Bridgepoint Education Reports Full Year 2012 Results PR Newswire SAN DIEGO, March 12, 2013 SAN DIEGO, March 12, 2013 /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, 2012. Highlights for the fourth quarter ended December 31, 2012: oRevenue decreased to $209.4 million from $221.3 million for the same period in 2011. oOperating income decreased to $25.1 million from $35.3 million for the same period in 2011. oNet income decreased to $16.0 million from $22.9 million for the same period in 2011. oFully diluted earnings per common share decreased to $0.29 from $0.41 for the same period in 2011. Highlights for the full year ended December 31, 2012: oTotal student enrollment decreased to 81,810 from 86,642 at December 31, 2011. oRevenue increased to $968.2 million from $933.3 million for 2011. oOperating income decreased to $202.7 million from $273.7 million for 2011. oNet income was $128.0 million compared with net income of $172.8 million for 2011. oFully diluted earnings per common share was $2.29 compared with $3.02 for 2011. Student Enrollment Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 81,810 at December 31, 2012, compared with 86,642 students at the end of the fourth quarter of 2011. Combined new student enrollments for the fourth quarter of 2012 at both of the Company's academic institutions were approximately 9,260, compared with combined new student enrollments of approximately 13,500 for the fourth quarter of 2011. Financial Results Effective in the fourth quarter of 2012, the Company made changes in the presentation of its operating expenses. The Company determined that these changes would better reflect industry practice and would provide more meaningful information as well as increased transparency to its operations. The Company also believes that the reclassification better represents the operational changes and the business initiatives that have been implemented. The Company has reclassified prior periods to conform to the new presentation. Revenue for the fourth quarter of 2012 was $209.4 million, compared with revenue of $221.3 million for the fourth quarter of 2011. Revenue for the year ended December 31, 2012, was $968.2 million, compared with revenue of $933.3 million for the year ended December 31, 2011. Operating income for the fourth quarter of 2012, was $25.1 million, compared with $35.3 million for the same period in 2011. Operating income for the year ended December 31, 2012, was $202.7 million, compared with $273.7 million for the year ended December 31, 2011. Net income for the fourth quarter of 2012 was $16.0 million, compared with net income of $22.9 million for the fourth quarter of 2011. Net income for the year ended December 31, 2012, was $128.0 million, compared with net income of $172.8 million for the year ended December 31, 2011. Fully diluted earnings per common share for the fourth quarter of 2012 was $0.29 compared with fully diluted earnings per common share of $0.41 for the fourth quarter of 2011. Fully diluted earnings per common share for the year ended December 31, 2012, was $2.29, compared with fully diluted earnings per common share of $3.02 for the year ended December 31, 2011. The Company's effective tax rate for the year ended December 31, 2012, was 37.9%. The Company anticipates a 2.75% tuition increase for online students at Ashford University for courses beginning on or after April 1, 2013. Balance Sheet and Cash Flow As of December 31, 2012, the Company had cash, cash equivalents and investments of $514.7 million, compared with $407.2 million as of December 31, 2011. The Company generated $143.2 million of cash from operating activities for the year ended December 31, 2012, compared with $220.8 million for the year ended December 31, 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 (800) 347-6311 and for international callers is (719) 457-2086. The access code for all callers is 7577415. 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 March 19, 2013. 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 7577415. 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 academic 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. Forward-Looking Statements This news release may contain forward-looking statements including, without limitation, statements regarding the Company's 2013 outlook and related commentary. These statements involve risks and uncertainties, and the Company's actual performance may differ materially from those expressed in or suggested by such statements. Risks and uncertainties include, without limitation: ofailure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements, and accrediting agency requirements; oadverse administrative, regulatory or legislative changes affecting the Company's institutions; othe imposition of fines or other corrective measures against the Company's institutions; ocompetition in the postsecondary education market and its potential impact on the Company's market share and recruiting costs; and oreputational and other risks related to potential compliance audits, regulatory actions, negative publicity or service disruptions. More information on potential factors that could affect the Company's performance 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 SEC, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 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 the Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, except as required by law. Contact: Paul Goodson, Associate Vice President, Investor Relations (866) 475-0317 x2271 firstname.lastname@example.org BRIDGEPOINT EDUCATION, INC. Consolidated Statements of Income (In thousands, except per share amounts) Year Ended December 31, 2012 2011 Revenue $ 968,171 $ 933,349 Costs and expenses: Instructional costs and services 355,273 303,860 Admissions advisory and marketing 339,209 297,619 General and administrative 70,975 58,123 Total costs and expenses 765,457 659,602 Operating income 202,714 273,747 Other income, net 3,370 2,768 Income before income taxes 206,084 276,515 Income tax expense 78,121 103,751 Net income $ 127,963 $ 172,764 Earnings per common share: Basic $ 2.42 $ 3.30 Diluted 2.29 3.02 Weighted average number of common shares outstanding used in computing earnings per common share: Basic 52,947 52,291 Diluted 55,946 57,133 BRIDGEPOINT EDUCATION, INC. Consolidated Balance Sheets (In thousands, except par value) As of December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 255,965 $ 133,921 Restricted cash — 25 Investments 136,967 153,779 Accounts receivable, net 75,177 62,156 Deferred income taxes 8,228 5,429 Prepaid expenses and other current assets 19,810 17,199 Total current assets 496,147 372,509 Property and equipment, net 95,966 89,667 Investments 121,738 119,507 Student loans receivable, net 15,143 9,255 Goodwill and intangibles, net 10,739 7,037 Deferred income taxes 13,266 11,200 Other long-term assets 2,330 4,461 Total assets $ 755,329 $ 613,636 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,588 $ 8,961 Accrued liabilities 44,640 40,205 Deferred revenue and student deposits 175,057 185,446 Total current liabilities 224,285 234,612 Rent liability 25,173 16,595 Other long-term liabilities 9,759 8,781 Total liabilities 259,217 259,988 Total stockholders' equity 496,112 353,648 Total liabilities and stockholders' equity $ 755,329 $ 613,636 BRIDGEPOINT EDUCATION, INC. Consolidated Statements of Cash Flows (In thousands) Year Ended December 31, 2012 2011 Cash flows from operating activities Net income $ 127,963 $ 172,764 Adjustments to reconcile net income to net cash provided by operating activities: Provision for bad debts 66,446 58,511 Depreciation and amortization 17,424 12,743 Amortization of premium/discount 6,805 3,969 Deferred income taxes (7,264) 6,606 Stock-based compensation 13,729 10,595 Excess tax benefit of option exercises (10,058) (19,096) Loss on disposal of fixed assets 1,153 13 Changes in operating assets and liabilities: Accounts receivable (81,577) (60,817) Prepaid expenses and other current assets (1,056) (2,104) Student loans receivable (3,778) (7,947) Other long-term assets 2,131 253 Accounts payable and accrued liabilities 12,100 27,509 Deferred revenue and student deposits (10,389) 11,870 Other liabilities 8,772 5,882 Uncertain tax position 784 57 Net cash provided by operating activities 143,185 220,808 Cash flows from investing activities Capital expenditures (25,296) (34,492) Purchases of investments (179,387) (337,084) Restricted cash 25 — Capitalized curriculum development costs (5,262) (3,521) Sales and maturities of investments 186,911 167,049 Net cash used in investing activities (23,009) (208,048) Cash flows from financing activities Proceeds from exercise of stock options 2,257 4,889 Tax withholdings related to net issuance of stock (10,418) — options Excess tax benefit of option exercises 10,058 19,096 Proceeds from the issuance of stock under employee 1,340 1,330 stock purchase plan Proceeds from the exercise of warrants 490 106 Tax withholdings related to net issuance of warrants (944) — Issuance of restricted stock (313) — Repurchase of common stock (602) (92,778) Net cash provided by (used in) financing activities 1,868 (67,357) Net increase (decrease) in cash and cash equivalents 122,044 (54,597) Cash and cash equivalents at beginning of period 133,921 188,518 Cash and cash equivalents at end of period $ 255,965 $ 133,921 SOURCE Bridgepoint Education, Inc. Website: http://bridgepointeducation.com
Bridgepoint Education Reports Full Year 2012 Results
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