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Bridgepoint Education Reports Full Year 2014 Results

3/10/2015

SAN DIEGO, March 10, 2015 /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, 2014.

Bridgepoint Education logo

Highlights for the fourth quarter ended December 31, 2014:

  • Revenue of $147.3 million compared to $162.2 million for the same period in 2013.
  • Operating loss of $10.8 million compared to operating loss of $9.9 million for the same period in 2013.
  • Net loss of $5.2 million compared to net loss of $5.1 million for the same period in 2013.
  • Fully diluted loss per common share of $0.12 compared to fully diluted loss per common share of $0.10 for the same period in 2013.  Included in the fully diluted loss of $0.12 were impairment and severance charges of $14.1 million, which had an after-tax impact of $0.19 on fully diluted earnings per common share.

Highlights for the full year ended December 31, 2014:

  • Total student enrollment was 55,823 compared to 63,624 at December 31, 2013.
  • Revenue of $638.7 million compared to $751.4 million for 2013.
  • Operating income of $14.3 million compared to $68.5 million for 2013.
  • Net income of $9.7 million compared to net income of $45.9 million for 2013.
  • Fully diluted earnings per common share of $0.21 compared to fully diluted earnings per common share of $0.83 for 2013.

"Ashford University's focus in 2014 was to continue implementing and refining its initiatives to strengthen academic quality and enhance the support the University provides students and alumni. These initiatives were successful at producing over 17,000 graduates in 2014 by providing a rigorous and engaging learning experience designed for our working adult population," said Andrew Clark, CEO of Bridgepoint Education.

Student Enrollment

Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 55,823 at December 31, 2014, compared with 63,624 students at December 31, 2013.

Financial Results

Revenue for the fourth quarter of 2014 was $147.3 million, compared with revenue of $162.2 million for the fourth quarter of 2013.  Revenue for the year ended December 31, 2014, was $638.7 million, compared with revenue of $751.4 million for the year ended December 31, 2013.

Operating loss for the fourth quarter of 2014 was $10.8 million compared with operating loss of $9.9 million for the same period in 2013. Operating income for the year ended December 31, 2014, was $14.3 million, compared with $68.5 million for the year ended December 31, 2013.

Net loss for the fourth quarter of 2014 was $5.2 million compared with net loss of $5.1 million for the fourth quarter of 2013.  Net income for the year ended December 31, 2014, was $9.7 million, compared with net income of $45.9 million for the year ended December 31, 2013.

Fully diluted loss per common share for the fourth quarter of 2014 was $0.12 compared with fully diluted loss per common share of $0.10 for the fourth quarter of 2013.  Fully diluted earnings per common share for the year ended December 31, 2014, was $0.21 compared with fully diluted earnings per common share of $0.83 for the year ended December 31, 2013. Included in the fully diluted earnings per common share of $0.21 for the year ended December 31, 2014 were impairment and severance charges of $14.1 million, which had an after-tax impact of $0.19 on fully diluted earnings per common share.

The Company's effective tax rate for the year ended December 31, 2014, was 43.8%.

Balance Sheet and Cash Flow               

As of December 31, 2014, the Company had cash, cash equivalents and investments of $356.5 million, compared with $356.4 million as of December 31, 2013.  The Company generated $25.2 million of cash from operating activities for the year ended December 31, 2014, compared with $85.6 million for the year ended December 31, 2013.

Earnings Conference Call and Webcast

The Company will host a conference call and webcast at 11:30 a.m. ET (8:30 a.m. PT) today to discuss its latest financial results and recent developments. Call participants should dial 866-859-7412 (United States/Canada) or (832) 900-4623 (other countries) and request the Bridgepoint Education call or provide the conference ID 95525667.  A live broadcast of the call will also be available via the Internet at http://ir.bridgepointeducation.com and will be archived on the site for one year. 

A telephonic replay will be available at (800) 585-8367 (United States/Canada) or 404-537-3406 (other countries), passcode 95525667.  The replay will be available from Tuesday, March 10, 2015, at 3:00 p.m. (Eastern Time) until April 14, 2015, at 3:00 p.m. (Eastern Time).

About Bridgepoint Education

Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest technology to reimagine the modern student experience. Bridgepoint's technologies, such as Waypoint Outcomes, enhance the way people learn in the digital age. Bridgepoint owns two academic institutions – Ashford University and University of the Rockies. 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 in Iowa and Colorado.  Bridgepoint stands for greater access, social learning, and exposure to leading minds.

For more information, visit www.bridgepointeducation.com, www.facebook.com/BridgepointEducation, or call Paul Goodson, Associate Vice President of Investor Relations at (866) 475-0317 x2271.

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 2015 outlook. These 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, including Title IV of the Higher Education Act of 1965, as amended, and its regulations, state laws and regulatory requirements, and accrediting agency requirements;
  • 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 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 "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 Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 to be filed with the SEC. 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 and assumptions regarding future events based on information available at the time the statements are made.  Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update or revise any 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.

Consolidated Statements of Income

(In thousands, except per share amounts)






Three Months Ended

December 31,


Year Ended

December 31,


2014


2013


2014


2013

Revenue

$

147,259



$

162,225



$

638,705



$

751,449


Costs and expenses:












Instructional costs and services

81,671



90,541



321,312



370,734


Admissions advisory and marketing

58,629



55,726



236,708



235,358


General and administrative

17,785



25,828



66,374



76,894


Total costs and expenses

158,085



172,095



624,394



682,986


Operating income (loss)

(10,826)



(9,870)



14,311



68,463


Other income, net

725



711



2,884



3,082


Income (loss) before income taxes

(10,101)



(9,159)



17,195



71,545


Income tax expense (benefit)

(4,853)



(4,050)



7,527



25,662


Net income (loss)

$

(5,248)



$

(5,109)



$

9,668



$

45,883


Earnings (loss) per common share:












Basic

$

(0.12)



$

(0.10)



$

0.21



$

0.85


Diluted

(0.12)



(0.10)



0.21



0.83


Weighted average number of common shares outstanding used in computing earnings per common share:












Basic

45,381



53,098



45,204



53,923


Diluted

45,381



53,098



46,512



55,487


 

BRIDGEPOINT EDUCATION, INC.

Consolidated Balance Sheets

(In thousands, except par value)




As of December 31,


2014


2013

ASSETS






Current assets:






Cash and cash equivalents

$

207,003



$

212,526


Restricted cash

25,934



36,946


Investments

12,051



65,901


Accounts receivable, net

21,274



22,953


Student loans receivable, net

1,003



1,043


Deferred income taxes

21,301



16,683


Prepaid expenses and other current assets

22,818



21,563


Total current assets

311,384



377,615


Property and equipment, net

78,219



91,425


Investments

111,557



41,062


Student loans receivable, net

9,510



11,785


Goodwill and intangibles, net

24,775



26,878


Deferred income taxes

20,175



18,507


Other long-term assets

2,475



2,740


Total assets

$

558,095



$

570,012


LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities:






Accounts payable

$

1,013



$

5,195


Accrued liabilities

51,403



54,290


Deferred revenue and student deposits

108,048



132,791


Total current liabilities

160,464



192,276


Rent liability

22,098



23,927


Other long-term liabilities

9,652



9,271


Total liabilities

192,214



225,474


Total stockholders' equity

365,881



344,538


Total liabilities and stockholders' equity

$

558,095



$

570,012


 

BRIDGEPOINT EDUCATION, INC.

Consolidated Statements of Cash Flows

(In thousands)




Year Ended December 31,


2014


2013

Cash flows from operating activities






Net income

$

9,668



$

45,883


Adjustments to reconcile net income to net cash provided by operating activities:






Provision for bad debts

28,184



47,119


Depreciation and amortization

23,317



21,666


Amortization of premium/discount

206



2,624


Deferred income taxes

(7,096)



(6,962)


Stock-based compensation

10,558



13,934


Excess tax benefit of option exercises

(1,271)



(2,590)


Loss on impairment of student loans receivable

2,435



1,998


Net gain on marketable securities

(34)



(63)


Loss on termination of leased space

6,470



328


Loss on disposal of fixed assets

7,028



751


Changes in operating assets and liabilities:






Restricted cash

11,042



10,048


Accounts receivable

(27,323)



(15,973)


Prepaid expenses and other current assets

659



(2,607)


Student loans receivable

809



291


Other long-term assets

266



(412)


Accounts payable and accrued liabilities

(12,102)



13,220


Deferred revenue and student deposits

(24,411)



(41,607)


Other liabilities

(3,754)



(184)


Uncertain tax position

568



(1,878)


Net cash provided by operating activities

25,219



85,586


Cash flows from investing activities






Capital expenditures

(11,429)



(14,825)


Purchases of investments

(87,933)



(26,759)


Restricted cash

(30)




Capitalized costs for intangible assets

(3,634)



(19,563)


Sales and maturities of investments

70,000



176,343


Net cash provided by (used in) investing activities

(33,026)



115,196


Cash flows from financing activities






Proceeds from exercise of stock options

3,108



10,464


Tax withholdings related to net exercise of stock options



(9,170)


Excess tax benefit of option exercises

1,271



2,590


Proceeds from the issuance of stock under employee stock purchase plan



1,234


Proceeds from the exercise of warrants



231


Issuance of restricted stock

(2,095)



(1,080)


Repurchase of common stock



(201,496)


Net cash provided by (used in) financing activities

2,284



(197,227)


Net increase (decrease) in cash and cash equivalents

(5,523)



3,555


Cash and cash equivalents at beginning of period

212,526



208,971


Cash and cash equivalents at end of period

$

207,003



$

212,526


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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bridgepoint-education-reports-full-year-2014-results-300047975.html

SOURCE Bridgepoint Education

Paul Goodson, Associate Vice President, Investor Relations, (866) 475-0317 x2271, investorrelations@bridgepointeducation.com
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