View all news

Bridgepoint Education Reports Fourth Quarter and Full Year 2015 Results

3/8/2016

Operating Loss of $42.3 million for 2015 Includes $68.4 million of Restructuring and Impairment Charges

SAN DIEGO, March 8, 2016 /PRNewswire/ -- Bridgepoint Education, Inc. (NYSE:BPI), a provider of postsecondary education services, today announced the results for its fourth quarter and full year ended December 31, 2015.

Bridgepoint Education logo

Financial Results for the Three Months Ended December 31, 2015

Revenue for the fourth quarter of 2015 was $131.4 million, compared with revenue of $147.3 million for the fourth quarter of 2014.

Operating loss for the fourth quarter of 2015 was $6.1 million, compared with operating loss of $10.8 million for the fourth quarter of 2014.

The Company recognized income tax expense of $1.2 million for the fourth quarter of 2015, compared with an income tax benefit of $4.9 million for the fourth quarter of 2014.

Net loss for the fourth quarter of 2015 was $6.7 million, compared with net loss of $5.2 million for the fourth quarter of 2014.

Fully diluted loss per common share for the fourth quarter of 2015 was $0.15, compared with fully diluted loss per common share of $0.12 for the fourth quarter of 2014.

Non-GAAP Financial Results for the Three Months Ended December 31, 2015

Non-GAAP operating income for the fourth quarter of 2015 was $2.9 million, compared with non-GAAP operating income of $6.0 million for the fourth quarter of 2014. Non-GAAP operating income for the fourth quarter of 2015 excludes restructuring and impairment charges of $9.0 million. Non-GAAP operating income for the fourth quarter of 2014 excludes restructuring and impairment charges of $16.8 million.

Non-GAAP net income for the fourth quarter of 2015 was $2.0 million, compared with non-GAAP net income of $5.3 million for the fourth quarter of 2014. Non-GAAP net income for the fourth quarter of 2015 excludes restructuring and impairment charges of $9.0 million and the related tax effect, as well as tax expense of $3.0 million relating to the valuation allowance against deferred tax assets. Non-GAAP net income for the fourth quarter of 2014 excludes restructuring and impairment charges of $16.8 million and the related tax effect.

Non-GAAP fully diluted earnings per common share for the fourth quarter of 2015 was $0.04, compared with non-GAAP fully diluted earnings per common share of $0.12 for the fourth quarter of 2014.

Financial Results for the Year Ended December 31, 2015

Revenue for the year ended December 31, 2015 was $561.7 million, compared with revenue of $638.7 million for the year ended December 31, 2014.

Operating loss for the year ended December 31, 2015 was $42.3 million, compared with operating income of $14.3 million for the year ended December 31, 2014.

The Company recognized income tax expense of $30.3 million for the year ended December 31, 2015, compared with income tax expense of $7.5 million for the year ended December 31, 2014.

Net loss for the year ended December 31, 2015 was $70.5 million, compared with net income of $9.7 million for the year ended December 31, 2014.

Fully diluted loss per common share for the year ended December 31, 2015, was $1.54 compared with fully diluted earnings per common share of $0.21 for the year ended December 31, 2014.

Non-GAAP Financial Results for the Year Ended December 31, 2015

Non-GAAP operating income for the year ended December 31, 2015 was $26.1 million, compared with non-GAAP operating income of $31.1 million for the year ended December 31, 2014. Non-GAAP operating income for the year ended December 31, 2015 excludes restructuring and impairment charges of $68.4 million. Non-GAAP operating income for the year ended December 31, 2014 excludes restructuring and impairment charges of $16.8 million.

Non-GAAP net income for the year ended December 31, 2015 was $15.9 million, compared with non-GAAP net income of $20.2 million for the year ended December 31, 2014. Non-GAAP net income for the year ended December 31, 2015 excludes restructuring and impairment charges of $68.4 million and the related tax effect, as well as tax expense of $43.7 million relating to the valuation allowance against deferred tax assets. Non-GAAP net income for the year ended December 31, 2014 excludes restructuring and impairment charges of $16.8 million and the related tax effect.

Non-GAAP fully diluted earnings per common share for the year ended December 31, 2015 was $0.35, compared with non-GAAP fully diluted earnings per common share of $0.43 for the year ended December 31, 2014.

Balance Sheet and Cash Flow  

As of December 31, 2015, the Company had cash, cash equivalents and investments of $374.0 million, compared with cash, cash equivalents and investments of $356.5 million as of December 31, 2014. 

The Company generated $26.7 million of cash from operating activities for the year ended December 31, 2015, compared with $25.2 million of cash from operating activities for the year ended December 31, 2014.

Student Enrollment

Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 49,159 at December 31, 2015, compared with total student enrollment of 55,823 at December 31, 2014.

As of December 31, 2015, the 12-month retention for all Ashford students who were active on the last day of the fourth quarter of 2014 was 61.3%.  As of December 31, 2014, the 12-month retention for all Ashford students who were active on the last day of the fourth quarter of 2013 was 65.3%.

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 common share which exclude restructuring and impairment charges as well as 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 these 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 and webcast 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 international callers is (832) 900-4623. The access code for all callers is 60376128. A live broadcast of the call will also be available via the Internet at http://ir.bridgepointeducation.com.

A replay of the call will be available via telephone through April 7, 2016. To access the replay, callers in the United States / Canada should dial (855) 859-2056 and other callers should dial (404) 537-3406. The access code for all callers is 60376128.

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. 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 campuses in Iowa and Colorado, respectively.  Bridgepoint stands for greater access, social learning, and exposure to leading minds. For more information, visit http://ir.bridgepointeducation.com/investor-relations/ 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 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 to be 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.
Consolidated Statements of Income
(In thousands, except per share amounts)






Three Months Ended
December 31,


Year Ended
December 31,


2015


2014


2015


2014

Revenue

$

131,392



$

147,259



$

561,729



$

638,705


Costs and expenses:








Instructional costs and services

65,840



75,438



281,496



315,079


Admissions advisory and marketing

48,948



53,055



197,584



231,134


General and administrative

13,674



12,764



56,588



61,353


Restructuring and impairment charges

9,034



16,828



68,356



16,828


Total costs and expenses

137,496



158,085



604,024



624,394


Operating income (loss)

(6,104)



(10,826)



(42,295)



14,311


Other income, net

607



725



2,106



2,884


Income (loss) before income taxes

(5,497)



(10,101)



(40,189)



17,195


Income tax expense (benefit)

1,190



(4,853)



30,265



7,527


Net income (loss)

$

(6,687)



$

(5,248)



$

(70,454)



$

9,668


Earnings (loss) per common share:








Basic

$

(0.15)



$

(0.12)



$

(1.54)



$

0.21


Diluted

(0.15)



(0.12)



(1.54)



0.21


Weighted average number of common shares outstanding

used in computing earnings per common share:








Basic

45,799



45,381



45,665



45,204


Diluted

45,799



45,381



45,665



46,512


 


BRIDGEPOINT EDUCATION, INC.
Consolidated Balance Sheets
(In thousands, except par value)




As of December 31,


2015


2014

ASSETS




Current assets:




Cash and cash equivalents

$

282,145



$

207,003


Restricted cash

24,685



25,934


Investments

19,387



12,051


Accounts receivable, net

24,091



21,274


Student loans receivable, net

775



1,003


Deferred income taxes



21,301


Prepaid expenses and other current assets

52,192



22,818


Total current assets

403,275



311,384


Property and equipment, net

21,742



78,219


Investments

47,770



111,557


Student loans receivable, net

7,394



9,510


Goodwill and intangibles, net

21,265



24,775


Deferred income taxes



20,175


Other long-term assets

5,320



2,475


Total assets

$

506,766



$

558,095


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

4,762



$

1,013


Accrued liabilities

74,434



51,403


Deferred revenue and student deposits

88,756



108,048


Total current liabilities

167,952



160,464


Rent liability

20,118



22,098


Other long-term liabilities

15,046



9,652


Total liabilities

203,116



192,214


Total stockholders' equity

303,650



365,881


Total liabilities and stockholders' equity

$

506,766



$

558,095


 

BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Cash Flows
(In thousands)




Year Ended December 31,


2015


2014

Cash flows from operating activities




Net income (loss)

$

(70,454)



$

9,668


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




Provision for bad debts

29,863



28,184


Depreciation and amortization

19,578



23,317


Amortization of premium/discount

475



206


Deferred income taxes

40,944



(7,096)


Stock-based compensation

9,710



10,558


Excess tax benefit of option exercises

(460)



(1,271)


Loss on impairment of student loans receivable

1,328



2,435


Net gain (loss) on marketable securities

91



(34)


Loss on termination of leased space

17,047



6,470


Loss on impairment of fixed assets

44,949



7,028


Changes in operating assets and liabilities:




Restricted cash

7,913



11,042


Accounts receivable

(32,383)



(27,323)


Prepaid expenses and other current assets

(14,446)



659


Student loans receivable

1,139



809


Other long-term assets

(2,845)



266


Accounts payable and accrued liabilities

1,104



(12,102)


Deferred revenue and student deposits

(19,170)



(24,411)


Other liabilities

(7,952)



(3,754)


Uncertain tax position

284



568


Net cash provided by operating activities

26,715



25,219


Cash flows from investing activities




Capital expenditures

(2,477)



(11,429)


Purchases of investments

(20,280)



(87,933)


Non-operating restricted cash

(6,665)



(30)


Capitalized costs for intangible assets

(2,153)



(3,634)


Sales and maturities of investments

76,197



70,000


Net cash provided by (used in) investing activities

44,622



(33,026)


Cash flows from financing activities




Proceeds from exercise of stock options

284



3,108


Excess tax benefit of option exercises

460



1,271


Proceeds from the issuance of stock under employee stock purchase plan

261




Tax withholding on issuance of stock awards

(1,341)



(2,095)


Proceeds from failed sale-leaseback transaction

4,141




Net cash provided by financing activities

3,805



2,284


Net increase (decrease) in cash and cash equivalents

75,142



(5,523)


Cash and cash equivalents at beginning of period

207,003



212,526


Cash and cash equivalents at end of period

$

282,145



$

207,003


 

BRIDGEPOINT EDUCATION, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)






Three Months Ended
December 31,


Year Ended
December 31,


2015


2014


2015


2014

Operating Income (Loss) Reconciliation:








GAAP operating income (loss)

$

(6,104)



$

(10,826)



$

(42,295)



$

14,311


Restructuring and impairment charges

9,034



16,828



68,356



16,828


Non-GAAP operating income

$

2,930



$

6,002



$

26,061



$

31,139


















Net Income (Loss) Reconciliation:








GAAP net income (loss)

$

(6,687)



$

(5,248)



$

(70,454)



$

9,668


Restructuring and impairment charges

9,034



16,828



68,356



16,828


Income tax expense related to restructuring

and impairment charges (1)

(3,388)



(6,311)



(25,634)



(6,311)


Incremental income tax expense related to

establishment of valuation allowance

2,999





43,665




Non-GAAP net income

$

1,958



$

5,269



$

15,933



$

20,185


















Diluted Earnings (Loss) Per Share Reconciliation:








GAAP diluted earnings (loss) per share

$

(0.15)



$

(0.12)



$

(1.54)



$

0.21


Restructuring and impairment charges

0.20



0.37



1.49



0.36


Income tax expense related to restructuring

and impairment charges (1)

(0.07)



(0.13)



(0.56)



(0.14)


Incremental income tax expense related to

establishment of valuation allowance

0.06





0.96




Non-GAAP diluted earnings per share

$

0.04



$

0.12



$

0.35



$

0.43




(1) -  Calculated using a statutory tax rate equal to 37.5%

 

Contact: Kevin Royal, Chief Financial Officer
(866) 475-0317 x11120
investorrelations@bridgepointeducation.com

Logo - http://photos.prnewswire.com/prnh/20140912/145861

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bridgepoint-education-reports-fourth-quarter-and-full-year-2015-results-300232308.html

SOURCE Bridgepoint Education, Inc.

Categories: Press Releases
View all news