Exhibit 99.1
DeVry Inc. Announces Fiscal 2009 Third-Quarter Results
Record revenues driven by favorable enrollment trends
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 23, 2009--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2009 third-quarter and nine-month period ended March 31, 2009. DeVry also reported enrollment results at DeVry University (including its Keller Graduate School of Management), Chamberlain College of Nursing, Ross University, and U.S. Education (including Apollo College and Western Career College). DeVry’s continued focus on student academic outcomes produced the following results:
Three Months Ended March 31
- Revenues increased 34.7 percent to $391.9 million, compared with $291.0 million in the prior-year period.
- Operating income increased 42 percent to $71.8 million, compared with $50.6 million for the same period last year.
- Net income increased 32.8 percent to $50.9 million from $38.3 million in the same period last year.
- Fully diluted earnings per share increased 32.1 percent to $0.70, compared with $0.53 per diluted share last year.
Nine Months Ended March 31
- Revenues increased 30.7 percent to $1,065.2 million, compared with $815.0 million for the same period last year.
- Operating income increased 37.9 percent to $181.1 million, compared with $131.4 million in the comparable prior-year period.
- Net income increased 27.4 percent to $128.6 million compared with $101.0 million for the same period last year.
- Fully diluted earnings per share in the period increased 26.4 percent to $1.77, compared with $1.40 per diluted share in the prior year.
Third-quarter and nine-month results include the impact of U.S. Education, which was acquired on September 18, 2008. It should also be noted that net income in the third quarter of fiscal 2009 includes an after-tax charge of $2.5 million, or $0.04 per diluted share, related to the buyout of a portion of a lease at DeVry University’s Long Island City, New York, campus. Excluding this charge, net income and earnings per share in the third quarter would have increased 39.4 percent and 39.6 percent, respectively.
“We continued to see significant gains in enrollment, as prospective students are attracted by our strong track record of high quality education and career outcomes,” said Daniel Hamburger, DeVry’s president and chief executive officer. “I am very pleased with the progress we have made in improving academic quality across all of our schools, growing enrollment, and further diversifying our offerings. Our strong enrollment and improved retention are providing a quality base of revenue, which we expect will help propel future growth.”
Business Highlights
DeVry University
DeVry University continued to report strong undergraduate enrollment growth, with new spring enrollments increasing 15.1 percent to 14,288 compared with 12,410 last year. Total student enrollment increased 18.8 percent to 53,259 students, compared with 44,814 in spring 2008.
For the January 2009 session, graduate coursetakers enrolled in master’s degree programs at DeVry University and its Keller Graduate School of Management rose to 19,475, an increase of 12.1 percent over January 2008. For the March 2009 session, the number of graduate coursetakers was 19,357, an increase of 13.8 percent over prior year.
The total number of online undergraduate and graduate coursetakers in the March 2009 session increased 27.0 percent to 55,745 versus 43,889 in the same session a year ago.
During the quarter, DeVry University unveiled a new academic structure that more clearly defines the distinct academic disciplines available across the university. Included in the new structure are:
- The College of Business and Management
- Keller Graduate School of Management
- The College of Engineering and Information Sciences
- The College of Liberal Arts and Sciences
- The College of Media Arts and Technology
- The College of Health Sciences
This new structure provides a home for all degrees at all levels, including flexibility for future curricula. Furthermore, it adopts an organization that is more familiar to students.
Ross University
In the January 2009 term at Ross University, new students increased 10.9 percent to 611, and total student enrollment rose to 4,323 students, an increase of 7.8 percent over the January 2008 term. Ross continues to expand its facilities and faculty and is moving forward with its plans for a permanent clinical facility in Freeport, Grand Bahama.
Chamberlain College of Nursing
Chamberlain's new student enrollment in spring 2009 increased 68.1 percent to 763 students, compared to 454 in spring 2008. Total student enrollment rose 104.5 percent to 3,722 students compared with 1,820 during the same period last year.
During the quarter, Chamberlain received all necessary regulatory approvals to offer an online Master of Science in Nursing degree, which will launch this summer. In addition, last month Chamberlain received a five-year approval for the associate’s degree program at its Columbus, Ohio, location. Chamberlain expects to open a new campus in Jacksonville, Fla., this summer, pending final approvals.
Apollo College/Western Career College (U.S. Education)
New student enrollment at U.S. Education rose 26.8 percent to 4,323 compared with 3,408 in spring 2008. Total enrollment increased 21.8 percent to a record 10,928 students, compared with 8,973 for the same period last year.
Apollo College will launch its first online bachelor’s degree completion programs this summer. Beginning in July, Apollo College will offer a bachelor’s in both medical imaging and respiratory care. Apollo will utilize the DeVry Online Services technology platform, further leveraging DeVry’s high quality resources such as faculty recruiting, curriculum development and student services.
Becker Professional Review
Revenues for Becker were flat during the quarter as a result of the ongoing weakness in the financial services sector. As previously disclosed, continued soft market conditions are anticipated at least through calendar 2009. Becker remains well-positioned for long-term growth in the accounting and finance fields.
Fanor Acquisition
On April 1, 2009, DeVry Inc. completed its acquisition of a majority stake in Fanor, a leading provider of private postsecondary education in northeastern Brazil. Under terms of the agreement, DeVry purchased an 82.3 percent stake in Fanor, including real estate and the reduction of Fanor’s debt, for a total cash outlay of $40.4 million.
Balance Sheet/Cash Flow
During the first nine months of fiscal 2009, DeVry generated $287.9 million of operating cash flow, primarily driven by the continuation of strong operating results. As of March 31, 2009, cash, marketable securities and investment balances totaled $354.2 million and outstanding borrowings were $135.1 million.
Share Repurchase Plan
During the third quarter of fiscal 2009, DeVry repurchased 206,683 shares of its common stock at a cost of approximately $10.3 million, or $50.06 per share. As of March 31, 2009, 304,783 shares of DeVry stock have been purchased as part of the current program for a total of $15.7 million at an average cost of $51.53 per share.
Conclusion
“We believe our philosophy of putting our students first and focusing on excellent academic and career outcomes is paying off,” said Hamburger. “We remain optimistic about DeVry’s future prospects. Our focus on a strategy of diversification, integrity, and a commitment to quality academic outcomes should help us achieve steady financial performance during all economic cycles.”
Conference Call and Webcast Information
DeVry will host a conference call on April 23, 2009, at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) to discuss the fiscal 2009 third quarter results. The conference call will be led by Daniel Hamburger, president and chief executive officer and Rick Gunst, chief financial officer.
For those wishing to participate by telephone, dial (866) 700-7173 (domestic) or (617) 213-8838 (international). DeVry will also broadcast the conference call live via the Internet at http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=1745021. Interested parties may access the Webcast through the link noted above. Please access the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
DeVry will archive a telephone replay of the call until May 7, 2009. To access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode: 19954322. To access the Webcast replay, please visit DeVry’s Web site, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=1745021.
About DeVry Inc.
DeVry Inc. (NYSE: DV) is the parent organization of DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing, Apollo College, Western Career College Becker Professional Review, and Fanor. DeVry University, which includes Keller Graduate School of Management, offers associate, bachelor's and master's degree programs in technology, healthcare technology, business and management. Advanced Academics provides online secondary education to school districts throughout the U.S. Ross University offers doctoral degree programs through its schools of Medicine and Veterinary Medicine. Chamberlain College of Nursing offers associate and bachelor's degree programs in nursing. Apollo College and Western Career College prepare students for careers in healthcare through certificate and associate degree programs. Becker Professional Review, which includes Becker CPA Review and Stalla Review for the CFA Exams, provides professional education and exam review for accounting and finance professionals. Based in Brazil, Fanor offers undergraduate and graduate programs in business management, law and engineering through its three schools: Faculdades Nordeste, Faculdade Ruy Barbosa, and Faculdade FTE ÁREA1. For more information, visit http://www.devryinc.com.
Certain statements contained in this release concerning DeVry's future performance, including those statements concerning DeVry's expectations or plans, may constitute forward-looking statements subject to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as DeVry Inc. or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Actual results may differ materially from those projected or implied by these forward-looking statements. Potential risks, uncertainties and other factors that could cause results to differ are described more fully in Item 1A, "Risk Factors," in the Company's most recent Annual Report on Form 10-K for the year ending June 30, 2008 and filed with the Securities and Exchange Commission on August 27, 2008.
Selected Operating Data (in thousands, except per share data)
| Third-Quarter |
| FY 2009 | | FY 2008 | | % Change |
| Revenues | $391,882 | | $290,973 | | +34.7% |
| Net Income | $50,886 | | $38,318 | | +32.8% |
| Earnings per Share (diluted) | $0.70 | | $0.53 | | +32.1% |
| Number of common shares (diluted) | 72,653 | | 72,515 | | +0.2% |
| Nine-Months |
| FY 2009 | | FY 2008 | | % Change |
| Revenues | $1,065,214 | | $815,028 | | +30.7% |
| Net Income | $128,581 | | $100,966 | | +27.4% |
| Earnings per Share (diluted) | $1.77 | | $1.40 | | +26.4% |
| Number of common shares (diluted) | 72,624 | | 72,358 | | +0.4% |
Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule
DeVry executed certain real estate transactions in the three and nine month periods ended March 31, 2009 and 2008, which resulted in significant lease termination charges and/or losses on the sale of facilities. The following table illustrates the effects of the real estate transactions on DeVry’s earnings. Management believes that the non-GAAP disclosure of net income and earnings per share provides investors with useful supplemental information regarding the underlying business trends and performance of DeVry’s ongoing operations and is useful for period-over-period comparisons of such operations given the discrete nature of these real estate transactions. DeVry uses these supplemental financial measures internally in its budgeting process. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, DeVry’s reported results prepared in accordance with GAAP. The following table reconciles these items to the relevant GAAP information (in thousands, except per share data):
| Third Quarter | | First Nine Months |
| FY2009 | | FY2008 | | FY2009 | | FY2008 |
| Net Income | $50,886 | | $38,318 | | $128,581 | | $100,966 |
| Earnings per Share (diluted) | $0.70 | | $0.53 | | $1.77 | | $1.40 |
Loss on Facility Sales and Lease
Transactions (net of tax) | $2,543 | | - | | $2,543 | | $2,279 |
| Effect on Earnings per Share (diluted) | $0.04 | | - | | $0.04 | | $0.03 |
Net Income Excluding the Loss on Facility
Sales and Lease Transactions (net of tax) | $53,429 | | $38,318 | | $131,124 | | $103,245 |
| Earnings per Share (diluted) Excluding | | | | | | | |
| the Loss on Sale and Lease Transactions | $0.74 | | $0.53 | | $1.81 | | $1.43 |
Spring 2009 Enrollment Results
| 2009 | | 2008 | | % Change |
| DeVry University | | | | | |
| Undergraduate(1) | | | | | |
| New students | 14,288 | | 12,410 | | +15.1% |
| Total students | 53,259 | | 44,814 | | +18.8% |
| | | | | |
| Graduate coursetakers(1)(2)(3) | | | | | |
| January | 19,475 | | 17,377 | | +12.1% |
| March | 19,357 | | 17,005 | | +13.8% |
| | | | | |
| Online coursetakers(2)(4) - March | 55,745 | | 43,889 | | +27.0% |
| | | | | |
| Ross University - January | | | | | |
| New students | 611 | | 551 | | +10.9% |
| Total students | 4,323 | | 4,011 | | +7.8% |
| | | | | |
| Chamberlain College of Nursing(1) - March | | | | | |
| New students | 763 | | 454 | | +68.1% |
| Total students | 3,722 | | 1,820 | | +104.5% |
| | | | | |
| Apollo College/Western Career College (U.S. Education) - March | | | | | |
| New students | 4,323 | | 3,408 | | +26.8% |
| Total students | 10,928 | | 8,973 | | +21.8% |
| | | | | |
Employment Statistics | | | | | |
| Period | | Percent
Employed | | Average
Salary |
| DeVry University (Undergraduate)(5) | Oct 07-Feb 08-Jun 08 | | 92.1% | | $45,376 |
1 Includes both onsite and online students
2 The term “coursetaker” refers to the number of courses taken by a student. Thus one student taking two courses equals two coursetakers.
3 Includes Keller Graduate School of Management and other master’s programs offered at DeVry University
4 Includes all degree levels at DeVry University
5 Three-term average; includes graduates of associate and bachelor’s degree programs
Chart 1: DeVry Inc. Remaining CY2009 Announcements & Events
| | |
| August 13, 2009 | | Fiscal 2009 full-year earnings and most recent enrollment results: |
| | |
| | DeVry University (Undergraduate and Graduate) |
| | Keller Graduate School of Management |
| | Ross University |
| | Chamberlain College of Nursing |
| | Apollo College and Western Career College (U.S. Education) |
| | |
| October 27, 2009 | | Fiscal 2010 first quarter earnings and most recent enrollment results: |
| | |
| | Keller Graduate School of Management |
| | Ross University |
| | Fanor |
| | |
| November 16-17, 2009 | | DeVry Investor Day |
| | |
| December 3, 2009 | | Most recent enrollment results: |
| | |
| (press release, no call) | | DeVry University (Undergraduate and Graduate) |
| | Keller Graduate School of Management |
| | Chamberlain College of Nursing |
| | Apollo College and Western Career College (U.S. Education) |
Chart 2: DeVry University Historical Enrollment Results
(See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5947873&lang=en)
Chart 3: DeVry University Historical Graduate Employment Statistics (1975-2007)
(See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5947873&lang=en)
| DEVRY INC. |
CONSOLIDATED BALANCE SHEETS |
| (Dollars in Thousands) |
| (Unaudited) |
| PRELIMINARY |
| | | | | | | | | | | | |
| | | | | | | March 31, | | June 30, | | March 31, |
| | | | | | | 2009 | | 2008 | | 2008 |
| | | | | | | | | | | |
ASSETS | | | | | | | | | | |
| | | | | | | | | | | |
| Current Assets | | | | | | | | |
| | | | | | | | | | | |
| | Cash and Cash Equivalents | | | $ 294,979 | | | $ 217,199 | | | $ 249,580 | |
| | Marketable Securities | | | 1,743 | | | 2,308 | | | 2,345 | |
| | Restricted Cash | | | 22,246 | | | 4,113 | | | 23,077 | |
| | Accounts Receivable, Net | | | 179,954 | | | 55,214 | | | 121,523 | |
| | Deferred Income Taxes, Net | | | 17,850 | | | 14,975 | | | 17,287 | |
| | Prepaid Expenses and Other | | | 33,033 | | | 31,779 | | | 20,761 | |
| | | | | | | | | | | |
| | | Total Current Assets | | | 549,805 | | | 325,588 | | | 434,573 | |
| | | | | | | | | | | |
| Land, Buildings and Equipment | | | | | | | |
| | | | | | | | | | | |
| | Land | | | | 50,816 | | | 50,726 | | | 47,478 | |
| | Buildings | | | | 237,581 | | | 216,048 | | | 200,617 | |
| | Equipment | | | | 313,053 | | | 282,273 | | | 276,921 | |
| | Construction In Progress | | | 8,420 | | | 4,874 | | | 5,816 | |
| | | | | | | | | | | |
| | | | | | | 609,870 | | | 553,921 | | | 530,832 | |
| | | | | | | | | | | |
| | Accumulated Depreciation and Amortization | (332,132 | ) | | (314,606 | ) | | (308,001 | ) |
| | | | | | | | | | | |
| | | Land, Buildings and Equipment, Net | | 277,738 | | | 239,315 | | | 222,831 | |
| | | | | | | | | | | |
| Other Assets | | | | | | | | |
| | | | | | | | | | | |
| | Intangible Assets, Net | | | 184,654 | | | 62,847 | | | 63,859 | |
| | Goodwill | | | | 494,579 | | | 308,024 | | | 308,671 | |
| | Perkins Program Fund, Net | | | 13,450 | | | 13,450 | | | 13,450 | |
| | Investments | | | | 57,461 | | | 57,171 | | | 57,637 | |
| | Other Assets | | | | 13,182 | | | 11,961 | | | 14,871 | |
| | | | | | | | | | | |
| | | Total Other Assets | | | 763,326 | | | 453,453 | | | 458,488 | |
| | | | | | | | | | | |
| TOTAL ASSETS | | | | $ 1,590,869 | | | $ 1,018,356 | | | $ 1,115,892 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| DEVRY INC. |
CONSOLIDATED BALANCE SHEETS |
| (Dollars in Thousands) |
| (Unaudited) |
| PRELIMINARY |
| | | | | | | | | | | |
| | | | | | | March 31, | | June 30, | | March 31, |
| | | | | | | 2009 | | 2008 | | 2008 |
| | | | | | | | | | | |
LIABILITIES | | | | | | | | |
| | | | | | | | | | | |
| Current Liabilities | | | | | | | | |
| | | | | | | | | | | |
| | Current Portion of Debt | | | $ 115,063 | | | $ - | | | $ - | |
| | Accounts Payable | | | 66,212 | | | 70,368 | | | 36,895 | |
| | Accrued Salaries, Wages and Benefits | | 53,724 | | | 51,300 | | | 43,049 | |
| | Accrued Expenses | | | 48,923 | | | 31,175 | | | 36,196 | |
| | Advance Tuition Payments | | | 26,413 | | | 16,972 | | | 21,405 | |
| | Deferred Tuition Revenue | | | 276,104 | | | 40,877 | | | 195,869 | |
| | | | | | | | | | | |
| | | Total Current Liabilities | | | 586,439 | | | 210,692 | | | 333,414 | |
| | | | | | | | | | | |
| Non-Current Liabilities | | | | | | | |
| | | | | | | | | | | |
| | Revolving Loan | | | 20,000 | | | - | | | - | |
| | Deferred Income Taxes, Net | | | 68,955 | | | 22,163 | | | 13,809 | |
| | Deferred Rent and Other | | | 29,274 | | | 29,512 | | | 32,272 | |
| | | | | | | | | | | |
| | | Total Non-current Liabilities | | | 118,229 | | | 51,675 | | | 46,081 | |
| | | | | | | | | | | |
| TOTAL LIABILITIES | | | | 704,668 | | | 262,367 | | | 379,495 | |
| | | | | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| | | | | | | | | | | |
| Common Stock, $0.01 par value, 200,000,000 Shares Authorized; | | | | |
| 71,582,000, 71,377,000 and 71,333,000 Shares issued | | | | | |
| and outstanding at March 31, 2009, June 30, 2008 | | | | | |
| and March 31, 2008, respectively. | | | 729 | | | 724 | | | 722 | |
| Additional Paid-in Capital | | | 186,815 | | | 168,405 | | | 164,634 | |
| Retained Earnings | | | | 749,913 | | | 627,064 | | | 606,781 | |
| Accumulated Other Comprehensive Income (Loss) | 737 | | | (2,963 | ) | | (2,644 | ) |
| Treasury Stock, at Cost (1,266,803, 989,579 and 905,384 | | | | | |
| Shares, Respectively) | | | (51,993 | ) | | (37,241 | ) | | (33,096 | ) |
| | | | | | | | | | | |
| TOTAL SHAREHOLDERS' EQUITY | | | 886,201 | | | 755,989 | | | 736,397 | |
| | | | | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,590,869 | | | $ 1,018,356 | | | $ 1,115,892 | |
| DEVRY INC. |
CONSOLIDATED STATEMENTS OF INCOME |
| (Dollars in Thousands Except for Per Share Amounts) |
| (Unaudited) |
| PRELIMINARY |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | For The Quarter | | | For The Nine Months |
| | | | | | Ended March 31, | | | Ended March 31, |
| | | | | | | | | | | | | |
| | | | | | 2009 | | 2008 | | | 2009 | | 2008 |
| | | | | | | | | | | | | |
| REVENUES: | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Tuition | | | | $360,629 | | | $265,253 | | | | $981,800 | | | $746,169 | |
| Other Educational | | | | 31,253 | | | 25,720 | | | | 83,414 | | | 68,859 | |
| | | | | | | | | | | | | |
| | Total Revenues | | | 391,882 | | | 290,973 | | | | 1,065,214 | | | 815,028 | |
| | | | | | | | | | | | | |
| OPERATING COSTS AND EXPENSES: | | | | | | | | |
| | | | | | | | | | | | | |
| Cost of Educational Services | | 178,201 | | | 130,846 | | | | 484,921 | | | 375,761 | |
| Loss on Real Estate Transactions | 3,977 | | | - | | | | 3,977 | | | 3,743 | |
| Student Services and Administrative Expense | 137,917 | | | 109,576 | | | | 395,177 | | | 304,138 | |
| | | | | | | | | | | | | |
| | Total Operating Costs and Expenses | 320,095 | | | 240,422 | | | | 884,075 | | | 683,642 | |
| | | | | | | | | | | | | |
| Operating Income | | | | 71,787 | | | 50,551 | | | | 181,139 | | | 131,386 | |
| | | | | | | | | | | | | |
| INTEREST AND OTHER: | | | | | | | | | | |
| Interest Income | | | | 776 | | | 2,823 | | | | 4,628 | | | 8,122 | |
| Interest Expense | | | | (484 | ) | | (99 | ) | | | (2,013 | ) | | (418 | ) |
| Net Investment Gain (Loss) | | 970 | | | - | | | | (748 | ) | | - | |
| | | | | | | | | | | | | |
| | Net Interest and Other Income | 1,262 | | | 2,724 | | | | 1,867 | | | 7,704 | |
| | | | | | | | | | | | | |
| Income Before Income Taxes | | | 73,049 | | | 53,275 | | | | 183,006 | | | 139,090 | |
| | | | | | | | | | | | | |
| Income Tax Provision | | | | 22,163 | | | 14,957 | | | | 54,425 | | | 38,124 | |
| | | | | | | | | | | | | |
| NET INCOME | | | | $ 50,886 | | | $ 38,318 | | | | $ 128,581 | | | $ 100,966 | |
| | | | | | | | | | | | | |
| EARNINGS PER COMMON SHARE | | | | | | | | |
| Basic | | | | | $ 0.71 | | | $ 0.54 | | | | $ 1.80 | | | $ 1.42 | |
| Diluted | | | | $ 0.70 | | | $ 0.53 | | | | $ 1.77 | | | $ 1.40 | |
| | | | | | | | | | | | | |
| Cash Dividend Declared per Common Share | $ - | | | $ - | | | | $ 0.08 | | | $ 0.06 | |
| DEVRY INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Dollars in Thousands) |
| (Unaudited) |
| PRELIMINARY |
| | | | | | | | | For The Nine Months |
| | | | | | | | Ended March 31, |
| | | | | | | | 2009 | | 2008 |
| | | | | | | | | | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
| Net Income | | | | | $128,581 | | | $100,966 | |
| Adjustments to Reconcile Net Income to Net | | | | |
| Cash Provided by Operating Activities: | | | | | |
| | | | | | | | | | |
| | Stock-Based Compensation Charge | | 6,513 | | | 4,287 | |
| | Depreciation | | | | | 29,480 | | | 25,997 | |
| | Amortization | | | | | 6,897 | | | 4,018 | |
| | Provision for Refunds and Uncollectible Accounts | | 53,103 | | | 42,197 | |
| | Deferred Income Taxes | | | | 83 | | | (6,880 | ) |
| | Loss on Disposals of Land, Buildings and Equipment | 2,297 | | | 3,760 | |
| | Unrealized Net Loss on Investments | | 2,014 | | | - | |
| | Changes in Assets and Liabilities, Net of Effects from | | | |
| | Acquisitions of Businesses: | | | | | |
| | | Restricted Cash | | | | (18,012 | ) | | (8,591 | ) |
| | | Accounts Receivable | | | | (148,927 | ) | | (116,582 | ) |
| | | Prepaid Expenses And Other | | | (2,324 | ) | | (10,959 | ) |
| | | Accounts Payable | | | | (5,834 | ) | | 2,527 | |
| | | Accrued Salaries, Wages, Benefits and Expenses | 18,250 | | | 1,593 | |
| | | Advance Tuition Payments | | | 4,696 | | | 6,985 | |
| | | Deferred Tuition Revenue | | | 211,115 | | | 156,004 | |
| | | | | | | | | | |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | | 287,932 | | | 205,322 | |
| | | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
| Capital Expenditures | | | | | (50,708 | ) | | (37,392 | ) |
| Net Proceeds from Sales of Land and Building | | - | | | 52,571 | |
| Payment for Purchase of Business, Net of Cash Acquired | (287,462 | ) | | (27,590 | ) |
| Marketable Securities Purchased | | | (49 | ) | | (246,278 | ) |
| Marketable Securities-Maturities and Sales | | - | | | 184,854 | |
| | | | | | | | | | |
| NET CASH USED IN INVESTING ACTIVITIES | | (338,219 | ) | | (73,835 | ) |
| | | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
| Proceeds from Exercise of Stock Options | | 11,048 | | | 15,487 | |
| Reissuance of Treasury Stock | | | | 1,805 | | | 787 | |
| Repurchase of Common Stock for Treasury | | (15,703 | ) | | (20,206 | ) |
| Cash Dividend Paid | | | | | (10,015 | ) | | (7,840 | ) |
| Excess Tax Benefit from Stock-Based Payments | | 3,350 | | | 2,865 | |
| Borrowings Under Collateralized Line of Credit | | 46,306 | | | - | |
| Repayments Under Collateralized Line of Credit | | (1,243 | ) | | - | |
| Borrowings Under Revolving Credit Facility | | 230,000 | | | 25,000 | |
| Repayments Under Revolving Credit Facility | | (140,000 | ) | | (26,895 | ) |
| | | | | | | | | | |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 125,548 | | | (10,802 | ) |
| | | | | | | | | | |
| Effects of Exchange Rate Differences | | | | 2,519 | | | (260 | ) |
| | | | | | | | | | |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | | 77,780 | | | 120,425 | |
| | | | | | | | | | |
| Cash and Cash Equivalents at Beginning of Period | | 217,199 | | | 129,155 | |
| | | | | | | | | | |
| Cash and Cash Equivalents at End of Period | | | $294,979 | | | $249,580 | |
| DEVRY INC. |
SEGMENT INFORMATION |
| (Dollars in Thousands) |
| (Unaudited) |
| PRELIMINARY |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | For The Quarter | | For The Nine Months |
| | | | Ended March 31, | | Ended March 31, |
| | | | | | | | Increase | | | | | | Increase |
| | | | 2009 | | 2008 | | (Decrease) | | 2009 | | 2008 | | (Decrease) |
| | | | | | | | | | | | | | |
| REVENUES: | | | | | | | | | | | | | |
| DeVry University | | | $ 264,324 | | | $ 222,609 | | | 18.7 | % | | $ 748,671 | | | $ 630,768 | | | 18.7 | % |
| Medical and Healthcare | | 105,013 | | | 45,885 | | | 128.9 | % | | 256,270 | | | 125,711 | | | 103.9 | % |
| Professional and Training | | 22,545 | | | 22,479 | | | 0.3 | % | | 60,273 | | | 58,549 | | | 2.9 | % |
| | | | | | | | | | | | | | |
| Total Consolidated Revenues | | 391,882 | | | 290,973 | | | 34.7 | % | | 1,065,214 | | | 815,028 | | | 30.7 | % |
| | | | | | | | | | | | | | |
| OPERATING INCOME: | | | | | | | | | | | | |
| DeVry University | | | 39,492 | | | 27,370 | | | 44.3 | % | | 99,615 | | | 71,151 | | | 40.0 | % |
| Medical and Healthcare | | 26,115 | | | 14,464 | | | 80.6 | % | | 68,132 | | | 41,327 | | | 64.9 | % |
| Professional and Training | | 9,524 | | | 10,930 | | | -12.9 | % | | 21,773 | | | 24,662 | | | -11.7 | % |
| Reconciling Items: | | | | | | | | | | | | | |
| Amortization Expense | | (2,958 | ) | | (1,513 | ) | | 95.5 | % | | (6,793 | ) | | (3,914 | ) | | 73.6 | % |
| Depreciation and Other | | (386 | ) | | (700 | ) | | -44.9 | % | | (1,588 | ) | | (1,840 | ) | | -13.7 | % |
| | | | | | | | | | | | | | |
| Total Consolidated Operating Income | 71,787 | | | 50,551 | | | 42.0 | % | | 181,139 | | | 131,386 | | | 37.9 | % |
| | | | | | | | | | | | | | |
| INTEREST AND OTHER: | | | | | | | | | | | | |
| Interest Income | | | 776 | | | 2,823 | | | -72.5 | % | | 4,628 | | | 8,122 | | | -43.0 | % |
| Interest Expense | | | (484 | ) | | (99 | ) | | 388.9 | % | | (2,013 | ) | | (418 | ) | | 381.6 | % |
| Net Investment Gain (Loss) | 970 | | | - | | | NM | | | (748 | ) | | - | | | NM | |
| | | | | | | | | | | | | | |
| Net Interest and Other Income | 1,262 | | | 2,724 | | | ($1,462 | ) | | 1,867 | | | 7,704 | | | ($5,837 | ) |
| | | | | | | | | | | | | | |
| Total Consolidated Income before Income Taxes | $ 73,049 | | | $ 53,275 | | | 37.1 | % | | $ 183,006 | | | $ 139,090 | | | 31.6 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| DeVry executed certain real estate transactions in the three and nine month periods ended March 31, 2009 and 2008, which resulted in significant lease termination charges and/or losses on the sale of facilities. The following table illustrates the effects of the real estate transactions on DeVry’s operating income. Management believes that the non-GAAP disclosure of net income and earnings per share provides investors with useful supplemental information regarding the underlying business trends and performance of DeVry’s ongoing operations and are useful for period-over-period comparisons of such operations given the discrete nature of the real estate transactions. DeVry uses these supplemental financial measures internally in its budgeting process. However, the non-GAAP financial measures should be viewed in addition to, and not as a substitute for, DeVry’s reported results prepared in accordance with GAAP. The following table reconciles these items to the relevant GAAP information: |
| | | | | | | | | | | | | | |
| | | | For The Quarter | | For The Nine Months |
| | | | Ended March 31, | | Ended March 31, |
| | | | | | | | Increase | | | | | | Increase |
| | | | 2009 | | 2008 | | (Decrease) | | 2009 | | 2008 | | (Decrease) |
| | | | | | | | | | | | | | |
| DeVry University Operating Income | $ 39,492 | | | $ 27,370 | | | 44.3 | % | | $ 99,615 | | | $ 71,151 | | | 40.0 | % |
| Loss on Real Estate Transactions | 3,977 | | | - | | | NM | | | 3,977 | | | 3,743 | | | NM | |
| DeVry University Operating Income | | | | | | | | |
| Excluding Loss on Real Estate Transactions | $ 43,469 | | | $ 27,370 | | | 58.8 | % | | $ 103,592 | | | $ 74,894 | | | 38.3 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| The following table displays the pro forma results of operations for the Medical and Healthcare segment as if U.S. Education was a part of the Company's business for the entire three and nine month periods ended March 31, 2009 and 2008. This non-GAAP disclosure of operating results is not preferable to GAAP disclosure but is shown as a supplement to such disclosure to aid comparability between the quarters. |
| | | | | | | | | | | | | | |
| | | | For The Quarter | | For The Nine Months |
| | | | Ended March 31, | | Ended March 31, |
| | | | | | | | Increase | | | | | | Increase |
| | | | 2009 | | 2008 | | (Decrease) | | 2009 | | 2008 | | (Decrease) |
| | | | | | | | | | | | | | |
| Medical and Healthcare Revenue as Reported | $105,013 | | | $45,885 | | | 128.9 | % | | $256,270 | | | $125,711 | | | 103.9 | % |
| U.S. Education Revenue (1) | | - | | | 36,685 | | | NM | | | 35,907 | | | 105,178 | | | NM | |
| Pro forma Medical and Healthcare Revenue | $105,013 | | | $82,570 | | | 27.2 | % | | $292,177 | | | $230,889 | | | 26.5 | % |
| | | | | | | | | | | | | | |
| Medical and Healthcare Operating Income as Reported | $26,115 | | | $14,464 | | | 80.6 | % | | $68,132 | | | $41,327 | | | 64.9 | % |
| U.S. Education Operating Income as Adjusted (1) (2) | - | | | 5,240 | | | NM | | | 5,350 | | | 13,207 | | | NM | |
| Pro forma Medical and Healthcare Operating Income | $26,115 | | | $19,704 | | | 32.5 | % | | $73,482 | | | $54,534 | | | 34.7 | % |
| | | | | | | | | | | | | | |
| (1) For the portion of the period not owned by DeVry. U.S. Education, which was acquired on September 18, 2008, contributed $45.5 million and $93.5 million of revenue growth in the third quarter and first nine months of fiscal year 2009, respectively. |
| (2) Adjusted for non-recurring acquisition related charges in the nine months ended March 31, 2009, along with an allocation of corporate charges in the nine months ended March 31, 2009 and 2008. |
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5947873&lang=en
CONTACT:
DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 574-1949
or
Media Contact:
Larry Larsen
llarsen@sardverb.com
(312) 895-4717
