Bridgepoint Education Reports Fourth Quarter and Full Year 2017 Results
SAN DIEGO, Feb. 21, 2018 /PRNewswire/ -- Bridgepoint Education, Inc. (NYSE:BPI), a provider of postsecondary education services, today announced the results for its fourth quarter and full year ended December 31, 2017.
Financial Results for the Three Months Ended December 31, 2017
Revenue for the three months ended December 31, 2017 was $105.0 million, compared with revenue of $119.5 million for the three months ended December 31, 2016.
Operating loss for the three months ended December 31, 2017 was $6.5 million, compared with operating loss of $18.5 million for the three months ended December 31, 2016.
The Company recognized an income tax benefit of $0.5 million for the three months ended December 31, 2017, compared with income tax benefit of $4.3 million for the three months ended December 31, 2016.
Net loss for the three months ended December 31, 2017 was $5.7 million, compared with net loss of $13.8 million for the three months ended December 31, 2016.
Diluted loss per share for the three months ended December 31, 2017 was $0.20, compared with diluted loss per share of $0.30 for the three months ended December 31, 2016.
Non-GAAP Financial Results for the Three Months Ended December 31, 2017
Non-GAAP operating loss for the three months ended December 31, 2017 was $4.8 million, compared with non-GAAP operating loss of $1.8 million for the three months ended December 31, 2016. Non-GAAP operating loss for the three months ended December 31, 2017 excludes a legal settlement expense of $1.8 million and a reversal of restructuring and impairment charges of $0.1 million. Non-GAAP operating loss for the three months ended December 31, 2016 excludes a legal settlement expense of $0.2 million and restructuring and impairment charges of $16.5 million.
Non-GAAP net loss for the three months ended December 31, 2017 was $4.4 million, compared with non-GAAP net loss of $0.7 million for the three months ended December 31, 2016. Non-GAAP net loss for the three months ended December 31, 2017 excludes a legal settlement expense of $1.8 million, as well as a reversal of restructuring and impairment charges of $0.1 million and the related tax effect. Non-GAAP net loss for the three months ended December 31, 2016 excludes a legal settlement expense of $0.2 million and restructuring and impairment charges of $16.5 million and the related tax effect.
Non-GAAP diluted loss per share for the three months ended December 31, 2017 was $0.16, compared with non-GAAP diluted loss per share of $0.01 for the three months ended December 31, 2016.
Financial Results for the Year Ended December 31, 2017
Revenue for the year ended December 31, 2017 was $478.4 million, compared with revenue of $527.1 million for the year ended December 31, 2016.
Operating income for the year ended December 31, 2017 was $7.9 million, compared with operating loss of $40.2 million for the year ended December 31, 2016.
The Company recognized an income tax benefit of $1.2 million for the year ended December 31, 2017, compared with income tax benefit of $7.9 million for the year ended December 31, 2016.
Net income for the year ended December 31, 2017 was $10.5 million, compared with net loss of $30.0 million for the year ended December 31, 2016.
Diluted income per share for the year ended December 31, 2017 was $0.32, compared with diluted loss per share of $0.65 for the year ended December 31, 2016.
Non-GAAP Financial Results for the Year Ended December 31, 2017
Non-GAAP operating income for the year ended December 31, 2017 was $17.6 million, compared with non-GAAP operating income of $12.1 million for the year ended December 31, 2016. Non-GAAP operating income for the year ended December 31, 2017 excludes a legal settlement expense of $1.8 million and restructuring and impairment charges of $7.9 million. Non-GAAP operating income for the year ended December 31, 2016 excludes a legal settlement expense of $33.1 million and restructuring and impairment charges of $19.3 million.
Non-GAAP net income for the year ended December 31, 2017 was $19.2 million, compared with non-GAAP net income of $8.4 million for the year ended December 31, 2016. Non-GAAP net income for the year ended December 31, 2017 excludes a legal settlement expense of $1.8 million, as well as restructuring and impairment charges of $7.9 million and the related tax effect. Non-GAAP net income for the year ended December 31, 2016 excludes a legal settlement expense of $33.1 million and restructuring and impairment charges of $19.3 million and the related tax effect.
Non-GAAP diluted income per share for the year ended December 31, 2017 was $0.59, compared with non-GAAP diluted income per share of $0.18 for the year ended December 31, 2016.
Balance Sheet and Cash Flow
As of December 31, 2017, the Company had combined cash, cash equivalents and investments of $187.2 million, compared with cash, cash equivalents and investments of $357.2 million as of December 31, 2016.
The Company used $4.1 million of cash in operating activities during the year ended December 31, 2017, compared with $11.1 million of cash provided by operating activities during the year ended December 31, 2016.
Student Enrollment
Total student enrollment at the Company's academic institutions, Ashford University and University of the Rockies, was 40,730 at December 31, 2017, compared with total student enrollment of 45,087 at December 31, 2016.
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 a legal settlement expense, 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 and webcast at 5:00 p.m. ET (2:00 p.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) 859-7412, and the dial-in number for other callers is (832) 900-4623. The access code for all callers is 8098438. 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 March 23, 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. The access code for all callers is 8098438.
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 2018 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, 2017 to be filed with the SEC, 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.
BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Income (Loss)
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
---- ---- ---- ----
Revenue $104,959 $119,535 $478,397 $527,090
Costs and expenses:
Instructional costs and
services 55,305 63,769 237,248 263,898
Admissions advisory and
marketing 43,256 45,408 175,389 202,206
General and
administrative 10,362 12,134 47,381 48,843
Legal settlement expense 1,845 170 1,845 33,088
Restructuring and
impairment charges 678 16,510 8,682 19,276
--- ------ ----- ------
Total costs and expenses 111,446 137,991 470,545 567,311
Operating income (loss) (6,487) (18,456) 7,852 (40,221)
Other income, net 346 414 1,511 2,306
Income (loss) before
income taxes (6,141) (18,042) 9,363 (37,915)
Income tax benefit (456) (4,253) (1,174) (7,875)
Net income (loss) $(5,685) $(13,789) $10,537 $(30,040)
======= ======== ======= ========
Income (loss) per share:
Basic $(0.20) $(0.30) $0.33 $(0.65)
Diluted $(0.20) $(0.30) $0.32 $(0.65)
Weighted average number of common shares
outstanding used in computing income
(loss) per share:
Basic 28,275 46,373 32,058 46,228
Diluted 28,275 46,373 32,794 46,228
BRIDGEPOINT EDUCATION, INC.
Consolidated Balance Sheets
(In thousands, except par value)
As of December 31,
2017 2016
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $185,098 $307,802
Restricted cash 20,428 24,533
Investments 2,065 49,434
Accounts receivable,
net 27,077 26,457
Prepaid expenses and
other current
assets 22,388 23,467
------ ------
Total current assets 257,056 431,693
Property and
equipment, net 10,434 12,218
Goodwill and
intangibles, net 14,593 17,419
Other long-term
assets 5,456 2,046
----- -----
Total assets $287,539 $463,376
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $71,165 $77,866
Deferred revenue and
student deposits 68,207 74,666
------
Total current
liabilities 139,372 152,532
Rent liability 7,001 16,508
Other long-term
liabilities 12,708 13,630
------ ------
Total liabilities 159,081 182,670
Total stockholders'
equity 128,458 280,706
------- -------
Total liabilities
and stockholders'
equity $287,539 $463,376
======== ========
BRIDGEPOINT EDUCATION, INC.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2017 2016
---- ----
Cash flows from operating activities
Net income (loss) $10,537 $(30,040)
Adjustments to reconcile net income (loss) to net
cash (used in) provided by operating activities:
Provision for bad debts 32,151 32,583
Depreciation and amortization 8,863 13,082
Amortization of premium/discount 20 68
Deferred income taxes (600) 28
Stock-based compensation 3,632 7,317
Loss on impairment of student
loans receivable - 7,542
Net loss (gain) on marketable
securities (274) (164)
Loss on termination of leased
space 5,829 13,244
Loss on disposal or impairment
of fixed assets 864 3,024
Changes in operating assets and liabilities:
Accounts receivable (32,771) (34,790)
Prepaid expenses and other
current assets 280 13,225
Student loans receivable - 876
Other long-term assets (3,066) 3,274
Accounts payable and accrued
liabilities (12,908) 4,778
Deferred revenue and student
deposits (6,460) (14,078)
Other liabilities (10,172) (8,886)
------- ------
Net cash (used in) provided by
operating activities (4,075) 11,083
------ ------
Cash flows from investing activities
Capital expenditures (3,387) (1,925)
Purchases of investments (315) (20,260)
Capitalized costs for intangible
assets (553) (830)
Sales of investments 214 -
Maturities of investments 47,725 37,756
------ ------
Net cash provided by investing
activities 43,684 14,741
------ ------
Cash flows from financing activities
Proceeds from exercise of stock
options 3,848 1,331
Proceeds from the issuance of
stock under employee stock
purchase plan 289 246
Tax withholding on issuance of
stock awards (1,860) (1,896)
Repurchase of common stock (168,695) -
-------- ---
Net cash used in financing
activities (166,418) (319)
-------- ----
Net (decrease) increase in cash,
cash equivalents and restricted
cash (126,809) 25,505
Cash, cash equivalents and
restricted cash at beginning of
period 332,335 306,830
-------
Cash, cash equivalents and
restricted cash at end of
period $205,526 $332,335
======== ========
BRIDGEPOINT EDUCATION, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2017 2016 2017 2016
---- ---- ---- ----
Operating Income (Loss) Reconciliation:
GAAP operating income
(loss) $(6,487) $(18,456) $7,852 $(40,221)
Legal settlement expense 1,845 170 1,845 33,088
Restructuring and
impairment charges (120) 16,510 7,884 19,276
---- ------ ----- ------
Non-GAAP operating
income (loss) $(4,762) $(1,776) $17,581 $12,143
======= ======= ======= =======
Net Income (Loss) Reconciliation:
GAAP net income (loss) $(5,685) $(13,789) $10,537 $(30,040)
Legal settlement expense 1,845 170 1,845 33,088
Restructuring and
impairment charges (120) 16,510 7,884 19,276
Income tax impact (444) (3,566) (1,034) (13,973)
Non-GAAP net income
(loss) $(4,404) $(675) $19,232 $8,351
======= ===== ======= ======
Diluted Income (Loss) Per Share
Reconciliation:
GAAP diluted income
(loss) per share $(0.20) $(0.30) $0.32 $(0.65)
Legal settlement expense 0.07 0.01 0.06 0.71
Restructuring and
impairment charges (0.01) 0.35 0.24 0.42
Income tax impact (0.02) (0.07) (0.03) (0.30)
Non-GAAP diluted income
(loss) per share $(0.16) $(0.01) $0.59 $0.18
====== ====== ===== =====
Contact: Anna Davison, Investor Relations
866.475.0317 x11620
investorrelations@bridgepointeducation.com
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SOURCE Bridgepoint Education
