Exhibit 99 |
DeVry Inc. Reports Fiscal 2004 First Quarter Revenues and Earnings Per Share |
Acquires Person/Wolinsky CPA Review |
OAKBROOK TERRACE, Ill., Oct. 21 /PRNewswire-FirstCall/ — DeVry Inc. (NYSE: DV), an international higher education company, today reported financial results for the first quarter of fiscal year 2004, ended September 30, 2003. |
Financial Results |
Revenues for the first quarter were $189.2 million, compared with $163.3 million for the same quarter one year ago. Net income for the quarter totaled $10.5 million, or $0.15 per fully diluted share, compared with $11.2 million, or $0.16 per fully diluted share, for the same period last year. The increase in revenue in the first quarter is largely attributable to higher revenues from Keller Graduate School of Management and to the inclusion of Ross University, which was acquired in May 2003. These results also reflect the previously reported 5.2 percent decrease in the total number of undergraduate students enrolled in the DeVry University 2003 summer term compared to the prior year. The decline in the total number of undergraduate students reflects lower new undergraduate enrollments in each of the previous 5 semesters, a trend which began in November 2001 and ended in July 2003. As previously announced, July 2003 new undergraduate student enrollments increased by 2.5 percent, with new undergraduate students in U.S. campuses increasing by 4.5 percent. |
Dennis J. Keller, DeVry’s chairman and co-chief executive officer, said, “The first quarter of fiscal 2004 was a turning point for the company. While we have experienced lower new undergraduate enrollments over the past two years, new undergraduate student enrollments increased in the July 2003 term, and we expect continued growth in the fall and spring terms. This positive momentum is a result of increased investment in marketing and advertising, diversification of our educational offerings, enrollment growth in online degree programs and at DeVry University Centers, and early signs of recovery in the technology sector.” |
“During the past two years we have managed expenses to better match our slower revenue growth. Recently, we announced a letter of intent to transfer DeVry Canada’s Toronto operations to RCC College of Technology, which should have a positive effect on year-to-year earnings comparisons in fiscal 2004,” said Ronald L. Taylor, president and co-chief executive officer. |
During the first quarter, the company began offering classes in its new Houston campus and opened new DeVry University Centers in Indianapolis, Pittsburgh and Portland. Recently, DeVry announced plans to open new DeVry University Centers in Cleveland and Las Vegas. In addition, the company began offering at selected campuses two new bachelor’s programs in biomedical engineering technology and biomedical infomatics and an associate degree program in health information technology. |
New Format for Reporting Enrollment Data |
The company also reported a change in the way future DeVry University enrollment data will be provided. Beginning with the announcement of the fall 2003 term, enrollment data will be provided in the following format. In addition, the table below provides a history of enrollments in the new format: |
Summer 2002 | Fall 2002 | Spring 2003 | Summer 2003 | |||||
Total undergraduate students (1) | 43,342 | 45,200 | 43,045 | 41,075 | ||||
New undergraduate students (2) | 10,345 | 10,303 | 8,053 | 10,607 | ||||
Graduate coursetakers (3) | 8,209 | 10,761 | 11,715 | 9,483 | ||||
Online coursetakers (4) | 2,652 | 3,824 | 5,244 | 6,531 |
(1) | Includes total undergraduate student headcount, whether taking coursework onsite or online. |
(2) | Includes new undergraduate student headcount, whether taking coursework onsite or online. |
(3) | Coursetakers at Keller Graduate School of Management include both onsite and online. |
(4) | Includes online coursetakers at both undergraduate and graduate levels. |
Acquisition of Person/Wolinsky CPA Review |
The company also announced that Becker Professional Review, a wholly owned subsidiary of DeVry Inc. and a leading provider of preparatory coursework for the certified public accountant, certified management accountant and chartered financial analyst exams, has acquired the assets of Person/Wolinsky CPA Review. Founded in 1967, its primary locations include New York City, Philadelphia, and Washington, D.C. Terms of the transaction were not disclosed. |
DeVry Inc. will hold a conference call to discuss these results on October 21, 2003, at 4:30 p.m. eastern time. For those who wish to participate, please dial 800-299-8538 (domestic) or 617-786-2902 (international). Investors may also participate by live web cast by visiting www.investor.devry.com . A telephone replay of the earnings call will be available until October 31, 2003 by dialing 888-286-8010 (domestic) or 617-801-6888 (international), conference code 43394150. |
DeVry Inc. (NYSE: DV) is the holding company for DeVry University, Ross University and Becker Professional Review. DeVry University, which includes Keller Graduate School of Management, offers associate, bachelor’s and master’s degree programs in technology, business and management. Ross University, through its schools of Medicine and Veterinary Medicine, offers both doctor of medicine and doctor of veterinary medicine degrees. Becker Professional Review provides preparatory coursework for the certified public accountant, certified management accountant and chartered financial analyst exams. DeVry Inc. is based in Oakbrook Terrace, Ill. For more information about the company, visit http://www.devry.com . |
Certain information contained in this release may constitute forward- looking statements pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Potential risks and uncertainties include, but are not limited to, market conditions, dependence on student financial aid, state and provincial approval and licensing requirements, and the other factors detailed in the company’s Securities and Exchange Commission filings, including those discussed under the heading “Risk Factors” in the Company’s Registration Statement on Form S-3 (No. 333-22457) filed with the SEC. |
DeVry Inc. First Quarter Ended September 30: |
Fiscal Year 2004 | Fiscal Year 2003 | |||
Revenues | $189,236,000 | $163,269,000 | ||
Net Income | 10,492,000 | 11,156,000 | ||
Earnings Per Common Share | ||||
Basic | $0.15 | $0.16 | ||
Diluted | $0.15 | $0.16 | ||
Number of Common Shares | ||||
Basic | 70,030,000 | 69,910,000 | ||
Diluted | 70,637,000 | 70,323,000 | ||
September 30: | ||||
Actual Shares Outstanding | 70,040,257 | 69,922,793 |
DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) PRELIMINARY |
September 30, 2003 (Unaudited) | June 30, 2003 | September 30, 2002 (Unaudited) | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and Cash Equivalents | $139,522 | $108,699 | $ 97,046 | ||||
Restricted Cash | 21,348 | 14,052 | 25,894 | ||||
Accounts Receivable, Net | 49,703 | 24,275 | 54,149 | ||||
Inventories | 3,072 | 4,315 | 3,347 | ||||
Deferred Income Taxes | 11,358 | 11,358 | 5,448 | ||||
Prepaid Expenses and Other | 9,990 | 6,988 | 4,176 | ||||
Total Current Assets | 234,993 | 169,687 | 190,060 | ||||
Land, Buildings and Equipment, Net | 283,847 | 285,354 | 258,922 | ||||
Other Assets | |||||||
Intangible Assets, Net | 96,475 | 103,330 | 35,510 | ||||
Goodwill | 284,483 | 280,979 | 42,391 | ||||
Deferred Income Taxes | — | — | 1,504 | ||||
Perkins Program Fund, Net | 11,291 | 11,291 | 10,617 | ||||
Other Assets | 5,665 | 6,003 | 2,084 | ||||
Total Other Assets | 397,914 | 401,603 | 92,106 | ||||
TOTAL ASSETS | $916,754 | $856,644 | $541,088 |
DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) PRELIMINARY |
September 30, 2003 (Unaudited) | June 30, 2003 | September 30, 2002 (Unaudited) | |||||
LIABILITIES | |||||||
Current Liabilities | |||||||
Current Maturities of Revolving | |||||||
Loan | $ 0 | $ 15,000 | $ 0 | ||||
Accounts Payable | 36,272 | 34,094 | 30,173 | ||||
Accrued Salaries, Wages & | |||||||
Benefits | 38,012 | 30,791 | 35,983 | ||||
Accrued Expenses | 28,836 | 31,767 | 20,522 | ||||
Advance Tuition Payments | 8,870 | 10,568 | 12,893 | ||||
Deferred Tuition Revenue | 87,479 | 16,291 | 66,336 | ||||
Total Current Liabilities | 199,469 | 138,511 | 165,907 | ||||
Other Liabilities | |||||||
Revolving Loan | 138,000 | 150,000 | — | ||||
Senior Debt | 125,000 | 125,000 | — | ||||
Deferred Income Taxes | 13,049 | 13,049 | — | ||||
Deferred Rent and Other | 14,689 | 14,417 | 10,593 | ||||
Total Other Liabilities | 290,738 | 302,466 | 10,593 | ||||
TOTAL LIABILITIES | 490,207 | 440,977 | 176,500 | ||||
SHAREHOLDERS’ EQUITY | |||||||
Common Stock, $0.01 par value, | |||||||
200,000,000 Shares Authorized, | |||||||
70,040,257, 70,021,513 and | |||||||
69,922,793, Shares Issued | |||||||
and Outstanding at September 30, | |||||||
2003, June 30, 2003 and | |||||||
September 30, 2002, respectively | 701 | 701 | 700 | ||||
Additional Paid-in Capital | 67,678 | 67,288 | 66,478 | ||||
Retained Earnings | 357,467 | 346,975 | 296,983 | ||||
Accumulated Other Comprehensive | |||||||
Income | 701 | 703 | 427 | ||||
TOTAL SHAREHOLDERS’ EQUITY | 426,547 | 415,667 | 364,588 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ | |||||||
EQUITY | $916,754 | $856,644 | $541,088 |
DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands Except for Per Share Amounts) (Unaudited) PRELIMINARY |
For The Quarter Ended September 30, | |||||
2003 | 2002 | ||||
REVENUES: | |||||
Tuition | $177,594 | $151,155 | |||
Other Educational | 11,585 | 12,029 | |||
Interest | 57 | 85 | |||
Total Revenues | 189,236 | 163,269 | |||
COSTS AND EXPENSES: | |||||
Cost of Educational Services | 104,450 | 92,171 | |||
Student Services and | |||||
Administrative Expense | 67,949 | 52,457 | |||
Interest Expense | 2,156 | 47 | |||
Total Costs and Expenses | 174,555 | 144,675 | |||
Income Before Income Taxes | 14,681 | 18,594 | |||
Income Tax Provision | 4,189 | 7,438 | |||
NET INCOME | $ 10,492 | $ 11,156 | |||
EARNINGS PER COMMON SHARE | |||||
Basic | $ 0.15 | $ 0.16 | |||
Diluted | $ 0.15 | $ 0.16 |
DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) PRELIMINARY |
For The Quarter Ended September 30, | |||||
2003 | 2002 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net Income | $ 10,492 | $ 11,156 | |||
Adjustments to Reconcile Net | |||||
Income to Net Cash Provided by | |||||
Operating Activities: | |||||
Depreciation | 9,119 | 8,603 | |||
Amortization of Intangible Assets | 3,385 | 182 | |||
Amortization of Other Assets | 264 | 10 | |||
Provision for Refunds and | |||||
Uncollectible Accounts | 9,579 | 9,034 | |||
Deferred Income Taxes | — | 297 | |||
Loss on Disposals and Adjustments | |||||
to Land, Buildings and Equipment | 67 | 146 | |||
Changes in Assets and | |||||
Liabilities: | |||||
Restricted Cash | (7,296 | ) | (6,630 | ) | |
Accounts Receivable | (35,007 | ) | (37,013 | ) | |
Inventories | 1,243 | 1,560 | |||
Prepaid Expenses And Other | (2,690 | ) | (2,041 | ) | |
Accounts Payable | 2,178 | (6,111 | ) | ||
Accrued Salaries, Wages, | |||||
Expenses and Benefits | 4,290 | 17,267 | |||
Advance Tuition Payments | (1,698 | ) | (2,990 | ) | |
Deferred Tuition Revenue | 71,188 | 54,049 | |||
NET CASH PROVIDED BY OPERATING | |||||
ACTIVITIES | 65,114 | 47,519 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Capital Expenditures | (7,679 | ) | (10,044 | ) | |
NET CASH USED IN INVESTING ACTIVITIES | (7,679 | ) | (10,044 | ) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds From Exercise of Stock Options | 390 | 133 | |||
Repayments Under Revolving | |||||
Credit Facility | (27,000 | ) | — | ||
NET CASH (USED IN) PROVIDED BY | |||||
FINANCING ACTIVITIES | (26,610 | ) | 133 | ||
Effects of Exchange Rate Differences | (2 | ) | (247 | ) | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 30,823 | 37,361 | |||
Cash and Cash Equivalents at | |||||
Beginning of Period | 108,699 | 59,685 | |||
Cash and Cash Equivalents at | |||||
End of Period | $ 139,522 | $ 97,046 | |||
SUPPLEMENTAL DISCLOSURE OF CASH | |||||
FLOW INFORMATION | |||||
Interest Paid During the Period | $ 2,112 | $ 49 | |||
Income Tax Payments During the | |||||
Period, Net | 8,427 | 30 |
SOURCE DeVry Inc. |
-0- 10/21/2003 |
/CONTACT: Investor Relations, Joan Bates, +1-630-574-1949, or Media Relations, Jonelle Niffenegger, +1-630-706-3212, both of DeVry/ |
/Web site: http://www.devry.com / |
(DV) |
CO: DeVry Inc. ST: Illinois IN: CPR EDU SU: ERN CCA |