(Mark One) | |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State or other jurisdiction of incorporation or organization) | 59-3551629 (I.R.S. Employer Identification No.) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
As of June 30, 2011 | As of December 31, 2010 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 210,495 | $ | 188,518 | |||
Restricted cash | 25 | 25 | |||||
Marketable securities | 78,032 | 90,611 | |||||
Accounts receivable, net | 78,685 | 58,415 | |||||
Deferred income taxes | 7,039 | 7,039 | |||||
Prepaid expenses and other current assets | 13,267 | 12,650 | |||||
Total current assets | 387,543 | 357,258 | |||||
Property and equipment, net | 75,500 | 66,542 | |||||
Marketable securities | 68,837 | 20,000 | |||||
Goodwill and intangibles, net | 5,209 | 4,123 | |||||
Deferred income taxes | 15,845 | 15,845 | |||||
Other long-term assets | 8,566 | 7,457 | |||||
Total assets | $ | 561,500 | $ | 471,225 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,081 | $ | 5,076 | |||
Accrued liabilities | 47,618 | 34,895 | |||||
Deferred revenue and student deposits | 180,730 | 173,576 | |||||
Total current liabilities | 231,429 | 213,547 | |||||
Rent liability | 14,191 | 10,910 | |||||
Other long-term liabilities | 8,538 | 8,527 | |||||
Total liabilities | 254,158 | 232,984 | |||||
Commitments and contingencies (see Note 12) | |||||||
Stockholders' equity: | |||||||
Preferred stock, $0.01 par value: | |||||||
20,000 shares authorized; zero shares issued and outstanding at June 30, 2011, and December 31, 2010 | — | — | |||||
Common stock, $0.01 par value: | |||||||
300,000 shares authorized; 57,782 issued and 52,198 outstanding at June 30, 2011; 55,801 issued and 52,799 outstanding at December 31, 2010 | 578 | 558 | |||||
Additional paid-in capital | 120,902 | 101,463 | |||||
Retained earnings | 284,481 | 178,413 | |||||
Treasury stock, 5,584 and 3,002 shares at cost at June 30, 2011, and December 31, 2010, respectively | (98,619 | ) | (42,193 | ) | |||
Total stockholders' equity | 307,342 | 238,241 | |||||
Total liabilities and stockholders' equity | $ | 561,500 | $ | 471,225 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenue | $ | 239,880 | $ | 173,840 | $ | 469,313 | $ | 329,907 | |||||||
Costs and expenses: | |||||||||||||||
Instructional costs and services | 62,012 | 43,257 | 117,821 | 82,693 | |||||||||||
Marketing and promotional | 62,188 | 50,096 | 121,154 | 94,309 | |||||||||||
General and administrative | 33,131 | 21,257 | 61,677 | 43,588 | |||||||||||
Total costs and expenses | 157,331 | 114,610 | 300,652 | 220,590 | |||||||||||
Operating income | 82,549 | 59,230 | 168,661 | 109,317 | |||||||||||
Other income, net | (657 | ) | (370 | ) | (1,330 | ) | (617 | ) | |||||||
Income before income taxes | 83,206 | 59,600 | 169,991 | 109,934 | |||||||||||
Income tax expense | 31,057 | 24,330 | 63,923 | 44,841 | |||||||||||
Net income | $ | 52,149 | $ | 35,270 | $ | 106,068 | $ | 65,093 | |||||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.99 | $ | 0.65 | $ | 2.00 | $ | 1.19 | |||||||
Diluted | $ | 0.90 | $ | 0.58 | $ | 1.82 | $ | 1.07 | |||||||
Weighted average number of common shares outstanding used in computing earnings per common share: | |||||||||||||||
Basic | 52,911 | 54,608 | 52,943 | 54,490 | |||||||||||
Diluted | 57,939 | 60,728 | 58,253 | 60,613 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | |||||||||||||||||||
Shares | Par Value | Total | ||||||||||||||||||||
Balance at December 31, 2010 | 55,801 | $ | 558 | $ | 101,463 | $ | 178,413 | $ | (42,193 | ) | $ | 238,241 | ||||||||||
Stock-based compensation | — | — | 4,796 | — | — | 4,796 | ||||||||||||||||
Exercise of stock options | 1,906 | 20 | 3,557 | — | — | 3,577 | ||||||||||||||||
Excess tax benefit of option exercises | — | — | 10,365 | — | — | 10,365 | ||||||||||||||||
Stock issued under employee stock purchase plan | 36 | — | 642 | — | — | 642 | ||||||||||||||||
Exercise of warrants | 39 | — | 79 | — | — | 79 | ||||||||||||||||
Repurchase of common stock | — | — | — | — | (56,426 | ) | (56,426 | ) | ||||||||||||||
Net income | — | — | — | 106,068 | — | 106,068 | ||||||||||||||||
Balance at June 30, 2011 | 57,782 | $ | 578 | $ | 120,902 | $ | 284,481 | $ | (98,619 | ) | $ | 307,342 |
Six Months Ended June 30, | |||||||
2011 | 2010 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 106,068 | $ | 65,093 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for bad debts | 23,614 | 16,262 | |||||
Depreciation and amortization | 5,572 | 3,776 | |||||
Amortization of premium/discount | 1,380 | (12 | ) | ||||
Deferred income taxes | — | (13 | ) | ||||
Stock-based compensation | 4,796 | 3,681 | |||||
Excess tax benefit of option exercises | (10,365 | ) | (757 | ) | |||
Loss on disposal of fixed assets | 11 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (43,884 | ) | (54,547 | ) | |||
Prepaid expenses and other current assets | 360 | (3,131 | ) | ||||
Other long-term assets | (1,109 | ) | (934 | ) | |||
Accounts payable and accrued liabilities | 19,276 | 7,899 | |||||
Deferred revenue and student deposits | 7,154 | 3,458 | |||||
Other liabilities | 3,292 | 4,638 | |||||
Net cash provided by operating activities | 116,165 | 45,413 | |||||
Cash flows from investing activities | |||||||
Capital expenditures | (12,477 | ) | (12,060 | ) | |||
Purchases of marketable securities | (114,115 | ) | (5,009 | ) | |||
Capitalized curriculum development costs | (1,333 | ) | (259 | ) | |||
Maturities of marketable securities | 75,500 | 30,000 | |||||
Net cash (used in) provided by investing activities | (52,425 | ) | 12,672 | ||||
Cash flows from financing activities | |||||||
Proceeds from the exercise of stock options | 3,577 | 411 | |||||
Excess tax benefit of option exercises | 10,365 | 757 | |||||
Proceeds from the issuance of stock under employee stock purchase plan | 642 | 501 | |||||
Proceeds from the exercise of warrants | 79 | 1,188 | |||||
Repurchase of common stock | (56,426 | ) | — | ||||
Payments of capital lease obligations | — | (634 | ) | ||||
Net cash (used in) provided by financing activities | (41,763 | ) | 2,223 | ||||
Net increase in cash and cash equivalents | 21,977 | 60,308 | |||||
Cash and cash equivalents at beginning of period | 188,518 | 125,562 | |||||
Cash and cash equivalents at end of period | $ | 210,495 | $ | 185,870 | |||
Supplemental disclosure of non-cash transactions: | |||||||
Purchase of equipment included in accounts payable and accrued liabilities | $ | 3,524 | $ | 810 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 52,149 | $ | 35,270 | $ | 106,068 | $ | 65,093 | |||||||
Denominator: | |||||||||||||||
Weighted average number of common shares outstanding | 52,911 | 54,608 | 52,943 | 54,490 | |||||||||||
Effect of dilutive options | 4,756 | 5,814 | 5,031 | 5,754 | |||||||||||
Effect of dilutive warrants | 272 | 306 | 279 | 369 | |||||||||||
Diluted weighted average number of common shares outstanding | 57,939 | 60,728 | 58,253 | 60,613 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic earnings per common share | $ | 0.99 | $ | 0.65 | $ | 2.00 | $ | 1.19 | |||||||
Diluted earnings per common share | $ | 0.90 | $ | 0.58 | $ | 1.82 | $ | 1.07 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(in thousands) | 2011 | 2010 | 2011 | 2010 | |||||||
Options | 1,630 | 296 | 1,085 | 183 | |||||||
Restricted stock units | 2 | — | 1 | — |
As of June 30, 2011 | As of December 31, 2010 | ||||||
Accounts receivable | $ | 105,317 | $ | 86,505 | |||
Less allowance for doubtful accounts | (26,632 | ) | (28,090 | ) | |||
Accounts receivable, net | $ | 78,685 | $ | 58,415 |
Beginning Balance | Charged to Expense | Deductions(1) | Ending Balance | ||||||||||
For the six months ended June 30, 2011 | $ | (28,090 | ) | 23,614 | (25,072 | ) | $ | (26,632 | ) | ||||
For the six months ended June 30, 2010 | $ | (16,171 | ) | 16,262 | (9,669 | ) | $ | (22,764 | ) |
(1) | Deductions represent accounts written off, net of recoveries. |
As of June 30, 2011 | As of December 31, 2010 | ||||||
Prepaid expenses | $ | 6,496 | $ | 4,730 | |||
Prepaid licenses | 1,047 | 1,080 | |||||
Prepaid income taxes | — | 3,526 | |||||
Prepaid insurance | 3,439 | 999 | |||||
Other current assets | 2,285 | 2,315 | |||||
Total prepaid expenses and other current assets | $ | 13,267 | $ | 12,650 |
As of June 30, 2011 | As of December 31, 2010 | ||||||
Land | $ | 7,091 | $ | 7,091 | |||
Buildings | 14,988 | 13,886 | |||||
Furniture, office equipment and software | 59,438 | 47,600 | |||||
Leasehold improvements | 17,389 | 16,094 | |||||
Vehicles | 92 | 53 | |||||
Total property and equipment | 98,998 | 84,724 | |||||
Less accumulated depreciation and amortization | (23,498 | ) | (18,182 | ) | |||
Total property and equipment, net | $ | 75,500 | $ | 66,542 |
As of June 30, 2011 | As of December 31, 2010 | ||||||
Accrued salaries and wages | $ | 11,709 | $ | 10,457 | |||
Accrued bonus | 1,672 | 5,069 | |||||
Accrued vacation | 6,305 | 4,962 | |||||
Accrued expenses | 19,556 | 14,407 | |||||
Accrued income taxes payable | 8,376 | — | |||||
Total accrued liabilities | $ | 47,618 | $ | 34,895 |
As of June 30, 2011 | As of December 31, 2010 | ||||||
Deferred revenue | $ | 58,189 | $ | 41,681 | |||
Student deposits | 122,541 | 131,895 | |||||
Total deferred revenue and student deposits | $ | 180,730 | $ | 173,576 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Demand notes | $ | — | $ | 25,171 | $ | — | $ | 25,171 | |||||||
Corporate notes and bonds | — | 82,098 | — | 82,098 | |||||||||||
Bond fund | 10,111 | — | — | 10,111 | |||||||||||
Certificates of deposit | — | 29,489 | — | 29,489 | |||||||||||
Total | $ | 10,111 | $ | 136,758 | $ | — | $ | 146,869 |
Exercise price per share | $ | 20.21 | |
Risk-free interest rate | 2.2 | % | |
Expected dividend yield | — | ||
Expected volatility | 52.4 | % | |
Expected life (in years) | 6.1 | ||
Grant date fair value per share | $ | 10.40 |
Exercise Price | June 30, 2011 | December 31, 2010 | Expiration Date | |||||
$1.125 | 43 | 51 | 2013 | |||||
$2.250 | 56 | 87 | 2013 | |||||
$2.835 | 172 | 172 | 2013 | |||||
$2.925 | 19 | 19 | 2013 | |||||
$9.000 | 6 | 6 | 2013 | |||||
Total | 296 | 335 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Consolidated Statement of Income Data: | (unaudited) | ||||||||||||||
Revenue | $ | 239,880 | $ | 173,840 | $ | 469,313 | $ | 329,907 | |||||||
Operating Income | $ | 82,549 | $ | 59,230 | $ | 168,661 | $ | 109,317 | |||||||
Consolidated Other Data: | |||||||||||||||
Period end enrollment (1) | |||||||||||||||
Online | 83,817 | 67,206 | 83,817 | 67,206 | |||||||||||
Campus | 728 | 538 | 728 | 538 | |||||||||||
Total | 84,545 | 67,744 | 84,545 | 67,744 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Costs and expenses: | |||||||||||
Instructional costs and services | 25.9 | 24.9 | 25.1 | 25.1 | |||||||
Marketing and promotional | 25.9 | 28.8 | 25.8 | 28.6 | |||||||
General and administrative | 13.8 | 12.2 | 13.2 | 13.2 | |||||||
Total costs and expenses | 65.6 | 65.9 | 64.1 | 66.9 | |||||||
Operating income | 34.4 | 34.1 | 35.9 | 33.1 | |||||||
Other income, net | (0.3 | ) | (0.2 | ) | (0.3 | ) | (0.2 | ) | |||
Income before income taxes | 34.7 | 34.3 | 36.2 | 33.3 | |||||||
Income tax expense | 13.0 | 14.0 | 13.6 | 13.6 | |||||||
Net income | 21.7 | % | 20.3 | % | 22.6 | % | 19.7 | % |
• | Ashford University is located in the State of Iowa and is authorized to offer postsecondary programs in Iowa. The institution is exempt from having to register as a postsecondary school in the State of Iowa. Such exemption may be lost or withdrawn if Ashford University fails to comply with requirements under Iowa law for continued exemption. |
• | The University of the Rockies is located in the State of Colorado and is authorized by the Colorado Commission on Higher Education. Such authorization may be lost or withdrawn if the University of the Rockies fails to comply with requirements under Colorado statutes and rules for continued authorization. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1) | |||||||||
April 1, 2011 through April 30, 2011 | — | $ | — | — | $ | 5,095,960 | |||||||
May 1, 2011 through May 31, 2011 | 719,999 | $ | 21.03 | 719,999 | $ | 64,953,275 | |||||||
June 1, 2011 through June 30, 2011 | 1,168,288 | $ | 24.46 | 1,168,288 | $ | 36,381,068 | |||||||
Total | 1,888,287 | $ | 23.15 | 1,888,287 | $ | 36,381,068 |
(1) | On July 30, 2010, our board of directors authorized the repurchase of up to $60.0 million of our outstanding shares of common stock (the "2010 Repurchase Program"). The 2010 Repurchase Program, which was announced on August 3, 2010, expires 12 months from the date of authorization. On May 2, 2011, our board of directors authorized the repurchase of up to an additional $75.0 million of our outstanding shares of common stock (the "2011 Repurchase Program"). The 2011 Repurchase Program, which was announced on May 3, 2011, expires 12 months from the date of authorization. The 2011 Repurchase Program is in addition to, and not in replacement of, the $60.0 million authorized under the 2010 Repurchase Program. |
Exhibit | Description | |||
3.1 | Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Form 10-Q filed on May 21, 2009). | |||
3.2 | Second Amended and Restated Bylaws (incorporated by reference to Exhibit 3.4 to the Form S-1 filed on March 20, 2009). | |||
4.1 | Specimen of Stock Certificate (incorporated by reference to Exhibit 4.1 to the Form S-1 filed on March 30, 2009). | |||
4.2 | Second Amended and Restated Registration Rights Agreement (incorporated by reference to Exhibit 4.2 to the Form S-1 filed on September 4, 2009). | |||
10.1 | Fourth Amendment to Loan Documents with Comerica Bank, dated May 2, 2011. | |||
10.2 | 2009 Stock Incentive Plan - Form of Restricted Stock Unit Award Agreement (Deferred Settlement) (incorporated by reference to Exhibit 99.1 to the Form 8-K filed June 27, 2011). | |||
10.3 | 2009 Stock Incentive Plan - Form of Restricted Stock Unit Award Agreement (General) (incorporated by reference to Exhibit 99.2 to the Form 8-K filed June 27, 2011). | |||
10.4 | Amendment One to General Services Agreement dated July 14, 2011 between Affiliated Computer Services, Inc. and Ashford University, LLC. | |||
10.5 | Amendment One to General Services Agreement dated July 15, 2011 between Affiliated Computer Services, Inc. and University of the Rockies, LLC. | |||
31.1 | Certification of Andrew S. Clark, President and Chief Executive Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification of Daniel J. Devine, Chief Financial Officer, pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by Andrew S. Clark, President and Chief Executive Officer, and Daniel J. Devine, Chief Financial Officer. | |||
101 | The following financial information from our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, filed with the SEC on August 2, 2011, formatted in Extensible Business Reporting Language ("XBRL"): (i) the Condensed Consolidated Balance Sheets as of June 30, 2011, and December 31, 2010; (ii) the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2011 and 2010; (iii) the Condensed Consolidated Statement of Stockholder's Equity for the six months ended June 30, 2011; (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2011 and 2010; and (v) Notes to Condensed Consolidated Financial Statements.* |
BRIDGEPOINT EDUCATION, INC. | |
August 2, 2011 | /s/ DANIEL J. DEVINE |
Daniel J. Devine Chief Financial Officer (Principal financial officer and duly authorized to sign on behalf of the registrant) |
COMERICA BANK | BRIDGEPOINT EDUCATION, INC., | ||||
a Delaware corporation | |||||
By: | /s/ Dennis Kim | By: | /s/ Daniel J. Devine | ||
Name: | Dennis Kim | Name: | Dan Devine | ||
Title: | Vice President | Title: | Chief Financial Officer | ||
BRIDGEPOINT EDUCATION REAL ESTATE HOLDINGS, LLC, | |||||
an Iowa limited liability company | |||||
By: | Bridgepoint Education, Inc., a Delaware corporation | ||||
Its: | Sole Member | ||||
By: | /s/ Daniel J. Devine | ||||
Name: | Dan Devine | ||||
Title: | Chief Financial Officer | ||||
ASHFORD UNIVERSITY, LLC, | |||||
an Iowa limited liability company | |||||
By: | Bridgepoint Education, Inc., a Delaware corporation | ||||
Its: | Sole Member | ||||
By: | /s/ Daniel J. Devine | ||||
Name: | Dan Devine | ||||
Title: | Chief Financial Officer | ||||
UNIVERSITY OF THE ROCKIES, LLC, | |||||
a Colorado limited liability company | |||||
By: | Bridgepoint Education, Inc., a Delaware corporation | ||||
Its: | Sole Member | ||||
By: | /s/ Daniel J. Devine | ||||
Name: | Dan Devine | ||||
Title: | Chief Financial Officer | ||||
WAYPOINT OUTCOMES, LLC, | |||||
a Delaware limited liability company | |||||
By: | Bridgepoint Education, Inc., a Delaware corporation | ||||
Its: | Sole Member | ||||
By: | /s/ Daniel J. Devine | ||||
Name: | Dan Devine | ||||
Title: | Chief Financial Officer |
Affiliated Computer Services, Inc. | Ashford University, LLC | ||||
By: | /s/ Richard K. Schnacker | By: | /s/ Daniel J. Devine | ||
(Print Name) Richard K. Schnacker | (Print Name) Daniel Devine | ||||
Title: | Group President | Title: | EVP/CFO | ||
Date: | 6/30/2011 | Date: | 7/14/2011 |
Affiliated Computer Services, Inc. | University of the Rockies, LLC | ||||
By: | /s/ Meliss Hankin | By: | /s/ Daniel J. Devine | ||
(Print Name) Meliss Hankin | (Print Name) Daniel Devine | ||||
Title: | Managing Director | Title: | EVP/CFO | ||
Date: | 6/28/2011 | Date: | 7/15/2011 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Bridgepoint Education, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ ANDREW S. CLARK | ||
Andrew S. Clark President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Bridgepoint Education, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DANIEL J. DEVINE | ||
Daniel J. Devine Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"); and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ ANDREW S. CLARK | ||
Andrew S. Clark, President and Chief Executive Officer (Principal Executive Officer) |
/s/ DANIEL J. DEVINE | ||
Daniel J. Devine, Chief Financial Officer (Principal Financial Officer) |
Condensed Consolidated Balance Sheets Parenthetical (USD $)
In Thousands, except Per Share data |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Stockholders' equity: | Â | Â |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 57,782 | 55,801 |
Common stock, shares outstanding | 52,198 | 52,799 |
Treasury stock, shares at cost | 5,584 | 3,002 |
Condensed Consolidated Statements of Income (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2011
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Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
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Revenue | $ 239,880 | $ 173,840 | $ 469,313 | $ 329,907 |
Costs and expenses: | Â | Â | Â | Â |
Instructional costs and services | 62,012 | 43,257 | 117,821 | 82,693 |
Marketing and promotional | 62,188 | 50,096 | 121,154 | 94,309 |
General and administrative | 33,131 | 21,257 | 61,677 | 43,588 |
Total costs and expenses | 157,331 | 114,610 | 300,652 | 220,590 |
Operating income | 82,549 | 59,230 | 168,661 | 109,317 |
Other income, net | (657) | (370) | (1,330) | (617) |
Income before income taxes | 83,206 | 59,600 | 169,991 | 109,934 |
Income tax expense | 31,057 | 24,330 | 63,923 | 44,841 |
Net income | $ 52,149 | $ 35,270 | $ 106,068 | $ 65,093 |
Earnings per common share: | Â | Â | Â | Â |
Basic | $ 0.99 | $ 0.65 | $ 2.00 | $ 1.19 |
Diluted | $ 0.90 | $ 0.58 | $ 1.82 | $ 1.07 |
Weighted average number of common shares outstanding used in computing earnings per common share: | Â | Â | Â | Â |
Basic | 52,911 | 54,608 | 52,943 | 54,490 |
Diluted | 57,939 | 60,728 | 58,253 | 60,613 |
Document and Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jul. 29, 2011
|
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Entity Information [Line Items] | Â | Â |
Entity Registrant Name | BRIDGEPOINT EDUCATION INC | Â |
Entity Central Index Key | 0001305323 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Filer Category | Accelerated Filer | Â |
Document Type | 10-Q | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2011 | Â |
Document Fiscal Period Focus | Q2 | Â |
Amendment Flag | false | Â |
Entity Common Stock, Shares Outstanding | Â | 52,534,873 |
Entity Well-known Seasoned Issuer | No | Â |
Entity Voluntary Filers | No | Â |
Entity Current Reporting Status | Yes | Â |
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Notes Payable and Long-Term Debt
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6 Months Ended |
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Jun. 30, 2011
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Notes Payable and Long Term Debt [Abstract] | Â |
Debt Disclosure [Text Block] | Notes Payable and Long-Term Debt In January 2010, the Company entered into a $50 million revolving line of credit with Comerica Bank ("Comerica") pursuant to a Credit Agreement, Revolving Credit Note and Security Agreement (collectively, the "Loan Documents"). Under the Loan Documents, Comerica has agreed to make loans to the Company and issue letters of credit on the Company's behalf, subject to the terms and conditions of the Loan Documents. Amounts subject to letters of credit issued under the Loan Documents are treated as limitations on available borrowings under the line of credit. Interest is paid monthly under the line of credit, and principal is paid on the maturity date of the line of credit. The line of credit has a two-year term and matures on January 29, 2012. Interest accrues on amounts outstanding under the line of credit, at the Company's option, at either (1) Comerica's prime reference rate + 0.00% or (2) one month, two month or three month LIBOR + 2.25%. As security for the performance of the Company's obligations under the Loan Documents, the Company granted Comerica a first priority security interest in substantially all of the Company's assets, including its real property. The Loan Documents contain financial covenants requiring the Company's educational institutions to maintain Title IV eligibility (see Note 11, "Regulatory") as well as the Company's maintenance of specified adjusted quick ratios, minimum profitability, minimum cash balances and U.S. Department of Education ("Department") financial responsibility composite scores. The Loan Documents contain other customary affirmative and negative covenants (including cash controls, financial reporting covenants and prohibitions on acquisitions, dividends, stock redemptions and other cash expenditures over a specified amount without Comerica's reasonable consent), representations and warranties and events of default (including the occurrence of a "material adverse effect," as defined in the Loan Documents). The Company was in compliance with all financial covenants in the Loan Documents as of June 30, 2011. As of June 30, 2011, the Company used the availability under the line of credit to issue letters of credit aggregating $4.0 million. The Company had no borrowings outstanding under the line of credit as of June 30, 2011. As part of its normal business operations, the Company is required to provide surety bonds in certain states in which the Company does business. In May 2009, the Company entered into a surety bond facility with an insurance company to provide such bonds when applicable. As of June 30, 2011, the total available surety bond facility was $5.0 million and the Company had issued surety bonds totaling $3.3 million. |
Regulatory
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6 Months Ended |
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Jun. 30, 2011
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Regulatory [Abstract] | Â |
Institutional Disclosure [Text Block] | Regulatory The Company is subject to extensive regulation by federal and state governmental agencies and accrediting bodies. In particular, the Higher Education Act of 1965, as amended ("Higher Education Act"), and the regulations promulgated thereunder by the Department subject the Company to significant regulatory scrutiny on the basis of numerous standards that institutions of higher education must satisfy in order to participate in the various federal student financial assistance programs under Title IV of the Higher Education Act. To participate in Title IV programs, an institution must be authorized to offer its programs of instruction by the relevant agency of the state in which it is physically located, accredited by an accrediting agency recognized by the Department and certified as eligible by the Department. The Department will certify an institution to participate in Title IV programs only after the institution has demonstrated administrative capability, financial responsibility and that it satisfies the various institutional eligibility requirements for certification. A certified institution is subject to review of its ongoing compliance with regulatory requirements by independent auditors, by the Department's Office of Inspector General and the Department's Office of Federal Student Aid. For information regarding the OIG's recently completed compliance audit of Ashford University, see Note 22, "Subsequent Events," in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 2, 2011. As of June 30, 2011, management believes the Company's institutions are in compliance with applicable Department regulations in all material respects. The Higher Education Act requires accrediting agencies to review many aspects of an institution's operations in order to ensure that the education offered is of sufficiently high quality to achieve satisfactory outcomes and that the institution is complying with accrediting standards. Failure to demonstrate compliance with accrediting standards may result in the imposition of probation, the requirements to provide periodic reports, the loss of accreditation or other penalties if deficiencies are not remediated. Because the Company operates in a highly regulated industry, it, like other industry participants, may be subject from time to time to audits, investigations, claims of noncompliance or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions or common law causes of action. |
Summary of Significant Accounting Policies
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6 Months Ended |
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Jun. 30, 2011
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Summary of Significant Accounting Policies [Abstract] | Â |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of Bridgepoint Education, Inc. and its wholly-owned subsidiaries. Intercompany transactions have been eliminated in consolidation. Unaudited Interim Financial Information The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, which was filed with the Securities and Exchange Commission ("SEC") on March 2, 2011. In the opinion of management, these financial statements include all adjustments (consisting of normal recurring adjustments) considered necessary to present a fair statement of the Company's condensed consolidated financial position, results of operations and cash flows as of and for the periods presented. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. The year-end condensed consolidated balance sheet data were derived from audited financial statements, but do not include all disclosures required by GAAP. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements. Actual results could differ from those estimates. |
Warrants
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Jun. 30, 2011
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Warrants [Abstract] | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Warrants The Company has issued warrants to purchase common stock to various employees, consultants, licensors and lenders. Each warrant represents the right to purchase one share of common stock. No warrants were issued during the three months ended June 30, 2011. During the three months ended June 30, 2011, warrants to purchase 29,000 shares of common stock were exercised. As of June 30, 2011, and December 31, 2010, all outstanding warrants were exercisable. The following table summarizes information with respect to all warrants outstanding as of June 30, 2011, and December 31, 2010 (in thousands, except exercise prices):
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Income Taxes
|
6 Months Ended |
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Jun. 30, 2011
|
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Income Tax Disclosure [Text Block] | Income Taxes The Company's current estimated annual effective income tax rate that has been applied to normal, recurring operations for the six months ended June 30, 2011, was 37.4%. The Company's effective income tax rate was 37.6% for the six months ended June 30, 2011. The effective rate for the six months ended June 30, 2011, differed from the Company's estimated annual effective tax rate due to the impact of discrete items on the Company's income before the provision for income taxes, particularly interest accrued on unrecognized tax benefits. At both June 30, 2011, and December 31, 2010, the Company had $8.1 million of gross unrecognized tax benefits, of which $5.8 million would impact the effective income tax rate if recognized. The Company is subject to U.S. federal income tax and multiple state tax jurisdictions. The 2002 through 2010 tax years remain open to examination by major taxing jurisdictions to which the Company is subject. The Internal Revenue Service commenced an audit of the Company's 2008 federal income tax return in November 2010. The audit closed in March 2011 with no significant adjustments. The Company's continuing practice is to recognize interest and penalties related to uncertain tax positions in income tax expense. Accrued interest and penalties related to uncertain tax positions as of June 30, 2011, and December 31, 2010, was $1.2 million and $1.5 million, respectively. |
Stock-Based Compensation
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Jun. 30, 2011
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Stock Based Compensation [Abstract] | Â | ||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation The Company recorded $3.0 million and $1.7 million of stock-based compensation expense for the three months ended June 30, 2011 and 2010, respectively, and $4.8 million and $3.7 million for the six months ended June 30, 2011 and 2010, respectively. The related income tax benefit was $1.1 million and $0.7 million for the three months ended June 30, 2011 and 2010, respectively, and $1.8 million and $1.5 million for the six months ended June 30, 2011 and 2010, respectively. The Company granted options to purchase 45,000 shares of common stock during the three months ended June 30, 2011. During the three months ended June 30, 2011, options to purchase 1.3 million shares of common stock were exercised with an aggregate intrinsic value of $22.5 million. The following weighted average assumptions were used to value the options granted during the three months ended June 30, 2011, pursuant to the Black-Scholes option pricing model:
As of June 30, 2011, there was $14.9 million of unrecognized compensation cost related to unvested options. During the three months ended June 30, 2011, the Company awarded 56,855 restricted stock units ("RSUs") under the Company's Amended and Restated 2009 Stock Incentive Plan at a weighted average stock price of $23.97, for a total value granted of $1.4 million. As of June 30, 2011, there was $1.4 million of unrecognized compensation cost related to unvested RSUs. No RSUs vested during the three months ended June 30, 2011. Each RSU represents a future issuance of one share of common stock contingent upon the recipient's continued service to the Company through the vesting date. Upon the vesting date, RSUs are automatically settled for shares of the Company's common stock unless the applicable award agreement provides for delayed settlement. If, prior to the vesting date, the employee's status as a full-time employee is terminated, then the RSU is automatically cancelled on the employment termination date. The fair value of an RSU is calculated based on the market value of the common stock on the grant date and is amortized over the applicable vesting period. |
Earnings Per Share
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Jun. 30, 2011
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Earnings Per Share [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Earnings Per Share Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net income by the sum of (i) the weighted average number of common shares outstanding for the period and (ii) potentially dilutive securities outstanding during the period, if the effect is dilutive. Potentially dilutive common shares for the three and six months ended June 30, 2011, consisted of incremental shares of common stock issuable upon the exercise of options and warrants and upon the settlement of restricted stock units. Potentially dilutive common shares for the three and six months ended June 30, 2010, consisted of incremental shares of common stock issuable upon the exercise of options and warrants. The following table sets forth the computation of basic and diluted earnings per common share for the periods indicated (in thousands, except per share data):
For the periods indicated below, the computation of dilutive common shares outstanding excludes certain options to purchase shares of common stock and certain restricted stock units because their effect was anti-dilutive.
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Significant Balance Sheet Accounts
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Jun. 30, 2011
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Significant Balance Sheet Accounts [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Disclosures [Text Block] | Significant Balance Sheet Accounts Accounts Receivable, Net Accounts receivable, net, consist of the following (in thousands):
The following table presents the changes in the allowance for doubtful accounts for the periods indicated (in thousands):
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands):
Property and Equipment, Net Property and equipment, net, consist of the following (in thousands):
Accrued Liabilities Accrued liabilities consist of the following (in thousands):
Deferred Revenue and Student Deposits Deferred revenue and student deposits consist of the following (in thousands):
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Commitments and Contingencies
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6 Months Ended |
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Jun. 30, 2011
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Commitments and Contingencies [Abstract] | Â |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. As of June 30, 2011, the Company was not a party, as plaintiff or defendant, to any legal proceedings which, individually or in the aggregate, would be expected to have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. When the Company becomes aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, the Company records a liability for the loss. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the specific claim if the likelihood of a potential loss is reasonably possible and the amount involved is material. OIG Compliance Audit of Ashford University On January 21, 2011, Ashford University received a final audit report from the OIG regarding the compliance audit commenced in May 2008 and covering the period July 1, 2006 through June 30, 2007. The final audit report contained findings of noncompliance and recommendations for certain administrative remedies. For additional information, see Note 22, "Subsequent Events," in Part II, Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 2, 2011. Rosendahl v. Bridgepoint Education, Inc. In January 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company, Ashford University and University of the Rockies as defendants. The complaint was filed in the U.S. District Court for the Southern District of California on January 11, 2011, and is captioned Rosendahl v. Bridgepoint Education, Inc. The complaint generally alleges that the Company and the other defendants engaged in improper, fraudulent and illegal behavior in their efforts to recruit and retain students. The Company believes the lawsuit is without merit and intends to vigorously defend against it. Iowa Attorney General Civil Investigation of Ashford University In February 2011, Ashford University received from the Attorney General of the State of Iowa (“Iowa Attorney General”) a Civil Investigative Demand and Notice of Intent to Proceed (“CID”) relating to the Iowa Attorney General's investigation of whether certain of the university's business practices comply with Iowa consumer laws. The CID contains no specific allegations of wrongdoing. Pursuant to the CID, the Iowa Attorney General has requested documents and detailed information for the time period January 1, 2008 to present. Ashford University is responding to the CID and intends to comply with the Iowa Attorney General's request. Stevens v. Bridgepoint Education, Inc. In February 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company, Ashford University, LLC, and certain employees as defendants. The complaint was filed in the Superior Court of the State of California in San Diego on February 17, 2011, and is captioned Stevens v. Bridgepoint Education, Inc. The complaint generally alleges that the plaintiffs and similarly situated employees were improperly denied certain wage and hour protections under California law. The Company believes the lawsuit is without merit and intends to vigorously defend against it. Moore v. Ashford University, LLC In April 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company and Ashford University, LLC, as defendants. The complaint was filed in the Superior Court of the State of California in San Diego on April 25, 2011, and is captioned Moore v. Ashford University, LLC. The complaint generally alleges that the plaintiff and similarly situated employees were improperly denied certain wage and hour protections under California law. The Company believes the lawsuit is without merit and intends to vigorously defend against it. New York Attorney General Investigation of Bridgepoint Education, Inc. In May 2011, the Company received from the Attorney General of the State of New York (“NY Attorney General”) a Subpoena Duces Tecum (“Subpoena”) relating to the NY Attorney General's investigation of whether the Company and its academic institutions have complied with certain New York state consumer protection, securities and finance laws. Pursuant to the Subpoena, the NY Attorney General has requested from the Company and its academic institutions documents and detailed information for the time period March 17, 2005, to present. The Company is responding to the Subpoena and intends to comply with the NY Attorney General's request. Sanchez v. Bridgepoint Education, Inc. In May 2011, the Company received a copy of a complaint filed as a class action lawsuit naming the Company as a defendant. The complaint was filed in the Superior Court of the State of California in San Diego on May 6, 2011, and is captioned Sanchez v. Bridgepoint Education, Inc. The complaint generally alleges that the plaintiff and similarly situated employees were improperly denied certain wage and hour protections under California law. The Company believes the lawsuit is without merit and intends to vigorously defend against it. |
Fair Value Measurements
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Jun. 30, 2011
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Fair Value Disclosures [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Fair Value Measurements The Company uses the three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either observable directly or indirectly, through market corroboration, for substantially the full term of the financial instrument; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company's Level 2 marketable securities are valued using readily available pricing sources which utilize market observable inputs, including the current interest rate for similar types of instruments. During the three and six months ended June 30, 2011, there were no transfers in or out of any fair value level of measurement. The following table summarizes the fair value information of short and long-term marketable securities as of June 30, 2011 (in thousands):
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Condensed Consolidated Statement of Stockholders' Equity (USD $)
In Thousands |
Total
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Common Stock
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Additional Paid-in Capital
|
Retained Earnings
|
Treasury Stock
|
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Balance at Dec. 31, 2010 | $ 238,241 | $ 558 | $ 101,463 | $ 178,413 | $ (42,193) |
Common Stock, Shares, Outstanding at Dec. 31, 2010 | Â | 55,801 | Â | Â | Â |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | Â | Â | Â | Â | Â |
Stock-based compensation | 4,796 | Â | 4,796 | Â | Â |
Exercise of stock options | Â | 1,906 | Â | Â | Â |
Exercise of stock options | 3,577 | 20 | 3,557 | Â | Â |
Excess tax benefit of option exercises | 10,365 | Â | 10,365 | Â | Â |
Stock issued under employee stock purchase plan | Â | 36 | Â | Â | Â |
Stock issued under employee stock purchase plan | 642 | Â | 642 | Â | Â |
Exercise of warrants | Â | 39 | Â | Â | Â |
Exercise of warrants | 79 | 0 | 79 | Â | Â |
Repurchase of common stock | (56,426) | Â | Â | Â | (56,426) |
Net income | 106,068 | Â | Â | 106,068 | Â |
Balance at Jun. 30, 2011 | $ 307,342 | $ 578 | $ 120,902 | $ 284,481 | $ (98,619) |
Common Stock, Shares, Outstanding at Jun. 30, 2011 | Â | 57,782 | Â | Â | Â |
Nature of Business
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Jun. 30, 2011
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Nature of Business [Abstract] | Â |
Nature of Operations [Text Block] | Nature of Business Bridgepoint Education, Inc. (together with its subsidiaries, the "Company"), incorporated in 1999, is a provider of postsecondary education services. Its wholly-owned subsidiaries, Ashford University and the University of the Rockies, are regionally accredited academic institutions that offer associate's, bachelor's, master's and doctoral programs in the disciplines of business, education, psychology, social sciences and health sciences. These institutions deliver programs online, as well as at their traditional campuses located in Clinton, Iowa, and Colorado Springs, Colorado. |
Share Repurchase Program
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6 Months Ended |
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Jun. 30, 2011
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Share Repurchase Program [Abstract] | Â |
Schedule of Treasury Stock by Class [Table Text Block] | Share Repurchase Program On July 30, 2010, the Company's board of directors authorized the repurchase of up to $60.0 million of the Company's outstanding shares of common stock over the following 12 months (the "2010 Repurchase Program"). On May 2, 2011, the Company's board of directors authorized the repurchase of up to an additional $75.0 million of the Company's outstanding shares of common stock over the following 12 months (the "2011 Repurchase Program"). Under the 2011 Repurchase Program, which was announced on May 3, 2011, the Company may purchase shares from time to time in the open market, through block trades or otherwise. This share repurchase authorization is in addition to, and not in replacement of, the $60.0 million authorized under the 2010 Repurchase Program. Under the Company's repurchase programs, the timing and extent of any repurchases depends upon market conditions, the trading price of the Company's shares and other factors, and subject to the restrictions relating to volume, price and timing under applicable law. The share repurchase programs may be suspended at any time or from time to time by the Company. During the three months ended June 30, 2011, the Company repurchased 1.9 million shares of common stock at a weighted average purchase price of $23.15 per share, for a total cost of $43.7 million. As of June 30, 2011, the Company repurchased a total of 5.6 million shares at a weighted average cost of $17.66, for a total cost of $98.6 million. Approximately $36.4 million remained authorized and available under the 2011 Repurchase Program at June 30, 2011; no amounts were available under the 2010 Repurchase Program as of June 30, 2011. |