • Lion CAPS FOR SALE SUMMER EMPHASIS WEEK •'�` KINDERGARTEN ENROLLMENT EMPHASIS WEEK �u ' LOOK FOR SPECIAL DISPLAYS FEATURING SUMMER EVENTS . March?-11 JUNGLE COLORS AND SOUNDS ABOVETHE PLAYING IT JUNGLE MATCH April ll-15 SEASONAL REVIEW JUNGLE FLOOR SMART 7'+__�[-y�,f' 0 TF RE •Spring • Summer • Fall •Winter •The Seasonal Cycle FoRLE•Climbing Colors • Name Game 7RE�FIDVL Story Review - SC�NDc gjoncCA� N.WEEK OF THE YOUNG CHILD March 14-18 MOVING AIR THINGS THAT WAYS WE PLANNING AND PREPARING THE SITE A TASTE OF THE BEGINNING OF SOMETHING GOOD WHISTLE April 18-22 THE FUTURE �►r u m • Pinwheels • "Balloon Ball" • "Whistle Freeze" • Move to the Music. •Shoebox Skates ^ 2A+ DOM& r�pOOT- •Jazzercise Dirt Art • Save Those Seeds. • �� t • 1� � A �bRwir Plant a Garden. .� ST.PATRICK'S SES YA �"�� �^ I DAY , d ,. PSS'a LISTEN TO DOLLY RE - EMPHASIS WEEK `��' � • •' • 6 March 21-25 TRAFFIC FOLLOW ME! PLENTY OF PETS NOISEMAKERS SHAPELY SOUNDS ALL AROUND SHADOW SAFETY / April 25-29 SOUNDS FIGURES Traffic Light ` 1� •Create a Pet. Pet Homes Pet Show 1 Pancakes . +a White Birds X O 4 • Shadow Skits tAX1. 1stQ 400 O 00 - -- "'T�'r ' :�•, - Cl'•'Cay O J_. March 28-April1 COLOR PEDDLER SPRING COLORS MONKEY l 1 BUSINESS �oR • "Colored Textures" • Letter Leaf Match Ln o DA I� � Tog, ti ' fr14A CCupon ON ® �atibte .. yS Q� ORE �.; Volume 9,Number 1, 1988 f-iAPPI LYEUER AFTER T d � Happilly E er Calendar is published quarterly in the interest of After FAMILY AWARENESS MONTH Kinder TTTTTT TSS 7T /� .IN ":� '�R ,p- p *•=d, e -4 ,T, `t, 4'" 4 "'I r�� �Y MV V ll l] `r.V UP• • • ll iL/Y\lY RIIgX V3L/VV , II r ,rte May 2-6 BIG VOICES, ONCE UPON A T I M E F O R RHYMES PUPPET SHOW A child who has mastered walking is filled with fearless2 ® ® F LITTLE VOICES TIME,A LONG FOR SPECIAL curiosity. The impulsive qualities of crawling, climbing, TIME AGO I • Rhyming Puzzles PEOPLE . o R!K searching, opening drawers and grabbing can lead an 6` • ' Mothers Day Tea independent two year old into potentially dangerous situations. The young child feels no sense of danger. , i®Irr7�rw�:�C�.k�����trtErs��(elksli„�{ During this active period of development, a child can climb out a window or out of his crib with the greatest of "k'`` `t ' ' it';i�o ii .� tom: Ag ease; chew anything he can get his hands on including - ' A-B-C,1-2-3 D-E, F-G, H-I, J-K, a May 9-13 electric cords;stick pins in live outlets;open doors and fall x M LOOK AT ME. JUMP WITH GLEE. REACH FOR WHAT DO YOU THE SKY. SAY? downstairs;reach for drugs and poisons; choke;or drown Rhyming Colors , in his bath or the family swimming pool in the time it takes 1� /• a Mother to pick up the phone and say, "wait a minute,I \ 1 need to get my little one." Youngsters are unbelievably 4M4 Ovjo s quick. )1o) j`sw 1aw w 4h4+1)z <,,,Auw tpfitfg ""For &JfVE According to the 1987 edition of "Accident Facts" �� ticflni rt'.; •1 � May 16-20 L-M-N-O, P-Q, R-S, T U-V, W-X Y-Z, published by the National Safety Council, accidents were y READY,SET,GO! I LOVE YOU! TAKE A GUESS. WHAT DO YOU I M AS HAPPY t; Ii N) 1� ®. SEE? AS CAN BE! 4 ourthe maThe jor ca five of majdeaor causein s ween re motor es one through l � � �� use � qt • Pink Patterns • My Kinder-Care •What's Missing? • Rhyming Dominoes .�. accidents, fires/bums, drowning, ingestion of food) * r N Family (J j object and falls. In children under age one the major «ry � 0 v causes of accident fatalities were suffocation, motor x0 , ,,;z„a,;rZ�r,ttti1 T� �tett�iamct�r Fc 1XV10 vehicle accidents, ingestion of food/object, fireslburns, .0?r i41��►:y:t ,����� �a-��,�i.i t�� � ��4y �,� «��.,�,i,�, �,z� W and drowning. Ma 23-27 THE TERRIBLE IRA SLEEPS DAVID AND DOG WILLIAM'S DOLL TELL ME A MITZI ,a�lhy �1��� i ai.' i c,z nint.Yu'r+.t� .,r��ili t�'ft�°iR - y THING THAT OVER It's ironic that what should be the most secure o,; : o o'Z HAPPENED AT environment for your child can also be the most life- If even one "NO” has popped up in answer to the OUR HOUSE threatening. The home environment poses the greatest questions,make changes immediately. N� hazards to your child. Accidents have causes and an be prevented by protecting SaoRES your child during this very active, curious period of his �I P, tmTWV,. 10 1ir; ' r It±! (ICT6;i_i j1.� life—often referred to as the`age of accidents'.Teach him •`,i<` il, ,� L�t� �,iti4', �: +�t i�r,; ;,_X k '�,� z�rim-, 'r; the limits of his own freedom by practicing the loving discipline that is essential to every child's security and protection.And last but not least the best way to prevent `ZT �'. . IV", NI .. .ice WJu�iay Ali' T� r /yam. s ' 1 �_ .,,.,:, .... L ....:;� ..: .-.... � ,� ;: ; ..�,,,� � . ,,. X , �.=iir�h„•;� ,r, ,r.,,�,, accidents is t0 accident-proof your home and ensure your child's safety during this critical learning period of his life. '.� 4i[� i ►rill uf�;f,Wi t4. l;Iicl.3 l'te i++ vm 1',I r 1,;)' `ki+ c,wn t Kinder-Care, we know that the brightest 6SAs a single parent,I have a true feeling of futures begin early. With careful planning, and confidence every time I drop my Charlie off the loving support of responsible, concerned INDER-CARE'S UNIQUE "LEARNING professionals in a safe,secure and loving environment. LADDER"MEETS YOUR CHILD'S HILDREN ARE GIVEN THE Kinder-Care...While I'm at work,I know he'sC EDUCATIONAL NEEDS FROM SIX CONFIDENCE AND ENTHUSIASM THEY FIVE-YEAR-OLDS expand their interests and --:- -—.- —., well taken care of.I really appreciate the great WEEKS*TO 12 YEARS,At Kinder-Care,infants, TWA NEED TO REACH FOR THEIR DREAMS, social skills through activities such as acting, clay _ people at Kinder-Care. preschoolers, even youngsters m YEAR-OLDS enter the GOAL(Growth 0 modeling, music appreciation, woodworking, aint- l�#Vii , grade school are tunities for Achievement and Learning) PAor m and drawing. Our Beginning to Read, Writ and taken through a carefully structured learning �program and Use this child-care checklist C.E.Atlanta, Georgia Ligsten and Mathematics Their Wa g pro- learn through Discove Area gl gram that allows for each individual's potential, Discovery group activities to y programs help to ode you, " "' needs and readiness. develop self-control, cooperation and communica- Prepare them for early success in first grade. RESH-AIR FUN AND EXERCISE. u0 These learning dons skills. When they're ready for toilet training, 41 Exercise is important not only as an outlet for g programs take advantage of the the staff approach this phase with SCHOOL-AGE CHILD Choosing the best child-care arrangement for our child is skills children generally acquire at certain a P h patience and REN have their own clubw.. not an easy task. Options abound Y all that energy, but to develop muscle strength g Y q ages. But understanding. that meets daily before and after school—full time in check-list may help and they all differ. This r and coordination. within these broad outlines, every child's talents � Y p your selection process. and abilities unfold at a different rate. summer—in their own separate area of the center. THE CENTER At Kinder-Care, there's plenty of time and KlubmateS''"'offers these six to 12- R ��% space for outdoor play. And an excidn variet of That's why Kinder-Ca re teachers are trained year-olds oppor- " ❑Is it licensed? -� g Y to be observant and adaptable. Every teacher is � tunities to earn 40 different achievement badges,from equipment specially designed to rigorous safety ❑Is the center clean,bright,the Y encouraged to add personal touches to the pro- First Aid to Space Exploration, Ecology to Sports. "'" standards for maximum challenge. � ,,, Our van takes them to and from school and on -_. - g erful and child-oriented? ���` "" grams, while bringing out the particular talents ❑Do the rooms provide safe toys and educational Many centers even have splash pools where closely supervised, children can experience and of each child through individual attention and fascinating field trips. materials appropriate for each age group? encouragement. �1 Smiles of pride. Kinder-Care's positive approach ❑�e strict handwashing procedures explained and practice water safety skills during warmer months. OU'RE ALWAYS INCLUDED, to learning* You'll never ggives children a strong sense of reinforced to help prevent the spread of colds and TAFF YOU CAN DEPEND ON.The people "Infant care may not be available a[all centers.Call for more information. feel left out of this colorful parade of learning accomplishment. other illnesses? who care for your child must be 100% trust- VERY CHILD IS GIVEN THE Yand adventure. Each quarter you'll receive a The highest Kinder-Care Scor ❑�e emergency procedures and phone nu AFE AND SOUND. Our child-care rofes- calendar adventin themes es numbers P worthy.At Kinder-Care, we've developed BEST POSSIBLE START. g emes and subjects for the Auditory category. This is were in the clearly posted? ers sionals are at our state-licensed centers from � _,.� , n' g r1'• a section of the main test EJ the in posted?Are Begin- early in to early evening. careful staff selection methods to identify individuals INFANTS are cared for in a bright room .` next three months. And your child's teacher will that most clearly reflects the emphasis of t who are naturally warm and responsive to young designed to provide both stimulation and security. i prepare a progress report three times a year, set- Hing to Read, Write and Listen he Begin- balanced? e the meals nutritionally Our centers are designed with child-size equip- ting time aside to discus program—an P- children. Our Infant Activity Daily Report covers every detail sit with you. part of Kinder-Care'sPreschoolP an integral ❑Are there formal procedures ment to encourage learning in a safe environment. gsfor the rel We also provide special training about the child's eating and sleeping, as well as hislearning programs. a child? ease of Always, Kinder-Care requires of its staff, andevery g programs to strictly enforces, the highest standards of cleanliness space effec el aspecto hel heir work, from managing progress in motor, socialization and language skills. It's a warm,loving atmosphere at Kinder-Care. ❑Does the outdoor play area have equipment that Y, P g Young children grow Stacking toys strengthen eye-hand coordination. �^°° Every three months, there's That makes all the children feel welcome encourages active play and large muscle J anhygiene. and develop by means of kindness, encouragement �~'"' a detailed progress report and a conference with your home:The staff members are and at development? OOD FOR A GROWING CHILD. Your and praise. THREE-YEAR-OLDS learn all about the world child dedicated ❑Is there a through the program,My Window on the World. They s teacher. and vehicle for field trips and school transporta- child needs the right foods for a growing body. K��d_ eta ideally suited for this work. The ' tion?Is it safe and e So we provide a hot lunch eve da plus every y, p receive the National Wildlife Federation's children's _" a surrogate family to my son.I can leave my child THE STAFF equipped with seat belts for each midmorning and afternoon snacks. magazine, Your Big Backyard, which teaches simple `- 0. Menus are planned b counting, colors and shapes, making comparisons at Kinder-Care and enjoy a peace of mind that I P y qualified food specialists, �_ to supply the balanced nourishment a preschooler and noting differences between things found in nature. �� know every parent wants. ❑Is the director a professional person who inspires needs.Some centers even include breakfast for early FOUR-YEAR-OLDS enjoy a variety of la confidence? arrivals. And empty calories such as candy bars are � ,� �'' Y playground ATIONAL TEST RESULTS SHOW B.R.Boston,Massachusetts ❑Is the staff warm and loving, but fine and flexible? i "` and Discovery Area activities designed to stimulate KI ❑ taboo(except for the occasional slice of birthday cake!). ' '' ` KINDER-CARE PRESCHOOLERS Does the staff have training in child care methods Weekly menus are posted near the center curiosity and further social, physical and emotional BETTER PREPARED FOR developmental learning? ds and growth. The Once Upon a Time...Happily Ever FIRST GRADE, Through national tests, we've entrance, so you can keep track of what your child J _ After program prepares them for reading readiness been able to ❑Does the staff respect each child as an individual, and eats day by day. - � f�l . � � � ; ��,.. Ak by using story sheets, concept boards and activ- some of our learning programs.We're effectiveness of teach children to respect the rights of others? Daily fare at Kinder-Care:Agood hot lunch,plus ity books. ❑Is the staff sensitive to the needs and feelings of two nourishing snacks. , proud to report that Kinder-Care children and parents? children come through with fl - ❑Are parental visits, questions, communication, g •, .. mg colors! Y involvement and comments welcome? kation, The test was the Metro- - ❑Is the staff enthusiastic about their Patient, loving, ` �- responsibilities? ng, always ready with the right word of I like the infant room.It's very Clean,the food politan Readiness Test, an encouragement. That's aKinder-Care teacher. acknowledged professional �- . is hot and nutritious,the staff are all qualified indicator of how w TT �` THE EDUCATIONAL PROGRAM ARENTS WELCOME ANYTIME. Some led well pre- »� have a written, anne r S and give my child special attention.Kinder-Care r pared a child is for the first LJ Does the center .--- child care centers regard visiting - r - ` , �_ action? p p �. you can see in Planned ro am o • g parents as a , grade. It consisted of four skill ❑Are the learning programs designed for each a n necessary inconvenience. Not Kinder-Care. is easily the best child care center in our area. Auditory, '° '�- group? age areas: �� � - /`►';; Directors and staff are proud of their centers, and Visual, Lan- , guage and Quantitative Skills. / ❑Is the staff supported by professional resource people, �� � l eager to show them off to interested parents and chil- B.W.Tampa,Florida � ,,� training and materials? µ. dren. You're welcome to visit Kinder-Care anytime. TODDLERS enjoy safe surroundings in which to i wp L = My hUSband and I especially eci " s there appropriate stimulation and nurturing of the What will you find. Love. Understanding. "` ❑I Warmth. Encouragement. Above all, caring. The develop new skills. Simple child development toys ?' like y p all ;, encourage pushing pullet things that are the hardest to provide when you're not � e the afterschool program - � infant/toddler age child? � � r g, grasping, stacking and `--- ... � . ' 1 s ate e r ❑Is there an appropriate ri around.Perhaps that's how we earned our most cher- tossing. There are plenty of songs, chatter and a and the transportation pro- _� �-� , emphasis on outdoor Physical fitness? P m h play and e ished accolade: "the closest thing to a mother's love:' vided.This is a real lifesaver f games, and lots of places for toddling, soft tumblin ❑Is there an active,fun summer program? ' and taking first steps. g Absorbing , ❑Are the educational Programs designed to Prepare a e rY ng puzzles and special games help children t0 workin parents. P �• � P P - », -•----- _ develop at their own pace. g P child for Primary education? C.G.Phoenix,Arizona r Please note that licensed, center-based care offers man advantages: service 52 weeks a year...equipment and Y , A buildings designed for children..,and an administrator and staff trained to care for young children. Courtesy of Kinder-Care Learning Centers,Inc. Who is der-Care? • • , The first Kinder-Care center opened its doors in 1969. • 1 1 1 Today there are more than 1,100 centers in 40 states 1 _ er-Care Visi Kind 1and two Canadian provinces. 1. � , � Every day,over 100,000 children are cared for at 1 ' their neighborhood Kinder-Care.Andover the years, • 3`x n have enjoyed the ' children today• � 1 1 1 more than half a million • benefits of Kinder-Care's cheerful centers and unique preschool learning programs- 11 1 • 1 1 ' Today,Kinder-Care is the world's largest private child care organization.And the bright red bell tower emblem continues to symbolize,as it did from the very first day,quality child care. HINDER-CARE'S OPEN DOOR POLICY: Parents are always welcome and encouraged to visit anytime. # All m, „ b • I 1 EA s x, + k9 v � t � fih k "�F ✓ r k� c w + Kind"rgV Kinder-Care Learning Centers,Inc. $ 2100 Presidents Drive -' Montgomery,AL 36116 nt rt rCa fie_-----"� _• ,_' 6 . wS ' 1 n, KINDER-CARE ANNUAL REPORT 1986 I I I �4 ` � U 4 ' t i i. 111 a hi rit Ali .ti, 1y F V� SERVING THE GROWING NEEDS OF TODAY'S 4 T i KinderCare Kinder-Care Learning Centers,Inc. 2400 Presidents Drive Montgomery,AL 36116 (205)277-5090 i FINANCIAL HIGHLIGHTS OPERATING FACILITIES AS OF OCTOBER 1986: Fiscal Year Ended August 29,1986 August 30,1985 ° o •e Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $231,141,517 192,173,883 Earnings from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,336,175 23,745,473 °• o Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,336,175 24,598,671 Earnings per share(1): Earnings from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .61 Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .63 0 0 ° •e • e o• Weighted average • .e common shares outstanding(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,687,460 39,264,857 (1)Adjusted for stock split in May 1986. e• • O • • NASDAQ Market Prices °• ee .• Price Range* •• 00 •• Period High Bid Low Bid Dividend •• Fiscal year ended August 30,1985: °• •• ee •• •o 00 First Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1278 93/4 $.01125 e° Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131/2 101/8 .01125 oe Third Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14% 113/4 .01125 Fourth Quarter 161/8 1378 .01125 00 •• •o $.04500 0• •O Fiscal year ended August 29,1986: °° First Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15% 121/8 $.01125 Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 115/8 .01125 of oe Third Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173/4 133/8 .01125 00 Fourth Quarter 14% 12 .01500 $.04875 *Stock prices and dividend per share amounts have been adjusted for a three-For-nvo stock split in September,1984 and a four-for-three stock split in May,1986.Stock prices have been rounded to the nearest one-eighth after adjustment for the stock splits. a KINDER-CARE LEARNING CENTERS,INC. Revenues Net Earnings Day Care Centers .SYLVAN LEARNING CORPORATION e PIONEER WESTERN $240,000,000 $35,000,000 1,200 CORPORATION °CENTERBANC 30,000,000 SAVINGS Day Care Centers: 200,000,000 1,000 ASSOCIATION •Alabama. . . . . . . 39 •Maine. . . . . . . . . . 1 •Oregon. . . . . . . . 10 •Arizona. . . . . . . .21 •Maryland. . . . . . 11 •Pennsylvania. . . . 27 25,000,000 •Arkansas. . . . . . . . 8 •Massachusetts. . . 29 •Rhode Island. . . . 1 160,000,000 800 F •California. . . . . . 63 •Michigan. . . . . . 21 •South Carolina. . 25 •Colorado. . . . . . 23 •Minnesota. . . . . .18 •Tennessee. . . . . . 22 20,000,000 •Connecticut. . . . 17 •Mississippi. . . . . 11 •Texas. . . . . . . . . 129 120,000,000 600 - •Delaware. . . . . . . .4 •Missouri. . . . . . . 45 •Utah. . . . . . . . . . . 6 •Florida. . . . . . . . 64 •Nebraska. . . . . . . 10 •Virginia. . . . . . . 43 15,000,000 •Georgia. . . . . . . .77 •Nevada. . . . . . . . . 7 •Washington. . . . 28 •Illinois. . . . . . . . 54 •New Hampshire. . 1 •Wisconsin. . . . . . 16 80,000,000 400 •Indiana. . . . . . . . 22 •New Jersey. . . . . 19 10,000,000 •Iowa. . . . . . . . . . . 7 •New Mexico. . . . . 8 Canada: •Kansas. . . . . . . . .17 •North Carolina. . 43 •Ontario. . . . . . . . .9 40,000,000 200 •Kentucky. . . . . . 13 •Ohio. . . . . . . . . . 55 •Manitoba. . . . . . . 4 5,000,000 •Louisiana. . . . . . 22 •Oklahoma. . . . . . 16 0 0 0 1982 1983 1984 1985 1986 1982 1983 1984 1985 1986 1982 1983 1984 1985 1986 i OFFICERS DIRECTORS PEAT Peat,Marwick,Mitchell&Co. KINDER CARE LEARNING CENTERS,INC. Aaron M.Aronov Certified Public Accountants Perry Mendel,Chairman of the Board and Chairman of the Board,Aronov Realty MARWICKFinancial Center-Suite 1200 Chief Executive Officer Company,Inc.,Montgomery,Alabama Birmingham,Alabama 35203 Richard J.Grassgreen,President and Chief Fred Berman Operating Officer President,Berman Bros.Iron&Metal Edward H. Gibson,Executive Vice President Co.,Inc.,Birmingham,Alabama The Board of Directors and Stockholders of Administration William L.Gauntt Kinder-Care Learning Centers,Inc.: Eddie O.Nabors,Senior Vice President of President,Thornton,Farish&Gauntt,Inc., Finance/Treasurer Montgomery,Alabama We have examined the consolidated balance sheets of Kinder-Care Learning Centers,Inc.and subsidiaries as of August 29, Charles B.Paterson,Senior Vice President/ Richard J.Grassgreen 1986 and August 30,1985 and the related consolidated statements of earnings,stockholders'equity,and changes in financial General Counsel President,Kinder-Care Learning Centers, position for each of the years in the three-year period ended August 29,1986. Our examinations were made in accordance with Eldon L.Wyatt,Western Vice President of Inc.,Montgomery,Alabama generally accepted auditing standards and,accordingly,included such tests of the accounting records and such other auditing Operations Edward L.Lowder procedures as we considered necessary in the circumstances. Lewis H.Figh,III,Eastern Vice President Formerly Executive Vice President, In our opinion,the aforementioned consolidated financial statements present fairly the financial position of Kinder-Care of Operations Alabama Farm Bureau Mutual Casualty Learning Centers,Inc.and subsidiaries at August 29,1986 and August 30,1985 and the results oftheir operations and the changes Leonard Kuhn,Vice President of Development Insurance Company,currently Real in their financial position for each of the years in the three-year period ended August 29,1986,in conformity with generally Dan E.King,Vice President of Human Estate Investments accepted accounting principles applied on a consistent basis. Resources Perry Mendel Ann Muscari,Vice President of Corporate Chairman,Kinder-Care Learning Centers, of Communications Inc.,Montgomery,Alabama Dr.Laurene Smith,Vice President of Mark Sabel PEAT,MARWICK,MITCHELL&CO. Educational Research and Development President,Sabel Steel Service,Inc., Joel Sockwell,Vice President of Properties Montgomery,Alabama October 17,1986 Judith Adorno,Region Vice President Larry E.Wallock Alfred N.Naddaff,Region Vice President Formerly President,Ben.R.Goltsman& Jeanette Mann,Assistant Secretary Company,Montgomery,Alabama,currently Betsy Echols,Assistant Secretary Investments SYLVAN LEARNING CORPORATION NASDAQ Symbol: (NASDAQ SYMBOL SLVN): KNDR(Common Stock) W.Berry Fowler,Chairman of the Board The common shares of Kinder-Care trade in the F.Eugene Montgomery,President over-the-counter market under the NASDAQ PIONEER WESTERN CORPORATION symbol KNDR. W.Scane Bowler,Chairman of the Board Corporate Offices and President 2400 Presidents Drive John R.Kenney,President and Chief Executive Montgomery,AL 36116 Officer,Western Reserve Life Assurance Co. of Ohio Transfer Agent and Registrar First Alabama Bank P.O.Box 5260 Montgomery,AL 36103-5260 Form 10-K The SEC Annual Report Form 10-K is available without charge upon written request to: Eddie O.Nabors Senior Vice President of Finance/Treasurer . Kinder-Care Learning Centers,Inc. P.O.Box 2151 Montgomery,AL 36197 Telephone:(205)277-5090 Sylvan '/��`/�C®/��R __ FA Learning in��®a LCorporation KinderCare �PIONEER WESTERN ® CORPORATION 24 TO OUR FRIENDS AND SHAREHOLDERS: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES We are pleased to report the results of another (10)Quarterly Results(Unaudited) Property,plant and equipment values as stated in constant record-making and exciting year for Kinder- A summary of the unaudited results of operations for each dollars of approximately $267,000,000 at August 29, Care.In addition to achieving record levels of quarter of 1986 and 1985 follows: 1986 are not materially different from the current cost revenues,earnings and earnings per share,there Fiscal First Second Third Fourth of these items.Income would not,therefore,be were several events that vastly improved our Year 1986 Quarter Quarter Quarter Quarter significantly different if adjusted for changes in ability to serve the growing needs of today's Total revenue ....$53,402,886 70,116,172 57,459,628 50,162,831 specific prices. �I family. °Pn om .. 11,076,949 9,229,365 7,319,098 (786,196) Depreciation expense has been calculated using'den Revenues for the fiscal year ended August 29, Net earnings..... 9,923,568 8,676,862 9,639,195 5,096,550 tical depreciation techniques and asset lives as used in the - 1986 were $231,141,517,an increase of 20% Earnings per primary financial statements.The increase in deprecia- 1 common -� over revenues of$192,173,883 for the previous � share......... 22 .19 .22 .12 tion expense results from the adjustment of property, tlefiscal year.Earnings from continuing operations plant and equipment values for the effect of general increased 40%to$33,336,175 from$23,745,473 Fiscal First Second Third Fourth j Year 1985 Quarter Quarter Quarter Quarter inflation. v and earnings per share from continuing opera- During periods of inflation holders of monetaryassets f t10riS lncreaSed 23%t0 $.75 from $.61 with an Total revenue* ...$43,850,369 56,109,456 47,520,752 44,693,306 g h > Operating such as cash and fixed claims to cash,lose general ,> increase of 14%in the weighted average number income* . 9,273,434 6,899,839 6,746,116 1,151,949 UIChbecause will buy less at the end Of 1 Net earnings..... 6,702,264 6,969,886** 6,713,782 4,212,739 purchasing g power ecause cash Y of common shares outstanding. Earnings per the period than at the beginning.On the other hand, There were several significant transactions or common holders of monetary liabilities will benefit since the events duringfiscal year 1986.The major ones share ......... 19 19** 16 09 Y J obligations will be settled with dollars of lower purchasing are summarized in the following paragraphs. *Excluding discontinued operations.See Note 2. power.In 1986,1985 and 1984,the company had an **Includes gain from sale ofdiscontinued operations of$1,480,000 or$.04 per PIONEER WESTERN CORPORATION common share. excess of monetary liabilities Over monetary assets resulting Effective in April 1986,Kinder-Care acquired in an unrealized gain. Pioneer Western Corporation(PWC)from (11)Subsequent Events Certain additional information stated in average dollars Kansas City Southern Industries,Inc.for At its meeting on October 10,1986,the Board of Directors for the current year is presented below for fiscal years approximately $70,000,000.Pioneer Western approved a resolution to change the corporate name to 1982 through 1986.Corporation,headquartered in Clearwater, Kinder-Care,Inc.,and to reorganize the Company's day Florida,is a financial services corporation care centers into a wholly-owned subsidiary,Kinder-Care Five-Year Comparison of offering life insurance and related products, Learning Centers,Inc.The name change is subject to stock- Selected Supplementary Financial coupled with mutual funds,stock and bonds. holder approval at the annual meeting on January 22,1987 Data Adjusted for Effects of Changing Prices The Board also approved changing the corporate year (Dollar amounts in thousands,except per share data) PWC's major subsidiary,Western Reserve Life end from August 31 to December 31.All the Company's Assurance Co.,has more than 1,500 agents of subsidiaries will adopt the new year end. Fiscal Year Ended which 1,100 are NASD registered agents.In Aug.29, Aug.30, Aug.31, Sept.2, Sept.3, November 1986,Kinder Life Insurance Com- (12)Inflation Accounting(Unaudited) 1986 1985 1984 1983 1982 pany was merged into Western Reserve with the The consolidated financial statements are presented in operating Revenues combined company having approximately accordance with generally accepted accounting principles As reported ..........$231,142 192,174 156,344 128,051 116,467 $4 billion of life insurance in force. and thus reflect transactions in the dollar amounts in which In constant Also in November 1986 Western Reserve they were incurred. Earnings dollars..........$231,142 197,120 166,427 141,710 133,643 > > Earrnings from continuing began marketing its products to the Kinder-Care The accompanying supplemental information includes operations per common family of employees and customers.We expect various assumptions and estimates,and therefore,should share As reported......$ .75 .61 .48 ** ** these efforts to increase the profitability of Pio- not be thought of as precise measurements of the assets and 1n constant p ty 1986 dollars..........$ 75 .63 .51 neer Western in the 1987 fiscal year and beyond. ssets approximations of the price changers that have occurred in NAseported ..........$234,906 202,575 98,889 ** ** expenses involved.Rather,the represent reasonable CENTERBANC SAVINGS ASSOCIATION the business environment in which the Company operates. In constant 1986 dollars..........$234,906 207,789 105,267 ** ** In May 1986,Kinder-Care entered into a defin- Dividends per itive agreement to acquire the outstanding stock Statement of Income from Continuing Operations Common Share* of Centerbanc Savings Association,a state Adjusted for Changing Prices As reported ..........$ .04875 .045 .045 .039375 .03 (Dollar amounts in thousands) In constant August 29, August 30, August 31, 1986 dollars..........$ .04875 .046 .048 .043575 .034 1986 1985 1984 Market Price per Share at Year End* Income from continuing operations As reported ..........$ 13.75 15.375 11.125 11.875 4.125 as reported in the income statement $33,336 23,745 16,633 In constant Adjustments to restate depreciation 1986 dollars..........$ 13.75 15.771 11.843 13.142 4.733 expense for the effect ofgeneral Average Consumer inflation (486) (1,323) (1,352) Price Index .......... 326.8 318.6 307.0 295.3 284.8 Income from continuing operations adjusted for changes in general *Adjusted for stock splits in 1982,1983,1984 and 1986. inflation $32,850 22,422 15,281 **This information for fiscal years ended prior to August 31,1984,is not readily determinable and is not required by Statement No.33. Gain from decline in purchasing power of net amounts owed $ 2,399 3,611 3,242 I ' I 2 23 f NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES (6)Subordinated Debt(Continued) For the three years ended August 29,1986,rentals under chartered savings and loan association headquar- million to $170 million by increasing our (d)6%Swiss Franc Subordinated Bonds due the leases charged to expense aggregated $15,579,093, tered in St.Petersburg,Florida.This acquisition back-up letter of credit facilities.Our effective April 11,1996 $13,418,325 and $13,441,553. is further development of the financial services interest rate(including fees and other costs)on In April 1986 the Company issued 62,500,000 Swiss area of our business and will have a positive our commercial paper program averaged approxi- Franc 6%Subordinated Bonds,due April 11,1996.This ($)Common Stock effect on our earnings.We are excited about the mately 100 basis points below the prime rate issue is subordinate to the Company's other debt except The Company's Common Stock was split three-for-two on potential for cross-marketing of products and during the fiscal year. the 61/4%Convertible Subordinated Guaranteed Deben September 5,1984 and four-for-three on May 22,1986, services between Pioneer Western and In addition,there were several management ture with which it has equal right of payment.The effected as stock dividends.All stock option data and earn Centerbanc and the offering of additional prod- changes,particularly relating to the day care bonds may be redeemed at the Company's option prior ings and dividend per-share amounts in the consolidated ucts and services to the customers and employees operation.More detail of these changes is to maturity without penalty.The indenture relating to financial statement and notes to consolidated financial state- of Kinder-Care. included in the following pages. the bonds contains various restrictions pertaining to ments have been restated to give effect to the stock splits. Centerbanc,which has 18 offices in the payment of dividends.At August 29,1986,no portion On October 15,1981,the Company adopted an Incentive Florida counties of Pinellas,Hillsborough, CURRENT AND FUTURE DEVELOPMENTS of the Company's retained earnings was restricted. Stock Option Plan under which key employees may be Pasco,Hernando and Marion,had total assets At the stockholders'meeting on January 22, In conjunction with the issue the Company entered granted options to purchase up to 666,666 shares of the at June 30,1986 of approximately$542,000,000. 1987,we will seek approval of a corporate name into a currency exchange agreement with a major Company's Common Stock at the fair market value of the The acquisition is expected to be consum- change to Kinder-Care,Inc.In addition,the banking institution.Under the agreement the shares on the dates options are granted.The options are for mated near December 31 1986 at a cost of corporate year end has been changed from Company's exposure to fluctuations in the issuing a term of five years and become exercisable to the extent of approximately$36,500,000. August 31 to December 31 and a new wholly- currency has been avoided.The effective rate for the 20%of the number of optioned shares in each of the first owned subsidiary,to be named Kinder-Care o five ears after the rant cumulative) Through August 29 SYLVAN LEARNING CORPORATION Learning Centers will be formed to issue is 10.5/o. Y grant, Y• g g � g Inc., 1986,108,196 options have been exercised(at prices ranging During the 1986 fiscal year,Sylvan Learning operate all of our day care centers. (7)Commitments and Contingencies from $3.225 to $12.84),170,821 options are outstanding Corporation began opening Company-operated The corporate name change and reorganiza- Leasing Arrangements (at prices ranging from $3.225 to $14.91),and 387,649 centers in addition to continuing to sell tion will allow Kinder-Care,Inc.to better serve The Company conducts a major part of its operation from options are available for grant. franchises.At fiscal year end,there were 42 as a holding company for its primary operating 739 leased day care centers.All of the leases are classified Company-owned centers and 243 franchised subsidiaries.Day care will continue to be our as operating leases.In most cases management expects that (9)Supplementary Information centers operating in 41 states and two Canadian lead business with the financial and educational in the normal course of business leases will be renewed or The following amounts were charged to expense in the provinces. services aiding and supporting this division.This replaced by other leases. periods indicated: In July 1986,the national headquarters of reorganization will aid the operation and future In April 1986,the Company entered into a sale/leaseback Fiscal Year Ended Sylvan was moved from Bellevue,Washington financing of the growth of each of the compa- transaction involving 205 of its operating centers.Net August 29, August 30, August 31, to Montgomery,Alabama,and specifically,into nies,enabling Kinder-Care to maintain its proceeds from the sale/leaseback amounted to approxi- 1986 1985 1984 the Kinder-Care headquarters building.This will current position as the leader in the day care mately$75 million after retirement of approximately$25 Maintenance and enable us to more efficiently and effectively industry and continue its record growth in reve- repairs $9,964,973 8,435,354 7,288,081 provide management support to Sylvan. nues,earnings and earnings per share. million in debt related to the centers.The primary terms of the leases are five to seven ears with two five-year renewal Property taxes and Y Y 541 FINANCING DEVELOPMENTS Sincerely 607 3 014 913 4 991 54, , , , , , options and the option to repurchase at the original sales licenses In April 1986 Kinder-Care completed a sale/ Y Y ours ' price,on renewal dates if certain conditions are met.If the Advertising costs $4,538,398 4,214,529 2,958,263 P centers are not repurchased at either option date,the leaseback transaction involving 205 Kinder-Care Q � Company has guaranteed the value of the centers up to Accrued expenses include: centers in 31 states.The sales price was $100 seventy-five percent of the original sales price.The rent on August 29, August 30, million and the net proceeds after retirement of these leases varies based on current interest rates. 1986 1985 existing debt on the properties was approxi- Perry Mendel The following is a schedule by years of future minimum Taxes,other than income taxes ...............$2,022,144 2,025,073 mately$75 million.A portion of the proceeds Chairman of the Board rentals wired under operating leases that have initial Compensation ........................... 2,000,000 — was used to purchase Pioneer Western Corpo- g Rent ................................... 1,553,782 — ration.The lease provides Kinder-Care with an or remaire P qning non-cancellable lease terms in excess of one Interest................................. 560,000 1,517,731 option t0 purchase the properties at the end Of year as Of August 29,1986: Other 803,234 924,306 P P p p $6,939,160 4,467,110 the lease term. Year Ending In May 1986 Kinder-Care completed an Y � P Richard J.Grassgreen August 28,1987 . . . . . . . . . . . . . . . . . . . . $ 21,218,000 offering in Switzerland of 62,500,000 Swiss President September 2,1988 . . . . . . . . . . . . . . . . . . . 21,187,000 Franc 6%Subordinated Bonds due in 1996. September 1,1989 . . . . . . . . . . . . . . . . . . . 20,819,000 Simultaneously,we entered into a Currency August 31,1990 . . . . . . . . . . . . . . . . . . . . 20,378,000 Exchange Agreement allowing us to exchange August 30,1991 . . . . . . . . . . . . . . . . . . . . 18,791,000 the proceeds of the offering for U.S.dollars and Subsequent years 133,493,000 to fix our liability in U.S.dollars at the fixed rate Total minimum payments for the 10 years of approximately 10.5%. During fiscal year 1986,we also increased our required $235,886,000 ability to issue commercial paper from $120 22 3 I KINDER-CARE LEARNING CENTERS,INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES In July,1985,the Company issued 130,000,000 Swiss Franc per share to $12.50 per share($5.3625 and $4.6875, 53/4%debentures due July 29,1995.The debentures were respectively,after adjustment for stock splits)for any issued in Europe and have not been registered under the conversions into common stock on or before December United States Securities Act of 1933.The bonds are callable 30,1982.At December 30,1982, $30,234,000 of such at the Company's option in the event of modifications in debentures had been converted into common stock. certain tax laws that could have adverse effects on the Between December 30,1982 and September 2,1983 an " = Company.Redemption may occur under these circum- additional $202,000 of debentures were converted into stances after July 29 1986 ata price declining annually from Common Stock.During the year ended August 30 1985 it 102%of principal to 100%of principal in 1990 and thereafter and August 31,1984, additional $624,000 and until maturity. $684,000,respectively,were converted Into Common - In conjunction with the issue,the Company entered into Stock.During fiscal year 1986,the remaining$256,000 a currency exchange agreement with Chemical Bank, of outstanding bonds were called for redemption.All 9 London.Under the agreement,the Bank remitted the net bonds were presented for conversion into common stock proceeds of$48,480,752 to the Company and will act as prior to the redemption date. � agent to exchange currencies as amounts become due under (b)7/a/ Convertible Subordinated Debentures due the Indenture agreement.The exchange rate has been fixed February 15,2003 under the currency exchange agreement at an effective In February,1983,the Company issued by public sale average interest cost to the Company of 10.95%. $75,000,000 of 7%%Convertible Subordinated Deben- Principal payments required on long-term debt during the tures due February 15,2003.In March 1985,the five-year period from August 29,1986 are approximately Company called the debentures for redemption on April $9,075,000, $4,820,000, $3,453,000, $3,406,000 and 15,1985.Prior to the redemption date,all but$120,000 $4 402 000. inder � of debentures were presented for conversion into a " e Thpayments above do not Include an payments on LL P Y Y P Y common stock at a price of$12.50($9.375 after adjust- commercial paper outstanding which was classified as ment for the May 1986 stock split)per share.Pursuant long-term debt in accordance with Financial Accounting to a Standby Purchase Agreement between the Company Standards Board Statement No.6,"Classification of and certain investment bankers,the Company issued Short-Term Obligations Expected to be Refinanced."The 9600(12,800 shares after adjustment for the May 1986 _ commercial paper is backed by five-year letters of credit stock split)shares of common stock to said bankers and and revolving credit agreements,which were executed in used the proceeds to redeem the bonds.The 9600 shares June,1984 and January,1985 and expire in June,1989 and represent the shares that would have been issued if the January,1990,respectively.There were no direct borrow- $120,000 of bonds had been presented for conversion. THE LEADER ings under these agreements during the fiscal year ended (c)61/4%Convertible Subordinated Guaranteed August 29,1986. Debentures due August 15,1998 IN THE In addition to the commercial paper agreements,the In August,1983,a wholly-owned subsidiary of the DAY CARE Company has maintained various credit agreements with Company,Kinder-Care International N.V.,issued �, � I INDUSTRY. - banks during the years ended August 29,1986 and August $50,000,000 of 61/4%Convertible Subordinated Guar- 30,1985.At August 29,1986,the Company hada anteed Debentures due August 15,1998.The debentures --- $70,000,000 credit agreement with two banks.The agree are guaranteed on a subordinated basis by the Company. ment,which is renewable annually,is a three-year revolving The debentures are convertible at any time prior to credit line which is convertible,at the Company's option maturity,unless previously redeemed,into 3,669,724 into a five-year term loan.The agreement provides several shares of Common Stock of the Company at a interest rate options including the prime rate.No compen- conversion price of$13.625 per share,subject to sating balances are required but a commitment fee of 1/4 of adjustment under certain conditions.The debentures 1%of the average unused credit is required. were redeemable,at the option of Kinder-Care • Borrowing and interest rates were: International,N.V.,in whole or in part,at 106%of Fiscal Year Ended principal amount prior to August 15,1984,and are August 29, August 30, redeemable on or after that date at prices declining 1986 1985 annually to 100%of principal amount on and after Maximum available lines ofcredit August 15,1989.In the event of certain changes during the year ...........................$70,000,000 70,000,000 involvin United States or Netherlands Antilles taxation, Maximum borrowing during the year............ 60,500,000 68,700,000 g Average borrowing during the year.............. 30,344,000 36,741,000 the debentures are,at the option of Kinder-Care Inter- Borrowing at year-end ....................... 20,600,000 3,700,000 national,N.V.,also subject to redemption,in whole but Available credit at year-end .................... 49,400,000 66,300,000 Weighted average interest rate.................. 8.34% 10.02% not in part,at 100%of principal amount.The indenture relating to the debentures contains various restrictions (6)Subordinated Debt pertaining to the payment of dividends.At August 29, (a)11%Convertible Subordinated Debentures due 1986,no portion of the Company's retained earnings May 15,1997 was restricted. On December 7,1982,the Company reduced the conversion price on the $32,000,00011%Convertible Subordinated Debentures due May 15,1997 from $14.30 4 21 ` NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES (4)Income Taxes(Continued) return basis)through the year 2001.The U.S. income With approximately 1100 centers,in 40 states TWO-YEAR-OLDS enter the GOAL Fiscal Year Ended tax law provides for the utilization of investment tax credit and Canada,employing 14,000 people and (Growth Opportunities for Achievement and carry-forwards on a first-in,first-out basis,which the providing services to approximately 100 000 Learning)program and learn through August 29, August 30, August 31, Company believes will assure their use during the car P g pp Y g)P g g 1986 19ss 1984 P Y g carry- children,day care is the primary business of Discovery Area group activities to develop Current: forward periods.The Company also has$700,000 offoreign Kinder-Care.Company plans call for the self-control,cooperation and communica- Foreign........................$ 506,000 114,000 122,000 tax credit carry-forwards available to reduce future income opening of approximately 100 centers in fiscal tions skills.When they're ready for toilet Federal ........................ 760,000 1,022,000 1,346,000 tax payments(tax return basis)through the year 1991. year 1987 with development thereafter to reach training,the staffa roaches this phase with State .......................... 421,000 112,000 422,000 The effective rates were 10%, 1.5% d 10%,respectively, Y P g' pp P Deferred: ( ),an2000 centers by early to mid 1990s. patience and understanding. Foreign........................ 487,000 (105,000) 116,000 for the years ended August 29,1986,August 30,1985, During the 1986 fiscal year,F.E.(Gene)Mont- Federal ........................ 1,203,000 (1,756,000) (439,000) and August 31,1984.The differences between the amounts THREE-YEAR-OLDS learn all about the State .......................... 188,000 274,000 51,000gomery,formerly Senior Vice President- world through the program,M Window on Charge in lieu recorded and the amounts computed by applying the Federal g P g y Operations of Kinder-Care,was named oftaxes - - 192,000 income tax rate(46%)to earnings before taxes are as follows: the World.They receive the National Wildlife $3,565,000 (339,000) 1,810,000 Fiscal Year Ended President Of Sylvan Learning Corporation. Federation's children's magazine,Your B& Management of day care operations was reor- Backyard,which teaches simple counting, August 29, August 30, August 31, ganized under Executive Vice President,Edward es colors and shapes,making comparisons and An amount equal to the charge in lieu of taxes has been offset 1986 1985 1984 Gibson formerly Vice President of Human P g coin P against the"Excess costs over net assets of subsidiaries Taxes on earnings from continuing noting differences between things found in g operations at statutory Federal Resources.The changes included promoting » p ry nature. acquired and other noncurrent assets related to acquisition rates ............. .........$15,849,150 10,036,811 8,605,376 two former Zone Vice Presidents to positions in recognition of the utilization for financial statement Taxes on earnings from discontinued FOUR-YEAR-OLDS enjoy a variety ofplay- operationsofVice President of Operations for the Eastern J Y tY purposes,of operating loss carry-forwards.The Company elres....statutory _ round and Discovery Area activities designed 717,003 (496,364) U.S.and the Western U.S.,hiring very qualified g rY � has remainingloss car forwards for tax return purposes Increase(reduction)resulting from: to stimulate curiosity and further social h s- carry-forwards P p ( ) (1,675,242) (1,449,010) individuals to the positions of Vice President of tl ,P Y Investment tax credit......... 1,884,578 of approximately$17,400,000 expiring through the State income taxes net of Human Resources,and Vice President of Devel- ical and emotional growth.The Once Upon a year 2001. Federal tax benefit ......... 328,860 208,440 255,420 opment,and placing certain other support Time. . .Happily Ever After program prepares Foreign tax credit ........... (724,300 No provision has been made for U.S.income taxes(not Foreign income taxes. ) (209,225) 84,405 functions in the area of responsibility of Mr. them for reading readiness by using story 560,814 material in amount)that would be payable upon remittance Dividend exclusion .......... (9,498,005) (8,727,384) (4,984,559) Gibson. sheets,concept boards and activity books. of earnings retained abroad b one of its foreign subsidiaries Capital gains rates ........... (928,274) (259,428) - g Y g , Other,net (138,667) (429,975) (205,268) A full range of services is provided in Kinder- FIVE-YEAR-OLDS expand their interest and since it is the Company's intention to reinvest these $ 3,565,000 (339,000) 1,810,000 Care centers,from infant care in rooms designed social skills through activities such as acting, earnings abroad. specifically for that purpose,to after school care clay modeling,music appreciation,woodwork- Deferred taxes result from timing differences in the for children up to age 12 centered around the ing,painting and drawing. Our Beginning to recognition of revenue and expense for tax and financial (5)Long-Term Debt g p A summa of long-term debt follows: Klubmates program.The average weekly rate for Read, Write and Listen and Mathematics Their statement purposes.The source of these differences and D g- the three-year-old child ranges from $37 to Way programs help prepare them for early the tax effect of each were as follows: August 29, August 30, $80,depending on the location,and the success in first grade. Fiscal Year Ended Unsecured: 1986 1985 national average is approximately$61.A brief SCHOOL-AGE CHILDREN have their August 29, August 30, August 31, Commercial paper,5.70%to 7.0% ............$170,000,000 120,000,000 description of the programs offered by age-group own club that meets daily before and after 1986 1985 1984 sa/4%Swiss Franc Bonds,with an follows: Depreciation expense computed using effective average rate of10.95%to INFANTS are cared for in a bright room school-full time in summer-in their own accelerated methods for tax purposes..$2,944,550 1,399,947 1,899,793 mature July 29,1995..................... 40,709,125 48,480,752 separate area of the Center.Klubmates offers designed to provide both stimulation and Lease acquisition cost-certain items Borrowings under lines of credit at g. P these 6-to 12-year-olds opportunities to earn expensed as incurred for tax purposes - (59,744) (360,328) varying rates of interest(6.75%at security.Our Infant Activity Dally Report 40 different achievement bad from First Accretion ofdiscount on bonds not August 29,1986 badges,.. 20,600,000 3,700,000 covers every detail about the child's eating g ' recognized for tax purposes until Note due in annual installments of Aid to Space Exploration,Ecology to Sports. disposed .. .. ................. - - 356,115 $2,500,000 beginning January 15,1992 thru and sleeping,as well as his progress in motor, Our van takes them to and from school,and Accrued dividends not recognized for January 15,1995 at varying interest rates socialization and language skills. tax purposes until received,net 7.5%at August 29,1986 10,000,000 - on fascinatingfield trips. ofdividend exclusion ........... 3,461,063 1,735,768 1,920,780 0< o g ) P ( ) 8/o to 9'h/o Worcs,with maturities to zoos ...... 210,149 1,704,139 TODDLERS enjoy safe surroundings in The day care market is vast and continuing to Partnership income not recognized for Other: tax purposes until partnership year o o which to develop new skills.Simple child ends ......... ......... ..... 2,400,678 s.2s io to 1234 io Industrial Revenue Bonds grow.By 1990,there could be anywhere from development toys encourage ushin , ullin , 15-20 million preschool children with working Reinstatement of deferred taxes due to secured by real property with a depreciated P Y g P g P g utilization of net operating loss cost of$38,166,000 at August 29,1986 and grasping,stacking and tossing.There are carried forward .................. 1,905,306 - _ $39,485,000 at August 30,1985. 4 plenty of songs chatter and games and lots mothers.Kinder-Care looks forward to contin- Net operating loss carried forward .. - (4,881,233) (2,426,846) Maturities to 2005 ...................... 42,042,647 43,418,447 ' ' uing and expanding its position as the leader in Investment tax credit carried forward ... (1,820,436) (127,754) (1,372,276) 7rh%to 13Th%obligations secured by mortgages Of places for toddling,soft tumbling and the da care indust Jobs tax credit carried forward......... (348,000) (275,800) (219,664) on real and personal property with taking first steps. Y ry. Foreign tax credit carried forward...... (724,300) - - depreciated costs of 518,428,000 at Capital gains not recognized for August 29,1986 and$61,802,213 at ' tax purposes .................... 430,027 1,783,809 - August 30,1985.Maturities to 2008......... 10,883,914 33,003,879 Investment tax credit used as a 9%notes payable,secured by a pledge of all the reduction of net deferred tax credits capital stock of a wholly-owned subsidiary, reversing during carry-forward period.. - (1,620,000) - due$1,000,000 in 1985,and$4,500,000 0 ther,net 551,238 458,007 (69,574) in 19864,500,000 5,500,000 ............................... $1,878,000 (1,587,000) (272,000) Note secured by certain vehicles bearing interest at the creditor's month end commercial paper rate plus lh%............. 9,598,786 - The Company has $9,200,000 Of investment tax Credit Other 3,947,564 4,500,538 carry-forwards and $1,600,000 of jobs tax credit carry- 312,492,185 260,307,755 forwards available to reduce future income tax payments(tax Less current installments of long-term debt 9,075,363 6,323,745 $303,416,822 253,984,010 20 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Continued PIONEER WESTERN CORPORATION (Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES a The agreement,as amended in June 1986,calls for a Fiscal Year Ended ' l t cash purchase price per share ranging between $34 and. August 29, August 30, August 31, " $36 depending on the disposition of certain assets of 1986 1985 1984 Centerbanc.Management of the Company anticipates Aggregate cost ..............$141,558,511 100,291,860 77,922,830 ,t jf the price will be $34 per share.Centerbanc will have Aggregate market Value ....... 142,594,803 102,073,217 75,050,260 Gross unrealized gains ... 4,405,136 2,984,680 855,739 approximately 1,070,000 shares outstanding at the closing Gross unrealized losses ........ 3,368,844 1,203,323 3,728,309 till` of the acquisition,which management of the Companyc hange in valuation allowance included in expects to be prior to December 31,1986. equity section ............. — (2,872,570) 2,872,570 At June 30 1986 Centerbanc had total assets of �► � Investments also include: a. r $542,245,000 and stockholders'equity of$24,736,000.Ir August 29, August 30, (c)Sylvan Learning Corporation 1986 1985 Effective April 1,1985,the Company acquired Sylvan Funds held by trustee for construction ......... $ 5,779,429 9,577,972 Learning Corporation("Sylvan")for$5,194,250 consist- Investment in managed funds................ 43,470,000 it Notes receivable and other 15,653,046 r; Ing of 300,000(400,000 shares after adjustment for the .'� four-for-three stock split in May,1986)shares of Total $64,902,474 9,577,972 n Kinder-Care common stock and $394,250 in cash. Sylvan operates and franchises Sylvan Learning Centers Funds held by trustee for construction represent the which,based on diagnostic testing,offer specialized proceeds remaining from issuance of certain Industrial supplemental instruction to school age children in Revenue Bonds,which can only be used to finance the reading and mathematics.Subsequent to the acquisition, construction of certain facilities or to repay the obligations which has been accounted for as a purchase,Kinder-Care under these bonds.Pending the utilization of these funds ' made an equity contribution to the Company of they are invested by the trustee in certificates of deposit or _ $1,000,000 in cash and agreed to provide certain services other allowable investments. to Sylvan. The Investment in managed funds includes the Company's a In July,1985,Sylvan completed a public offering equity in a limited partnership organized as a broker-dealer i which decreased Kinder-Care's percentage ownership to which engages in investment activities solely in marketable 67%.The Company recognized a gain of$3,230,127 due securities.The Company has no management control over to the offering price per share exceeding the book value the partnerships activities that are for the sole benefit of its per share. partners.This partnership accounts for investments in - (d)Med Central,Inc. accordance with generally accepted accounting principles On April 1,1985,Med Central,Inc.,awholly-owned for broker-dealers,which includes the recognition of unre- alized gains and losses in current period earnings. OFFERING A subsidiary of the Company,sold its assets to a subsid Net investment income is summarized as follows: BROAD RANGE iary of Humana,Inc.for approximately$14,400,000 in Fiscal Year Ended cash and assumption of debt of approximately OF FINANCIAL � August 29, August 30, August 31, $1,000,000. 1986 1985 1984 SERVICES. The operating results of Med Central,Inc. and the Dividends and interest........ 522,1.12,828 1.7,838,696 17,694,796 gain on the disposition of assets are disclosed as Realized gains(losses),net..... 7,045,314 877,636 (6133104) "Discontinued Operations"in the accompanying finan- Earnings from managed funds cial statements.Revenues from discontinued operations and other.... ........... 8,793,000 Less.General and were $2,750,755 and$3,682,938 in fiscal ears 1985 and y administrative expenses (1,475,000) (750,000) - 1984,respectively. Total $36,476,142 17,966,332 17,0813692 (3)Investments Investments include: (4)Income Taxes ' August 29, August 30, Income tax expense(benefit)for the years ended August 29, 1986 1985 1986,August 30,1985 and August 31,1984 were Preferred stocks ..........................$122,839,136 923724,110 $3,565,000,($1,044,000)and$2,377,000,respectively,from Notes and bonds 18,719,375 7,567,750 continuing operations and$705,000 in 1985 and($567,000) Total $141,5583511 100,291,860 in 1984 from discontinued operations.Income tax expense (benefit)is summarized as follows: These securities are held for long-term investment and are stated at the lower of cost or market value.The cost of secu- rities sold is determined using the specific identification method.A summary of cost,market value,gains and losses follows: 6 19 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES (1)Summary of Significant Accounting Policies determination of net income and were insignificant. Pioneer Western Corporation began as a life IDEx MUTUAL FUNDS (a)Principles of Consolidation Prior years data have not been restated to reflect the insurance company in 1959 and has evolved Pioneer Western has two diversified open-end " The consolidated financial statements include the cumulative foreign currency adjustment and there have into a multi-faceted financial service family of mutual funds whose primary investment objet- accounts of Kinder-Care Learning Centers,Inc.(the been no income taxes allocated to the adjustment. corporations offering life insurance,annuities, tive is growth of capital through the ownership Company)and its majority-owned subsidiaries,except oil and gas,real estate,stocks,bonds and of carefully selected common stocks and bonds. Pioneer Western Corporation and Kinder Life Insurance (2)Business Acquisitions and Dispositions mutual funds and financial planning. Pioneer Janus Capital Corporation acts as investment Company,which are accounted for by the equity (a)Effective April 1,1986,the Company acquired Pioneer Western Corporation(PWC)has over $150 advisor. method.The Company's consolidated operations consist Western Corporation("Pioneer")for approximately million total assets. In the short span of time from June,1985 of the o operation of da care centers.All si nif- $69.9 million in cash.Pioneer is a financial services p P through August,1986,the funds have accumu- principally P Y g The Pioneer Western Corporation's concept icant inter-company balances and transactions have been corporation offering life insurance and related products. is to offer basic value in products and services. lated $80 million in total net assets.The first eliminated in consolidation. Its major subsidiary is Western Reserve Life Assurance Co. Its investments incorporate the potential to fund,IDEX Fund,had a total return of 37%for b The earnings of Pioneer for the five months ended ad row with the national and interna- ( )Depreciation just and g the period June 4,1985 to August 31,1986. Depreciation is provided on the straight-line basis over August 31,1986,using the purchase method ofaccounting, tional economic changes of today's fast moving P P g are included in"Earnin s of unconsolidated subsidiaries" g � g The second fund,IDEX II,was offered for sale the estimated useful lives of the assets. g world.Pioneer Western Corporation is a leader on May 8,1986. in the Consolidated Statements of Earnings.Condensed in the financial services (c)Interest Capitalization industry. W. Scare Bowler Chairman and Construction interest capitalized during the years ended financial data for Pioneer as of August 31,1986 follows: The following is a brief description of the pri- PIONEER WESTERN ENERGY CORPORATION President,Pioneer Western,left, August 29,1986,August 30,1985,and August 31,1984, Investments . . . . . . . . . . . . . . . . . . . . . S 78,458,000 mary corporations in the Pioneer Western family: Acting as a general partner,Pioneer Western and John R.Kenney,President was approximately$2,970,000, $3,492,000,and Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 45,171,000 Energy Corporation provides opportunities for and ChiefEvecutive Officer, $2,019,000res ectivel . Other assets 60,397,000 WESTERN RESERVE LIFE ASSURANCE Co. investments in oil and gas. These investments Western Reserve Life Assurance P YOF OHIO included developmental drilling programs,as Co. of Ohio. (d)Excess Cost Over Net Assets of Subsidiaries Total assets $184,026,000 The Western Reserve Life Assurance Co.of well as oil and gas income funds.Since 1982, Acquired Future policy benefits. . . . . . . . . . . . . . $ 94,692,000 Ohio(WRL),the original company in the fam- Pioneer Western Energy Corporation has The excess of purchase cost over net assets of theit has over$4 billion of coverage in force and sponsored 60 limited partnerships and raised Stockholder's equity 72 company acquired prior to November 1,1970($520,216) Other liabilities . . . . . . . . . . . . . . . . . . 17,317,000 qs"A"rated by Best's.WRL offers an array of $78 367199. is not being amortized because,in the opinion of life insurance and annuity products which can, y'i ' management,its value has not diminished.The amounts Total liabilities and stockholder's be tailored to the individual's needs and finan- PIONEER WESTERN PROPERTIES relating to companies acquired thereafter is being amor- equity $184,026,000 tial future by offering a series of riders. Using a CORPORATION tized on a straight-line basis over 40 years. single check system,WRL has combined term Partnerships in various real estate developments (e)Lease Acquisition Costs Operations for the five months ended August 31,1986, insurance with mutual funds for almost twenty are offered through Pioneer Western Properties Costs of acquiring and developing leased locations, were as follows: years.A flexible premium annuity,universal life Corporation.Only income producing proper- consisting of the cost ofpurchased leaseholds and the Total revenues . . . . . . . . . . . . . . . . . . . $29,057,000 and variable life are part ofthe portfolio.The ties with economic merit are syndicated. direct costs(including costs of the Company's real estate Costs and expenses,including tax qualified plans for IRA,TSA and Keogh are The real estate portfolio includes twelve staff)of selecting sites for and supervising construction income taxes. . . . . . . . . . . . . . . . . . . (27,405,000) well served by the Guaranteed Retirement multi-family residential income producing real of day care centers,are deferred and amortized,on a Realized investment gains 199,000 Accumulator.This specially designed annuity properties located in the Midwest and Southeast. straight-line basis,over the periods covered by the leases Net earnings $ 1,851,000 has flexible premiums and is no-loaded.Also Pioneer Western Properties was formed in June, (generally twenty years). available is a Single Premium Annuity. 1983 and has an aggregate of approximately (f)Income Taxes The consolidated results of operations of the CompanyPW SECURITIES INC. $15,700,000 of equity invested or committed Income taxes are provided in the year transactions enter on a pro forma basis as though Pioneer had been to investment in these twelve limited partner- into the determination of net earnings regardless ofwhen acquired at the beginning of the 1985 fiscal year are as PW Securities,Inc.,(PWSI)formed in 1967,is ships by approximately 400 investors. such transactions are recognized for income tax purposes. follows: a full service Broker/Dealer providing invest- ment services to thousands of individuals and PIOWEST AGENCY,INC. Investment tax credits are accounted for using the"flow- 1986 1985 corporations,throughout the United States. PioWest Agency acts as a master general agent through"method which reduces Federal income tax Net earnings . . . . . . . $34,833,000 30,312,000 PW Securities,Inc.is registered with The Seen- with other insurance carriers for products and expense for the year in which qualified property is placed in service. Net earnings per share. $ .78 .77 rities and Exchange Commission as a Broker/ services not offered by Western Reserve Life. Dealer and Investment Advisor,The National Its primary areas include disability income, (g)Earnings Per Share The pro forma financial information is not necessarily Association of Securities Dealers,Inc.and The 401(k)programs and other pension and profit Earnings per share of Common Stock are computed by indicative either of results of operations that would have Securities Investor Protection Corporation sharing plans. dividing net earnings by the weighted average(adjusted occurred had the acquisition been made at the beginning (SIPC).Through SIPC,securities in accounts for stock splits)number of common shares outstanding of the period,or of future results. are protected up to $500,000. PIONEER WESTERN FINANCIAL PLANNING during the period.The computation of fully-diluted b Centerbanc Savings Association CORPORATION o ( ) g PWSI offers a complete line of stocks,bonds, Pioneer Western Financial Planning Corporation earnings per share results in less than 3/o dilution. In May,1986,the Company agreed to acquire the mutual funds,unit investment trusts and vari- (h)Foreign Currency Translation outstanding stock of Centerbanc Savings Association ous limited partnerships. provides the tools and techniques needed to Prior to fiscal 1985,adjustments for foreign currency ("Centerbanc"),a state chartered savings and loan asso- The objective of PW Securities is to provide Provide an individual an overall financial translations,as determined under the provisions of ciation headquartered in St. Petersburg,Florida. total service to the individual or corporation Planning basis through no-cost computerized financial analysis.It gives a clear and concise Financial Accotmting Standards Board Statement No.52, through one person,their registered represent- individual's "Foreign Currency Translation"were excluded from the ative,to combine all the financial planning for their future into one portfolio with the poten- ptu tioncture f as wean as project on oftheir financial future. tial of providing increased benefits. 18 7 i SYLVAN LEARNING CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION(Continued) KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES The first full year of Kinder-Care's association Sylvan's future looks very bright as evidenced Fiscal Year Ended with Sylvan Learning Corporation has been an by Sylvan's recent Advisory Council meeting August 29, August 30, August 31, exciting year of growth. chaired by Dr.T.H.Bell,former U.S.Secretary 1986 1985 1984 Sylvan opened 87 franchised centers,a 56% of Education.Dr.Bell and the advisory Council increase in the number of franchised centers were very excited about Sylvan's potential.They Uses of working capital: open,during Kinder-Care's fiscal year ended perceive opportunities not only with existing Additions to property,plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . $ 62,589,123 121,726,280 77,032,631 August 29,1986.During the same period,reve- centers,but also outside the centers.These possi- Acquisition of net assets of unconsolidated subsidiary . . . . . . . . . . . . . . . . . 69,863,000 nues from continuing franchise royalties increased bilities include contracting with government 182%representing growth in enrollment in agencies to help fight the war on illiteracy. Increase in deferred charges and other assets. . . . . . . . . . . . . . . . . . . . . . . . . 5,875,928 3,638,404 2,553,643 addition to the increase in the number of open Dr.Bell,speaking at Sylvan's national confer Current installments and repayments of centers.At August 29,1986,there were 243 ence,put it this way: long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,471,333 6,972,724 8,113,988 franchised Sylvan Learning Centers in operation. "Sylvan Learning Centers use curriculum mate- Payment of cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,211,698 1,828,120 1,616,294 In addition to the substantial growth in fran- rials and teaching techniques that are among the Conversion of subordinated debentures,net of chising activity,Sylvan has also expanded its most effective I have observed...the results have conversion costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,186 72,920,212 683,956 network of Company- been phenomenal.' Purchase of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198,039,470 28,241,955 53,178,535 owned centers.Dur- t, "77 Another area of Increase in excess costs over net assets ing the fiscal year _ growth has been in the of subsidiaries acquired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,552,154 — ended August 29, f,=1 activities of the Sylvan Increase in working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 21,371,864 — 1986,Sylvan openedI Franchise Owner's Other 47,828 327,304 334,104 39 Company-owned ,. Association.The I $375,309,566 262,579,017 143,513,151 centers bringing the Owner's Association total number of Com- has become very active pany-owned centers in providing guidance, Changes in components of working capital: :•✓ decrease at that date to 42. _ suggestions,and Increase(decrease)in current assets: Sylvan is in the assistance through Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,342,846 15,904,348 (3,699,001) Certificates of deposit. . . . . . . 14 170 994 2 661 768 19 497 580 business of providing �, -• � � quarterly meetings of P • • � � � � ( ) ( ) � educational service regional representa- Trade receivables and accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,074,185 1,769,534 1,687,884 not normally available tives of franchise Prepaid expenses and supplies 6,466,626 1,676,822 1,772,382 in the classroom set- �, -•� owners with top man- 712,663 22,012,472 (19,736,315) ting.The remedial agement at Sylvan's and enrichment pro- Headquarters.We are Increase(decrease)in current liabilities: grams Sylvan offers very proud of the Current installments of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,751,618 636,132 33,814 are designed as a positive results the Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,657,772 (617,544) 2,870,231 supplement to the INDIVIDUALIZED Franchise Owners Accrued expenses 2,472,050 622,020 255,144 work students Association continues perform in public and STUDY PROGRAMS to produce for all 6,881,440 640,608 3,159,189 private schools.Through the use TO SUPPLEMENTSylvan Learning Centers. Increase(decrease)in working capital $ (6,168,777) 21,371,864 (22,895,504) of individualized instruction, EXISTING On Apr. 15,1986,Educational Sylvan is able to tailor these CURRICULA. Finance Plans,Inc.(EFP)was programs to meet the needs of a incorporated to provide tuition See accompanying notes to consolidated financial statements. variety of students ranging from financing for students attending pre-schoolers to adults. Sylvan Learning Centers.EFP is a Sylvan is very proud of the 285 wholly-owned subsidiary of Sylvan Sylvan Learning Centers presently and has already made positive helping over 40,000 students to contributions to Sylvan and to achieve their full potential. franchisees.Although only in operation for ap- Complementing the growth in the number of proximately five months,EFP recently surpassed , centers,Sylvan's Educational Research and $1 million in student tuition loans.In addition, Development Department has completed several EFP provides equipment financing opportunities new programs which are designed to expand for franchisees and prospective franchisees. services and increase center profitability.New Sylvan recently completed the relocation of ' programs include a college preparation course, its corporate headquarters from Bellevue,Wash- with emphasis on helping college-bound stu- ington to Montgomery,Alabama and now dents prepare for S.A.T.and A.C.T.entrance resides in the executive office building of its examinations.A basic algebra program has been parent company,Kinder-Care Learning Centers, completed,using Sylvan-developed computer Inc.Together with its franchise owners,Sylvan software and a school readiness program for looks forward to enjoying even more benefits of four-,five-,and six-year-old students is now avail- the close association with Kinder-Care. able.An additional program,study techniques, Sylvan's address is 2400 Presidents Drive, is presently under development.The major Montgomery,Alabama 36116 and its telephone project for the 1987 school year will be the devel- number is(205)277-7720.Sylvan's Common opment of a writing program which will cover Stock is traded on the OTC National Market a wide range of abilities,needs,and age groups. System under the NASDAQ Symbol SLVN. 8 17 i CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION CENTERBANC SAVINGS ASSOCIATION KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES Fiscal Year Ended Centerbanc is a Florida chartered capital stock joint ventures.College Harbor,Inc.,is a subsid- August 29, August 30, August 31, savings association with corporate headquarters iary initiated to own,develop and operate a 1986 1985 1984 in St. Petersburg,Florida.It was chartered in retirement and health care center in St.Petersburg. 1934 as St. Petersburg Federal Savings and Loan Centertitle,Inc.,is a subsidiary acting as a title Sources of working capital: Association,a federal mutual association,and insurance agency.Center Financial Services, Continuing operations: was converted to a state stock institution and Inc.provides financial planning services to clients. Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33,336,175 23,745,473 17,144,965 changed its name to Centerbanc on September At June 30,1986,Centerbanc had assets of 28,1983. $542 million and serves its Florida West Coast Items which do not use(provide)working capital: Centerbanc's principal business is to provide market through eighteen offices in Pinellas, Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,611,368 11,069,332 7,439,483 all the services of a traditional savings and loan Hillsborough,Pasco,Hernando and Marion Gain on public stock sale by subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . — (3,230,127) — as well as those of a full service bank.Services counties in the Tampa Bay area which has a Earnings of unconsolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . (2,555,044) (915,330) (814,624) offered include regular savings,time deposits, population of 1.8 million people. Deferred sale/leaseback gain amortization . . . . . . . . . . . . . . . . . . . . . . . . (2,197,290) — — money market accounts,business and personal Centerbanc is subject to supervision and Deferred taxes and other 2,017,439 (2,620,001) (1,036,860) checking accounts,home and commercial regulation by the Florida Department of Total from continuing operations 45,212,648 28,049,347 22,732,964 mortgage loans,busi- Banking and Finance, ness loans and con- the Federal Home Discontinued operations: sumer loans. Loan Bank Board and Loss from operations(including 1985 gain on disposal) . . . . . . . . . . . . . . . . — 853,198 (512,053) Centerbanc has the Federal Savings Items which do not use(provide)working capital: four wholly-owned and Loan Insurance Depreciation — 95,227 81,887 subsidiaries.Salo Serv- Corporation,which p � � ' . ' . .. .. .. .. .. .. .. .. .. .. .. .. .. .. ' . . ' ice Corporation is a insures the deposits Gain on disposition of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,480,000) — subsidiary which of the Association. Total from discontinued operations — (531,575) (430,166) primarily engages in It is a member of Working capital provided by operations 45,212,648 27,517,772 22,302,798 land acquisition and �" the Federal Home development,both r,, � �' Loan Bank Proceeds from long-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,208,992 111,859,498 78,381,255 directly and through L � `" system. Proceeds from sale/leaseback of real properties,net . . . . . . . . . . . . . . . . . . . 97,756,600 — — Disposals of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,307,851 1,526,297 733,976 Proceeds from issuance of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265,889 139,049 81,939 , Proceeds from sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,448,317 20,129,057 17,433,538 Proceeds from public issuance of stock of subsidiary . . . . . . . . . . . . . . . . . . . — 7,681,675 — Proceeds from disposition of assets of subsidiary. . . . . . . . . . . . . . . . . . . . . . — 15,415,407 — Issuance of common stock for company acquired . . . . . . . . . . . . . . . . . . . . . — 4,800,000 — Foreign currency translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . 729,306 590,050 — BANKING Conversion of subordinated debentures,net of SERVICES TO conversion costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,186 72,920,212 683,956 SUPPLEMENT Return of capital of unconsolidated subsidiary . . . . . . . . . . . . . . . . . . . . . . . — — 1,000,185 FAMILY Decrease in working capital 6,168,777 — 22,895,504 FINANCIAL $375,309,566 262,579,017 143,513,151 PLANNING. See accompanying notes to consolidated financial statements. 16 9 SELECTED FINANciAL DATA CONSOLIDATED STATEMENTS OF STOCKHOLDERS'EQUITY KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES (Dollar amounts in thousands,except per share data) Fiscal Year Ended Net unrealized Aug.29, Aug.30, Aug.31, Sept.2, Sept.3, loss on 1986 1985 1984(1) 1983 1982 noncurrent Foreign Common stock Additional marketable currency Operations paid-in Retained investment translation Operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $231,142 192,174 156,344 128,051 116,467 Shares Amount capital earnings securities adjustment Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,839 24,071 19,562 15,229 14,180 Balance at September 2,1983. . . . 17,793,998 $ 8,896,999 57,885,905 19,530,180 Earnings from continuing Conversion of subordinated operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,336 23,745 17,145 6,086(3) 6,655 debentures . . . . . . . . . . . . . . 63,773 31,887 652,069 - - - Working capital provided Exercise of stock options . . . . . 13,004 6,502 75,437 - - - by operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,213 27,518 22,303 16,877 12,127 Dividends . . . . . . . . . . . . . . . . - - - (1,616,294) - - Centers open at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . 1,066 1,008 890 783 745 Net earnings . . . . . . . . . . . . . . - 16,632,912 - - Licensed capacity at end Three-for-two stock split of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000 111,000 97,000 84,000 81,000 issued September 5,1984. . . . 8,997,089 4,498,544 (4,498,544) - - - Increase in net unrealized Financial data(at end of period) loss on noncurrent Working capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,836 94,004 72,633 95,528 6,491 marketable investment Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387,722 304,240 270,261 200,678 100,906 securities . . . . . . . . . . . . . . . - - - - (2,872,570) - Stockholders'equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234,906 202,575 98,889 86,313 37,830 Issuance of shares for Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 686,319 530,796 389,055 303,843 153,079 acquisition 125,000 62,500 124,100 (520,660) -Per share data(2) Balance at August 31,1984 . . . . . 26,992,864 13,496,432 54,238,967 34,026,138 (2,872,570) - Earnings(loss)per share: Conversion of subordinated Earnings from continuing debentures . . . . . . . . . . . . . . 6,087,269 3,043,634 69,876,578 - - - operations before extraordinary item . . . . . . . . . . . . . . . . . $ .75 .61 .48 .34 .25 Exercise of stock options . . . . . 23,522 11,761 127,290 - - - Discontinued operations: Dividends . . . . . . . . . . . . . . . . - - - (1,828,120) - - Loss from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - (.02) (.02) - - Net earnings . . . . . . . . . . . . . . - - - 24,598,671 - - Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - .04 - - - Decrease in net unrealized Extraordinary item. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - (.15) - loss on noncurrent Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .63 .46 .19 .25 marketable investment securities . . . . . . . . . . . . . . . - - - - 2,872,570 - Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .04875 .045 .045 .039375 .03 Issuance of shares for Book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.26 4.54 2.75 2.42 1.40 acquisition . . . . . . . . . . . . . . 360,000 180,000 4,589,443 (375,471) - - Foreign currency translation Financial statistics adjustment - - - - - 590,050 Current ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 6.8 5.7 8.7 1.6 Long-term debt to equity ratio . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.5 2.7 2.3 2.7 Balance at August 30,1985 . . . . . 33,463,655 16,731,827 128,832,278 56,421,218 - 590,050 Conversion of subordinated (1)Restated to reflect results of discontinued operations. debentures . . . . . . . . . . . . . . 35,801 17,901 193,285 - - - (2)Adjusted for stock splits in 1982,1983,1984 and 1986. Exercise of stock options . . . . . 48,014 24,007 241,882 - - - (3)Net of an extraordinary charge of 55,100,000. Dividends . . . . . . . . . . . . . . . . - - - (2,211,698) - - Net earnings . . . . . . . . . . . . . . - - - 33,336,1.75 - - Four-for-three stock split issued May 22,1986 . . . . . . . . . . . . 11,181,901 5,590,950 (5,590,950) - - - Foreign currency translation adjustment - - - - - 729,306 Balance at August 29,1986 44,729,371 $22,364,685 123,676,495 87,545,695 - 1,319,356 See accompanying notes to consolidated financial statements. I i 10 15 CONSOLIDATED STATEMENTS OF EARNINGS MANAGEMENT'S DISCUSSION AND ANALYSIS OF KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES FINANCIAL CONDITION AND RESULTS OF OPERATIONS Fiscal Year Ended Operating Results Centers acquired and new centers opened during fiscal August 31 Fiscal year ended August 29,1986— year 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18% August 29, August 30, Operating revenues increased 20%during the fiscal year ended Tuition ddi n al enrollment at centers opened riot to fiscal 13 1986 1985 1984 August 29 1986 compared to the fiscal year ended Au August 30 p p g � P Y g � year 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 1985.The sources of this increase were approximately as follows: Increase in revenue at centers opened or acquired during Operating revenues $231,141,517 192,173,883 156,344,106 fiscal year 1983 . 24 Centers acquired and new centers opened during fiscal o Decrease in revenue due to closing certain centers. . . . . . . . . . . (3) year 1986 25/0 Operating expenses: t y 100% 1� g p Increase in revenue at centers opened or acquired during Direct operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,169,466 161,054,287 132,395,642 fiscal year 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 . . 0 General and administrative expenses 11,132,835 7,048,258 4,386,712 Increase in revenue at centers opened prior to fiscal year 1985. . 10 Operating income increased 28%over the previous year, Sylvan Learning Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . 8 which is greater than the increase in revenues. Total operating expenses 204,302,301 168,102,545 136,782,354 ' 100% Investment income increased 97%over the previous year due mainly to earnings from the investment of the proceeds of Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,839,216 24,071,338 19,561,752 The increases in revenues at existing centers were influenced the $50,000,000 of convertible subordinated debentures issued Other income(expense): by tuition rate increases of approximately 5%. in August 1983.These funds were invested for the full year Gain onpublic stock sale b subsidiary — 3,230,127 — Operating income was 11.6%of revenue in fiscal year 1986 in fiscal year 1984 as compared to two weeks in fiscal year 1983. Interest expense,net of amounts capitalized . . . . . . . . . . . . . . . . . . . . . . . . . (28,860,685) (23,448,646) (17,936,103) and 12.5%of revenue in fiscal year 1985.The decline in the Interest expense increased 71%over the prior year due to the Net investment income 36,476,142 17,966,332 17,081,692 margin was due to the effect of a sale/leaseback transaction debentures mentioned above and borrowings during the year consummated in April 1986,consolidation of Sylvan Learn- to finance new centers. Earnings from continuing operations before income taxes ing Corporation,and an increase in the number of immature The effective tax rate was 13%as compared to 021%in the centers in operation in 1986.The operating margins for Sylvan prior year and was substantially lower than the 46%statutory minority interest,and unconsolidated subsidiaries . . . . . . . . . . . . . . . . . . . . 34,454,673 21,819,151 18,707,341 Learning Corporation were lower in 1986 due primarily to the rate.The major reductions in taxes came from investment tax Income tax expense(benefit) 3,565,000 (1,044,000) 2,377,000 start-up of Company-operated centers.Management believes credits and the effect of the 85%dividend exclusion on a por- that during the next fiscal year,margins will equal or exceed tion of the investment income. Earnings from continuing operations before minority interest the 1985 level due to the maturing of the new Kinder-Care Liquidity and Capital Resources and unconsolidated subsidiaries . . . . . . . . . . . . . . . 30,889,673 22,863,151 16,330,341 and Sylvan centers,improved occupancy levels and more efli- Minori interest in earnings of subsidiary (108,542) (33,008) — cient cost containment measures. Funds provided by operations have generally been sufficient ty g ry ( ) ( ) g e Interest expense increased 23%during the year due to a higher to meet the existing obligations of the Company,with external Earnings of unconsolidated subsidiaries,net of p Y g financing only being necessary to add the substantial number income tax expense 2 555 044 915 330 814 624 average balance of debt outstanding.The average interest rate g Y g D' p on the Company's commercial paper declined during the year of additional centers that the Company has added over the past as interest rates in general,declined.Investment income several years.External financings,the timing and nature of Earnings from continuing operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,336,175 23,745,473 17,144,965 increased 103%�due to the reinvestment of earnings from which is dependent on the availability and costs of the long-term Discontinued operations: investments the movement of additional funds from certificates financing markets,are arranged as necessary to meet the Com- Loss from operations,net of applicable of deposit to higher yielding investments,and the realization pany's capital requirements for development of new centers. income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (626,802) (512,053) of approximately $7,000,000 in gains from certain securities. During fiscal year 1986,the Company continued to use its exist- Gain on disposal,less applicable income tax The effective tax rate for fiscal 1986 was 10.3%,substantially ing credit line,increased its capacity for issuing Commercial expense — 1,480,000 — lower than the statutory rate,primarily due to the 85%divi- Paper from $120,000,000 to $170,000,000,and issued dend exclusion and investment tax credits. 62,500,000 Swiss Franc Bonds due in 1996.Theproceeds of the Net earnings $ 33,336,175 24,598,671 16,632,912 The earnings of Pioneer Western Corporation from April 1, Swiss Franc issue were exchanged for approximately$32,000,000. 1986 to August 31,1986 are included in earnings of unconsol- The provisions of the Tax Reform Act of 1986 will not idated subsidiaries. materially reduce investment tax credits that have been recog- Earnings per share: Fiscal year ended August 30 1985— nized in the Consolidated Financial Statements.Additionally, Earnings from continuing operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .75 .61 .48 Operatmi g revenues increased 23%during the fiscal year ended potential reductions in investment tax credit and jobs tax Discontinued operations: August 30 1985 compared to the fiscal year ended August 31 credit carry-forwards under the Act and related changes in Loss from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (.02) (.02) 1984.The sources of this increase were approximately as follows': deferred tax liabilities will not be significant to the Company's Gain on disposal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — .04 — liquidity or capital resources. Centers acquired and new centers opened during fiscal The Company had cash and certificates of depposit of almost year 1985 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27% $85000000 August 29 1986 d net workin capital in Increase in revenue at centers opened or acquired during > > at u g > >ang Net earnings $ .75 .63 .46 fiscal year 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 excess of$87,000,000.In addition,the Company had approx- i Increase in revenue at centers opened prior to fiscal year 1984. . 31 imately$206,000,000 of investment securities that were Decrease in revenue due to closing certain centers. . . . . . . . . . . (2) classified as non-current and therefore,not included in work- Weighted average common shares 44,687,460 39,264,857 35,907,784 Sylvan Learning Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ing capital.These internal funds and existing financial 100% commitments should enable the Company to continue to add See accompanying notes to consolidated financial statements. The increases in revenues at existing centers were influenced substantial numbers of centers in the coming years. by tuition rate increases of approximately 5%. Inflation Operating income increased 23%due to the increase in reve- The Company's financial statements,in accordance with nues and improvement in operating margins. generally accepted accounting principles,are prepared on a Investment income increased 5%due to the reinvestment of historical cost basis which does not attempt to measure the earnings from certain investments.Interest expense increased effect of changing prices(inflation)on the results of operations 31%due to borrowings during the year to finance new centers. of the Company.For example,the Company's fixed occupancy Instead of income tax expense,the Company had a tax ben- cost(rent,interest,and depreciation)at many of its locations efit due mainly to the 85%dividend exclusion on a significant is lower than would be the case if they were measured at portion of the investment income and investment tax credits. current replacement cost rather than at historical cost. Fiscal year ended August 31,1984— See Note 12 of Notes to Consolidated Financial Statements During the fiscal year ended August 31,1984,operating for an experimental estimation and evaluation of this impact revenues increased 22%over the fiscal year ended September 2, as required by Statement of Financial Accounting Standards 1983.The sources ofthis increase were approximately as follows: No. 33,Financial Reporting and Changing Prices. 14 11 CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES KINDER-CARE LEARNING CENTERS,INC.AND SUBSIDIARIES Assets Liabilities and Stockholders'Equity August 29, August 30, August 29, August 30, 1986 1985 1986 1985 Current assets: Current liabilities: Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,394,927 17,052,081 t Current installments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,075,363 6,323,745 Certificates of deposit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,533,346 79,704,340 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,022,154 5,364,382 Trade receivables and accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,571,931 6,497,746 Accrued expenses 6,939,160 4,467,110 Prepaid insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,731,062 534,530 Total current liabilities 23,036,677 16,155,237 Prepaid expenses and supplies 6,641,055 6,370,961 Total current assets 110,872,321 110,159,658 Deferred rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,570,220 1,436,323 Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,380,656 1,605,656 Property,plant and equipment,at cost: Deferred gain on sale/leaseback,less amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,541,690 — Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,737,996 77,165,301 Long-term debt,excluding current Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,687,842 158,706,965 installments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303,416,822 253,984,010 Equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,140,047 66,578,740 61/4%Convertible subordinated debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000 Construction in progress 12,330,997 14,270,937 6%Swiss Franc subordinated bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,304,847 — 302,896,882 316,721,943 11%Convertible subordinated debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 256,000 Less accumulated depreciation 35,970,882 31,505,371 Minority interest 5,161,770 4,783,385 Net property,plant and equipment 266,926,000 285,216,572 Total liabilities 451,412,682 328,220,611 Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206,460,985 109,869,832 Stockholders'equity: Common stock of$.50 par value. Equity in unconsolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,124,556 4,433,655 p Lease acquisition costs,less amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,479,632 6,550,600 Authorized 100,000,000 shares;issued Debt issue costs,less amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,863,897 6,164,882 44,729,371 shares at August 29,1986 and Excess of cost over net assets 33,463,655 shares at August 30,198 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,364,685 16,731,827 of subsidiaries acquired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,730,589 6,002,359 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,676,495 128,832,278 Other assets 5,860,933 2,398,426 Foreign currency translation adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,31.9,356 590,050 $686,318,913 530,795,984 Retained earnings 87,545,695 56,421,218 Total stockholders'equity 234,906,231 202,575,373 See accompanying notes to consolidated financial statements. $686,318,913 530,795,984 See accompanying notes to consolidated financial statements. 12 13