EX-99.1 2 a5000395ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 DeVry Inc. Reports Fiscal 2006 First-Quarter Results, September Enrollment at Ross University and Keller Graduate School of Management; First Quarter Results Include Stock Option Expense OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Oct. 20, 2005--DeVry Inc. (NYSE:DV), an international higher education company, today reported financial results for the fiscal 2006 first quarter and September 2005 enrollment at Ross University and Keller Graduate School of Management (KGSM). Revenues for the first quarter were $196.8 million, compared with $188.4 million for the same quarter one year ago. Net income for the quarter totaled $4.7 million, or $0.07 per fully diluted share, which includes the expense of share-based payments, compared with $2.1 million, or $0.03 per fully diluted share on a restated basis, for the same period last year. Effective with the first quarter of fiscal 2006, the company adopted Statement of Financial Accounting Standards No. 123R, "Share-Based Payment," using the modified retrospective approach. Accordingly, the fiscal 2006 and restated 2005 first quarters include recognition of stock option expense. The fiscal 2006 first quarter after-tax effect of stock option expense is approximately $1.0 million. For the restated fiscal 2005 first quarter, the effect is approximately $2.2 million after-tax. "We are pleased to report an increase in both revenue and earnings over the prior year, and we expect improvement throughout fiscal 2006," said Ronald L. Taylor, DeVry's chief executive officer. "We are focused on solid execution of our growth plan." The number of new students enrolled at Ross University for the September 2005 term increased 40.6 percent to 575, compared to 409 in the 2004 September term. Total Ross students in the September term were 3,227, or 3.8 percent lower than the prior year. Last year, Ross University raised its admission criteria and increased its academic progress requirements, which negatively affected new student recruiting, student retention and total enrollments during fiscal 2005. For the September 2005 session, the total number of coursetakers at KGSM increased 5 percent to 12,732 compared to 12,129 in the prior year's session. Fall 2005 enrollment results for DeVry University and the November session at KGSM will be reported December 5. During the first quarter of fiscal 2006, enrollments at Becker Professional Review, which includes Becker CPA Review and Stalla Review for the CFA, increased over the prior year. The professional and training segment posted record revenue of approximately $12.3 million for the 2006 fiscal first quarter, compared to $10.7 million last year. "We are pleased with the progress we are making at Ross University and in each of our other operations," said Daniel Hamburger, DeVry's president and chief operating officer. "Actions taken in fiscal 2005 to improve marketing and recruiting processes and to reduce expenses appear to be having a favorable impact on fiscal 2006 results." DeVry Inc. will hold a conference call to discuss its fiscal 2006 first-quarter results on October 20, 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 800-218-4007 (domestic) or 303-262-2139 (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 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 November 2, 2005. To access the replay, dial 800-405-2236 (domestic) or 303-590-3000 (international), passcode 11040072. To access the webcast replay, please 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 degree programs. 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 and chartered financial analyst exams. DeVry Inc. is based in Oakbrook Terrace, Ill. For more information about the company, visit http://www.devryinc.com. Certain statements contained in this release, including those that affect 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. 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 in the Company's most recent Annual Report on Form 10-K for the year ending June 30, 2005 filed with the SEC September 13, 2005, especially in the section entitled "Forward Looking Statements" at the beginning of Part I and in the subsections of "Item 1 - Business" entitled "Competition," "Student Recruiting," "Accreditation and Approvals," "Tuition and Fees," "Financial Aid and Financing Student Education," and "Career Services and Faculty." First Quarter Ended September 30: --------------------------------- Fiscal Year Fiscal Year 2006 2005 Restated (1) -------------------------------- Revenues $196,780,000 $188,396,000 Income Before Cumulative Effect of Change in Accounting 4,732,000 330,000 Net Income 4,732,000 2,140,000 Earnings Per Common Share Basic: Income Before Cumulative Effect of Change in Accounting $0.07 $0.01 Net Income $0.07 $0.03 Diluted: Income Before Cumulative Effect of Change in Accounting $0.07 $0.01 Net Income $0.07 $0.03 Number of Common Shares Basic 70,506,000 70,349,000 Diluted 70,664,000 70,677,000 September 30: Actual Shares Outstanding 70,527,000 70,365,000 (1) Restated for the adoption of SFAS #123R using the modified retrospective approach. DEVRY INC. CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars in Thousands) (Unaudited) PRELIMINARY September 30, June 30, September 30, 2005 2005 2004 ------------- --------- ------------- Restated Restated ASSETS ------ Current Assets -------------- Cash and Cash Equivalents $119,829 $161,823 $115,071 Restricted Cash 26,217 13,935 27,702 Accounts Receivable, Net 83,585 39,226 64,298 Inventories 95 164 1,376 Deferred Income Taxes 17,142 17,142 6,454 Prepaid Expenses and Other 16,478 10,048 12,831 ------------- --------- ------------- Total Current Assets 263,346 242,338 227,732 ------------- --------- ------------- Land, Buildings and Equipment ----------------------------- Land 68,015 68,013 64,256 Buildings 222,479 212,428 204,378 Equipment 237,620 234,201 227,110 Construction In Progress 4,105 15,813 7,513 ------------- --------- ------------- 532,219 530,455 503,257 Accumulated Depreciation (249,966) (243,688) (220,343) ------------- --------- ------------- Land, Buildings and Equipment, Net 282,253 286,767 282,914 ------------- --------- ------------- Other Assets ------------ Intangible Assets, Net 71,118 73,699 82,709 Goodwill 291,308 289,308 284,397 Perkins Program Fund, Net 13,290 13,290 12,472 Other Assets 4,481 4,633 5,457 ------------- --------- ------------- Total Other Assets 380,197 380,930 385,035 ------------- --------- ------------- TOTAL ASSETS $925,796 $910,035 $895,681 ============= ========= ============= DEVRY INC. CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars in Thousands) (Unaudited) PRELIMINARY September 30, June 30, September 30, 2005 2005 2004 ------------- --------- ------------- Restated Restated LIABILITIES ----------- Current Liabilities ------------------- Current Maturities of Revolving Loan $50,000 $50,000 $ - Accounts Payable 24,154 30,681 17,601 Accrued Salaries, Wages & Benefits 30,784 34,071 33,316 Accrued Expenses 31,738 34,462 28,062 Advance Tuition Payments 15,664 14,685 16,981 Deferred Tuition Revenue 95,446 22,823 82,311 ------------- --------- ------------- Total Current Liabilities 247,786 186,722 178,271 ------------- --------- ------------- Other Liabilities ----------------- Revolving Loan - 50,000 75,000 Senior Debt 125,000 125,000 125,000 Deferred Income Taxes 11,327 12,512 10,096 Accrued Post-employment Agreements 6,352 6,352 4,267 Deferred Rent and Other 12,613 12,629 13,016 ------------- --------- ------------- Total Other Liabilities 155,292 206,493 227,379 ------------- --------- ------------- TOTAL LIABILITIES 403,078 393,215 405,650 ------------- --------- ------------- SHAREHOLDERS' EQUITY -------------------- Common Stock, $0.01 par value, 200,000,000 Shares Authorized, 70,527,000, 70,475,000 and 70,365,000 Shares issued and outstanding at September 30, 2005, June 30, 2005 and September 30, 2004, respectively. 706 706 704 Additional Paid-in Capital 117,609 116,108 105,756 Retained Earnings 404,472 399,740 383,071 Accumulated Other Comprehensive Income (Loss) (69) 266 500 ------------- --------- ------------- TOTAL SHAREHOLDERS' EQUITY 522,718 516,820 490,031 ------------- --------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $925,796 $910,035 $895,681 ============= ========= ============= DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands Except for Per Share Amounts) (Unaudited) PRELIMINARY For The Quarter Ended September 30, ------------------- 2005 2004 --------- --------- Restated REVENUES: Tuition $183,053 $177,984 Other Educational 13,308 10,352 Interest 419 60 --------- --------- Total Revenues 196,780 188,396 --------- --------- COSTS AND EXPENSES: Cost of Educational Services 111,709 110,265 Student Services and Administrative Expense 75,890 75,267 Interest Expense 2,655 1,991 --------- --------- Total Costs and Expenses 190,254 187,523 --------- --------- Income Before Income Taxes and Cumulative Effect of Change in Accounting 6,526 873 Income Tax Provision 1,794 543 --------- --------- Income Before Cumulative Effect of Change in Accounting 4,732 330 Cumulative Effect of Change in Accounting, Net of Tax - 1,810 --------- --------- NET INCOME $4,732 $2,140 ========= ========= EARNINGS PER COMMON SHARE Basic Income Before Cumulative Effect of Change in Accounting $0.07 $0.01 Cumulative Effect of Change in Accounting - 0.02 --------- --------- Net Income $0.07 $0.03 ========= ========= Diluted Income Before Cumulative Effect of Change in Accounting $0.07 $0.01 Cumulative Effect of Change in Accounting - 0.02 --------- --------- Net Income $0.07 $0.03 ========= ========= CONTACT: Dresner Corporate Services Sarah Komuniecki (Media), 312-780-7208 or Joan Bates (Investor), 630-574-1949