SAN DIEGO, March 10, 2015 /PRNewswire/ -- Bridgepoint
Education, Inc. (NYSE:BPI), a provider of postsecondary education
services, announced the results for its fourth quarter and full
year ended December 31, 2014.
Highlights for the fourth quarter ended December 31, 2014:
- Revenue of $147.3 million
compared to $162.2 million for the
same period in 2013.
- Operating loss of $10.8 million
compared to operating loss of $9.9
million for the same period in 2013.
- Net loss of $5.2 million compared
to net loss of $5.1 million for the
same period in 2013.
- Fully diluted loss per common share of $0.12 compared to fully diluted loss per common
share of $0.10 for the same period in
2013. Included in the fully diluted loss of $0.12 were impairment and severance charges of
$14.1 million, which had an after-tax
impact of $0.19 on fully diluted
earnings per common share.
Highlights for the full year ended December 31, 2014:
- Total student enrollment was 55,823 compared to 63,624 at
December 31, 2013.
- Revenue of $638.7 million
compared to $751.4 million for
2013.
- Operating income of $14.3 million
compared to $68.5 million for
2013.
- Net income of $9.7 million
compared to net income of $45.9
million for 2013.
- Fully diluted earnings per common share of $0.21 compared to fully diluted earnings per
common share of $0.83 for 2013.
"Ashford University's focus in 2014
was to continue implementing and refining its initiatives to
strengthen academic quality and enhance the support the University
provides students and alumni. These initiatives were successful at
producing over 17,000 graduates in 2014 by providing a rigorous and
engaging learning experience designed for our working adult
population," said Andrew Clark, CEO
of Bridgepoint Education.
Student Enrollment
Total student enrollment at the Company's academic institutions,
Ashford University and University of
the Rockies, was 55,823 at December 31,
2014, compared with 63,624 students at December 31, 2013.
Financial Results
Revenue for the fourth quarter of 2014 was $147.3 million, compared with revenue of
$162.2 million for the fourth quarter
of 2013. Revenue for the year ended December 31, 2014, was $638.7 million, compared with revenue of
$751.4 million for the year ended
December 31, 2013.
Operating loss for the fourth quarter of 2014 was $10.8 million compared with operating loss of
$9.9 million for the same period in
2013. Operating income for the year ended December 31, 2014, was $14.3 million, compared with $68.5 million for the year ended December 31, 2013.
Net loss for the fourth quarter of 2014 was $5.2 million compared with net loss of
$5.1 million for the fourth quarter
of 2013. Net income for the year ended December 31, 2014, was $9.7 million, compared with net income of
$45.9 million for the year ended
December 31, 2013.
Fully diluted loss per common share for the fourth quarter of
2014 was $0.12 compared with fully
diluted loss per common share of $0.10 for the fourth quarter of 2013. Fully
diluted earnings per common share for the year ended December 31, 2014, was $0.21 compared with fully diluted earnings per
common share of $0.83 for the year
ended December 31, 2013. Included in
the fully diluted earnings per common share of $0.21 for the year ended December 31, 2014 were impairment and severance
charges of $14.1 million, which had
an after-tax impact of $0.19 on fully
diluted earnings per common share.
The Company's effective tax rate for the year ended December 31, 2014, was 43.8%.
Balance Sheet and Cash
Flow
As of December 31, 2014, the
Company had cash, cash equivalents and investments of $356.5 million, compared with $356.4 million as of December 31, 2013. The Company generated
$25.2 million of cash from operating
activities for the year ended December 31,
2014, compared with $85.6
million for the year ended December
31, 2013.
Earnings Conference Call and Webcast
The Company will host a conference call and webcast at
11:30 a.m. ET (8:30 a.m. PT) today to discuss its latest
financial results and recent developments. Call participants should
dial 866-859-7412 (United
States/Canada) or (832)
900-4623 (other countries) and request the Bridgepoint Education
call or provide the conference ID 95525667. A live broadcast
of the call will also be available via the Internet at
http://ir.bridgepointeducation.com and will be archived on the site
for one year.
A telephonic replay will be available at (800) 585-8367
(United States/Canada) or 404-537-3406 (other countries),
passcode 95525667. The replay will be available from
Tuesday, March 10, 2015, at
3:00 p.m. (Eastern Time) until
April 14, 2015, at 3:00 p.m. (Eastern Time).
About Bridgepoint Education
Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest
technology to reimagine the modern student experience.
Bridgepoint's technologies, such as Waypoint Outcomes, enhance the
way people learn in the digital age. Bridgepoint owns two academic
institutions – Ashford University and
University of the Rockies. Ashford
University offers associate's, bachelor's and master's
degree programs while University of the Rockies offers master's and
doctoral degree programs. Both provide progressive online
platforms as well as traditional campuses in Iowa and Colorado. Bridgepoint stands for greater
access, social learning, and exposure to leading minds.
For more information, visit www.bridgepointeducation.com,
www.facebook.com/BridgepointEducation, or call Paul Goodson, Associate Vice President of
Investor Relations at (866) 475-0317 x2271.
Forward-Looking Statements
This news release may contain forward-looking statements,
including, without limitation, statements regarding management's
intentions, hopes, beliefs or expectations, and statements
regarding the Company's 2015 outlook. These statements are subject
to risks and uncertainties that could cause the Company's actual
performance or results to differ materially from those expressed in
or suggested by such statements. Such risks and uncertainties
include, without limitation:
- the failure to comply with the extensive regulatory framework
applicable to the Company and its institutions, including Title IV
of the Higher Education Act of 1965, as amended, and its
regulations, state laws and regulatory requirements, and
accrediting agency requirements;
- adverse administrative, economic, legislative or regulatory
changes affecting the Company and its institutions;
- the imposition of fines or other corrective measures against
the Company's institutions;
- competition in the postsecondary education market and its
potential impact on the Company's market share, recruiting costs
and tuition rates;
- reputational and other risks related to potential compliance
audits, regulatory actions, negative publicity or service
disruptions; and
- the inability to recruit and retain students or develop new or
expanded programs in a timely and cost-effective manner.
Additional information on factors that could affect the
Company's performance or results is included from time to time in
the "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the
Company's periodic reports filed with the Securities and Exchange
Commission (SEC), including the Company's Annual Report on Form
10-K for the fiscal year ended December 31,
2014 to be filed with the SEC. You should not place undue
reliance on any forward-looking statements. Forward-looking
statements are made on the basis of management's good faith beliefs
and assumptions regarding future events based on information
available at the time the statements are made.
Forward-looking statements speak only as of the date they are made,
and the Company assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable securities laws.
|
BRIDGEPOINT
EDUCATION, INC.
Consolidated
Statements of Income
(In thousands,
except per share amounts)
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenue
|
$
|
147,259
|
|
|
$
|
162,225
|
|
|
$
|
638,705
|
|
|
$
|
751,449
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Instructional costs
and services
|
81,671
|
|
|
90,541
|
|
|
321,312
|
|
|
370,734
|
|
|
Admissions advisory
and marketing
|
58,629
|
|
|
55,726
|
|
|
236,708
|
|
|
235,358
|
|
|
General and
administrative
|
17,785
|
|
|
25,828
|
|
|
66,374
|
|
|
76,894
|
|
|
Total costs and
expenses
|
158,085
|
|
|
172,095
|
|
|
624,394
|
|
|
682,986
|
|
|
Operating income
(loss)
|
(10,826)
|
|
|
(9,870)
|
|
|
14,311
|
|
|
68,463
|
|
|
Other income,
net
|
725
|
|
|
711
|
|
|
2,884
|
|
|
3,082
|
|
|
Income (loss) before
income taxes
|
(10,101)
|
|
|
(9,159)
|
|
|
17,195
|
|
|
71,545
|
|
|
Income tax expense
(benefit)
|
(4,853)
|
|
|
(4,050)
|
|
|
7,527
|
|
|
25,662
|
|
|
Net income
(loss)
|
$
|
(5,248)
|
|
|
$
|
(5,109)
|
|
|
$
|
9,668
|
|
|
$
|
45,883
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.12)
|
|
|
$
|
(0.10)
|
|
|
$
|
0.21
|
|
|
$
|
0.85
|
|
|
Diluted
|
(0.12)
|
|
|
(0.10)
|
|
|
0.21
|
|
|
0.83
|
|
|
Weighted average
number of common shares outstanding used in computing earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
45,381
|
|
|
53,098
|
|
|
45,204
|
|
|
53,923
|
|
|
Diluted
|
45,381
|
|
|
53,098
|
|
|
46,512
|
|
|
55,487
|
|
|
BRIDGEPOINT
EDUCATION, INC.
Consolidated
Balance Sheets
(In thousands,
except par value)
|
|
|
|
As of December
31,
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
207,003
|
|
|
$
|
212,526
|
|
|
Restricted
cash
|
25,934
|
|
|
36,946
|
|
|
Investments
|
12,051
|
|
|
65,901
|
|
|
Accounts receivable,
net
|
21,274
|
|
|
22,953
|
|
|
Student loans
receivable, net
|
1,003
|
|
|
1,043
|
|
|
Deferred income
taxes
|
21,301
|
|
|
16,683
|
|
|
Prepaid expenses and
other current assets
|
22,818
|
|
|
21,563
|
|
|
Total current
assets
|
311,384
|
|
|
377,615
|
|
|
Property and
equipment, net
|
78,219
|
|
|
91,425
|
|
|
Investments
|
111,557
|
|
|
41,062
|
|
|
Student loans
receivable, net
|
9,510
|
|
|
11,785
|
|
|
Goodwill and
intangibles, net
|
24,775
|
|
|
26,878
|
|
|
Deferred income
taxes
|
20,175
|
|
|
18,507
|
|
|
Other long-term
assets
|
2,475
|
|
|
2,740
|
|
|
Total
assets
|
$
|
558,095
|
|
|
$
|
570,012
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,013
|
|
|
$
|
5,195
|
|
|
Accrued
liabilities
|
51,403
|
|
|
54,290
|
|
|
Deferred revenue and
student deposits
|
108,048
|
|
|
132,791
|
|
|
Total current
liabilities
|
160,464
|
|
|
192,276
|
|
|
Rent
liability
|
22,098
|
|
|
23,927
|
|
|
Other long-term
liabilities
|
9,652
|
|
|
9,271
|
|
|
Total
liabilities
|
192,214
|
|
|
225,474
|
|
|
Total stockholders'
equity
|
365,881
|
|
|
344,538
|
|
|
Total liabilities and
stockholders' equity
|
$
|
558,095
|
|
|
$
|
570,012
|
|
|
BRIDGEPOINT
EDUCATION, INC.
Consolidated
Statements of Cash Flows
(In
thousands)
|
|
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
|
$
|
9,668
|
|
|
$
|
45,883
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Provision for bad
debts
|
28,184
|
|
|
47,119
|
|
|
Depreciation and
amortization
|
23,317
|
|
|
21,666
|
|
|
Amortization of
premium/discount
|
206
|
|
|
2,624
|
|
|
Deferred income
taxes
|
(7,096)
|
|
|
(6,962)
|
|
|
Stock-based
compensation
|
10,558
|
|
|
13,934
|
|
|
Excess tax benefit of
option exercises
|
(1,271)
|
|
|
(2,590)
|
|
|
Loss on impairment of
student loans receivable
|
2,435
|
|
|
1,998
|
|
|
Net gain on
marketable securities
|
(34)
|
|
|
(63)
|
|
|
Loss on termination
of leased space
|
6,470
|
|
|
328
|
|
|
Loss on disposal of
fixed assets
|
7,028
|
|
|
751
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Restricted
cash
|
11,042
|
|
|
10,048
|
|
|
Accounts
receivable
|
(27,323)
|
|
|
(15,973)
|
|
|
Prepaid expenses and
other current assets
|
659
|
|
|
(2,607)
|
|
|
Student loans
receivable
|
809
|
|
|
291
|
|
|
Other long-term
assets
|
266
|
|
|
(412)
|
|
|
Accounts payable and
accrued liabilities
|
(12,102)
|
|
|
13,220
|
|
|
Deferred revenue and
student deposits
|
(24,411)
|
|
|
(41,607)
|
|
|
Other
liabilities
|
(3,754)
|
|
|
(184)
|
|
|
Uncertain tax
position
|
568
|
|
|
(1,878)
|
|
|
Net cash provided
by operating activities
|
25,219
|
|
|
85,586
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Capital
expenditures
|
(11,429)
|
|
|
(14,825)
|
|
|
Purchases of
investments
|
(87,933)
|
|
|
(26,759)
|
|
|
Restricted
cash
|
(30)
|
|
|
—
|
|
|
Capitalized costs for
intangible assets
|
(3,634)
|
|
|
(19,563)
|
|
|
Sales and maturities
of investments
|
70,000
|
|
|
176,343
|
|
|
Net cash provided
by (used in) investing activities
|
(33,026)
|
|
|
115,196
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Proceeds from
exercise of stock options
|
3,108
|
|
|
10,464
|
|
|
Tax withholdings
related to net exercise of stock options
|
—
|
|
|
(9,170)
|
|
|
Excess tax benefit of
option exercises
|
1,271
|
|
|
2,590
|
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
—
|
|
|
1,234
|
|
|
Proceeds from the
exercise of warrants
|
—
|
|
|
231
|
|
|
Issuance of
restricted stock
|
(2,095)
|
|
|
(1,080)
|
|
|
Repurchase of common
stock
|
—
|
|
|
(201,496)
|
|
|
Net cash provided
by (used in) financing activities
|
2,284
|
|
|
(197,227)
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(5,523)
|
|
|
3,555
|
|
|
Cash and cash
equivalents at beginning of period
|
212,526
|
|
|
208,971
|
|
|
Cash and cash
equivalents at end of period
|
$
|
207,003
|
|
|
$
|
212,526
|
|
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SOURCE Bridgepoint Education