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): August 4, 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 August 4, 2015, Bridgepoint Education, Inc. issued a press release announcing financial results for its second quarter ended June 30, 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 August 4, 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: August 4, 2015
 
Bridgepoint Education, Inc.
 
 
 
 
By:
/s/ Daniel J. Devine
 
 
Name:  Daniel J. Devine
 
 
Title: Chief Financial Officer




News Release
Contact: Dan Devine, Chief Financial Officer
866.475.0317 x11117
investorrelations@bridgepointeducation.com

Bridgepoint Education Reports Second Quarter 2015 Results
SAN DIEGO (August 4, 2015) - 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.



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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