Exhibit 99.1
DeVry Inc. Reports Fiscal 2007 Second-Quarter Results
Earnings Increased 51 Percent on Record Revenues
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Jan. 25, 2007--DeVry Inc.
(NYSE: DV), an international higher education company, reported today
financial results for the fiscal 2007 second quarter and the six-month
period ended December 31, 2006.
Revenues for the second quarter of fiscal 2007 increased 13.2
percent to $237.5 million, compared to $209.9 million for the same
quarter one year ago. For the six-month period of fiscal 2007,
revenues were up 12.7 percent to $458.2 million compared to $406.6
million last year.
Net income increased 51.4 percent for the quarter to $16.4
million, or $0.23 per fully diluted share, compared to $10.8 million,
or $0.15 per fully diluted share, for the same period last year. For
the first half of fiscal 2007, net income increased 140 percent to
$37.3 million, or $0.52 per fully diluted share, compared to $15.6
million, or $0.22 per fully diluted share, for the first half of
fiscal 2006. Net income in the first half 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.
During the quarter, the company announced the adoption of a
dividend and stock repurchase program. The first dividend of $0.05 per
share was paid on January 12 to common stockholders of record as of
December 20, 2006. DeVry's board of directors stated its intent to
declare dividends on a semi-annual basis, resulting in an annual
dividend rate of $0.10 per share. The stock repurchase program allows
the company to buy back up to $35 million of its common stock within
the next two years.
DeVry further reduced its outstanding debt, ending the fiscal 2007
second quarter with $50 million of debt and a strong cash position, as
illustrated in the accompanying Chart 1. Also, as part of its overall
financing strategy, DeVry recently entered into an amended credit
agreement that will result in more favorable interest rates and
borrowing terms.
"We posted solid revenue increases and delivered improved bottom
line results for the second quarter and first half of fiscal 2007,"
said Daniel Hamburger, DeVry's president and chief executive officer.
"In addition, we continued to strengthen our financial position and
have taken actions with our overall financial strategy to drive
shareholder value."
DeVry University opened its second location in Tampa, Fla., in
January and announced it will open a new location in Memphis, Tenn.,
this March, bringing its total number of locations to 84. The Memphis
facility will offer both bachelor's and master's degree programs.
As previously announced in December 2006, DeVry University
achieved its sixth consecutive period of positive enrollment growth.
New students increased 11.9 percent and total students increased 4.9
percent. DeVry University was once again cited by Diverse Issues in
Higher Education as a top producer of minority graduates for select
programs. Historical enrollment information and minority graduate
rankings are provided as supplemental information to this press
release as Charts 2 and 3, respectively.
The company recently announced that Chamberlain College of Nursing
has received approval to establish a new campus in Columbus, Ohio,
with classes scheduled to begin in March 2007. Chamberlain will be
co-located with the existing DeVry University campus.
As a result of continued demand for highly-skilled accounting
professionals, Becker Professional Review once again experienced
strong results in the second quarter, with revenue increasing 49.5
percent over last year.
Hamburger added, "We are pleased with our continued progress on
our five-year strategic plan and the initiatives undertaken to drive
future enrollment, revenue and earnings growth."
DeVry Inc. will hold a conference call to discuss its fiscal 2007
second-quarter results on January 25, 2007, at 3:30 p.m. Central Time
(4:30 p.m. Eastern Time). The conference call will be led by Daniel
Hamburger, president and chief executive officer, and Rick Gunst,
chief financial officer.
For those wishing to participate by telephone, dial 800-706-7741
(domestic) or 617-614-3471 (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=
93880&eventID=1425754. (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
February 8, 2007. To access the replay, dial 888-286-8010 (domestic)
or 617-801-6888 (international), passcode 63995954. 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=1425754. (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 offers doctoral degree programs through
its schools of Medicine and Veterinary Medicine. 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, and continuing professional
education. 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)
Second Quarter
Ended December 31:
2006 2005
--------------------
Revenues $237,536 $209,869
Net Income $16,397 $10,828
Earnings per Share (diluted) $0.23 $0.15
Weighted average number of common shares (diluted) 71,282 70,847
First Six Months
Ended December 31:
2006 2005
--------------------
Revenues $458,189 $406,649
Net Income $37,317 $15,560
Earnings per Share (diluted) $0.52 $0.22
Weighted average number of common shares (diluted) 71,162 70,702
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 first six-month's earnings (in thousands, except per
share data):
First Six Months
Ended December 31:
2006 2005
--------------------
Net Income $37,317 $15,560
Earnings per Share (diluted) $0.52 $0.22
Gain on Facility Sale (net of tax) $11,840 $273
Earnings per Share (diluted) $0.16 --
Net Income Excluding the Gain on Facility Sale $25,477 $15,287
Earnings per Share (diluted) $0.36 $0.22
Supplemental Company Data:
Chart 1 - Cash and Funded Debt
(See chart in Multimedia Gallery
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5318833)
Chart 2 - Historical DeVry University Undergraduate Enrollments
(See chart in Multimedia Gallery
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5318833)
Chart 3 - Top 100 Degree Producers
Computer and Information Sciences and Support Services - Total
Minority Baccalaureates
1. DeVry University - California
2. American Intercontinental University
3. DeVry University - Illinois
4. University of California - Irvine
5. University of Maryland - University College
6. DeVry University - Georgia
7. Strayer University - Washington Campus
8. University of Maryland - Baltimore Co.
9. University of Phoenix - Online
10. New Jersey Institute of Technology
Source: Diverse Issues in Higher Education, June 2006
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 and Exchange Commission on September 13, 2006.
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
December 31, June 30, December 31,
2006 2006 2005
------------ --------- ------------
ASSETS
- ------
Current Assets
--------------------------------
Cash and Cash Equivalents $171,346 $130,583 $143,765
Restricted Cash 24,091 20,632 38,997
Accounts Receivable, Net 60,350 46,567 85,467
Inventories 118 133 85
Deferred Income Taxes, Net 15,344 13,700 17,142
Prepaid Expenses and Other 21,255 16,458 15,843
------------ --------- ------------
Total Current Assets 292,504 228,073 301,299
------------ --------- ------------
Land, Buildings and Equipment
---------------------------------
Land 61,789 67,756 67,633
Buildings 212,171 222,059 219,143
Equipment 252,269 245,360 239,442
Construction In Progress 12,880 9,057 5,508
------------ --------- ------------
539,109 544,232 531,726
Accumulated Depreciation and
Amortization (282,458) (271,306) (254,033)
------------ --------- ------------
Land, Buildings and
Equipment, Net 256,651 272,926 277,693
------------ --------- ------------
Other Assets
--------------------------------
Intangible Assets, Net 60,150 63,762 68,538
Goodwill 291,113 291,113 291,306
Perkins Program Fund, Net 13,450 13,450 13,290
Other Assets 5,933 3,158 4,328
------------ --------- ------------
Total Other Assets 370,646 371,483 377,462
------------ --------- ------------
TOTAL ASSETS $919,801 $872,482 $956,454
============ ========= ============
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
December 31, June 30, December 31,
2006 2006 2005
------------ --------- ------------
LIABILITIES
- -----------
Current Liabilities
--------------------------------
Current Portion of Debt $50,000 $60,000 $35,000
Accounts Payable 32,975 39,677 29,983
Accrued Salaries, Wages and
Benefits 43,642 35,600 33,794
Accrued Expenses 29,059 27,639 26,414
Advance Tuition Payments 7,367 16,584 28,875
Deferred Tuition Revenue 119,950 31,769 110,413
------------ --------- ------------
Total Current
Liabilities 282,993 211,269 264,479
------------ --------- ------------
Other Liabilities
--------------------------------
Senior Notes - 65,000 125,000
Deferred Income Taxes, Net 12,407 12,564 16,078
Accrued Postemployment
Agreements 5,341 5,594 6,392
Deferred Rent and Other 14,698 13,448 12,695
------------ --------- ------------
Total Other Liabilities 32,446 96,606 160,165
------------ --------- ------------
TOTAL LIABILITIES 315,439 307,875 424,644
------------ --------- ------------
SHAREHOLDERS' EQUITY
- ----------------------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,907,000, 70,757,000 and
70,564,000 Shares issued
and outstanding at December 31,
2006, June 30, 2006
and December 31, 2005,
Respectively. 710 708 706
Additional Paid-in Capital 129,928 124,550 119,154
Retained Earnings 475,665 441,893 414,400
Accumulated Other Comprehensive
Loss (50) (424) (73)
Treasury Stock, at Cost (86,490,
97,770, 109,767 Shares,
Respectively) (1,891) (2,120) (2,377)
------------ --------- ------------
TOTAL SHAREHOLDERS' EQUITY 604,362 564,607 531,810
------------ --------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $919,801 $872,482 $956,454
============ ========= ============
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
- ----------------------------------------------------------------------
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
For The Quarter For The Six Months
Ended December 31, Ended December 31,
--------------------- ---------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
REVENUES:
Tuition $217,076 $196,032 $419,709 $379,085
Other Educational 18,528 13,398 35,110 26,706
Interest 1,932 439 3,370 858
---------- ---------- ---------- ----------
Total Revenues 237,536 209,869 458,189 406,649
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Cost of Educational
Services 120,580 111,468 240,884 223,177
Gain on Sale of Assets - (451) (19,855) (451)
Student Services and
Administrative Expense 93,184 81,887 179,036 157,777
Interest Expense 1,774 2,606 3,889 5,261
---------- ---------- ---------- ----------
Total Costs and
Expenses 215,538 195,510 403,954 385,764
---------- ---------- ---------- ----------
Income Before Income Taxes 21,998 14,359 54,235 20,885
Income Tax Provision 5,601 3,531 16,918 5,325
---------- ---------- ---------- ----------
NET INCOME $16,397 $10,828 $37,317 $15,560
========== ========== ========== ==========
EARNINGS PER COMMON SHARE
Basic $0.23 $0.15 $0.53 $0.22
========== ========== ========== ==========
Diluted $0.23 $0.15 $0.52 $0.22
========== ========== ========== ==========
Cash Dividend Declared per
Common Share $0.05 $- $0.05 $-
========== ========== ========== ==========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Six Months
Ended December 31,
-------------------------
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $37,317 $15,560
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Stock-Based Compensation Charge 3,113 2,239
Depreciation 17,365 18,628
Amortization 4,585 5,402
Provision for Refunds and Uncollectible
Accounts 26,440 23,578
Deferred Income Taxes (1,848) 56
Gain on Disposals of Land, Buildings and
Equipment (19,677) (479)
Changes in Assets and Liabilities, Net of
Effects from Acquisition of Business:
Restricted Cash (3,462) (25,059)
Accounts Receivable (40,241) (69,800)
Inventories 9 87
Prepaid Expenses And Other (7,531) (5,629)
Accounts Payable (6,699) (727)
Accrued Salaries, Wages, Expenses and
Benefits 5,950 (8,382)
Advance Tuition Payments (9,186) 14,152
Deferred Tuition Revenue 88,181 87,590
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 94,316 57,216
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (16,202) (10,848)
Net Proceeds from Sale of Land and Building 34,778 1,798
Payment for Purchase of Business, Net of
Cash Acquired - (1,998)
------------ ------------
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES 18,576 (11,048)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 2,098 1,040
Proceeds From Stock Issued Under Employee
Stock Purchase Plan 398 -
Excess Tax Benefit from Stock-Based
Payments 47 -
Proceeds From Revolving Credit Facility 40,000 -
Repayments Under Senior Notes (115,000) -
Repayments Under Revolving Credit Facility - (65,000)
------------ ------------
NET CASH USED IN FINANCING ACTIVITIES (72,457) (63,960)
------------ ------------
Effects of Exchange Rate Differences 328 (266)
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 40,763 (18,058)
Cash and Cash Equivalents at Beginning of
Period 130,583 161,823
------------ ------------
Cash and Cash Equivalents at End of Period $171,346 $143,765
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Period For:
Interest $4,014 $4,512
Income Taxes, net 17,219 14,447
Non-cash Financing Activity:
Declaration of Cash Dividends to be Paid 3,545 -
CONTACT: DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
630-574-1949
or
Media Contact:
David Gutierrez
Dresner Corporate Services
dgutierrez@dresnerco.com
312-780-7204