Bridgepoint Education Reports Second Quarter 2012 Results

News provided by

Bridgepoint Education

Aug 07, 2012, 07:00 ET

SAN DIEGO, Aug. 7, 2012 /PRNewswire/ -- 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

Contact: Paul Goodson, Associate Vice President of Investor Relations
866.475.0317 x2271
[email protected]

SOURCE Bridgepoint Education

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED