Bridgepoint Education Reports Second Quarter 2018 Results

SAN DIEGO, July 25, 2018 /PRNewswire/ -- Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, today announced its results for the three and six months ended June 30, 2018.

Financial Results for the Three Months Ended June 30, 2018

Revenue for the three months ended June 30, 2018 was $120.8 million, compared with revenue of $124.6 million for the three months ended June 30, 2017.

Operating income for the three months ended June 30, 2018 was $11.6 million, compared with operating income of $6.2 million for the three months ended June 30, 2017.

Net income for the three months ended June 30, 2018 was $17.2 million, compared with net income of $6.3 million for the three months ended June 30, 2017.

Diluted income per share for the three months ended June 30, 2018 was $0.63, compared with diluted income per share of $0.21 for the three months ended June 30, 2017.

The Company recognized an income tax benefit of $5.4 million for the three months ended June 30, 2018, compared with an income tax expense of $0.2 million for the three months ended June 30, 2017.

Non-GAAP Financial Results for the Three Months Ended June 30, 2018

Non-GAAP operating income for the three months ended June 30, 2018 was $14.4 million, compared with non-GAAP operating income of $6.2 million for the three months ended June 30, 2017. Non-GAAP operating income for the three months ended June 30, 2018 excludes a legal settlement charge of $0.1 million, as well as restructuring and impairment expenses of $2.7 million. There were no such expenses for the three months ended June 30, 2017.

Non-GAAP net income for the three months ended June 30, 2018 was $14.4 million, compared with non-GAAP net income of $6.3 million for the three months ended June 30, 2017. Non-GAAP net income for the three months ended June 30, 2018 excludes a legal settlement charge of $0.1 million, restructuring and impairment expenses of $2.7 million and an income tax benefit of $5.7 million, primarily associated with a non-recurring income tax audit examination settlement. There were no such expenses or tax benefit for the three months ended June 30, 2017.

Non-GAAP diluted income per share for the three months ended June 30, 2018 was $0.53, compared with non-GAAP diluted income per share of $0.21 for the three months ended June 30, 2017.

Financial Results for the Six Months Ended June 30, 2018

Revenue for the six months ended June 30, 2018 was $238.9 million, compared with revenue of $254.1 million for the six months ended June 30, 2017.

Operating income for the six months ended June 30, 2018 was $11.9 million, compared with operating income of $15.8 million for the six months ended June 30, 2017.

Net income for the six months ended June 30, 2018 was $19.5 million, compared with net income of $16.2 million for the six months ended June 30, 2017.

Diluted income per share for the six months ended June 30, 2018 was $0.71, compared with diluted income per share of $0.44 for the six months ended June 30, 2017.

The Company recognized an income tax benefit of $7.1 million for the six months ended June 30, 2018, compared with an income tax expense of $0.4 million for the six months ended June 30, 2017.

Non-GAAP Financial Results for the Six Months Ended June 30, 2018

Non-GAAP operating income for the six months ended June 30, 2018 was $14.7 million, compared with non-GAAP operating income of $15.8 million for the six months ended June 30, 2017. Non-GAAP operating income for the six months ended June 30, 2018 excludes a legal settlement charge of $0.1 million, as well as restructuring and impairment charges of $2.6 million. There were no such expenses for the six months ended June 30, 2017.

Non-GAAP net income for the six months ended June 30, 2018 was $14.8 million, compared with non-GAAP net income of $16.2 million for the six months ended June 30, 2017. Non-GAAP net income for the six months ended June 30, 2018 excludes a legal settlement charge of $0.1 million, restructuring and impairment charges of $2.6 million and an income tax benefit of $7.5 million, primarily associated with a non-recurring income tax audit examination settlement as well as tax deductions for refund claims for qualified production activities. There were no such expenses or tax benefits for the six months ended June 30, 2017.

Non-GAAP diluted income per share for the six months ended June 30, 2018 was $0.54, compared with non-GAAP diluted income per share of $0.44 for the six months ended June 30, 2017.

Balance Sheet and Cash Flow

As of June 30, 2018, the Company had combined cash, cash equivalents and investments of $173.7 million, compared with combined cash, cash equivalents and investments of $187.2 million as of December 31, 2017.

The Company used $9.2 million of cash in operating activities during the six months ended June 30, 2018, compared with $11.5 million of cash used in operating activities during the six months ended June 30, 2017.

Student Enrollment

Total student enrollment at the Company's combined academic institutions was 40,097 students at June 30, 2018, compared with total student enrollment of 43,461 at June 30, 2017.

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 income per share, which exclude restructuring and impairment credits, as well as 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 6997285. 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 August 25, 2018. 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 6997285.

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 which are not statements of historical fact and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding management's intentions, hopes, beliefs or expectations, and statements regarding the Company's outlook for the remainder of 2018 and beyond. These forward-looking statements are based on current information and expectations and are subject to various risks and uncertainties. The Company's actual performance or results may differ materially from those expressed in or suggested by such statements due to various factors, including without limitation: our ability to consummate the proposed merger of University of the Rockies into Ashford University and the conversion of Ashford University into a nonprofit university; the impact of the proposed merger, conversion, and separation of the Company from its academic institutions to focus on online program management; the success of our marketing, technology and new program development initiatives, the success of our Education Partnership programs, the impact of our ongoing cost-reduction initiatives; our ability to comply with the extensive and continually evolving 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; the impact of competition in the postsecondary education market; recruiting costs and tuition rates; reputational and other risks related to potential compliance audits; regulatory or legal actions; negative publicity or service disruptions; and our ability to attract, recruit and retain students or develop new or expanded programs in a timely and cost-effective manner.

Additional information on factors that could cause actual plans implemented and actual results achieved to differ materially from those set forth in the forward-looking statements 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 fiscal year ended December 31, 2017 filed with the SEC on February 21, 2018, the Company's quarterly reports on Form 10-Q and the Company's current reports on Form 8-K which are available at www.bridgepointeducation.com. 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, except to the extent required by applicable securities laws.

SOURCE Bridgepoint Education

Related Links

www.bridgepointeducation.com

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