EXHIBIT 99.1
DeVry Inc. Reports Fiscal 2007 Fourth-Quarter and Year-End Results;
Record Net Income, Up 77%
DeVry University New Undergraduate Students Increased 9.7 Percent and
Total Undergraduate Students Increased 9.8 Percent
OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Aug. 13, 2007--DeVry Inc.
- -- (NYSE: DV), an international higher education company, reported
financial results for the fiscal 2007 fourth quarter and year end.
DeVry Inc. also announced enrollments at DeVry University, Keller
Graduate School of Management, Ross University and Chamberlain College
of Nursing.
Revenues for the fourth quarter of fiscal 2007 increased 8.5
percent to $232.8 million, compared with $214.7 million for the same
quarter a year ago. Full-year fiscal 2007 revenues were up 11.2
percent to $933.5 million, compared to $839.5 million last year. The
revenue increase is being driven by enrollment growth across all of
the company's operating segments.
Net income increased 35 percent for the quarter to $15.9 million,
or $0.22 per fully diluted share, compared with $11.8 million, or
$0.17 per fully diluted share, for the same period last year. For the
twelve months of fiscal 2007, net income increased 77 percent to a
record $76.2 million, or $1.07 per fully diluted share, compared with
$43.1 million, or $0.61 per fully diluted share, for the twelve months
of fiscal 2006.
These results include the impact of real estate sales and
severance charges. Fiscal 2007 full-year results include pre-tax gains
totaling approximately $20.8 million from the sale of the West Hills
facility in the first quarter and Tinley Park excess land in the third
quarter. Partially offsetting these gains is a $6.3 million severance
charge related to workforce reductions at DeVry University campuses,
with $1.1 million occurring in the third quarter and $5.2 million in
the fourth quarter, consistent with the company's announcement in
April 2007. Non-GAAP earnings per share would be $0.26 in the quarter
excluding the impact of the severance charge and $0.94 for the full
year excluding the real estate gains and severance charges (see "Use
of Non-GAAP Financial Information and Supplemental Reconciliation
Schedule").
Full-year results for fiscal years 2007 and 2006 reflect a
revision in the presentation of the income statement, whereby interest
income is no longer included in the revenue line. Interest income is
now presented with interest expense below the operating income line.
This revision provides a better presentation of operating income and
comparison of interest income and interest expense. Through a Form 8-K
filing today, the company provided revised income statements for the
last three fiscal years in total and for the last two fiscal years by
quarter.
"We achieved record earnings this fiscal year only two years
following the launch of our turnaround plan, and I'm pleased to say
that DeVry is back on a growth plan," said Daniel M. Hamburger,
president and chief executive officer. "We see tremendous opportunity
in front of us and look forward to continuing the positive momentum in
fiscal 2008 and beyond."
At DeVry University and its Keller Graduate School of Management,
enrollments continued to increase in summer 2007. New undergraduate
student enrollment in summer 2007 increased 9.7 percent to 13,906
students, compared with 12,671 students in summer 2006. Total
undergraduate student enrollment in summer 2007 increased 9.8 percent
to 40,774 students, compared with 37,132 students in the previous
year.
For the May 2007 session, the number of graduate coursetakers
increased 8.7 percent to 14,290 coursetakers, compared with 13,148
coursetakers in May 2007. In the July 2007 session, graduate
coursetakers increased 11.1 percent to 14,023 coursetakers from 12,617
in the previous year.
The total number of online undergraduate and graduate coursetakers
at DeVry University in summer 2007 increased 26.0 percent to 36,001
coursetakers, compared with 28,580 coursetakers last year.
During the fourth quarter, DeVry University opened a new
university center in Nashville, Tenn., which will offer Associate,
Bachelor's and Master's degree programs. A new university center was
also opened in the Detroit area, offering a Bachelor's
degree-completion program well suited to the needs of adult workers
seeking to change careers. Recently DeVry University announced its
plans to open its 87th location with a new center in Bakersfield,
Calif. Continuing its real estate optimization efforts, the University
recently signed a new lease for its Dallas facility, which
significantly decreased its leased space and will result in annualized
savings of approximately $900,000. For a list of selected examples of
real estate optimization actions to date, refer to chart 2.
At Ross University, new students decreased 5.2 percent to 416 in
the May 2007 term, compared with 439 students in the same term last
year. The decrease is related to a higher number of transfer students
in the May 2006 term when Ross enrolled 109 students from another
school. Total students increased 9.9 percent to 3,767, compared with
3,428 last year.
In summer 2007, Chamberlain College of Nursing enrolled 1,089
students, compared with 594 students at the same time last year, an
increase of 83.3 percent. The increase in enrollments is being driven
by the continued demand for nurses and the opening of the Chamberlain
campus in Columbus, Ohio, in March 2007.
During fiscal 2007, more than 47,000 students enrolled in Becker
Professional Review exam preparation courses, compared with
approximately 43,000 students in fiscal 2006. Becker posted record
revenue of $67.9 million for the 2007 fiscal year, compared to
approximately $53.6 million for fiscal 2006.
In November 2006, the company adopted a stock repurchase program
which allows for the repurchase of up to $35 million of its common
stock over a two-year period. During the fourth quarter, the company
repurchased approximately 161,900 shares of DeVry common stock for
approximately $5.2 million. To date, approximately 355,500 shares of
DeVry stock have been purchased on the open market as part of this
program for a total of $10.5 million.
DeVry Inc. will hold a conference call to discuss its fiscal 2007
fourth-quarter and year-end results on August 13, 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 800-299-7635
(domestic) or 617-786-2901 (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=1601844. (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 27, 2007. To access the replay, dial 888-286-8010 (domestic) or
617-801-6888 (international), passcode 97269503. 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=1601844. (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 parent organization of 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. For more information, visit
http://www.devryinc.com.
Selected Operating Data (in thousands,
except per share data)
- -----------------------------------------
Fourth Quarter Ended June 30
2007 2006 Change
-----------------------------
Revenues $232,829 $214,652 8.5%
Net Income $15,947 $11,811 35.0%
Earnings per Share (diluted) $0.22 $0.17 29.4%
Weighted average number of common shares
(diluted) 71,784 71,099 1.0%
Full Year Ended June 30
2007 2006 Change
-----------------------------
Revenues $933,473 $839,513 11.2%
Net Income $76,188 $43,053 77.0%
Earnings per Share (diluted) $1.07 $0.61 75.4%
Weighted average number of common shares
(diluted) 71,400 70,880 0.7%
Enrollment Results
- -------------------------
Summer 2007 Summer 2006 Change
DeVry University/Keller
Graduate School of
Management)
New undergraduate
students (onsite/online) 13,906 12,671 9.7%
Total undergraduate
students (onsite/online) 40,774 37,132 9.8%
July 2007 July 2006 Change
Graduate coursetakers (1) 14,023 12,617 11.1%
Online coursetakers (1) 36,593 28,580 26.0%
May 2007 May 2006 Change
Graduate coursetakers (1) 14,290 13,148 8.7%
Summer 2007 Summer 2006 Change
Chamberlain College of
Nursing 1,089 594 83.3%
May 2007 May 2006 Change
Ross University
New students 416 439 (5.2)%
Total students 3,767 3,428 9.9%
Average
Period % Employed(2) Salary
Graduate Employment
Statistics
- -------------------------
DeVry University
(Undergraduate) Feb 06-Jun06-Oct 06 91.9 $41,348
(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.
Use of Non-GAAP Financial Information and Supplemental
Reconciliation Schedule
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 fourth-quarter and full-year periods ended June 30 (in
thousands, except per share data):
For The Three Months For The Full Year
Ended June 30: Ended June 30:
2007 2006 2007 2006
----------------------------------------
Net Income $15,947 $11,811 $76,188 $43,053
Earnings per Share
(diluted) $0.22 $0.17 $1.07 $0.61
Gain on Sale of Assets (net of
tax) $261 -- $12,672 $273
Earnings per Share
(diluted) -- -- $0.18 --
Separation Plan Severance (net
of tax) $(3,153) -- $(3,807) --
Earnings per Share
(diluted) $(0.04) -- $(0.05) --
Net Income Excluding the Gain
on Facility and Land Sales
and Separation Plan Severance $18,839 $11,811 $67,323 $42,780
Earnings per Share
(diluted) $0.26 $0.17 $0.94 $0.61
Supplemental Company Data:
Chart 1 - Historical DeVry University Undergraduate Enrollments
Chart 2 - Real Estate Optimization Strategy
Selected examples of DeVry's real estate optimization efforts to date.
Date Site Actions Impact
12/04 Denver Facility sale Proceeds of $2 million
12/04 Houston Excess land Proceeds of $600,000
8/06 Philadelphia Excess parking Proceeds of $1 million
9/06 West Hills Facility sale Proceeds of $36 million
9/06 DuPage Co-location of academics $360,000 annualized
savings
9/06 Phoenix Co-location of online $160,000 annualized
recruitment savings
3/07 Columbus Co-location of $250,000 annualized
Chamberlain savings
5/07 Calgary Sublease excess space $700,000 annualized
savings
5/07 Pomona Excess parking $190,000 annualized
savings
7/07 Dallas Leased 60% of existing $900,000 annualized
space savings
Chart 3 - DeVry Inc. Enrollments by Degree and Program Level
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)
- ----------------------------------------------------------------------
PRELIMINARY
June 30,
-------------------------
2007 2006
------------ ------------
ASSETS:
Current Assets:
------------------------------------------
Cash and Cash Equivalents $129,155 $130,583
Restricted Cash 14,483 20,632
Accounts Receivable, Net 43,084 46,567
Inventories 141 133
Deferred Income Taxes, Net 13,915 13,700
Prepaid Expenses and Other 18,207 16,458
------------ ------------
Total Current Assets 218,985 228,073
------------ ------------
Land, Buildings and Equipment:
------------------------------------------
Land 60,570 67,756
Buildings 218,836 222,059
Equipment 260,847 245,360
Construction In Progress 15,816 9,057
------------ ------------
556,069 544,232
Accumulated Depreciation and
Amortization (296,742) (271,306)
------------ ------------
Land, Buildings and Equipment, Net 259,327 272,926
------------ ------------
Other Assets:
------------------------------------------
Intangible Assets, Net 56,920 63,762
Goodwill 291,113 291,113
Perkins Program Fund, Net 13,450 13,450
Other Assets 4,318 3,158
------------ ------------
Total Other Assets 365,801 371,483
------------ ------------
TOTAL ASSETS $844,113 $872,482
============ ============
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
- ----------------------------------------------------------------------
PRELIMINARY
June 30,
-------------------------
2007 2006
------------ ------------
LIABILITIES:
Current Liabilities:
------------------------------------------
Current Maturities of Debt $- $60,000
Accounts Payable 34,295 39,677
Accrued Salaries, Wages and Benefits 47,093 35,600
Accrued Expenses 32,737 27,639
Advance Tuition Payments 14,402 16,584
Deferred Tuition Revenue 37,348 31,769
------------ ------------
Total Current Liabilities 165,875 211,269
------------ ------------
Non-Current Liabilities
------------------------------------------
Revolving Loan - -
Senior Notes - 65,000
Deferred Income Taxes, Net 18,343 12,564
Accrued Post-employment Agreements 4,901 5,594
Deferred Rent and Other 13,028 13,448
------------ ------------
Total Non-Current Liabilities 36,272 96,606
------------ ------------
TOTAL LIABILITIES 202,147 307,875
------------ ------------
COMMITMENTS AND CONTINGENCIES (Note 13)
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 Par Value, 200,000,000
Shares Authorized; 71,131,000 and
70,757,000 Shares Outstanding at June 30,
2007 and 2006, Respectively 716 708
Additional Paid-in Capital 143,580 124,550
Retained Earnings 510,979 441,893
Accumulated Other Comprehensive (Loss)
Income (918) (424)
Treasury Stock, at Cost (436,786 and
97,770 Shares, Respectively) (12,391) (2,120)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 641,966 564,607
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $844,113 $872,482
============ ============
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,
------------------- -----------------------------
2007 2006 2007 2006 2005
--------- --------- --------- --------- ---------
REVENUES:
Tuition $216,810 $199,429 $862,660 $781,813 $737,132
Other Educational 16,019 15,223 70,813 57,700 43,530
--------- --------- --------- --------- ---------
Total Revenues 232,829 214,652 933,473 839,513 780,662
--------- --------- --------- --------- ---------
OPERATING COSTS AND
EXPENSES:
Cost of
Educational
Services 120,022 114,406 486,721 453,066 434,408
Separation Plan
Severance 5,155 - 6,252 - 8,751
Gain on Sale of
Assets - - (20,812) (451) -
Student Services
and
Administrative
Expense 89,706 84,234 359,025 323,010 307,362
--------- --------- --------- --------- ---------
Total Operating
Costs and
Expenses 214,883 198,640 831,186 775,625 750,521
--------- --------- --------- --------- ---------
Operating Income 17,946 16,012 102,287 63,888 30,141
INTEREST:
Interest Income 2,111 1,791 7,437 3,785 642
Interest Expense (121) (2,439) (4,784) (10,190) (9,047)
--------- --------- --------- --------- ---------
Net Interest
Income
(Expense) 1,990 (648) 2,653 (6,405) (8,405)
--------- --------- --------- --------- ---------
Income Before Income
Taxes and
Cumulative Effect
of Change in
Accounting 19,936 15,364 104,940 57,483 21,736
Income Tax Provision 3,989 3,553 28,752 14,430 5,535
--------- --------- --------- --------- ---------
Income Before
Cumulative Effect
of Change in
Accounting 15,947 11,811 76,188 43,053 16,201
Cumulative Effect of
Change in
Accounting, Net of
Tax - - - - 1,810
--------- --------- --------- --------- ---------
NET INCOME $15,947 $11,811 $76,188 $43,053 $18,011
========= ========= ========= ========= =========
EARNINGS PER COMMON
SHARE
Basic
Income Before
Cumulative
Effect of
Change in
Accounting $0.22 $0.17 $1.07 $0.61 $0.24
Cumulative
Effect of
Change in
Accounting - - - - 0.02
--------- --------- --------- --------- ---------
Net Income $0.22 $0.17 $1.07 $0.61 $0.26
========= ========= ========= ========= =========
Diluted
Income Before
Cumulative
Effect of
Change in
Accounting $0.22 $0.17 $1.07 $0.61 $0.24
Cumulative
Effect of
Change in
Accounting - - - - 0.02
--------- --------- --------- --------- ---------
Net Income $0.22 $0.17 $1.07 $0.61 $0.26
========= ========= ========= ========= =========
Cash Dividend
Declared per Common
Share $0.05 $- $0.10 $- $-
========= ========= ========= ========= =========
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
- ----------------------------------------------------------------------
PRELIMINARY
For The Year Ended June 30,
-----------------------------
2007 2006 2005
--------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $76,188 $43,053 $17,752
Adjustments to Reconcile Net Income
to Net
Cash Provided by Operating
Activities:
Stock-Based Compensation Charge 5,428 4,339 13,011
Depreciation 35,979 37,616 42,353
Amortization 8,028 10,492 15,213
Provision for Refunds and
Uncollectible Accounts 51,240 47,271 43,521
Deferred Income Taxes 4,592 (2,941) (7,994)
(Gain) Loss on Disposals of Land,
Buildings and Equipment (20,452) (260) 803
Changes in Assets and Liabilities,
Net of Effects from
Acquisitions of Businesses:
Restricted Cash 6,153 (6,755) (412)
Accounts Receivable (47,739) (55,123) (54,267)
Inventories (2) 45 3,131
Prepaid Expenses And Other (5,223) (3,141) 2,153
Perkins Program Fund
Contribution and Other - 12 (764)
Accounts Payable (5,384) 9,172 2,852
Accrued Salaries, Wages,
Expenses and Benefits 13,002 (3,915) 12,465
Advance Tuition Payments (2,213) 1,888 (2,299)
Deferred Tuition Revenue 5,579 9,069 40
--------- --------- ---------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 125,176 90,822 87,558
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (38,558) (25,265) (42,909)
Net Proceeds from Sales of Land and
Building 36,642 1,798 -
Payments for Purchases of Businesses,
Net of Cash Acquired - (2,530) (4,861)
--------- --------- ---------
NET CASH USED IN INVESTING
ACTIVITIES (1,916) (25,997) (47,770)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock
Options 12,946 3,598 1,091
Proceeds from Stock Issued Under
Employee Stock Purchase Plan 927 336 -
Repurchase of Common Stock for
Treasury (10,534) - -
Cash Dividends Paid (3,545) - -
Excess Tax Benefit from Stock-Based
Payments 972 532 -
Proceeds from Revolving Credit
Facility 40,000 - 45,000
Repayments Under Revolving Credit
Facility (50,000) (90,000) (70,000)
Repayments Under Senior Notes (115,000) (10,000) -
--------- --------- ---------
NET CASH USED IN FINANCING
ACTIVITIES (124,234) (95,534) (23,909)
--------- --------- ---------
Effects of Exchange Rate Differences (454) (531) (283)
--------- --------- ---------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (1,428) (31,240) 15,596
Cash and Cash Equivalents at Beginning
of Year 130,583 161,823 146,227
--------- --------- ---------
Cash and Cash Equivalents at End of
Year $129,155 $130,583 $161,823
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Cash Paid During the Year for:
Interest $4,752 $9,214 $7,063
Income Taxes, Net 18,100 24,103 7,450
Non-cash Financing Activity:
Declaration of Cash Dividends to be
Paid 3,557 - -
CONTACT: DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
630-574-1949
or
Dresner Corporate Services
Media Contact:
David Gutierrez
dgutierrez@dresnerco.com
312-780-7204