SAN DIEGO, Nov. 8, 2016 /PRNewswire/ -- Bridgepoint
Education (NYSE:BPI), a provider of postsecondary education
services, today announced its results for the three and nine months
ended September 30, 2016.
Financial Results for the Three Months Ended
September 30, 2016
Revenue for the three months ended September 30, 2016 was
$136.6 million, compared with revenue
of $140.8 million for the three
months ended September 30, 2015.
Operating loss for the three months ended September 30,
2016 was $8.8 million, compared with
operating loss of $34.5 million for
the three months ended September 30, 2015.
Net loss for the three months ended September 30, 2016 was
$9.5 million, compared with net loss
of $62.7 million for the three months
ended September 30, 2015.
Diluted loss per share for the three months ended
September 30, 2016 was $0.20,
compared with diluted loss per share of $1.37 for the three months ended
September 30, 2015.
The Company recognized income tax expense of $1.2 million for the three months ended
September 30, 2016, compared with income tax expense of
$28.7 million for the three months
ended September 30, 2015.
Non-GAAP Financial Results for the Three Months Ended
September 30, 2016
Non-GAAP operating income for the three months ended
September 30, 2016 was $8.3
million, compared with non-GAAP operating income of
$10.4 million for the three months
ended September 30, 2015. Non-GAAP operating income for the
three months ended September 30, 2016 excludes a legal
settlement expense of $16.8 million
and restructuring and impairment charges of $0.4 million.
Non-GAAP net income for the three months ended
September 30, 2016 was $4.2
million, compared with non-GAAP net income of $6.0 million for the three months ended
September 30, 2015. Non-GAAP net income for the three months
ended September 30, 2016 excludes a legal settlement expense
of $16.8 million, restructuring and
impairment charges of $0.4 million
and a tax benefit of $3.4
million.
Non-GAAP diluted earnings per share for the three months ended
September 30, 2016 was $0.09,
compared with non-GAAP diluted earnings per share of $0.13 for the three months ended
September 30, 2015.
Financial Results for the Nine Months Ended
September 30, 2016
Revenue for the nine months ended September 30, 2016 was
$407.6 million, compared with revenue
of $430.3 million for the nine months
ended September 30, 2015.
Operating loss for the nine months ended September 30, 2016
was $21.8 million, compared with
operating loss of $36.2 million for
the nine months ended September 30, 2015.
Net loss for the nine months ended September 30, 2016 was
$16.3 million, compared with net loss
of $63.8 million for the nine months
ended September 30, 2015.
Diluted loss per share for the nine months ended
September 30, 2016 was $0.35,
compared with diluted loss per share of $1.40 for the nine months ended
September 30, 2015.
The Company recognized income tax benefit of $3.6 million for the nine months ended
September 30, 2016, compared with income tax expense of
$29.1 million for the nine months
ended September 30, 2015.
Non-GAAP Financial Results for the Nine Months Ended
September 30, 2016
Non-GAAP operating income for the nine months ended
September 30, 2016 was $13.9
million, compared with non-GAAP operating income of
$23.1 million for the nine months
ended September 30, 2015. Non-GAAP operating income for the
nine months ended September 30, 2016 excludes a legal
settlement expense of $32.9 million
and restructuring and impairment charges of $2.8 million.
Non-GAAP net income for the nine months ended September 30,
2016 was $9.0 million, compared with
non-GAAP net income of $14.0 million
for the nine months ended September 30, 2015. Non-GAAP net
income for the nine months ended September 30, 2016 excludes a
legal settlement expense of $32.9
million, restructuring and impairment charges of
$2.8 million and a tax benefit of
$10.4 million.
Non-GAAP diluted earnings per share for the nine months ended
September 30, 2016 was $0.19,
compared with non-GAAP diluted earnings per share of $0.30 for the nine months ended
September 30, 2015.
Balance Sheet and Cash Flow
As of September 30, 2016, the Company had cash and cash
equivalents, restricted cash and investments of $357.4 million, compared with cash and cash
equivalents, restricted cash and investments of $374.0 million as of December 31, 2015.
The Company used $8.9 million of
cash for operating activities during the nine months ended
September 30, 2016, compared with $16.6
million of cash provided by operating activities during the
nine months ended September 30, 2015.
Student Enrollment
Total student enrollment at the Company's academic institutions,
Ashford University and University of
the Rockies, was 47,831 students at September 30, 2016,
compared with total student enrollment of 49,982 at
September 30, 2015.
As of September 30, 2016, the 12-month retention for all
Ashford students who were active on the last day of the third
quarter of 2015 was 61.6%. As of September 30, 2015, the
12-month retention for all Ashford students who were active on the
last day of the third quarter of 2014 was 60.1%.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for
non-GAAP operating income, non-GAAP net income and non-GAAP diluted
earnings per share, which exclude a legal settlement expense,
restructuring and impairment charges, and certain income tax
adjustments, as applicable. 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. Eastern Time (2:00 p.m. Pacific Standard Time) today to discuss
its latest financial results and recent highlights. The dial-in
number for callers in the United
States and Canada is
866-859-7412, and the dial-in number for other callers is
832-900-4623. The access code for all callers is 6563590. 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
December 8, 2016. To access the
replay, callers in the United
States and Canada should
dial 855-859-2056 and other callers should dial 404-537-3406, and
enter the access code 6563590.
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 the remainder of 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 on March 8, 2016, the
Company's quarterly reports on Form 10-Q and the Company's 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 (Loss)
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
136,583
|
|
|
$
|
140,762
|
|
|
$
|
407,555
|
|
|
$
|
430,337
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional
costs and services
|
64,095
|
|
|
69,197
|
|
|
200,129
|
|
|
215,656
|
|
Admissions
advisory and marketing
|
52,590
|
|
|
47,794
|
|
|
156,798
|
|
|
148,636
|
|
General and
administrative
|
11,604
|
|
|
13,346
|
|
|
36,709
|
|
|
42,914
|
|
Legal
settlement expense
|
16,752
|
|
|
—
|
|
|
32,918
|
|
|
—
|
|
Restructuring and impairment
charges
|
365
|
|
|
44,904
|
|
|
2,766
|
|
|
59,322
|
|
Total costs and
expenses
|
145,406
|
|
|
175,241
|
|
|
429,320
|
|
|
466,528
|
|
Operating
loss
|
(8,823)
|
|
|
(34,479)
|
|
|
(21,765)
|
|
|
(36,191)
|
|
Other income,
net
|
557
|
|
|
465
|
|
|
1,892
|
|
|
1,499
|
|
Loss before income
taxes
|
(8,266)
|
|
|
(34,014)
|
|
|
(19,873)
|
|
|
(34,692)
|
|
Income tax expense
(benefit)
|
1,211
|
|
|
28,732
|
|
|
(3,622)
|
|
|
29,075
|
|
Net loss
|
$
|
(9,477)
|
|
|
$
|
(62,746)
|
|
|
$
|
(16,251)
|
|
|
$
|
(63,767)
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.20)
|
|
|
$
|
(1.37)
|
|
|
$
|
(0.35)
|
|
|
$
|
(1.40)
|
|
Diluted
|
(0.20)
|
|
|
(1.37)
|
|
|
(0.35)
|
|
|
(1.40)
|
|
Weighted average
number of common shares outstanding used in computing loss per
share:
|
|
|
|
|
|
|
|
Basic
|
46,315
|
|
|
45,754
|
|
|
46,180
|
|
|
45,620
|
|
Diluted
|
46,315
|
|
|
45,754
|
|
|
46,180
|
|
|
45,620
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
September 30,
2016
|
|
December
31,
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
258,354
|
|
|
$
|
282,145
|
|
Restricted
cash
|
26,223
|
|
|
24,685
|
|
Investments
|
27,802
|
|
|
19,387
|
|
Accounts
receivable, net
|
30,614
|
|
|
24,091
|
|
Student loans
receivable, net
|
—
|
|
|
775
|
|
Prepaid
expenses and other current assets
|
39,181
|
|
|
52,192
|
|
Total current
assets
|
382,174
|
|
|
403,275
|
|
Property and
equipment, net
|
16,021
|
|
|
21,742
|
|
Investments
|
44,984
|
|
|
47,770
|
|
Student loans
receivable, net
|
—
|
|
|
7,394
|
|
Goodwill and
intangibles, net
|
18,301
|
|
|
21,265
|
|
Other long-term
assets
|
2,713
|
|
|
5,320
|
|
Total
assets
|
$
|
464,193
|
|
|
$
|
506,766
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued liabilities
|
$
|
69,185
|
|
|
$
|
79,196
|
|
Deferred
revenue and student deposits
|
75,696
|
|
|
88,756
|
|
Total current
liabilities
|
144,881
|
|
|
167,952
|
|
Rent
liability
|
14,098
|
|
|
20,118
|
|
Other long-term
liabilities
|
13,575
|
|
|
15,046
|
|
Total
liabilities
|
172,554
|
|
|
203,116
|
|
Total stockholders'
equity
|
291,639
|
|
|
303,650
|
|
Total liabilities and
stockholders' equity
|
$
|
464,193
|
|
|
$
|
506,766
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
Nine Months
Ended
September 30,
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(16,251)
|
|
|
$
|
(63,767)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
Provision for bad debts
|
23,565
|
|
|
24,269
|
|
Depreciation and amortization
|
10,068
|
|
|
15,403
|
|
Amortization of premium/discount
|
38
|
|
|
364
|
|
Deferred income taxes
|
—
|
|
|
24,081
|
|
Stock-based compensation
|
5,679
|
|
|
7,324
|
|
Excess tax benefit of option exercises
|
—
|
|
|
(426)
|
|
Write-off or impairment of student loans receivable
|
7,542
|
|
|
1,207
|
|
Net (gain) loss on marketable securities
|
(103)
|
|
|
125
|
|
Loss on termination of leased space
|
—
|
|
|
13,540
|
|
Loss on disposal or impairment of fixed assets
|
809
|
|
|
38,855
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Restricted cash
|
4,066
|
|
|
7,712
|
|
Accounts receivable
|
(29,929)
|
|
|
(33,524)
|
|
Prepaid expenses and other current assets
|
(2,802)
|
|
|
5,537
|
|
Student loans receivable
|
876
|
|
|
831
|
|
Other long-term assets
|
2,607
|
|
|
266
|
|
Accounts payable and accrued liabilities
|
5,508
|
|
|
(2,883)
|
|
Deferred revenue and student deposits
|
(13,049)
|
|
|
(18,313)
|
|
Other liabilities
|
(7,490)
|
|
|
(3,960)
|
|
Net cash
(used in) provided by operating activities
|
(8,866)
|
|
|
16,641
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(1,562)
|
|
|
(2,324)
|
|
Purchases of
investments
|
(20,237)
|
|
|
(20,242)
|
|
Non-operating
restricted cash
|
(5,604)
|
|
|
(6,369)
|
|
Capitalized costs for
intangible assets
|
(649)
|
|
|
(1,761)
|
|
Sales of
investments
|
—
|
|
|
10,101
|
|
Maturities of
investments
|
14,714
|
|
|
40,094
|
|
Net cash (used in) provided
by investing activities
|
(13,338)
|
|
|
19,499
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of stock options
|
142
|
|
|
260
|
|
Excess tax benefit of
option exercises
|
—
|
|
|
426
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
112
|
|
|
136
|
|
Tax withholdings on
issuance of stock awards
|
(1,841)
|
|
|
(1,292)
|
|
Net cash used in financing activities
|
(1,587)
|
|
|
(470)
|
|
Net (decrease)
increase in cash and cash equivalents
|
(23,791)
|
|
|
35,670
|
|
Cash and cash
equivalents at beginning of period
|
282,145
|
|
|
207,003
|
|
Cash and cash
equivalents at end of period
|
$
|
258,354
|
|
|
$
|
242,673
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Income (Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP operating
loss
|
$
|
(8,823)
|
|
|
$
|
(34,479)
|
|
|
$
|
(21,765)
|
|
|
$
|
(36,191)
|
|
Legal
settlement expense
|
16,752
|
|
|
—
|
|
|
32,918
|
|
|
—
|
|
Restructuring
and impairment charges
|
365
|
|
|
44,904
|
|
|
2,766
|
|
|
59,322
|
|
Non-GAAP operating
income
|
$
|
8,294
|
|
|
$
|
10,425
|
|
|
$
|
13,919
|
|
|
$
|
23,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP net
loss
|
$
|
(9,477)
|
|
|
$
|
(62,746)
|
|
|
$
|
(16,251)
|
|
|
$
|
(63,767)
|
|
Legal
settlement expense
|
16,752
|
|
|
—
|
|
|
32,918
|
|
|
—
|
|
Restructuring
and impairment charges
|
365
|
|
|
44,904
|
|
|
2,766
|
|
|
59,322
|
|
Income tax
impact
|
(3,445)
|
|
|
(16,839)
|
|
|
(10,407)
|
|
|
(22,246)
|
|
Incremental
income tax expense related to establishment of valuation
allowance
|
—
|
|
|
40,666
|
|
|
—
|
|
|
40,666
|
|
Non-GAAP net
income
|
$
|
4,195
|
|
|
$
|
5,985
|
|
|
$
|
9,026
|
|
|
$
|
13,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share Reconciliation:
|
|
|
|
|
|
|
|
GAAP diluted loss per
share
|
$
|
(0.20)
|
|
|
$
|
(1.37)
|
|
|
$
|
(0.35)
|
|
|
$
|
(1.40)
|
|
Legal
settlement expense
|
0.36
|
|
|
—
|
|
|
0.70
|
|
|
—
|
|
Restructuring
and impairment charges
|
0.01
|
|
|
0.98
|
|
|
0.06
|
|
|
1.30
|
|
Income tax
impact
|
(0.08)
|
|
|
(0.37)
|
|
|
(0.22)
|
|
|
(0.49)
|
|
Incremental
income tax expense related to establishment of valuation
allowance
|
—
|
|
|
0.89
|
|
|
—
|
|
|
0.89
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.09
|
|
|
$
|
0.13
|
|
|
$
|
0.19
|
|
|
$
|
0.30
|
|
Contact: Kevin Royal, Chief
Financial Officer
866.475.0317 x11120
investorrelations@bridgepointeducation.com
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SOURCE Bridgepoint Education