Press release from PR Newswire
Bridgepoint Education Reports Full Year 2012 Results
Tuesday, March 12, 2013
Bridgepoint Education Reports Full Year 2012 Results07:00 EDT Tuesday, March 12, 2013SAN DIEGO, March 12, 2013 /PRNewswire/ -- Bridgepoint Education, Inc. (NYSE:BPI), a provider of postsecondary education services, announced the results for its fourth quarter and full year ended December 31, 2012. Highlights for the fourth quarter ended December 31, 2012:Revenue decreased to $209.4 million from $221.3 million for the same period in 2011. Operating income decreased to $25.1 million from $35.3 million for the same period in 2011. Net income decreased to $16.0 million from $22.9 million for the same period in 2011. Fully diluted earnings per common share decreased to $0.29 from $0.41 for the same period in 2011. Highlights for the full year ended December 31, 2012:Total student enrollment decreased to 81,810 from 86,642 at December 31, 2011. Revenue increased to $968.2 million from $933.3 million for 2011. Operating income decreased to $202.7 million from $273.7 million for 2011. Net income was $128.0 million compared with net income of $172.8 million for 2011. Fully diluted earnings per common share was $2.29 compared with $3.02 for 2011. Student EnrollmentTotal student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 81,810 at December 31, 2012, compared with 86,642 students at the end of the fourth quarter of 2011. Combined new student enrollments for the fourth quarter of 2012 at both of the Company's academic institutions were approximately 9,260, compared with combined new student enrollments of approximately 13,500 for the fourth quarter of 2011. Financial ResultsEffective in the fourth quarter of 2012, the Company made changes in the presentation of its operating expenses. The Company determined that these changes would better reflect industry practice and would provide more meaningful information as well as increased transparency to its operations. The Company also believes that the reclassification better represents the operational changes and the business initiatives that have been implemented. The Company has reclassified prior periods to conform to the new presentation.Revenue for the fourth quarter of 2012 was $209.4 million, compared with revenue of $221.3 million for the fourth quarter of 2011. Revenue for the year ended December 31, 2012, was $968.2 million, compared with revenue of $933.3 million for the year ended December 31, 2011.Operating income for the fourth quarter of 2012, was $25.1 million, compared with $35.3 million for the same period in 2011. Operating income for the year ended December 31, 2012, was $202.7 million, compared with $273.7 million for the year ended December 31, 2011. Net income for the fourth quarter of 2012 was $16.0 million, compared with net income of $22.9 million for the fourth quarter of 2011. Net income for the year ended December 31, 2012, was $128.0 million, compared with net income of $172.8 million for the year ended December 31, 2011. Fully diluted earnings per common share for the fourth quarter of 2012 was $0.29 compared with fully diluted earnings per common share of $0.41 for the fourth quarter of 2011. Fully diluted earnings per common share for the year ended December 31, 2012, was $2.29, compared with fully diluted earnings per common share of $3.02 for the year ended December 31, 2011.The Company's effective tax rate for the year ended December 31, 2012, was 37.9%.The Company anticipates a 2.75% tuition increase for online students at Ashford University for courses beginning on or after April 1, 2013.Balance Sheet and Cash Flow As of December 31, 2012, the Company had cash, cash equivalents and investments of $514.7 million, compared with $407.2 million as of December 31, 2011. The Company generated $143.2 million of cash from operating activities for the year ended December 31, 2012, compared with $220.8 million for the year ended December 31, 2011. Earnings Conference Call and WebcastThe 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 developments. The dial-in number for callers in the United States and Canada is (800) 347-6311 and for international callers is (719) 457-2086. The access code for all callers is 7577415. 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 March 19, 2013. To access the replay, dial (888) 203-1112 in the United States or Canada and (719) 457-0820 for international callers; then enter the access code 7577415.About Bridgepoint EducationBridgepoint 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 (866) 475-0317 x2271.Forward-Looking StatementsThis 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 administrative, 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 fiscal year ended December 31, 2012, 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.Contact: Paul Goodson, Associate Vice President, Investor Relations(866) 475-0317 firstname.lastname@example.org BRIDGEPOINT EDUCATION, INC.Consolidated Statements of Income(In thousands, except per share amounts) Year Ended December 31,20122011Revenue$968,171$933,349Costs and expenses:Instructional costs and services355,273303,860Admissions advisory and marketing339,209297,619General and administrative70,97558,123Total costs and expenses765,457659,602Operating income202,714273,747Other income, net3,3702,768Income before income taxes206,084276,515Income tax expense78,121103,751Net income$127,963$172,764Earnings per common share:Basic$2.42$3.30Diluted2.293.02Weighted average number of common shares outstanding used in computing earnings per common share:Basic52,94752,291Diluted55,94657,133 BRIDGEPOINT EDUCATION, INC.Consolidated Balance Sheets(In thousands, except par value) As of December 31,20122011ASSETSCurrent assets:Cash and cash equivalents$255,965$133,921Restricted cash?25Investments136,967153,779Accounts receivable, net75,17762,156Deferred income taxes8,2285,429Prepaid expenses and other current assets19,81017,199Total current assets496,147372,509Property and equipment, net95,96689,667Investments121,738119,507Student loans receivable, net15,1439,255Goodwill and intangibles, net10,7397,037Deferred income taxes13,26611,200Other long-term assets2,3304,461Total assets$755,329$613,636LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$4,588$8,961Accrued liabilities44,64040,205Deferred revenue and student deposits175,057185,446Total current liabilities224,285234,612Rent liability25,17316,595Other long-term liabilities9,7598,781Total liabilities259,217259,988Total stockholders' equity496,112353,648Total liabilities and stockholders' equity$755,329$613,636 BRIDGEPOINT EDUCATION, INC.Consolidated Statements of Cash Flows(In thousands) Year Ended December 31,20122011Cash flows from operating activitiesNet income$127,963$172,764Adjustments to reconcile net income to net cash provided by operating activities:Provision for bad debts66,44658,511Depreciation and amortization17,42412,743Amortization of premium/discount6,8053,969Deferred income taxes(7,264)6,606Stock-based compensation13,72910,595Excess tax benefit of option exercises(10,058)(19,096)Loss on disposal of fixed assets1,15313Changes in operating assets and liabilities:Accounts receivable(81,577)(60,817)Prepaid expenses and other current assets(1,056)(2,104)Student loans receivable(3,778)(7,947)Other long-term assets2,131253Accounts payable and accrued liabilities12,10027,509Deferred revenue and student deposits(10,389)11,870Other liabilities8,7725,882Uncertain tax position78457Net cash provided by operating activities143,185220,808Cash flows from investing activitiesCapital expenditures(25,296)(34,492)Purchases of investments(179,387)(337,084)Restricted cash25?Capitalized curriculum development costs(5,262)(3,521)Sales and maturities of investments186,911167,049Net cash used in investing activities(23,009)(208,048)Cash flows from financing activitiesProceeds from exercise of stock options2,2574,889Tax withholdings related to net issuance of stock options(10,418)?Excess tax benefit of option exercises10,05819,096Proceeds from the issuance of stock under employee stock purchase plan1,3401,330Proceeds from the exercise of warrants490106Tax withholdings related to net issuance of warrants(944)?Issuance of restricted stock(313)?Repurchase of common stock(602)(92,778)Net cash provided by (used in) financing activities1,868(67,357)Net increase (decrease) in cash and cash equivalents122,044(54,597)Cash and cash equivalents at beginning of period133,921188,518Cash and cash equivalents at end of period$255,965$133,921 SOURCE Bridgepoint Education, Inc.