Bridgepoint Education Reports Second Quarter 2016 Results

Revenue for the three months ended June 30, 2016 was $138.0 million, compared with revenue of $147.1 million for the three months ended June 30, 2015.

Operating income for the three months ended June 30, 2016 was $3.4 million, compared with operating loss of $0.5 million for the three months ended June 30, 2015.

Net income for the three months ended June 30, 2016 was $3.3 million, compared with net loss of $0.7 million for the three months ended June 30, 2015.

Diluted earnings per share for the three months ended June 30, 2016 was $0.07, compared with diluted loss per share of $0.01 for the three months ended June 30, 2015.

The Company recognized income tax expense of $0.7 million for the three months ended June 30, 2016, compared with income tax expense of $0.5 million for the three months ended June 30, 2015.

Non-GAAP Financial Results for the Three Months Ended June 30, 2016

Non-GAAP operating income for the three months ended June 30, 2016 was $7.3 million, compared with non-GAAP operating income of $13.9 million for the three months ended June 30, 2015. Non-GAAP operating income for the three months ended June 30, 2016 excludes a legal charge of $2.3 million and restructuring and impairment charges of $1.7 million.

Non-GAAP net income for the three months ended June 30, 2016 was $5.8 million, compared with non-GAAP net income of $8.4 million for the three months ended June 30, 2015. Non-GAAP net income for the three months ended June 30, 2016 excludes the $2.3 million legal charge referred to above, restructuring and impairment charges of $1.7 million and a tax benefit of $1.6 million.

Non-GAAP diluted earnings per share for the three months ended June 30, 2016 was $0.12, compared with non-GAAP diluted earnings per share of $0.18 for the three months ended June 30, 2015.

Financial Results for the Six Months Ended June 30, 2016

Revenue for the six months ended June 30, 2016 was $271.0 million, compared with revenue of $289.6 million for the six months ended June 30, 2015.

Operating loss for the six months ended June 30, 2016 was $12.9 million, compared with operating loss of $1.7 million for the six months ended June 30, 2015.

Net loss for the six months ended June 30, 2016 was $6.8 million, compared with net loss of $1.0 million for the six months ended June 30, 2015.

Diluted loss per share for the six months ended June 30, 2016 was $0.15, compared with diluted loss per share of $0.02 for the six months ended June 30, 2015.

The Company recognized income tax benefit of $4.8 million for the six months ended June 30, 2016, compared with income tax expense of $0.3 million for the six months ended June 30, 2015.

Non-GAAP Financial Results for the Six Months Ended June 30, 2016

Non-GAAP operating income for the six months ended June 30, 2016 was $5.6 million, compared with non-GAAP operating income of $12.7 million for the six months ended June 30, 2015. Non-GAAP operating income for the six months ended June 30, 2016 excludes a legal charge of $16.2 million and restructuring and impairment charges of $2.4 million.

Non-GAAP net income for the six months ended June 30, 2016 was $4.8 million, compared with non-GAAP net income of $8.0 million for the six months ended June 30, 2015. Non-GAAP net income for the six months ended June 30, 2016 excludes the $16.2 million legal charge referred to above, restructuring and impairment charges of $2.4 million and a tax benefit amount of $7.0 million.

Non-GAAP diluted earnings per share for the six months ended June 30, 2016 was $0.10, compared with non-GAAP diluted earnings per share of $0.18 for the six months ended June 30, 2015.

Balance Sheet and Cash Flow

As of June 30, 2016, the Company had cash and cash equivalents, restricted cash and investments of $367.3 million, compared with cash and cash equivalents, restricted cash and investments of $374.0 million as of December 31, 2015. 

The Company used $0.7 million of cash for operating activities during the six months ended June 30, 2016, compared with $14.8 million of cash provided by operating activities during the six months ended June 30, 2015.

Student Enrollment

Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 48,895 students at June 30, 2016, compared with total student enrollment of 51,049 at June 30, 2015.

As of June 30, 2016, the 12-month retention for all Ashford students who were active on the last day of the second quarter of 2015 was 62.5%. As of June 30, 2015, the 12-month retention for all Ashford students who were active on the last day of the second quarter of 2014 was 62.7%.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for non-GAAP operating income, non-GAAP net income and non-GAAP diluted earnings per share, which exclude our legal charge, restructuring and impairment charges, and certain income tax adjustments, as applicable. These non-GAAP financial measures are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and are not based on a comprehensive set of accounting rules. Management believes non-GAAP financial measures are useful in providing investors with an understanding of how specific line items in the consolidated statements of income are affected by items that may not be indicative of the operating results of the Company's core business. To the extent that other companies use similar methods in calculating and reporting non-GAAP operating results, the Company believes provision of supplemental non-GAAP financial information allows for a meaningful comparison of the Company's performance against the performance of other companies. The Company further believes that these non-GAAP financial measures provide useful information regarding its ongoing operating activities and business trends related to its results of operations, as well as a meaningful comparison with historical financial results. The Company's management and board of directors utilize these non-GAAP financial measures, together with the Company's financial statements prepared in accordance with GAAP, in developing operating budgets and evaluating the Company's performance. These non-GAAP financial measures are intended to supplement GAAP financial information, and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Refer to the accompanying tables for a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Earnings Conference Call and Webcast

Bridgepoint Education will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Standard Time) today to discuss its latest financial results and recent highlights. The dial-in number for callers in the United States and Canada is 866-859-7412, and the dial-in number for other callers is 832-900-4623. The access code for all callers is 53468218. A live broadcast of the call will also be available on the Company's website at http://ir.bridgepointeducation.com.

A replay of the call will be available via telephone through September 2, 2016. To access the replay, callers in the United States and Canada should dial 855-859-2056 and other callers should dial 404-537-3406, and enter the access code 53468218.

About Bridgepoint Education

Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest technology to reimagine the modern student experience. Bridgepoint owns two academic institutions - Ashford University and University of the Rockies. Together, these programs, technologies, and resources represent a unique model for advancing education in the 21st century. Bridgepoint stands for greater access, social learning, and exposure to leading minds. For more information, visit www.bridgepointeducation.com or www.facebook.com/BridgepointEducation.

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 outlook for 2016 and beyond. These forward-looking 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, 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 or legal 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 Company's filings with the Securities and Exchange Commission (SEC), including, but not limited to, the Company's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 8, 2016, the Company's quarterly reports on Form 10-Q and the Company's current reports on Form 8-K. 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, expectations and assumptions regarding future events based on information available at the time such statements are made.  Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update or revise any forward-looking statements to reflect actual results or any changes in assumptions, expectations or other factors affecting such forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable securities laws.

Contact: Kevin Royal, Chief Financial Officer
866.475.0317 x11120
[email protected]

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SOURCE Bridgepoint Education

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