Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference
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Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference Bridgepoint Education Inc at J.P. Morgan Ultimate Services Investor Conference Presentation Transcript

  • J.P. MORGANULTIMATE SERVICESCONFERENCENovember 14, 2012
  • FORWARD-LOOKING STATEMENTSThis presentation contains forward-looking statements including, without limitation, statements regarding the Company’sinitiatives, their anticipated impact, institutional accreditation, the Company’s financial model highlights, 2012 outlook andrelated commentary. These statements involve risks and uncertainties, and the Company’s actual performance may differmaterially from those expressed in or suggested by such statements. Risks and uncertainties include, without limitation:• Failure to comply with the extensive regulatory framework applicable to the Company and its institutions,including Title IV of the Higher Education Act and its regulations, state laws and regulatory requirements,and accrediting agency requirements;• Adverse regulatory or legislative changes affecting the Companys institutions, including, but not limited todecisions by regional accrediting bodies WASC and HLC;• The imposition of fines or other corrective measures against the Companys institutions;• Competition in the postsecondary education market and its potential impact on the Companys market shareand recruiting costs; and• Reputational and other risks related to potential compliance audits, regulatory actions, negative publicity orservice disruptions.More information on potential factors that could affect the Company’s performance is included from time to time in the “RiskFactors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of theCompany’s periodic reports filed with the SEC, including the Company’s Annual Report on Form 10-K for the year endedDecember 31, 2011 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, which have been filedwith the SEC. Forward-looking statements are made on the basis of management’s views and assumptions regarding futureevents and business performance as of the time the statements are made, and the Company assumes no obligation toupdate any forward-looking statements or information, which speak as of their respective dates, except as required by law.
  • • MA, PsyD, PhD• Social & Behavioral Sciences• Colorado Springs Campus• HLC Accredited99% Online72% Female49% Minority36 Years OldUniversity of The RockiesAshford University• AA, BA, MA, MBA• 17 NAIA Sports Teams• Clinton, IA Campus• HLC Accredited; WASC in processRECOGNIZED BRANDSBus 40%Lib Arts;17%Edu 19%Hcare21%Non-D2%AU ProgramsAA, 13%BA, 74%MA, 12%Doc, <1%AU and UOR Students
  • 2011 2010 2009Fall-to-Fall Persistence Rates 61% 60% 62%Bachelors Graduation Rates 51% 50% 49%Masters Graduation Rates 74% 80% 73%Bachelors’ Degree salary % increasefrom salary at enrollment11.6% 14.0% 16.7%Graduate Degree salary % increasefrom salary at enrollment11.0% 11.5% 23.0%ASHFORD Students and Alumni:Persistence, Graduation & Salary Increases* Survey not conducted in 2012
  • Our Approachto Quality Education
  • LEADERSHIPDr. Greg Geoffroy Chairman-elect, AU Trustees 38 Yrs Academic Leadership President Emeritus, Iowa St. 10 Years as President: Expanded Diversity Built Infrastructure Bioeconomy Institute SVP & Provost, U. Maryland Ph.D. Chemistry, CaltechDr. Richard Pattenaude Ashford U. President Chairman, NEASC Higher Ed 23 Yrs. Academic Leadership Chancellor, U. Maine System 7 years President, U. Southern Maine 16 Years Ph.D. Political Science,U. of Colorado
  • ASHFORD UNIVERSITY & UNIVERSITYof the ROCKIESAFFORDABILITY ACCESS SUCCESSQUALITYDelivering valueto students through FOUR PILLARS
  • AFFORDABILITY AFFORDABILITY ACCESS QUALITY SUCCESS47%37%15%0%-100%-80%-60%-40%-20%0%20%40%$-$100$200$300$400$500$600DeVry - DV UoP- APOLStrayer- STRAGrandCanyon- LOPEAshford- BPIAshfordMilitaryAMU -APEI%Difference$perCredit51%Affordable
  • ACCESS AFFORDABILITY ACCESS QUALITY SUCCESS• Better Student Benchmarking Data• Rich Data on Outcomes• Used By 40 Institutions• Assessment of Learning DataApple™/ Android™MOBILE ACCESS• Constellation• Students• Grade Book• Admin• Classroom• Faculty}• More Affordable• Proprietary Learning Platform• Rapid uptake• Patent Pending&ACCESS through TECHNOLOGY
  • QUALITY AFFORDABILITY ACCESS QUALITY SUCCESSQuality InitiativesLearning• Additional Full-Time Faculty• Smaller Class Sizes• Continued Technology Investment• InsideTrackUniversity Advisors• Extend relationship to 26 wks• Problem-solving FocusStudent Support• 2 Advisors thru 4th Course• Predictive Modeling• Better Persistence
  • SUCCESS AFFORDABILITY ACCESS QUALITY SUCCESSStudent Inquiry• First Contact with Students• 200 Staff• Data Analytics• Goal: Student ReadinessOrientation• 2 Weeks• 100% Free• All AAs & BAs w/ zero creditsThe Ashford Promise• 3-Week Refund Policy• Drop Underperforms• All Tuition, Fees Refunded• No Debt IncurredCareer Support• Career Support Services– Resume building– Job Search– Interview Prep• Alumni Networking• Employer AwarenessStudent Success Initiatives
  • Branding
  • BRANDING STRATEGY• Data Analytics: Target Best Performing Lead SourcesBased on Persistence• Increased Awareness by National Target Audience• Messages Reinforce Four Pillars• Working Adult Demographic• Messaging Reflects Working Families• Reinforces Technology and Increased Access• Increased Lead Cost Offset by Better Persistence
  • BRANDING STRATEGY“Technology Changes Everything”90% of Potential Students Think the Future of Education is Virtual
  • BRANDING STRATEGY“Technology Changes Everything”90% of Potential Students Think the Future of Education is Virtual
  • BRANDING STRATEGY“Technology Changes Everything”RESULTS:• 80% increase in Organic traffic on Ashford’s website• 100% increase in Brand Awareness• 114% increase in Awareness among fully employed• Positive Sentiment Up 40% in August• Ashford seen as Innovative, Forward Thinking• 19% Increase in Non-Aggregator Enrollments
  • Financial Review
  • AFFORDABILITY ACCESS QUALITY SUCCESSFinancial Model Highlights• Highly Competitive Tuition Pricing One of the lowest in the sector Below Title IV Loan Limits• Branding: Recalibrate Marketing Mix• Capital Efficient Business• Strong Cash Position, No Debt
  • AFFORDABILITY ACCESS QUALITY SUCCESSHistory of Consistent Performance31,55853,68877,89286,64291,3585,00025,00045,00065,00085,000105,0002008 2009 2010 2011 Q3 12YTDEnrollments$218.3$454.3$713.2$933.3$758.8$50.0$250.0$450.0$650.0$850.0$1,050.02008 2009 2010 2011 Q3 12YTDRevenue
  • AFFORDABILITY ACCESS QUALITY SUCCESSOperating Margin15.3%18.0%30.3% 29.3%23.4%0.0%10.0%20.0%30.0%40.0%2008 2009 2010 2011 Q3 12 YTD
  • AFFORDABILITY ACCESS QUALITY SUCCESSCash Flow and EPS$70.7$131.7$189.9$220.8$93.6$0$70$140$210$2802008 2009 2010 2011 Q3 12YTDNet Cash Provided ByOperating Activities$0.16$0.74$2.14$3.02$2.00$0.00$0.80$1.60$2.40$3.202008 2009 2010 2011 Q3 12YTDFully-Diluted EarningsPer Common Share
  • AFFORDABILITY ACCESS QUALITY SUCCESSConsistent Regulatory MetricsWell Positioned for Gainful Employment:Repayment RatesDebt to IncomeDebt to Discretionary Income2011 2010 2009 2008 2007Ashford 2-Yr. CDR --- 10.2% 15.3% 13.3% 13.3%Rockies 2-Yr. CDR --- 4.0% 3.3% 2.5% 0%Ashford 90 /10 Ratio 86.8% 85.0% 85.5% 86.8%Rockies 90 /10 Ratio 85.0% 85.9% 84.6% 80.8%
  • REGULATORY TIMELINE AFFORDABILITY ACCESS QUALITY SUCCESS20132012Data Submissions Site VisitSubstantialPresence PlanHLC BoardMeetingSite VisitRe-ApplicationSubmittalWASC BoardMeetingJune July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul