EX-99.1 2 a5132465ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 DeVry Inc. Reports Fiscal 2006 Third-Quarter Results, Enrollment at DeVry University, Keller Graduate School of Management and Ross University; New Undergraduate Students Increased 16.4 Percent OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--April 25, 2006--DeVry Inc. (NYSE:DV), an international higher education company, today reported financial results for the fiscal 2006 third quarter and the nine-month period ended March 31, 2006. DeVry Inc. also announced enrollments at DeVry University, Keller Graduate School of Management and Ross University. Revenues for the third quarter of fiscal 2006 were $220.2 million, compared to $201.9 million for the same quarter one year ago. For the nine-month period of fiscal 2006, revenues were $626.9 million compared to $584.8 million last year. Net income for the quarter totaled $15.7 million, or $0.22 per fully diluted share, compared to $10.9 million, or $0.15 per fully diluted share, on a restated basis, for the same period last year. For the nine months of fiscal 2006, net income was $31.2 million, or $0.44 per share, compared to $17.7 million, or $0.25 per share, on a restated basis, for the first nine months of fiscal 2005. Net income for 2005 has been restated to include the expense of share-based payments in accordance with new accounting requirements (FAS123R). The after-tax effect of stock option expense for the fiscal 2006 third quarter was approximately $0.8 million and $1.1 million for the fiscal 2005 third quarter. "Our financial and enrollment results in the third quarter are positive signs that the company is effectively executing its strategic plan," said Ronald L. Taylor, DeVry's chief executive officer. "The technology sector is continuing to recover, and we are encouraged by the growth experienced across all of our operations. Although future enrollment periods at DeVry University may not experience the same high levels of growth in new students, we are working to continue the upward momentum we've created during the last several class starts." At DeVry University, new undergraduate student enrollment in spring 2006 increased 16.4 percent to 10,359 students, compared to 8,902 in spring 2005. Total undergraduate student enrollment in spring 2006 increased 1.2 percent to 38,523 students, compared to 38,083 students in the previous year. For the January 2006 session, the number of graduate coursetakers at Keller Graduate School of Management increased 9.4 percent to 13,776, compared to 12,597 coursetakers in January 2005. In the March 2006 session, graduate coursetakers increased 12.3 percent to 14,029 from 12,496 in the prior year. The total number of online undergraduate and graduate coursetakers in spring 2006 increased 46.3 percent to 28,912, compared to 19,759 last year. At Ross University, new students increased 67.5 percent to 387 in the January term, compared to 231 in the same term last year. Total students increased 4.5 percent to 3,264, compared to 3,122 last year. "In spring 2006, DeVry University experienced a year-over-year increase in total undergraduate students for the first time since spring 2002," said Daniel Hamburger, DeVry's president and chief operating officer. "Additionally, new students in technology programs increased 37.7 percent over the prior year, and new student campus enrollment increased approximately 11 percent. While we are rebuilding from a smaller enrollment base than in prior years, these results are indicative of better integration of marketing and recruiting and the introduction of new degree programs at both the associate and baccalaureate levels." DeVry Inc. will hold a conference call to discuss its fiscal 2006 third-quarter results on April 25, 2006, 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 866-510-0704 (domestic) or 617-597-5362 (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://phx.corporate-ir.net/phoenix.zhtml ?p=irol-eventDetails&c=93880&eventID=1211807. (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 May 2, 2006. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 37257149. 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=1211807. (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.) 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 and healthcare. 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. Selected Operating Data (in thousands, except per share data) ----------------------- Third Quarter Nine Months Ended March 31: Ended March 31: FY2006 FY2005 FY2006 FY2005 Revenues $220,206 $201,930 $626,855 $584,848 Net Income 15,682 10,881 31,242 17,683 Earnings per share (diluted) $0.22 $0.15 $0.44 $0.25 Number of common shares (diluted) 70,913 70,547 70,739 70,567 Spring 2006 Enrollment Results ------------------------------ DeVry University Spring 2006 Spring 2005 % Increase New undergraduate students (onsite/online) 10,359 8,902 16.4% Total undergraduate students (onsite/online) 38,523 38,083 1.2% March 2006 March 2005 % Increase Graduate coursetakers (onsite/online) 14,029 12,496 12.3% Online coursetakers(a) 28,912 19,759 46.3% January 2006 January 2005 % Increase Graduate coursetakers (onsite/online) 13,776 12,597 9.4% Ross University New students 387 231 67.5% Total students 3,264 3,122 4.5% (a) Online coursetakers are included in the new and total undergraduate and graduate coursetaker counts. 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." DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) PRELIMINARY March 31, June 30, March 31, 2006 2005 2005 ----------- ----------- ----------- Restated Restated ASSETS ------- Current Assets -------------- Cash and Cash Equivalents $162,355 $161,823 $138,187 Restricted Cash 52,523 13,935 33,175 Accounts Receivable, Net 90,089 39,226 119,012 Inventories 104 164 160 Deferred Income Taxes 18,195 17,142 9,395 Prepaid Expenses and Other 13,154 10,048 9,974 ----------- ----------- ----------- Total Current Assets 336,420 242,338 309,903 ----------- ----------- ----------- Land, Buildings and Equipment, net ---------------------------------- Land 67,653 68,013 64,583 Buildings 219,899 212,428 205,042 Equipment 241,736 234,201 233,133 Construction In Progress 7,207 15,813 21,475 ----------- ----------- ----------- 536,495 530,455 524,233 Accumulated Depreciation (262,871) (243,688) (237,651) ----------- ----------- ----------- Land, Buildings and Equipment, Net 273,624 286,767 286,582 ----------- ----------- ----------- Other Assets ------------ Intangible Assets, Net 65,956 73,699 76,350 Goodwill 291,113 289,308 289,863 Perkins Program Fund, Net 13,290 13,290 12,847 Other Assets 4,180 4,633 4,871 ----------- ----------- ----------- Total Other Assets 374,539 380,930 383,931 ----------- ----------- ----------- TOTAL ASSETS $984,583 $910,035 $980,416 =========== =========== =========== LIABILITIES ----------- Current Liabilities ------------------- Current Maturities of Debt $50,000 $50,000 $- Accounts Payable 30,016 30,681 22,433 Accrued Salaries, Wages & Benefits 31,679 34,071 32,551 Accrued Expenses 34,118 34,462 30,002 Advance Tuition Payments 8,533 14,685 10,238 Deferred Tuition Revenue 151,413 22,823 149,729 ----------- ----------- ----------- Total Current Liabilities 305,759 186,722 244,953 ----------- ----------- ----------- Non-Current Liabilities ----------------------- Revolving Loan - 50,000 70,000 Senior Notes 95,000 125,000 125,000 Deferred Income Taxes 14,415 15,949 18,384 Accrued Post-employment Agreements 6,382 6,352 5,618 Deferred Rent and Other 12,742 12,629 12,614 ----------- ----------- ----------- Total Non-Current Liabilities 128,539 209,930 231,616 ----------- ----------- ----------- TOTAL LIABILITIES 434,298 396,652 476,569 ----------- ----------- ----------- SHAREHOLDERS' EQUITY -------------------- Common Stock, $0.01 par value, 200,000,000 Shares Authorized, 70,656,000, 70,475,000 and 70,379,000, Shares Issued and Outstanding at March 31, 2006, June 30, 2005 and March 31, 2005, Respectively. 708 706 705 Additional Paid-in Capital 119,566 113,571 104,318 Retained Earnings 430,082 398,840 398,614 Accumulated Other Comprehensive Income (71) 266 210 ----------- ----------- ----------- TOTAL SHAREHOLDERS' EQUITY 550,285 513,383 503,847 ----------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $984,583 $910,035 $980,416 =========== =========== =========== 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, ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Restated Restated REVENUES: Tuition $203,299 $190,713 $582,384 $552,824 Other Educational 15,771 11,068 42,477 31,731 Interest 1,136 149 1,994 293 ---------- ---------- ---------- ---------- Total Revenues 220,206 201,930 626,855 584,848 ---------- ---------- ---------- ---------- COSTS AND EXPENSES: Cost of Educational Services 115,483 111,014 338,209 329,968 Student Services and Administrative Expense 80,999 74,341 238,776 227,235 Interest Expense 2,490 2,309 7,751 6,391 ---------- ---------- ---------- ---------- Total Costs and Expenses 198,972 187,664 584,736 563,594 ---------- ---------- ---------- ---------- Income Before Income Taxes and Cumulative Effect of Change in Accounting 21,234 14,266 42,119 21,254 Income Tax Provision 5,552 3,385 10,877 5,381 ---------- ---------- ---------- ---------- Income Before Cumulative Effect of Change in Accounting 15,682 10,881 31,242 15,873 Cumulative Effect of Change in Accounting, Net of Tax - - - 1,810 ---------- ---------- ---------- ---------- NET INCOME $15,682 $10,881 $31,242 $17,683 ========== ========== ========== ========== EARNINGS PER COMMON SHARE Basic Income Before Cumulative Effect of Change in Accounting $0.22 $0.15 $0.44 $0.23 Cumulative Effect of Change in Accounting - - - 0.02 ---------- ---------- ---------- ---------- Net Income $0.22 $0.15 $0.44 $0.25 ========== ========== ========== ========== Diluted Income Before Cumulative Effect of Change in Accounting $0.22 $0.15 $0.44 $0.23 Cumulative Effect of Change in Accounting - - - 0.02 ---------- ---------- ---------- ---------- Net Income $0.22 $0.15 $0.44 $0.25 ========== ========== ========== ========== DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) PRELIMINARY For The Nine Months Ended March 31, --------------------- 2006 2005 ---------- ---------- Restated CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $31,242 $17,683 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Share-Based Compensation Charge 3,286 5,134 Depreciation 28,043 30,369 Amortization 8,104 11,735 Provision for Refunds and Uncollectible Accounts 39,570 31,538 Deferred Income Taxes (2,587) 1,108 (Gain) Loss on Disposals of Land, Buildings and Equipment (390) 638 Changes in Assets and Liabilities, Net of Effects from Acquisition of Business: Restricted Cash (38,649) (19,652) Accounts Receivable (90,802) (121,618) Inventories 66 3,137 Prepaid Expenses And Other (2,881) 765 Accounts Payable (460) (5,403) Accrued Salaries, Wages, Expenses and Benefits (1,716) 6,651 Advance Tuition Payments (6,126) (6,761) Deferred Tuition Revenue 128,713 126,946 ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES 95,413 82,270 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (16,283) (30,561) Net Proceeds from Sale of Land and Building 1,798 Payments for Purchases of Businesses, net of Cash Acquired (2,530) (4,861) ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES (17,015) (35,422) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds From Exercise of Stock Options 2,433 261 Excess Tax Benefit from Share-Based Payments (35) 190 Proceeds From Revolving Credit Facility 0 10,000 Repayments Under Revolving Credit Facility (80,000) (65,000) ---------- ---------- NET CASH USED IN FINANCING ACTIVITIES (77,602) (54,549) ---------- ---------- Effects of Exchange Rate Differences (264) (339) ---------- ---------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 532 (8,040) Cash and Cash Equivalents at Beginning of Period 161,823 146,227 ---------- ---------- Cash and Cash Equivalents at End of Period $162,355 $138,187 ========== ========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid During the Period $6,951 $4,920 Income Tax Payments During the Period, Net 14,861 4,760 CONTACT: DeVry Inc. Joan Bates (Investors), 630-574-1949 or Dresner Corporate Services Sarah Komuniecki (Media), 312-780-7208