Bridgepoint Education Reports Second Quarter 2013 Results

          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
investorrelations@bridgepointeducation.com

SOURCE Bridgepoint Education, Inc.

Website: http://www.bridgepointeducation.com