-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PYQJh5B8eb4fRdFii3Of9Y+8SBlzpmVd6vBKfvPxWSRgmIdeITHsmqBKdyZ7oS+v sr/wF+SUShdrYTiEYXKCJA== 0001157523-05-003646.txt : 20050422 0001157523-05-003646.hdr.sgml : 20050422 20050421180207 ACCESSION NUMBER: 0001157523-05-003646 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050421 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20050422 DATE AS OF CHANGE: 20050421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEVRY INC CENTRAL INDEX KEY: 0000730464 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 363150143 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13988 FILM NUMBER: 05765648 BUSINESS ADDRESS: STREET 1: ONE TOWER LN STREET 2: SUITE 1000 CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 6305717700 MAIL ADDRESS: STREET 1: ONE TOWER LANE CITY: OAKBROOK STATE: IL ZIP: 60181 8-K 1 a4870429.txt DEVRY INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 21, 2005 -------------------------------- DeVRY INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 1-13988 36-3150143 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) ONE TOWER LANE, OAKBROOK TERRACE, IL 60181 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (630)571-7700 ------------------------------ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): [ ] Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Total number of pages: 12 1 DEVRY INC. FORM 8-K INDEX Page No. Item 2.02-Results of Operations and Financial Condition 3 Signatures 3 Exhibit Index 4 2 Item 2.02-Results of Operations and Financial Condition - ------------------------------------------------------- On April 21, 2005, DeVry Inc. issued a press release announcing the Company's fiscal 2005 third quarter operating results and 2005 spring term enrollment figures. The full text of that press release is included in Exhibit 99.1 in this Form 8-K. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DEVRY INC. ------------- (REGISTRANT) Date: April 21, 2005 /s/ Ronald L. Taylor -------------------- Ronald L. Taylor Chief Executive Officer Date: April 21, 2005 /s/ Norman M. Levine -------------------- Norman M. Levine Senior Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit Sequentially Number Description Numbered Page - -------------------------------------------------------------------------------- 99.1 Press release announcing the Company's fiscal 2005 third 5-12 quarter operating results and 2005 spring term enrollment figures. 4 EX-99.1 2 a4870429ex991.txt DEVRY INC. EXHIBIT 99.1 Exhibit 99.1 DeVry Inc. Reports Fiscal 2005 Third Quarter Results, Spring Enrollment at DeVry University and Ross University OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 21, 2005--DeVry Inc. -- (NYSE:DV), an international higher-education company, today reported financial results for the third quarter and first nine months of fiscal year 2005 ended March 31, 2005. DeVry Inc. also announced spring enrollments at DeVry University and Ross University. Revenues for the third quarter were $201.9 million, compared with $196.8 million for the same quarter one year ago. For the nine-month period ended March 31, 2005, revenues of $584.8 million were identical to the revenues reported for the same period last year. Net income for the quarter totaled $11.9 million, or $0.17 per fully diluted share, compared with $16.3 million, or $0.23 per fully diluted share, for the same period last year. For the first nine months of fiscal 2005, net income was $22.1 million, or $0.31 per share, compared with $42.4 million, or $0.60 per share for the first nine months of fiscal 2004. "Our third quarter financial results reflect lower total DeVry University enrollments caused by recruiting underperformance in previous terms and a greater proportion of part-time adult students, as enrollments at DeVry University Centers (DVUCs) and online have grown in recent terms," said Ronald L. Taylor, chief executive officer of DeVry Inc. "Our operating plan continues to focus on new student enrollments, while generating additional operating efficiencies to reduce expenses and improve financial results." Third quarter results were negatively affected by a $2.9 million pre-tax charge for previously announced workforce reductions. As a result of these workforce reductions, savings in fiscal 2006 are estimated at more than $10.5 million. During the fourth quarter, the company announced an additional voluntary workforce reduction program. The company expects charges in the fourth quarter related to this program to approximate the charges recorded in the third quarter. At DeVry University, new undergraduate student enrollment in spring 2005 increased 6.4 percent to 8,902 students, compared to 8,366 in spring 2004. Total student enrollment in spring 2005 declined 6.8 percent to 38,083 students, compared to 40,870 students in the previous year as a result of previous enrollment shortfalls. For the March 2005 session, the number of coursetakers at Keller Graduate School of Management increased 5.8 percent to 12,496 from 11,812 coursetakers in March 2004. In the January 2005 session, coursetakers also increased 5.8 percent to 12,597 coursetakers compared to 11,909 in the prior year. The total number of online undergraduate and graduate coursetakers in spring 2005 increased 79.1 percent to 19,759, compared to 11,032 in the same term a year ago. The total number of students enrolled at Ross University for the January 2005 term declined 3.3 percent to 3,122, compared to 3,229 last year as a result of higher standards in Ross University's admission criteria and academic progress requirements. The company expects the revised admission and academic policies to have a modest negative impact on student enrollment in the May 2005 class. "Improved undergraduate new student enrollment was fueled by the continued demand for our DVUC and online delivery modes," said Daniel Hamburger, DeVry's president and chief operating officer. "We expect continued strength in our online operations and at our DVUCs into the summer term, but the outcomes of our initiatives to improve full-time day enrollments at the large campus locations are still unclear. We expect some variability in enrollments as we continue to refine our marketing initiatives." During the third quarter DeVry University announced plans to open a second center in the Twin Cities area and expects to begin offering undergraduate and graduate degree programs in July 2005, and announced a plan to open a new center in San Antonio in July 2005, pending necessary approvals. DeVry University currently operates 74 locations in North America. Also during the third quarter, DeVry completed the acquisition of Deaconess College of Nursing for approximately $5.3 million in cash. Deaconess offers associate and bachelor's degree programs in nursing and a bachelor's degree completion program designed for registered nurses who have previously completed an associate degree program. Located in St. Louis, Missouri, the school currently enrolls approximately 450 students. DeVry Inc. will hold a conference call to discuss its fiscal 2005 third quarter results on April 21, 2005 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 Norman Levine, Senior Vice President and Chief Financial Officer. For those wishing to participate by telephone, dial 800-366-7417 (domestic) or 303-262-2194 (international). DeVry Inc. will also broadcast the conference call live via the Internet. Interested parties may access the web cast through the Investor Relations section of the company's web site at http://www.shareholder.com/devry/medialist.cfm. 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 6, 2005. To access the replay, dial 800-405-2236 (domestic) or 303-590-3000 (international), passcode 11027823 or to access the web cast replay, visit http://www.shareholder.com/devry/medialist.cfm. DeVry Inc. (NYSE:DV) is the holding company for DeVry University, Ross University, Deaconess 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, business and management. Ross University, through its schools of Medicine and Veterinary Medicine, offers both doctor of medicine and doctor of veterinary medicine degrees. Deaconess 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, certified management accountant and chartered financial analyst exams. DeVry Inc. is based in Oakbrook Terrace, Ill. For more information about the company, visit http://www.devry.com. Spring 2005 Enrollment Results - ------------------------------ DeVry University Spring 2005 Spring 2004 Increase/ (Decrease) New undergraduate students (onsite/online) 8,902 8,366 6.4% Total undergraduate students (onsite/online) 38,083 40,870 (6.8%) March 2005 March 2004 Increase/ (Decrease) Graduate coursetakers (onsite/online) 12,496 11,812 5.8% Online coursetakers (a) 19,759 11,032 79.1% January 2005 January 2004 Increase/ (Decrease) Ross University 3,122 3,229 (3.3%) (a) Online coursetakers are included in the new and total undergraduate and graduate coursetaker counts. Third Quarter Ended March 31: ----------------------------- Fiscal Year Fiscal Year 2005 2004 ---------------------------------- Revenues $201,930,000 $196,800,000 Net Income 11,947,000 16,295,000 Earnings Per Common Share Basic: $0.17 $0.23 Diluted: $0.17 $0.23 Number of Common Shares Basic 70,374,000 70,187,000 Diluted 70,547,000 70,885,000 Nine Months Ended March 31: --------------------------- Fiscal Year Fiscal Year 2005 2004 ---------------------------------- Revenues $584,848,000 $584,842,000 Income Before Cumulative Effect of Change in Accounting 20,293,000 42,365,000 Net Income 22,103,000 42,365,000 Earnings Per Common Share Basic: Income Before Cumulative Effect of Change in Accounting $0.29 $0.60 Net Income $0.31 $0.60 Diluted: Income Before Cumulative Effect of Change in Accounting $0.29 $0.60 Net Income $0.31 $0.60 Number of Common Shares Basic 70,364,000 70,088,000 Diluted 70,567,000 70,703,000 March 31: --------- Actual Shares Outstanding 70,378,000 70,282,000 DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) PRELIMINARY March 31, June 30, March 31, 2005 2004 2004 ---------- ---------- ---------- ASSETS - ------ Current Assets -------------- Cash and Cash Equivalents $138,187 $146,227 $147,203 Restricted Cash 33,175 13,457 29,998 Accounts Receivable, Net 119,012 28,150 87,206 Inventories 160 3,281 1,978 Deferred Income Taxes 10,820 7,619 9,944 Prepaid Expenses and Other 9,974 10,141 6,900 --------- --------- --------- Total Current Assets 311,328 208,875 283,229 --------- --------- --------- Land, Buildings and Equipment, net ---------------------------------- Land 64,583 64,256 60,306 Buildings 205,042 203,651 199,341 Equipment 233,133 222,898 219,921 Construction In Progress 21,475 6,214 3,477 --------- --------- --------- 524,233 497,019 483,045 Accumulated Depreciation (237,651) (210,132) (202,036) --------- --------- --------- Land, Buildings and Equipment, Net 286,582 286,887 281,009 --------- --------- --------- Other Assets ------------ Intangible Assets, Net 76,350 86,346 89,862 Goodwill 289,863 284,397 285,841 Perkins Program Fund, Net 12,847 12,247 11,991 Other Assets 4,871 5,380 4,682 --------- --------- --------- Total Other Assets 383,931 388,370 392,376 --------- --------- --------- TOTAL ASSETS $981,841 $884,132 $956,614 ========= ========= ========= DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) PRELIMINARY March 31, June 30, March 31, 2005 2004 2004 ---------- ---------- ---------- LIABILITIES - ----------- Current Liabilities ------------------- Current Maturities of Revolving Loan $- $35,000 $- Accounts Payable 22,433 27,349 17,732 Accrued Salaries, Wages & Benefits 32,551 31,041 30,203 Accrued Expenses 31,246 24,610 26,755 Advance Tuition Payments 10,238 16,819 8,900 Deferred Tuition Revenue 149,729 21,830 153,948 --------- --------- --------- Total Current Liabilities 246,197 156,649 237,538 --------- --------- --------- Non-Current Liabilities ----------------------- Revolving Loan 70,000 90,000 105,000 Senior Debt 125,000 125,000 125,000 Deferred Income Taxes 22,301 17,660 13,429 Deferred Rent and Other 18,232 16,566 15,504 --------- --------- --------- Total Non-Current Liabilities 235,533 249,226 258,933 --------- --------- --------- TOTAL LIABILITIES 481,730 405,875 496,471 --------- --------- --------- SHAREHOLDERS' EQUITY - -------------------- Common Stock, $0.01 par value, 200,000,000 Shares Authorized, 70,378,369, 70,331,323 and 70,281,623, Shares Issued and Outstanding at March 31, 2005, June 30, 2004 and March 31, 2004, Respectively. 705 704 703 Additional Paid-in Capital 72,057 71,797 69,426 Retained Earnings 427,139 405,036 389,340 Accumulated Other Comprehensive Income 210 720 674 --------- --------- --------- TOTAL SHAREHOLDERS' EQUITY 500,111 478,257 460,143 --------- --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $981,841 $884,132 $956,614 ========= ========= ========= 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, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- REVENUES: Tuition $190,713 $185,673 $552,824 $550,553 Other Educational 11,068 11,077 31,731 34,141 Interest 149 50 293 148 --------- --------- --------- --------- Total Revenues 201,930 196,800 584,848 584,842 --------- --------- --------- --------- COSTS AND EXPENSES: Cost of Educational Services 110,605 105,114 328,326 314,199 Student Services and Administrative Expense 73,472 67,045 223,743 205,150 Interest Expense 2,309 1,885 6,391 6,013 --------- --------- --------- --------- Total Costs and Expenses 186,386 174,044 558,460 525,362 --------- --------- --------- --------- Income Before Income Taxes and Cumulative Effect of Change in Accounting 15,544 22,756 26,388 59,480 Income Tax Provision 3,597 6,461 6,095 17,115 --------- --------- --------- --------- Income Before Cumulative Effect of Change in Accounting 11,947 16,295 20,293 42,365 Cumulative Effect of Change in Accounting, Net of Tax - - 1,810 - --------- --------- --------- --------- NET INCOME $11,947 $16,295 $22,103 $42,365 ========= ========= ========= ========= EARNINGS PER COMMON SHARE Basic Income Before Cumulative Effect of Change in Accounting $0.17 $0.23 $0.29 $0.60 Cumulative Effect of Change in Accounting - - 0.02 - --------- --------- --------- --------- Net Income $0.17 $0.23 $0.31 $0.60 ========= ========= ========= ========= Diluted Income Before Cumulative Effect of Change in Accounting $0.17 $0.23 $0.29 $0.60 Cumulative Effect of Change in Accounting - - 0.02 - --------- --------- --------- --------- Net Income $0.17 $0.23 $0.31 $0.60 ========= ========= ========= ========= DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) PRELIMINARY For The Nine Months Ended March 31, -------------------- 2005 2004 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $22,103 $42,365 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 30,369 30,158 Amortization 11,735 10,968 Provision for Refunds and Uncollectible Accounts 31,538 25,564 Deferred Income Taxes 1,440 1,794 Loss on Disposals of Land, Buildings and Equipment 638 336 Changes in Assets and Liabilities, Net of Effects from Acquisition of Business: Restricted Cash (19,652) (15,946) Accounts Receivable (121,618) (88,375) Inventories 3,137 2,337 Prepaid Expenses And Other 765 807 Accounts Payable (5,403) (1,134) Accrued Salaries, Wages, Expenses and Benefits 7,223 (5,600) Advance Tuition Payments (6,761) (1,668) Deferred Tuition Revenue 126,946 137,657 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 82,460 139,263 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (30,561) (26,149) Payments for Purchases of Businesses, net of Cash Acquired (4,861) (1,493) --------- --------- NET CASH USED IN INVESTING ACTIVITIES (35,422) (27,642) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds From Exercise of Stock Options 261 2,140 Proceeds From Revolving Credit Facility 10,000 - Repayments Under Revolving Credit Facility (65,000) (60,000) --------- --------- NET CASH USED IN FINANCING ACTIVITIES (54,739) (57,860) --------- --------- Effects of Exchange Rate Differences (339) (29) --------- --------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (8,040) 53,732 Cash and Cash Equivalents at Beginning of Period 146,227 93,471 --------- --------- Cash and Cash Equivalents at End of Period $138,187 $147,203 ========= ========= SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid During the Period $4,920 $5,562 Income Tax Payments During the Period, Net 4,760 22,044 CONTACT: DeVry Inc. Joan Bates (Investors), 630-574-1949 or Dresner Corporate Services Kyra Kyles (Media), 312-780-7208 -----END PRIVACY-ENHANCED MESSAGE-----