Bridgepoint Education Reports First Quarter 2013 Results PR Newswire SAN DIEGO, May 6, 2013 SAN DIEGO, May 6, 2013 /PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced its results for the first quarter ended March 31, 2013. Highlights for the first quarter ended March 31, 2013, are as follows: oTotal student enrollment at period end was 78,782. oRevenue was $222.0 million compared to $250.4 million for the same period in 2012. oOperating income was $37.8 million compared to $52.4 million for the same period in 2012. oNet income was $23.5 million compared to $33.0 million for the same period in 2012. oFully diluted earnings per share was $0.43 compared to $0.59 for the same period in 2012. Student Enrollment Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 78,782 students at March 31, 2013, compared with 94,863 students at the end of the first quarter of 2012. New student enrollments for the first quarter of 2013 at Bridgepoint Education's academic institutions were approximately 13,300 compared with combined new student enrollments of approximately 24,275 for the same period in 2012. Financial Results Revenue for the first quarter of 2013 was $222.0 million, compared with revenue of $250.4 million for the same period in 2012. Operating income for the first quarter of 2013 was $37.8 million compared with operating income of $52.4 million for the same period in 2012. Net income for the first quarter of 2013 was $23.5 million compared with net income of $33.0 million for the same period in 2012. Fully diluted earnings per share for the first quarter of 2013 was $0.43 compared with fully diluted earnings per share of $0.59 for the same period in 2012. The Company's effective tax rate for the first quarter of 2013 was 39.2%. As of March 31, 2013, the Company had cash and total investments of $524.9 million, compared with $514.7 million as of December 31, 2012. The Company generated $15.6 million of cash from operating activities in the first quarter of 2013, compared with $40.4 million for the same period in 2012. 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 highlights. The dial-in number for callers in the United States / Canada is (888) 397-5354 and for international callers is (719) 457-2604. The access code for all callers is 6116387. 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 May 13, 2013. To access the replay, dial (888) 203-1112 in the United States / Canada and (719) 457-0820 outside the United States / Canada; then enter the access code 6116387. 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 (858) 848-3312. 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 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 year ended December 31, 2012, filed with the SEC on March 12, 2013, and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, 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. BRIDGEPOINT EDUCATION, INC. Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2013 2012 Revenue $ 221,984 $ 250,437 Costs and expenses: Instructional costs and 107,281 82,500 services^(1) Admissions advisory and 57,543 90,042 marketing^(1) General and 19,375 25,542 administrative^(1) Total costs and 184,199 198,084 expenses Operating income 37,785 52,353 Other income, net 818 683 Income before income 38,603 53,036 taxes Income tax expense 15,131 19,995 Net income $ 23,472 $ 33,041 Earnings per common share: Basic $ 0.43 $ 0.64 Diluted 0.43 0.59 Weighted average number of common shares outstanding used in computing earnings per common share: Basic 54,129 52,008 Diluted 55,001 56,203 (1) Effective in the fourth quarter of 2012, the Company made changes in the presentation of its operating expenses. The Company has reclassified prior periods to conform to the new presentation. The Company determined that these changes would better reflect industry practices and would provide more meaningful information as well as increased transparency to its operations. The Company believes that the reclassification better represents the operational changes and the business initiatives that have been implemented. BRIDGEPOINT EDUCATION, INC. Consolidated Balance Sheets (In thousands, except par value) (Unaudited) As of As of March 31, 2013 December 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 316,627 $ 255,965 Investments 111,838 136,967 Accounts receivable, net 70,967 75,177 Deferred income taxes 8,262 8,228 Prepaid expenses and other current assets 21,445 19,810 Total current assets 529,139 496,147 Property and equipment, net 94,930 95,966 Investments 96,475 121,738 Student loans receivable, net 14,524 15,143 Goodwill and intangibles, net 11,471 10,739 Deferred income taxes 13,262 13,266 Other long-term assets 2,206 2,330 Total assets $ 762,007 $ 755,329 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,901 $ 4,588 Accrued liabilities 54,574 44,640 Deferred revenue and student deposits 140,969 175,057 Total current liabilities 202,444 224,285 Rent liability 25,798 25,173 Other long-term liabilities 10,603 9,759 Total liabilities 238,845 259,217 Total stockholders' equity 523,162 496,112 Total liabilities and stockholders' equity $ 762,007 $ 755,329 BRIDGEPOINT EDUCATION, INC. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2013 2012 Cash flows from operating activities Net income $ 23,472 $ 33,041 Adjustments to reconcile net income to net cash provided by operating activities: Provision for bad debts 23,928 14,945 Depreciation and amortization 4,831 4,095 Amortization of premium/discount 1,005 1,754 Stock-based compensation 3,623 2,497 Excess tax benefit of option exercises — (3,588) Changes in operating assets and liabilities: Accounts receivable (19,380) (46,053) Prepaid expenses and other current assets (1,635) (459) Student loans receivable 281 (2,399) Other long-term assets 124 1,944 Accounts payable and accrued liabilities 11,986 27,505 Deferred revenue and student deposits (34,088) 3,723 Other liabilities 1,469 3,345 Net cash provided by operating activities 15,616 40,350 Cash flows from investing activities Capital expenditures (2,994) (7,236) Purchases of investments (108) (36,573) Capitalized curriculum development costs (1,369) (1,638) Sales and maturities of investments 49,416 28,923 Net cash provided by (used in) investing 44,945 (16,524) activities Cash flows from financing activities Proceeds from exercise of stock options 101 813 Excess tax benefit of option exercises — 3,588 Net cash provided by financing activities 101 4,401 Net increase in cash and cash equivalents 60,662 28,227 Cash and cash equivalents at beginning of period 255,965 133,921 Cash and cash equivalents at end of period $ 316,627 $ 162,148 Contact: Paul Goodson, Associate Vice President, Investor Relations (866) 475-0317 x2271 email@example.com SOURCE Bridgepoint Education Website: http://www.bridgepointeducation.com
Bridgepoint Education Reports First Quarter 2013 Results
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