Exhibit 99.1
DeVry Inc. Reports Fiscal 2004 Fourth-Quarter,
Year-End Results and Summer Term Enrollment
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Aug. 18, 2004--DeVry Inc.
(NYSE:DV), an international higher education company, today reported
financial results for the fiscal 2004 fourth quarter and year-end, and
student enrollment for the 2004 summer term.
Financial and Operating Results
Fiscal 2004 fourth quarter revenues were $200.0 million, an
increase of 14.7 percent compared with $174.4 million for the same
period one year ago. Net income for the fourth quarter was $15.7
million, or $0.22 per diluted share, up 29.2 percent compared with
$12.1 million, or $0.17 per share for the same period last year, which
included pretax charges of approximately $2.6 million related to
workforce reductions in both eastern Canada and the United States.
Revenues for the fiscal year ended June 30, 2004, were $784.9
million, an increase of 15.5 percent compared with $679.6 million in
fiscal 2003. Net income for the year was $58.1 million or $0.82 per
diluted share, a decline of 5.0 percent compared with $61.1 million or
$0.87 per share in fiscal 2003, which included certain non-recurring
income tax benefits totaling $8.1 million or approximately $0.12 per
share.
DeVry also said that as a result of a change in the CPA exam
schedule, it has realigned Becker Professional Review's fiscal
calendar to that of DeVry Inc. Although the company previously
indicated that this change would be recorded in the fourth quarter of
2004, the appropriate accounting treatment is to recognize the change
in the first quarter of fiscal year 2005. The realignment is expected
to add $0.02 to earnings for the year.
"The demand for entry-level accountants is reported to be the
highest it has been in many years," said Ronald Taylor, chief
executive officer of DeVry Inc. "We see current enrollment for
Becker's CPA review courses recovering nicely and expect future Becker
enrollment to reflect the increased demand for accountants."
"As of July 1, we significantly strengthened our management team
with the appointment of Daniel Hamburger as president and chief
operating officer and John Skubiak as president of DeVry University,
in addition to the previous hiring of Paul Eppen as chief marketing
officer," commented Taylor. "These changes provide an immediate boost
to our management team and give us the management resources necessary
to achieve our strategic goals."
In fiscal 2004, new DeVry University Centers (DVUCs) were opened
in Indianapolis, Las Vegas, Philadelphia's Center City, Pittsburgh,
Portland, Sacramento, Seven Hills (Cleveland), Ohio, and Gurnee, Ill.
Also during the fourth quarter, construction of a new facility in
northern Colorado Springs was announced, and a new Fort Worth, Texas
location is scheduled to begin classes in September 2004. Most
recently, the company announced its plans to open a new center in
Broward County, Florida. DeVry currently operates 71 locations,
comprising 23 DeVry University campuses and 48 DVUCs, and offers
undergraduate and graduate degree programs online.
During the fourth quarter, DeVry University announced two new
online concentrations within its business administration bachelor
degree program. Also during the quarter, Michigan State University and
The Ohio State University became clinical training affiliates of Ross
University School of Veterinary Medicine.
Summer Enrollment
DeVry University announced today that new undergraduate student
enrollment for the 2004 summer term increased by 0.9 percent to
10,522, compared with 10,431 in the previous year. Total undergraduate
student enrollment in the 2004 summer term was 38,036, a decline of
5.8 percent, compared to 40,398 for the 2003 summer term. These
results exclude enrollments at DeVry's Toronto location, which last
enrolled new students in July 2003.
At DeVry University's Keller Graduate School of Management (KGSM),
the number of coursetakers for the 2004 July term increased 8.4
percent to 10,276 compared with 9,483 in the July term last year.
During fiscal 2004, KGSM aligned its academic calendar with that of
DeVry University. The annual schedule for graduate coursework is now
six eight-week terms as opposed to five 10-week terms in the prior
KGSM calendar.
The total number of online undergraduate and graduate coursetakers
for the 2004 summer term increased 92.8 percent to 12,590 compared
with 6,531 in the same term a year ago.
The total number of students enrolled at Ross University for the
2004 May term was 3,310 compared to 2,852 in the same period last
year, an increase of 16.1 percent.
"There is strong interest in our business and healthcare programs,
and significant growth at the graduate school, at the DVUCs, online
and at Ross University; however, undergraduate technology enrollments
continue to be weak," stated Taylor. "We are adopting a comprehensive
program to aggressively address this issue and expect to see
improvements in the area of recruiting. We are, of course, subject to
ongoing general market conditions in the technology area."
Daniel Hamburger, president and chief operating officer,
commented, "Modifications have been implemented to refocus our
marketing and sales efforts on specific audiences, which include
recent high school graduates, adult learners, technology and business
students and those interested in our online programs. These changes
include a revamped high school outreach program and advertisements
specifically oriented toward high school students."
"Though weak technology enrollments will continue to affect
performance in the near term, we are confident that with the plan we
have in place, we will be successful in attracting an increasing
number of full-time students looking for a high-quality education and
an accelerated entry into a subsequent career," concluded Hamburger.
DeVry Inc. will hold a conference call to discuss its fiscal 2004
fourth-quarter and year-end results on August 18, 2004 at 3:30 p.m.
Central time (4:30 p.m. Eastern time). The conference call will be led
by Ronald Taylor, chief executive officer, Daniel Hamburger, president
and chief operating officer and Norman Levine, senior vice president
and chief financial officer.
For those wishing to participate by telephone, dial 800-218-0713
(domestic) or 303-262-2130 (international). DeVry Inc. 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 at www.investor.devry.com. 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.
The company will archive a telephone replay of the call until
August 27, 2004. To access the replay, dial 800-405-2236 (domestic) or
303-590-3000 (international), passcode 11004930 or to access the
Webcast replay, visit www.investor.devry.com.
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.
Summer 2004 Enrollment Results
- ------------------------------
DeVry University (excluding Toronto) Summer Summer Increase/
2004 2003 (Decrease)
New undergraduate students (onsite/online) 10,522 10,431 0.9%
Total undergraduate students
(onsite/online) 38,036 40,398 (5.8%)
July July Increase/
2004 2003 (Decrease)
Graduate coursetakers (onsite/online) 10,276 9,483 8.4%
Online coursetakers(1) 12,590 6,531 92.8%
May May Increase/
2004 2003 (Decrease)
Ross University 3,310 2,852 16.1%
(1)Online coursetakers are included in the total undergraduate and
graduate enrollment number.
DeVry Inc.
For the Quarter Ended For the Fiscal Year Ended
June 30, 2004 June 30, 2003 June 30, 2004 June 30, 2003
Revenues $200,043,000 $174,395,000 $784,885,000 $679,579,000
Net Income 15,696,000 12,149,000 58,061,000 61,148,000
Earnings Per
Common Share
Basic $0.22 $0.17 $0.83 $0.87
Diluted $0.22 $0.17 $0.82 $0.87
Number of
Common Shares
Basic 70,306,000 69,986,000 70,142,000 69,942,000
Diluted 70,926,000 70,548,000 70,757,000 70,336,000
Actual Shares
Outstanding
at June 30: 70,331,000 70,021,000
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
PRELIMINARY
-----------
For The Three Months Ended
June 30,
-----------------------------
2004 2003 2002
--------- --------- --------
REVENUES:
Tuition $186,993 $162,846 $150,139
Other Educational 13,032 11,419 11,732
Interest 18 130 142
--------- --------- ---------
Total Revenues 200,043 174,395 162,013
--------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 105,909 92,112 86,897
Student Services and
Administrative Expense 70,437 61,325 48,206
Interest Expense 1,821 1,139 63
--------- --------- ---------
Total Costs and Expenses 178,167 154,576 135,166
--------- --------- ---------
Income Before Income Taxes 21,876 19,819 26,847
Income Tax Provision 6,180 7,670 10,656
--------- --------- ---------
NET INCOME $ 15,696 $ 12,149 $ 16,191
========= ========= =========
EARNINGS PER COMMON SHARE
Basic $0.22 $0.17 $0.23
======== ======== =========
Diluted $0.22 $0.17 $0.23
======== ======== =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
PRELIMINARY
-----------
For The Year Ended
June 30,
----------------------------
2004 2003 2002
--------- --------- --------
REVENUES:
Tuition $737,546 $628,326 $600,400
Other Educational 47,173 50,810 47,181
Interest 166 443 553
--------- --------- ---------
Total Revenues 784,885 679,579 648,134
--------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational
Services 420,108 366,075 347,986
Student Services and
Administrative Expense 275,587 225,767 188,712
Interest Expense 7,834 1,280 807
--------- --------- --------
Total Costs and
Expenses 703,529 593,122 537,505
--------- --------- --------
Income Before Income
Taxes 81,356 86,457 110,629
Income Tax Provision 23,295 33,459 43,574
Non-recurring Tax
Benefit - (8,150) -
--------- --------- ---------
NET INCOME $ 58,061 $ 61,148 $ 67,055
========= ========= =========
EARNINGS PER COMMON
SHARE
Basic $0.83 $0.87 $0.96
======== ======== ========
Diluted $0.82 $0.87 $0.95
======== ======== ========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
PRELIMINARY
-----------
June 30,
--------------------
2004 2003
--------- ---------
ASSETS:
Current Assets:
---------------
Cash and Cash Equivalents $146,227 $93,471
Restricted Cash 13,457 14,052
Accounts Receivable, Net 28,150 24,275
Inventories 3,281 4,315
Deferred Income Taxes 7,619 11,358
Prepaid Expenses and Other 9,356 6,988
--------- ---------
Total Current Assets 208,090 154,459
--------- ---------
Land, Buildings and Equipment:
------------------------------
Land 64,256 59,888
Buildings 203,651 188,320
Equipment 222,898 207,405
Construction In Progress 6,214 12,662
--------- ---------
497,019 468,275
Accumulated Depreciation (210,132) (182,921)
--------- ---------
Land, Buildings and Equipment, Net 286,887 285,354
--------- ---------
Other Assets:
-------------
Intangible Assets, Net 86,345 103,330
Goodwill 283,750 280,979
Perkins Program Fund, Net 12,247 11,291
Other Assets 4,232 6,003
--------- ---------
Total Other Assets 386,574 401,603
--------- ---------
TOTAL ASSETS $881,551 $841,416
========= =========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
PRELIMINARY
-----------
June 30,
--------------------
2004 2003
--------- ---------
LIABILITIES:
Current Liabilities:
--------------------
Current Maturities of Revolving Loan $35,000 $15,000
Accounts Payable 27,349 18,866
Accrued Salaries, Wages and Benefits 31,041 30,791
Accrued Expenses 18,476 31,767
Advance Tuition Payments 16,819 10,568
Deferred Tuition Revenue 21,830 16,291
--------- ---------
Total Current Liabilities 150,515 123,283
--------- ---------
Other Liabilities
-----------------
Revolving Loan 90,000 150,000
Senior Debt 125,000 125,000
Deferred Income Taxes 20,379 13,049
Deferred Rent and Other 17,400 14,417
--------- ---------
Total Other Liabilities 252,779 302,466
--------- ---------
TOTAL LIABILITIES 403,294 425,749
--------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 Par Value, 200,000,000
Shares Authorized; 70,331,323 and 70,021,513
Shares Outstanding at June 30, 2004 and
2003, Respectively 704 701
Additional Paid-in Capital 71,797 67,288
Retained Earnings 405,036 346,975
Accumulated Other Comprehensive Income 720 703
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 478,257 415,667
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $881,551 $841,416
========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
PRELIMINARY
-----------
For The Year Ended June 30,
----------------------------
2004 2003 2002
--------- --------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $58,061 $61,148 $67,055
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 40,836 37,758 32,725
Amortization 14,748 2,574 811
Provision for Refunds and
Uncollectible Accounts 35,495 34,501 34,249
Deferred Income Taxes 5,472 8,940 2,630
Loss on Disposals and Adjustments to
Land, Buildings and Equipment 439 263 188
Changes in Assets and Liabilities,
Net of Effects from
Acquisitions of Businesses:
Restricted Cash 595 6,206 1,220
Accounts Receivable (39,340) (23,633) (34,525)
Inventories 1,034 592 (8)
Prepaid Expenses And Other (2,368) (3,070) 677
Perkins Program Fund
Contribution and Other 2,636 (1,114) 193
Accounts Payable 8,483 (2,132) (105)
Accrued Salaries, Wages, Expenses
and Benefits (3,472) 2,061 5,363
Advance Tuition Payments 6,251 (6,997) 1,704
Deferred Tuition Revenue 5,539 (16,904) 1,330
--------- --------- --------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 134,409 100,193 113,507
--------- --------- --------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures (42,808) (43,762) (85,873)
Payments for Purchases of Businesses,
Net of Cash Acquired (1,493) (295,908) -
--------- --------- --------
NET CASH USED IN INVESTING ACTIVITIES (44,301) (339,670) (85,873)
--------- --------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of
Stock Options 2,631 404 1,068
Comprehensive Income from Interest Rate
Hedge 18 - -
Proceeds from Revolving
Credit Facility 25,000 165,000 55,000
Repayments Under Revolving Credit
Facility (65,000) - (55,000)
Proceeds from Senior Note
Issuance 0 125,000 -
--------- --------- --------
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES (37,351) 290,404 1,068
--------- --------- --------
Effects of Exchange Rate Differences (1) 29 (46)
--------- --------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 52,756 50,956 28,656
Cash and Cash Equivalents at Beginning
of Year 93,471 42,515 13,859
--------- --------- --------
Cash and Cash Equivalents at
End of Year $146,227 $93,471 $42,515
========= ========= ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Interest Paid During the
Year $7,091 $662 $807
Income Taxes Paid During the
Year, Net 22,471 17,373 42,486
CONTACT: DeVry Inc.
Investor Relations
Joan Bates, 630-574-1949
or
Linden Alschuler & Kaplan
Hannah Arnold, 212-575-4545