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, email@example.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
Bridgepoint Education Reports Third Quarter 2012 Results
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