SAN DIEGO, March 12, 2019
/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, 2018
(which reflect the amended and restated results for its third
quarter of 2018 as filed with the SEC on March 12, 2019 in its amended Form 10-Q for such
period).
Financial Results for the Three Months Ended
December 31, 2018
Revenue for the three months ended December 31, 2018 was
$94.7 million, compared with revenue
of $105.1 million for the three
months ended December 31, 2017.
Operating loss for the three months ended December 31, 2018
was $13.6 million, compared with
operating loss of $5.9 million for
the three months ended December 31, 2017.
The Company recognized an income tax benefit of approximately
$35,000 for the three months ended
December 31, 2018, compared with income tax benefit of
$0.5 million for the three months
ended December 31, 2017.
Net loss for the three months ended December 31, 2018 was
$13.4 million, compared with net loss
of $5.1 million for the three months
ended December 31, 2017.
Diluted loss per share for the three months ended
December 31, 2018 was $0.49,
compared with diluted loss per share of $0.18 for the three months ended
December 31, 2017.
Non-GAAP Financial Results for the Three Months Ended
December 31, 2018
Non-GAAP operating loss for the three months ended
December 31, 2018 was $6.4
million, compared with non-GAAP operating loss of
$4.2 million for the three months
ended December 31, 2017. Non-GAAP operating loss for the three
months ended December 31, 2018 excludes separation transaction
costs of $3.2 million, and
restructuring and impairment charges of $4.0
million. 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 net loss for the three months ended December 31,
2018 was $6.2 million, compared with
non-GAAP net loss of $3.9 million for
the three months ended December 31, 2017. Non-GAAP net loss
for the three months ended December 31, 2018 excludes
separation transaction costs of $3.2
million, and restructuring and impairment charges of
$4.0 million, as well as the related
tax effect. Non-GAAP net loss for the three months ended
December 31, 2017 excludes a legal settlement expense of
$1.8 million, a reversal of
restructuring and impairment charges of $0.1
million, and the related tax effects.
Non-GAAP diluted loss per share for the three months ended
December 31, 2018 was $0.23,
compared with non-GAAP diluted loss per share of $0.14 for the three months ended
December 31, 2017.
Financial Results for the Year Ended December 31,
2018
Revenue for the year ended December 31, 2018 was
$443.4 million, compared with revenue
of $475.1 million for the year ended
December 31, 2017.
Operating loss for the year ended December 31, 2018 was
$4.0 million, compared with operating
income of $6.4 million for the year
ended December 31, 2017.
The Company recognized an income tax benefit of $7.6 million for the year ended December 31,
2018, compared with income tax benefit of $1.2 million for the year ended December 31,
2017.
Net income for the year ended December 31, 2018 was
$4.6 million, compared with net
income of $9.1 million for the year
ended December 31, 2017.
Diluted income per share for the year ended December 31,
2018 was $0.17, compared with diluted
income per share of $0.28 for the
year ended December 31, 2017.
Non-GAAP Financial Results for the Year Ended
December 31, 2018
Non-GAAP operating income for the year ended December 31,
2018 was $12.0 million, compared with
non-GAAP operating income of $16.2
million for the year ended December 31, 2017. Non-GAAP
operating income for the year ended December 31, 2018 excludes
a legal settlement expense of $0.1
million, separation transaction costs of $8.1 million and restructuring and impairment
charges of $7.8 million. 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 net income for the year ended December 31, 2018
was $13.0 million, compared with
non-GAAP net income of $17.8 million
for the year ended December 31, 2017. Non-GAAP net income for
the year ended December 31, 2018 excludes a legal settlement
expense of $0.1 million, separation
transaction costs of $8.1 million,
and restructuring and impairment charges of $7.8 million as well as the related tax effect.
Non-GAAP net income for the year ended December 31, 2017
excludes a legal settlement expense of $1.8
million, restructuring and impairment charges of
$7.9 million, and the related tax
effects.
Non-GAAP diluted income per share for the year ended
December 31, 2018 was $0.47,
compared with non-GAAP diluted income per share of $0.55 for the year ended December 31, 2017.
Balance Sheet and Cash Flow
As of December 31, 2018, the Company had combined cash,
cash equivalents, restricted cash (both current and long-term) and
investments of $192.7 million,
compared with cash, cash equivalents, restricted cash and
investments of $207.6 million as of
December 31, 2017.
The Company used $7.6 million of
cash in operating activities during the year ended
December 31, 2018, compared with $4.1
million of cash used in operating activities during the year
ended December 31, 2017.
Student Enrollment
Total student enrollment at the Company's academic institutions
was 38,153 at December 31, 2018, compared with total student
enrollment of 40,730 at December 31, 2017.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures for
non-GAAP operating income, non-GAAP net income, non-GAAP diluted
income per share, EBITDA and adjusted EBITDA, which exclude a legal
settlement expense, restructuring and impairment charges,
separation transaction costs, 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 and webcast at
5:00 p.m. ET (2:00 p.m. PT) today to discuss its latest
financial results and recent highlights.
Participants can attend a live broadcast of the call at
http://ir.bridgepointeducation.com. Call participants can also dial
(877) 395-6119, or (647) 689-5537 internationally, and provide the
conference ID 2798689. The broadcast of the call will be archived
and available for one year.
About Bridgepoint Education
Bridgepoint Education, Inc. (NYSE:BPI) harnesses the latest
technology to reimagine the modern student experience through
programs, technologies, and resources representing 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.
Contact: Dori Abel, Investor
Relations
866.475.0317 x11611
investorrelations@bridgepointeducation.com
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Statements of Income (Loss)
|
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue
|
$
|
94,713
|
|
|
$
|
105,052
|
|
|
$
|
443,373
|
|
|
$
|
475,113
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Instructional costs
and services
|
51,580
|
|
|
54,858
|
|
|
217,700
|
|
|
235,390
|
|
Admissions advisory
and marketing
|
38,780
|
|
|
43,256
|
|
|
168,751
|
|
|
175,389
|
|
General and
administrative
|
13,952
|
|
|
10,362
|
|
|
52,980
|
|
|
47,381
|
|
Legal settlement
expense
|
—
|
|
|
1,845
|
|
|
141
|
|
|
1,845
|
|
Restructuring and
impairment charges
|
3,999
|
|
|
678
|
|
|
7,794
|
|
|
8,682
|
|
Total costs and
expenses
|
108,311
|
|
|
110,999
|
|
|
447,366
|
|
|
468,687
|
|
Operating income
(loss)
|
(13,598)
|
|
|
(5,947)
|
|
|
(3,993)
|
|
|
6,426
|
|
Other income,
net
|
148
|
|
|
346
|
|
|
1,047
|
|
|
1,511
|
|
Income (loss) before
income taxes
|
(13,450)
|
|
|
(5,601)
|
|
|
(2,946)
|
|
|
7,937
|
|
Income tax
benefit
|
(35)
|
|
|
(456)
|
|
|
(7,582)
|
|
|
(1,174)
|
|
Net income
(loss)
|
$
|
(13,415)
|
|
|
$
|
(5,145)
|
|
|
$
|
4,636
|
|
|
$
|
9,111
|
|
Income (loss) per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.49)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.17
|
|
|
$
|
0.28
|
|
Diluted
|
$
|
(0.49)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.17
|
|
|
$
|
0.28
|
|
Weighted average
number of common shares outstanding used in computing income (loss)
per share:
|
|
|
|
|
|
|
|
Basic
|
27,144
|
|
|
28,275
|
|
|
27,135
|
|
|
32,058
|
|
Diluted
|
27,144
|
|
|
28,275
|
|
|
27,563
|
|
|
32,794
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
As of December
31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
166,307
|
|
|
$
|
185,098
|
|
Restricted
cash
|
18,619
|
|
|
20,428
|
|
Investments
|
2,068
|
|
|
2,065
|
|
Accounts receivable,
net
|
27,015
|
|
|
24,174
|
|
Prepaid expenses and
other current assets
|
18,255
|
|
|
22,388
|
|
Total current
assets
|
232,264
|
|
|
254,153
|
|
Property and
equipment, net
|
16,860
|
|
|
10,434
|
|
Goodwill and
intangibles, net
|
12,441
|
|
|
14,593
|
|
Other long-term
assets
|
7,927
|
|
|
5,456
|
|
Total
assets
|
$
|
269,492
|
|
|
$
|
284,636
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
62,792
|
|
|
$
|
71,165
|
|
Deferred revenue and
student deposits
|
63,834
|
|
|
70,766
|
|
Total current
liabilities
|
126,626
|
|
|
141,931
|
|
Rent
liability
|
3,183
|
|
|
7,001
|
|
Lease financing
obligation
|
8,634
|
|
|
—
|
|
Other long-term
liabilities
|
3,435
|
|
|
12,708
|
|
Total
liabilities
|
141,878
|
|
|
161,640
|
|
Total stockholders'
equity
|
127,614
|
|
|
122,996
|
|
Total liabilities and
stockholders' equity
|
$
|
269,492
|
|
|
$
|
284,636
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
4,636
|
|
|
$
|
9,111
|
|
Adjustments to
reconcile net income to net cash (used in) provided by operating
activities:
|
|
|
|
Provision for bad
debts
|
22,834
|
|
|
30,294
|
|
Depreciation and
amortization
|
6,786
|
|
|
8,863
|
|
Amortization of
premium/discount
|
—
|
|
|
20
|
|
Deferred income
taxes
|
(19)
|
|
|
(600)
|
|
Stock-based
compensation
|
4,787
|
|
|
3,632
|
|
Net loss (gain) on
marketable securities
|
89
|
|
|
(274)
|
|
Loss on termination
of leased space
|
2,943
|
|
|
5,829
|
|
Loss on disposal or
impairment of fixed assets
|
1,406
|
|
|
864
|
|
Loss on impairment of
goodwill and intangibles
|
495
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(27,007)
|
|
|
(30,343)
|
|
Prepaid
expenses and other current assets
|
4,133
|
|
|
280
|
|
Other
long-term assets
|
2,843
|
|
|
(3,066)
|
|
Accounts
payable and accrued liabilities
|
(12,190)
|
|
|
(12,908)
|
|
Deferred
revenue and student deposits
|
(6,598)
|
|
|
(5,605)
|
|
Other
liabilities
|
(12,729)
|
|
|
(10,172)
|
|
Net cash used in
operating activities
|
(7,591)
|
|
|
(4,075)
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(2,581)
|
|
|
(3,387)
|
|
Purchases of
investments
|
(1,067)
|
|
|
(315)
|
|
Capitalized costs for
intangible assets
|
(873)
|
|
|
(553)
|
|
Sales of
investments
|
975
|
|
|
214
|
|
Maturities of
investments
|
—
|
|
|
47,725
|
|
Net cash (used in)
provided by investing activities
|
(3,546)
|
|
|
43,684
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
exercise of stock options
|
455
|
|
|
3,848
|
|
Tax withholdings
related to net exercise of stock options
|
(1,097)
|
|
|
—
|
|
Proceeds from the
issuance of stock under employee stock purchase plan
|
210
|
|
|
289
|
|
Tax withholding on
issuance of stock awards
|
(949)
|
|
|
(1,860)
|
|
Repurchase of common
stock
|
(2,424)
|
|
|
(168,695)
|
|
Net cash used in
financing activities
|
(3,805)
|
|
|
(166,418)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
(14,942)
|
|
|
(126,809)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
205,526
|
|
|
332,335
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
190,584
|
|
|
$
|
205,526
|
|
|
|
|
BRIDGEPOINT
EDUCATION, INC.
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating
Income (Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP operating income
(loss)
|
$
|
(13,598)
|
|
|
$
|
(5,947)
|
|
|
$
|
(3,993)
|
|
|
$
|
6,426
|
|
Legal settlement
expense
|
—
|
|
|
1,845
|
|
|
141
|
|
|
1,845
|
|
Separation
transaction costs
|
3,247
|
|
|
—
|
|
|
8,081
|
|
|
—
|
|
Restructuring and
impairment charges
|
3,999
|
|
|
(120)
|
|
|
7,795
|
|
|
7,884
|
|
Non-GAAP operating
income (loss)
|
$
|
(6,352)
|
|
|
$
|
(4,222)
|
|
|
$
|
12,024
|
|
|
$
|
16,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) Reconciliation:
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(13,415)
|
|
|
$
|
(5,145)
|
|
|
$
|
4,636
|
|
|
$
|
9,111
|
|
Legal settlement
expense
|
—
|
|
|
1,845
|
|
|
141
|
|
|
1,845
|
|
Restructuring and
impairment charges
|
3,999
|
|
|
(120)
|
|
|
7,795
|
|
|
7,884
|
|
Separation
transaction costs
|
3,247
|
|
|
—
|
|
|
8,081
|
|
|
—
|
|
Income tax impact,
non-GAAP
|
(38)
|
|
|
(444)
|
|
|
(7,685)
|
|
|
(1,034)
|
|
Non-GAAP net income
(loss)
|
$
|
(6,207)
|
|
|
$
|
(3,864)
|
|
|
$
|
12,968
|
|
|
$
|
17,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Income
(Loss) Per Share Reconciliation:
|
|
|
|
|
|
|
|
GAAP diluted income
(loss) per share
|
$
|
(0.49)
|
|
|
$
|
(0.18)
|
|
|
$
|
0.17
|
|
|
$
|
0.28
|
|
Legal settlement
expense
|
—
|
|
|
0.07
|
|
|
0.01
|
|
|
0.06
|
|
Restructuring and
impairment charges
|
0.15
|
|
|
(0.01)
|
|
|
0.28
|
|
|
0.24
|
|
Separation
transaction costs
|
0.12
|
|
|
—
|
|
|
0.29
|
|
|
—
|
|
Income tax impact,
non-GAAP
|
(0.01)
|
|
|
(0.02)
|
|
|
(0.28)
|
|
|
(0.03)
|
|
Non-GAAP diluted
income (loss) per share
|
$
|
(0.23)
|
|
|
$
|
(0.14)
|
|
|
$
|
0.47
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA Reconciliation:
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(13,415)
|
|
|
$
|
(5,145)
|
|
|
$
|
4,636
|
|
|
$
|
9,111
|
|
Income tax
benefit
|
(35)
|
|
|
(456)
|
|
|
(7,582)
|
|
|
(1,174)
|
|
Other income
(expense)
|
(310)
|
|
|
(94)
|
|
|
(229)
|
|
|
(301)
|
|
Depreciation and
amortization
|
1,586
|
|
|
2,043
|
|
|
6,786
|
|
|
8,863
|
|
EBITDA
|
(12,174)
|
|
|
(3,652)
|
|
|
3,611
|
|
|
16,499
|
|
Legal settlement
expense
|
—
|
|
|
1,845
|
|
|
141
|
|
|
1,845
|
|
Restructuring and
impairment charges
|
3,999
|
|
|
(120)
|
|
|
7,795
|
|
|
7,884
|
|
Separation
transaction costs
|
3,247
|
|
|
—
|
|
|
8,081
|
|
|
—
|
|
Income tax impact,
non-GAAP
|
(38)
|
|
|
(444)
|
|
|
(7,685)
|
|
|
(1,034)
|
|
Adjusted
EBITDA
|
$
|
(4,966)
|
|
|
$
|
(2,371)
|
|
|
$
|
11,943
|
|
|
$
|
25,194
|
|
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SOURCE Bridgepoint Education