Bridgepoint Education Reports Second Quarter 2013 Results PR Newswire SAN DIEGO, Aug. 6, 2013 SAN DIEGO, Aug. 6, 2013 /PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced today its results for the three months ended June30,2013. Highlights for the second quarter ended June30,2013, are as follows: oTotal student enrollment at period end was 71,685. oRevenue was $197.6 million compared with $256.3 million for the same period in 2012. oOperating income was $16.0 million compared with $68.8 million for the same period in 2012. oNet income was $10.4 million compared with $43.3 million for the same period in 2012. oFully diluted earnings per share was $0.19 compared with $0.77 for the same period in 2012. "Over the last year, Bridgepoint Education has made major investments across its entire spectrum of operations, with the goal of enhancing educational quality, improving student outcomes, and supporting the success of our students as they progress toward earning their degrees. These enhancements, together with affordable tuition, strongly position Ashford as a top choice for students seeking a high quality and affordable option for completing their education," said Andrew Clark, CEO of Bridgepoint Education. Student Enrollment Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 71,685 students at June30,2013, compared with 92,620 students at the end of the second quarter of 2012. New student enrollments for the second quarter of 2013 at Bridgepoint Education's academic institutions were approximately 10,600 compared with new student enrollments of approximately 19,300 for the same period in 2012. Financial Results Revenue for the second quarter of 2013 was $197.6 million, compared with revenue of $256.3 million for the same period in 2012. Revenue for the six months ended June 30, 2013, was $419.6 million, compared to $506.7 million for the same period in 2012. Operating income for the second quarter of 2013 was $16.0 million compared with operating income of $68.8 million for the same period in 2012. Operating income for the six months ended June 30, 2013 was $59.4 million compared to $119.4 million for the same period in 2012. Net income for the second quarter of 2013 was $10.4 million compared with net income of $43.3 million for the same period in 2012.Net income for the six months ended June 30, 2013 was $37.3 million compared to $75.2 million for the same period in 2012. Fully diluted earnings per share for the second quarter of 2013 was $0.19 compared with $0.77 for the same period in 2012. Fully diluted earnings per share for the six months ended June 30, 2013, was $0.67 compared with $1.34 for the same period in 2012. The results for the second quarter of 2013 include a pre-tax charge of $5.9 million for severance, which had an impact on second quarter earnings equal to $0.06 per diluted share. The Company's effective tax rate for the second quarter of 2013 was 39.2%. Balance Sheet and Cash Flow As of June30,2013, the Company had cash, cash equivalents and marketable securities of $536.2 million, compared with $514.7 million as of December 31, 2012. The Company generated $32.3 million of cash from operating activities in the six months ended June 30, 2013, compared with $76.8 million for the same period in 2012. Earnings Conference Call and Webcast Bridgepoint Education 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 888-428-9473, and for other callers is 719-325-2463. The access code for all callers is 7760921. A live webcast will also be available on the Company's website at www.bridgepointeducation.com/investorrelations. A replay of the call will be available via telephone through August 14, 2013. To access the replay, dial (888) 203-1112 in the United States / Canada and (719) 457-0820 for other callers; then enter the access code 7760921. 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. 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: othe risk that the results of the Company's investments and related enhancements may be different than currently anticipated; 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 amended on May 17, 2013, and Quarterly Report on Form 10-Q for the quarter ended June 30, 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. Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2013 2012 2013 2012 Revenue $ 197,574 $ 256,302 $ 419,558 $ 506,739 Costs and expenses: Instructional costs and 106,045 85,279 207,691 169,503 services^(1) Admissions advisory and 57,582 87,194 115,125 177,236 marketing^(1) General and 17,919 15,047 37,294 40,589 administrative^(1) Total costs and 181,546 187,520 360,110 387,328 expenses Operating income 16,028 68,782 59,448 119,411 Other income, net 1,031 854 1,849 1,537 Income before income 17,059 69,636 61,297 120,948 taxes Income tax expense 6,691 26,378 23,962 45,719 Net income $ 10,368 $ 43,258 $ 37,335 $ 75,229 Earnings per common share: Basic $ 0.19 $ 0.82 $ 0.69 $ 1.44 Diluted 0.19 0.77 0.67 1.34 Weighted average number of common shares outstanding used in computing earnings percommon share: Basic 54,136 52,531 54,132 52,269 Diluted 55,634 56,233 55,488 56,203 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 (1) 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. Condensed Consolidated Balance Sheets (In thousands, except par value) (Unaudited) As of As of June 30, 2013 December 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 363,121 $ 255,965 Investments 86,810 136,967 Accounts receivable, net 60,502 67,927 Deferred income taxes 11,020 10,936 Prepaid expenses and other current assets 20,294 19,810 Total current assets 541,747 491,605 Property and equipment, net 94,719 95,966 Investments 86,283 121,738 Student loans receivable, net 12,722 15,143 Goodwill and intangibles, net 11,686 10,739 Deferred income taxes 13,306 13,266 Other long-term assets 1,529 2,330 Total assets $ 761,992 $ 750,787 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 7,361 $ 4,588 Accrued liabilities 45,089 44,640 Deferred revenue and student deposits 135,865 175,057 Total current liabilities 188,315 224,285 Rent liability 26,183 25,173 Other long-term liabilities 10,724 9,759 Total liabilities 225,222 259,217 Total stockholders' equity 536,770 491,570 Total liabilities and stockholders' equity $ 761,992 $ 750,787 BRIDGEPOINT EDUCATION, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2013 2012 Cash flows from operating activities Net income $ 37,335 $ 75,229 Adjustments to reconcile net income to net cash provided by operating activities: Provision for bad debts 36,865 33,401 Depreciation and amortization 10,338 8,384 Amortization of premium/discount 3,100 3,594 Deferred income taxes — (2) Stock-based compensation 7,443 6,541 Excess tax benefit of option exercises — (5,625) Loss on impairment of student loans receivable 292 — Changes in operating assets and liabilities: Accounts receivable (28,744) (62,501) Prepaid expenses and other current assets (96) (5,084) Student loans receivable 3 (5,626) Other long-term assets 801 2,071 Accounts payable and accrued liabilities 2,153 18,492 Deferred revenue and student deposits (39,192) 1,987 Other liabilities 1,975 5,945 Net cash provided by operating activities 32,273 76,806 Cash flows from investing activities Capital expenditures (6,778) (14,957) Purchases of investments (26,689) (108,354) Restricted cash — 25 Capitalized curriculum development costs (2,353) (2,935) Sales and maturities of investments 109,916 88,189 Net cash provided by (used in) investing activities 74,096 (38,032) Cash flows from financing activities Proceeds from exercise of stock options 183 1,396 Excess tax benefit of option exercises — 5,625 Proceeds from the issuance of stock under employee 604 707 stock purchase plan Proceeds from the exercise of warrants — 2 Net cash provided by financing activities 787 7,730 Net increase in cash and cash equivalents 107,156 46,504 Cash and cash equivalents at beginning of period 255,965 133,921 Cash and cash equivalents at end of period $ 363,121 $ 180,425 Contact: Paul Goodson, Associate Vice President of Investor Relations 866.475.0317 x2271 firstname.lastname@example.org SOURCE Bridgepoint Education, Inc. Website: http://www.bridgepointeducation.com
Bridgepoint Education Reports Second Quarter 2013 Results
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