Exhibit 99.1
DeVry Inc. Announces Record First-Quarter Results
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--October 27, 2009--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2010 first-quarter ended September 30, 2009. DeVry also reported enrollment results at Ross University and Fanor, and graduate coursetakers at DeVry University. DeVry’s continued execution of its growth and diversification strategy and its focus on academic quality produced the following financial results:
Three Months Ended September 30, 2009:
- Revenues increased 42 percent to a record $431 million.
- Operating income increased 70 percent to $79.4 million.
- Net income increased 57 percent to $54.7 million.
- Diluted earnings per share increased 58 percent to $0.76.
“Our financial results this quarter were driven largely by exceptional revenue growth,” said Daniel Hamburger, DeVry’s president and chief executive officer. “Our institutions continue to experience strong enrollment and student retention, as evidenced by our results at Keller, Ross and Fanor. These financial results provide the resources for us to continue to make investments that enhance academic quality, improve student services, and expand access to education.”
Business Highlights
Business, Technology, and Management Segment
DeVry University
For the September 2009 session, total graduate coursetakers at DeVry University including its Keller Graduate School of Management, increased 15.2 percent to a record 20,496 versus 17,799 for the same period in 2008. DeVry University’s fall 2009 undergraduate enrollment and November session graduate enrollment will be reported on Dec. 8, 2009.
DeVry University launched a new campaign to increase awareness of the re-organization of its academic degree programs into five distinct colleges. The multimedia campaign began running in September and will continue to run throughout the rest of the fiscal year. Consistent with its real estate optimization strategy, DeVry University announced plans to co-locate its Jacksonville, Fla., campus with Chamberlain College of Nursing by the end of the second quarter.
Medical and Healthcare Segment
Ross University
In the 2009 September term, new students increased 9.5 percent to 666, compared to 608 students last year. Total students increased 9.1 percent to 4,601 compared to 4,219 students in the same term last year. Ross University continues to make investments in its facilities, clinical affiliations, and student services to respond to continued strong demand for medical and veterinary medical education.
Chamberlain College of Nursing
In an articulation agreement with Keller Graduate School of Management, Chamberlain will launch a program where graduates of Chamberlain’s Master of Science in Nursing (MSN) program will receive course credits toward obtaining a Master of Business Administration (MBA) degree from Keller.
Chamberlain also announced plans to co-locate its campus with DeVry University in Crystal City, Va., and Chicago, and is targeting openings of those locations in summer 2010, pending approvals.
Apollo College/Western Career College (U.S. Education)
Apollo College and Western Career College launched their first ever online degree programs this September. Apollo College launched two online bachelor’s degree completion programs, and Western Career College launched four online associate degree programs. In addition, Apollo College opened its new campus in Reno, Nev., with a registered nursing degree program.
Professional Education Segment
Becker Professional Education
The Professional Education segment continued to be affected negatively by the impact of the soft economy and slowdown in hiring within the accounting and finance professions. Although conditions are not expected to materially improve throughout 2010, Becker Professional Education remains well-positioned for long-term growth. Becker’s CPA line of products continues to be a valued resource for key accounting firms, and its Stalla Review for CFA® Exams division now has affiliations with 15 of the top 20 CFA societies around the world.
Other Educational Services Segment
Advanced Academics
During the quarter, Advanced Academics (AAI) further expanded its presence in key states, such as California, where it established its first service contract with a charter school in Sonoma. In addition, it signed contracts to provide online educational content to 10 new school districts in five states across the country.
Fanor
For the September 2009 term, new students increased 13.6 percent to 2,151, compared to 1,893 students last year. Total students increased 10.6 percent to 11,532 compared to 10,424 students in the same term last year. Fanor continues to expand its curriculum and has received approval to launch a psychology degree program at its Fortaleza campus beginning next semester.
Balance Sheet/Cash Flow
For the first quarter, DeVry generated $177.2 million of operating cash flow, driven by the continuation of strong operating results and working capital management. As of September 30, 2009, cash, marketable securities and investment balances totaled $340.5 million and outstanding borrowings were $104.8 million.
Share Repurchase Plan
During the quarter, DeVry repurchased approximately 235,000 shares of its common stock at a cost of approximately $11.7 million. As of Sept. 30, 2009, DeVry had repurchased more than $45 million of its $50 million program at an average cost of $48.12 per share, and expects to complete the current share repurchase program more than a year in advance of the authorization period.
Conclusion
“Fiscal 2010 is off to a solid start and we are confident that this will be another strong year for us,” said Hamburger. “DeVry will continue to focus on the development of quality programs and services for our students and on opportunities to leverage synergies across our institutions for future growth.”
Conference Call and Webcast Information
DeVry will host a conference call on Oct. 27, 2009, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2010 first-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) 383-8003 (domestic) or (617) 597-5330 (international). DeVry will also broadcast the conference call live via the Internet. Interested parties may access the webcast through the Investor Relations section of the company's Web site, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=2064148. (Because of its length, this URL may need to copied and pasted into your Internet browser’s address field. Remove the extra space if one exists.) 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 Nov. 10, 2009. To access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode: 64497249. To access the Webcast replay, please visit DeVry’s Web site.
About DeVry Inc.
DeVry Inc. (NYSE: DV, member S&P 500 Index) is the parent organization of DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing, Apollo College, Western Career College, Becker Professional Education, 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 education to middle and high school students and school districts in the U.S. Ross University offers doctoral degree programs through its schools of Medicine and Veterinary Medicine. Chamberlain College of Nursing offers associate, bachelor's, and master’s degree programs in nursing. Apollo College and Western Career College prepare students for careers in healthcare through certificate, associate and bachelor’s degree programs. Becker Professional Education is a global leader in professional education serving the accounting, finance and project management professions. Based in Brazil, Fanor offers degree programs in business management, law and engineering through its four schools: Faculdades Nordeste, Faculdade Ruy Barbosa, Faculdade FTE and 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, 2009 and filed with the Securities and Exchange Commission on August 26, 2009.
Selected Operating Data (in thousands, except per share data)
First Quarter | ||||||||||
FY 2010 | FY 2009 | Change | ||||||||
Revenues | $431,110 | $303,717 | +41.9 | % | ||||||
Operating Income | $79,385 | $46,812 | +69.6 | % | ||||||
Net Income | $54,727 | $34,830 | +57.1 | % | ||||||
Earnings per Share (diluted) | $0.76 | $0.48 | +58.3 | % | ||||||
Number of common shares (diluted) | 72,141 | 72,560 | -0.6 | % |
September 2009 Enrollment Results
September 2009 | September 2008 | Change | ||||||||
DeVry University, including Keller Graduate School of Management | ||||||||||
Graduate coursetakers (1)(2) | 20,496 | 17,799 | +15.2 | % | ||||||
Ross University | ||||||||||
New students | 666 | 608 | +9.5 | % | ||||||
Total students | 4,601 | 4,219 | +9.1 | % | ||||||
Fanor | ||||||||||
New students | 2,151 | 1,893 | +13.6 | % | ||||||
Total students | 11,532 | 10,424 | +10.6 | % |
Graduate Employment Statistics | Period | Percent Employed 3 | Average Salary | ||||||||
DeVry University (Undergraduate)(3) | Jun 08-Oct 08-Feb 09 | 88.8 | % | $45,364 |
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 Three-term average; includes graduates of associate and bachelor’s degree programs
Chart 1: DeVry Inc. 2009 and 2010 Announcements & Events
November 11, 2009 | DeVry Inc. Annual Shareholder’s Meeting | |||
November 16-17, 2009 | DeVry Education Day; Phoenix, AZ | |||
December 8, 2009 | Most recent enrollment results; press release, no conference call | |||
DeVry University (Undergraduate and Graduate) Chamberlain College of Nursing Apollo College and Western Career College (U.S. Education) | ||||
January 26, 2010 | Fiscal 2010 Second Quarter Earnings | |||
April 22, 2010 | Fiscal 2010 Third Quarter Earnings and Spring Enrollment | |||
DeVry University (Undergraduate and Graduate) Chamberlain College of Nursing Ross University Apollo College and Western Career College (U.S. Education) Fanor | ||||
August 12, 2010 | Fiscal 2010 Year-End Earnings and Summer Enrollment | |||
DeVry University, (Undergraduate and Graduate) Chamberlain College of Nursing Ross University Apollo College and Western Career College (U.S. Education) | ||||
October 26, 2010 | Fiscal 2011 First Quarter Earnings and Enrollment | |||
DeVry University (graduate) Ross University Fanor | ||||
December 9, 2010 | Most recent enrollment results; press release, no conference call | |||
DeVry University (Undergraduate and Graduate) Chamberlain College of Nursing Apollo College and Western Career College (U.S. Education) |
DEVRY INC. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Dollars in Thousands) | |||||||||
(Unaudited) | |||||||||
PRELIMINARY | |||||||||
September 30, | June 30, | September 30, | |||||||
2009 | 2009 | 2008 | |||||||
ASSETS | |||||||||
Current Assets | |||||||||
Cash and Cash Equivalents | $ 279,243 | $ 165,202 | $ 183,059 | ||||||
Marketable Securities and Investments | 61,253 | 60,174 | 2,136 | ||||||
Restricted Cash | 10,907 | 5,339 | 8,564 | ||||||
Accounts Receivable, Net | 156,973 | 104,413 | 154,654 | ||||||
Deferred Income Taxes, Net | 20,223 | 21,562 | 15,635 | ||||||
Prepaid Expenses and Other | 32,602 | 28,756 | 28,279 | ||||||
Total Current Assets | 561,201 | 385,446 | 392,327 | ||||||
Land, Buildings and Equipment | |||||||||
Land | 53,973 | 53,694 | 51,193 | ||||||
Buildings | 255,645 | 250,542 | 231,812 | ||||||
Equipment | 339,793 | 328,637 | 288,731 | ||||||
Construction In Progress | 14,124 | 10,587 | 5,536 | ||||||
663,535 | 643,460 | 577,272 | |||||||
Accumulated Depreciation and Amortization | (340,158 | ) | (335,889 | ) | (316,624 | ) | |||
Land, Buildings and Equipment, Net | 323,377 | 307,571 | 260,648 | ||||||
Other Assets | |||||||||
Intangible Assets, Net | 201,328 | 203,195 | 140,632 | ||||||
Goodwill | 514,448 | 512,568 | 523,395 | ||||||
Perkins Program Fund, Net | 13,450 | 13,450 | 13,450 | ||||||
Investments | - | - | 57,128 | ||||||
Other Assets | 14,674 | 12,069 | 11,176 | ||||||
Total Other Assets | 743,900 | 741,282 | 745,781 | ||||||
TOTAL ASSETS | $ 1,628,478 | $ 1,434,299 | $ 1,398,756 |
DEVRY INC. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Dollars in Thousands) | |||||||||
(Unaudited) | |||||||||
PRELIMINARY | |||||||||
September 30, | June 30, | September 30, | |||||||
2009 | 2009 | 2008 | |||||||
LIABILITIES | |||||||||
Current Liabilities | |||||||||
Current Portion of Debt | $ 104,841 | $ 104,811 | $ 145,876 | ||||||
Accounts Payable | 86,642 | 71,564 | 81,153 | ||||||
Accrued Salaries, Wages and Benefits | 56,726 | 74,174 | 43,786 | ||||||
Accrued Expenses | 63,440 | 39,162 | 42,966 | ||||||
Advance Tuition Payments | 26,661 | 27,642 | 19,964 | ||||||
Deferred Tuition Revenue | 217,874 | 74,664 | 173,953 | ||||||
Total Current Liabilities | 556,184 | 392,017 | 507,698 | ||||||
Non-Current Liabilities | |||||||||
Revolving Loan | - | 20,000 | 20,000 | ||||||
Deferred Income Taxes, Net | 51,366 | 51,895 | 33,526 | ||||||
Deferred Rent and Other | 38,909 | 40,257 | 29,342 | ||||||
Total Non-current Liabilities | 90,275 | 112,152 | 82,868 | ||||||
TOTAL LIABILITIES | 646,459 | 504,169 | 590,566 | ||||||
NON-CONTROLLING INTEREST | 3,739 | 3,188 | - | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Common Stock, $0.01 par value, 200,000,000 Shares Authorized; | |||||||||
71,067,000, 71,233,000 and 71,484,000 Shares issued | |||||||||
and outstanding at September 30, 2009, June 30, 2009 | |||||||||
and September 30, 2008, respectively. | 729 | 729 | 725 | ||||||
Additional Paid-in Capital | 201,935 | 197,096 | 174,236 | ||||||
Retained Earnings | 845,686 | 791,677 | 672,331 | ||||||
Accumulated Other Comprehensive Income (Loss) | 11,131 | 7,157 | (2,557 | ) | |||||
Treasury Stock, at Cost (1,894,000, 1,663,000 and 969,000 | |||||||||
Shares, Respectively) | (81,201 | ) | (69,717 | ) | (36,545 | ) | |||
TOTAL SHAREHOLDERS' EQUITY | 978,280 | 926,942 | 808,190 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,628,478 | $ 1,434,299 | $ 1,398,756 |
DEVRY INC. | ||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||
(Dollars in Thousands Except for Per Share Amounts) | ||||||
(Unaudited) | ||||||
PRELIMINARY | ||||||
For The Quarter | ||||||
Ended September 30, | ||||||
2009 | 2008 | |||||
REVENUES: | ||||||
Tuition | $ 401,371 | $ 279,127 | ||||
Other Educational | 29,739 | 24,590 | ||||
Total Revenues | 431,110 | 303,717 | ||||
OPERATING COSTS AND EXPENSES: | ||||||
Cost of Educational Services | 196,483 | 139,613 | ||||
Student Services and Administrative Expense | 155,242 | 117,292 | ||||
Total Operating Costs and Expenses | 351,725 | 256,905 | ||||
Operating Income | 79,385 | 46,812 | ||||
INTEREST AND OTHER (EXPENSE) INCOME: | ||||||
Interest Income | 500 | 2,142 | ||||
Interest Expense | (422 | ) | (353 | ) | ||
Net Investment Gain | 831 | - | ||||
Net Interest and Other (Expense) Income | 909 | 1,789 | ||||
Income Before Income Taxes | 80,294 | 48,601 | ||||
Income Tax Provision | 25,723 | 13,771 | ||||
NET INCOME | 54,571 | 34,830 | ||||
Add: Net Loss Attributable to Noncontrolling Interest | 156 | - | ||||
NET INCOME ATTRIBUTABLE TO DEVRY INC. | $ 54,727 | $ 34,830 | ||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE | ||||||
TO DEVRY INC. SHAREHOLDERS | ||||||
Basic | $ 0.77 | $ 0.49 | ||||
Diluted | $ 0.76 | $ 0.48 |
DEVRY INC. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Dollars in Thousands) | ||||||
(Unaudited) | ||||||
PRELIMINARY | ||||||
For The Three Months | ||||||
Ended September 30, | ||||||
2009 | 2008 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net Income | $54,571 | $34,830 | ||||
Adjustments to Reconcile Net Income to Net | ||||||
Cash Provided by Operating Activities: | ||||||
Stock-Based Compensation Charge | 3,622 | 3,110 | ||||
Depreciation | 11,993 | 8,825 | ||||
Amortization | 3,959 | 952 | ||||
Provision for Refunds and Uncollectible Accounts | 23,779 | 15,985 | ||||
Deferred Income Taxes | 581 | (923 | ) | |||
Loss on Disposals of Land, Buildings and Equipment | 331 | 24 | ||||
Unrealized Net Gain on Investments | (831 | ) | - | |||
Changes in Assets and Liabilities, Net of Effects from | ||||||
Acquisitions of Businesses: | ||||||
Restricted Cash | (5,560 | ) | (4,313 | ) | ||
Accounts Receivable | (75,885 | ) | (86,442 | ) | ||
Prepaid Expenses And Other | (8,733 | ) | 5,835 | |||
Accounts Payable | 15,054 | 9,091 | ||||
Accrued Salaries, Wages, Expenses and Benefits | 12,173 | 2,706 | ||||
Advance Tuition Payments | (1,058 | ) | (1,826 | ) | ||
Deferred Tuition Revenue | 143,210 | 108,964 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 177,206 | 96,818 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Capital Expenditures | (26,482 | ) | (10,638 | ) | ||
Payments for Purchases of Businesses, Net of Cash Acquired | - | (286,254 | ) | |||
Marketable Securities Purchased | (12 | ) | (13 | ) | ||
Other | (7 | ) | - | |||
NET CASH USED IN INVESTING ACTIVITIES | (26,501 | ) | (296,905 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from Exercise of Stock Options | 1,148 | 2,078 | ||||
Proceeds from Stock issued Under Employee Stock Purchase Plan | 238 | 1,340 | ||||
Repurchase of Common Stock for Treasury | (11,653 | ) | - | |||
Cash Dividends Paid | (5,716 | ) | (4,282 | ) | ||
Excess Tax Benefit from Stock-Based Payments | 139 | 420 | ||||
Borrowings Under Revolving Credit Facility | 40,000 | 120,000 | ||||
Repayments Under Revolving Credit Facility | (60,000 | ) | - | |||
Borrowings Under Collateralized Line of Credit | 91 | 45,876 | ||||
Repayments Under Collateralized Line of Credit | (61 | ) | - | |||
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (35,814 | ) | 165,432 | |||
Effects of Exchange Rate Differences | (850 | ) | 515 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 114,041 | (34,140 | ) | |||
Cash and Cash Equivalents at Beginning of Year | 165,202 | 217,199 | ||||
Cash and Cash Equivalents at End of Year | $279,243 | $183,059 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||
Cash Paid (Refunded) During the Period for: | ||||||
Interest | $269 | $51 | ||||
Income Taxes, Net | 716 | (6,868 | ) | |||
Non-cash Investing Activity: | ||||||
Accretion of Noncontrolling Interest Put Option | 707 | - |
DEVRY INC. | |||||||||
SEGMENT INFORMATION | |||||||||
(Dollars in Thousands) | |||||||||
(Unaudited) | |||||||||
PRELIMINARY | |||||||||
For The Quarter | |||||||||
Ended September 30, | |||||||||
Increase | |||||||||
2009 | 2008 | (Decrease) | |||||||
REVENUES: | |||||||||
Business, Technology and Management | $ 283,506 | $ 228,747 | 23.9 | % | |||||
Medical and Healthcare | 117,158 | 53,278 | 119.9 | % | |||||
Professional Education | 19,161 | 19,759 | -3.0 | % | |||||
Other Educational Services | 11,285 | 1,933 | 483.8 | % | |||||
Total Consolidated Revenues | 431,110 | 303,717 | 41.9 | % | |||||
OPERATING INCOME: | |||||||||
Business, Technology and Management | 56,079 | 27,003 | 107.7 | % | |||||
Medical and Healthcare | 27,139 | 15,351 | 76.8 | % | |||||
Professional Education | 6,444 | 7,723 | -16.6 | % | |||||
Other Educational Services | (6,522 | ) | (1,715 | ) | 280.3 | % | |||
Reconciling Items: | |||||||||
Amortization Expense | (3,914 | ) | (916 | ) | 327.3 | % | |||
Depreciation and Other Corporate | 159 | (634 | ) | NM | |||||
Total Consolidated Operating Income | 79,385 | 46,812 | 69.6 | % | |||||
INTEREST AND OTHER (EXPENSE) INCOME: | |||||||||
Interest Income | 500 | 2,142 | -76.7 | % | |||||
Interest Expense | (422 | ) | (353 | ) | 19.5 | % | |||
Net Investment Gain | 831 | - | NM | ||||||
Net Interest and Other (Expense) Income | 909 | 1,789 | -49.2 | % | |||||
Total Consolidated Income before Income Taxes | $ 80,294 | $ 48,601 | 65.2 | % | |||||
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 month periods ended September 30, 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 | |||||||||
Ended September 30, | |||||||||
2009 | 2008 | Increase | |||||||
Medical and Healthcare Revenue as Reported | $117,158 | $53,278 | 119.9 | % | |||||
U.S. Education Revenue (1) | - | 35,907 | NM | ||||||
Pro forma Medical and Healthcare Revenue | $117,158 | $89,185 | 31.4 | % | |||||
Medical and Healthcare Operating Income as Reported | $27,139 | $15,351 | 76.8 | % | |||||
U.S. Education Operating Income as Adjusted (1) (2) | - | 5,350 | NM | ||||||
Pro forma Medical and Healthcare Operating Income | $27,139 | $20,701 | 31.1 | % |
(1) For the portion of the period not owned by DeVry. U.S. Education, which was acquired on | |
September 18, 2008, contributed $47.1 million of revenue growth in the first quarter ended | |
September 30, 2009. | |
| |
(2) Adjusted for non-recurring acquisition related charges along with an allocation of | |
corporate charges in the first quarter ended September 30, 2008. | |
|
CONTACT:
DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 574-1949
or
Media Contact:
Larry Larsen
llarsen@sardverb.com
(312) 895-4717