Boston, MA 08/08/2014 (wallstreetpr) – Bridgepoint Education Inc (NYSE:BPI) posted the second quarter and half yearly result ended in June 30, 2014. The Company experiences lower revenue due the declining trend in the enrollment process. It was due to various changes in operation, as a result of the initial accreditation from the WASC Senior College and University Commission.
Operating overview
During the quarter, revenues were down by 11% to $171.5 million from $193.5 million in the same period 2013. The decline was due to lower enrollment of online and campus students across its academic institutions University of the Rockies and Ashford University.
In 2Q2014, 61,117 students enrolled for different programs compared to 71,685 students in 2Q2013. But, the 12 months retention of students for the period between 2Q2013 and 2Q2014 was 65.6%, higher than previous year period (61.2%).
The operational initiatives raised the expenses like instructional costs and services. But, Bridgepoint Education Inc (NYSE:BPI) reported lower admissions advisory and marketing and G&A costs compared to prior year period.
Consequently, the operating income improved to $22.4 million in the period versus $19.1 million in 2Q2013. It also improved the net earnings to $13 million and diluted EPS of $0.28 compared to net earnings of $12.2 million and diluted EPS of $0.22 in 2Q2013.
Financial highlights
During the six months periods (1H2014) ended June 30, 2014, Bridgepoint Education Inc (NYSE:BPI) financed most of its operating activities and capital expenditures through the available cash at balance and cash generated from its operation.
In 1H2014, the Company used $3.8 million of cash to support the operating activities compared to $38.7 million of cash generated from operating during 1H2013. The significant decline was due to the effect of non-cash charges (bad debt of $11.5 million) and higher change in working capital. The Company reported capital expenditure of $6.2 million and expects ~$18 million for FY2014.
Bridgepoint Education Inc (NYSE:BPI) has sufficient funds to support the ongoing requirement. As of June, 2014, the Company has a cash balance of $342 million including cash and cash equivalents of $150.5 million and investment of $158.9 million.
