| Exhibit 99 |
| DeVry Inc. Reports Fiscal 2004 Second-Quarter Financial Results |
| OAKBROOK TERRACE, Ill., Jan. 21 /PRNewswire-FirstCall/ — DeVry Inc. (NYSE: DV), an international higher-education company, today reported financial results for the second quarter and first half of fiscal year 2004 ended December 31, 2003. |
| Revenues for the quarter were $198.8 million, a 15.2 percent increase compared with $172.5 million for the same period one year ago. Revenues for the six-month period ended December 31, 2003, were $388.0 million versus $335.8 million for the same period last year, an increase of 15.5 percent. |
| Net income for the quarter totaled $15.6 million, or $0.22 per share, compared with $23.0 million, or $0.33 per share for the same period last year, which included $8.2 million or $0.12 per share of certain non-recurring income tax benefits. For the first six months of fiscal 2004, net income was $26.1 million, or $0.37 per share, compared with $34.1 million, or $0.49 per share for the first half of fiscal 2003. |
| “Financial results from operations before last year’s non-recurring tax benefits in the second quarter reflect the second consecutive term of year-to- year increases in new undergraduate student starts at DeVry University,” said Dennis J. Keller, DeVry Inc. chairman and co-chief executive officer. “We expect further improvements in enrollments for the upcoming spring term and beyond.” |
| Citing previously reported data, DeVry continued to show positive enrollment trends with new undergraduate student enrollment increasing 6.2 percent at DeVry University for the 2003 fall term compared to the 2002 fall term. Also, the total number of online coursetakers more than doubled during the fall term and coursetakers at Keller Graduate School of Management increased 4.8 percent from last fall. In July 2003, KGSM adopted the DeVry University academic calendar, which consists of six terms, each 8-weeks in length, as opposed to five 10-week terms. Coursetaker enrollment growth in fiscal year 2004 at KGSM is expected to exceed the 21 percent growth posted in fiscal year 2003, due in part to the additional term. At Ross University, total student enrollment increased 17.0 percent year over year to 3,174 in the 2003 September term. |
| “The growth that we have experienced at DeVry University, KGSM, Ross University and our online programs is the result of the execution of a strategy of controlled expansion, enhanced marketing communications and continued diversification,” said Ronald L. Taylor, president and co-chief executive officer. “We will continue to expand by opening new centers and by offering new programs at an increasing number of locations and online.” |
| DeVry Inc. will hold a conference call to discuss second quarter financial results on January 21, 2004, at 4:30 p.m. Eastern Time. To participate in the conference call, please dial 800-218-0530 (domestic) or 303-262-2130 (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 January 30, 2004, at 800-405-2236 (domestic) or 303-590-3000 (international), conference code 565851. |
| 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 degree programs. 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. |
| Second Quarter Ended December 31: | Fiscal Year 2004 | Fiscal Year 2003 | |||
| Revenues | $198,806,000 | $172,548,000 | |||
| Net Income | 15,578,000 | 22,951,000 | |||
| Earnings Per Common Share | |||||
| Basic | $ 0.22 | $ 0.33 | |||
| Diluted | $ 0.22 | $ 0.33 | |||
| Number of Common Shares | |||||
| Basic | 70,047,000 | 69,927,000 | |||
| Diluted | 70,626,000 | 70,246,000 | |||
| Six Months Ended December 31: | Fiscal Year 2004 | Fiscal Year 2003 | |||
| Revenues | $388,042,000 | $335,817,000 | |||
| Net Income | 26,070,000 | 34,107,000 | |||
| Earnings Per Common Share | |||||
| Basic | $ 0.37 | $ 0.49 | |||
| Diluted | $ 0.37 | $ 0.49 | |||
| Number of Common Shares | |||||
| Basic | 70,038,000 | 69,919,000 | |||
| Diluted | 70,625,000 | 70,269,000 | |||
| December 31: | |||||
| Actual Shares Outstanding | 70,058,125 | 69,928,447 | |||
| DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) PRELIMINARY |
| December 31, 2003 (Unaudited) | June 30, 2003 | December 31, 2002 (Unaudited) | |||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and Cash Equivalents | $126,417 | $108,699 | $134,575 | ||||
| Restricted Cash | 21,476 | 14,052 | 41,173 | ||||
| Accounts Receivable, Net | 75,705 | 24,275 | 46,845 | ||||
| Inventories | 2,241 | 4,315 | 3,022 | ||||
| Prepaid Income Taxes | — | — | 11,101 | ||||
| Deferred Income Taxes | 9,944 | 11,358 | 5,448 | ||||
| Prepaid Expenses and Other | 7,963 | 6,988 | 4,036 | ||||
| Total Current Assets | 243,746 | 169,687 | 246,200 | ||||
| Land, Buildings and Equipment, net | 281,633 | 285,354 | 258,940 | ||||
| Other Assets | |||||||
| Intangible Assets, Net | 93,091 | 103,330 | 35,330 | ||||
| Goodwill | 285,670 | 280,979 | 42,391 | ||||
| Perkins Program Fund, Net | 11,861 | 11,291 | 10,617 | ||||
| Other Assets | 5,264 | 6,003 | 2,007 | ||||
| Total Other Assets | 395,886 | 401,603 | 90,345 | ||||
| TOTAL ASSETS | $921,265 | $856,644 | $595,485 | ||||
| DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) PRELIMINARY |
| December 31, 2003 (Unaudited) | June 30, 2003 | December 31, 2002 (Unaudited) | |||||
| LIABILITIES | |||||||
| Current Liabilities | |||||||
| Current Maturities of Revolving | |||||||
| Loan | $ — | $ 15,000 | $ — | ||||
| Accounts Payable | 35,714 | 34,094 | 31,285 | ||||
| Accrued Salaries, Wages & | |||||||
| Benefits | 31,759 | 30,791 | 31,288 | ||||
| Accrued Expenses | 20,310 | 31,767 | 11,945 | ||||
| Advance Tuition Payments | 6,546 | 10,568 | 19,211 | ||||
| Deferred Tuition Revenue | 116,021 | 16,291 | 97,355 | ||||
| Total Current Liabilities | 210,350 | 138,511 | 191,084 | ||||
| Other Liabilities | |||||||
| Revolving Loan | 115,000 | 150,000 | — | ||||
| Senior Debt | 125,000 | 125,000 | — | ||||
| Deferred Income Taxes | 13,432 | 13,049 | 4,888 | ||||
| Deferred Rent and Other | 15,196 | 14,417 | 11,849 | ||||
| Total Other Liabilities | 268,628 | 302,466 | 16,737 | ||||
| TOTAL LIABILITIES | 478,978 | 440,977 | 207,821 | ||||
| SHAREHOLDERS’ EQUITY | |||||||
| Common Stock, $0.01 par value, | |||||||
| 200,000,000 Shares Authorized, | |||||||
| 70,058,125, 70,021,513 and | |||||||
| 69,928,447, Shares Issued and | |||||||
| Outstanding at December 31, | |||||||
| 2003, June 30, 2003 and December | |||||||
| 31, 2002, Respectively | 701 | 701 | 700 | ||||
| Additional Paid-in Capital | 67,906 | 67,288 | 66,481 | ||||
| Retained Earnings | 373,045 | 346,975 | 319,934 | ||||
| Accumulated Other Comprehensive | |||||||
| Income | 635 | 703 | 549 | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 442,287 | 415,667 | 387,664 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ | |||||||
| EQUITY | $921,265 | $856,644 | $595,485 | ||||
| DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands Except for Per Share Amounts) (Unaudited) PRELIMINARY |
| For The Quarter Ended December 31, | For The Six Months Ended December 31, | ||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||
| REVENUES: | |||||||||
| Tuition | $187,286 | $ 159,159 | $364,880 | $ 310,314 | |||||
| Other Educational | 11,479 | 13,272 | 23,064 | 25,301 | |||||
| Interest | 41 | 117 | 98 | 202 | |||||
| Total Revenues | 198,806 | 172,548 | 388,042 | 335,817 | |||||
| COSTS AND EXPENSES: | |||||||||
| Cost of Educational Services | 104,635 | 93,480 | 209,085 | 185,651 | |||||
| Student Services and | |||||||||
| Administrative Expense | 70,156 | 55,271 | 138,105 | 107,728 | |||||
| Interest Expense | 1,972 | 47 | 4,128 | 94 | |||||
| Total Costs and Expenses | 176,763 | 148,798 | 351,318 | 293,473 | |||||
| Income Before Income Taxes | 22,043 | 23,750 | 36,724 | 42,344 | |||||
| Income Tax Provision | 6,465 | 8,949 | 10,654 | 16,387 | |||||
| Non-Recurring Tax Benefits | — | (8,150 | ) | — | (8,150 | ) | |||
| NET INCOME | $ 15,578 | $ 22,951 | $ 26,070 | $ 34,107 | |||||
| EARNINGS PER COMMON SHARE | |||||||||
| Basic | $ 0.22 | $ 0.33 | $ 0.37 | $ 0.49 | |||||
| Diluted | $ 0.22 | $ 0.33 | $ 0.37 | $ 0.49 | |||||
| DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) PRELIMINARY |
| For The Six Months Ended December 31, | |||||
| 2003 | 2002 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
| Net Income | $ 26,070 | $ 34,107 | |||
| Adjustments to Reconcile Net Income to Net | |||||
| Cash Provided by Operating Activities: | |||||
| Depreciation | 19,667 | 18,666 | |||
| Amortization of Intangible Assets | 6,769 | 362 | |||
| Amortization of Other Assets | 527 | 22 | |||
| Provision for Refunds and Uncollectible | |||||
| Accounts | 17,461 | 17,931 | |||
| Deferred Income Taxes | 1,797 | 6,689 | |||
| Loss on Disposals of Land, Buildings and | |||||
| Equipment | 147 | 128 | |||
| Changes in Assets and Liabilities: | |||||
| Restricted Cash | (7,424 | ) | (21,909 | ) | |
| Accounts Receivable | (68,891 | ) | (38,606 | ) | |
| Inventories | 2,074 | 1,885 | |||
| Prepaid Expenses And Other | (632 | ) | (11,681 | ) | |
| Accounts Payable | 1,620 | (4,999 | ) | ||
| Accrued Salaries, Wages, Expenses and | |||||
| Benefits | (10,489 | ) | 3,995 | ||
| Advance Tuition Payments | (4,022 | ) | 3,328 | ||
| Deferred Tuition Revenue | 99,730 | 85,068 | |||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 84,404 | 94,986 | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
| Capital Expenditures | (16,093 | ) | (20,107 | ) | |
| Payments and Adjustments to Payments for | |||||
| Purchases of Businesses, net of Cash | |||||
| Acquired | (1,143 | ) | — | ||
| NET CASH USED IN INVESTING ACTIVITIES | (17,236 | ) | (20,107 | ) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
| Proceeds From Exercise of Stock Options | 618 | 136 | |||
| Proceeds From Revolving Credit Facility | — | — | |||
| Repayments Under Revolving Credit Facility | (50,000 | ) | — | ||
| NET CASH (USED IN) PROVIDED BY FINANCING | |||||
| ACTIVITIES | (49,382 | ) | 136 | ||
| Effects of Exchange Rate Differences | (68 | ) | (125 | ) | |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 17,718 | 74,890 | |||
| Cash and Cash Equivalents at Beginning | |||||
| of Period | 108,699 | 59,685 | |||
| Cash and Cash Equivalents at End of Period | $ 126,417 | $ 134,575 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||
| Interest Paid During the Period | $ 3,411 | $ 93 | |||
| Income Tax Payments During the Period, Net | 21,729 | 14,552 | |||
| SOURCE DeVry Inc. |
| -0- 01/21/2004 |
| /CONTACT: Joan Bates, Investor Relations, +1-630-574-1949, or Jonelle Niffenegger, Media Relations, +1-630-706-3212, both of DeVry Inc./ |
| /Web site: http://www.devry.com / |
| (DV) |
| CO: DeVry Inc. ST: Illinois IN: CPR EDU SU: ERN CCA |
