Exhibit 99.1
DeVry Inc. Reports Fiscal 2006 First-Quarter
Results, September Enrollment at Ross University and Keller Graduate
School of Management; First Quarter Results Include Stock Option
Expense
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Oct. 20, 2005--DeVry Inc.
(NYSE:DV), an international higher education company, today reported
financial results for the fiscal 2006 first quarter and September 2005
enrollment at Ross University and Keller Graduate School of Management
(KGSM).
Revenues for the first quarter were $196.8 million, compared with
$188.4 million for the same quarter one year ago. Net income for the
quarter totaled $4.7 million, or $0.07 per fully diluted share, which
includes the expense of share-based payments, compared with $2.1
million, or $0.03 per fully diluted share on a restated basis, for the
same period last year.
Effective with the first quarter of fiscal 2006, the company
adopted Statement of Financial Accounting Standards No. 123R,
"Share-Based Payment," using the modified retrospective approach.
Accordingly, the fiscal 2006 and restated 2005 first quarters include
recognition of stock option expense. The fiscal 2006 first quarter
after-tax effect of stock option expense is approximately $1.0
million. For the restated fiscal 2005 first quarter, the effect is
approximately $2.2 million after-tax.
"We are pleased to report an increase in both revenue and earnings
over the prior year, and we expect improvement throughout fiscal
2006," said Ronald L. Taylor, DeVry's chief executive officer. "We are
focused on solid execution of our growth plan."
The number of new students enrolled at Ross University for the
September 2005 term increased 40.6 percent to 575, compared to 409 in
the 2004 September term. Total Ross students in the September term
were 3,227, or 3.8 percent lower than the prior year. Last year, Ross
University raised its admission criteria and increased its academic
progress requirements, which negatively affected new student
recruiting, student retention and total enrollments during fiscal
2005.
For the September 2005 session, the total number of coursetakers
at KGSM increased 5 percent to 12,732 compared to 12,129 in the prior
year's session. Fall 2005 enrollment results for DeVry University and
the November session at KGSM will be reported December 5.
During the first quarter of fiscal 2006, enrollments at Becker
Professional Review, which includes Becker CPA Review and Stalla
Review for the CFA, increased over the prior year. The professional
and training segment posted record revenue of approximately $12.3
million for the 2006 fiscal first quarter, compared to $10.7 million
last year.
"We are pleased with the progress we are making at Ross University
and in each of our other operations," said Daniel Hamburger, DeVry's
president and chief operating officer. "Actions taken in fiscal 2005
to improve marketing and recruiting processes and to reduce expenses
appear to be having a favorable impact on fiscal 2006 results."
DeVry Inc. will hold a conference call to discuss its fiscal 2006
first-quarter results on October 20, 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 800-218-4007
(domestic) or 303-262-2139 (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
November 2, 2005. To access the replay, dial 800-405-2236 (domestic)
or 303-590-3000 (international), passcode 11040072. 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.
Certain statements contained in this release, including those that
affect DeVry's expectations or plans, may constitute forward-looking
statements subject to the Safe Harbor Provision of the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected or implied by these forward-looking
statements. Potential risks, uncertainties and other factors that
could cause results to differ are described in the Company's most
recent Annual Report on Form 10-K for the year ending June 30, 2005
filed with the SEC September 13, 2005, especially in the section
entitled "Forward Looking Statements" at the beginning of Part I and
in the subsections of "Item 1 - Business" entitled "Competition,"
"Student Recruiting," "Accreditation and Approvals," "Tuition and
Fees," "Financial Aid and Financing Student Education," and "Career
Services and Faculty."
First Quarter Ended September 30:
- ---------------------------------
Fiscal Year Fiscal Year
2006 2005
Restated (1)
--------------------------------
Revenues $196,780,000 $188,396,000
Income Before Cumulative Effect
of Change in Accounting 4,732,000 330,000
Net Income 4,732,000 2,140,000
Earnings Per Common Share Basic:
Income Before Cumulative
Effect of Change in
Accounting $0.07 $0.01
Net Income $0.07 $0.03
Diluted:
Income Before Cumulative
Effect of Change in
Accounting $0.07 $0.01
Net Income $0.07 $0.03
Number of Common Shares
Basic 70,506,000 70,349,000
Diluted 70,664,000 70,677,000
September 30:
Actual Shares Outstanding 70,527,000 70,365,000
(1) Restated for the adoption of SFAS #123R using the modified
retrospective approach.
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
September 30, June 30, September 30,
2005 2005 2004
------------- --------- -------------
Restated Restated
ASSETS
- ------
Current Assets
--------------
Cash and Cash Equivalents $119,829 $161,823 $115,071
Restricted Cash 26,217 13,935 27,702
Accounts Receivable, Net 83,585 39,226 64,298
Inventories 95 164 1,376
Deferred Income Taxes 17,142 17,142 6,454
Prepaid Expenses and
Other 16,478 10,048 12,831
------------- --------- -------------
Total Current Assets 263,346 242,338 227,732
------------- --------- -------------
Land, Buildings and Equipment
-----------------------------
Land 68,015 68,013 64,256
Buildings 222,479 212,428 204,378
Equipment 237,620 234,201 227,110
Construction In Progress 4,105 15,813 7,513
------------- --------- -------------
532,219 530,455 503,257
Accumulated Depreciation (249,966) (243,688) (220,343)
------------- --------- -------------
Land, Buildings and
Equipment, Net 282,253 286,767 282,914
------------- --------- -------------
Other Assets
------------
Intangible Assets, Net 71,118 73,699 82,709
Goodwill 291,308 289,308 284,397
Perkins Program Fund, Net 13,290 13,290 12,472
Other Assets 4,481 4,633 5,457
------------- --------- -------------
Total Other Assets 380,197 380,930 385,035
------------- --------- -------------
TOTAL ASSETS $925,796 $910,035 $895,681
============= ========= =============
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
---------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
September 30, June 30, September 30,
2005 2005 2004
------------- --------- -------------
Restated Restated
LIABILITIES
- -----------
Current Liabilities
-------------------
Current Maturities of
Revolving Loan $50,000 $50,000 $ -
Accounts Payable 24,154 30,681 17,601
Accrued Salaries, Wages
& Benefits 30,784 34,071 33,316
Accrued Expenses 31,738 34,462 28,062
Advance Tuition Payments 15,664 14,685 16,981
Deferred Tuition Revenue 95,446 22,823 82,311
------------- --------- -------------
Total Current
Liabilities 247,786 186,722 178,271
------------- --------- -------------
Other Liabilities
-----------------
Revolving Loan - 50,000 75,000
Senior Debt 125,000 125,000 125,000
Deferred Income Taxes 11,327 12,512 10,096
Accrued Post-employment
Agreements 6,352 6,352 4,267
Deferred Rent and Other 12,613 12,629 13,016
------------- --------- -------------
Total Other
Liabilities 155,292 206,493 227,379
------------- --------- -------------
TOTAL LIABILITIES 403,078 393,215 405,650
------------- --------- -------------
SHAREHOLDERS' EQUITY
- --------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,527,000, 70,475,000 and
70,365,000 Shares issued and
outstanding at September 30,
2005, June 30, 2005 and
September 30, 2004,
respectively. 706 706 704
Additional Paid-in Capital 117,609 116,108 105,756
Retained Earnings 404,472 399,740 383,071
Accumulated Other Comprehensive
Income (Loss) (69) 266 500
------------- --------- -------------
TOTAL SHAREHOLDERS' EQUITY 522,718 516,820 490,031
------------- --------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $925,796 $910,035 $895,681
============= ========= =============
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
For The Quarter
Ended September 30,
-------------------
2005 2004
--------- ---------
Restated
REVENUES:
Tuition $183,053 $177,984
Other Educational 13,308 10,352
Interest 419 60
--------- ---------
Total Revenues 196,780 188,396
--------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 111,709 110,265
Student Services and Administrative Expense 75,890 75,267
Interest Expense 2,655 1,991
--------- ---------
Total Costs and Expenses 190,254 187,523
--------- ---------
Income Before Income Taxes and Cumulative Effect
of Change in Accounting 6,526 873
Income Tax Provision 1,794 543
--------- ---------
Income Before Cumulative Effect of Change
in Accounting 4,732 330
Cumulative Effect of Change in Accounting, Net of
Tax - 1,810
--------- ---------
NET INCOME $4,732 $2,140
========= =========
EARNINGS PER COMMON SHARE
Basic
Income Before Cumulative Effect of Change in
Accounting $0.07 $0.01
Cumulative Effect of Change in Accounting - 0.02
--------- ---------
Net Income $0.07 $0.03
========= =========
Diluted
Income Before Cumulative Effect of Change in
Accounting $0.07 $0.01
Cumulative Effect of Change in Accounting - 0.02
--------- ---------
Net Income $0.07 $0.03
========= =========
CONTACT: Dresner Corporate Services
Sarah Komuniecki (Media), 312-780-7208
or
Joan Bates (Investor), 630-574-1949