Press release from PR Newswire
Bridgepoint Education Reports Third Quarter 2012 Results
Monday, November 05, 2012
Bridgepoint Education Reports Third Quarter 2012 Results07:00 EST Monday, November 05, 2012SAN DIEGO, Nov. 5, 2012 /PRNewswire/ -- Bridgepoint Education, Inc. (NYSE: BPI), a provider of postsecondary education services, today announced its results for the three and nine months ended September 30, 2012. The company also reported that Dr. Gregory Geoffroy joined the Ashford University Board of Trustees on October 25, 2012 and on November 2, 2012 he was elected to serve as its new chairman beginning in March of 2013. Dr. Geoffroy brings a distinguished career in higher education to the Ashford Board of Trustees. He is president emeritus of Iowa State University in Ames, Iowa, where he currently serves as a professor of chemistry and where he spent the previous ten years as the institution's president. During Dr. Geoffroy's tenure as president, Iowa State expanded student diversity, saw major improvements to its campus infrastructure, and established the Bioeconomy Institute. "Our academic institutions are committed to being leaders in affordability, access, academic quality and student success. The election of Dr. Geoffroy to lead Ashford University's Board of Trustees, and the recent appointment of Dr. Richard Pattenaude as president of Ashford, demonstrate our steadfast commitment to these critical national goals, and will enhance the leadership of Ashford University," said Andrew Clark, CEO of Bridgepoint Education.Third Quarter ResultsHighlights for the third quarter ended September 30, 2012, are as follows:Total student enrollment at period end was 91,358. Revenue increased to $252.1 million from $242.8 million for the same period in 2011. Operating income decreased to $49.7 million from $69.8 million for the same period in 2011. Net income was $31.4 million compared with net income of $43.8 million for the same period in 2011. Fully diluted earnings per common share was $0.56 compared with $0.78 for the same period in 2011. Student EnrollmentTotal student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 91,358 students at September 30, 2012, compared with 90,597 students for the same period in 2011. New student enrollments for the third quarter of 2012 at Bridgepoint Education's academic institutions were approximately 20,500 compared with combined new student enrollments of approximately 22,000 for the same period in 2011.Financial ResultsRevenue for the third quarter of 2012 was $252.1 million compared with revenue of $242.8 million for the same period in 2011. Revenue for the nine months ended September 30, 2012, was $758.8 million compared with revenue of $712.1 million for the same period in 2011. Operating income for the third quarter of 2012 was $49.7 million compared with operating income of $69.8 million for the same period in 2011. Operating income for the nine months ended September 30, 2012, was $177.6 million compared with operating income of $238.4 million for the same period in 2011. Net income for the third quarter of 2012 was $31.4 million compared with net income of $43.8 million for the same period in 2011. Net income for the nine months ended September 30, 2012, was $111.9 million compared with net income of $149.9 million for the same period in 2011. Fully diluted earnings per common share for the third quarter of 2012 was $0.56 compared with fully diluted earnings per common share of $0.78 for the same period in 2011. Fully diluted earnings per common share for the nine months ended September 30, 2012, was $2.00 compared with fully diluted earnings per common share of $2.60 for the same period in 2011. The Company's effective tax rate for the third quarter of 2012 was 38.0%. Balance Sheet and Cash Flow As of September 30, 2012, the Company had cash, cash equivalents and marketable securities of $471.4 million, compared with $407.2 million as of December 31, 2011. The Company generated $93.6 million of cash from operating activities for the nine months ended September 30, 2012, compared with $148.7 million for the same period in 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 (866) 454-4209 and for international callers is (913) 981-5551. The access code for all callers is 4122862. 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 November 12, 2012. 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 4122862.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 accredited 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, email@example.com.Forward-Looking StatementsThis news release contains forward-looking statements including, without limitation, statements regarding measures to strengthen the academic leadership of Ashford University and related transition. These statements involve risks and uncertainties, and actual results may differ materially from those expressed in, or suggested by, such statements. More information on potential factors that could affect our future 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 our periodic reports filed with the SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on March 7, 2012, and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012, filed with the SEC on May 1, 2012 and August 7, 2012, respectively, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 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 Bridgepoint Education 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.Condensed Consolidated Statements of Income(In thousands, except per share amounts)(Unaudited) Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2012201120122011Revenue$252,076$242,771$758,815$712,084Costs and expenses:Instructional costs and services75,69969,611209,569187,432Marketing and promotional90,29168,848248,962190,002General and administrative36,36434,539122,67396,215Total costs and expenses202,354172,998581,204473,649Operating income49,72269,773177,611238,435Other income, net9556082,4921,937Income before income taxes50,67770,381180,103240,372Income tax expense19,23226,57068,15990,493Net income$31,445$43,811$111,944$149,879Earnings per share:Basic$0.59$0.85$2.13$2.85Diluted0.560.782.002.60Weighted average number of common shares outstanding used in computing earnings per share:Basic53,18451,82252,57652,565Diluted55,75656,37556,08957,624 BRIDGEPOINT EDUCATION, INC.Condensed Consolidated Balance Sheets(In thousands)(Unaudited) As ofSeptember 30, 2012As ofDecember 31, 2011ASSETSCurrent assets:Cash and cash equivalents$181,577$133,921Restricted cash?25Investments142,984153,779Accounts receivable, net111,01062,156Deferred income taxes5,3135,429Prepaid expenses and other current assets22,72217,199Total current assets463,606372,509Property and equipment, net98,28189,667Investments146,887119,507Student loans receivable, net14,9929,255Goodwill and intangibles, net10,1827,037Deferred income taxes10,75211,200Other long-term assets2,4904,461Total assets$747,190$613,636LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$7,357$8,961Accrued liabilities56,50940,205Deferred revenue and student deposits172,255185,446Total current liabilities236,121234,612Rent liability24,34716,595Other long-term liabilities9,2938,781Total liabilities269,761259,988Total stockholders' equity477,429353,648Total liabilities and stockholders' equity$747,190$613,636 BRIDGEPOINT EDUCATION, INC.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Nine Months EndedSeptember 30,20122011Cash flows from operating activitiesNet income$111,944$149,879Adjustments to reconcile net income to net cash provided by operating activities:Provision for bad debts41,32740,896Depreciation and amortization12,7618,694Amortization of premium/discount5,3842,443Deferred income taxes?1,720Stock-based compensation9,9157,803Excess tax benefit of option exercises(8,446)(15,750)Loss on disposal of fixed assets?11Changes in operating assets and liabilities:Accounts receivable(90,188)(69,538)Prepaid expenses and other current assets(3,982)(985)Student loans receivable(5,730)(2,320)Other long-term assets1,971(53)Accounts payable and accrued liabilities23,55930,055Deferred revenue and student deposits(13,191)(8,707)Other liabilities8,2644,541Net cash provided by operating activities93,588148,689Cash flows from investing activitiesCapital expenditures(20,803)(24,438)Purchases of investments(173,512)(233,991)Restricted cash25?Capitalized curriculum development costs(4,130)(2,237)Sales and maturities of investments151,511157,049Net cash used in investing activities(46,909)(103,617)Cash flows from financing activitiesProceeds from exercise of stock options2,2404,384Tax withholdings related to net issuance of stock options(10,418)?Excess tax benefit of option exercises8,44615,750Proceeds from the issuance of stock under employee stock purchase plan707642Proceeds from the exercise of warrants279Repurchase of common stock?(92,778)Net cash provided by (used in) financing activities977(71,923)Net increase (decrease) in cash and cash equivalents47,656(26,851)Cash and cash equivalents at beginning of period133,921188,518Cash and cash equivalents at end of period$181,577$161,667 SOURCE Bridgepoint Education, Inc.