Bridgepoint Education Reports Second Quarter 2015 Results

Aug 04, 2015, 07:00 ET from Bridgepoint Education

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



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