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Bridgepoint Education Reports Second Quarter 2012 Results

Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced today its results for the three months ended June 30, 2012.

Highlights for the second quarter ended June 30, 2012, are as follows:

  • Total student enrollment at period end was 92,620.
  • Revenue increased to $256.3 million from $239.9 million for the same period in 2011.
  • Operating income decreased to $75.5 million from $82.5 million for the same period in 2011.
  • Net income was $47.5 million compared with $52.1 million for the same period in 2011.
  • Fully diluted earnings per share was $0.84 compared with $0.90 for the same period in 2011.

Student Enrollment

Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 92,620 students at June 30, 2012, compared with 84,545 students at the end of the second quarter of 2011.

New student enrollments for the second quarter of 2012 at Bridgepoint Education's academic institutions were approximately 19,300 compared with new student enrollments of approximately 19,050 for the same period in 2011.

Financial Results

Revenue for the second quarter of 2012 was $256.3 million, compared with revenue of $239.9 million for the same period in 2011.  Revenue for the six months ended June 30, 2012, was $506.7 million, compared to $469.3 million for the same period in 2011.

Operating income for the second quarter of 2012 was $75.5 million compared with operating income of $82.5 million for the same period in 2011. Operating income for the six months ended June 30, 2012 was $127.9 million compared to $168.7 million for the same period in 2011.

Net income for the second quarter of 2012 was $47.5 million compared with net income of $52.1 million for the same period in 2011. Net income for the six months ended June 30, 2012 was $80.5 million compared to $106.1 million for the same period in 2011.

Fully diluted earnings per share for the second quarter of 2012 was $0.84 compared with $0.90 for the same period in 2011. Fully diluted earnings per share for the six months ended June 30, 2012, was $1.43 compared with $1.82 for the same period in 2011.

The Company's effective tax rate for the second quarter of 2012 was 37.9%. 

Balance Sheet and Cash Flow   

As of June 30, 2012, the Company had cash, cash equivalents and marketable securities of $470.6 million, compared with $407.2 million as of December 31, 2011. The Company generated $76.8 million of cash from operating activities in the six months ended June 30, 2012, compared with $116.2 million for the same period in 2011.

Full-Year 2012 Outlook

The Company has elected to suspend, until further notice, its practice of providing full-year financial and operating guidance due to reduced visibility arising from recent regulatory developments.

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 (866) 575-6537 and for international callers is (913) 312-0383. The access code for all callers is 7081492. 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, 2011. To access the replay, dial (888) 203-1112 in the United States / Canada and (719) 457-0820 outside the United States; then enter the access code 7081492.

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 accredited 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.

 

BRIDGEPOINT EDUCATION, INC.

 

Condensed Consolidated Statements of Income

 

(In thousands, except per share amounts)

 

(Unaudited)






Three Months Ended
June 30,


Six Months Ended
June 30,


2012


2011


2012


2011

Revenue

$

256,302



$

239,880



$

506,739



$

469,313


Costs and expenses:








Instructional costs

and services

65,395



62,012



133,870



117,821


Marketing and

promotional

78,608



62,188



158,671



121,154


General and

administrative

36,763



33,131



86,309



61,677


Total costs and expenses

180,766



157,331



378,850



300,652


Operating income

75,536



82,549



127,889



168,661


Other income, net

854



657



1,537



1,330


Income before income taxes

76,390



83,206



129,426



169,991


Income tax expense

28,932



31,057



48,927



63,923


Net income

$

47,458



$

52,149



$

80,499



$

106,068


Earnings per share:








Basic

$

0.90



$

0.99



$

1.54



$

2.00


Diluted

0.84



0.90



1.43



1.82


Weighted average number of common shares outstanding used in computing earnings per share:








Basic

52,531



52,911



52,269



52,943


Diluted

56,233



57,939



56,203



58,253



 

 

BRIDGEPOINT EDUCATION, INC.

 

Condensed Consolidated Balance Sheets

 

(In thousands)

 

(Unaudited)






As of
June 30, 2012


As of
December 31, 2011

ASSETS




Current assets:




Cash and cash equivalents

$

180,425



$

133,921


Restricted cash



25


Investments

159,792



153,779


Accounts receivable, net

99,617



62,156


Deferred income taxes

5,442



5,429


Prepaid expenses and other current assets

22,966



17,199


Total current assets

468,242



372,509


Property and equipment, net

95,395



89,667


Investments

130,398



119,507


Student loans receivable, net

14,998



9,255


Goodwill and intangibles, net

9,364



7,037


Deferred income taxes

10,810



11,200


Other long-term assets

2,390



4,461


Total assets

$

731,597



$

613,636


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

5,929



$

8,961


Accrued liabilities

57,858



40,205


Deferred revenue and student deposits

187,433



185,446


Total current liabilities

251,220



234,612


Rent liability

22,238



16,595


Other long-term liabilities

9,083



8,781


Total liabilities

282,541



259,988


Total stockholders' equity

449,056



353,648


Total liabilities and stockholders' equity

$

731,597



$

613,636



 

BRIDGEPOINT EDUCATION, INC.

 

Condensed Consolidated Statements of Cash Flows

 

(In thousands)

 

(Unaudited)




Six Months Ended
June 30,


2012


2011

Cash flows from operating activities




Net income

$

80,499



$

106,068


Adjustments to reconcile net income to net cash provided by operating activities:




Provision for bad debts

24,923



23,614


Depreciation and amortization

8,384



5,572


Amortization of premium/discount

3,594



1,380


Deferred income taxes

(2)




Stock-based compensation

6,541



4,796


Excess tax benefit of option exercises

(5,625)



(10,365)


Loss on disposal of fixed assets



11


Changes in operating assets and liabilities:




Accounts receivable

(62,501)



(43,539)


Prepaid expenses and other current assets

(5,084)



360


Student loans receivable

(5,626)



(1,332)


Other long-term assets

2,071



(122)


Accounts payable and accrued liabilities

21,700



19,276


Deferred revenue and student deposits

1,987



7,154


Other liabilities

5,945



3,292


Net cash provided by operating activities

76,806



116,165


Cash flows from investing activities




Capital expenditures

(14,957)



(12,477)


Purchases of investments

(108,354)



(114,115)


Restricted cash

25




Capitalized curriculum development costs

(2,935)



(1,333)


Sales and maturities of investments

88,189



75,500


Net cash used in investing activities

(38,032)



(52,425)


Cash flows from financing activities




Proceeds from the exercise of stock options

1,396



3,577


Excess tax benefit of option exercises

5,625



10,365


Proceeds from the issuance of stock under employee stock purchase plan

707



642


Proceeds from the exercise of warrants

2



79


Repurchase of common stock



(56,426)


Net cash provided by (used in) financing activities

7,730



(41,763)


Net increase in cash and cash equivalents

46,504



21,977


Cash and cash equivalents at beginning of period

133,921



188,518


Cash and cash equivalents at end of period

$

180,425



$

210,495


 

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