Media Room

News Releases

<< [Back to News Releases]

Bridgepoint Education Reports Full Year 2014 Results

Bridgepoint Education, Inc. (NYSE:BPI), a provider of postsecondary education services, announced the results for its fourth quarter and full year ended December 31, 2014.

Bridgepoint Education logo

Highlights for the fourth quarter ended December 31, 2014:

  • Revenue of $147.3 million compared to $162.2 million for the same period in 2013.
  • Operating loss of $10.8 million compared to operating loss of $9.9 million for the same period in 2013.
  • Net loss of $5.2 million compared to net loss of $5.1 million for the same period in 2013.
  • Fully diluted loss per common share of $0.12 compared to fully diluted loss per common share of $0.10 for the same period in 2013.  Included in the fully diluted loss of $0.12 were impairment and severance charges of $14.1 million, which had an after-tax impact of $0.19 on fully diluted earnings per common share.

Highlights for the full year ended December 31, 2014:

  • Total student enrollment was 55,823 compared to 63,624 at December 31, 2013.
  • Revenue of $638.7 million compared to $751.4 million for 2013.
  • Operating income of $14.3 million compared to $68.5 million for 2013.
  • Net income of $9.7 million compared to net income of $45.9 million for 2013.
  • Fully diluted earnings per common share of $0.21 compared to fully diluted earnings per common share of $0.83 for 2013.

"Ashford University's focus in 2014 was to continue implementing and refining its initiatives to strengthen academic quality and enhance the support the University provides students and alumni. These initiatives were successful at producing over 17,000 graduates in 2014 by providing a rigorous and engaging learning experience designed for our working adult population," said Andrew Clark, CEO of Bridgepoint Education.

Student Enrollment

Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 55,823 at December 31, 2014, compared with 63,624 students at December 31, 2013.

Financial Results

Revenue for the fourth quarter of 2014 was $147.3 million, compared with revenue of $162.2 million for the fourth quarter of 2013.  Revenue for the year ended December 31, 2014, was $638.7 million, compared with revenue of $751.4 million for the year ended December 31, 2013.

Operating loss for the fourth quarter of 2014 was $10.8 million compared with operating loss of $9.9 million for the same period in 2013. Operating income for the year ended December 31, 2014, was $14.3 million, compared with $68.5 million for the year ended December 31, 2013.

Net loss for the fourth quarter of 2014 was $5.2 million compared with net loss of $5.1 million for the fourth quarter of 2013.  Net income for the year ended December 31, 2014, was $9.7 million, compared with net income of $45.9 million for the year ended December 31, 2013.

Fully diluted loss per common share for the fourth quarter of 2014 was $0.12 compared with fully diluted loss per common share of $0.10 for the fourth quarter of 2013.  Fully diluted earnings per common share for the year ended December 31, 2014, was $0.21 compared with fully diluted earnings per common share of $0.83 for the year ended December 31, 2013. Included in the fully diluted earnings per common share of $0.21 for the year ended December 31, 2014 were impairment and severance charges of $14.1 million, which had an after-tax impact of $0.19 on fully diluted earnings per common share.

The Company's effective tax rate for the year ended December 31, 2014, was 43.8%.

Balance Sheet and Cash Flow              

As of December 31, 2014, the Company had cash, cash equivalents and investments of $356.5 million, compared with $356.4 million as of December 31, 2013.  The Company generated $25.2 million of cash from operating activities for the year ended December 31, 2014, compared with $85.6 million for the year ended December 31, 2013.

Earnings Conference Call and Webcast

The Company will host a conference call and webcast at 11:30 a.m. ET (8:30 a.m. PT) today to discuss its latest financial results and recent developments. Call participants should dial 866-859-7412 (United States/Canada) or (832) 900-4623 (other countries) and request the Bridgepoint Education call or provide the conference ID 95525667.  A live broadcast of the call will also be available via the Internet at http://ir.bridgepointeducation.com and will be archived on the site for one year.

A telephonic replay will be available at (800) 585-8367 (United States/Canada) or 404-537-3406 (other countries), passcode 95525667.  The replay will be available from Tuesday, March 10, 2015, at 3:00 p.m. (Eastern Time) until April 14, 2015, at 3:00 p.m. (Eastern Time).

About Bridgepoint Education

Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest technology to reimagine the modern student experience. Bridgepoint's technologies, such as Waypoint Outcomes, enhance the way people learn in the digital age. Bridgepoint owns two academic institutions – Ashford University and University of the Rockies. 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 in Iowa and Colorado.  Bridgepoint stands for greater access, social learning, and exposure to leading minds.

For more information, visit www.bridgepointeducation.com, www.facebook.com/BridgepointEducation, or 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, including, without limitation, statements regarding management's intentions, hopes, beliefs or expectations, and statements regarding the Company's 2015 outlook. These statements are subject to risks and uncertainties that could cause the Company's actual performance or results to differ materially from those expressed in or suggested by such statements. Such risks and uncertainties include, without limitation:

  • the failure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act of 1965, as amended, and its regulations, state laws and regulatory requirements, and accrediting agency requirements;
  • adverse administrative, economic, legislative or regulatory changes affecting the Company and its institutions;
  • the imposition of fines or other corrective measures against the Company's institutions;
  • competition in the postsecondary education market and its potential impact on the Company's market share, recruiting costs and tuition rates;
  • reputational and other risks related to potential compliance audits, regulatory actions, negative publicity or service disruptions; and
  • the inability to recruit and retain students or develop new or expanded programs in a timely and cost-effective manner.

Additional information on factors that could affect the Company's performance or results 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 Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 to be filed with the SEC. You should not place undue reliance on any forward-looking statements.  Forward-looking statements are made on the basis of management's good faith beliefs and assumptions regarding future events based on information available at the time the statements are made.  Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable securities laws.

 

BRIDGEPOINT EDUCATION, INC.

Consolidated Statements of Income

(In thousands, except per share amounts)

       
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2014

 

2013

 

2014

 

2013

Revenue

$

147,259

   

$

162,225

   

$

638,705

   

$

751,449

 

Costs and expenses:

                     

Instructional costs and services

81,671

   

90,541

   

321,312

   

370,734

 

Admissions advisory and marketing

58,629

   

55,726

   

236,708

   

235,358

 

General and administrative

17,785

   

25,828

   

66,374

   

76,894

 

Total costs and expenses

158,085

   

172,095

   

624,394

   

682,986

 

Operating income (loss)

(10,826)

   

(9,870)

   

14,311

   

68,463

 

Other income, net

725

   

711

   

2,884

   

3,082

 

Income (loss) before income taxes

(10,101)

   

(9,159)

   

17,195

   

71,545

 

Income tax expense (benefit)

(4,853)

   

(4,050)

   

7,527

   

25,662

 

Net income (loss)

$

(5,248)

   

$

(5,109)

   

$

9,668

   

$

45,883

 

Earnings (loss) per common share:

                     

Basic

$

(0.12)

   

$

(0.10)

   

$

0.21

   

$

0.85

 

Diluted

(0.12)

   

(0.10)

   

0.21

   

0.83

 

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

                     

Basic

45,381

   

53,098

   

45,204

   

53,923

 

Diluted

45,381

   

53,098

   

46,512

   

55,487

 

 

BRIDGEPOINT EDUCATION, INC.

Consolidated Balance Sheets

(In thousands, except par value)

   
 

As of December 31,

 

2014

 

2013

ASSETS

         

Current assets:

         

Cash and cash equivalents

$

207,003

   

$

212,526

 

Restricted cash

25,934

   

36,946

 

Investments

12,051

   

65,901

 

Accounts receivable, net

21,274

   

22,953

 

Student loans receivable, net

1,003

   

1,043

 

Deferred income taxes

21,301

   

16,683

 

Prepaid expenses and other current assets

22,818

   

21,563

 

Total current assets

311,384

   

377,615

 

Property and equipment, net

78,219

   

91,425

 

Investments

111,557

   

41,062

 

Student loans receivable, net

9,510

   

11,785

 

Goodwill and intangibles, net

24,775

   

26,878

 

Deferred income taxes

20,175

   

18,507

 

Other long-term assets

2,475

   

2,740

 

Total assets

$

558,095

   

$

570,012

 

LIABILITIES AND STOCKHOLDERS' EQUITY

         

Current liabilities:

         

Accounts payable

$

1,013

   

$

5,195

 

Accrued liabilities

51,403

   

54,290

 

Deferred revenue and student deposits

108,048

   

132,791

 

Total current liabilities

160,464

   

192,276

 

Rent liability

22,098

   

23,927

 

Other long-term liabilities

9,652

   

9,271

 

Total liabilities

192,214

   

225,474

 

Total stockholders' equity

365,881

   

344,538

 

Total liabilities and stockholders' equity

$

558,095

   

$

570,012

 

 

BRIDGEPOINT EDUCATION, INC.

Consolidated Statements of Cash Flows

(In thousands)

   
 

Year Ended December 31,

 

2014

 

2013

Cash flows from operating activities

         

Net income

$

9,668

   

$

45,883

 

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

         

Provision for bad debts

28,184

   

47,119

 

Depreciation and amortization

23,317

   

21,666

 

Amortization of premium/discount

206

   

2,624

 

Deferred income taxes

(7,096)

   

(6,962)

 

Stock-based compensation

10,558

   

13,934

 

Excess tax benefit of option exercises

(1,271)

   

(2,590)

 

Loss on impairment of student loans receivable

2,435

   

1,998

 

Net gain on marketable securities

(34)

   

(63)

 

Loss on termination of leased space

6,470

   

328

 

Loss on disposal of fixed assets

7,028

   

751

 

Changes in operating assets and liabilities:

         

Restricted cash

11,042

   

10,048

 

Accounts receivable

(27,323)

   

(15,973)

 

Prepaid expenses and other current assets

659

   

(2,607)

 

Student loans receivable

809

   

291

 

Other long-term assets

266

   

(412)

 

Accounts payable and accrued liabilities

(12,102)

   

13,220

 

Deferred revenue and student deposits

(24,411)

   

(41,607)

 

Other liabilities

(3,754)

   

(184)

 

Uncertain tax position

568

   

(1,878)

 

Net cash provided by operating activities

25,219

   

85,586

 

Cash flows from investing activities

         

Capital expenditures

(11,429)

   

(14,825)

 

Purchases of investments

(87,933)

   

(26,759)

 

Restricted cash

(30)

   

 

Capitalized costs for intangible assets

(3,634)

   

(19,563)

 

Sales and maturities of investments

70,000

   

176,343

 

Net cash provided by (used in) investing activities

(33,026)

   

115,196

 

Cash flows from financing activities

         

Proceeds from exercise of stock options

3,108

   

10,464

 

Tax withholdings related to net exercise of stock options

   

(9,170)

 

Excess tax benefit of option exercises

1,271

   

2,590

 

Proceeds from the issuance of stock under employee stock purchase plan

   

1,234

 

Proceeds from the exercise of warrants

   

231

 

Issuance of restricted stock

(2,095)

   

(1,080)

 

Repurchase of common stock

   

(201,496)

 

Net cash provided by (used in) financing activities

2,284

   

(197,227)

 

Net increase (decrease) in cash and cash equivalents

(5,523)

   

3,555

 

Cash and cash equivalents at beginning of period

212,526

   

208,971

 

Cash and cash equivalents at end of period

$

207,003

   

$

212,526

 

Click here for more news >


email Email Page   print Print