Exhibit 99.1
DeVry Inc. Reports Fiscal 2005 Third Quarter Results, Spring Enrollment at DeVry
University and Ross University
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 21, 2005--DeVry Inc. --
(NYSE:DV), an international higher-education company, today reported financial
results for the third quarter and first nine months of fiscal year 2005 ended
March 31, 2005. DeVry Inc. also announced spring enrollments at DeVry University
and Ross University.
Revenues for the third quarter were $201.9 million, compared with $196.8
million for the same quarter one year ago. For the nine-month period ended March
31, 2005, revenues of $584.8 million were identical to the revenues reported for
the same period last year.
Net income for the quarter totaled $11.9 million, or $0.17 per fully
diluted share, compared with $16.3 million, or $0.23 per fully diluted share,
for the same period last year. For the first nine months of fiscal 2005, net
income was $22.1 million, or $0.31 per share, compared with $42.4 million, or
$0.60 per share for the first nine months of fiscal 2004.
"Our third quarter financial results reflect lower total DeVry University
enrollments caused by recruiting underperformance in previous terms and a
greater proportion of part-time adult students, as enrollments at DeVry
University Centers (DVUCs) and online have grown in recent terms," said Ronald
L. Taylor, chief executive officer of DeVry Inc. "Our operating plan continues
to focus on new student enrollments, while generating additional operating
efficiencies to reduce expenses and improve financial results."
Third quarter results were negatively affected by a $2.9 million pre-tax
charge for previously announced workforce reductions. As a result of these
workforce reductions, savings in fiscal 2006 are estimated at more than $10.5
million. During the fourth quarter, the company announced an additional
voluntary workforce reduction program. The company expects charges in the fourth
quarter related to this program to approximate the charges recorded in the third
quarter.
At DeVry University, new undergraduate student enrollment in spring 2005
increased 6.4 percent to 8,902 students, compared to 8,366 in spring 2004. Total
student enrollment in spring 2005 declined 6.8 percent to 38,083 students,
compared to 40,870 students in the previous year as a result of previous
enrollment shortfalls.
For the March 2005 session, the number of coursetakers at Keller Graduate
School of Management increased 5.8 percent to 12,496 from 11,812 coursetakers in
March 2004. In the January 2005 session, coursetakers also increased 5.8 percent
to 12,597 coursetakers compared to 11,909 in the prior year.
The total number of online undergraduate and graduate coursetakers in
spring 2005 increased 79.1 percent to 19,759, compared to 11,032 in the same
term a year ago.
The total number of students enrolled at Ross University for the January
2005 term declined 3.3 percent to 3,122, compared to 3,229 last year as a result
of higher standards in Ross University's admission criteria and academic
progress requirements. The company expects the revised admission and academic
policies to have a modest negative impact on student enrollment in the May 2005
class.
"Improved undergraduate new student enrollment was fueled by the continued
demand for our DVUC and online delivery modes," said Daniel Hamburger, DeVry's
president and chief operating officer. "We expect continued strength in our
online operations and at our DVUCs into the summer term, but the outcomes of our
initiatives to improve full-time day enrollments at the large campus locations
are still unclear. We expect some variability in enrollments as we continue to
refine our marketing initiatives."
During the third quarter DeVry University announced plans to open a second
center in the Twin Cities area and expects to begin offering undergraduate and
graduate degree programs in July 2005, and announced a plan to open a new center
in San Antonio in July 2005, pending necessary approvals. DeVry University
currently operates 74 locations in North America.
Also during the third quarter, DeVry completed the acquisition of Deaconess
College of Nursing for approximately $5.3 million in cash. Deaconess offers
associate and bachelor's degree programs in nursing and a bachelor's degree
completion program designed for registered nurses who have previously completed
an associate degree program. Located in St. Louis, Missouri, the school
currently enrolls approximately 450 students.
DeVry Inc. will hold a conference call to discuss its fiscal 2005 third
quarter results on April 21, 2005 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 800-366-7417 (domestic)
or 303-262-2194 (international). DeVry Inc. will also broadcast the conference
call live via the Internet. Interested parties may access the web cast through
the Investor Relations section of the company's web site at
http://www.shareholder.com/devry/medialist.cfm. 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 May 6, 2005.
To access the replay, dial 800-405-2236 (domestic) or 303-590-3000
(international), passcode 11027823 or to access the web cast replay, visit
http://www.shareholder.com/devry/medialist.cfm.
DeVry Inc. (NYSE:DV) is the holding company for DeVry University, Ross
University, Deaconess College of Nursing 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. Deaconess College of Nursing offers associate and bachelor's degree
programs in nursing. 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.
Spring 2005 Enrollment Results
- ------------------------------
DeVry University Spring 2005 Spring 2004 Increase/
(Decrease)
New undergraduate students
(onsite/online) 8,902 8,366 6.4%
Total undergraduate students
(onsite/online) 38,083 40,870 (6.8%)
March 2005 March 2004 Increase/
(Decrease)
Graduate coursetakers
(onsite/online) 12,496 11,812 5.8%
Online coursetakers (a) 19,759 11,032 79.1%
January 2005 January 2004 Increase/
(Decrease)
Ross University 3,122 3,229 (3.3%)
(a) Online coursetakers are included in the new and total
undergraduate and graduate coursetaker counts.
Third Quarter Ended March 31:
-----------------------------
Fiscal Year Fiscal Year
2005 2004
----------------------------------
Revenues $201,930,000 $196,800,000
Net Income 11,947,000 16,295,000
Earnings Per Common Share
Basic: $0.17 $0.23
Diluted: $0.17 $0.23
Number of Common Shares
Basic 70,374,000 70,187,000
Diluted 70,547,000 70,885,000
Nine Months Ended March 31:
---------------------------
Fiscal Year Fiscal Year
2005 2004
----------------------------------
Revenues $584,848,000 $584,842,000
Income Before Cumulative
Effect of Change in
Accounting 20,293,000 42,365,000
Net Income 22,103,000 42,365,000
Earnings Per Common Share
Basic:
Income Before Cumulative
Effect of Change in
Accounting $0.29 $0.60
Net Income $0.31 $0.60
Diluted:
Income Before Cumulative
Effect of Change in
Accounting $0.29 $0.60
Net Income $0.31 $0.60
Number of Common Shares
Basic 70,364,000 70,088,000
Diluted 70,567,000 70,703,000
March 31:
---------
Actual Shares Outstanding 70,378,000 70,282,000
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31, June 30, March 31,
2005 2004 2004
---------- ---------- ----------
ASSETS
- ------
Current Assets
--------------
Cash and Cash Equivalents $138,187 $146,227 $147,203
Restricted Cash 33,175 13,457 29,998
Accounts Receivable, Net 119,012 28,150 87,206
Inventories 160 3,281 1,978
Deferred Income Taxes 10,820 7,619 9,944
Prepaid Expenses and Other 9,974 10,141 6,900
--------- --------- ---------
Total Current Assets 311,328 208,875 283,229
--------- --------- ---------
Land, Buildings and Equipment, net
----------------------------------
Land 64,583 64,256 60,306
Buildings 205,042 203,651 199,341
Equipment 233,133 222,898 219,921
Construction In Progress 21,475 6,214 3,477
--------- --------- ---------
524,233 497,019 483,045
Accumulated Depreciation (237,651) (210,132) (202,036)
--------- --------- ---------
Land, Buildings and
Equipment, Net 286,582 286,887 281,009
--------- --------- ---------
Other Assets
------------
Intangible Assets, Net 76,350 86,346 89,862
Goodwill 289,863 284,397 285,841
Perkins Program Fund, Net 12,847 12,247 11,991
Other Assets 4,871 5,380 4,682
--------- --------- ---------
Total Other Assets 383,931 388,370 392,376
--------- --------- ---------
TOTAL ASSETS $981,841 $884,132 $956,614
========= ========= =========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31, June 30, March 31,
2005 2004 2004
---------- ---------- ----------
LIABILITIES
- -----------
Current Liabilities
-------------------
Current Maturities of
Revolving Loan $- $35,000 $-
Accounts Payable 22,433 27,349 17,732
Accrued Salaries, Wages &
Benefits 32,551 31,041 30,203
Accrued Expenses 31,246 24,610 26,755
Advance Tuition Payments 10,238 16,819 8,900
Deferred Tuition Revenue 149,729 21,830 153,948
--------- --------- ---------
Total Current Liabilities 246,197 156,649 237,538
--------- --------- ---------
Non-Current Liabilities
-----------------------
Revolving Loan 70,000 90,000 105,000
Senior Debt 125,000 125,000 125,000
Deferred Income Taxes 22,301 17,660 13,429
Deferred Rent and Other 18,232 16,566 15,504
--------- --------- ---------
Total Non-Current
Liabilities 235,533 249,226 258,933
--------- --------- ---------
TOTAL LIABILITIES 481,730 405,875 496,471
--------- --------- ---------
SHAREHOLDERS' EQUITY
- --------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,378,369, 70,331,323 and
70,281,623, Shares Issued
and Outstanding at March
31, 2005, June 30, 2004
and March 31, 2004,
Respectively. 705 704 703
Additional Paid-in Capital 72,057 71,797 69,426
Retained Earnings 427,139 405,036 389,340
Accumulated Other Comprehensive
Income 210 720 674
--------- --------- ---------
TOTAL SHAREHOLDERS' EQUITY 500,111 478,257 460,143
--------- --------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $981,841 $884,132 $956,614
========= ========= =========
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,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
REVENUES:
Tuition $190,713 $185,673 $552,824 $550,553
Other Educational 11,068 11,077 31,731 34,141
Interest 149 50 293 148
--------- --------- --------- ---------
Total Revenues 201,930 196,800 584,848 584,842
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational
Services 110,605 105,114 328,326 314,199
Student Services and
Administrative Expense 73,472 67,045 223,743 205,150
Interest Expense 2,309 1,885 6,391 6,013
--------- --------- --------- ---------
Total Costs and
Expenses 186,386 174,044 558,460 525,362
--------- --------- --------- ---------
Income Before Income Taxes
and Cumulative Effect of
Change in Accounting 15,544 22,756 26,388 59,480
Income Tax Provision 3,597 6,461 6,095 17,115
--------- --------- --------- ---------
Income Before Cumulative
Effect of Change in
Accounting 11,947 16,295 20,293 42,365
Cumulative Effect of Change in
Accounting, Net of Tax - - 1,810 -
--------- --------- --------- ---------
NET INCOME $11,947 $16,295 $22,103 $42,365
========= ========= ========= =========
EARNINGS PER COMMON SHARE
Basic
Income Before Cumulative
Effect of Change in
Accounting $0.17 $0.23 $0.29 $0.60
Cumulative Effect of Change
in Accounting - - 0.02 -
--------- --------- --------- ---------
Net Income $0.17 $0.23 $0.31 $0.60
========= ========= ========= =========
Diluted
Income Before Cumulative
Effect of Change in
Accounting $0.17 $0.23 $0.29 $0.60
Cumulative Effect of Change
in Accounting - - 0.02 -
--------- --------- --------- ---------
Net Income $0.17 $0.23 $0.31 $0.60
========= ========= ========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Nine Months
Ended March 31,
--------------------
2005 2004
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $22,103 $42,365
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation 30,369 30,158
Amortization 11,735 10,968
Provision for Refunds and
Uncollectible Accounts 31,538 25,564
Deferred Income Taxes 1,440 1,794
Loss on Disposals of Land, Buildings
and Equipment 638 336
Changes in Assets and Liabilities,
Net of Effects from Acquisition of
Business:
Restricted Cash (19,652) (15,946)
Accounts Receivable (121,618) (88,375)
Inventories 3,137 2,337
Prepaid Expenses And Other 765 807
Accounts Payable (5,403) (1,134)
Accrued Salaries, Wages, Expenses
and Benefits 7,223 (5,600)
Advance Tuition Payments (6,761) (1,668)
Deferred Tuition Revenue 126,946 137,657
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 82,460 139,263
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (30,561) (26,149)
Payments for Purchases of Businesses,
net of Cash Acquired (4,861) (1,493)
--------- ---------
NET CASH USED IN INVESTING ACTIVITIES (35,422) (27,642)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 261 2,140
Proceeds From Revolving Credit Facility 10,000 -
Repayments Under Revolving Credit Facility (65,000) (60,000)
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (54,739) (57,860)
--------- ---------
Effects of Exchange Rate Differences (339) (29)
--------- ---------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (8,040) 53,732
Cash and Cash Equivalents at Beginning of Period 146,227 93,471
--------- ---------
Cash and Cash Equivalents at End of Period $138,187 $147,203
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid During the Period $4,920 $5,562
Income Tax Payments During the Period, Net 4,760 22,044
CONTACT: DeVry Inc.
Joan Bates (Investors), 630-574-1949
or
Dresner Corporate Services
Kyra Kyles (Media), 312-780-7208