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