Bridgepoint Education Reports First Quarter 2013 Results

           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
investorrelations@bridgepointeducation.com

SOURCE Bridgepoint Education

Website: http://www.bridgepointeducation.com
 
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