SAN DIEGO, Aug. 4, 2015 /PRNewswire/ -- Bridgepoint
Education (NYSE:BPI), a provider of postsecondary education
services, announced today its results for the three and six months
ended June 30, 2015.
Highlights for the three months ended June 30, 2015 are as follows:
- Total student enrollment at period end was 51,049.
- Revenue was $147.1 million
compared with revenue of $171.5
million for the same period in 2014.
- Operating loss was $0.5 million
compared with operating income of $22.4
million for the same period in 2014. Included in the
operating loss for the three months ended June 30, 2105 were restructuring and impairment
charges of $14.4 million.
- Net loss was $0.7 million
compared with net income of $13.0
million for the same period in 2014.
- Fully diluted loss per share was $0.01 compared with fully diluted earnings per
share of $0.28 for the same period in
2014.
Highlights for the six months ended June
30, 2015 are as follows:
- Revenue was $289.6 million
compared with revenue of $328.8
million for the same period in 2014.
- Operating loss was $1.7 million
compared with operating income of $14.6
million for the same period in 2014. Included in the
operating loss for the six months ended June
30, 2105 were restructuring and impairment charges of
$14.4 million.
- Net loss was $1.0 million
compared with net income of $8.6
million for the same period in 2014.
- Fully diluted loss per share was $0.02 compared with fully diluted earnings per
share of $0.19 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 51,049 students at June 30, 2015, compared with 61,117 students at
June 30, 2014.
For the second quarter of 2015, the twelve-month retention for
all Ashford students who were active on the last day of the second
quarter of 2014 was 62.7%. For the second quarter of 2014,
the twelve-month retention for all Ashford students who were active
on the last day of the second quarter of 2013 was 65.7%.
Financial Results
Revenue for the second quarter of 2015 was $147.1 million, compared with revenue of
$171.5 million for the same period in
2014. Revenue for the six months ended June
30, 2015 was $289.6 million,
compared with revenue of $328.8
million for the same period in 2014.
Operating loss for the second quarter of 2015 was $0.5 million compared with operating income of
$22.4 million for the same period in
2014. Operating loss for the six months ended June 30, 2015 was $1.7
million compared with operating income of $14.6 million for the same period in 2014.
Included in the operating loss for each of the three and six
months ended June 30, 2105 were
restructuring and impairment charges of $14.4 million.
Net loss for the second quarter of 2015 was $0.7 million compared with net income of
$13.0 million for the same period in
2014. Net loss for the six months ended June
30, 2015 was $1.0 million
compared with net income of $8.6
million for the same period in 2014.
Fully diluted loss per share for the second quarter of 2015 was
$0.01 compared with fully diluted
earnings per share of $0.28 for the
same period in 2014. Fully diluted loss per share for the six
months ended June 30, 2015 was
$0.02 compared with fully diluted
earnings per share of $0.19 for the
same period in 2014.
The Company recognized income tax expense for the six months
ended June 30, 2015 using a negative
effective tax rate of 50.5%.
Balance Sheet and Cash Flow
As of June 30, 2015, the Company had cash, restricted
cash, cash equivalents and marketable securities of $362.7 million, compared with $356.5 million as of December 31, 2014.
The Company generated $14.8
million of cash from operating activities during the six
months ended June 30, 2015, compared with $3.8 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 94760193. 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
September 4, 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
94760193.
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, respectively. 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.
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 outlook for 2015 and beyond. 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, the newly issued Gainful Employment rules and
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 (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, the Company's Quarterly Report on Form 10-Q for
the quarter ended March 31, 2015,
filed with the SEC on May 5, 2015,
and the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 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, expectations and assumptions
regarding future events based on information available at the time
such statements are made. Forward-looking statements speak
only as of the date they are made. The Company assumes no
obligation to update or revise any forward-looking statements to
reflect actual results or any changes in assumptions or
expectations or any other factors affecting such forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by applicable
securities laws.
Contact: Dan Devine, Chief
Financial Officer
866.475.0317 x11117
investorrelations@bridgepointeducation.com
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
$
|
147,057
|
|
$
|
171,522
|
|
$
|
289,575
|
|
$
|
328,792
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs
and services
|
71,410
|
|
76,853
|
|
146,459
|
|
159,934
|
Admissions advisory
and marketing
|
48,495
|
|
55,518
|
|
100,842
|
|
121,296
|
General and
administrative
|
13,246
|
|
16,737
|
|
29,568
|
|
33,006
|
Restructuring and
impairment charges
|
14,418
|
|
—
|
|
14,418
|
|
—
|
Total costs and
expenses
|
147,569
|
|
149,108
|
|
291,287
|
|
314,236
|
Operating income
(loss)
|
(512)
|
|
22,414
|
|
(1,712)
|
|
14,556
|
Other income,
net
|
345
|
|
712
|
|
1,034
|
|
1,079
|
Income (loss) before
income taxes
|
(167)
|
|
23,126
|
|
(678)
|
|
15,635
|
Income tax
expense
|
483
|
|
10,171
|
|
343
|
|
7,010
|
Net income
(loss)
|
$
|
(650)
|
|
$
|
12,955
|
|
$
|
(1,021)
|
|
$
|
8,625
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.01)
|
|
$
|
0.29
|
|
$
|
(0.02)
|
|
$
|
0.19
|
Diluted
|
(0.01)
|
|
0.28
|
|
(0.02)
|
|
0.19
|
Weighted average
number of common shares outstanding used in computing earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
45,674
|
|
45,233
|
|
45,552
|
|
45,066
|
Diluted
|
45,674
|
|
46,503
|
|
45,552
|
|
46,524
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
June
30, 2015
|
|
December
31, 2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
261,023
|
|
$
|
207,003
|
Restricted
cash
|
28,134
|
|
25,934
|
Investments
|
14,421
|
|
12,051
|
Accounts receivable,
net
|
28,164
|
|
21,274
|
Student loans
receivable, net
|
913
|
|
1,003
|
Deferred income
taxes
|
21,316
|
|
21,301
|
Prepaid expenses and
other current assets
|
25,229
|
|
22,818
|
Total current
assets
|
379,200
|
|
311,384
|
Property and
equipment, net
|
71,068
|
|
78,219
|
Investments
|
59,088
|
|
111,557
|
Student loans
receivable, net
|
8,191
|
|
9,510
|
Goodwill and
intangibles, net
|
23,046
|
|
24,775
|
Deferred income
taxes
|
19,520
|
|
20,175
|
Other long-term
assets
|
2,435
|
|
2,475
|
Total
assets
|
$
|
562,548
|
|
$
|
558,095
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
5,491
|
|
$
|
1,013
|
Accrued
liabilities
|
55,048
|
|
51,403
|
Deferred revenue and
student deposits
|
98,827
|
|
108,048
|
Total current
liabilities
|
159,366
|
|
160,464
|
Rent
liability
|
24,496
|
|
22,098
|
Other long-term
liabilities
|
9,573
|
|
9,652
|
Total
liabilities
|
193,435
|
|
192,214
|
Total stockholders'
equity
|
369,113
|
|
365,881
|
Total liabilities and
stockholders' equity
|
$
|
562,548
|
|
$
|
558,095
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
(1,021)
|
|
$
|
8,625
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
|
|
Provision for bad
debts
|
15,364
|
|
12,921
|
Depreciation and
amortization
|
10,629
|
|
11,972
|
Amortization of
premium/discount
|
225
|
|
(89)
|
Stock-based
compensation
|
5,635
|
|
5,058
|
Excess tax benefit of
option exercises
|
(314)
|
|
(986)
|
Loss on impairment of
student loans receivable
|
923
|
|
1,189
|
Net loss on
marketable securities
|
38
|
|
—
|
Loss on termination
of leased space
|
12,331
|
|
—
|
Loss on disposal of
fixed assets
|
1,545
|
|
52
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
4,596
|
|
4,518
|
Accounts
receivable
|
(22,079)
|
|
(15,755)
|
Prepaid expenses and
other current assets
|
(2,704)
|
|
(1,766)
|
Student loans
receivable
|
529
|
|
480
|
Other long-term
assets
|
40
|
|
86
|
Accounts payable and
accrued liabilities
|
595
|
|
(8,842)
|
Deferred revenue and
student deposits
|
(9,118)
|
|
(20,292)
|
Other
liabilities
|
(2,446)
|
|
(1,012)
|
Net cash provided by
(used in) operating activities
|
14,768
|
|
(3,841)
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(2,182)
|
|
(6,203)
|
Purchases of
investments
|
(192)
|
|
(72,426)
|
Non-operating
restricted cash
|
(6,796)
|
|
(200)
|
Capitalized costs for
intangible assets
|
(1,191)
|
|
(2,112)
|
Sales and maturities
of investments
|
50,195
|
|
20,000
|
Net cash provided by
(used in) investing activities
|
39,834
|
|
(60,941)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
exercise of stock options
|
226
|
|
2,964
|
Excess tax benefit of
option exercises
|
314
|
|
986
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
136
|
|
—
|
Tax withholdings on
issuance of stock awards
|
(1,258)
|
|
(1,204)
|
Net cash provided by
(used in) financing activities
|
(582)
|
|
2,746
|
Net increase
(decrease) in cash and cash equivalents
|
54,020
|
|
(62,036)
|
Cash and cash
equivalents at beginning of period
|
207,003
|
|
212,526
|
Cash and cash
equivalents at end of period
|
$
|
261,023
|
|
$
|
150,490
|
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SOURCE Bridgepoint Education