Exhibit 99.1
DeVry Inc. Announces Fourth-Quarter and Full-Year Results
- DeVry University’s total enrollments increased 22 percent driven by continued focus on academic quality
- Chamberlain opened two new campuses in July; expects to open Houston campus in spring 2011
- Becker, Advanced Academics and DeVry Brasil to be led by Steve Riehs beginning October 1
DOWNERS GROVE, Ill.--(BUSINESS WIRE)--August 12, 2010--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2010 fourth-quarter and full year ended June 30, 2010. DeVry also reported enrollment results at DeVry University, including its Keller Graduate School of Management (KGSM), Chamberlain College of Nursing, Ross University, and the Carrington Colleges Group (formerly Apollo College and Western Career College). DeVry’s strong performance was driven by continued solid execution of its growth and diversification strategy and unwavering focus on academic quality and successful student outcomes.
Three Months Ended June 30
- Revenues increased 28 percent to $506.7 million.
- Net income increased 93 percent to $71.6 million.
- Fully diluted earnings per share increased 94 percent to $0.99.
Twelve Months Ended June 30
- Fiscal 2010 revenues increased 31 percent to $1,915 million.
- Net income increased 69 percent to $279.9 million.
- Fully diluted earnings per share increased about 70 percent to $3.87.
“Fiscal 2010 was a strong year driven by our ongoing investments in quality,” said Daniel Hamburger, DeVry’s president and chief executive officer. “These solid financial results are an outgrowth of our strong academic results and will provide the resources to support our investments in academic quality, student services and capacity growth in the future.”
Business Highlights
Business, Technology, and Management Segment
DeVry University
DeVry University continued to achieve solid undergraduate enrollment growth with new summer enrollments increasing 9.9 percent to 20,935 compared to 19,057 last year. Total student enrollments were up 22 percent to 68,290 students versus 55,979 in the prior year.
Total graduate coursetakers including Keller Graduate School of Management totaled 22,103 in May 2010, up 17.4 percent compared to the same period in 2009. In July 2010 total coursetakers increased 17.6 percent to 21,165 from the prior year.
The total number of online undergraduate and graduate coursetakers was a record 70,088 in July 2010, an increase of 24.4 percent over July 2009.
Medical and Healthcare Segment
Ross University
Ross University School of Medicine (RUSM) continues to work to address capacity issues, in Dominica and through its Freeport location. In Dominica, its efforts are focused on making investments that enhance academic quality while opening up additional capacity. At the same time, RUSM is working with the Medical Board of California (MBC) to secure final approval for the Freeport location. RUSM expects its application to be considered at the MBC’s next meeting in November.
As previously announced, RUSM is temporarily moderating new enrollment growth while these initiatives are completed. As a result, new student enrollment decreased 39.5 percent to 340 in the May 2010 term at Ross University’s medical and veterinary medical schools, while total student enrollment rose to 4,542 students, an increase of 2.1 percent over the May 2009 term. Both figures were in-line with management’s outlook for the term.
Chamberlain College of Nursing
Chamberlain's new student enrollment in summer 2010 increased 55.1 percent to 2,416 students, compared to 1,558 students in summer 2009. Total student enrollment rose 65.2 percent to 7,108 students compared with 4,302 during the same period last year.
In July 2010, Chamberlain opened two new campuses in Arlington, Va., and Chicago, which are co-locations with DeVry University. It has submitted applications for a new location in Houston to be opened in spring 2011, pending approvals.
Chamberlain will launch a Registered Nurse (RN) to Master of Science in Nursing (MSN) program beginning in fall 2010.
Carrington Colleges Group
On June 30, Apollo College and Western Career College were renamed Carrington CollegeTM and Carrington College CaliforniaTM, respectively. The new names personify the quality programs each institution is known for and help current and prospective students better understand the relationship between these schools and the programs they offer.
New student enrollment for the four month period ending July 31 at the Carrington Colleges declined 2.7 percent to 4,291 compared with 4,411 last year. Total enrollment increased 5.5 percent to 11,234 students, compared with 10,644 on July 31 last year. New student enrollments during the period were impacted by a decline in inquiry volume in advance of the name change. However, inquiries are up versus prior year since the renaming took effect.
Eight out of nine eligible Carrington College campuses qualified for Honor Roll status during a reaffirmation of accreditation by the Accrediting Council of Independent Colleges and Schools (ACICS). In October 2010, Carrington College California will open a new campus in Pomona, Calif., which is a co-location with DeVry University.
Professional Education Segment
Becker Professional Education
Becker’s revenues grew 8.9 percent during the quarter and 0.8 percent for the year in spite of the continued softness in hiring in the accounting and financial services fields. Becker continued to expand its relationships with key accounting and financial partners and remains well-positioned for long-term growth.
During the quarter, Becker made a significant investment in the largest redevelopment effort of its course materials since 2003. This was done in preparation for changes in the 2011 CPA exam.
As previously announced, John Roselli will become president of Becker effective October 1, succeeding Thomas Vucinic, who is retiring after a long and distinguished career with the organization.
Other Educational Services Segment
DeVry Brasil
During the quarter, DeVry Brasil focused on further enhancing the quality of its student programs and services in the areas of academic support, tutoring, and student finance. DeVry Brasil made significant investments in its facilities and is looking at additional facility expansion opportunities in 2011.
Advanced Academics
Advanced Academics continued to make investments in its long term growth during the quarter despite ongoing budgetary issues in many of the school districts it serves. The impact of these state cutbacks along with the ongoing investments in its academic quality led to an operating loss during the quarter. It recently signed agreements with school districts in New York, Arizona, and Texas, for programs which will be rolled out during the coming year.
New Organizational Structure
Effective October 1, Steve Riehs will become president of a new organizational structure within DeVry, which will include Advanced Academics, Becker Professional Education, DeVry Brasil and International Business Development.
Balance Sheet/Cash Flow
For fiscal 2010, DeVry generated $391.5 million of operating cash flow, primarily driven by the continuation of strong operating results. As of June 30, 2010, cash, marketable securities and investment balances totaled $323.4 million with no outstanding debt.
Share Repurchase Plan
During the fourth quarter of fiscal 2010, DeVry repurchased 321,521 shares of its common stock at a cost of approximately $19.0 million, or $59.09 per share. As of June 30, 2010, 422,021 shares of DeVry stock have been purchased as part of the current program for a total of $25.4 million at an average cost of $60.11 per share.
DeVry’s board of directors has authorized a fourth share repurchase program, which allows the company to buy back up to $50 million of its common stock through June 30, 2012. The new program will commence upon completion of the existing $50 million program.
Conclusion
“In fiscal 2011, we will continue to build upon the investments we made last year in academic quality and student services,” said Hamburger. “These investments will further enhance the strong value propositions of our schools in the years to come and help us to achieve our vision of becoming the leading global provider of career-oriented educational services.”
Conference Call and Webcast Information
DeVry will host a conference call on August 12, 2010, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2010 fourth-quarter and year-end 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 866.730.5762 (domestic) or 857.350.1586 (international). Use passcode 81100685 or say "DeVry Call". DeVry will also broadcast the conference call live via the Internet. Interested parties may access the webcast or its replay through the Investor Relations section of the company's website, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=2683569.
Please access the website 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 August 19, 2010. To access the replay, dial 888.286.8010 (domestic) or 617.801.6888 (international), passcode: 21108788.
About DeVry Inc.
DeVry's purpose is to empower its students to achieve their educational and career goals. DeVry (NYSE: DV, member S&P 500 Index) is a global provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College, Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University Schools of Medicine and Veterinary Medicine. These institutions offer a wide array of programs in business, healthcare and technology and serve students in secondary through postsecondary education as well as accounting and finance professionals. For more information, please call 630.353.3800 or 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 DeVry'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)
| | Fourth Quarter |
| | FY 2010 | | FY 2009 | | Change |
| Revenues | | $506,674 | | $396,239 | | +27.9% |
| Net Income | | $71,576 | | $37,032 | | +93.3% |
| Earnings per Share (diluted) | | $0.99 | | $0.51 | | +94.1% |
| Number of common shares (diluted) | | 72,289 | | 72,198 | | +0.1% |
| | Fiscal Year |
| | FY 2010 | | FY 2009 | | Change |
| Revenues | | $1,915,181 | | $1,461,453 | | +31.0% |
| Net Income | | $279,909 | | $165,613 | | +69.0% |
| Earnings per Share (diluted) | | $3.87 | | $2.28 | | +69.7% |
| Number of common shares (diluted) | | 72,267 | | 72,516 | | (0.3)% |
Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule
DeVry executed certain real estate transactions in fiscal year 2009, which resulted in significant lease termination charges. Also, DeVry recorded a litigation settlement reserve in fiscal year 2009. The following table illustrates the effects of the real estate transactions and litigation reserve 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 are useful for period-over-period comparisons of such operations given the discrete nature of the real estate transactions and litigation settlement reserve. 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 (in thousands, except per share data):
| | Fourth Quarter | | Fiscal Year |
| | FY2010 | | FY2009 | | FY2010 | | FY2009 |
| Net Income | | $71,576 | | $37,032 | | $279,909 | | $165,613 |
| Earnings per Share (diluted) | | $0.99 | | $0.51 | | $3.87 | | $2.28 |
| Loss on Real Estate Transactions (net of tax) | | -- | | -- | | -- | | $2,543 |
| Effect on Earnings per Share (diluted) | | -- | | -- | | -- | | $0.03 |
| Litigation Settlement Reserve (net of tax) | | -- | | $3,131 | | -- | | $3,131 |
| Effect on Earnings per Share (diluted) | | -- | | $0.05 | | -- | | $0.05 |
| Net Income Excluding the Loss on Real | | | | | | | | |
| Estate Transactions and Litigation | | | | | | | | |
| Settlement Reserve (net of tax) | | $71,576 | | $40,163 | | $279,909 | | $171,287 |
| Earnings per Share Excluding the Loss on | | | | | | | | |
| Real Estate Transactions and Litigation Settlement Reserve(diluted) | | $0.99 | | $0.56 | | $3.87 | | $2.36 |
| | | | | | | | |
Summer 2010 Enrollment Results
| | 2010 | | 2009 | | % Change |
| DeVry University | | | | | | |
| Undergraduate(1) | | | | | | |
| New students | | 20.935 | | 19,057 | | +9.9% |
| Total students | | 68,290 | | 55,979 | | +22.0% |
| | | | | | |
| Graduate coursetakers(1)(2)(3) | | | | | | |
| May | | 22,103 | | 18,822 | | +17.4% |
| July | | 21,165 | | 17,991 | | +17.6% |
| | | | | | |
| Online coursetakers(2)(4) - July | | 70,088 | | 56,321 | | +24.4% |
| | | | | | |
| Chamberlain College of Nursing(1) | | | | | | |
| New students | | 2,416 | | 1,558 | | +55.1% |
| Total students(5) | | 7,108 | | 4,302 | | +65.2% |
| | | | | | |
| Ross University - May | | | | | | |
| New students | | 340 | | 562 | | (39.5)% |
| Total students | | 4,542 | | 4,448 | | +2.1% |
| | | | | | |
| The Carrington Colleges - July | | | | | | |
| New students | | 4,291 | | 4,411 | | (2.7)% |
| Total students | | 11,234 | | 10,644 | | +5.5% |
| | | | | | |
Employment Statistics | | | | | | |
| | Period | | Percent
Employed | | Average
Salary |
| DeVry University(5) | | Feb 09-Jun 09-Oct 09 | | 88.3% | | $43,605 |
| | | | | | |
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 who were active in the job market
Chart 1: DeVry Inc. Calendar 2010-11 Announcements & Events
| Oct. 26, 2010 | | Fiscal 2011 First Quarter Earnings and Enrollment |
| | |
| | DeVry University (graduate only) Ross University DeVry Brasil |
| | |
| Dec. 9, 2010 | | Most recent enrollment results; press release, no conference call |
| | |
| | DeVry University Chamberlain College of Nursing Carrington Colleges Group |
| | |
| Jan. 25, 2011 | | Fiscal 2011 Second Quarter Earnings (no enrollment) |
| | |
| Apr. 26, 2011 | | Fiscal 2011 Third Quarter Earnings and Spring Enrollment |
| | |
| | DeVry University Chamberlain College of Nursing Ross University Carrington Colleges Group DeVry Brasil |
| | |
| Aug. 11, 2011 | | Fiscal 2011 Year-End Earnings and Summer Enrollment |
| | |
| | DeVry University Chamberlain College of Nursing Ross University Carrington Colleges Group |
| | |
| Oct. 25, 2011 | | Fiscal 2012 First Quarter Earnings and Enrollment |
| | |
| | DeVry University (graduate only) Ross University DeVry Brasil |
| | |
| Dec. 6, 2011 | | Most recent enrollment results; press release, no conference call |
| | |
| | DeVry University Chamberlain College of Nursing Carrington Colleges Group |
| | |
Chart 2: Results of DeVry’s Diversification Strategy (2002-2009)
(See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6395821&lang=en)
| |
| DEVRY INC. |
| CONSOLIDATED BALANCE SHEETS |
| (Dollars in Thousands) |
| | | | | | | | | | | | | |
| PRELIMINARY |
| | | | | | | | | | | | |
| | | | | | | | | June 30, |
| | | | | | | | | 2010 | | | 2009 |
| | | | | | | | | | | | |
| ASSETS: | | | | | | | | | | | |
| | | | | | | | | | | | |
| Current Assets: | | | | | | | | | |
| | | | | | | | | | | | |
| | Cash and Cash Equivalents | | | | | $ | 307,702 | | | | $ | 165,202 | |
| | Marketable Securities and Investments | | | | | 15,666 | | | | | 60,174 | |
| | Restricted Cash | | | | | | | 2,102 | | | | | 5,339 | |
| | Accounts Receivable, Net | | | | | | 119,210 | | | | | 104,413 | |
| | Deferred Income Taxes, Net | | | | | | 22,340 | | | | | 21,562 | |
| | Prepaid Expenses and Other | | | | | | 32,627 | | | | | 28,756 | |
| | | | | | | | | | | | |
| | Total Current Assets | | | | | | 499,647 | | | | | 385,446 | |
| | | | | | | | | | | | |
| Land, Buildings and Equipment: | | | | | | | | |
| | | | | | | | | | | | |
| | Land | | | | | | | | 53,914 | | | | | 53,694 | |
| | Buildings | | | | | | | 283,044 | | | | | 250,542 | |
| | Equipment | | | | | | | 346,979 | | | | | 328,637 | |
| | Construction In Progress | | | | | | 38,188 | | | | | 10,587 | |
| | | | | | | | | | | | |
| | | | | | | | | | 722,125 | | | | | 643,460 | |
| | | | | | | | | | | | |
| | Accumulated Depreciation and Amortization | | | | | (333,988 | ) | | | | (335,889 | ) |
| | | | | | | | | | | | |
| | Land, Buildings and Equipment, Net | | | | | 388,137 | | | | | 307,571 | |
| | | | | | | | | | | | |
| Other Assets: | | | | | | | | | |
| | | | | | | | | | | | |
| | Intangible Assets, Net | | | | | | 194,195 | | | | | 203,195 | |
| | Goodwill | | | | | | | 514,864 | | | | | 512,568 | |
| | Perkins Program Fund, Net | | | | | | 13,450 | | | | | 13,450 | |
| | Other Assets | | | | | | | 17,533 | | | | | 12,069 | |
| | | | | | | | | | | | |
| | Total Other Assets | | | | | | 740,042 | | | | | 741,282 | |
| | | | | | | | | | | | |
| TOTAL ASSETS | | | | | | $ | 1,627,826 | | | | $ | 1,434,299 | |
| | | | | | | | | | | | | | |
| DEVRY INC. |
| CONSOLIDATED BALANCE SHEETS |
| (Dollars in Thousands) |
| | | | | | | | | | | | | |
| PRELIMINARY |
| | | | | | | | | | | | |
| | | | | | | | | June 30, |
| | | | | | | | | 2010 | | | 2009 |
| | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | |
| | | | | | | | | | | | |
| Current Liabilities: | | | | | | | | |
| | | | | | | | | | | | |
| | Current Portion of Debt | | | | | $ | - | | | | $ | 104,811 | |
| | Accounts Payable | | | | | | | 90,364 | | | | | 71,564 | |
| | Accrued Salaries, Wages and Benefits | | | | | 92,368 | | | | | 74,174 | |
| | Accrued Expenses | | | | | | 53,565 | | | | | 39,162 | |
| | Advance Tuition Payments | | | | | | 20,930 | | | | | 27,642 | |
| | Deferred Tuition Revenue | | | | | | 86,627 | | | | | 74,664 | |
| | | | | | | | | | | | |
| | Total Current Liabilities | | | | | | 343,854 | | | | | 392,017 | |
| | | | | | | | | | | | |
| Non-Current Liabilities | | | | | | | | |
| | | | | | | | | | | | |
| | Revolving Loan | | | | | | | - | | | | | 20,000 | |
| | Deferred Income Taxes, Net | | | | | | 43,368 | | | | | 51,895 | |
| | Deferred Rent and Other | | | | | | 56,216 | | | | | 40,257 | |
| | | | | | | | | | | | |
| | Total Non-Current Liabilities | | | | | | 99,584 | | | | | 112,152 | |
| | | | | | | | | | | | |
| TOTAL LIABILITIES | | | | | | | 443,438 | | | | | 504,169 | |
| | | | | | | | | | | | |
| NON-CONTROLLING INTEREST | | | | | | 5,007 | | | | | 3,188 | |
| | | | | | | | | | | | |
| SHAREHOLDERS' EQUITY: | | | | | | | | |
| | | | | | | | | | | | |
| Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized; | | | | | |
| 71,030,000 and 71,233,000 Shares Outstanding | | | | | | | |
| at June 30, 2010 and 2009, Respectively | | | | | 734 | | | | | 729 | |
| Additional Paid-in Capital | | | | | | 224,209 | | | | | 197,096 | |
| Retained Earnings | | | | | | | 1,055,591 | | | | | 791,677 | |
| Accumulated Other Comprehensive Income | | | | | 9,896 | | | | | 7,157 | |
| Treasury Stock, at Cost (2,394,000 and 1,663,000 Shares, Respectively) | | | (111,049 | ) | | | | (69,717 | ) |
| | | | | | | | | | | | |
| TOTAL SHAREHOLDERS' EQUITY | | | | | | 1,179,381 | | | | | 926,942 | |
| | | | | | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | | | $ | 1,627,826 | | | | $ | 1,434,299 | |
| | | | | | | | | | | |
| DEVRY INC. |
CONSOLIDATED STATEMENTS OF INCOME |
| (Dollars in Thousands Except for Per Share Amounts) |
| | | | | | | | | | | | | | | | |
| PRELIMINARY |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | For The Quarter | | For The Year |
| | | | | | | Ended June 30, | | Ended June 30, |
| | | | | | | | | | | | | | | |
| | | | | | | 2010 | | 2009 | | 2010 | | 2009 | | 2008 |
| | | | | | | | | | | | | | | |
| REVENUES: | | | | | | | | | | | | | |
| Tuition | | | | | $ | 477,323 | | | $ | 373,125 | | | $ | 1,795,814 | | | $ | 1,354,925 | | | $ | 1,004,029 | |
| Other Educational | | | | | | 29,351 | | | | 23,114 | | | | 119,367 | | | | 106,528 | | | | 87,804 | |
| | | | | | | | | | | | | | | |
| | Total Revenues | | | | | 506,674 | | | | 396,239 | | | | 1,915,181 | | | | 1,461,453 | | | | 1,091,833 | |
| | | | | | | | | | | | | | | |
| OPERATING COSTS AND EXPENSES: | | | | | | | | | | |
| Cost of Educational Services | | | | 215,341 | | | | 184,752 | | | | 826,089 | | | | 669,673 | | | | 503,133 | |
| Loss on Real Estate Transactions | | | - | | | | - | | | | - | | | | 3,977 | | | | 3,743 | |
| Litigation Settlement Reserve | | | | - | | | | 4,900 | | | | - | | | | 4,900 | | | | - | |
| Student Services and Administrative Expense | | | 190,765 | | | | 152,893 | | | | 678,190 | | | | 548,070 | | | | 422,622 | |
| | | | | | | | | | | | | | | |
| | Total Operating Costs and Expenses | | | 406,106 | | | | 342,545 | | | | 1,504,279 | | | | 1,226,620 | | | | 929,498 | |
| | | | | | | | | | | | | | | |
| Operating Income | | | | | | 100,568 | | | | 53,694 | | | | 410,902 | | | | 234,833 | | | | 162,335 | |
| | | | | | | | | | | | | | | |
| INTEREST AND OTHER INCOME (EXPENSE): | | | | | | | | | | |
| Interest Income | | | | | | 530 | | | | 623 | | | | 2,080 | | | | 5,251 | | | | 10,463 | |
| Interest Expense | | | | | | (332 | ) | | | (762 | ) | | | (1,585 | ) | | | (2,775 | ) | | | (522 | ) |
| Net Investment Gain | | | | | - | | | | 791 | | | | 1,225 | | | | 43 | | | | - | |
| | | | | | | | | | | | | | | |
| | Net Interest and Other Income (Expense) | | | 198 | | | | 652 | | | | 1,720 | | | | 2,519 | | | | 9,941 | |
| | | | | | | | | | | | | | | |
| Income Before Income Taxes | | | | | 100,766 | | | | 54,346 | | | | 412,622 | | | | 237,352 | | | | 172,276 | |
| | | | | | | | | | | | | | | |
| Income Tax Provision | | | | | 28,864 | | | | 17,275 | | | | 132,639 | | | | 71,700 | | | | 46,744 | |
| | | | | | | | | | | | | | | |
| NET INCOME | | | | | | 71,902 | | | | 37,071 | | | | 279,983 | | | | 165,652 | | | | 125,532 | |
| | | | | | | | | | | | | | | |
| Net Income Attributable to Noncontrolling Interest | | | (326 | ) | | | (39 | ) | | | (74 | ) | | | (39 | ) | | | - | |
| | | | | | | | | | | | | | | |
| NET INCOME ATTRIBUTABLE TO DEVRY INC. | | $ | 71,576 | | | $ | 37,032 | | | $ | 279,909 | | | $ | 165,613 | | | $ | 125,532 | |
| | | | | | | | | | | | | | | |
| EARNINGS PER COMMON SHARE ATTRIBUTABLE | | | | | | | | |
| TO DEVRY INC. SHAREHOLDERS | | | | | | | | | | |
| | Basic | | | | | $ | 1.00 | | | $ | 0.52 | | | $ | 3.92 | | | $ | 2.32 | | | $ | 1.76 | |
| | Diluted | | | | | $ | 0.99 | | | $ | 0.51 | | | $ | 3.87 | | | $ | 2.28 | | | $ | 1.73 | |
| | | | | | | | | | | | | | | |
| Cash Dividend Declared per Common Share | | $ | 0.10 | | | $ | 0.08 | | | $ | 0.20 | | | $ | 0.16 | | | $ | 0.12 | |
| | | | | | | | | | | | | | | | | | | | |
| DEVRY INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Dollars in Thousands) |
| | | | | | | | | | | | | |
| PRELIMINARY |
| | | | | | | | For The Year Ended June 30, |
| | | | | | | | 2010 | | 2009 | | 2008 |
| | | | | | | | | | | | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | |
| Net Income | | | | | $ | 279,983 | | | $ | 165,613 | | | $ | 125,532 | |
| Adjustments to Reconcile Net Income to Net | | | | | | |
| Cash Provided by Operating Activities: | | | | | | |
| | Stock-Based Compensation Charge | | | 10,148 | | | | 7,550 | | | | 5,724 | |
| | Depreciation | | | | | | 51,225 | | | | 39,825 | | | | 34,808 | |
| | Amortization | | | | | | 10,997 | | | | 10,625 | | | | 5,066 | |
| | Provision for Refunds and Uncollectible Accounts | | | 88,202 | | | | 72,395 | | | | 51,881 | |
| | Deferred Income Taxes | | | | | (9,549 | ) | | | 344 | | | | 3,110 | |
| | Loss on Disposals of Land, Buildings and Equipment | | | 666 | | | | 2,394 | | | | 3,882 | |
| | Unrealized Net (Gain) Loss on Investments | | | (1,225 | ) | | | 1,224 | | | | - | |
| | Changes in Assets and Liabilities, Net of Effects from | | | | | | |
| | Acquisitions of Businesses: | | | | | | | |
| | | Restricted Cash | | | | | 3,247 | | | | (1,097 | ) | | | 10,374 | |
| | | Accounts Receivable | | | | | (102,588 | ) | | | (89,249 | ) | | | (59,952 | ) |
| | | Prepaid Expenses And Other | | | 5,654 | | | | 7,292 | | | | (21,867 | ) |
| | | Accounts Payable | | | | | 18,776 | | | | (3,084 | ) | | | 35,997 | |
| | | Accrued Salaries, Wages, Expenses and Benefits | | | 30,854 | | | | 20,130 | | | | 533 | |
| | | Advance Tuition Payments | | | | (6,805 | ) | | | 5,889 | | | | 2,546 | |
| | | Deferred Tuition Revenue | | | | 11,963 | | | | 9,675 | | | | 1,012 | |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | | | 391,548 | | | | 249,526 | | | | 198,646 | |
| | | | | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | |
| Capital Expenditures | | | | | (131,009 | ) | | | (74,044 | ) | | | (62,806 | ) |
| Net Proceeds from Sales of Land and Building | | | - | | | | - | | | | 52,571 | |
| Payments for Purchases of Businesses, Net of Cash Acquired | | | - | | | | (315,318 | ) | | | (27,603 | ) |
| Marketable Securities Purchased | | | | (79 | ) | | | (63 | ) | | | (247,013 | ) |
| Marketable Securities-Maturities and Sales | | | 46,000 | | | | - | | | | 184,854 | |
| Other | | | | | | | (700 | ) | | | 39 | | | | - | |
| NET CASH USED IN INVESTING ACTIVITIES | | | (85,788 | ) | | | (389,386 | ) | | | (99,997 | ) |
| | | | | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | |
| Proceeds from Exercise of Stock Options | | | 13,041 | | | | 12,157 | | | | 17,703 | |
| Proceed from Stock Issued Under Employee Stock Purchase Plan | | | 997 | | | | 2,066 | | | | 1,021 | |
| Repurchase of Common Stock for Treasury | | | (41,683 | ) | | | (33,684 | ) | | | (24,465 | ) |
| Cash Dividends Paid | | | | | (12,839 | ) | | | (10,015 | ) | | | (7,840 | ) |
| Excess Tax Benefit from Stock-Based Payments | | | 3,455 | | | | 3,571 | | | | 4,201 | |
| Borrowings Under Revolving Credit Facility | | | 70,000 | | | | 290,000 | | | | 25,000 | |
| Repayments Under Revolving Credit Facility | | | (150,000 | ) | | | (210,000 | ) | | | (26,895 | ) |
| Borrowings Under Collateralized Line of Credit | | | 300 | | | | 46,419 | | | | - | |
| Repayments Under Collateralized Line of Credit | | | (45,111 | ) | | | (1,608 | ) | | | - | |
| Repayments of Fanor Debt | | | | | - | | | | (12,740 | ) | | | - | |
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | | | (161,840 | ) | | | 86,166 | | | | (11,275 | ) |
| | | | | | | | | | | | |
| Effects of Exchange Rate Differences | | | | (1,420 | ) | | | 1,697 | | | | 670 | |
| | | | | | | | | | | | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | | 142,500 | | | | (51,997 | ) | | | 88,044 | |
| | | | | | | | | | | | |
| Cash and Cash Equivalents at Beginning of Year | | | 165,202 | | | | 217,199 | | | | 129,155 | |
| | | | | | | | | | | | |
| Cash and Cash Equivalents at End of Year | | | $ | 307,702 | | | $ | 165,202 | | | $ | 217,199 | |
| | | | | | | | | | | | |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | | | | | | |
| Cash Paid During the Year for: | | | | | | | | |
| Interest | | | | | | $ | 867 | | | $ | 2,167 | | | $ | 366 | |
| Income Taxes, Net | | | | | | 130,502 | | | | 60,609 | | | | 58,387 | |
| Non-cash Investing and Financing Activity: | | | | | | |
| Accretion of Non-controlling Interest Put Option | | | 1,745 | | | | - | | | | - | |
| Declaration of Cash Dividends to be Paid | | | 7,117 | | | | 5,705 | | | | 4,283 | |
| | | | | | | | | | | | | |
| DEVRY INC. |
SEGMENT INFORMATION |
| (Dollars in Thousands) |
| | | | | | | | | | | | | | | |
| PRELIMINARY |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | For The Quarter | | For The Year |
| | | | Ended June 30, | | Ended June 30, |
| | | | | | | | Increase | | | | | | Increase |
| | | | 2010 | | 2009 | | (Decrease) | | 2010 | | 2009 | | (Decrease) |
| | | | | | | | | | | | | | |
| REVENUES: | | | | | | | | | | | | | |
| Business, Technology and Management | | $ | 332,188 | | | $ | 251,138 | | | 32.3 | % | | $ | 1,263,553 | | | $ | 989,472 | | | 27.7 | % |
| Medical and Healthcare | | | 131,465 | | | | 106,445 | | | 23.5 | % | | | 507,037 | | | | 362,715 | | | 39.8 | % |
| Professional Education | | | 26,001 | | | | 23,878 | | | 8.9 | % | | | 84,824 | | | | 84,151 | | | 0.8 | % |
| Other Educational Services | | | 17,020 | | | | 14,778 | | | 15.2 | % | | | 59,767 | | | | 25,115 | | | 138.0 | % |
| | | | | | | | | | | | | | |
| Total Consolidated Revenues | | | 506,674 | | | | 396,239 | | | 27.9 | % | | | 1,915,181 | | | | 1,461,453 | | | 31.0 | % |
| | | | | | | | | | | | | | |
| OPERATING INCOME (LOSS): | | | | | | | | | | | |
| Business, Technology and Management | | | 71,096 | | | | 24,872 | | | 185.8 | % | | | 291,060 | | | | 126,909 | | | 129.3 | % |
| Medical and Healthcare | | | 21,832 | | | | 23,519 | | | -7.2 | % | | | 111,081 | | | | 91,651 | | | 21.2 | % |
| Professional Education | | | 8,833 | | | | 8,897 | | | -0.7 | % | | | 26,673 | | | | 30,670 | | | -13.0 | % |
| Other Educational Services | | | 440 | | | | 1,421 | | | -69.0 | % | | | (6,791 | ) | | | (1,001 | ) | | NM | |
| Reconciling Items: | | | | | | | | | | | | | |
| Amortization Expense | | | (1,623 | ) | | | (3,683 | ) | | -55.9 | % | | | (10,812 | ) | | | (10,476 | ) | | 3.2 | % |
| Depreciation and Other | | | (10 | ) | | | (1,332 | ) | | -99.2 | % | | | (309 | ) | | | (2,920 | ) | | -89.4 | % |
| | | | | | | | | | | | | | |
| Total Consolidated Operating Income | | | 100,568 | | | | 53,694 | | | 87.3 | % | | | 410,902 | | | | 234,833 | | | 75.0 | % |
| | | | | | | | | | | | | | |
| INTEREST AND OTHER INCOME (EXPENSE): | | | | | | | | |
| Interest Income | | | | 530 | | | | 623 | | | -14.9 | % | | | 2,080 | | | | 5,251 | | | -60.4 | % |
| Interest Expense | | | | (332 | ) | | | (762 | ) | | -56.4 | % | | | (1,585 | ) | | | (2,775 | ) | | -42.9 | % |
| Net Investment Gain | | | - | | | | 791 | | | NM | | | | 1,225 | | | | 43 | | | NM | |
| | | | | | | | | | | | | | |
| Net Interest and Other Income (Expense) | | | 198 | | | | 652 | | | -69.6 | % | | | 1,720 | | | | 2,519 | | | -31.7 | % |
| | | | | | | | | | | | | | |
| Total Consolidated Income before Income Taxes | | $ | 100,766 | | | $ | 54,346 | | | 85.4 | % | | $ | 412,622 | | | $ | 237,352 | | | 73.8 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
DeVry executed certain real estate transactions in the year ended June 30, 2009, which resulted in significant lease termination charges and/or losses on the sale of facilities. DeVry also recorded a litigation settlement reserve in the three months and year ended June 30, 2009. The following table illustrates the effects of the real estate transactions and litigation settlement reserve 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 and the litigation settlement reserve. 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 Year |
| | | | Ended June 30, | | Ended June 30, |
| | | | | | | | | | | | | | |
| | | | 2010 | | 2009 | | Increase | | 2010 | | 2009 | | Increase |
| | | | | | | | | | | | | | |
| Business, Technology and Management Operating Income | | $ | 71,096 | | | $ | 24,872 | | | 185.8 | % | | $ | 291,060 | | | $ | 126,909 | | | 129.3 | % |
| Loss on Real Estate Transactions | | | - | | | | - | | | - | | | | - | | | | 3,977 | | | -100.0 | % |
| Litigation Settlement Reserve | | | - | | | | 4,900 | | | NM | | | | - | | | | 4,900 | | | NM | |
| Business, Technology and Management Operating Income, | | | | | | | |
| Excluding Loss on Discrete Items | | $ | 71,096 | | | $ | 29,772 | | | 138.8 | % | | $ | 291,060 | | | $ | 135,786 | | | 114.4 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| The following table displays the pro forma results of operations for the Medical and Healthcare segment as if Carrington Colleges (formerly U.S. Education) were a part of DeVry's business for the entire years ended June 30, 2010 and 2009. No quarterly pro forma information is presented because Carrington Colleges were a part of DeVry's business for the entire quarterly periods ended June 30, 2010 and 2009. 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 periods. |
| | | | | | | | | | |
| | | | | | | | | | For The Year |
| | | | | | | | | | Ended June 30. |
| | | | | | | | | | | | | | |
| | | | | | | | | | 2010 | | 2009 | | Increase |
| | | | | | | | | | | | | | |
| Medical and Healthcare Revenue as Reported | | $ | 507,037 | | | $ | 362,715 | | | 39.8 | % |
| Carrington Colleges Revenue (1) | | | - | | | | 35,907 | | | NM | |
| Pro forma Medical and Healthcare Revenue | | $ | 507,037 | | | $ | 398,622 | | | 27.2 | % |
| | | | | | | | | | | | | | |
| Medical and Healthcare Operating Income as Reported | | $ | 111,081 | | | $ | 91,651 | | | 21.2 | % |
| Carrington Colleges Operating Income as Adjusted (1) (2) | | | - | | | | 5,350 | | | NM | |
| Pro forma Medical and Healthcare Operating Income | | $ | 111,081 | | | $ | 97,001 | | | 14.5 | % |
| | | | | | | | | | | | | | |
(1) For the portion of the period not owned by DeVry. Carrington Colleges, which was acquired on September 18, 2008, contributed $71 million of revenue growth in the year ended June 30, 2010. |
| |
(2) Adjusted for non-recurring acquisition related charges along with an allocation of home office expenses in the first quarter ended September 30, 2008. |
| |
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CONTACT:
DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 353-3800
or
Media Contact:
Larry Larsen
llarsen@sardverb.com
(312) 895-4717
