Delaware | 001-34272 | 59-3551629 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
13500 Evening Creek Drive North San Diego, California | 92128 | |
(Address of principal executive offices) | (Zip Code) |
(d) | Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release of Bridgepoint Education, Inc. dated November 5, 2015 |
Date: November 5, 2015 | Bridgepoint Education, Inc. | |
By: | /s/ RUSSELL SAKAMOTO | |
Name: Russell Sakamoto | ||
Title: Chief Accounting Officer |
• | the failure to comply with the extensive regulatory framework applicable to the Company and its institutions, including Title IV of the Higher Education Act of 1965, as amended, and its regulations, the newly issued Gainful Employment rules and regulations, state laws and regulatory requirements, and accrediting agency requirements; |
• | 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 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. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | $ | 140,762 | $ | 162,654 | $ | 430,337 | $ | 491,446 | |||||||
Costs and expenses: | |||||||||||||||
Instructional costs and services | 69,197 | 79,707 | 215,656 | 239,641 | |||||||||||
Admissions advisory and marketing | 47,794 | 56,783 | 148,636 | 178,079 | |||||||||||
General and administrative | 13,346 | 15,583 | 42,914 | 48,589 | |||||||||||
Restructuring and impairment charges | 44,904 | — | 59,322 | — | |||||||||||
Total costs and expenses | 175,241 | 152,073 | 466,528 | 466,309 | |||||||||||
Operating income (loss) | (34,479 | ) | 10,581 | (36,191 | ) | 25,137 | |||||||||
Other income, net | 465 | 1,080 | 1,499 | 2,159 | |||||||||||
Income (loss) before income taxes | (34,014 | ) | 11,661 | (34,692 | ) | 27,296 | |||||||||
Income tax expense | 28,732 | 5,370 | 29,075 | 12,380 | |||||||||||
Net income (loss) | $ | (62,746 | ) | $ | 6,291 | $ | (63,767 | ) | $ | 14,916 | |||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | (1.37 | ) | $ | 0.14 | $ | (1.40 | ) | $ | 0.33 | |||||
Diluted | (1.37 | ) | 0.14 | (1.40 | ) | 0.32 | |||||||||
Weighted average number of common shares outstanding used in computing earnings per share: | |||||||||||||||
Basic | 45,754 | 45,301 | 45,620 | 45,145 | |||||||||||
Diluted | 45,754 | 46,474 | 45,620 | 46,495 |
September 30, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 242,673 | $ | 207,003 | |||
Restricted cash | 24,591 | 25,934 | |||||
Investments | 21,902 | 12,051 | |||||
Accounts receivable, net | 30,793 | 21,274 | |||||
Student loans receivable, net | 928 | 1,003 | |||||
Deferred income taxes | 12,757 | 21,301 | |||||
Prepaid expenses and other current assets | 33,577 | 22,818 | |||||
Total current assets | 367,221 | 311,384 | |||||
Property and equipment, net | 30,560 | 78,219 | |||||
Investments | 71,364 | 111,557 | |||||
Student loans receivable, net | 7,607 | 9,510 | |||||
Goodwill and intangibles, net | 22,221 | 24,775 | |||||
Deferred income taxes | 4,118 | 20,175 | |||||
Other long-term assets | 2,209 | 2,475 | |||||
Total assets | $ | 505,300 | $ | 558,095 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,128 | $ | 1,013 | |||
Accrued liabilities | 72,364 | 51,403 | |||||
Deferred revenue and student deposits | 89,614 | 108,048 | |||||
Total current liabilities | 164,106 | 160,464 | |||||
Rent liability | 21,397 | 22,098 | |||||
Other long-term liabilities | 11,902 | 9,652 | |||||
Total liabilities | 197,405 | 192,214 | |||||
Total stockholders' equity | 307,895 | 365,881 | |||||
Total liabilities and stockholders' equity | $ | 505,300 | $ | 558,095 |
Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | (63,767 | ) | $ | 14,916 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Provision for bad debts | 24,269 | 21,961 | |||||
Depreciation and amortization | 15,403 | 17,914 | |||||
Amortization of premium/discount | 364 | 85 | |||||
Deferred income taxes | 24,081 | 1,124 | |||||
Stock-based compensation | 7,324 | 7,891 | |||||
Excess tax benefit of option exercises | (426 | ) | (1,171 | ) | |||
Loss on impairment of student loans receivable | 1,207 | 1,466 | |||||
Net gain (loss) on marketable securities | 125 | (22 | ) | ||||
Loss on termination of leased space | 13,540 | — | |||||
Loss on impairment of fixed assets | 38,855 | 80 | |||||
Changes in operating assets and liabilities: | |||||||
Restricted cash | 7,712 | 12,202 | |||||
Accounts receivable | (33,524 | ) | (30,314 | ) | |||
Prepaid expenses and other current assets | 5,537 | 3,317 | |||||
Student loans receivable | 831 | 763 | |||||
Other long-term assets | 266 | 368 | |||||
Accounts payable and accrued liabilities | (2,883 | ) | (532 | ) | |||
Deferred revenue and student deposits | (18,313 | ) | (23,600 | ) | |||
Other liabilities | (3,960 | ) | (1,864 | ) | |||
Net cash provided by operating activities | 16,641 | 24,584 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (2,324 | ) | (9,644 | ) | |||
Purchases of investments | (20,242 | ) | (87,855 | ) | |||
Non-operating restricted cash | (6,369 | ) | (29 | ) | |||
Capitalized costs for intangible assets | (1,761 | ) | (2,957 | ) | |||
Sales and maturities of investments | 50,195 | 50,000 | |||||
Net cash provided by (used in) investing activities | 19,499 | (50,485 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 260 | 3,076 | |||||
Excess tax benefit of option exercises | 426 | 1,171 | |||||
Proceeds from the issuance of stock under employee stock purchase plan | 136 | — | |||||
Tax withholdings on issuance of stock awards | (1,292 | ) | (2,093 | ) | |||
Net cash (used in) provided by financing activities | (470 | ) | 2,154 | ||||
Net increase (decrease) in cash and cash equivalents | 35,670 | (23,747 | ) | ||||
Cash and cash equivalents at beginning of period | 207,003 | 212,526 | |||||
Cash and cash equivalents at end of period | $ | 242,673 | $ | 188,779 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating Income (Loss) Reconciliation: | |||||||||||||||
GAAP operating income (loss) | $ | (34,479 | ) | $ | 10,581 | $ | (36,191 | ) | $ | 25,137 | |||||
Restructuring and impairment charges | 44,904 | — | 59,322 | — | |||||||||||
Non-GAAP operating income | $ | 10,425 | $ | 10,581 | $ | 23,131 | $ | 25,137 | |||||||
Net Income (Loss) Reconciliation: | |||||||||||||||
GAAP net income (loss) | $ | (62,746 | ) | $ | 6,291 | $ | (63,767 | ) | $ | 14,916 | |||||
Restructuring and impairment charges | 44,904 | — | 59,322 | — | |||||||||||
Income tax expense related to restructuring and impairment charges (1) | (16,839 | ) | — | (22,246 | ) | — | |||||||||
Incremental income tax expense related to establishment of valuation allowance | 40,666 | — | 40,666 | — | |||||||||||
Non-GAAP net income | $ | 5,985 | $ | 6,291 | $ | 13,975 | $ | 14,916 | |||||||
Diluted Earnings (Loss) Per Share Reconciliation: | |||||||||||||||
GAAP diluted earnings (loss) per share | $ | (1.37 | ) | $ | 0.14 | $ | (1.40 | ) | $ | 0.32 | |||||
Restructuring and impairment charges | 0.98 | — | 1.30 | — | |||||||||||
Income tax expense related to restructuring and impairment charges (1) | (0.37 | ) | — | (0.49 | ) | — | |||||||||
Incremental income tax expense related to establishment of valuation allowance | 0.89 | — | 0.89 | — | |||||||||||
Non-GAAP diluted earnings per share | $ | 0.13 | $ | 0.14 | $ | 0.30 | $ | 0.32 |
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