1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 19, 2003
DeVRY INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 012751 36-3150143
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
ONE TOWER LANE, OAKBROOK TERRACE, IL 60181
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (630)571-7700
Total number of pages: 11
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DEVRY INC.
FORM 8-K INDEX
Page No.
Item 9 - Regulation FD Disclosure 3-10
Signatures 11
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Item 9 -Regulation FD Disclosure
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On August 19, 2003, DeVry Inc. issued a press release and other financial
information. The full text of that press release and the other financial
information is as follows:
Contacts: For Immediate Release
Joan Bates
Investor Relations
630-574-1949
Jonelle Niffenegger
Media Relations
630-706-3212
DeVry Inc. Reports Fiscal 2003 Fourth-Quarter, Year-End Results and
Summer Term Enrollment
OAKBROOK TERRACE, Ill., August 19, 2003 -- DeVry Inc. (NYSE: DV), an
international higher education company, today reported financial results
for the fourth quarter and year-end of fiscal 2003, and student enrollment
for the summer term.
Financial Results
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Revenues for the full year ended June 30, 2003, were $679.6 million,
an increase of 4.9 percent compared with $648.1 million in the prior year.
Fourth quarter revenues were $174.4 million, an increase of 7.6 percent
compared with $162.0 million in the same quarter last year.
Net income for the year was $61.1 million or $0.87 per share
(diluted), a decline of 8.8 percent compared with $67.1 million or $0.95
per share (diluted) for fiscal year 2002. Full year net income includes
certain non-recurring income tax benefits totaling $8.1 million or
approximately $0.12 per share recognized in the second quarter. Net income
for the fourth quarter was $12.1 million, or $0.17 per share, down 25.0
percent compared with $16.2 million, or $0.23 per share in the year ago
period. Included in fourth quarter financial results are pretax charges of
approximately $2.6 million related to workforce reductions in both eastern
Canada and the United States.
Dennis J. Keller, chairman and co-chief executive officer, said,
"Earnings in the fourth quarter were also affected by previous shortfalls
in undergraduate campus-based enrollment at DeVry University and,
especially, the underperformance of our Canadian operations. We continued
to adjust our cost base to reflect the smaller student population and as a
result incurred staff severance expenses during the period."
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During the fourth quarter, DeVry completed the acquisition of Ross
University, which provides Doctor of Medicine and Doctor of Veterinary
Medicine degree programs. Ronald L. Taylor, president and co-chief
executive officer, said, "We are extremely pleased with the integration of
Ross University into DeVry and believe that the opportunities in this
market segment are very attractive. We particularly look forward to
exploring the synergies between Ross, DeVry University and Becker Conviser
Professional Review."
Summer Enrollment
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DeVry University announced today that new undergraduate student
enrollment for the 2003 summer term increased by 2.5 percent to 10,607,
compared with 10,345 in the previous year. This increase compares to a 3.6
percent decline in new students in the 2003 spring term. New undergraduate
students at the company's U.S. campuses increased 4.5 percent to 10,252
compared with 9,806 in the prior year.
The total number of enrolled undergraduate students was 41,075, a
decline of 5.2 percent compared with 43,342 a year ago. This compares to a
decline of 6.0 percent in total enrollments for the 2003 spring term.
At DeVry University's Keller Graduate School of Management, the number
of coursetakers for the 2003 July term increased 15.5 percent to 9,483
compared with 8,209 in the June term last year. The total number of
students enrolled at Ross University for the term beginning in May was
2,852 compared to 2,552 last year, an increase of 11.8 percent.
"We are pleased to see strong student interest in our business degree
programs, both at DeVry University Centers and online, and the beginnings
of renewed interest in technology programs. In addition, solid enrollment
results in the May term at Ross University reflect improved marketing
efforts, which capitalize on its strong brand equity," Taylor said. "In
light of the growing demand for both medical doctors and veterinarians, we
plan to expand capacity at these campuses to meet this market need."
In fiscal 2003, new DeVry University Centers were opened in Plano,
Texas; Valley Forge, Pa.; and the Cobb-Galleria area of Atlanta. New
campuses were opened in Philadelphia; Miramar, Fla.; and Denver. A new
center offering graduate degree programs opened in Manhattan in April. The
Company expects to open six to eight new DeVry University Centers in fiscal
2004 in addition to its Houston campus, which will open in November. DeVry
University currently operates 66 locations, including 25 campuses, 40
centers and DeVry University online.
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DeVry Inc. will hold a conference call to discuss these results on
August 19, 2003, at 4:30 p.m. eastern time. For those who wish to
participate, please dial 800-901-5218 (domestic) or 617-786-4511
(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 August 29, 2003 by dialing 888-286-8010 (domestic)
or 617-801-6888 (international), conference code 31649171.
DeVry Inc. (NYSE: DV) is the holding company for DeVry University,
Ross University and Becker Conviser Professional Review. DeVry University
offers associate, bachelor's and master's degree programs in technology,
business and management. Ross University is focused exclusively on
professional medical and veterinary education awarding both doctor of
medicine and doctor of veterinary medicine degrees. Becker Conviser
Professional Review is a leading provider of 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
uncertainty that could cause actual results to differ materially from the
forward-looking statements. Potential risks and uncertainties include, but are
not limited to, 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.
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DeVry Inc.
Fourth Quarter Ended June 30:
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Fiscal Year Fiscal Year
2003 2002
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Revenues $174,395,000 $162,013,000
Net Income 12,149,000 16,191,000
Earnings Per Common Share
Basic $0.17 $0.23
Diluted $0.17 $0.23
Number of Common Shares
Basic 69,986,000 69,894,000
Diluted 70,548,000 70,517,000
Fiscal Year Ended June 30:
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Fiscal Year Fiscal Year
2003 2002
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Revenues $679,579,000 $648,134,000
Net Income 61,148,000 67,055,000
Earnings Per Common Share
Basic $0.87 $0.96
Diluted $0.87 $0.95
Number of Common Shares
Basic 69,942,000 69,830,000
Diluted 70,336,000 70,594,000
June 30:
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Actual Shares Outstanding 70,021,500 69,898,500
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DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
June 30,
2003 2002
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ASSETS:
Current Assets:
Cash and Cash Equivalents $108,699 $ 59,685
Restricted Cash 14,052 19,264
Accounts Receivable, Net 24,275 26,054
Inventories 4,315 4,907
Deferred Income Taxes 12,813 5,448
Prepaid Expenses and Other 5,533 2,469
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Total Current Assets 169,687 117,827
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Land, Buildings and Equipment:
Land 59,888 58,928
Buildings 188,320 174,344
Equipment 207,405 173,115
Construction In Progress 12,662 1,626
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468,275 408,013
Accumulated Depreciation (182,921) (150,386)
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Land, Buildings and Equipment, Net 285,354 257,627
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Other Assets:
Intangible Assets, Net 103,330 35,692
Goodwill 280,979 42,391
Deferred Income Taxes - 1,801
Perkins Program Fund, Net 11,291 10,180
Other Assets 6,003 2,110
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Total Other Assets 401,603 92,174
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TOTAL ASSETS $856,644 $467,628
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DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
June 30,
2003 2002
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LIABILITIES:
Current Liabilities:
Accounts Payable $ 34,094 $ 36,284
Accrued Salaries, Wages and Benefits 30,791 27,595
Accrued Expenses 31,767 11,643
Advance Tuition Payments 10,568 15,883
Deferred Tuition Revenue 16,291 12,287
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Total Current Liabilities 123,511 103,692
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Other Liabilities:
Revolving Loan 165,000 -
Senior Debt 125,000 -
Deferred Income Taxes 13,049 -
Deferred Rent and Other 14,417 10,390
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Total Other Liabilities 317,466 10,390
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TOTAL LIABILITIES 440,977 114,082
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COMMITMENTS & CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 Par Value, 200,000,000
Shares Authorized,70,021,513 and
69,898,540 shares Outstanding
at June 30, 2003 and 2002, Respectively 701 700
Additional Paid-in Capital 67,288 66,345
Retained Earnings 346,975 285,827
Accumulated Other Comprehensive Income 703 674
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TOTAL SHAREHOLDERS' EQUITY 415,667 353,546
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $856,644 $467,628
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DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
For The Year Ended
June 30,
--------------------------------
2003 2002 2001
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REVENUES:
Tuition $628,326 $600,400 $523,995
Other Educational 50,810 47,181 43,012
Interest 443 553 1,170
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Total Revenues 679,579 648,134 568,177
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COSTS AND EXPENSES:
Cost of Educational Services 366,075 347,986 304,532
Student Services and
Administrative Expense 225,767 188,712 167,330
Interest Expense 1,280 807 400
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Total Costs and Expenses 593,122 537,505 472,262
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Income Before Income Taxes 86,457 110,629 95,915
Income Tax Provision 33,459 43,574 38,139
Non-recurring Tax Benefits (8,150) - -
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NET INCOME $ 61,148 $ 67,055 $ 57,776
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EARNINGS PER COMMON SHARE
Basic $0.87 $0.96 $0.83
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Diluted $0.87 $0.95 $0.82
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DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
For The Year Ended June 30,
2003 2002 2001
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 61,148 $ 67,055 $ 57,776
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation 37,758 32,725 28,132
Amortization 2,574 811 3,904
Provision for Refunds and
Uncollectible Accounts 34,501 34,249 29,663
Deferred Income Taxes 6,882 2,630 (4,321)
Loss on Disposals and Adjustments to Land,
Buildings and Equipment 263 188 137
Changes in Assets and Liabilities, Net of
Effects from Acquisitions of Businesses:
Restricted Cash 6,206 1,220 (1,089)
Accounts Receivable (23,633) (34,525) (29,719)
Inventories 592 (8) 1,492
Prepaid Expenses And Other (1,012) 677 (1,687)
Perkins Program Fund Contribution
and Other (1,114) 193 (2,374)
Accounts Payable (4,074) 1,711 2,746
Accrued Salaries, Wages,
Expenses and Benefits 2,061 5,363 3,405
Advance Tuition Payments (6,997) 1,704 (1,328)
Deferred Tuition Revenue (16,904) 1,330 862
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NET CASH PROVIDED BY OPERATING ACTIVITIES 98,251 115,323 87,599
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CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (43,762) (85,873) (76,933)
Payments for Purchases of Businesses, Net
of Cash Acquired (295,908) - (8,572)
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NET CASH USED IN INVESTING ACTIVITIES (339,670) (85,873) (85,505)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 404 1,068 982
Proceeds from Revolving Credit Facility 165,000 55,000 24,000
Repayments Under Revolving Credit Facility - (55,000) (24,000)
Proceeds from Senior Note Issuance 125,000 - -
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NET CASH PROVIDED BY FINANCING ACTIVITIES 290,404 1,068 982
Effects of Exchange Rate Differences 29 (46) 286
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NET INCREASE IN CASH AND CASH
EQUIVALENTS 49,014 30,472 3,362
Cash and Cash Equivalents at Beginning
of Year 59,685 29,213 25,851
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Cash and Cash Equivalents at End of Year $108,699 $ 59,685 $29,213
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid During the Year $662 $807 $324
Income Taxes Paid During the Year, Net 17,373 42,486 38,859
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DEVRY INC.
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(REGISTRANT)
Date: August 19, 2003 /s/Dennis J. Keller
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Dennis J. Keller
Chairman
Date: August 19, 2003 /s/Norman M. Levine
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Norman M. Levine
Senior Vice President and
Chief Financial Officer