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05 / 2019 article

Bridgepoint Education Reports First Quarter 2013 Results

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SAN DIEGO, May 6, 2013 /PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced its results for the first quarter ended March 31, 2013.

Highlights for the first quarter ended March 31, 2013, are as follows:

  • Total student enrollment at period end was 78,782.
  • Revenue was $222.0 million compared to $250.4 million for the same period in 2012.
  • Operating income was $37.8 million compared to $52.4 million for the same period in 2012.
  • Net income was $23.5 million compared to $33.0 million for the same period in 2012.
  • Fully diluted earnings per share was $0.43 compared to $0.59 for the same period in 2012.

Student Enrollment

Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 78,782 students at March 31, 2013, compared with 94,863 students at the end of the first quarter of 2012.

New student enrollments for the first quarter of 2013 at Bridgepoint Education's academic institutions were approximately 13,300 compared with combined new student enrollments of approximately 24,275 for the same period in 2012.

Financial Results

Revenue for the first quarter of 2013 was $222.0 million, compared with revenue of $250.4 million for the same period in 2012.

Operating income for the first quarter of 2013 was $37.8 million compared with operating income of $52.4 million for the same period in 2012.

Net income for the first quarter of 2013 was $23.5 million compared with net income of $33.0 million for the same period in 2012.

Fully diluted earnings per share for the first quarter of 2013 was $0.43 compared with fully diluted earnings per share of $0.59 for the same period in 2012.

The Company's effective tax rate for the first quarter of 2013 was 39.2%.

As of March 31, 2013, the Company had cash and total investments of $524.9 million, compared with $514.7 million as of December 31, 2012. The Company generated $15.6 million of cash from operating activities in the first quarter of 2013, compared with $40.4 million for the same period in 2012.

Earnings Conference Call and Webcast

The Company 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 (888) 397-5354 and for international callers is (719) 457-2604. The access code for all callers is 6116387. A live webcast will also be available on the Company's website at http://bridgepointeducation.com/investor_relations.htm.

A replay of the call will be available via telephone through May 13, 2013. To access the replay, dial (888) 203-1112 in the United States / Canada and (719) 457-0820 outside the United States / Canada; then enter the access code 6116387.

About Bridgepoint Education

Bridgepoint Education, Inc. (NYSE:BPI) improves the way individuals learn. By harnessing creativity, knowledge and proprietary technologies, such as Constellation, Thuze, and Waypoint Outcomes, Bridgepoint Education has re-engineered the modern student experience with innovative solutions that advance learning. Its academic institutions - Ashford University and University of the Rockies - embody the contemporary college experience. 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 traditional campuses located in Clinton, Iowa (Ashford University), and Colorado Springs, Colorado (University of the Rockies). For more information about Bridgepoint Education, call Paul Goodson, Associate Vice President of Investor Relations at (858) 848-3312.

Forward-Looking Statements

This news release may contain forward-looking statements including, without limitation, statements regarding the Company's 2013 outlook and related commentary. These statements involve risks and uncertainties, and the Company's actual performance may differ materially from those expressed in or suggested by such statements. Risks and uncertainties include, without limitation:

  • failure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements, and accrediting agency requirements;
  • adverse regulatory or legislative changes affecting the Company's 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 and recruiting costs; and
  • reputational and other risks related to potential compliance audits, regulatory actions, negative publicity or service disruptions.

More information on potential factors that could affect the Company's performance 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 SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on March 12, 2013, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, to be filed with the SEC. Forward-looking statements are made on the basis of management's views and assumptions regarding future events and business performance as of the time the statements are made, and the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, except as required by law.

 

BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)




Three Months Ended
March 31,



2013



2012

Revenue

$

221,984



$

250,437


Costs and expenses:






Instructional costs and services(1)

107,281



82,500


Admissions advisory and marketing(1)

57,543



90,042


General and administrative(1)

19,375



25,542


Total costs and expenses

184,199



198,084


Operating income

37,785



52,353


Other income, net

818



683


Income before income taxes

38,603



53,036


Income tax expense

15,131



19,995


Net income

$

23,472



$

33,041


Earnings per common share:





Basic

$

0.43



$

0.64


Diluted

0.43



0.59


Weighted average number of common shares outstanding used in computing earnings per common share:






Basic

54,129



52,008


Diluted

55,001



56,203



(1) Effective in the fourth quarter of 2012, the Company made changes in the presentation of its operating expenses. The Company has reclassified prior periods to conform to the new presentation. The Company determined that these changes would better reflect industry practices and would provide more meaningful information as well as increased transparency to its operations. The Company believes that the reclassification better represents the operational changes and the business initiatives that have been implemented.

 

BRIDGEPOINT EDUCATION, INC.
Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)






As of
March 31, 2013


As of
December 31, 2012

ASSETS




Current assets:




Cash and cash equivalents

$

316,627



$

255,965


Investments

111,838



136,967


Accounts receivable, net

70,967



75,177


Deferred income taxes

8,262



8,228


Prepaid expenses and other current assets

21,445



19,810


Total current assets

529,139



496,147


Property and equipment, net

94,930



95,966


Investments

96,475



121,738


Student loans receivable, net

14,524



15,143


Goodwill and intangibles, net

11,471



10,739


Deferred income taxes

13,262



13,266


Other long-term assets

2,206



2,330


Total assets

$

762,007



$

755,329


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

6,901



$

4,588


Accrued liabilities

54,574



44,640


Deferred revenue and student deposits

140,969



175,057


Total current liabilities

202,444



224,285


Rent liability

25,798



25,173


Other long-term liabilities

10,603



9,759


Total liabilities

238,845



259,217


Total stockholders' equity

523,162



496,112


Total liabilities and stockholders' equity

$

762,007



$

755,329



 

 

BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)




Three Months Ended
  March 31,



2013


2012

Cash flows from operating activities




Net income

$

23,472



$

33,041


Adjustments to reconcile net income to net cash provided by operating activities:




Provision for bad debts

23,928



14,945


Depreciation and amortization

4,831



4,095


Amortization of premium/discount

1,005



1,754


Stock-based compensation

3,623



2,497


Excess tax benefit of option exercises



(3,588)


Changes in operating assets and liabilities:




Accounts receivable

(19,380)



(46,053)


Prepaid expenses and other current assets

(1,635)



(459)


Student loans receivable

281



(2,399)


Other long-term assets

124



1,944


Accounts payable and accrued liabilities

11,986



27,505


Deferred revenue and student deposits

(34,088)



3,723


Other liabilities

1,469



3,345


Net cash provided by operating activities

15,616



40,350


Cash flows from investing activities




Capital expenditures

(2,994)



(7,236)


Purchases of investments

(108)



(36,573)


Capitalized curriculum development costs

(1,369)



(1,638)


Sales and maturities of investments

49,416



28,923


Net cash provided by (used in) investing activities

44,945



(16,524)


Cash flows from financing activities




Proceeds from exercise of stock options

101



813


Excess tax benefit of option exercises



3,588


Net cash provided by financing activities

101



4,401


Net increase in cash and cash equivalents

60,662



28,227


Cash and cash equivalents at beginning of period

255,965



133,921


Cash and cash equivalents at end of period

$

316,627



$

162,148



Contact: Paul Goodson, Associate Vice President, Investor Relations
(866) 475-0317 x2271
[email protected]

SOURCE Bridgepoint Education