Bridge Point - PPT

8/3/2019 Bridge Point - PPT

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2011 J.P. MorganUltimate ServicesInvestor Conference


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This presentation may include forward-looking statements within the meaning of

Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange

Act of 1934. Forward-looking statements are subject to risks and uncertainties and

actual results may differ materially from those reflected in the forward-looking

statements. Important factors that could cause actual results to differ materially include,

but are not limited to, those risk factors discussed in Bridgepoints filings with the

Securities and Exchange Commission, including the Annual Report on Form 10-K for

the year ended December 31, 2010 (f iled on March 2, 2011) and the Quarterly Report

on Form 10Q for the quarter ended September 30, 2011 (filed on November 1, 2011).

Forward-looking statements speak only as of the date the statements are made.

Bridgepoint assumes no obligation to update forward-looking statements to reflect

actual results, changes in assumptions or changes in other factors affecting forward-

looking information, except to the extent required by applicable securities laws.

FORWARD-LOOKING STATEMENTS

INNOVATIVE SOLUTIONS THAT ADVANCE LEARNING


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LARGE MARKET OPPORTUNITY

BA orHigher43 MM

AA13 MMNoCollegeDegree98 MM

US Workforce > 25 Years OldEmployed Population: 154 MM2Private SectorEnrollment:1.4 MM


1 Source: BMO Capital Markets, Education and Training, Equity Research, September 20112 Source: Labor Force Statistics, Current Population Survey, Employment status by educational attainment, 2010 annual averages

Private Sector Market Share1

5.8%

6.9% 7.3%

8.2%

10.0%

11.9%

0%

2%

4%

6%

8%

10%

12%

0

250

500

750

1,000

1,250

2004 2005 2006 2007 2008 2009

%oTaEome

Eome0

Private-for-profit Market share


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11.5m13.7m 15.4m

17.8m21.6m

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

1980 1984 1986 1988 1990 1992 1994 1996 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Fall Enrollment: Up 10 MM in 30 years

Source: The College Boards Annual Survey of Colleges, IPEDS, and Eduventures analysis

GROWTH IN HIGHER EDUCATION

TUITION VASTLY OUTPACED ENROLLMENT GROWTH:THREATENS STUDENTACCESS AND A CHIEVEMENT

+258% between 1980& 2010 at 4Y Publics

+177% at Private4Y Nonprofits


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6,91678,332

229,363

1,260,605

1,537,151

1,783,095

2,139,714

2,482,068

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000Est. Online Headcount

Source: IPEDS/NCES, SEC filings, school data, Sloan-C and Eduventures analysis

PRIVATE SECTOR:~40% of the wholly online market;~10% of U.S. Higher Ed

ONLINE IS MAINSTREAM:Online is ~12% of total headcountin U.S. Higher Ed~30% of adult and graduateheadcount (Fall 2010)

ONLINE PROGRAMS EMBRACED BY ADULTSSEEKING ACCESS


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1.0 1.11.2

1.6

2.0

2.4

0.0

1.0

2.0

3.0

High

SchoolGrads

Some

College

AA BA MA Dr.

2009 Median Earnings Relativeto H.S. Grads1 9.7%8.6%

6.8%

5.2%3.9%

2.5%

0.0%

3.0%

6.0%

9.0%

12.0%

High

SchoolGrads

Some

College

AA BA MA Dr.

2009 Unemployment Rate2

$300,000

$1,100,000

$1,500,000

$2,600,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

AA BA MA Dr.

Lifetime Earnings AdvantageOver High School Grads3

COLLEGE BENEFITS:HIGHER PAY +LOWER UNEMPLOYMENT


1Source: Bureau of Labor Statistics, Current Population Survey (posted 5/27/2010)2Source: 2009 annual averages for persons age 25 and over, earnings are for full-time wage and salary works3Source: U.S. Census Bureau, Current Populations Survey, 2009 Annual Social and Economic Supplement

TimesH.S.

Earnings


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* 43 States Cut Assistance1

* Reductions in Faculty

* Tuition Increases

* More to Come?

PublicSector

Independent PrivateSector

Net TaxpayerCost Per Student2

$15,500

$2,400

Dollars

$7,100

1 Source: Center on Budget and Policy Priorities, February 9, 2011

2 Source: Robert J. Shapiro and Nam D. Phan, Sonecon September 2010

TRADITIONAL COLLEGES: FEWER SEATS,HIGHER COSTS



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1) Barclays Capital Equity Research 2011

53%

46%43%

38% 36%33%

15%12%

-100%

-75%

-50%

-25%

0%

25%

50%

$0

$100

$200

$300

$400

$500

$600

Devry -DV

UoP -APOL

Kaplan- WPO

Argosy- EDMC

Strayer- STRA

Capella- CPLA

GrandCanyon -

LOPE

AIU -CECO

Ashford -BPI

AshfordMilitary -

BPI

AMU -APEI

Cost Per Credit % Difference

ASHFORD TUITION ADVANTAGE


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1.4%

2.9%

4.0%

5.3%

0.0%

2.0%

4.0%

6.0%

2007 2008 2009 2010

BridgepointEducations MarketShare Based onEnrollmentPercentage1

STEADY GROWTH IN MARKET SHARE

1) BMO Equity Research 2011


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More Affordable

Apple/ Android

Better Student Benchmarking Data

Rich Data on Outcomes

Used By 40 Institutions

Assessment of Learning Data

MOBILE ACCESS

Proprietary Learning Platform

80% of Students by 2012

Constellation

Students

Grade Book

Admin

Classroom

Faculty

INNOVATION DIFFERENTIATES US

}


Patent Pending


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Recognized- 2011 Horizon Report

technology to watch

- Finalist for theSIIAs 2011 CODIE Award

Impactful- 89% of AU students say

Constellation is reliable andhassle-free

- 78% say it improves their learning

Feature-rich- Quizzing for self assessment,

interactive timelines, simulationsand animations

- Create & review highlights,annotations, and more

CONSTELLATION PLATFORM


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Versatile:- Downloadable to many

devices:

iPads

MP3 players

iPods

Professionally Vetted:- Professional Authors

- Expert Peer-Review- Professional Editors

CONSTELLATION PLATFORM


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2011 OUR APPROACH TOQUALITY EDUCATION


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MA, PsyD, PhD

Social & Behavioral Sciences

Colorado Springs Campus

HLC Accredited

BA 74%

AA14%

MA11%Dr1%

Degrees

99% Online71% Female50% Minority35 Years Old

University of The RockiesAshford University

AA, BA, MA, MBA

17 NAIA Teams

Clinton, IA Campus

HLC Accredited; WASC Applied

Edu 17%

Hcare21%

Lib Arts24%

Bus 39%

Programs

RECOGNIZED BRANDS



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QUALITY AT EVERY STEP

Admissions

Lead Analytics Pre-App. Quality Control / I.D. Management

Walk to Class / Orientation

Collaboration: Admission / Academics

Courses

QA Checkpoints: Course, Program, Institutional levels

Quality Matters Leader: > 380 certified

Technology: Performance & Feedback Assessment Team Gauges Student Achievement


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Ashford Universitys learning model

- A rigorous course/program development process- Encapsulates instructional design advances of the past 40 years

- Student-centered

- Course and program learning outcomes with aligned assessments

University of the Rockies: a similar learning model- Plus a specific disciplinary perspective and Practitioner-Scholar Model

Faculty

- Extensive training in technology and teaching methodology- Rubrics

- Faculty mentoring

EXEMPLARY LEARNING MODELS


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Ashford and Rockies: Robust data disclosure

On student characteristics, satisfaction and performance,and alumni data

Committed to transparency: Informed prospective student decision-making

Institutional continuous improvement

Accountability for public and private funds

Exceeds federal requirements

TRANSPARENCY & ACCOUNTABILITY


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- Student and faculty characteristics

- Student retention and course completion- Intended learning outcomes:

Institution overall

General education

By program

- Student performance on 3rd party General Edassessments

- Benchmarked against national student engagementand satisfaction data

- Alumni satisfaction and career progression- Outlines of curricula and instructional reform in

response to student feedback

ASSESSMENT SITE ASHFORD


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VALIDATION Ashford outperforming national benchmarks:

- SAILS test of information literacy (Kent State University) Exceeded 7of 8 benchmarks set by other baccalaureate institutions

- NSSE 2010 survey of student engagement AU student responses surpassed national average in numerous categories

- Ashford alumni 97% reported overall satisfaction with their experience

95% would recommend Ashford- UniLOA survey of critical skills development (Indiana St. University)

Outperformed national average on 6 of 7 benchmarks

Source: Ashford University 2010 Assessment Data for 2009 cohort

Source: Ashford University Internal Data

ENHANCED ASHFORD PERFORMANCE

BA students attempting more than 12 courses exhibited annualretention of 83.9%

BA students who transfer in 60+ credits have a 78% retention rate


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2011 FINANCIALREVIEW


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FINANCIAL MODEL HIGHLIGHTS

Highly visible revenue stream

Operating leverage drives margin expansion and earningsgrowth

Capital efficient business

Consistent financial, operating record

Strong growing and cash position, no debt


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12,623

31,558

53,688

77,892

90,597

5,000

25,000

45,000

65,000

85,000

2007 2008 2009 *2010 Q3 '11

Enrollments

$85.7

$218.3

$454.3

$713.2 $712.1

$50.0

$250.0

$450.0

$650.0

$850.0

2007 2008 2009 *2010 Q3'11YTD

RevenueCAGR*83.4%

CAGR*102.6%

($MM)


HISTORY OF CONSISTENT PERFORMANCE


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34.8%

28.8%26.4% 26.3% 26.3%

10.0%

25.0%

40.0%

2007 2008 2009 2010 Q3 YTD

Instructional Costs and Services

42.0%

37.1%

32.1% 29.7%26.7%

10.0%

25.0%

40.0%

55.0%

2007 2008 2009 2010 Q3 YTD

Marketing and Promotional

18.5% 18.8%

23.5%

13.7% 13.5%

5.0%

15.0%

25.0%

2007 2008 2009 2010 Q3 YTD

General and Administ rative

4.6%

15.3%18.0%

30.3%33.5%

3.0%

15.0%

27.0%

39.0%

2007 2008 2009 2010 Q3 YTD

Operating Margin

-- % of Revenue --


CONSISTENT IMPROVEMENT IN OPERATINGLEVERAGE


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$10.4

$70.7

$131.7

$189.9

$148.7

$0

$100

$200

2007 2008 2009 2010 Q3YTD

Net Cash Provided ByOperating Activities($ MM)

$0.01$0.16

$0.74

$2.14

$2.60

$0.00

$1.00

$2.00

$3.00

2007 2008 2009 2010 Q3YTD

Fully-Diluted EarningPer Common Share


STRONG CASHFLOW AND EPS


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