Exhibit 99.1
DeVry Inc. Reports Fiscal 2005 First Quarter Results
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Oct. 20, 2004--DeVry Inc.
(NYSE:DV), an international higher education company, today reported
financial results for the first quarter of fiscal year 2005 ended
September 30, 2004.
Financial and Operating Results
Revenues for the first quarter were $188.4 million, compared with
$189.2 million for the same quarter one year ago. Net income for the
quarter totaled $4.3 million, or $0.06 per fully diluted share,
compared with $10.5 million, or $0.15 per fully diluted share, for the
same period last year. First quarter results include $0.02 in earnings
per share from a change in accounting reflecting the realignment of
Becker Professional Review's previous reporting year-end to that of
the DeVry Inc. year-end.
The decrease in revenue in the first quarter is attributable to
the previously reported decrease in the total number of undergraduate
students enrolled in technology programs at DeVry University in the
2004 summer term. In addition to the effects of continued weak
technology enrollments, DeVry's earnings were negatively affected by a
greater proportion of part-time students enrolled in its undergraduate
courses. Also affecting results in the first quarter was expense
incurred in advance of revenue to support the growth of online
programs and DeVry University Centers (DVUCs). These expenses include
new marketing programs; increased student services staff and
additional information systems infrastructure.
"While we are extremely dissatisfied with results this quarter, we
do not expect this depressed level of earnings performance to continue
throughout fiscal 2005," said Ronald L. Taylor, chief executive
officer of DeVry Inc. "We remain committed to the previously announced
initiatives which we believe will lead to increased full-time
undergraduate enrollments and continued strong momentum with adult
learners."
During the first quarter, the company opened new DVUCs in Florida,
Georgia, Minnesota, Pennsylvania and Texas. In addition, the company
began offering new online concentrations in security management and
hospitality management and plans to offer its associate degree program
in health information technology online early next year. Also, during
the quarter, DeVry University expanded its biomedical technology
programs to additional sites; bringing the total number of locations
where one or more of these programs is offered to 18.
DeVry Inc. will hold a conference call to discuss its fiscal 2005
first quarter results on October 20, 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 800-257-1836
(domestic) or 303-262-2190 (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
October 29, 2004. To access the replay, dial 800-405-2236 (domestic)
or 303-590-3000 (international), passcode 11011172 or to access the
webcast replay, visit www.investor.devry.com.
First Quarter Ended September 30:
Fiscal Year Fiscal Year
2005 2004
Revenues $188,396,000 $189,236,000
Income before Cumulative Effect
of Change in Accounting 2,490,000 10,492,000
Net Income 4,300,000 10,492,000
Earnings Per Common Share
Basic:
Income Before Cumulative
Effect of Change in Accounting $0.04 $0.15
Net Income $0.06 $0.15
Diluted:
Income Before Cumulative
Effect of Change in Accounting $0.04 $0.15
Net Income $0.06 $0.15
Number of Common Shares
Basic 70,349,000 70,030,000
Diluted 70,677,000 70,637,000
September 30:
Actual Shares Outstanding 70,365,000 70,040,000
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, which
includes Stalla CFA 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.
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
-----------------------------
(Dollars in Thousands)
September June September
30, 30, 30,
2004 2004 2003
---------- --------- ----------
(Unaudited) (Unaudited)
ASSETS
- ------
Current Assets
--------------
Cash and Cash Equivalents $115,071 $146,227 $117,885
Restricted Cash 27,702 13,457 21,348
Accounts Receivable, Net 64,298 28,150 50,888
Inventories 1,376 3,281 3,072
Deferred Income Taxes 6,454 7,619 11,358
Prepaid Expenses and Other 11,029 10,141 9,990
---------- --------- ----------
Total Current Assets 225,930 208,875 214,541
---------- --------- ----------
Land, Buildings and Equipment, Net 282,914 286,887 283,847
---------------------------------- ---------- --------- ----------
Other Assets
------------
Intangible Assets, Net 82,709 86,346 96,475
Goodwill 284,397 284,397 283,298
Perkins Program Fund, Net 12,472 12,247 11,291
Other Assets 5,457 5,380 5,665
---------- --------- ----------
Total Other Assets 385,035 388,370 396,729
---------- --------- ----------
TOTAL ASSETS $893,879 $884,132 $895,117
========== ========= ==========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
-----------------------------
(Dollars in Thousands)
September June September
30, 30, 30,
2004 2004 2003
---------- --------- ----------
(Unaudited) (Unaudited)
LIABILITIES
- -----------
Current Liabilities
-------------------
Current Maturities of Revolving
Loan $ - $ 35,000 $ -
Accounts Payable 17,601 27,349 14,635
Accrued Salaries, Wages &
Benefits 33,316 31,041 38,012
Accrued Expenses 28,062 24,610 28,836
Advance Tuition Payments 16,981 16,819 8,870
Deferred Tuition Revenue 82,311 21,830 87,479
---------- --------- ----------
Total Current Liabilities 178,271 156,649 177,832
---------- --------- ----------
Other Liabilities
-----------------
Revolving Loan 75,000 90,000 138,000
Senior Debt 125,000 125,000 125,000
Deferred Income Taxes 17,660 17,660 13,049
Deferred Rent and Other 15,481 16,566 14,689
---------- --------- ----------
Total Other Liabilities 233,141 249,226 290,738
---------- --------- ----------
TOTAL LIABILITIES 411,412 405,875 468,570
---------- --------- ----------
SHAREHOLDERS' EQUITY
- --------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,365,498, 70,331,323 and
70,040,257, Shares Issued and
Outstanding at September 30, 2004,
June 30, 2004 and September 30,
2003, respectively. 704 704 701
Additional Paid-in Capital 71,927 71,797 67,678
Retained Earnings 409,336 405,036 357,467
Accumulated Other Comprehensive
Income 500 720 701
---------- --------- ----------
TOTAL SHAREHOLDERS' EQUITY 482,467 478,257 426,547
---------- --------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $893,879 $884,132 $895,117
========== ========= ==========
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
For The Quarter
Ended September 30,
-------------------
2004 2003
--------- ---------
REVENUES:
Tuition $177,984 $177,594
Other Educational 10,352 11,585
Interest 60 57
--------- ---------
Total Revenues 188,396 189,236
--------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 109,485 104,450
Student Services and Administrative Expense 73,608 67,949
Interest Expense 1,991 2,156
--------- ---------
Total Costs and Expenses 185,084 174,555
--------- ---------
Income Before Income Taxes 3,312 14,681
Income Tax Provision 822 4,189
--------- ---------
Income Before Cumulative Effect of Change in
Accounting 2,490 10,492
Cumulative Effect of Change in Accounting 1,810 -
--------- ---------
NET INCOME $ 4,300 $ 10,492
========= =========
EARNINGS PER COMMON SHARE
Basic
Income Before Cumulative Effect of Change in
Accounting $ 0.04 $ 0.15
Cumulative Effect of Change in Accounting 0.02 -
--------- ---------
Net Income $ 0.06 $ 0.15
========= =========
Diluted
Income Before Cumulative Effect of Change in
Accounting $ 0.04 $ 0.15
Cumulative Effect of Change in Accounting 0.02 -
--------- ---------
Net Income $ 0.06 $ 0.15
========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
For The Quarter
Ended September 30,
-------------------
2004 2003
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 4,300 $ 10,492
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation 9,630 9,119
Amortization 3,907 3,649
Provision for Refunds and Uncollectible
Accounts 9,225 9,579
Deferred Income Taxes 1,165 -
Loss on Disposals of Land, Buildings and
Equipment 55 67
Changes in Assets and Liabilities, Net of
Effects from Acquisitions of Businesses:
Restricted Cash (14,245) (7,296)
Accounts Receivable (45,348) (36,192)
Inventories 1,905 1,243
Prepaid Expenses And Other (2,300) (2,690)
Perkins Program Fund Contributions and
Other (250) -
Accounts Payable (9,748) (4,231)
Accrued Salaries, Wages, Expenses and
Benefits 5,727 4,290
Advance Tuition Payments 162 (1,698)
Deferred Tuition Revenue 60,481 71,188
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 24,666 57,520
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (5,712) (7,679)
Adjustment to Payment for Purchase of Business - 1,185
--------- ---------
NET CASH USED IN INVESTING ACTIVITIES (5,712) (6,494)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 130 390
Repayments Under Revolving Credit Facility (50,000) (27,000)
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (49,870) (26,610)
--------- ---------
Effects of Exchange Rate Differences (240) (2)
--------- ---------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (31,156) 24,414
Cash and Cash Equivalents at Beginning of Period 146,227 93,471
--------- ---------
Cash and Cash Equivalents at End of Period $115,071 $117,885
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid During the Period $ 1,567 $ 1,600
Income Tax Payments During the Period, Net 314 8,427
CONTACT: DeVry Inc.
Joan Bates, 630-574-1949 (Investor Relations)
or
Jonelle Niffenegger, 630-706-3212 (Media Relations)