SAN DIEGO, May 1, 2018
/PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider
of postsecondary education services, today announced its results
for the three months ended March 31, 2018.
Financial Results for the Three Months Ended March 31,
2018
Revenue for the three months ended March 31, 2018 was
$118.0 million, compared with revenue
of $129.5 million for the three
months ended March 31, 2017.
Operating income for the three months ended March 31, 2018
was $0.4 million, compared with
operating income of $9.7 million for
the three months ended March 31, 2017.
Net income for the three months ended March 31, 2018 was
$2.3 million, compared with net
income of $9.9 million for the three
months ended March 31, 2017.
Diluted income per share for the three months ended
March 31, 2018 was $0.08,
compared with diluted income per share of $0.23 for the three months ended March 31,
2017.
The Company recognized an income tax benefit of $1.7 million for the three months ended
March 31, 2018, compared with an income tax expense of
$0.2 million for the three months
ended March 31, 2017.
Non-GAAP Financial Results for the Three Months Ended
March 31, 2018
Non-GAAP operating income for the three months ended
March 31, 2018 was $0.2 million,
compared with non-GAAP operating income of $9.7 million for the three months ended
March 31, 2017. Non-GAAP operating income for the three months
ended March 31, 2018 excludes a credit to restructuring and
impairment of $0.2 million. There
were no restructuring and impairment charges for the three months
ended March 31, 2017.
Non-GAAP net income for the three months ended March 31,
2018 was $0.4 million, compared with
non-GAAP net income of $9.9 million
for the three months ended March 31, 2017. Non-GAAP net income
for the three months ended March 31, 2018 excludes a credit to
restructuring and impairment of $0.2
million and an income tax benefit of $1.7 million. There were no restructuring and
impairment charges for the three months ended March 31,
2017.
Non-GAAP diluted income per share for the three months ended
March 31, 2018 was $0.01,
compared with non-GAAP diluted income per share of $0.23 for the three months ended March 31,
2017.
Balance Sheet and Cash Flow
As of March 31, 2018, the Company had combined cash, cash
equivalents and investments of $173.3
million, compared with combined cash, cash equivalents and
investments of $187.2 million as of
December 31, 2017.
The Company used $15.1 million of
cash in operating activities during the three months ended
March 31, 2018, compared with $11.5
million of cash used in operating activities during the
three months ended March 31, 2017.
Student Enrollment
Total student enrollment at the Company's combined academic
institutions was 41,523 students at March 31, 2018, compared
with total student enrollment of 46,383 at March 31, 2017.
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
income per share, which exclude restructuring and impairment
credits, as well as 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 6085794. 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 1, 2018. 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 6085794.
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 which
are not statements of historical fact and are subject to the Safe
Harbor provisions created by the Private Securities Litigation
Reform Act of 1995, including, without limitation, statements
regarding management's intentions, hopes, beliefs or expectations,
and statements regarding the Company's outlook for the remainder of
2018 and beyond. These forward-looking statements are based on
current information and expectations and are subject to various
risks and uncertainties. The Company's actual performance or
results may differ materially from those expressed in or suggested
by such statements due to various factors, including without
limitation: our ability to consummate the proposed merger of
University of the Rockies into Ashford
University and the conversion of Ashford University into a nonprofit university; the
impact of the proposed merger, conversion, and separation of the
Company from its academic institutions to focus on online program
management; the success of our marketing, technology and new
program development initiatives, the success of our Education
Partnership programs, the impact of our ongoing cost-reduction
initiatives; our ability to comply with the extensive and
continually evolving 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; the impact of competition in the
postsecondary education market; recruiting costs and tuition rates;
reputational and other risks related to potential compliance
audits; regulatory or legal actions; negative publicity or service
disruptions; and our ability to attract, recruit and retain
students or develop new or expanded programs in a timely and
cost-effective manner.
Additional information on factors that could cause actual plans
implemented and actual results achieved to differ materially from
those set forth in the forward-looking statements 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 fiscal year ended
December 31, 2017 filed with the SEC on February 21, 2018, the Company's quarterly
reports on Form 10-Q and the Company's current reports on Form 8-K
which are available at www.bridgepointeducation.com. 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, except to the extent required by
applicable securities laws.
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Income
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
Revenue
|
$
|
118,031
|
|
|
$
|
129,490
|
|
Costs and
expenses:
|
|
|
|
Instructional costs
and services
|
56,862
|
|
|
63,039
|
|
Admissions advisory
and marketing
|
48,194
|
|
|
44,762
|
|
General and
administrative
|
12,748
|
|
|
12,027
|
|
Restructuring and
impairment expense (credit)
|
(159)
|
|
|
—
|
|
Total costs and
expenses
|
117,645
|
|
|
119,828
|
|
Operating
income
|
386
|
|
|
9,662
|
|
Other income,
net
|
250
|
|
|
443
|
|
Income before income
taxes
|
636
|
|
|
10,105
|
|
Income tax expense
(benefit)
|
(1,661)
|
|
|
236
|
|
Net income
|
$
|
2,297
|
|
|
$
|
9,869
|
|
|
|
|
|
Income per
share:
|
|
|
|
Basic
|
$
|
0.08
|
|
|
$
|
0.23
|
|
Diluted
|
$
|
0.08
|
|
|
$
|
0.23
|
|
Weighted average
number of common shares outstanding used in computing income per
share:
|
|
|
|
Basic
|
27,164
|
|
|
42,100
|
|
Diluted
|
27,564
|
|
|
42,997
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
(In
thousands)
|
|
|
March
31, 2018
|
|
December
31, 2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
171,178
|
|
|
$
|
185,098
|
|
Restricted
cash
|
17,457
|
|
|
20,428
|
|
Investments
|
2,121
|
|
|
2,065
|
|
Accounts receivable,
net
|
33,594
|
|
|
27,077
|
|
Prepaid expenses and
other current assets
|
21,394
|
|
|
22,388
|
|
Total current
assets
|
245,744
|
|
|
257,056
|
|
Property and
equipment, net
|
10,019
|
|
|
10,434
|
|
Goodwill and
intangibles, net
|
14,170
|
|
|
14,593
|
|
Other long-term
assets
|
4,814
|
|
|
5,456
|
|
Total
assets
|
$
|
274,747
|
|
|
$
|
287,539
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
66,182
|
|
|
$
|
71,165
|
|
Deferred revenue and
student deposits
|
61,698
|
|
|
68,207
|
|
Total current
liabilities
|
127,880
|
|
|
139,372
|
|
Rent
liability
|
6,030
|
|
|
7,001
|
|
Other long-term
liabilities
|
12,773
|
|
|
12,708
|
|
Total
liabilities
|
146,683
|
|
|
159,081
|
|
Total stockholders'
equity
|
128,064
|
|
|
128,458
|
|
Total liabilities and
stockholders' equity
|
$
|
274,747
|
|
|
$
|
287,539
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
2,297
|
|
|
$
|
9,869
|
|
Adjustments to
reconcile net income to net cash used in operating
activities:
|
|
|
|
Provision for bad
debts
|
6,646
|
|
|
9,294
|
|
Depreciation and
amortization
|
1,759
|
|
|
2,388
|
|
Amortization of
premium/discount
|
—
|
|
|
20
|
|
Deferred income
taxes
|
4
|
|
|
(1,284)
|
|
Stock-based
compensation
|
1,165
|
|
|
900
|
|
Net gain on marketable
securities
|
(14)
|
|
|
(76)
|
|
Reassessment of lease
charges
|
(506)
|
|
|
—
|
|
Loss on disposal or
impairment of fixed assets
|
9
|
|
|
66
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(15,849)
|
|
|
(15,762)
|
|
Prepaid expenses and
other current assets
|
995
|
|
|
81
|
|
Other long-term
assets
|
297
|
|
|
102
|
|
Accounts payable and
accrued liabilities
|
(4,332)
|
|
|
(10,872)
|
|
Deferred revenue and
student deposits
|
(6,973)
|
|
|
(2,872)
|
|
Other
liabilities
|
(567)
|
|
|
(3,373)
|
|
Net cash
used in operating activities
|
(15,069)
|
|
|
(11,519)
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(809)
|
|
|
(1,293)
|
|
Purchases of
investments
|
(747)
|
|
|
(37)
|
|
Capitalized costs for
intangible assets
|
(265)
|
|
|
(114)
|
|
Sales of
investments
|
704
|
|
|
—
|
|
Maturities of
investments
|
—
|
|
|
17,725
|
|
Net cash
(used in) provided by investing activities
|
(1,117)
|
|
|
16,281
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
1,299
|
|
Tax withholdings on
issuance of stock awards
|
(705)
|
|
|
(1,481)
|
|
Repurchase of common
stock
|
—
|
|
|
(152,000)
|
|
Net cash
used in financing activities
|
(705)
|
|
|
(152,182)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(16,891)
|
|
|
(147,420)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
205,526
|
|
|
332,335
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
188,635
|
|
|
$
|
184,915
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months
Ended
March 31,
|
|
2018
|
|
2017
|
Operating
Income Reconciliation:
|
|
|
|
GAAP operating
income
|
$
|
386
|
|
|
$
|
9,662
|
|
Restructuring and
impairment expense (credit)
|
(159)
|
|
|
—
|
|
Non-GAAP operating
income
|
$
|
227
|
|
|
$
|
9,662
|
|
|
|
|
|
|
|
|
|
Net Income
Reconciliation:
|
|
|
|
GAAP net
income
|
$
|
2,297
|
|
|
$
|
9,869
|
|
Restructuring and
impairment expense (credit)
|
(159)
|
|
|
—
|
|
Income tax
impact
|
(1,745)
|
|
|
—
|
|
Non-GAAP net
income
|
$
|
393
|
|
|
$
|
9,869
|
|
|
|
|
|
|
|
|
|
Diluted Income
Per Share Reconciliation:
|
|
|
|
GAAP diluted income
per share
|
$
|
0.08
|
|
|
$
|
0.23
|
|
Restructuring and
impairment expense (credit)
|
(0.01)
|
|
|
—
|
|
Income tax
impact
|
(0.06)
|
|
|
—
|
|
Non-GAAP diluted
income per share
|
$
|
0.01
|
|
|
$
|
0.23
|
|
Contact: Anna Davison, Investor
Relations
866.475.0317 x11620
investorrelations@bridgepointeducation.com
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SOURCE Bridgepoint Education