UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
 Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 Date of Report (Date of earliest event reported): May 5, 2015
 BRIDGEPOINT EDUCATION, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
001-34272
 
59-3551629
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
13500 Evening Creek Drive North
San Diego, California
 
92128
(Address of principal executive offices)
 
(Zip Code)
(858) 668-2586
(Registrant’s telephone number, including area code)
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 o           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02.     Results of Operations and Financial Condition.
On May 5, 2015, Bridgepoint Education, Inc. issued a press release announcing financial results for its first quarter ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2. of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that we specifically incorporate it by reference into such a filing.
Item 9.01.     Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit No.
 
Description
99.1
 
Press Release of Bridgepoint Education, Inc. dated May 5, 2015


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 5, 2015
 
Bridgepoint Education, Inc.
 
 
 
 
By:
/s/ Daniel J. Devine
 
 
Name:  Daniel J. Devine
 
 
Title: Chief Financial Officer




News Release
Contact: Paul Goodson, Associate Vice President of Investor Relations
866.475.0317 x2271
investorrelations@bridgepointeducation.com

Bridgepoint Education Reports First Quarter 2015 Results
SAN DIEGO (May 5, 2015) - Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced today its results for the three months ended March 31, 2015.

Highlights for the first quarter ended March 31, 2015, are as follows:
•
Total student enrollment at period end was 55,322.
•
Revenue was $142.5 million compared with revenue of $157.3 million for the same period in 2014.
•
Operating loss was $1.2 million compared with an operating loss of $7.9 million for the same period in 2014.
•
Net loss was $0.4 million compared with a net loss $4.3 million for the same period in 2014.
•
Fully diluted loss per share was $0.01 compared with fully diluted loss per share of $0.10 for the same period in 2014.

Student Enrollment
Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 55,322 students at March 31, 2015, compared with 64,495 students at March 31, 2014.
For the first quarter of 2015, the 12-month retention for all Ashford students who were active on the last day of the first quarter of 2014 was 63.9%.  For the first quarter of 2014, the 12-month retention for all Ashford students who were active on the last day of the first quarter of 2013 was 64.6%.
Financial Results
Revenue for the first quarter of 2015 was $142.5 million, compared with revenue of $157.3 million for the same period in 2014.
Operating loss for the first quarter of 2015 was $1.2 million compared with an operating loss of $7.9 million for the same period in 2014.
Net loss for the first quarter of 2015 was $0.4 million compared with a net loss of $4.3 million for the same period in 2014.
Fully diluted loss per share for the first quarter of 2015 was $0.01 compared with fully diluted loss per share of $0.10 for the same period in 2014.
The Company recognized an income tax benefit for the first quarter of 2015 at an effective tax rate of 27.4%.
Balance Sheet and Cash Flow
As of March 31, 2015, the Company had cash, restricted cash, cash equivalents and marketable securities of $355.3 million, compared with $356.5 million as of December 31, 2014.


The Company generated $7.4 million of cash from operating activities during the three months ended March 31, 2015, compared with $16.5 million of cash used in operating activities during the same period in 2014.
Earnings Conference Call and Webcast
Bridgepoint Education will host a conference call at 11:30 a.m. ET (8:30 a.m. PT) today to discuss its latest financial results and recent highlights. The dial-in number for callers in the United States / Canada is 866-859-7412, and for other callers, 832-900-4623. The access code for all callers is 37807845. A live webcast will also be available on the Company's website at http://ir.bridgepointeducation.com.
A replay of the call will be available via telephone through June 5, 2015. To access the replay, dial 855-859-2056 in the United States / Canada and for other callers, 404-537-3406; then enter the access code 37807845.
About Bridgepoint Education
Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest technology to reimagine the modern student experience. 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 campuses in Iowa and Colorado. Bridgepoint stands for greater access, social learning, and exposure to leading minds.
For more information, visit http://ir.bridgepointeducation.com/investor-relations/ or 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, 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 (the “SEC”), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 10, 2015, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, 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.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

 
Three Months Ended March 31,
 
2015
 
2014
Revenue
$
142,518

 
$
157,270

Costs and expenses:
 
 
 
Instructional costs and services
75,049

 
83,081

Admissions advisory and marketing
52,347

 
65,778

General and administrative
16,322

 
16,269

Total costs and expenses
143,718

 
165,128

Operating loss
(1,200
)
 
(7,858
)
Other income, net
689

 
367

Loss before income taxes
(511
)
 
(7,491
)
Income tax benefit
(140
)
 
(3,161
)
Net loss
$
(371
)
 
$
(4,330
)
Earnings (loss) per share:
 
 
 
Basic
$
(0.01
)
 
$
(0.10
)
Diluted
(0.01
)
 
(0.10
)
Weighted average number of common shares outstanding used in computing earnings per share:
 
 
 
Basic
45,428

 
44,897

Diluted
45,428

 
44,897



BRIDGEPOINT EDUCATION, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

 
March 31,
2015
 
December 31,
2014
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
241,277

 
$
207,003

Restricted cash
20,206

 
25,934

Investments
12,177

 
12,051

Accounts receivable, net
30,918

 
21,274

Student loans receivable, net
859

 
1,003

Deferred income taxes
21,295

 
21,301

Prepaid expenses and other current assets
22,321

 
22,818

Total current assets
349,053

 
311,384

Property and equipment, net
75,728

 
78,219

Investments
81,593

 
111,557

Student loans receivable, net
9,146

 
9,510

Goodwill and intangibles, net
23,901

 
24,775

Deferred income taxes
20,043

 
20,175

Other long-term assets
2,661

 
2,475

Total assets
$
562,125

 
$
558,095

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
6,894

 
$
1,013

Accrued liabilities
55,986

 
51,403

Deferred revenue and student deposits
102,688

 
108,048

Total current liabilities
165,568

 
160,464

Rent liability
20,275

 
22,098

Other long-term liabilities
9,728

 
9,652

Total liabilities
195,571

 
192,214

Total stockholders' equity
366,554

 
365,881

Total liabilities and stockholders' equity
$
562,125

 
$
558,095



BRIDGEPOINT EDUCATION, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
Three Months Ended March 31,
 
2015
 
2014
Cash flows from operating activities
 
 
 
Net loss
$
(371
)
 
$
(4,330
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Provision for bad debts
8,396

 
7,560

Depreciation and amortization
5,345

 
6,029

Amortization of premium/discount
19

 
(19
)
Stock-based compensation
2,245

 
1,893

Excess tax benefit of option exercises
(231
)
 
(793
)
Loss on impairment of student loans receivable
359

 
265

Net loss on marketable securities
34

 
—

Loss on disposal of fixed assets
163

 
80

Changes in operating assets and liabilities:
 
 
 
Restricted cash
5,716

 
8,208

Accounts receivable
(17,931
)
 
(14,092
)
Prepaid expenses and other current assets
360

 
(6,297
)
Student loans receivable
260

 
198

Other long-term assets
(185
)
 
(240
)
Accounts payable and accrued liabilities
10,270

 
9,526

Deferred revenue and student deposits
(5,313
)
 
(24,084
)
Other liabilities
(1,748
)
 
(403
)
Net cash provided by (used in) operating activities
7,388

 
(16,499
)
Cash flows from investing activities
 
 
 
Capital expenditures
(1,626
)
 
(3,054
)
Purchases of investments
(142
)
 
(23,111
)
Non-operating restricted cash
12

 
—

Capitalized costs for intangible assets
(592
)
 
(1,121
)
Sales and maturities of investments
30,101

 
20,000

Net cash provided by (used in) investing activities
27,753

 
(7,286
)
Cash flows from financing activities
 
 
 
Proceeds from exercise of stock options
127

 
2,361

Excess tax benefit of option exercises
231

 
793

Tax withholdings on issuance of stock awards
(1,225
)
 
(1,204
)
Net cash provided by (used in) financing activities
(867
)
 
1,950

Net increase (decrease) in cash and cash equivalents
34,274

 
(21,835
)
Cash and cash equivalents at beginning of period
207,003

 
212,526

Cash and cash equivalents at end of period
$
241,277

 
$
190,691



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