SAN DIEGO, Aug. 2, 2016
/PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider
of postsecondary education services, today announced its results
for the three and six months ended June 30, 2016.
Financial Results for the Three Months Ended June 30,
2016
Revenue for the three months ended June 30, 2016 was
$138.0 million, compared with revenue
of $147.1 million for the three
months ended June 30, 2015.
Operating income for the three months ended June 30, 2016
was $3.4 million, compared with
operating loss of $0.5 million for
the three months ended June 30, 2015.
Net income for the three months ended June 30, 2016 was
$3.3 million, compared with net loss
of $0.7 million for the three months
ended June 30, 2015.
Diluted earnings per share for the three months ended
June 30, 2016 was $0.07,
compared with diluted loss per share of $0.01 for the three months ended June 30,
2015.
The Company recognized income tax expense of $0.7 million for the three months ended
June 30, 2016, compared with income tax expense of
$0.5 million for the three months
ended June 30, 2015.
Non-GAAP Financial Results for the Three Months Ended
June 30, 2016
Non-GAAP operating income for the three months ended
June 30, 2016 was $7.3 million,
compared with non-GAAP operating income of $13.9 million for the three months ended
June 30, 2015. Non-GAAP operating income for the three months
ended June 30, 2016 excludes a legal charge of $2.3 million and restructuring and impairment
charges of $1.7 million.
Non-GAAP net income for the three months ended June 30,
2016 was $5.8 million, compared with
non-GAAP net income of $8.4 million
for the three months ended June 30, 2015. Non-GAAP net income
for the three months ended June 30, 2016 excludes the
$2.3 million legal charge referred to
above, restructuring and impairment charges of $1.7 million and a tax benefit of $1.6 million.
Non-GAAP diluted earnings per share for the three months ended
June 30, 2016 was $0.12,
compared with non-GAAP diluted earnings per share of $0.18 for the three months ended June 30,
2015.
Financial Results for the Six Months Ended June 30,
2016
Revenue for the six months ended June 30, 2016 was
$271.0 million, compared with revenue
of $289.6 million for the six months
ended June 30, 2015.
Operating loss for the six months ended June 30, 2016 was
$12.9 million, compared with
operating loss of $1.7 million for
the six months ended June 30, 2015.
Net loss for the six months ended June 30, 2016 was
$6.8 million, compared with net loss
of $1.0 million for the six months
ended June 30, 2015.
Diluted loss per share for the six months ended June 30,
2016 was $0.15, compared with diluted
loss per share of $0.02 for the six
months ended June 30, 2015.
The Company recognized income tax benefit of $4.8 million for the six months ended
June 30, 2016, compared with income tax expense of
$0.3 million for the six months ended
June 30, 2015.
Non-GAAP Financial Results for the Six Months Ended
June 30, 2016
Non-GAAP operating income for the six months ended June 30,
2016 was $5.6 million, compared with
non-GAAP operating income of $12.7
million for the six months ended June 30, 2015.
Non-GAAP operating income for the six months ended June 30,
2016 excludes a legal charge of $16.2
million and restructuring and impairment charges of
$2.4 million.
Non-GAAP net income for the six months ended June 30, 2016
was $4.8 million, compared with
non-GAAP net income of $8.0 million
for the six months ended June 30, 2015. Non-GAAP net income
for the six months ended June 30, 2016 excludes the
$16.2 million legal charge referred
to above, restructuring and impairment charges of $2.4 million and a tax benefit amount of
$7.0 million.
Non-GAAP diluted earnings per share for the six months ended
June 30, 2016 was $0.10,
compared with non-GAAP diluted earnings per share of $0.18 for the six months ended June 30,
2015.
Balance Sheet and Cash Flow
As of June 30, 2016, the Company had cash and cash
equivalents, restricted cash and investments of $367.3 million, compared with cash and cash
equivalents, restricted cash and investments of $374.0 million as of December 31, 2015.
The Company used $0.7 million of
cash for operating activities during the six months ended
June 30, 2016, compared with $14.8
million of cash provided by operating activities during the
six months ended June 30, 2015.
Student Enrollment
Total student enrollment at the Company's academic institutions,
Ashford University and University of
the Rockies, was 48,895 students at June 30, 2016, compared
with total student enrollment of 51,049 at June 30, 2015.
As of June 30, 2016, the 12-month retention for all Ashford
students who were active on the last day of the second quarter of
2015 was 62.5%. As of June 30, 2015, the 12-month
retention for all Ashford students who were active on the last day
of the second quarter of 2014 was 62.7%.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for
non-GAAP operating income, non-GAAP net income and non-GAAP diluted
earnings per share, which exclude our legal charge, restructuring
and impairment charges, and certain income tax adjustments, as
applicable. These non-GAAP financial measures are not prepared in
accordance with U.S. generally accepted accounting principles
(GAAP) and are not based on a comprehensive set of accounting
rules. Management believes non-GAAP financial measures are useful
in providing investors with an understanding of how specific line
items in the consolidated statements of income are affected by
items that may not be indicative of the operating results of the
Company's core business. To the extent that other companies use
similar methods in calculating and reporting non-GAAP operating
results, the Company believes provision of supplemental non-GAAP
financial information allows for a meaningful comparison of the
Company's performance against the performance of other companies.
The Company further believes that these non-GAAP financial measures
provide useful information regarding its ongoing operating
activities and business trends related to its results of
operations, as well as a meaningful comparison with historical
financial results. The Company's management and board of directors
utilize these non-GAAP financial measures, together with the
Company's financial statements prepared in accordance with GAAP, in
developing operating budgets and evaluating the Company's
performance. These non-GAAP financial measures are intended to
supplement GAAP financial information, and should not be considered
as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. In addition, these
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies. Refer to the
accompanying tables for a detailed reconciliation of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures.
Earnings Conference Call and Webcast
Bridgepoint Education will host a conference call at
5:00 p.m. Eastern Time (2:00 p.m. Pacific Standard Time) today to discuss
its latest financial results and recent highlights. The dial-in
number for callers in the United
States and Canada is
866-859-7412, and the dial-in number for other callers is
832-900-4623. The access code for all callers is 53468218. A live
broadcast of the call 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 2, 2016. To access the
replay, callers in the United
States and Canada should
dial 855-859-2056 and other callers should dial 404-537-3406, and
enter the access code 53468218.
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. Together, these
programs, technologies, and resources represent a unique model for
advancing education in the 21st century. Bridgepoint stands for
greater access, social learning, and exposure to leading minds. For
more information, visit www.bridgepointeducation.com 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 2016 and beyond. These
forward-looking 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, 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 or legal 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 Company's filings with the Securities and Exchange Commission
(SEC), including, but not limited to, the Company's Annual Report
on Form 10-K for the year ended December 31, 2015 filed with
the SEC on March 8, 2016, the
Company's quarterly reports on Form 10-Q and the Company's current
reports on Form 8-K. 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, expectations or 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 (Loss)
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
137,970
|
|
|
$
|
147,057
|
|
|
$
|
270,972
|
|
|
$
|
289,575
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional
costs and services
|
66,448
|
|
|
71,410
|
|
|
136,034
|
|
|
146,459
|
|
Admissions
advisory and marketing
|
52,531
|
|
|
48,495
|
|
|
104,208
|
|
|
100,842
|
|
General and
administrative
|
11,650
|
|
|
13,246
|
|
|
25,105
|
|
|
29,568
|
|
Legal
accrual
|
2,292
|
|
|
—
|
|
|
16,166
|
|
|
—
|
|
Restructuring
and impairment charges
|
1,692
|
|
|
14,418
|
|
|
2,401
|
|
|
14,418
|
|
Total costs and
expenses
|
134,613
|
|
|
147,569
|
|
|
283,914
|
|
|
291,287
|
|
Operating income
(loss)
|
3,357
|
|
|
(512)
|
|
|
(12,942)
|
|
|
(1,712)
|
|
Other income,
net
|
652
|
|
|
345
|
|
|
1,335
|
|
|
1,034
|
|
Income (loss) before
income taxes
|
4,009
|
|
|
(167)
|
|
|
(11,607)
|
|
|
(678)
|
|
Income tax expense
(benefit)
|
671
|
|
|
483
|
|
|
(4,833)
|
|
|
343
|
|
Net income
(loss)
|
$
|
3,338
|
|
|
$
|
(650)
|
|
|
$
|
(6,774)
|
|
|
$
|
(1,021)
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.02)
|
|
Diluted
|
0.07
|
|
|
(0.01)
|
|
|
(0.15)
|
|
|
(0.02)
|
|
Weighted average
number of common shares outstanding used in computing earnings
(loss) per share:
|
|
|
|
|
|
|
|
Basic
|
46,289
|
|
|
45,674
|
|
|
46,111
|
|
|
45,552
|
|
Diluted
|
47,001
|
|
|
45,674
|
|
|
46,111
|
|
|
45,552
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
265,366
|
|
|
$
|
282,145
|
|
Restricted
cash
|
21,623
|
|
|
24,685
|
|
Investments
|
35,329
|
|
|
19,387
|
|
Accounts
receivable, net
|
29,797
|
|
|
24,091
|
|
Student loans
receivable, net
|
955
|
|
|
775
|
|
Prepaid
expenses and other current assets
|
41,433
|
|
|
52,192
|
|
Total current
assets
|
394,503
|
|
|
403,275
|
|
Property and
equipment, net
|
17,429
|
|
|
21,742
|
|
Investments
|
45,000
|
|
|
47,770
|
|
Student loans
receivable, net
|
6,589
|
|
|
7,394
|
|
Goodwill and
intangibles, net
|
19,246
|
|
|
21,265
|
|
Other long-term
assets
|
3,576
|
|
|
5,320
|
|
Total
assets
|
$
|
486,343
|
|
|
$
|
506,766
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued liabilities
|
$
|
74,643
|
|
|
$
|
79,196
|
|
Deferred
revenue and student deposits
|
81,216
|
|
|
88,756
|
|
Total current
liabilities
|
155,859
|
|
|
167,952
|
|
Rent
liability
|
15,911
|
|
|
20,118
|
|
Other long-term
liabilities
|
14,801
|
|
|
15,046
|
|
Total
liabilities
|
186,571
|
|
|
203,116
|
|
Total stockholders'
equity
|
299,772
|
|
|
303,650
|
|
Total liabilities and
stockholders' equity
|
$
|
486,343
|
|
|
$
|
506,766
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(6,774)
|
|
|
$
|
(1,021)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Provision for
bad debts
|
15,977
|
|
|
15,364
|
|
Depreciation
and amortization
|
6,913
|
|
|
10,629
|
|
Amortization
of premium/discount
|
6
|
|
|
225
|
|
Stock-based
compensation
|
4,256
|
|
|
5,635
|
|
Excess tax
benefit of option exercises
|
—
|
|
|
(314)
|
|
Loss on
impairment of student loans receivable
|
242
|
|
|
923
|
|
Net (gain)
loss on marketable securities
|
(48)
|
|
|
38
|
|
Loss on
termination of leased space
|
—
|
|
|
12,331
|
|
Loss on
disposal or impairment of fixed assets
|
809
|
|
|
1,545
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted
cash
|
3,089
|
|
|
4,596
|
|
Accounts
receivable
|
(21,575)
|
|
|
(22,079)
|
|
Prepaid
expenses and other current assets
|
(4,944)
|
|
|
(2,704)
|
|
Student loans
receivable
|
632
|
|
|
529
|
|
Other
long-term assets
|
1,744
|
|
|
40
|
|
Accounts
payable and accrued liabilities
|
10,966
|
|
|
595
|
|
Deferred
revenue and student deposits
|
(7,530)
|
|
|
(9,118)
|
|
Other
liabilities
|
(4,451)
|
|
|
(2,446)
|
|
Net cash (used in) provided
by operating activities
|
(688)
|
|
|
14,768
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(944)
|
|
|
(2,182)
|
|
Purchases of
investments
|
(20,205)
|
|
|
(192)
|
|
Non-operating
restricted cash
|
(27)
|
|
|
(6,796)
|
|
Capitalized costs for
intangible assets
|
(464)
|
|
|
(1,191)
|
|
Sales of
investments
|
—
|
|
|
10,101
|
|
Maturities of
investments
|
7,103
|
|
|
40,094
|
|
Net cash (used in) provided
by investing activities
|
(14,537)
|
|
|
39,834
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of stock options
|
138
|
|
|
226
|
|
Excess tax benefit of
option exercises
|
—
|
|
|
314
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
112
|
|
|
136
|
|
Tax withholdings on
issuance of stock awards
|
(1,804)
|
|
|
(1,258)
|
|
Net cash used in financing
activities
|
(1,554)
|
|
|
(582)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(16,779)
|
|
|
54,020
|
|
Cash and cash
equivalents at beginning of period
|
282,145
|
|
|
207,003
|
|
Cash and cash
equivalents at end of period
|
$
|
265,366
|
|
|
$
|
261,023
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Income (Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
|
3,357
|
|
|
$
|
(512)
|
|
|
$
|
(12,942)
|
|
|
$
|
(1,712)
|
|
Legal
accrual
|
2,292
|
|
|
—
|
|
|
16,166
|
|
|
—
|
|
Restructuring
and impairment charges
|
1,692
|
|
|
14,418
|
|
|
2,401
|
|
|
14,418
|
|
Non-GAAP operating
income
|
$
|
7,341
|
|
|
$
|
13,906
|
|
|
$
|
5,625
|
|
|
$
|
12,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
3,338
|
|
|
$
|
(650)
|
|
|
$
|
(6,774)
|
|
|
$
|
(1,021)
|
|
Legal
accrual
|
2,292
|
|
|
—
|
|
|
16,166
|
|
|
—
|
|
Restructuring
and impairment charges
|
1,692
|
|
|
14,418
|
|
|
2,401
|
|
|
14,418
|
|
Income tax
impact
|
(1,557)
|
|
|
(5,407)
|
|
|
(6,963)
|
|
|
(5,407)
|
|
Non-GAAP net
income
|
$
|
5,765
|
|
|
$
|
8,361
|
|
|
$
|
4,830
|
|
|
$
|
7,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share Reconciliation:
|
|
|
|
|
|
|
|
GAAP diluted earnings
(loss) per share
|
$
|
0.07
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.02)
|
|
Legal
accrual
|
0.05
|
|
|
—
|
|
|
0.34
|
|
|
—
|
|
Restructuring
and impairment charges
|
0.03
|
|
|
0.31
|
|
|
0.05
|
|
|
0.32
|
|
Income tax
impact
|
(0.03)
|
|
|
(0.12)
|
|
|
(0.14)
|
|
|
(0.12)
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.12
|
|
|
$
|
0.18
|
|
|
$
|
0.10
|
|
|
$
|
0.18
|
|
Contact: Kevin Royal, Chief
Financial Officer
866.475.0317 x11120
investorrelations@bridgepointeducation.com
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SOURCE Bridgepoint Education