SAN DIEGO, Nov. 5, 2015 /PRNewswire/ -- Bridgepoint
Education (NYSE:BPI), a provider of postsecondary education
services, announced today its results for the three and nine months
ended September 30, 2015.
Financial Results for the Three Months Ended September 30, 2015
Revenue for the third quarter of 2015 was $140.8 million, compared with revenue of
$162.7 million for the same period in
2014.
Operating loss for the third quarter of 2015 was $34.5 million compared with operating income of
$10.6 million for the same period in
2014.
Net loss for the third quarter of 2015 was $62.7 million compared with net income of
$6.3 million for the same period in
2014.
Fully diluted loss per share for the third quarter of 2015 was
$1.37 compared with fully diluted
earnings per share of $0.14 for the
same period in 2014.
The Company recognized income tax expense of $28.7 million for the three months ended
September 30, 2015.
Non-GAAP Financial Results for the Three Months Ended
September 30, 2015
Non-GAAP operating income for the third quarter was $10.4 million compared with non-GAAP operating
income of $10.6 million for the same
period in 2014. Non-GAAP operating income for the third quarter
excludes restructuring and impairment charges of $44.9 million.
Non-GAAP net income for the third quarter was $6.0 million compared with non-GAAP net income of
$6.3 million for the same period in
2014. Non-GAAP net income for the third quarter excludes
restructuring and impairment charges of $44.9 million and the related tax effect, as well
as tax expense of $40.7 million to
establish a valuation allowance against deferred tax assets.
Non-GAAP fully diluted earnings per share for the third quarter
was $0.13 compared with non-GAAP
fully diluted earnings per share of $0.14 for the same period in 2014.
Refer to the accompanying tables and related explanations for a
detailed reconciliation of GAAP to non-GAAP operating income, net
income and diluted earnings per share.
Financial Results for the Nine Months Ended September 30, 2015
Revenue for the nine months ended September 30, 2015 was $430.3 million, compared with revenue of
$491.4 million for the same period in
2014.
Operating loss for the nine months ended September 30, 2015 was $36.2 million compared with operating income of
$25.1 million for the same period in
2014.
Net loss for the nine months ended September 30, 2015 was $63.8 million compared with net income of
$14.9 million for the same period in
2014.
Fully diluted loss per share for the nine months ended
September 30, 2015 was $1.40 compared with fully diluted earnings per
share of $0.32 for the same period in
2014.
The Company recognized income tax expense of $29.1 million for the nine months ended
September 30, 2015.
Non-GAAP Financial Results for the Nine Months Ended
September 30, 2015
Non-GAAP operating income for the nine months ended September 30, 2015 was $23.1 million compared with non-GAAP operating
income of $25.1 million for the same
period in 2014. Non-GAAP operating income for the nine months ended
September 30, 2015 excludes
restructuring and impairment charges of $59.3 million.
Non-GAAP net income for the nine months ended September 30, 2015 was $14.0 million compared with non-GAAP net income
of $14.9 million for the same period
in 2014. Non-GAAP net income for the nine months ended September 30, 2015 excludes restructuring and
impairment charges of $59.3 million
and the related tax effect, as well as tax expense of $40.7 million to establish a valuation allowance
against deferred tax assets.
Non-GAAP fully diluted earnings per share for the nine months
ended September 30, 2015 was
$0.30 compared with non-GAAP fully
diluted earnings per share of $0.32
for the same period in 2014.
Refer to the accompanying tables and related explanations for a
detailed reconciliation of GAAP to non-GAAP operating income, net
income and diluted earnings per share.
Balance Sheet and Cash Flow
As of September 30, 2015, the Company had cash,
restricted cash, cash equivalents and marketable securities of
$360.5 million, compared with
$356.5 million as of December 31, 2014.
The Company generated $16.6
million of cash from operating activities during the nine
months ended September 30, 2015, compared with $24.6 million of cash provided by operating
activities during the same period in 2014.
Student Enrollment
Total student enrollment at Bridgepoint Education's academic
institutions, Ashford University and
University of the Rockies, was 49,982 students at September 30, 2015, compared with 59,552 students
at September 30, 2014.
For the third quarter of 2015, the twelve-month retention for
all Ashford students who were active on the last day of the third
quarter of 2014 was 60.1%. For the third quarter of 2014, the
twelve-month retention for all Ashford students who were active on
the last day of the third quarter of 2013 was 65.8%.
About Non-GAAP Financial Measures
The Company uses non-GAAP financial measures for internal
evaluation and to report the results of its business. These
non-GAAP financial measures include non-GAAP operating income,
non-GAAP net income, and non-GAAP diluted earnings per share. These
measures are not prepared in accordance with, nor an alternative
to, U.S. generally accepted accounting principles, or GAAP. These
measures are intended to supplement GAAP financial information, and
may be different from non-GAAP financial measures used by other
companies. The Company believes that these measures provide useful
information to its management, board of directors and investors
regarding its ongoing operating activities and business trends
related to its financial condition and results of operations. The
Company believes that it is useful to provide investors with
information to understand how specific line items in the statement
of operations are affected by certain items that may not be
indicative of the Company's core business operating results, such
as restructuring and impairment expenses and income tax
adjustments. Further, to the extent that other companies use
similar methods in calculating non-GAAP measures, the provision of
supplemental non-GAAP information can allow for a comparison of the
Company's relative performance against other companies that also
report non-GAAP operating results. In addition, the Company's
management and board of directors use these non-GAAP financial
measures in developing operating budgets and in reviewing the
Company's results of operations, since such items have limited
impact on their current and future operating decisions.
Additionally, the Company believes that inclusion of these non-GAAP
financial measures provides consistency and comparability with its
past reports of financial results. However, investors should be
aware that non-GAAP measures have inherent limitations and should
be read in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP. Refer to the
accompanying tables for a detailed reconciliation of GAAP to
non-GAAP operating income, net income and diluted earnings per
share.
Earnings Conference Call and Webcast
Bridgepoint Education will host a conference call at
5:00 p.m. ET (2:00 p.m. PT) today to discuss its latest
financial results and recent highlights. The dial-in number for
callers in the United States /
Canada is 866-205-7692, and for
other callers, 970-315-0754. The access code for all callers is
67706253. 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
December 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
67706253.
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,
the Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2015, filed with the SEC on
August 4, 2015, and the Company's
Quarterly Report on Form 10-Q for the quarter ended September 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: Kevin Royal, Chief
Financial Officer
866.475.0317 x11120
investorrelations@bridgepointeducation.com
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
$
|
140,762
|
|
|
$
|
162,654
|
|
|
$
|
430,337
|
|
|
$
|
491,446
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs
and services
|
69,197
|
|
|
79,707
|
|
|
215,656
|
|
|
239,641
|
|
Admissions advisory
and marketing
|
47,794
|
|
|
56,783
|
|
|
148,636
|
|
|
178,079
|
|
General and
administrative
|
13,346
|
|
|
15,583
|
|
|
42,914
|
|
|
48,589
|
|
Restructuring and
impairment charges
|
44,904
|
|
|
—
|
|
|
59,322
|
|
|
—
|
|
Total costs and
expenses
|
175,241
|
|
|
152,073
|
|
|
466,528
|
|
|
466,309
|
|
Operating income
(loss)
|
(34,479)
|
|
|
10,581
|
|
|
(36,191)
|
|
|
25,137
|
|
Other income,
net
|
465
|
|
|
1,080
|
|
|
1,499
|
|
|
2,159
|
|
Income (loss) before
income taxes
|
(34,014)
|
|
|
11,661
|
|
|
(34,692)
|
|
|
27,296
|
|
Income tax
expense
|
28,732
|
|
|
5,370
|
|
|
29,075
|
|
|
12,380
|
|
Net income
(loss)
|
$
|
(62,746)
|
|
|
$
|
6,291
|
|
|
$
|
(63,767)
|
|
|
$
|
14,916
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.37)
|
|
|
$
|
0.14
|
|
|
$
|
(1.40)
|
|
|
$
|
0.33
|
|
Diluted
|
(1.37)
|
|
|
0.14
|
|
|
(1.40)
|
|
|
0.32
|
|
Weighted average
number of common shares outstanding used in computing earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
45,754
|
|
|
45,301
|
|
|
45,620
|
|
|
45,145
|
|
Diluted
|
45,754
|
|
|
46,474
|
|
|
45,620
|
|
|
46,495
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
(Unaudited)
|
|
|
September 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
242,673
|
|
|
$
|
207,003
|
|
Restricted
cash
|
24,591
|
|
|
25,934
|
|
Investments
|
21,902
|
|
|
12,051
|
|
Accounts receivable,
net
|
30,793
|
|
|
21,274
|
|
Student loans
receivable, net
|
928
|
|
|
1,003
|
|
Deferred income
taxes
|
12,757
|
|
|
21,301
|
|
Prepaid expenses and
other current assets
|
33,577
|
|
|
22,818
|
|
Total current
assets
|
367,221
|
|
|
311,384
|
|
Property and
equipment, net
|
30,560
|
|
|
78,219
|
|
Investments
|
71,364
|
|
|
111,557
|
|
Student loans
receivable, net
|
7,607
|
|
|
9,510
|
|
Goodwill and
intangibles, net
|
22,221
|
|
|
24,775
|
|
Deferred income
taxes
|
4,118
|
|
|
20,175
|
|
Other long-term
assets
|
2,209
|
|
|
2,475
|
|
Total
assets
|
$
|
505,300
|
|
|
$
|
558,095
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
2,128
|
|
|
$
|
1,013
|
|
Accrued
liabilities
|
72,364
|
|
|
51,403
|
|
Deferred revenue and
student deposits
|
89,614
|
|
|
108,048
|
|
Total current
liabilities
|
164,106
|
|
|
160,464
|
|
Rent
liability
|
21,397
|
|
|
22,098
|
|
Other long-term
liabilities
|
11,902
|
|
|
9,652
|
|
Total
liabilities
|
197,405
|
|
|
192,214
|
|
Total stockholders'
equity
|
307,895
|
|
|
365,881
|
|
Total liabilities and
stockholders' equity
|
$
|
505,300
|
|
|
$
|
558,095
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
|
(63,767)
|
|
|
$
|
14,916
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Provision for bad
debts
|
24,269
|
|
|
21,961
|
|
Depreciation and
amortization
|
15,403
|
|
|
17,914
|
|
Amortization of
premium/discount
|
364
|
|
|
85
|
|
Deferred income
taxes
|
24,081
|
|
|
1,124
|
|
Stock-based
compensation
|
7,324
|
|
|
7,891
|
|
Excess tax benefit of
option exercises
|
(426)
|
|
|
(1,171)
|
|
Loss on impairment of
student loans receivable
|
1,207
|
|
|
1,466
|
|
Net gain (loss) on
marketable securities
|
125
|
|
|
(22)
|
|
Loss on termination
of leased space
|
13,540
|
|
|
—
|
|
Loss on impairment of
fixed assets
|
38,855
|
|
|
80
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
7,712
|
|
|
12,202
|
|
Accounts
receivable
|
(33,524)
|
|
|
(30,314)
|
|
Prepaid expenses and
other current assets
|
5,537
|
|
|
3,317
|
|
Student loans
receivable
|
831
|
|
|
763
|
|
Other long-term
assets
|
266
|
|
|
368
|
|
Accounts payable and
accrued liabilities
|
(2,883)
|
|
|
(532)
|
|
Deferred revenue and
student deposits
|
(18,313)
|
|
|
(23,600)
|
|
Other
liabilities
|
(3,960)
|
|
|
(1,864)
|
|
Net cash provided by
operating activities
|
16,641
|
|
|
24,584
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(2,324)
|
|
|
(9,644)
|
|
Purchases of
investments
|
(20,242)
|
|
|
(87,855)
|
|
Non-operating
restricted cash
|
(6,369)
|
|
|
(29)
|
|
Capitalized costs for
intangible assets
|
(1,761)
|
|
|
(2,957)
|
|
Sales and maturities
of investments
|
50,195
|
|
|
50,000
|
|
Net cash provided by
(used in) investing activities
|
19,499
|
|
|
(50,485)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of stock options
|
260
|
|
|
3,076
|
|
Excess tax benefit of
option exercises
|
426
|
|
|
1,171
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
136
|
|
|
—
|
|
Tax withholdings on
issuance of stock awards
|
(1,292)
|
|
|
(2,093)
|
|
Net cash (used in)
provided by financing activities
|
(470)
|
|
|
2,154
|
|
Net increase
(decrease) in cash and cash equivalents
|
35,670
|
|
|
(23,747)
|
|
Cash and cash
equivalents at beginning of period
|
207,003
|
|
|
212,526
|
|
Cash and cash
equivalents at end of period
|
$
|
242,673
|
|
|
$
|
188,779
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
Income (Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
|
(34,479)
|
|
|
$
|
10,581
|
|
|
$
|
(36,191)
|
|
|
$
|
25,137
|
|
Restructuring and
impairment charges
|
44,904
|
|
|
—
|
|
|
59,322
|
|
|
—
|
|
Non-GAAP operating
income
|
$
|
10,425
|
|
|
$
|
10,581
|
|
|
$
|
23,131
|
|
|
$
|
25,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(62,746)
|
|
|
$
|
6,291
|
|
|
$
|
(63,767)
|
|
|
$
|
14,916
|
|
Restructuring and
impairment charges
|
44,904
|
|
|
—
|
|
|
59,322
|
|
|
—
|
|
Income tax expense
related to restructuring and impairment charges
(1)
|
(16,839)
|
|
|
—
|
|
|
(22,246)
|
|
|
—
|
|
Incremental income
tax expense related to establishment of valuation
allowance
|
40,666
|
|
|
—
|
|
|
40,666
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
5,985
|
|
|
$
|
6,291
|
|
|
$
|
13,975
|
|
|
$
|
14,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share Reconciliation:
|
|
|
|
|
|
|
|
GAAP diluted earnings
(loss) per share
|
$
|
(1.37)
|
|
|
$
|
0.14
|
|
|
$
|
(1.40)
|
|
|
$
|
0.32
|
|
Restructuring and
impairment charges
|
0.98
|
|
|
—
|
|
|
1.30
|
|
|
—
|
|
Income tax expense
related to restructuring and impairment charges
(1)
|
(0.37)
|
|
|
—
|
|
|
(0.49)
|
|
|
—
|
|
Incremental income
tax expense related to establishment of valuation
allowance
|
0.89
|
|
|
—
|
|
|
0.89
|
|
|
—
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
0.30
|
|
|
$
|
0.32
|
|
|
(1) -
Calculated using a statutory tax rate equal to 37.5%.
|
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SOURCE Bridgepoint Education, Inc.