Zovio Inc - FORM 8-K - EX-99.1 - August 7, 2012

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News Release
Contact: Paul Goodson, Associate Vice President of Investor Relations
866.475.0317 x2271
investorrelations@bridgepointeducation.com

Bridgepoint Education Reports Second Quarter 2012 Results
SAN DIEGO, (August 7, 2012) - Bridgepoint Education (NYSE:BPI), a provider of postsecondary education services, announced today its results for the three months ended June 30, 2012.
Highlights for the second quarter ended June 30, 2012, are as follows:
•
Total student enrollment at period end was 92,620.
•
Revenue increased to $256.3 million from $239.9 million for the same period in 2011.
•
Operating income decreased to $75.5 million from $82.5 million for the same period in 2011.
•
Net income was $47.5 million compared with $52.1 million for the same period in 2011.
•
Fully diluted earnings per share was $0.84 compared with $0.90 for the same period in 2011.
Student Enrollment
Total student enrollment at Bridgepoint Education's academic institutions, Ashford University and University of the Rockies, was 92,620 students at June 30, 2012, compared with 84,545 students at the end of the second quarter of 2011.
New student enrollments for the second quarter of 2012 at Bridgepoint Education's academic institutions were approximately 19,300 compared with new student enrollments of approximately 19,050 for the same period in 2011.
Financial Results
Revenue for the second quarter of 2012 was $256.3 million, compared with revenue of $239.9 million for the same period in 2011. Revenue for the six months ended June 30, 2012, was $506.7 million, compared to $469.3 million for the same period in 2011.
Operating income for the second quarter of 2012 was $75.5 million compared with operating income of $82.5 million for the same period in 2011. Operating income for the six months ended June 30, 2012 was $127.9 million compared to $168.7 million for the same period in 2011.
Net income for the second quarter of 2012 was $47.5 million compared with net income of $52.1 million for the same period in 2011. Net income for the six months ended June 30, 2012 was $80.5 million compared to $106.1 million for the same period in 2011.
Fully diluted earnings per share for the second quarter of 2012 was $0.84 compared with $0.90 for the same period in 2011. Fully diluted earnings per share for the six months ended June 30, 2012, was $1.43 compared with $1.82 for the same period in 2011.
The Company's effective tax rate for the second quarter of 2012 was 37.9%.
Balance Sheet and Cash Flow
As of June 30, 2012, the Company had cash, cash equivalents and marketable securities of $470.6 million, compared with $407.2 million as of December 31, 2011. The Company generated $76.8 million of cash from operating activities in the six months ended June 30, 2012, compared with $116.2 million for the same period in 2011.


Full-Year 2012 Outlook
The Company has elected to suspend, until further notice, its practice of providing full-year financial and operating guidance due to reduced visibility arising from recent regulatory developments.
Earnings Conference Call and Webcast
Bridgepoint Education will host a conference call at 11:30 a.m. ET (8:30 a.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) 575-6537 and for international callers is (913) 312-0383. The access code for all callers is 7081492. A live webcast will also be available on the Company's website at www.bridgepointeducation.com/investorrelations.
A replay of the call will be available via telephone through August 14, 2011. To access the replay, dial (888) 203-1112 in the United States / Canada and (719) 457-0820 outside the United States; then enter the access code 7081492.
About Bridgepoint Education
Bridgepoint Education, Inc. (NYSE:BPI) improves the way individuals learn. By harnessing creativity, knowledge and proprietary technologies, such as Constellation, Thuze, and Waypoint Outcomes, Bridgepoint Education has re-engineered the modern student experience with innovative solutions that advance learning. Its accredited institutions - Ashford University and University of the Rockies - embody the contemporary college experience. Ashford University offers associate's, bachelor's and master's degree programs while University of the Rockies offers master's and doctoral degree programs. Both provide progressive online platforms, as well as traditional campuses located in Clinton, Iowa (Ashford University), and Colorado Springs, Colorado (University of the Rockies).
For more information about Bridgepoint Education, call Paul Goodson, Associate Vice President of Investor Relations at (858) 848-3312.




BRIDGEPOINT EDUCATION, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

 
Three Months Ended June 30,
 
Six Months Ended
June 30,
 
2012
 
2011
 
2012
 
2011
Revenue
$
256,302

 
$
239,880

 
$
506,739

 
$
469,313

Costs and expenses:
 
 
 
 
 
 
 
Instructional costs and services
65,395

 
62,012

 
133,870

 
117,821

Marketing and promotional
78,608

 
62,188

 
158,671

 
121,154

General and administrative
36,763

 
33,131

 
86,309

 
61,677

Total costs and expenses
180,766

 
157,331

 
378,850

 
300,652

Operating income
75,536

 
82,549

 
127,889

 
168,661

Other income, net
854

 
657

 
1,537

 
1,330

Income before income taxes
76,390

 
83,206

 
129,426

 
169,991

Income tax expense
28,932

 
31,057

 
48,927

 
63,923

Net income
$
47,458

 
$
52,149

 
$
80,499

 
$
106,068

Earnings per share:
 
 
 
 
 
 
 
Basic
$
0.90

 
$
0.99

 
$
1.54

 
$
2.00

Diluted
0.84

 
0.90

 
1.43

 
1.82

Weighted average number of common shares outstanding used in computing earnings per share:
 
 
 
 
 
 
 
Basic
52,531

 
52,911

 
52,269

 
52,943

Diluted
56,233

 
57,939

 
56,203

 
58,253





BRIDGEPOINT EDUCATION, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

 
As of
June 30, 2012
 
As of
December 31, 2011
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
180,425

 
$
133,921

Restricted cash
—

 
25

Investments
159,792

 
153,779

Accounts receivable, net
99,617

 
62,156

Deferred income taxes
5,442

 
5,429

Prepaid expenses and other current assets
22,966

 
17,199

Total current assets
468,242

 
372,509

Property and equipment, net
95,395

 
89,667

Investments
130,398

 
119,507

Student loans receivable, net
14,998

 
9,255

Goodwill and intangibles, net
9,364

 
7,037

Deferred income taxes
10,810

 
11,200

Other long-term assets
2,390

 
4,461

Total assets
$
731,597

 
$
613,636

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
5,929

 
$
8,961

Accrued liabilities
57,858

 
40,205

Deferred revenue and student deposits
187,433

 
185,446

Total current liabilities
251,220

 
234,612

Rent liability
22,238

 
16,595

Other long-term liabilities
9,083

 
8,781

Total liabilities
282,541

 
259,988

Total stockholders' equity
449,056

 
353,648

Total liabilities and stockholders' equity
$
731,597

 
$
613,636





BRIDGEPOINT EDUCATION, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 
Six Months Ended
June 30,
 
2012
 
2011
Cash flows from operating activities
 
 
 
Net income
$
80,499

 
$
106,068

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for bad debts
24,923

 
23,614

Depreciation and amortization
8,384

 
5,572

Amortization of premium/discount
3,594

 
1,380

Deferred income taxes
(2
)
 
—

Stock-based compensation
6,541

 
4,796

Excess tax benefit of option exercises
(5,625
)
 
(10,365
)
Loss on disposal of fixed assets
—

 
11

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(62,501
)
 
(43,539
)
Prepaid expenses and other current assets
(5,084
)
 
360

Student loans receivable
(5,626
)
 
(1,332
)
Other long-term assets
2,071

 
(122
)
Accounts payable and accrued liabilities
21,700

 
19,276

Deferred revenue and student deposits
1,987

 
7,154

Other liabilities
5,945

 
3,292

Net cash provided by operating activities
76,806

 
116,165

Cash flows from investing activities
 
 
 
Capital expenditures
(14,957
)
 
(12,477
)
Purchases of investments
(108,354
)
 
(114,115
)
Restricted cash
25

 
—

Capitalized curriculum development costs
(2,935
)
 
(1,333
)
Sales and maturities of investments
88,189

 
75,500

Net cash used in investing activities
(38,032
)
 
(52,425
)
Cash flows from financing activities
 
 
 
Proceeds from the exercise of stock options
1,396

 
3,577

Excess tax benefit of option exercises
5,625

 
10,365

Proceeds from the issuance of stock under employee stock purchase plan
707

 
642

Proceeds from the exercise of warrants
2

 
79

Repurchase of common stock
—

 
(56,426
)
Net cash provided by (used in) financing activities
7,730

 
(41,763
)
Net increase in cash and cash equivalents
46,504

 
21,977

Cash and cash equivalents at beginning of period
133,921

 
188,518

Cash and cash equivalents at end of period
$
180,425

 
$
210,495




Zovio Inc Reports