Exhibit 99.1
DeVry Inc. Reports Fiscal 2004 Third Quarter Results, Spring Term Enrollment
at DeVry University and Ross University
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 20, 2004--DeVry Inc. (NYSE:
DV), an international higher-education company, today reported financial results
for the third quarter and nine months of fiscal year 2004 ended March 31, 2004.
DeVry Inc. also announced spring term student enrollments at DeVry University
and Ross University.
Revenues for the quarter were $196.8 million, a 16.2 percent increase
compared with $169.4 million for the same period one year ago. Revenues for the
nine-month period ended March 31, 2004 were $584.8 million versus $505.2 million
for the same period last year, an increase of 15.8 percent.
Net income for the quarter totaled $16.3 million, or $0.23 per share,
compared with $14.9 million, or $0.21 per share, for the same period last year.
For the first nine months of fiscal 2004, net income was $42.4 million, or $0.60
per share, compared with $49.0 million, or $0.70 per share, for the previous
year, which included $8.2 million or $0.12 per share of certain non-recurring
income tax benefits.
"During the third quarter, Becker Professional Review experienced lower
enrollment and reduced revenues and operating profits in its certified public
accountant exam preparation courses," said Dennis J. Keller, chairman and
co-chief executive officer of DeVry Inc. The decline in operating earnings from
Becker operations in the third quarter of 2004 compared to the third quarter of
2003 was approximately $0.04 per share. "Because of a change in the CPA exam
schedule and a new computer-based test format, many students elected to defer
their preparatory coursework until after the new exam was implemented. Becker
has enhanced its product to adapt to the new exam and we expect to benefit in
the future as candidates take advantage of a more flexible test timetable," Mr.
Keller added.
At DeVry University, new undergraduate student enrollment for the 2004
spring term increased 6.1 percent to 8,366, compared with 7,885 in the previous
year. Total undergraduate student enrollment in the 2004 spring term was 40,870,
a decline of 3.1 percent, compared to 42,192 for the 2003 spring term. These
results exclude enrollments at DeVry's Toronto location, which last enrolled new
students in July 2003.
During fiscal 2004, Keller Graduate School of Management (KGSM) aligned its
academic calendar with that of DeVry University. Graduate coursework is now
completed in six 8-week terms as opposed to five 10-week terms in the prior KGSM
calendar. For the March 2004 term, the number of coursetakers at KGSM increased
3.5 percent to 11,812 compared with 11,413 in the April term last year. The
fiscal year 2004 annual coursetaker enrollment at KGSM is expected to increase
by more than 20 percent from the previous year.
The total number of online undergraduate and graduate coursetakers for the
2004 spring term increased 110.4 percent to 11,032 compared with 5,244 in the
same term a year ago.
The total number of students enrolled at Ross University for the 2004
January term was 3,229 compared to 2,906 in the same period last year, an
increase of 11.1 percent. Ross University experiences seasonal enrollment
patterns similar to DeVry University, with slower growth in the spring term than
in other terms.
During the quarter, DeVry announced the opening of a DeVry University
Center (DVUC) in Gurnee, Illinois, giving the university its 11th Chicago area
location. Also, DeVry recently announced the opening of a Sacramento,
California, Level II regional facility and its third location in the greater
Philadelphia area. Effective with the opening of these centers in July 2004,
DeVry University will operate 69 physical locations across North America, which
includes 24 campuses and 45 centers.
DeVry Inc. will hold a conference call to discuss third-quarter financial
results on April 20, 2004, at 4:30 p.m. Eastern Time. To participate in the
conference call, please dial 800-240-2430 (domestic) or 303-262-2141
(international). Investors may also participate by live web simulcast by
visiting http://investor.devry.com. A telephone replay of the earnings call will
be available until April 30, 2004, at 800-405-2236 (domestic) or 303-590-3000
(international), conference code 576538.
DeVry Inc. (NYSE: DV) is the holding company for DeVry University, Ross
University and Becker Professional Review. DeVry University, which includes
Keller Graduate School of Management, offers associate, bachelor's and master's
degree programs in technology, business and management. Ross University, through
its schools of Medicine and Veterinary Medicine, offers both doctor of medicine
and doctor of veterinary medicine degrees. Becker Professional Review provides
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.
Spring 2004 Enrollment Results
- ---------------------------------
DeVry University (excluding Spring 2004 Spring 2003 Increase/
Toronto) (Decrease)
New undergraduate students
(onsite/online) 8,366 7,885 6.1%
Total undergraduate students
(onsite/online) 40,870 42,192 (3.1%)
March 2004 April 2003 Increase/
(Decrease)
Graduate coursetakers
(onsite/online) 11,812 11,413 3.5%
Online coursetakers(1) 11,032 5,244 110.4%
January 2004 January 2003 Increase/
(Decrease)
Ross University 3,229 2,906 11.1%
(1) Online coursetakers are included in the new and total undergraduate and
graduate coursetaker counts.
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
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Potential risks and uncertainties include, but are
not limited to, market conditions, 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.
Third Quarter Ended March 31:
- -------------------------------------
Fiscal Year Fiscal Year
2004 2003
--------------------------------
Revenues $196,800,000 $169,367,000
Net Income 16,295,000 14,892,000
Earnings Per Common Share
Basic $0.23 $0.21
Diluted $0.23 $0.21
Number of Common Shares
Basic 70,187,000 69,943,000
Diluted 70,885,000 70,278,000
Nine Months Ended March 31:
- -------------------------------------
Fiscal Year Fiscal Year
2004 2003
--------------------------------
Revenues $584,842,000 $505,184,000
Net Income 42,365,000 48,999,000
Earnings Per Common Share
Basic $0.60 $0.70
Diluted $0.60 $0.70
Number of Common Shares
Basic 70,088,000 69,927,000
Diluted 70,703,000 70,271,000
December 31:
- -------------------------------------
Actual Shares Outstanding 70,281,623 69,953,575
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
PRELIMINARY
March 31, June 30, March 31,
2004 2003 2003
------------ ---------- ------------
(Unaudited) (Unaudited)
ASSETS
- ------
Current Assets
--------------
Cash and Cash Equivalents $185,029 $108,699 $177,263
Restricted Cash 29,998 14,052 39,246
Accounts Receivable, Net 87,206 24,275 80,523
Inventories 1,978 4,315 3,234
Prepaid Income Taxes - - 2,321
Deferred Income Taxes 9,944 11,358 5,448
Prepaid Expenses and Other 9,851 6,988 3,890
------------ ---------- ------------
Total Current Assets 324,006 169,687 311,925
------------ ---------- ------------
Land, Buildings and Equipment
-----------------------------
Land 60,306 59,888 58,942
Buildings 199,341 188,320 176,336
Equipment 219,921 207,405 194,300
Construction In Progress 3,477 12,662 3,498
------------ ---------- ------------
483,045 468,275 433,076
Accumulated Depreciation (202,036) (182,921) (172,613)
------------ ---------- ------------
Land, Buildings and
Equipment, Net 281,009 285,354 260,463
------------ ---------- ------------
Other Assets
------------
Intangible Assets, Net 89,863 103,330 35,148
Goodwill 285,841 280,979 42,391
Perkins Program Fund, Net 11,991 11,291 10,617
Other Assets 4,681 6,003 2,150
------------ ---------- ------------
Total Other Assets 392,376 401,603 90,306
------------ ---------- ------------
TOTAL ASSETS $997,391 $856,644 $662,694
============ ========== ============
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
PRELIMINARY
March 31, June 30, March 31,
2004 2003 2003
------------ ---------- ------------
(Unaudited) (Unaudited)
LIABILITIES
- -----------
Current Liabilities
-------------------
Current Maturities of
Revolving Loan $- $15,000 $-
Accounts Payable 58,509 34,094 49,570
Accrued Salaries, Wages &
Benefits 30,203 30,791 35,922
Accrued Expenses 26,755 31,767 11,616
Advance Tuition Payments 8,900 10,568 5,276
Deferred Tuition Revenue 153,948 16,291 139,860
------------ ---------- ------------
Total Current Liabilities 278,315 138,511 242,244
------------ ---------- ------------
Non-Current Liabilities
-----------------------
Revolving Loan 105,000 150,000 -
Senior Debt 125,000 125,000 -
Deferred Income Taxes 13,429 13,049 4,899
Deferred Rent and Other 15,504 14,417 12,816
------------ ---------- ------------
Total Non-Current
Liabilities 258,933 302,466 17,715
------------ ---------- ------------
TOTAL LIABILITIES 537,248 440,977 259,959
------------ ---------- ------------
SHAREHOLDERS' EQUITY
- --------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,281,623, 70,021,513 and
69,953,575, Shares Issued and
Outstanding at March 31, 2004,
June 30, 2003 and
March 31, 2003, Respectively. 703 701 700
Additional Paid-in Capital 69,426 67,288 66,561
Retained Earnings 389,340 346,975 334,826
Accumulated Other Comprehensive
Income 674 703 648
------------ ---------- ------------
TOTAL SHAREHOLDERS' EQUITY 460,143 415,667 402,735
------------ ---------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $997,391 $856,644 $662,694
============ ========== ============
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,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUES:
Tuition $185,673 $155,166 $550,553 $465,480
Other Educational 11,077 14,090 34,141 39,391
Interest 50 111 148 313
--------- --------- --------- ---------
Total Revenues 196,800 169,367 584,842 505,184
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 105,114 88,312 314,199 273,963
Student Services and
Administrative Expense 67,045 56,714 205,150 164,442
Interest Expense 1,885 47 6,013 141
--------- --------- --------- ---------
Total Costs and Expenses 174,044 145,073 525,362 438,546
--------- --------- --------- ---------
Income Before Income Taxes 22,756 24,294 59,480 66,638
Income Tax Provision 6,461 9,402 17,115 25,789
Non-Recurring Tax Benefits - - - (8,150)
--------- --------- --------- ---------
NET INCOME $16,295 $14,892 $42,365 $48,999
========= ========= ========= =========
EARNINGS PER COMMON SHARE
Basic $0.23 $0.21 $0.60 $0.70
========= ========= ========= =========
Diluted $0.23 $0.21 $0.60 $0.70
========= ========= ========= =========
CONTACT: DeVry Inc.
Investor Relations
Joan Bates, 630-574-1949
or
Media Relations
Jonelle Niffenegger, 630-706-3212