SAN DIEGO, May 3, 2016
/PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider
of postsecondary education services, today announced its results
for the three months ended March 31,
2016.
Financial Results for the Three Months Ended March 31, 2016
Revenue for the first quarter of 2016 was $133.0 million, compared with revenue of
$142.5 million for the first quarter
of 2015.
Operating loss for the first quarter of 2016 was $16.3 million, compared with operating loss of
$1.2 million for the first quarter of
2015.
Net loss for the first quarter of 2016 was $10.1 million, compared with net loss of
$0.4 million for the first quarter of
2015.
Diluted loss per share for the first quarter of 2016 was
$0.22, compared with diluted loss per
share of $0.01 for the first quarter
of 2015.
The Company recognized income tax benefit of $5.5 million for the first quarter of 2016,
compared with income tax benefit of $0.1
million for the first quarter of 2015.
Non-GAAP Financial Results for the Three Months Ended
March 31, 2016
Non-GAAP operating loss for the first quarter of 2016 was
$1.7 million, compared with non-GAAP
operating loss of $1.2 million for
the first quarter of 2015. Non-GAAP operating loss for the first
quarter of 2016 excludes a legal accrual of $13.9 million and restructuring and impairment
charges of $0.7 million. The legal
accrual represents the Company's current best estimate of the cost
of a joint resolution of previously disclosed investigative
subpoenas from the Attorney General of the State of California and civil investigative
demands from the Consumer Financial Protection Bureau.
Non-GAAP net loss for the first quarter of 2016 was $0.9 million, compared with non-GAAP net loss of
$0.4 million for the first quarter of
2015. Non-GAAP net loss for the first quarter of 2016 excludes the
$13.9 million legal accrual referred
to above, restructuring and impairment charges of $0.7 million and a tax benefit amount of
$5.4 million.
Non-GAAP diluted loss per share for the first quarter of 2016
was $0.02, compared with non-GAAP
diluted loss per share of $0.01 for
the first quarter of 2015.
Balance Sheet and Cash Flow
As of March 31, 2016, the Company had cash, restricted
cash, cash equivalents and marketable securities of $351.9 million, compared with cash, restricted
cash, cash equivalents and marketable securities of $374.0 million as of December 31, 2015.
The Company used $17.2 million of
cash for operating activities during the three months ended
March 31, 2016, compared with $7.4
million of cash provided by operating activities during the
three months ended March 31, 2015.
Student Enrollment
Total student enrollment at the Company's academic institutions,
Ashford University and University of
the Rockies, was 50,814 students at March 31, 2016,
compared with total student enrollment of 55,322 at
March 31, 2015.
As of March 31, 2016, the 12-month
retention for all Ashford students who were active on the last day
of the first quarter of 2015 was 62.2%. As of March 31, 2015, the 12-month retention for all
Ashford students who were active on the last day of the first
quarter of 2014 was 64.2%.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for
non-GAAP operating loss, non-GAAP net loss and non-GAAP diluted
loss per share, each of which excludes our legal accrual,
restructuring and impairment charges, and certain income tax
adjustments. These non-GAAP financial measures are not prepared in
accordance with U.S. generally accepted accounting principles
(GAAP) and are not based on a comprehensive set of accounting
rules. Management believes non-GAAP financial measures are useful
in providing investors with an understanding of how specific line
items in the consolidated statements of income are affected by
items that may not be indicative of the operating results of the
Company's core business. To the extent that other companies use
similar methods in calculating and reporting non-GAAP operating
results, the Company believes provision of supplemental non-GAAP
financial information allows for a meaningful comparison of the
Company's performance against the performance of other companies.
The Company further believes that these non-GAAP financial measures
provide useful information regarding its ongoing operating
activities and business trends related to its results of
operations, as well as a meaningful comparison with historical
financial results. The Company's management and board of directors
utilize these non-GAAP financial measures, together with the
Company's financial statements prepared in accordance with GAAP, in
developing operating budgets and evaluating the Company's
performance. These non-GAAP financial measures are intended to
supplement GAAP financial information, and should not be considered
as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. In addition, these
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies. Refer to the
accompanying tables for a detailed reconciliation of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures.
Earnings Conference Call and Webcast
Bridgepoint Education will host a conference call at
5:00 p.m. ET (2:00 p.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 the
dial-in number for other callers is 832-900-4623. The access code
for all callers is 97526740. A live broadcast of the call 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
June 2, 2016. To access the replay,
callers in the United States /
Canada should dial 855-859-2056
and other callers should dial 404-537-3406, and enter the access
code 97526740.
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. Together, these
programs, technologies, and resources represent a unique model for
advancing education in the 21st century. Bridgepoint stands for
greater access, social learning, and exposure to leading minds. For
more information, visit www.bridgepointeducation.com 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 2016 and beyond. These
forward-looking 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, 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 or legal 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 Company's filings with the Securities and Exchange Commission
(SEC), including, but not limited to, the Company's Annual Report
on Form 10-K for the year ended December 31, 2015 filed with
the SEC, and the Company's quarterly reports on Form 10-Q and
current reports on Form 8-K. 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, expectations or 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.
BRIDGEPOINT
EDUCATION, INC.
Condensed
Consolidated Statements of Income
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
Revenue
|
$
|
133,002
|
|
|
$
|
142,518
|
|
Costs and
expenses:
|
|
|
|
Instructional costs
and services
|
69,586
|
|
|
75,049
|
|
Admissions advisory
and marketing
|
51,677
|
|
|
52,347
|
|
General and
administrative
|
13,455
|
|
|
16,322
|
|
Legal
accrual
|
13,874
|
|
|
—
|
|
Restructuring and
impairment charges
|
709
|
|
|
—
|
|
Total costs and
expenses
|
149,301
|
|
|
143,718
|
|
Operating
loss
|
(16,299)
|
|
|
(1,200)
|
|
Other income,
net
|
683
|
|
|
689
|
|
Loss before income
taxes
|
(15,616)
|
|
|
(511)
|
|
Income tax
benefit
|
(5,504)
|
|
|
(140)
|
|
Net loss
|
$
|
(10,112)
|
|
|
$
|
(371)
|
|
Loss per
share:
|
|
|
|
Basic
|
$
|
(0.22)
|
|
|
$
|
(0.01)
|
|
Diluted
|
(0.22)
|
|
|
(0.01)
|
|
Weighted average
number of common shares outstanding used in computing loss per
share:
|
|
|
|
Basic
|
45,933
|
|
|
45,428
|
|
Diluted
|
45,933
|
|
|
45,428
|
|
BRIDGEPOINT
EDUCATION, INC.
Condensed
Consolidated Balance Sheets
(In
thousands)
(Unaudited)
|
|
|
March 31,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
243,120
|
|
|
$
|
282,145
|
|
Restricted
cash
|
21,439
|
|
|
24,685
|
|
Investments
|
37,243
|
|
|
19,387
|
|
Accounts receivable,
net
|
34,179
|
|
|
24,091
|
|
Student loans
receivable, net
|
726
|
|
|
775
|
|
Prepaid expenses and
other current assets
|
42,027
|
|
|
52,192
|
|
Total current
assets
|
378,734
|
|
|
403,275
|
|
Property and
equipment, net
|
19,568
|
|
|
21,742
|
|
Investments
|
50,056
|
|
|
47,770
|
|
Student loans
receivable, net
|
7,147
|
|
|
7,394
|
|
Goodwill and
intangibles, net
|
20,210
|
|
|
21,265
|
|
Other long-term
assets
|
5,162
|
|
|
5,320
|
|
Total
assets
|
$
|
480,877
|
|
|
$
|
506,766
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
70,810
|
|
|
$
|
79,196
|
|
Deferred revenue and
student deposits
|
82,379
|
|
|
88,756
|
|
Total current
liabilities
|
153,189
|
|
|
167,952
|
|
Rent
liability
|
17,842
|
|
|
20,118
|
|
Other long-term
liabilities
|
14,974
|
|
|
15,046
|
|
Total
liabilities
|
186,005
|
|
|
203,116
|
|
Total stockholders'
equity
|
294,872
|
|
|
303,650
|
|
Total liabilities and
stockholders' equity
|
$
|
480,877
|
|
|
$
|
506,766
|
|
BRIDGEPOINT
EDUCATION, INC.
Condensed
Consolidated Statements of Cash Flows
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(10,112)
|
|
|
$
|
(371)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Provision for bad debts
|
9,619
|
|
|
8,396
|
|
Depreciation and amortization
|
3,729
|
|
|
5,345
|
|
Amortization of premium/discount
|
(51)
|
|
|
19
|
|
Stock-based compensation
|
2,298
|
|
|
2,245
|
|
Excess tax benefit of option exercises
|
(336)
|
|
|
(231)
|
|
Loss on impairment of student loans receivable
|
141
|
|
|
359
|
|
Net (gain) loss on marketable securities
|
(19)
|
|
|
34
|
|
Loss on impairment of fixed assets
|
—
|
|
|
163
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted cash
|
3,298
|
|
|
5,716
|
|
Accounts receivable
|
(19,633)
|
|
|
(17,931)
|
|
Prepaid expenses and other current assets
|
(5,336)
|
|
|
360
|
|
Student loans receivable
|
320
|
|
|
260
|
|
Other long-term assets
|
157
|
|
|
(185)
|
|
Accounts payable and accrued liabilities
|
7,470
|
|
|
10,270
|
|
Deferred revenue and student deposits
|
(6,367)
|
|
|
(5,313)
|
|
Other liabilities
|
(2,348)
|
|
|
(1,748)
|
|
Net cash
(used in) provided by operating activities
|
(17,170)
|
|
|
7,388
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(291)
|
|
|
(1,626)
|
|
Purchases of
investments
|
(20,156)
|
|
|
(142)
|
|
Non-operating
restricted cash
|
(52)
|
|
|
12
|
|
Capitalized costs for
intangible assets
|
(227)
|
|
|
(592)
|
|
Sales of
investments
|
—
|
|
|
10,101
|
|
Maturities of
investments
|
—
|
|
|
20,000
|
|
Net cash
(used in) provided by investing activities
|
(20,726)
|
|
|
27,753
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of stock options
|
138
|
|
|
127
|
|
Excess tax benefit of
option exercises
|
336
|
|
|
231
|
|
Tax withholdings on
issuance of stock awards
|
(1,603)
|
|
|
(1,225)
|
|
Net cash
used in financing activities
|
(1,129)
|
|
|
(867)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(39,025)
|
|
|
34,274
|
|
Cash and cash
equivalents at beginning of period
|
282,145
|
|
|
207,003
|
|
Cash and cash
equivalents at end of period
|
$
|
243,120
|
|
|
$
|
241,277
|
|
BRIDGEPOINT
EDUCATION, INC.
Reconciliation of
GAAP to Non-GAAP Financial Measures
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
Operating Loss
Reconciliation:
|
|
|
|
GAAP operating
loss
|
$
|
(16,299)
|
|
|
$
|
(1,200)
|
|
Legal
accrual
|
13,874
|
|
|
—
|
|
Restructuring and
impairment charges
|
709
|
|
|
—
|
|
Non-GAAP operating
loss
|
$
|
(1,716)
|
|
|
$
|
(1,200)
|
|
|
|
|
|
|
|
|
|
Net Loss
Reconciliation:
|
|
|
|
GAAP net
loss
|
$
|
(10,112)
|
|
|
$
|
(371)
|
|
Legal
accrual
|
13,874
|
|
|
—
|
|
Restructuring and
impairment charges
|
709
|
|
|
—
|
|
Income tax expense
impact
|
(5,406)
|
|
|
—
|
|
Non-GAAP net
loss
|
$
|
(935)
|
|
|
$
|
(371)
|
|
|
|
|
|
|
|
|
|
Diluted Loss
Per Share Reconciliation:
|
|
|
|
GAAP diluted loss per
share
|
$
|
(0.22)
|
|
|
$
|
(0.01)
|
|
Legal
accrual
|
0.30
|
|
|
—
|
|
Restructuring and
impairment charges
|
0.02
|
|
|
—
|
|
Income tax expense
impact
|
(0.12)
|
|
|
—
|
|
Non-GAAP diluted loss
per share
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
Contact: Kevin Royal, Chief
Financial Officer
866.475.0317 x11120
investorrelations@bridgepointeducation.com
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SOURCE Bridgepoint Education