Exhibit 99.1
DeVry Inc. Reports Fiscal 2005 Fourth Quarter, Year-End Results, Summer
Enrollment; DeVry University New Undergraduate Students Increased 7.3 Percent
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Aug. 18, 2005--DeVry Inc.
(NYSE:DV), an international higher education company, today reported
financial results for the fiscal 2005 fourth quarter and year-end, and
2005 summer enrollment.
Revenues for the fourth quarter were $196.5 million, compared with
$200 million for the same quarter one year ago. For the full-year
ended June 30, 2005, revenues were $781.3 million, compared to $784.9
million last year.
Net income for the quarter totaled $6.4 million, or $0.09 per
fully diluted share, compared with $15.7 million, or $0.22 per fully
diluted share, for the same period last year. The fiscal 2005 fourth
quarter includes approximately $1.5 million in pre-tax charges related
to the proposed sale of a facility in the Denver area and $3.3 million
for costs related to workforce reductions in the fourth quarter of
fiscal 2005. For the full-year, net income was $28.5 million or $0.40
per share.
"Although financial results in fiscal 2005 were lower than the
previous year, we have established a strong foundation for improved
results in fiscal 2006 and beyond," said Ronald L. Taylor, DeVry's
chief executive officer. "Positive new student enrollment in spring
and summer at DeVry University is very encouraging and reflects solid
implementation of our growth plan. We remain optimistic about the
growth prospects open to us within the areas of business, technology
and healthcare."
At DeVry University, new undergraduate student enrollment in
summer 2005 increased 7.3 percent to 11,293 students, compared to
10,522 in summer 2004. Total undergraduate student enrollment in
summer 2005 was 36,220 students, or 4.8 percent lower compared to
38,036 students in the prior year, as a result of previous enrollment
shortfalls.
For the May 2005 session, the total number of coursetakers at
Keller Graduate School of Management increased 8.7 percent to 12,113
coursetakers compared to 11,140 in the prior year. In the July 2005
session, coursetakers increased 11.3 percent to 11,434 from 10,276
coursetakers in July 2004.
The total number of online undergraduate and graduate coursetakers
for summer 2005, included in the enrollment figures above, increased
67.3 percent to 21,068, compared to 12,590 last year.
The total number of students enrolled at Ross University for the
May 2005 term declined 8.5 percent to 3,029, compared to 3,310 last
year. The decrease in enrollments is a result of higher standards in
Ross University's admission criteria and academic progress
requirements, which affected both new student recruiting and student
retention. The company expects new student enrollment at Ross to
improve during fiscal 2006 as a result of a reallocation of marketing
and recruiting resources.
During fiscal 2005, nearly 40,000 students enrolled in Becker
Professional Review exam preparation courses. Becker posted record
revenue of almost $44 million for the 2005 fiscal year.
"We are fully engaged in implementing our five-point plan to
return to historical growth in enrollment and to increase operational
efficiency," said Daniel Hamburger, president and chief operating
officer. "While we have seen improvement in many areas, there is still
progress to be made in recruiting full-time day students at DeVry
University and in growing enrollments at Ross University."
DeVry Inc. will hold a conference call to discuss its fiscal 2005
fourth quarter and year-end results on August 18, 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 800-240-5318
(domestic) or 303-262-2140 (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
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
September 1, 2005. To access the replay, dial 800-405-2236 (domestic)
or 303-590-3000 (international), enter the passcode 11036783 or to
access the webcast replay, please 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 degree programs. 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
and chartered financial analyst exams. DeVry Inc. is based in Oakbrook
Terrace, Ill. For more information about the company, visit
http://www.devryinc.com.
Summer 2005 Enrollment Results
- -------------------------------
DeVry University Summer 2005 Summer 2004 Increase/
(Decrease)
New undergraduate students
(onsite/online) 11,293 10,522 7.3%
Total undergraduate students
(onsite/online) 36,220 38,036 (4.8%)
July 2005 July 2004 Increase/
(Decrease)
Graduate coursetakers
(onsite/online) 11,434 10,276 11.3%
Online coursetakers(a) 21,068 12,590 67.3%
May 2005 May 2004 Increase/
(Decrease)
Graduate coursetakers
(onsite/online) 12,113 11,140 8.7%
Ross University 3,029 3,310 (8.5%)
(a)Online coursetakers are included in the new and total undergraduate
student and graduate coursetaker counts.
Certain statements contained in this release, including those that
affect DeVry's expectations or plans, may constitute forward-looking
statements pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Such statements are subject
to 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.
DeVry Inc.
Fourth Quarter Ended June 30:
- --------------------------------
Fiscal Year Fiscal Year
2005 2004
--------------------------------------
Revenues $196,456,000 $200,043,000
Net Income 6,441,000 15,696,000
Earnings Per Common Share
Basic $0.09 $0.22
Diluted $0.09 $0.22
Number of Common Shares
Basic 70,442,000 70,306,000
Diluted 70,660,000 70,926,000
Fiscal Year Ended June 30:
- ----------------------------
Fiscal Year Fiscal Year
2005 2004
-------------------------------------
Revenues $781,304,000 $784,885,000
Income Before Cumulative Effect
of Change in Accounting 26,734,000 58,061,000
Net Income 28,544,000 58,061,000
Earnings Per Common Share
Basic:
Income Before Cumulative Effect of
Change in Accounting $0.38 $0.83
Net Income $0.41 $0.83
Diluted:
Income Before Cumulative Effect of
Change in Accounting $0.38 $0.82
Net Income $0.40 $0.82
Number of Common Shares
Basic 70,383,000 70,142,000
Diluted 70,591,000 70,757,000
June 30:
- ----------
Actual Shares Outstanding 70,475,000 70,331,000
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
-----------
PRELIMINARY
June 30,
--------------------
2005 2004
--------- ---------
ASSETS:
Current Assets:
---------------
Cash and Cash Equivalents $161,823 $146,227
Restricted Cash 13,935 13,457
Accounts Receivable, Net 39,226 28,150
Inventories 164 3,281
Deferred Income Taxes 17,142 7,619
Prepaid Expenses and Other 10,048 10,141
--------- ---------
Total Current Assets 242,338 208,875
--------- ---------
Land, Buildings and Equipment:
------------------------------
Land 68,013 64,256
Buildings 212,428 203,651
Equipment 234,201 222,898
Construction In Progress 15,813 6,214
--------- ---------
530,455 497,019
Accumulated Depreciation and
Amortization (243,688) (210,132)
--------- ---------
Land, Buildings and Equipment, Net 286,767 286,887
--------- ---------
Other Assets:
-------------
Intangible Assets, Net 73,699 86,346
Goodwill 289,308 284,397
Perkins Program Fund, Net 13,290 12,247
Other Assets 4,633 5,380
--------- ---------
Total Other Assets 380,930 388,370
--------- ---------
TOTAL ASSETS $910,035 $884,132
========= =========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
-----------
PRELIMINARY
June 30,
--------------------
2005 2004
--------- ---------
LIABILITIES:
Current Liabilities:
--------------------
Current Portion of Revolving Loan $50,000 $35,000
Accounts Payable 30,681 27,349
Accrued Salaries, Wages and Benefits 34,071 31,041
Accrued Expenses 34,527 24,610
Advance Tuition Payments 14,685 16,819
Deferred Tuition Revenue 22,823 21,830
--------- ---------
Total Current Liabilities 186,787 156,649
--------- ---------
Other Liabilities
-----------------
Revolving Loan 50,000 90,000
Senior Debt 125,000 125,000
Deferred Income Taxes 21,343 17,660
Accrued Employment Agreements 6,352 3,679
Deferred Rent and Other 12,629 12,887
--------- ---------
Total Other Liabilities 215,324 249,226
--------- ---------
TOTAL LIABILITIES 402,111 405,875
--------- ---------
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 Par Value, 200,000,000
Shares Authorized; 70,475,000 and 70,331,000
Shares Outstanding at June 30, 2005 and
2004, Respectively 706 704
Additional Paid-in Capital 73,372 71,797
Retained Earnings 433,580 405,036
Accumulated Other Comprehensive Income 266 720
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 507,924 478,257
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $910,035 $884,132
========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(Dollars in Thousands Except for Per Share Amounts)
PRELIMINARY
For The Quarter For The Year
Ended June 30, Ended June 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
REVENUES:
Tuition $184,308 $186,993 $737,132 $737,546
Other Educational 11,799 13,032 43,530 47,173
Interest 349 18 642 166
--------- --------- --------- ---------
Total Revenues 196,456 200,043 781,304 784,885
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational
Services 109,019 105,909 437,345 420,108
Student Services and
Administrative Expense 76,422 70,437 300,165 275,587
Interest Expense 2,656 1,821 9,047 7,834
--------- --------- --------- ---------
Total Costs and
Expenses 188,097 178,167 746,557 703,529
--------- --------- --------- ---------
Income Before Income Taxes and
Cumulative Effect of
Change in Accounting 8,359 21,876 34,747 81,356
Income Tax Provision 1,918 6,180 8,013 23,295
--------- --------- --------- ---------
Income Before Cumulative
Effect of Change
in Accounting 6,441 15,696 26,734 58,061
Cumulative Effect of Change in
Accounting, Net of Tax - - 1,810 -
--------- --------- --------- ---------
NET INCOME $6,441 $15,696 $28,544 $58,061
========= ========= ========= =========
EARNINGS PER COMMON SHARE
Basic
Income Before Cumulative
Effect of Change in
Accounting $0.09 $0.22 $0.38 $0.83
Cumulative Effect of Change
in Accounting - - 0.03 -
--------- --------- --------- ---------
Net Income $0.09 $0.22 $0.41 $0.83
========= ========= ========= =========
Diluted
Income Before Cumulative
Effect of Change in
Accounting $0.09 $0.22 $0.38 $0.82
Cumulative Effect of Change
in Accounting - - 0.02 -
--------- --------- --------- ---------
Net Income $0.09 $0.22 $0.40 $0.82
========= ========= ========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
-----------
PRELIMINARY
For The Year Ended June 30,
-----------------------------
2005 2004 2003
--------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $28,544 $58,061 $61,148
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 42,353 40,836 37,758
Amortization 15,213 14,748 2,574
Provision for Refunds and
Uncollectible Accounts 43,521 35,495 34,501
Deferred Income Taxes (5,840) 5,470 8,940
Loss on Disposals of Land, Buildings
and Equipment 803 439 263
Changes in Assets and Liabilities,
Net of Effects from
Acquisitions of Businesses:
Restricted Cash (412) 595 6,206
Accounts Receivable (54,267) (39,340) (23,633)
Inventories 3,131 1,034 592
Prepaid Expenses And Other 2,153 (3,153) (3,070)
Perkins Program Fund
Contribution and Other (764) 654 (1,114)
Accounts Payable 2,852 8,483 (2,132)
Accrued Salaries, Wages,
Expenses and Benefits 12,530 (685) 2,061
Advance Tuition Payments (2,299) 6,251 (6,997)
Deferred Tuition Revenue 40 5,539 (16,904)
--------- --------- ---------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 87,558 134,427 100,193
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (42,909) (42,808) (43,762)
Payments for Purchases of Businesses,
Net of Cash Acquired (4,861) (1,493) (295,908)
--------- --------- ---------
NET CASH USED IN INVESTING ACTIVITIES (47,770) (44,301) (339,670)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock
Options 1,091 2,631 404
Proceeds from Revolving Credit
Facility 45,000 25,000 165,000
Repayments Under Revolving Credit
Facility (70,000) (65,000) -
Proceeds from Senior Note Issuance - - 125,000
--------- --------- ---------
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES (23,909) (37,369) 290,404
--------- --------- ---------
Effects of Exchange Rate Differences (283) (1) 29
--------- --------- ---------
NET INCREASE IN CASH AND CASH
EQUIVALENTS 15,596 52,756 50,956
Cash and Cash Equivalents at Beginning
of Year 146,227 93,471 42,515
--------- --------- ---------
Cash and Cash Equivalents at End of
Year $161,823 $146,227 $93,471
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Interest Paid During the Year $7,063 $7,091 $662
Income Taxes Paid During the Year, Net 7,450 22,471 17,373
CONTACT: DeVry Inc.
Joan Bates (Investor), 630-574-1949
or
Dresner Corporate Services
Sarah Komuniecki (Media), 312-780-7208