Exhibit 99.1
DeVry Inc. Reports Fiscal 2006 Fourth-Quarter and
Year-End Results, Summer Enrollment
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Aug. 17, 2006--
DeVry University New Undergraduate Students Increased 12.2 Percent;
Ross University New Students Increased 63.8 Percent
DeVry Inc. (NYSE:DV), an international higher education company,
reported financial results for the fiscal 2006 fourth quarter and year
end. DeVry Inc. also announced enrollments at DeVry University, Keller
Graduate School of Management and Ross University.
Revenues in the fourth quarter increased by more than 10 percent
to $216.4 million, compared with $196.5 million for the same quarter
one year ago. For the full year ended June 30, 2006, revenues were
$843.3 million, an increase of 7.9 percent, compared to $781.3 million
last year.
Net income for the quarter totaled $11.8 million, or $0.17 per
fully diluted share, compared with $0.1 million, or $0.00 per fully
diluted share, on a restated basis for the same period last year. For
the twelve months of fiscal 2006, net income was $43.1 million, or
$0.61 per share, compared to $17.8 million, or $0.25 per share, on a
restated basis, for the twelve 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 (SFAS123R). Full-year
share-based payment expense, net of tax, was approximately $3.6
million in 2006 and $10.8 million in 2005.
"The fourth quarter was strong and a good finish to the year for
our company," said Ronald L. Taylor, DeVry's chief executive officer.
"We posted strong new student growth and revenue gains within each of
our business segments, reflecting solid execution of our growth plan.
We are focused on achieving long-term enrollment growth and realizing
our financial performance objectives."
At DeVry University, new undergraduate student enrollment in
summer 2006 increased 12.2 percent to 12,671 students, compared to
11,293 in summer 2005. Total undergraduate student enrollment in
summer 2006 was 37,132 students, or 2.5 percent higher, compared to
36,220 students in the prior year.
For the May 2006 session, the total number of coursetakers at
Keller Graduate School of Management increased 8.5 percent to 13,148
coursetakers compared to 12,113 in the prior year. In the July 2006
session, coursetakers increased 10.3 percent to 12,617 from 11,434
coursetakers in July 2005.
The total number of online coursetakers at DeVry University in
summer 2006, which is included in the enrollment figures above,
increased 35.7 percent to 28,580, compared to 21,068 last year.
New students in the May 2006 term at Ross University increased
63.8 percent to 439, compared to 268 in May 2005. The total number of
students enrolled at Ross during the same period increased 13.2
percent to 3,428, compared to 3,029 last year. In the July 2006 term,
Chamberlain College of Nursing enrolled approximately 600 students.
During fiscal 2006, more than 43,000 students enrolled in Becker
Professional Review exam preparation courses. Becker posted record
revenue of more than $53 million for the 2006 fiscal year.
"Throughout 2006, DeVry demonstrated steady progress as we
responded to an evolving and more competitive environment in
education," said Daniel Hamburger, DeVry's president and chief
operating officer. "As a result of our efforts, new student enrollment
at DeVry University increased for the fifth consecutive time, and
total student enrollment continued to grow as well."
DeVry Inc. will hold a conference call to discuss its fiscal 2006
fourth-quarter and year-end results on August 17, 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 Richard Gunst, chief financial
officer.
For those wishing to participate by telephone, dial 866-314-4865
(domestic) or 617-213-8050 (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, or http://phx.corporate-ir.net/phoenix.zhtm
l?p=irol-eventDetails&c=93880&eventID=1211810. (Due to the length of
this URL, it may be necessary to copy and paste this hyperlink into
your Internet browser's URL address field. You may also need to remove
an extra space in the URL 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
August 24, 2006. To access the replay, dial 888-286-8010 (domestic) or
617-801-6888 (international), passcode 35421825. To access the webcast
replay, please visit the company's Web site, or http://phx.corporate-i
r.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=1211810. (Due
to the length of this URL, it may be necessary to copy and paste this
hyperlink into your Internet browser's URL address field. You may also
need to remove an extra space in the URL if one exists.)
About DeVry Inc.
DeVry Inc. (NYSE: DV) is the holding company for DeVry University,
Ross University, Chamberlain 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, healthcare 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. Chamberlain 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)
- -----------------------
Fourth Quarter Full Year
Ended June 30: Ended June 30:
FY2006 FY2005 FY2006 FY2005
Revenues $216,443 $196,456 $843,298 $781,304
Net Income 11,811 69 43,053 17,752
Earnings per share (diluted) $0.17 $0.00 $0.61 $0.25
Number of common shares
(diluted) 71,099 70,660 70,880 70,591
Summer 2006 Enrollment Results
- ------------------------------
DeVry University Summer 2006 Summer 2005 % Increase
New undergraduate students
(onsite/online) 12,671 11,293 12.2%
Total undergraduate students
(onsite/online) 37,132 36,220 2.5%
July 2006 July 2005 % Increase
Graduate coursetakers(a)
(onsite/online) 12,617 11,434 10.3%
Online coursetakers(a) 28,580 21,068 35.7%
May 2006 May 2005 % Increase
Graduate coursetakers(a)
(onsite/online) 13,148 12,113 8.5%
Ross University
New students 439 268 63.8%
Total students 3,428 3,029 13.2%
(a) The term "coursetaker" refers to the number of courses taken
by a student, i.e., one student taking two courses equals two
coursetakers. 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 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)
----------------------
PRELIMINARY
June 30,
-------------------
2006 2005
--------- ---------
ASSETS: Restated
Current Assets:
---------------
Cash and Cash Equivalents $130,583 $161,823
Restricted Cash 20,632 13,935
Accounts Receivable, Net 46,567 39,226
Inventories 133 164
Deferred Income Taxes, Net 16,166 17,142
Prepaid Expenses and Other 14,132 10,048
--------- ---------
Total Current Assets 228,213 242,338
--------- ---------
Land, Buildings and Equipment:
------------------------------
Land 67,756 68,013
Buildings 222,059 212,428
Equipment 245,360 234,201
Construction In Progress 9,057 15,813
--------- ---------
544,232 530,455
Accumulated Depreciation and Amortization (271,306) (243,688)
--------- ---------
Land, Buildings and Equipment, Net 272,926 286,767
--------- ---------
Other Assets:
-------------
Intangible Assets, Net 63,762 73,699
Goodwill 291,113 289,308
Perkins Program Fund, Net 13,450 13,290
Other Assets 3,158 4,633
--------- ---------
Total Other Assets 371,483 380,930
--------- ---------
TOTAL ASSETS $872,622 $910,035
========= =========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
----------------------
PRELIMINARY
June 30,
-------------------
2006 2005
--------- ---------
LIABILITIES: Restated
Current Liabilities:
--------------------
Current Maturities of Debt $60,000 $50,000
Accounts Payable 39,677 30,681
Accrued Salaries, Wages and Benefits 35,600 34,071
Accrued Expenses 27,779 34,462
Advance Tuition Payments 16,584 14,685
Deferred Tuition Revenue 31,769 22,823
--------- ---------
Total Current Liabilities 211,409 186,722
--------- ---------
Non-Current Liabilities
-----------------------
Revolving Loan - 50,000
Senior Notes 65,000 125,000
Deferred Income Taxes, Net 12,564 15,949
Accrued Post-employment Agreements 5,594 6,352
Deferred Rent and Other 13,448 12,629
--------- ---------
Total Non-Current Liabilities 96,606 209,930
--------- ---------
TOTAL LIABILITIES 308,015 396,652
--------- ---------
COMMITMENTS AND CONTINGENCIES (Note 13)
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 Par Value, 200,000,000
Shares Authorized; 70,757,000 and 70,475,000
Shares Outstanding at June 30, 2006 and
2005, Respectively 708 706
Additional Paid-in Capital 122,430 113,571
Retained Earnings 441,893 398,840
Accumulated Other Comprehensive (Loss) Income (424) 266
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 564,607 513,383
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $872,622 $910,035
========= =========
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,
------------------- -------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Restated Restated
REVENUES:
Tuition $199,429 $184,308 $781,813 $737,132
Other Educational 15,223 11,799 57,700 43,530
Interest 1,791 349 3,785 642
--------- --------- --------- ---------
Total Revenues 216,443 196,456 843,298 781,304
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational
Services 114,406 111,540 452,615 441,508
Student Services and
Administrative Expense 84,234 81,778 323,010 309,013
Interest Expense 2,439 2,656 10,190 9,047
--------- --------- --------- ---------
Total Costs and
Expenses 201,079 195,974 785,815 759,568
--------- --------- --------- ---------
Income Before Income Taxes and
Cumulative Effect of
Change in Accounting 15,364 482 57,483 21,736
Income Tax Provision 3,553 413 14,430 5,794
--------- --------- --------- ---------
Income Before Cumulative
Effect of Change
in Accounting 11,811 69 43,053 15,942
Cumulative Effect of Change
in Accounting, Net of Tax - - - 1,810
--------- --------- --------- ---------
NET INCOME $11,811 $69 $43,053 $17,752
========= ========= ========= =========
EARNINGS PER COMMON SHARE
Basic
Income Before Cumulative
Effect of Change in
Accounting $0.17 $- $0.61 $0.23
Cumulative Effect of Change
in Accounting - - - 0.02
--------- --------- --------- ---------
Net Income $0.17 $- $0.61 $0.25
========= ========= ========= =========
Diluted
Income Before Cumulative
Effect of Change in
Accounting $0.17 $- $0.61 $0.23
Cumulative Effect of Change
in Accounting - - - 0.02
--------- --------- --------- ---------
Net Income $0.17 $- $0.61 $0.25
========= ========= ========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
-----------
PRELIMINARY
For The Year Ended June 30,
-----------------------------
2006 2005 2004
--------- --------- ---------
Restated Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $43,053 $17,752 $52,201
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating
Activities:
Share-Based Compensation Charge 4,339 13,011 6,789
Depreciation 37,616 42,353 40,836
Amortization 10,492 15,213 14,748
Provision for Refunds and Uncollectible
Accounts 47,271 43,521 35,495
Deferred Income Taxes (2,941) (7,994) 4,070
(Gain) Loss on Disposals of Land,
Buildings and Equipment (260) 803 439
Changes in Assets and Liabilities, Net
of Effects from Acquisitions of Businesses:
Restricted Cash (6,755) (412) 595
Accounts Receivable (55,123) (54,267) (39,340)
Inventories 45 3,131 1,034
Prepaid Expenses And Other (3,141) 2,153 (3,153)
Perkins Program Fund Contribution and
Other 12 (764) 654
Accounts Payable 9,172 2,852 8,483
Accrued Salaries, Wages, Expenses and
Benefits (3,915) 12,465 (685)
Advance Tuition Payments 1,888 (2,299) 6,251
Deferred Tuition Revenue 9,069 40 5,539
--------- --------- ---------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 90,822 87,558 133,956
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (25,265) (42,909) (42,808)
Net Proceeds from Sale of Land and
Building 1,798 - -
Payments for Purchases of Businesses,
Net of Cash Acquired (2,530) (4,861) (1,493)
--------- --------- ---------
NET CASH USED IN INVESTING ACTIVITIES (25,997) (47,770) (44,301)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 3,598 1,091 2,631
Reissuance of Treasury Shares to
Employee Stock Purchase Plan 336 - -
Excess Tax Benefit from Share-Based
Payments 532 - 471
Proceeds from Revolving Credit Facility - 45,000 25,000
Repayments Under Revolving Credit
Facility (90,000) (70,000) (65,000)
Repayments Under Senior Notes (10,000) - -
--------- --------- ---------
NET CASH USED IN FINANCING ACTIVITIES (95,534) (23,909) (36,898)
--------- --------- ---------
Effects of Exchange Rate
Differences (531) (283) (1)
--------- --------- ---------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (31,240) 15,596 52,756
Cash and Cash Equivalents at Beginning
of Year 161,823 146,227 93,471
--------- --------- ---------
Cash and Cash Equivalents at
End of Year $130,583 $161,823 $146,227
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Interest Paid During the Year $9,214 $7,063 $7,091
Income Taxes Paid During the Year, Net 24,103 7,450 22,471
CONTACT: DeVry Inc.
Investor Contact:
Joan Bates, 630-574-1949
jbates@devry.com
or
Dresner Corporate Services
Media Contact:
David Gutierrez, 312-780-7204
dgutierrez@dresnerco.com