Exhibit 99.1
DeVry Inc. Announces Fiscal 2007 First-Quarter Results, September Enrollment at
Ross University and Keller Graduate School of Management
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Oct. 24, 2006--DeVry Inc. (NYSE:
DV), an international higher education company, reported financial results for
the fiscal 2007 first quarter and September 2006 enrollment at Ross University
and Keller Graduate School of Management. Revenues in the first quarter
increased 12.1 percent to $220.7 million, compared with $196.8 million for the
same quarter one year ago. Net income for the first quarter was $20.9 million,
or $0.29 per diluted share, compared to $4.7 million, or $0.07 per diluted share
last year. Net income in the first quarter of fiscal 2007 includes a gain on the
sale of a DeVry University facility located in West Hills, Calif., of $11.8
million, net of tax, or $0.16 per share.
"Effective management of DeVry's diverse portfolio of high-quality program
offerings allowed the company to deliver solid results in the first quarter,
while keeping the focus on long-term growth and profitability," said Ronald L.
Taylor, DeVry's chief executive officer. "We believe we're on track to continue
this progress in fiscal 2007 and beyond."
For the September 2006 session, the total number of coursetakers at Keller
Graduate School of Management (KGSM) increased 10.5 percent to 14,069
coursetakers compared to 12,732 coursetakers in the prior year's session. Fall
2006 enrollment results for DeVry University and the November session at KGSM
will be reported December 7.
The number of new students enrolled at Ross University for the September
2006 term was 576, compared to 575 in the previous year. In the September 2005
term, new students grew 40.6 percent. The total number of students enrolled at
Ross during the same period increased 15.4 percent to 3,724, compared to 3,227
last year. Ross University is adding faculty, classrooms, laboratories and
student housing to satisfy increasing student demand.
During the first quarter of fiscal 2007, Becker Professional Review, which
includes Becker CPA Review and Stalla Review for the CFA, posted a revenue
increase of 32.6 percent over last year's first quarter.
"While overall company performance in the quarter was strong, our results
were affected by marketing and recruiting investments that we believe will yield
better long-term enrollment results at DeVry University," said Daniel Hamburger,
DeVry's president and chief operating officer. "Our priorities remain clear - to
grow our enrollments, improve the utilization of our assets, and continue to
deliver high-quality programs to meet the needs of our students."
DeVry Inc. will hold a conference call to discuss its fiscal 2007
first-quarter results on October 24, 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 Rick
Gunst, chief financial officer.
For those wishing to participate by telephone, dial 866-362-4820 (domestic)
or 617-597-5345 (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.zhtml?p=irol-eventDetails&c=93
880&eventID=1211813. (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 November 7,
2006. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888
(international), passcode 76236652. To access the Webcast replay, please visit
the company's Web site, or
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93
880&eventID=1211813. (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.)
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)
- ----------------------------------------------------------------------
First Quarter
Ended September 30:
FY2007 FY2006
--------------------
Revenues $220,653 $196,780
Net Income $20,920 $4,732
Earnings per Share (diluted) $0.29 $0.07
Number of common shares (diluted) 71,029 70,664
The following table illustrates the effects of the gain on the sale of the
West Hills facility on the company's earnings. The non-GAAP disclosure of
earnings is not preferable to GAAP net income but is shown as a supplement to
such disclosure for comparability to the year-ago quarter's earnings (in
thousands, except per share data):
First Quarter
Ended September 30:
FY2007 FY2006
--------------------
Net Income $20,920 $4,732
Earnings per Share (diluted) $0.29 $0.07
Gain on Facility Sale (net of tax) $11,840 --
Earnings per Share (diluted) $0.16 --
Net Income Excluding the Gain on Facility Sale $9,080 $4,732
Earnings per Share (diluted) $0.13 $0.07
September 2006 Enrollment Results
- ----------------------------------------------------------------------
Keller Graduate School of Management September September % Increase
2006 2005
Total coursetakers(a) (onsite/online) 14,069 12,732 10.5%
Ross University
New students 576 575 0.2%
Total students 3,724 3,227 15.4%
(a) The term "coursetaker" refers to the number of courses taken by a
student. Thus one student taking two courses is counted as two coursetakers.
Certain statements contained in this release concerning DeVry's future
performance, including those statements concerning 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. These
forward-looking statements generally can be identified by phrases such as DeVry
Inc. or its management "believes," "expects," "anticipates," "foresees,"
"forecasts," "estimates" or other words or phrases of similar import. 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 more fully in Item 1A, "Risk
Factors," in the Company's most recent Annual Report on Form 10-K for the year
ending June 30, 2006 and filed with the Securities andExchange Commission on
September 13, 2006.
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ---------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
September 30, June 30, September 30,
2006 2006 2005
ASSETS
- ------
Current Assets
- ----------------------
Cash and Cash
Equivalents $168,646 $130,583 $119,829
Restricted Cash 30,198 20,632 26,217
Accounts Receivable,
Net 76,803 46,567 83,585
Inventories 129 133 95
Deferred Income Taxes,
Net 15,485 13,700 17,142
Prepaid Expenses and
Other 22,463 16,458 16,478
------------- ------------ -------------
Total Current
Assets 313,724 228,073 263,346
------------- ------------ -------------
Land, Buildings and
Equipment, Net 257,241 272,926 282,253
- ---------------------------- ------------- ------------ -------------
Other Assets
- ----------------------
Intangible Assets, Net 61,955 63,762 71,118
Goodwill 291,113 291,113 291,308
Perkins Program Fund,
Net 13,450 13,450 13,290
Other Assets 2,639 3,158 4,481
------------- ------------ -------------
Total Other
Assets 369,157 371,483 380,197
------------- ------------ -------------
TOTAL ASSETS $940,122 $872,482 $925,796
============= ============ =============
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ---------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
September 30, June 30, September 30,
2006 2006 2005
LIABILITIES
- -----------
Current Liabilities
- ----------------------
Current Portion of
Debt $75,000 $60,000 $50,000
Accounts Payable 34,313 39,677 24,154
Accrued Salaries,
Wages and Benefits 34,917 35,600 30,784
Accrued Expenses 45,268 27,639 30,525
Advance Tuition
Payments 18,699 16,584 15,664
Deferred Tuition
Revenue 103,745 31,769 95,446
------------- ------------ -------------
Total Current
Liabilities 311,942 211,269 246,573
------------- ------------ -------------
Non-Current Liabilities
- ----------------------------
Revolving Loan 10,000 - -
Senior Notes - 65,000 125,000
Deferred Income Taxes,
Net 10,705 12,564 15,963
Accrued Postemployment
Agreements 5,565 5,594 6,352
Deferred Rent and
Other 14,519 13,448 12,613
------------- ------------ -------------
Total Non-current
Liabilities 40,789 96,606 159,928
------------- ------------ -------------
TOTAL LIABILITIES 352,731 307,875 406,501
------------- ------------ -------------
SHAREHOLDERS' EQUITY
- ----------------------------
Common Stock, $0.01 par
value, 200,000,000 Shares
Authorized; 70,823,000,
70,757,000 and 70,527,000
Shares issued and
outstanding at September
30, 2006, June 30, 2006 and
September 30, 2005,
respectively. 709 708 706
Treasury Stock (1,894) (2,120) (2,377)
Additional Paid-in Capital 126,186 124,550 117,463
Retained Earnings 462,813 441,893 403,572
Accumulated Other
Comprehensive Loss (423) (424) (69)
------------- ------------ -------------
TOTAL SHAREHOLDERS' EQUITY 587,391 564,607 519,295
------------- ------------ -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $940,122 $872,482 $925,796
============= ============ =============
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
For The Quarter
Ended September 30,
-------------------
2006 2005
--------- ---------
REVENUES:
Tuition $202,633 $183,053
Other Educational 16,582 13,308
Interest 1,438 419
--------- ---------
Total Revenues 220,653 196,780
--------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 120,304 111,709
Gain on Sale of Assets (19,855) -
Student Services and Administrative Expense 85,798 75,890
Interest Expense 2,169 2,655
--------- ---------
Total Costs and Expenses 188,416 190,254
--------- ---------
Income Before Income Taxes 32,237 6,526
Income Tax Provision 11,317 1,794
--------- ---------
NET INCOME $20,920 $4,732
========= =========
EARNINGS PER COMMON SHARE
Basic $0.30 $0.07
========= =========
Diluted $0.29 $0.07
========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Quarter
Ended September 30,
-------------------
2006 2005
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $20,920 $4,732
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Stock-Based Compensation Charge 978 1,145
Depreciation 8,392 9,093
Amortization 2,200 2,701
Provision for Refunds and Uncollectible
Accounts 13,308 11,264
Deferred Income Taxes (3,652) 14
(Gain) Loss on Disposals of Land, Buildings and
Equipment (19,724) 10
Changes in Assets and Liabilities, Net of
Effects from Acquisition of Business:
Restricted Cash (9,566) (12,279)
Accounts Receivable (43,544) (55,604)
Inventories 4 77
Prepaid Expenses And Other (4,837) (6,418)
Accounts Payable (5,364) (6,556)
Accrued Salaries, Wages, Expenses and
Benefits 16,946 (7,281)
Advance Tuition Payments 2,115 941
Deferred Tuition Revenue 71,976 72,623
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 50,152 14,462
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (7,761) (4,564)
Net Proceeds from Sale of Land and Buildings 34,778 -
Payment for Purchase of Business - (2,000)
--------- ---------
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES 27,017 (6,564)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 658 328
Proceeds From Stock Issued Under Employee Stock
Purchase Plan 227 -
Excess Tax Benefit from Stock-Based Payments 8 42
Repayments Under Senior Notes (40,000)
Repayments Under Revolving Credit Facility - (50,000)
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (39,107) (49,630)
--------- ---------
Effects of Exchange Rate Differences 1 (262)
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 38,063 (41,994)
Cash and Cash Equivalents at Beginning of Period 130,583 161,823
--------- ---------
Cash and Cash Equivalents at End of Period $168,646 $119,829
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest Paid During the Period $2,150 $2,206
Income Tax Payments During the Period, Net 225 6,900
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