SAN DIEGO, March 7, 2017
/PRNewswire/ -- Bridgepoint Education, Inc. (NYSE:BPI), a provider
of postsecondary education services, today announced the results
for its fourth quarter and full year ended December 31,
2016.
Financial Results for the Three Months Ended
December 31, 2016
Revenue for the three months ended December 31, 2016 was
$119.5 million, compared with revenue
of $131.4 million for the three
months ended December 31, 2015.
Operating loss for the three months ended December 31, 2016
was $18.5 million, compared with
operating loss of $6.1 million for
the three months ended December 31, 2015.
The Company recognized an income tax benefit of $4.3 million for the three months ended
December 31, 2016, compared with income tax expense of
$1.2 million for the three months
ended December 31, 2015.
Net loss for the three months ended December 31, 2016 was
$13.8 million, compared with net loss
of $6.7 million for the three months
ended December 31, 2015.
Diluted loss per share for the three months ended
December 31, 2016 was $0.30,
compared with diluted loss per share of $0.15 for the three months ended
December 31, 2015.
Non-GAAP Financial Results for the Three Months Ended
December 31, 2016
Non-GAAP operating loss for the three months ended
December 31, 2016 was $1.8
million, compared with non-GAAP operating income of
$2.9 million for the three months
ended December 31, 2015. Non-GAAP operating loss for the three
months ended December 31, 2016 excludes a legal settlement
expense of $0.2 million and
restructuring and impairment charges of $16.5 million. Non-GAAP operating income for the
three months ended December 31, 2015 excludes restructuring
and impairment charges of $9.0
million.
Non-GAAP net loss for the three months ended December 31,
2016 was $0.7 million, compared with
non-GAAP net income of $2.0 million
for the three months ended December 31, 2015. Non-GAAP net
loss for the three months ended December 31, 2016 excludes a
legal settlement expense of $0.2
million, as well as restructuring and impairment charges of
$16.5 million and the related tax
effect. Non-GAAP net income for the three months ended
December 31, 2015 excludes restructuring and impairment
charges of $9.0 million and the
related tax effect, as well as tax expense of $3.0 million relating to the valuation allowance
against deferred tax assets.
Non-GAAP diluted loss per share for the three months ended
December 31, 2016 was $0.01,
compared with non-GAAP diluted earnings per share of $0.04 for the three months ended
December 31, 2015.
Financial Results for the Year Ended December 31,
2016
Revenue for the year ended December 31, 2016 was
$527.1 million, compared with revenue
of $561.7 million for the year ended
December 31, 2015.
Operating loss for the year ended December 31, 2016 was
$40.2 million, compared with
operating loss of $42.3 million for
the year ended December 31, 2015.
The Company recognized an income tax benefit of $7.9 million for the year ended December 31,
2016, compared with income tax expense of $30.3 million for the year ended
December 31, 2015.
Net loss for the year ended December 31, 2016 was
$30.0 million, compared with net loss
of $70.5 million for the year ended
December 31, 2015.
Diluted loss per share for the year ended December 31, 2016
was $0.65, compared with diluted loss
per share of $1.54 for the year ended
December 31, 2015.
Non-GAAP Financial Results for the Year Ended
December 31, 2016
Non-GAAP operating income for the year ended December 31,
2016 was $12.1 million, compared with
non-GAAP operating income of $26.1
million for the year ended December
31, 2015. Non-GAAP operating income for the year ended
December 31, 2016 excludes a legal settlement expense of
$33.1 million and restructuring and
impairment charges of $19.3 million.
Non-GAAP operating income for the year ended December 31, 2015
excludes restructuring and impairment charges of $68.4 million.
Non-GAAP net income for the year ended December 31, 2016
was $8.4 million, compared with
non-GAAP net income of $15.9 million
for the year ended December 31, 2015.
Non-GAAP net income for the year ended December 31, 2016
excludes a legal settlement expense of $33.1
million, as well as restructuring and impairment charges of
$19.3 million and the related tax
effect. Non-GAAP net income for the year ended December 31,
2015 excludes restructuring and impairment charges of $68.4 million and the related tax effect, as well
as tax expense of $43.7 million
relating to the valuation allowance against deferred tax
assets.
Non-GAAP diluted earnings per share for the year ended
December 31, 2016 was $0.18,
compared with non-GAAP diluted earnings per share of $0.35 for the year ended December 31, 2015.
Balance Sheet and Cash Flow
As of December 31, 2016, the Company had cash, cash
equivalents, restricted cash and investments of $381.8 million, compared with cash, cash
equivalents, restricted cash and investments of $374.0 million as of December 31,
2015.
The Company generated $11.1
million of cash from operating activities during the year
ended December 31, 2016, compared with $18.8 million of cash from operating activities
during the year ended December 31, 2015.
Student Enrollment
Total student enrollment at the Company's academic institutions,
Ashford University and University of
the Rockies, was 45,087 at December 31, 2016, compared with
total student enrollment of 49,159 at December 31, 2015.
As of December 31, 2016, the 12-month retention for all
Ashford students who were active on the last day of the fourth
quarter of 2015 was 59.8%. As of December 31, 2015, the
12-month retention for all Ashford students who were active on the
last day of the fourth quarter of 2014 was 61.3%.
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 a legal settlement expense,
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 and webcast 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) 859-7412, and the
dial-in number for other callers is (832) 900-4623. The access code
for all callers is 74641308. 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
April 7, 2017. To access the replay,
callers in the United States and
Canada should dial (855) 859-2056
and other callers should dial (404) 537-3406. The access code for
all callers is 74641308.
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 2017 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, 2016 to be filed
with the SEC, 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.
Contact: Kevin Royal, Chief
Financial Officer
(866) 475-0317 x11120
investorrelations@bridgepointeducation.com
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Statements of Income (Loss)
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
119,535
|
|
|
$
|
131,392
|
|
|
$
|
527,090
|
|
|
$
|
561,729
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs
and services
|
63,769
|
|
|
65,840
|
|
|
263,898
|
|
|
281,496
|
|
Admissions advisory
and marketing
|
45,408
|
|
|
48,948
|
|
|
202,206
|
|
|
197,584
|
|
General and
administrative
|
12,134
|
|
|
13,674
|
|
|
48,843
|
|
|
56,588
|
|
Legal settlement
expense
|
170
|
|
|
—
|
|
|
33,088
|
|
|
—
|
|
Restructuring and
impairment charges
|
16,510
|
|
|
9,034
|
|
|
19,276
|
|
|
68,356
|
|
Total costs and
expenses
|
137,991
|
|
|
137,496
|
|
|
567,311
|
|
|
604,024
|
|
Operating
loss
|
(18,456)
|
|
|
(6,104)
|
|
|
(40,221)
|
|
|
(42,295)
|
|
Other income,
net
|
414
|
|
|
607
|
|
|
2,306
|
|
|
2,106
|
|
Loss before income
taxes
|
(18,042)
|
|
|
(5,497)
|
|
|
(37,915)
|
|
|
(40,189)
|
|
Income tax (benefit)
expense
|
(4,253)
|
|
|
1,190
|
|
|
(7,875)
|
|
|
30,265
|
|
Net loss
|
$
|
(13,789)
|
|
|
$
|
(6,687)
|
|
|
$
|
(30,040)
|
|
|
$
|
(70,454)
|
|
Loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.30)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.65)
|
|
|
$
|
(1.54)
|
|
Diluted
|
$
|
(0.30)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.65)
|
|
|
$
|
(1.54)
|
|
Weighted average
number of common shares outstanding used in computing loss per
share:
|
|
|
|
|
|
|
|
Basic
|
46,373
|
|
|
45,799
|
|
|
46,228
|
|
|
45,665
|
|
Diluted
|
46,373
|
|
|
45,799
|
|
|
46,228
|
|
|
45,665
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Balance Sheets
|
(In thousands,
except par value)
|
|
|
As of December
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
307,802
|
|
|
$
|
282,145
|
|
Restricted
cash
|
24,533
|
|
|
24,685
|
|
Investments
|
49,434
|
|
|
19,387
|
|
Accounts receivable,
net
|
26,457
|
|
|
24,091
|
|
Student loans
receivable, net
|
—
|
|
|
775
|
|
Prepaid expenses and
other current assets
|
23,467
|
|
|
52,192
|
|
Total current
assets
|
431,693
|
|
|
403,275
|
|
Property and
equipment, net
|
12,218
|
|
|
21,742
|
|
Investments
|
—
|
|
|
47,770
|
|
Student loans
receivable, net
|
—
|
|
|
7,394
|
|
Goodwill and
intangibles, net
|
17,419
|
|
|
21,265
|
|
Other long-term
assets
|
2,046
|
|
|
5,320
|
|
Total
assets
|
$
|
463,376
|
|
|
$
|
506,766
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
77,866
|
|
|
$
|
79,196
|
|
Deferred revenue and
student deposits
|
74,666
|
|
|
88,756
|
|
Total current
liabilities
|
152,532
|
|
|
167,952
|
|
Rent
liability
|
16,508
|
|
|
20,118
|
|
Other long-term
liabilities
|
13,630
|
|
|
15,046
|
|
Total
liabilities
|
182,670
|
|
|
203,116
|
|
Total stockholders'
equity
|
280,706
|
|
|
303,650
|
|
Total liabilities and
stockholders' equity
|
$
|
463,376
|
|
|
$
|
506,766
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(30,040)
|
|
|
$
|
(70,454)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Provision for bad
debts
|
32,583
|
|
|
29,863
|
|
Depreciation and
amortization
|
13,082
|
|
|
19,578
|
|
Amortization of
premium/discount
|
68
|
|
|
475
|
|
Deferred income
taxes
|
28
|
|
|
40,944
|
|
Stock-based
compensation
|
7,317
|
|
|
9,710
|
|
Excess tax benefit of
option exercises
|
—
|
|
|
(460)
|
|
Loss on impairment of
student loans receivable
|
7,542
|
|
|
1,328
|
|
Net loss (gain) on
marketable securities
|
(164)
|
|
|
91
|
|
Loss on termination
of leased space
|
13,244
|
|
|
17,047
|
|
Loss on disposal or
impairment of fixed assets
|
3,024
|
|
|
44,949
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(34,790)
|
|
|
(32,383)
|
|
Prepaid
expenses and other current assets
|
13,225
|
|
|
(14,446)
|
|
Student loans
receivable
|
876
|
|
|
1,139
|
|
Other
long-term assets
|
3,274
|
|
|
(2,845)
|
|
Accounts
payable and accrued liabilities
|
4,778
|
|
|
1,104
|
|
Deferred
revenue and student deposits
|
(14,078)
|
|
|
(19,170)
|
|
Other
liabilities
|
(8,886)
|
|
|
(7,669)
|
|
Net cash provided
by operating activities
|
11,083
|
|
|
18,801
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(1,925)
|
|
|
(2,477)
|
|
Purchases of
investments
|
(20,260)
|
|
|
(20,280)
|
|
Capitalized costs for
intangible assets
|
(830)
|
|
|
(2,153)
|
|
Sales of
investments
|
—
|
|
|
10,101
|
|
Maturities of
investments
|
37,756
|
|
|
66,096
|
|
Net cash provided
by investing activities
|
14,741
|
|
|
51,287
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
exercise of stock options
|
1,331
|
|
|
284
|
|
Excess tax benefit of
option exercises
|
—
|
|
|
460
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
246
|
|
|
261
|
|
Tax withholding on
issuance of stock awards
|
(1,896)
|
|
|
(1,341)
|
|
Proceeds from failed
sale-leaseback transaction
|
—
|
|
|
4,141
|
|
Net cash provided
by (used in) financing activities
|
(319)
|
|
|
3,805
|
|
Net increase in cash,
cash equivalents and restricted cash
|
25,505
|
|
|
73,893
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
306,830
|
|
|
232,937
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
332,335
|
|
|
$
|
306,830
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Income (Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(18,456)
|
|
|
$
|
(6,104)
|
|
|
$
|
(40,221)
|
|
|
$
|
(42,295)
|
|
Legal settlement
expense
|
170
|
|
|
—
|
|
|
33,088
|
|
|
—
|
|
Restructuring and
impairment charges
|
16,510
|
|
|
9,034
|
|
|
19,276
|
|
|
68,356
|
|
Non-GAAP operating
income (loss)
|
$
|
(1,776)
|
|
|
$
|
2,930
|
|
|
$
|
12,143
|
|
|
$
|
26,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(13,789)
|
|
|
$
|
(6,687)
|
|
|
$
|
(30,040)
|
|
|
$
|
(70,454)
|
|
Legal settlement
expense
|
170
|
|
|
—
|
|
|
33,088
|
|
|
—
|
|
Restructuring and
impairment charges
|
16,510
|
|
|
9,034
|
|
|
19,276
|
|
|
68,356
|
|
Income tax
impact
|
(3,566)
|
|
|
(3,388)
|
|
|
(13,973)
|
|
|
(25,634)
|
|
Incremental income
tax expense related to establishment of valuation
allowance
|
—
|
|
|
2,999
|
|
|
—
|
|
|
43,655
|
|
Non-GAAP net income
(loss)
|
$
|
(675)
|
|
|
$
|
1,958
|
|
|
$
|
8,351
|
|
|
$
|
15,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share Reconciliation:
|
|
|
|
|
|
|
|
GAAP diluted loss per
share
|
$
|
(0.30)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.65)
|
|
|
$
|
(1.54)
|
|
Legal settlement
expense
|
0.01
|
|
|
—
|
|
|
0.71
|
|
|
—
|
|
Restructuring and
impairment charges
|
0.35
|
|
|
0.20
|
|
|
0.42
|
|
|
1.49
|
|
Income tax
impact
|
(0.07)
|
|
|
(0.07)
|
|
|
(0.30)
|
|
|
(0.56)
|
|
Incremental income
tax expense related to establishment of valuation
allowance
|
—
|
|
|
0.06
|
|
|
—
|
|
|
0.96
|
|
Non-GAAP diluted
earnings (loss) per share
|
$
|
(0.01)
|
|
|
$
|
0.04
|
|
|
$
|
0.18
|
|
|
$
|
0.35
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/bridgepoint-education-reports-fourth-quarter-and-full-year-2016-results-300419463.html
SOURCE Bridgepoint Education