Exhibit 99.1
DeVry Inc. Reports Fiscal 2007 Third-Quarter Results,
Enrollment at DeVry University, Ross University
Debt Free at Quarter End
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 26, 2007--DeVry
Inc. (NYSE: DV), an international higher education company, reported
today its financial results for the fiscal 2007 third quarter and the
nine-month period ended March 31, 2007, and spring enrollment at DeVry
University and Ross University.
Revenues for the third quarter of fiscal 2007 increased 12.5
percent to $247.8 million, compared to $220.2 million for the same
quarter one year ago. For the nine-month period of fiscal 2007,
revenues were up 12.6 percent to $706.0 million compared to $626.9
million last year.
Net income increased 46.2 percent for the quarter to $22.9
million, or $0.32 per fully diluted share, compared to $15.7 million,
or $0.22 per fully diluted share, for the same period last year. For
the first nine months of fiscal 2007, net income increased 92.8
percent to $60.2 million, or $0.85 per fully diluted share, compared
to $31.2 million, or $0.44 per fully diluted share, for the first nine
months of fiscal 2006. Net income in the first nine months 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.
Third-quarter and nine-month results include a pre-tax gain of
approximately $1.0 million for the sale of excess land in Tinley Park,
Ill. The pre-tax gain was offset by a severance charge of $1.1 million
pre-tax for the previously announced Voluntary Separation Plan for
eligible DeVry University campus-based employees. The company expects
charges related to this program in the fourth quarter of $2.6 million
pre-tax.
Based on the results of the voluntary separation plan, today the
company announced an involuntary workforce reduction that will affect
approximately 145 employees at DeVry University campuses. The company
expects to incur a charge of approximately $2.6 million related to
severance charges from this involuntary reduction in the fourth
quarter. Annual savings are expected to be approximately $10 million
per year as a result of these voluntary and involuntary plans.
"We take these difficult decisions seriously and have endeavored
to conduct these plans with respect for the individual," said Daniel
Hamburger, president and chief executive officer. " In line with our
strategic plan, we are focused on realigning our cost structure with
our revenue streams and making investments to support high growth
areas such as DeVry University Centers, online education, Ross
University and Chamberlain College of Nursing."
At DeVry University, new undergraduate student enrollment in
spring 2007 increased 6.9 percent to 11,075 students, compared to
10,359, in spring 2006. Total undergraduate student enrollment in
spring 2007 increased 5.5 percent to 40,637 students, compared to
38,523 students in the previous year.
For the January 2007 session, the number of graduate coursetakers
at Keller Graduate School of Management increased 10.9 percent to
15,278, compared to 13,776 coursetakers in January 2006. In the March
2007 session, graduate coursetakers increased 5.2 percent to 14,756
from 14,029 in the prior year.
The total number of online undergraduate and graduate coursetakers
in spring 2007 increased 22.5 percent to 35,417, compared to 28,912
last year.
DeVry University opened a new location in San Jose, Calif., in
March, and in April announced a new Master of Science in Educational
Technology program, marking the first master's degree program that
will be offered solely under the DeVry University brand.
At Ross University, new students increased 28.2 percent to 496 in
the January 2007 term, compared to 387 in the same term last year.
Total students increased 14.8 percent to 3,747, compared to 3,264 last
year.
As a result of continued demand for accounting and finance
professionals, DeVry's professional and training segment once again
experienced strong results in the third quarter, with revenue
increasing almost 17 percent over last year.
Mr. Hamburger added, "As a result of our efforts to optimize our
core business, we continued to show year-over-year improvement in
spring enrollment results. We are pleased with these overall results
and will continue to implement our multi-year plan to improve
enrollment at our campuses."
In November 2006, the company adopted a stock repurchase program
which allows for the repurchase of up to $35 million of its common
stock within the next two years. During the quarter, the company
purchased approximately 194,000 shares of DeVry common stock for
approximately $5.3 million.
DeVry further reduced its outstanding debt during the quarter,
ending the fiscal 2007 third quarter with no debt and cash of $135.8
million, as illustrated in the accompanying Chart 1.
DeVry Inc. will hold a conference call to discuss its fiscal 2007
third-quarter and spring enrollment results on April 26, 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 866-203-3436
(domestic) or 617-213-8849 (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=1425756. (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 May
10, 2007. To access the replay, dial 888-286-8010 (domestic) or
617-801-6888 (international), passcode 72244859. 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=1425756. (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 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)
- ----------------------------------------------------------------------
Third Quarter
Ended March 31:
2007 2006 Change
------------------------------
Revenues $247,781 $220,206 +12.5%
Net Income $22,924 $15,682 +46.2%
Earnings per Share (diluted) $0.32 $0.22 +45.4%
Weighted average number of common shares
(diluted) 71,512 70,913 +0.8%
Nine Months
Ended March 31:
2007 2006 Change
------------------------------
Revenues $705,970 $626,855 +12.6%
Net Income $60,241 $31,242 +92.8%
Earnings per Share (diluted) $0.85 $0.44 +93.2%
Weighted average number of common shares
(diluted) 71,279 70,739 +0.8%
Enrollment Results
- ----------------------------------------------------------------------
Spring 2007 Spring 2006 Change
DeVry University
New undergraduate students
(onsite/online) 11,075 10,359 +6.9%
Total undergraduate students
(onsite/online) 40,637 38,523 +5.5%
March 2007 March 2006 Change
Graduate coursetakers(1) 14,756 14,029 +5.2%
Online coursetakers(1) 35,417 28,912 +22.5%
January 2007 January 2006 Change
Graduate coursetakers(1) 15,278 13,776 +10.9%
Ross University
New students 496 387 +28.2%
Total students 3,747 3,264 +14.8%
Period % Employed(2) Avg. Salary
DeVry University Graduate Oct 05-Feb 06-
Employment Statistics Jun 06 91% $40,674
(1)The term "coursetaker" refers to the number of courses taken by
a student. Thus one student taking two courses is counted as two
coursetakers.
(2) Graduates who actively pursued employment or who were already
employed when they graduated and held positions in their chosen fields
within six months of graduation.
The following table illustrates the effects of the gain on the
sales of the West Hills facility and excess Tinley Park land and the
separation plan severance 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 three- and nine-month periods ended March 31 (in thousands,
except per share data):
For The Three Months For The Nine Months
Ended March 31: Ended March 31:
2007 2006 2007 2006
-----------------------------------------
Net Income $22,924 $15,682 $60,241 $31,242
Earnings per Share
(diluted) $0.32 $0.22 $0.85 $0.44
Gain on Facility and Land
Sales (net of tax) $571 -- $12,411 $273
Earnings per Share
(diluted) $0.01 -- $0.17 --
Separation Plan Severance
(net of tax) $(654) -- $(654) --
Earnings per Share
(diluted) $(0.01) -- $(0.01) --
Net Income Excluding the Gain
on Facility and
Land Sales and Separation
Plan Severance $23,007 $15,682 $48,484 $30,969
Earnings per Share
(diluted) $0.32 $0.22 $0.68 $0.44
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.
(Financial Statements to follow)
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31, June 30, March 31,
2007 2006 2006
--------- --------- ---------
ASSETS
- ------
Current Assets
---------------------------------------
Cash and Cash Equivalents $135,821 $130,583 $162,355
Restricted Cash 58,042 20,632 52,523
Accounts Receivable, Net 95,490 46,567 90,089
Inventories 125 133 104
Deferred Income Taxes, Net 15,501 13,700 19,811
Prepaid Expenses and Other 15,196 16,458 13,154
--------- --------- ---------
Total Current Assets 320,175 228,073 338,036
--------- --------- ---------
Land, Buildings and Equipment
---------------------------------------
Land 60,578 67,756 67,653
Buildings 214,517 222,059 219,899
Equipment 257,757 245,360 241,736
Construction In Progress 15,367 9,057 7,207
--------- --------- ---------
548,219 544,232 536,495
Accumulated Depreciation and
Amortization (290,655) (271,306) (262,871)
--------- --------- ---------
Land, Buildings and
Equipment, Net 257,564 272,926 273,624
--------- --------- ---------
Other Assets
---------------------------------------
Intangible Assets, Net 58,344 63,762 65,956
Goodwill 291,113 291,113 291,113
Perkins Program Fund, Net 13,450 13,450 13,290
Other Assets 6,515 3,158 4,180
--------- --------- ---------
Total Other Assets 369,422 371,483 374,539
--------- --------- ---------
TOTAL ASSETS $947,161 $872,482 $986,199
========= ========= =========
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
- ----------------------------------------------------------------------
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31, June 30, March 31,
2007 2006 2006
--------- --------- ---------
LIABILITIES
- ------------
Current Liabilities
---------------------------------------
Current Portion of Debt $- $60,000 $50,000
Accounts Payable 34,283 39,677 30,016
Accrued Salaries, Wages and
Benefits 39,912 35,600 31,679
Accrued Expenses 35,771 27,639 35,521
Advance Tuition Payments 12,311 16,584 8,533
Deferred Tuition Revenue 167,064 31,769 151,413
--------- --------- ---------
Total Current Liabilities 289,341 211,269 307,162
--------- --------- ---------
Other Liabilities
---------------------------------------
Senior Notes - 65,000 95,000
Deferred Income Taxes, Net 11,811 12,564 14,628
Accrued Postemployment Agreements 5,144 5,594 6,382
Deferred Rent and Other 14,855 13,448 12,742
--------- --------- ---------
Total Other Liabilities 31,810 96,606 128,752
--------- --------- ---------
TOTAL LIABILITIES 321,151 307,875 435,914
--------- --------- ---------
SHAREHOLDERS' EQUITY
- ----------------------------------------
Common Stock, $0.01 par value,
200,000,000 Shares Authorized,
70,885,000, 70,757,000 and 70,661,000
Shares issued and outstanding at March
31, 2007, June 30, 2006 and March 31,
2006, Respectively. 711 708 708
Additional Paid-in Capital 133,999 124,550 121,870
Retained Earnings 498,589 441,893 430,082
Accumulated Other Comprehensive Loss (159) (424) (71)
Treasury Stock, at Cost (275,221,
97,770, 106,264 Shares, Respectively) (7,130) (2,120) (2,304)
--------- --------- ---------
TOTAL SHAREHOLDERS' EQUITY 626,010 564,607 550,285
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $947,161 $872,482 $986,199
========= ========= =========
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,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
REVENUES:
Tuition $226,141 $203,299 $645,850 $582,384
Other Educational 19,684 15,771 54,794 42,477
Interest 1,956 1,136 5,326 1,994
--------- --------- --------- ---------
Total Revenues 247,781 220,206 705,970 626,855
--------- --------- --------- ---------
COSTS AND EXPENSES:
Cost of Educational Services 125,815 115,483 366,699 338,660
Separation Plan Severance 1,097 - 1,097 -
Gain on Sale of Assets (957) - (20,812) (451)
Student Services and
Administrative Expense 90,283 80,999 269,319 238,776
Interest Expense 774 2,490 4,663 7,751
--------- --------- --------- ---------
Total Costs and
Expenses 217,012 198,972 620,966 584,736
--------- --------- --------- ---------
Income Before Income Taxes 30,769 21,234 85,004 42,119
Income Tax Provision 7,845 5,552 24,763 10,877
--------- --------- --------- ---------
NET INCOME $22,924 $15,682 $60,241 $31,242
========= ========= ========= =========
EARNINGS PER COMMON SHARE
Basic $0.32 $0.22 $0.85 $0.44
========= ========= ========= =========
Diluted $0.32 $0.22 $0.85 $0.44
========= ========= ========= =========
Cash Dividend Declared per
Common Share $- $- $0.05 $-
========= ========= ========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Nine Months
Ended March 31,
-------------------
2007 2006
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $60,241 $31,242
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Stock-Based Compensation Charge 4,347 3,286
Depreciation 26,826 28,043
Amortization 6,568 8,104
Provision for Refunds and Uncollectible
Accounts 39,184 39,570
Deferred Income Taxes (2,734) (4,025)
Gain on Disposals of Land, Buildings and
Equipment (20,575) (390)
Changes in Assets and Liabilities, Net of
Effects from Acquisition of Business:
Restricted Cash (37,412) (38,649)
Accounts Receivable (88,120) (90,802)
Inventories 4 66
Prepaid Expenses And Other (2,276) (2,881)
Accounts Payable (5,392) (460)
Accrued Salaries, Wages, Expenses and
Benefits 12,469 (313)
Advance Tuition Payments (4,250) (6,126)
Deferred Tuition Revenue 135,295 128,713
--------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 124,175 95,378
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (27,539) (16,283)
Net Proceeds from Sale of Land and Building 36,642 1,798
Payment for Purchase of Business, Net of Cash
Acquired - (2,530)
--------- ---------
NET CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES 9,103 (17,015)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Exercise of Stock Options 4,738 2,433
Proceeds From Stock Issued Under Employee Stock
Purchase Plan 674 -
Repurchase of Common Stock for Treasury (5,317) -
Cash Dividends Paid (3,545) -
Excess Tax Benefit from Stock-Based
Compensation 180 -
Borrowings From Revolving Credit Facility 40,000 -
Repayments Under Revolving Credit Facility (50,000) (80,000)
Repayments Under Senior Notes (115,000) -
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (128,270) (77,567)
--------- ---------
Effects of Exchange Rate Differences 230 (264)
--------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS 5,238 532
Cash and Cash Equivalents at Beginning of Period 130,583 161,823
--------- ---------
Cash and Cash Equivalents at End of Period $135,821 $162,355
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Period For:
Interest $4,700 $6,951
Income Taxes, net 17,912 14,861
MULTIMEDIA AVAILABLE:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5387997
CONTACT: DeVry Inc.
Investor Contact:
Joan Bates
Director of Investor Relations
jbates@devry.com
630-574-1949
or
Dresner Corporate Services
Media Contact:
David Gutierrez
dgutierrez@dresnerco.com
312-780-7204