Bridgepoint Education Reports Third Quarter 2012 Results

           Bridgepoint Education Reports Third Quarter 2012 Results

PR Newswire

SAN DIEGO, Nov. 5, 2012

SAN DIEGO, Nov. 5, 2012 /PRNewswire/ --Bridgepoint Education, Inc. (NYSE:
BPI), a provider of postsecondary education services, today announced its
results for the three and nine months ended September 30, 2012. The company
also reported that Dr. Gregory Geoffroy joined the Ashford University Board of
Trustees on October 25, 2012 and on November 2, 2012 he was elected to serve
as its new chairman beginning in March of 2013. 

Dr. Geoffroy brings a distinguished career in higher education to the Ashford
Board of Trustees. He is president emeritus of Iowa State University in Ames,
Iowa, where he currently serves as a professor of chemistry and where he spent
the previous ten years as the institution's president. During Dr. Geoffroy's
tenure as president, Iowa State expanded student diversity, saw major
improvements to its campus infrastructure, and established the Bioeconomy
Institute.

"Our academic institutions are committed to being leaders in affordability,
access, academic quality and student success.The election of Dr. Geoffroy to
lead Ashford University's Board of Trustees, and the recent appointment of Dr.
Richard Pattenaude as president of Ashford, demonstrate our steadfast
commitment to these critical national goals, and will enhance the leadership
of Ashford University,"said Andrew Clark, CEO of Bridgepoint Education.

Third Quarter Results

Highlights for the third quarter ended September 30, 2012, are as follows:

  oTotal student enrollment at period end was 91,358.
  oRevenue increased to $252.1 million from $242.8 million for the same
    period in 2011.
  oOperating income decreased to $49.7 million from $69.8 million for the
    same period in 2011.
  oNet income was $31.4 million compared with net income of $43.8 million for
    the same period in 2011.
  oFully diluted earnings per common share was $0.56 compared with $0.78 for
    the same period in 2011.

Student Enrollment

Total student enrollment at the Company's academic institutions, Ashford
University and University of the Rockies, was 91,358 students at September 30,
2012, compared with 90,597 students for the same period in 2011.

New student enrollments for the third quarter of 2012 at Bridgepoint
Education's academic institutions were approximately 20,500 compared with
combined new student enrollments of approximately 22,000 for the same period
in 2011.

Financial Results

Revenue for the third quarter of 2012 was $252.1 million compared with revenue
of $242.8 million for the same period in 2011. Revenue for the nine months
ended September 30, 2012, was $758.8 million compared with revenue of $712.1
million for the same period in 2011.

Operating income for the third quarter of 2012 was $49.7 million compared with
operating income of $69.8 million for the same period in 2011. Operating
income for the nine months ended September 30, 2012, was $177.6 million
compared with operating income of $238.4 million for the same period in 2011.


Net income for the third quarter of 2012 was $31.4 million compared with net
income of $43.8 million for the same period in 2011. Net income for the nine
months ended September 30, 2012, was $111.9 million compared with net income
of $149.9 million for the same period in 2011. 

Fully diluted earnings per common share for the third quarter of 2012 was
$0.56 compared with fully diluted earnings per common share of $0.78 for the
same period in 2011. Fully diluted earnings per common share for the nine
months ended September 30, 2012, was $2.00 compared with fully diluted
earnings per common share of $2.60 for the same period in 2011.

The Company's effective tax rate for the third quarter of 2012 was 38.0%.

Balance Sheet and Cash Flow

As of September 30, 2012, the Company had cash, cash equivalents and
marketable securities of $471.4 million, compared with $407.2 million as of
December 31, 2011. The Company generated $93.6 million of cash from operating
activities for the nine months ended September 30, 2012, compared with $148.7
million for the same period in 2011.

Earnings Conference Call and Webcast

The Company will host a conference call at 11:30 a.m. ET (8:30 a.m. PT) today
to discuss its latest financial results and recent developments. The dial-in
number for callers in the United States and Canada is (866) 454-4209 and for
international callers is (913) 981-5551. The access code for all callers is
4122862. A live webcast will also be available on the Company's website at
http://bridgepointeducation.com/investor_relations.htm. 

A replay of the call will be available via telephone through November 12,
2012. To access the replay, dial (888) 203-1112 in the United States or Canada
and (719) 457-0820 for international callers; then enter the access code
4122862.

About Bridgepoint Education

Bridgepoint Education, Inc. (NYSE:BPI) improves the way individuals learn. By
harnessing creativity, knowledge and proprietary technologies, such as
Constellation, Thuze, and Waypoint Outcomes, Bridgepoint Education has
re-engineered the modern student experience with innovative solutions that
advance learning. Its accredited institutions – Ashford University and
University of the Rockies – embody the contemporary college experience.
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
located in Clinton, Iowa (Ashford University), and Colorado Springs, Colorado
(University of the Rockies).

For more information about Bridgepoint Education, call Paul Goodson, Associate
Vice President of Investor Relations at (866) 475-0317 x2271,
investorrelations@bridgepointeducation.com.

Forward-Looking Statements

This news release contains forward-looking statements including, without
limitation, statements regarding measures to strengthen the academic
leadership of Ashford University and related transition. These statements
involve risks and uncertainties, and actual results may differ materially from
those expressed in, or suggested by, such statements. More information on
potential factors that could affect our future 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 our periodic
reports filed with the SEC, including, without limitation, our Annual Report
on Form 10-K for the year ended December 31, 2011, filed with the SEC on March
7, 2012, and our Quarterly Reports on Form 10-Q for the quarters ended March
31, 2012 and June 30, 2012, filed with the SEC on May 1, 2012 and August 7,
2012, respectively, and our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2012, to be filed with the SEC.

Forward-looking statements are made on the basis of management's views and
assumptions regarding future events and business performance as of the time
the statements are made, and Bridgepoint Education assumes no obligation to
update any forward-looking statements or information, which speak as of their
respective dates, except as required by law.



BRIDGEPOINT EDUCATION,  INC.

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)


                                Three Months Ended      Nine Months Ended

                                September 30,           September 30,
                                2012        2011        2012        2011
Revenue                         $ 252,076   $ 242,771   $ 758,815   $ 712,084
Costs and expenses:
Instructional costs and         75,699      69,611      209,569     187,432
services
Marketing and promotional       90,291      68,848      248,962     190,002
General and administrative      36,364      34,539      122,673     96,215
Total costs and expenses        202,354     172,998     581,204     473,649
Operating income                49,722      69,773      177,611     238,435
Other income, net               955         608         2,492       1,937
Income before income taxes      50,677      70,381      180,103     240,372
Income tax expense              19,232      26,570      68,159      90,493
Net income                      $ 31,445    $ 43,811    $ 111,944   $ 149,879
Earnings per share:
Basic                           $ 0.59      $ 0.85      $ 2.13      $ 2.85
Diluted                         0.56        0.78        2.00        2.60
Weighted average number of
common shares

outstanding used in computing
earnings per share:
Basic                           53,184      51,822      52,576      52,565
Diluted                         55,756      56,375      56,089      57,624



BRIDGEPOINT EDUCATION,  INC.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)


                                         As of               As of
                                         September 30, 2012  December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents                $    181,577        $    133,921
Restricted cash                          —                   25
Investments                              142,984             153,779
Accounts receivable, net                 111,010             62,156
Deferred income taxes                    5,313               5,429
Prepaid expenses and other current       22,722              17,199
assets
Total current assets                     463,606             372,509
Property and equipment, net              98,281              89,667
Investments                              146,887             119,507
Student loans receivable, net            14,992              9,255
Goodwill and intangibles, net            10,182              7,037
Deferred income taxes                    10,752              11,200
Other long-term assets                   2,490               4,461
Total assets                             $    747,190        $    613,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                         $    7,357          $    8,961
Accrued liabilities                      56,509              40,205
Deferred revenue and student deposits    172,255             185,446
Total current liabilities                236,121             234,612
Rent liability                           24,347              16,595
Other long-term liabilities              9,293               8,781
Total liabilities                        269,761             259,988
Total stockholders' equity               477,429             353,648
Total liabilities and stockholders'      $    747,190        $    613,636
equity



BRIDGEPOINT EDUCATION,  INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


                                                        Nine Months Ended

                                                        September 30,
                                                        2012        2011
Cash flows from operating activities
Net income                                              $ 111,944   $ 149,879
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for bad debts                                 41,327      40,896
Depreciation and amortization                           12,761      8,694
Amortization of premium/discount                        5,384       2,443
Deferred income taxes                                   —           1,720
Stock-based compensation                                9,915       7,803
Excess tax benefit of option exercises                  (8,446)     (15,750)
Loss on disposal of fixed assets                        —           11
Changes in operating assets and liabilities:
Accounts receivable                                     (90,188)    (69,538)
Prepaid expenses and other current assets               (3,982)     (985)
Student loans receivable                                (5,730)     (2,320)
Other long-term assets                                  1,971       (53)
Accounts payable and accrued liabilities                23,559      30,055
Deferred revenue and student deposits                   (13,191)    (8,707)
Other liabilities                                       8,264       4,541
Net cash provided by operating activities               93,588      148,689
Cash flows from investing activities
Capital expenditures                                    (20,803)    (24,438)
Purchases of investments                                (173,512)   (233,991)
Restricted cash                                         25          —
Capitalized curriculum development costs                (4,130)     (2,237)
Sales and maturities of investments                     151,511     157,049
Net cash used in investing activities                   (46,909)    (103,617)
Cash flows from financing activities
Proceeds from exercise of stock options                 2,240       4,384
Tax withholdings related to net issuance of stock       (10,418)    —
options
Excess tax benefit of option exercises                  8,446       15,750
Proceeds from the issuance of stock under employee      707         642
stock purchase plan
Proceeds from the exercise of warrants                  2           79
Repurchase of common stock                              —           (92,778)
Net cash provided by (used in) financing activities     977         (71,923)
Net increase (decrease) in cash and cash equivalents    47,656      (26,851)
Cash and cash equivalents at beginning of period        133,921     188,518
Cash and cash equivalents at end of period              $ 181,577   $ 161,667



SOURCE Bridgepoint Education, Inc.

Website: http://bridgepointeducation.com
 
Press spacebar to pause and continue. Press esc to stop.