Exhibit 99.1
DeVry Inc. Reports Fiscal 2006 Third-Quarter
Results, Enrollment at DeVry University, Keller Graduate School of
Management and Ross University; New Undergraduate Students Increased
16.4 Percent
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 25, 2006--DeVry
Inc. (NYSE:DV), an international higher education company, today
reported financial results for the fiscal 2006 third quarter and the
nine-month period ended March 31, 2006. DeVry Inc. also announced
enrollments at DeVry University, Keller Graduate School of Management
and Ross University.
Revenues for the third quarter of fiscal 2006 were $220.2 million,
compared to $201.9 million for the same quarter one year ago. For the
nine-month period of fiscal 2006, revenues were $626.9 million
compared to $584.8 million last year.
Net income for the quarter totaled $15.7 million, or $0.22 per
fully diluted share, compared to $10.9 million, or $0.15 per fully
diluted share, on a restated basis, for the same period last year. For
the nine months of fiscal 2006, net income was $31.2 million, or $0.44
per share, compared to $17.7 million, or $0.25 per share, on a
restated basis, for the first nine months of fiscal 2005. Net income
for 2005 has been restated to include the expense of share-based
payments in accordance with new accounting requirements (FAS123R). The
after-tax effect of stock option expense for the fiscal 2006 third
quarter was approximately $0.8 million and $1.1 million for the fiscal
2005 third quarter.
"Our financial and enrollment results in the third quarter are
positive signs that the company is effectively executing its strategic
plan," said Ronald L. Taylor, DeVry's chief executive officer. "The
technology sector is continuing to recover, and we are encouraged by
the growth experienced across all of our operations. Although future
enrollment periods at DeVry University may not experience the same
high levels of growth in new students, we are working to continue the
upward momentum we've created during the last several class starts."
At DeVry University, new undergraduate student enrollment in
spring 2006 increased 16.4 percent to 10,359 students, compared to
8,902 in spring 2005. Total undergraduate student enrollment in spring
2006 increased 1.2 percent to 38,523 students, compared to 38,083
students in the previous year.
For the January 2006 session, the number of graduate coursetakers
at Keller Graduate School of Management increased 9.4 percent to
13,776, compared to 12,597 coursetakers in January 2005. In the March
2006 session, graduate coursetakers increased 12.3 percent to 14,029
from 12,496 in the prior year.
The total number of online undergraduate and graduate coursetakers
in spring 2006 increased 46.3 percent to 28,912, compared to 19,759
last year.
At Ross University, new students increased 67.5 percent to 387 in
the January term, compared to 231 in the same term last year. Total
students increased 4.5 percent to 3,264, compared to 3,122 last year.
"In spring 2006, DeVry University experienced a year-over-year
increase in total undergraduate students for the first time since
spring 2002," said Daniel Hamburger, DeVry's president and chief
operating officer. "Additionally, new students in technology programs
increased 37.7 percent over the prior year, and new student campus
enrollment increased approximately 11 percent. While we are rebuilding
from a smaller enrollment base than in prior years, these results are
indicative of better integration of marketing and recruiting and the
introduction of new degree programs at both the associate and
baccalaureate levels."
DeVry Inc. will hold a conference call to discuss its fiscal 2006
third-quarter results on April 25, 2006, 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 866-510-0704
(domestic) or 617-597-5362 (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://phx.corporate-ir.net/phoenix.zhtml
?p=irol-eventDetails&c=93880&eventID=1211807. (Due to its length, this
URL may need to be copied/pasted into your Internet browser's address
field. Remove the extra space if one exists.) 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
2, 2006. To access the replay, dial 888-286-8010 (domestic) or
617-801-6888 (international), passcode 37257149. To access the Webcast
replay, please visit the company's Web site, or
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&
eventID=1211807. (Due to its length, this URL may need to be
copied/pasted into your Internet browser's address field. Remove the
extra space if one exists.)
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 and healthcare. 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.
Selected Operating Data (in thousands, except per share data)
- -----------------------
Third Quarter Nine Months
Ended March 31: Ended March 31:
FY2006 FY2005 FY2006 FY2005
Revenues $220,206 $201,930 $626,855 $584,848
Net Income 15,682 10,881 31,242 17,683
Earnings per share (diluted) $0.22 $0.15 $0.44 $0.25
Number of common shares
(diluted) 70,913 70,547 70,739 70,567
Spring 2006 Enrollment Results
- ------------------------------
DeVry University Spring 2006 Spring 2005 % Increase
New undergraduate students
(onsite/online) 10,359 8,902 16.4%
Total undergraduate students
(onsite/online) 38,523 38,083 1.2%
March 2006 March 2005 % Increase
Graduate coursetakers
(onsite/online) 14,029 12,496 12.3%
Online coursetakers(a) 28,912 19,759 46.3%
January 2006 January 2005 % Increase
Graduate coursetakers
(onsite/online) 13,776 12,597 9.4%
Ross University
New students 387 231 67.5%
Total students 3,264 3,122 4.5%
(a) Online coursetakers are included in the new and total
undergraduate and graduate coursetaker counts.
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."
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31, June 30, March 31,
2006 2005 2005
----------- ----------- -----------
Restated Restated
ASSETS
- -------
Current Assets
--------------
Cash and Cash Equivalents $162,355 $161,823 $138,187
Restricted Cash 52,523 13,935 33,175
Accounts Receivable, Net 90,089 39,226 119,012
Inventories 104 164 160
Deferred Income Taxes 18,195 17,142 9,395
Prepaid Expenses and Other 13,154 10,048 9,974
----------- ----------- -----------
Total Current Assets 336,420 242,338 309,903
----------- ----------- -----------
Land, Buildings and Equipment, net
----------------------------------
Land 67,653 68,013 64,583
Buildings 219,899 212,428 205,042
Equipment 241,736 234,201 233,133
Construction In Progress 7,207 15,813 21,475
----------- ----------- -----------
536,495 530,455 524,233
Accumulated Depreciation (262,871) (243,688) (237,651)
----------- ----------- -----------
Land, Buildings and
Equipment, Net 273,624 286,767 286,582
----------- ----------- -----------
Other Assets
------------
Intangible Assets, Net 65,956 73,699 76,350
Goodwill 291,113 289,308 289,863
Perkins Program Fund, Net 13,290 13,290 12,847
Other Assets 4,180 4,633 4,871
----------- ----------- -----------
Total Other Assets 374,539 380,930 383,931
----------- ----------- -----------
TOTAL ASSETS $984,583 $910,035 $980,416
=========== =========== ===========
LIABILITIES
- -----------
Current Liabilities
-------------------
Current Maturities of Debt $50,000 $50,000 $-
Accounts Payable 30,016 30,681 22,433
Accrued Salaries, Wages &
Benefits 31,679 34,071 32,551
Accrued Expenses 34,118 34,462 30,002
Advance Tuition Payments 8,533 14,685 10,238
Deferred Tuition Revenue 151,413 22,823 149,729
----------- ----------- -----------
Total Current
Liabilities 305,759 186,722 244,953
----------- ----------- -----------
Non-Current Liabilities
-----------------------
Revolving Loan - 50,000 70,000
Senior Notes 95,000 125,000 125,000
Deferred Income Taxes 14,415 15,949 18,384
Accrued Post-employment
Agreements 6,382 6,352 5,618
Deferred Rent and Other 12,742 12,629 12,614
----------- ----------- -----------
Total Non-Current
Liabilities 128,539 209,930 231,616
----------- ----------- -----------
TOTAL LIABILITIES 434,298 396,652 476,569
----------- ----------- -----------
SHAREHOLDERS' EQUITY
- --------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,656,000, 70,475,000 and
70,379,000, Shares Issued
and Outstanding at March 31,
2006, June 30, 2005 and March
31, 2005, Respectively. 708 706 705
Additional Paid-in Capital 119,566 113,571 104,318
Retained Earnings 430,082 398,840 398,614
Accumulated Other Comprehensive
Income (71) 266 210
----------- ----------- -----------
TOTAL SHAREHOLDERS' EQUITY 550,285 513,383 503,847
----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $984,583 $910,035 $980,416
=========== =========== ===========
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,
---------------------- ----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Restated Restated
REVENUES:
Tuition $203,299 $190,713 $582,384 $552,824
Other Educational 15,771 11,068 42,477 31,731
Interest 1,136 149 1,994 293
---------- ---------- ---------- ----------
Total Revenues 220,206 201,930 626,855 584,848
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Cost of Educational
Services 115,483 111,014 338,209 329,968
Student Services and
Administrative
Expense 80,999 74,341 238,776 227,235
Interest Expense 2,490 2,309 7,751 6,391
---------- ---------- ---------- ----------
Total Costs
and Expenses 198,972 187,664 584,736 563,594
---------- ---------- ---------- ----------
Income Before Income
Taxes and Cumulative
Effect of Change in
Accounting 21,234 14,266 42,119 21,254
Income Tax Provision 5,552 3,385 10,877 5,381
---------- ---------- ---------- ----------
Income Before Cumulative
Effect of Change in
Accounting 15,682 10,881 31,242 15,873
Cumulative Effect of
Change in Accounting,
Net of Tax - - - 1,810
---------- ---------- ---------- ----------
NET INCOME $15,682 $10,881 $31,242 $17,683
========== ========== ========== ==========
EARNINGS PER COMMON SHARE
Basic
Income Before
Cumulative Effect
of Change in
Accounting $0.22 $0.15 $0.44 $0.23
Cumulative Effect of
Change in
Accounting - - - 0.02
---------- ---------- ---------- ----------
Net Income $0.22 $0.15 $0.44 $0.25
========== ========== ========== ==========
Diluted
Income Before
Cumulative Effect
of Change in
Accounting $0.22 $0.15 $0.44 $0.23
Cumulative Effect of
Change in
Accounting - - - 0.02
---------- ---------- ---------- ----------
Net Income $0.22 $0.15 $0.44 $0.25
========== ========== ========== ==========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Nine Months
Ended March 31,
---------------------
2006 2005
---------- ----------
Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $31,242 $17,683
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Share-Based Compensation Charge 3,286 5,134
Depreciation 28,043 30,369
Amortization 8,104 11,735
Provision for Refunds and Uncollectible
Accounts 39,570 31,538
Deferred Income Taxes (2,587) 1,108
(Gain) Loss on Disposals of Land,
Buildings and Equipment (390) 638
Changes in Assets and Liabilities, Net of
Effects from Acquisition of Business:
Restricted Cash (38,649) (19,652)
Accounts Receivable (90,802) (121,618)
Inventories 66 3,137
Prepaid Expenses And Other (2,881) 765
Accounts Payable (460) (5,403)
Accrued Salaries, Wages, Expenses
and Benefits (1,716) 6,651
Advance Tuition Payments (6,126) (6,761)
Deferred Tuition Revenue 128,713 126,946
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 95,413 82,270
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (16,283) (30,561)
Net Proceeds from Sale of Land and Building 1,798
Payments for Purchases of Businesses, net of
Cash Acquired (2,530) (4,861)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (17,015) (35,422)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 2,433 261
Excess Tax Benefit from Share-Based Payments (35) 190
Proceeds From Revolving Credit Facility 0 10,000
Repayments Under Revolving Credit Facility (80,000) (65,000)
---------- ----------
NET CASH USED IN FINANCING ACTIVITIES (77,602) (54,549)
---------- ----------
Effects of Exchange Rate Differences (264) (339)
---------- ----------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS 532 (8,040)
Cash and Cash Equivalents at Beginning of Period 161,823 146,227
---------- ----------
Cash and Cash Equivalents at End of Period $162,355 $138,187
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid During the Period $6,951 $4,920
Income Tax Payments During the Period, Net 14,861 4,760
CONTACT: DeVry Inc.
Joan Bates (Investors), 630-574-1949
or
Dresner Corporate Services
Sarah Komuniecki (Media), 312-780-7208