Exhibit 99.1
DeVry Inc. Reports Fiscal 2003 Third-Quarter Revenues, Earnings, Spring Term
Enrollment at DeVry University
OAKBROOK TERRACE, Ill., April 22 /PRNewswire-FirstCall/ -- DeVry Inc.
(NYSE: DV), an international higher education company, today reported revenues
and earnings for the third quarter of fiscal year 2003, ended March 31, 2003.
DeVry Inc. also announced spring term student enrollments at DeVry University.
Revenues for the third quarter were $169.4 million, compared with $164.8
million for the same period one year ago. Revenues for the nine-month period
ended March 31, 2003 were $505.2 million versus $486.1 million for the same
period last year.
Third-quarter net income was $14.9 million, or $0.21 per share, compared
with $18.4 million, or $0.26 per share in the prior year. For the first nine
months of fiscal 2003, net income was $49.0 million, or $0.70 per share,
compared with $50.9 million, or $0.72 per share for the previous year (all per
share data diluted).
In addition, DeVry University today announced that 43,045 undergraduate
students enrolled for the 2003 spring term, compared with 45,810 one year ago,
a decline of 6.0 percent. New undergraduate student enrollment declined 3.6
percent to 8,053 for the spring term compared to 8,351 in the previous year.
Undergraduate enrollment in the spring term was negatively impacted by the
previously announced consolidation of DeVry's two Toronto area campuses.
However, new undergraduate enrollment in the United States increased from
7,733 one year ago to 7,759 this year. At Keller Graduate School of Management
(KGSM), the number of coursetakers for the 2003 February term increased 18
percent to 11,715, compared with 9,925 for the same term last year.
"We are encouraged by the continued strong interest in our business and
online programs, as well as by what appears to be the beginning of a positive
trend in our core U.S. enrollment," said Ronald L. Taylor, president and co-
chief executive officer. "We believe our more robust marketing efforts have
helped us to better communicate the value and quality of a DeVry University
degree to potential students."
In March 2003, DeVry signed a definitive agreement to acquire Ross
University, the operator of Ross University School of Medicine and Ross
University School of Veterinary Medicine, located in the Caribbean countries
of Dominica and St. Kitts/Nevis, respectively. Ross University is one of the
world's largest providers of medical and veterinary education with enrollment
of more than 2,500 students. DeVry expects the transaction to close during
the company's fiscal fourth quarter.
"The acquisition of Ross University represents an entry into the health
sciences field at the highest levels of professionalism," said Dennis J.
Keller, chairman and co-chief executive officer. "We believe there are
significant opportunities to grow in this field, utilizing the combined
resources of Ross University, DeVry University and Becker Conviser
Professional Review."
During the quarter, DeVry opened its sixth DeVry University Center (DVUC)
in the Atlanta area and converted existing KGSM centers to DVUCs in Milwaukee,
Tampa Bay, Kansas City and the Atlanta area, where two centers were converted.
In March, the Company opened a new undergraduate campus in the Denver area and
a new graduate center in Manhattan. DeVry now operates 25 undergraduate
campuses and 39 adult learner centers across North America.
DeVry Inc. (NYSE: DV) is the holding company for DeVry University and
Becker Conviser Professional Review. DeVry University offers associate,
bachelor's and master's degree programs in technology, business and
management. 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. and
its divisions are based in Oakbrook Terrace, Ill. For more information about
DeVry Inc., 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.
DeVry Inc.
Third Quarter Ended March 31:
Fiscal Year Fiscal Year
2003 2002
Revenues $169,367,000 $164,814,000
Net Income 14,892,000 18,367,000
Earnings Per Common Share
Basic $0.21 $0.26
Diluted $0.21 $0.26
Number of Common Shares
Basic 69,943,000 69,855,000
Diluted 70,278,000 70,611,000
Nine Months Ended March 31:
Fiscal Year Fiscal Year
2003 2002
Revenues $505,184,000 $486,121,000
Net Income 48,999,000 50,864,000
Earnings Per Common Share
Basic $0.70 $0.73
Diluted $0.70 $0.72
Number of Common Shares
Basic 69,927,000 69,810,000
Diluted 70,271,000 70,618,000
March 31:
Actual Shares Outstanding 69,953,575 69,885,847
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31, June 30, March 31,
2003 2002 2002
(Unaudited) (Unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents $177,263 $59,685 $78,297
Restricted Cash 39,246 19,264 50,820
Accounts Receivable, Net 80,523 26,054 105,186
Inventories 3,234 4,907 3,085
Prepaid Income Taxes 2,321 - -
Deferred Income Taxes 5,448 5,448 5,221
Prepaid Expenses and Other 3,890 2,469 2,723
Total Current Assets 311,925 117,827 245,332
Land, Buildings and Equipment
Land 58,942 58,928 58,892
Buildings 176,336 174,344 172,685
Equipment 194,300 173,115 166,165
Construction In Progress 3,498 1,626 383
433,076 408,013 398,125
Accumulated Depreciation (172,613) (150,386) (144,436)
Land, Buildings and
Equipment, Net 260,463 257,627 253,689
Other Assets
Intangible Assets, Net 35,148 35,692 35,919
Goodwill 42,391 42,391 42,391
Deferred Income Taxes - 1,801 3,413
Perkins Program Fund, Net 10,617 10,180 10,201
Other Assets 2,150 2,110 2,155
Total Other Assets 90,306 92,174 94,079
TOTAL ASSETS $662,694 $467,628 $593,100
The accompanying notes are an integral part of these consolidated
financial statements.
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31, June 30, March 31,
2003 2002 2002
(Unaudited) (Unaudited)
LIABILITIES
Current Liabilities
Accounts Payable $49,570 $36,284 $38,399
Accrued Salaries, Wages &
Benefits 35,922 27,595 31,789
Accrued Expenses 11,616 11,643 9,896
Advance Tuition Payments 5,276 15,883 8,833
Deferred Tuition Revenue 139,860 12,287 143,646
Total Current Liabilities 242,244 103,692 232,563
Other Liabilities
Revolving Loan - - 14,000
Deferred Income Taxes 4,899 - -
Deferred Rent and Other 12,816 10,390 10,372
Total Other Liabilities 17,715 10,390 24,372
TOTAL LIABILITIES 259,959 114,082 256,935
SHAREHOLDERS' EQUITY
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
69,953,575, 69,898,540 and
69,885,847, Shares Issued and
Outstanding at March 31,
2003, June 30, 2002 and
March 31, 2002,
Respectively 700 700 699
Additional Paid-in Capital 66,561 66,345 65,454
Retained Earnings 334,826 285,827 269,636
Accumulated Other Comprehensive
Income 648 674 376
TOTAL SHAREHOLDERS' EQUITY 402,735 353,546 336,165
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $662,694 $467,628 $593,100
The accompanying notes are an integral part of these consolidated
financial statements.
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
For The Quarter For The Nine Months
Ended March 31, Ended March 31,
2003 2002 2003 2002
REVENUES:
Tuition $155,166 $151,775 $465,480 $450,261
Other Educational 14,090 12,954 39,391 35,449
Interest 111 85 313 411
Total Revenues 169,367 164,814 505,184 486,121
COSTS AND EXPENSES:
Cost of Educational Services 88,312 87,827 273,963 261,089
Student Services and
Administrative Expense 56,714 46,536 164,442 140,506
Interest Expense 47 143 141 744
Total Costs and Expenses 145,073 134,506 438,546 402,339
Income Before Income Taxes 24,294 30,308 66,638 83,782
Income Tax Provision 9,402 11,941 25,789 32,918
Non-Recurring Tax Benefits - - (8,150) -
NET INCOME $14,892 $18,367 $48,999 $50,864
EARNINGS PER COMMON SHARE
Basic $0.21 $0.26 $0.70 $0.73
Diluted $0.21 $0.26 $0.70 $0.72
The accompanying notes are an integral part of these consolidated
financial statements.
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
For The Nine Months
Ended March 31,
2003 2002
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income $48,999 $50,864
Adjustments to Reconcile Net
Income to Net
Cash Provided by Operating
Activities:
Depreciation 28,108 24,163
Amortization of Intangible
Assets and Goodwill 544 542
Amortization of Other Assets 32 33
Provision for Refunds and
Uncollectible Accounts 26,566 26,126
Deferred Income Taxes 6,700 1,245
Loss on Disposals and
Adjustments to
Land, Buildings and
Equipment 61 287
Changes in Assets and
Liabilities:
Restricted Cash (19,982) (30,336)
Accounts Receivable (80,919) (105,555)
Inventories 1,673 1,814
Prepaid Expenses And Other (1,941) 562
Accounts Payable 13,286 3,826
Accrued Salaries, Wages,
Expenses and Benefits 8,300 7,012
Advance Tuition Payments (10,607) (5,346)
Deferred Tuition Revenue 127,573 132,689
NET CASH PROVIDED BY OPERATING
ACTIVITIES 148,393 107,926
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (31,005) (73,472)
NET CASH USED IN INVESTING
ACTIVITIES (31,005) (73,472)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock
Options 216 974
Proceeds From Revolving Credit
Facility - 55,000
Repayments Under Revolving
Credit Facility - (41,000)
NET CASH PROVIDED BY FINANCING
ACTIVITIES 216 14,974
Effects of Exchange Rate
Differences (26) (344)
NET INCREASE IN CASH AND CASH
EQUIVALENTS 117,578 49,084
Cash and Cash Equivalents at
Beginning of Period 59,685 29,213
Cash and Cash Equivalents at End of
Period $177,263 $78,297
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION
Interest Paid During the Period $139 $741
Income Tax Payments During the
Period, Net $15,131 $35,228
The accompanying notes are an integral part of these consolidated
financial statements.