EX-99.1 2 a5318862ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 DeVry Inc. Reports Fiscal 2007 Second-Quarter Results Earnings Increased 51 Percent on Record Revenues OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Jan. 25, 2007--DeVry Inc. (NYSE: DV), an international higher education company, reported today financial results for the fiscal 2007 second quarter and the six-month period ended December 31, 2006. Revenues for the second quarter of fiscal 2007 increased 13.2 percent to $237.5 million, compared to $209.9 million for the same quarter one year ago. For the six-month period of fiscal 2007, revenues were up 12.7 percent to $458.2 million compared to $406.6 million last year. Net income increased 51.4 percent for the quarter to $16.4 million, or $0.23 per fully diluted share, compared to $10.8 million, or $0.15 per fully diluted share, for the same period last year. For the first half of fiscal 2007, net income increased 140 percent to $37.3 million, or $0.52 per fully diluted share, compared to $15.6 million, or $0.22 per fully diluted share, for the first half of fiscal 2006. Net income in the first half 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. During the quarter, the company announced the adoption of a dividend and stock repurchase program. The first dividend of $0.05 per share was paid on January 12 to common stockholders of record as of December 20, 2006. DeVry's board of directors stated its intent to declare dividends on a semi-annual basis, resulting in an annual dividend rate of $0.10 per share. The stock repurchase program allows the company to buy back up to $35 million of its common stock within the next two years. DeVry further reduced its outstanding debt, ending the fiscal 2007 second quarter with $50 million of debt and a strong cash position, as illustrated in the accompanying Chart 1. Also, as part of its overall financing strategy, DeVry recently entered into an amended credit agreement that will result in more favorable interest rates and borrowing terms. "We posted solid revenue increases and delivered improved bottom line results for the second quarter and first half of fiscal 2007," said Daniel Hamburger, DeVry's president and chief executive officer. "In addition, we continued to strengthen our financial position and have taken actions with our overall financial strategy to drive shareholder value." DeVry University opened its second location in Tampa, Fla., in January and announced it will open a new location in Memphis, Tenn., this March, bringing its total number of locations to 84. The Memphis facility will offer both bachelor's and master's degree programs. As previously announced in December 2006, DeVry University achieved its sixth consecutive period of positive enrollment growth. New students increased 11.9 percent and total students increased 4.9 percent. DeVry University was once again cited by Diverse Issues in Higher Education as a top producer of minority graduates for select programs. Historical enrollment information and minority graduate rankings are provided as supplemental information to this press release as Charts 2 and 3, respectively. The company recently announced that Chamberlain College of Nursing has received approval to establish a new campus in Columbus, Ohio, with classes scheduled to begin in March 2007. Chamberlain will be co-located with the existing DeVry University campus. As a result of continued demand for highly-skilled accounting professionals, Becker Professional Review once again experienced strong results in the second quarter, with revenue increasing 49.5 percent over last year. Hamburger added, "We are pleased with our continued progress on our five-year strategic plan and the initiatives undertaken to drive future enrollment, revenue and earnings growth." DeVry Inc. will hold a conference call to discuss its fiscal 2007 second-quarter results on January 25, 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 800-706-7741 (domestic) or 617-614-3471 (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=1425754. (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 February 8, 2007. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 63995954. 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=1425754. (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.) 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) Second Quarter Ended December 31: 2006 2005 -------------------- Revenues $237,536 $209,869 Net Income $16,397 $10,828 Earnings per Share (diluted) $0.23 $0.15 Weighted average number of common shares (diluted) 71,282 70,847 First Six Months Ended December 31: 2006 2005 -------------------- Revenues $458,189 $406,649 Net Income $37,317 $15,560 Earnings per Share (diluted) $0.52 $0.22 Weighted average number of common shares (diluted) 71,162 70,702 The following table illustrates the effects of the gain on the sale of the West Hills facility 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 first six-month's earnings (in thousands, except per share data): First Six Months Ended December 31: 2006 2005 -------------------- Net Income $37,317 $15,560 Earnings per Share (diluted) $0.52 $0.22 Gain on Facility Sale (net of tax) $11,840 $273 Earnings per Share (diluted) $0.16 -- Net Income Excluding the Gain on Facility Sale $25,477 $15,287 Earnings per Share (diluted) $0.36 $0.22 Supplemental Company Data: Chart 1 - Cash and Funded Debt (See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5318833) Chart 2 - Historical DeVry University Undergraduate Enrollments (See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5318833) Chart 3 - Top 100 Degree Producers Computer and Information Sciences and Support Services - Total Minority Baccalaureates 1. DeVry University - California 2. American Intercontinental University 3. DeVry University - Illinois 4. University of California - Irvine 5. University of Maryland - University College 6. DeVry University - Georgia 7. Strayer University - Washington Campus 8. University of Maryland - Baltimore Co. 9. University of Phoenix - Online 10. New Jersey Institute of Technology Source: Diverse Issues in Higher Education, June 2006 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) (Unaudited) PRELIMINARY December 31, June 30, December 31, 2006 2006 2005 ------------ --------- ------------ ASSETS ------ Current Assets -------------------------------- Cash and Cash Equivalents $171,346 $130,583 $143,765 Restricted Cash 24,091 20,632 38,997 Accounts Receivable, Net 60,350 46,567 85,467 Inventories 118 133 85 Deferred Income Taxes, Net 15,344 13,700 17,142 Prepaid Expenses and Other 21,255 16,458 15,843 ------------ --------- ------------ Total Current Assets 292,504 228,073 301,299 ------------ --------- ------------ Land, Buildings and Equipment --------------------------------- Land 61,789 67,756 67,633 Buildings 212,171 222,059 219,143 Equipment 252,269 245,360 239,442 Construction In Progress 12,880 9,057 5,508 ------------ --------- ------------ 539,109 544,232 531,726 Accumulated Depreciation and Amortization (282,458) (271,306) (254,033) ------------ --------- ------------ Land, Buildings and Equipment, Net 256,651 272,926 277,693 ------------ --------- ------------ Other Assets -------------------------------- Intangible Assets, Net 60,150 63,762 68,538 Goodwill 291,113 291,113 291,306 Perkins Program Fund, Net 13,450 13,450 13,290 Other Assets 5,933 3,158 4,328 ------------ --------- ------------ Total Other Assets 370,646 371,483 377,462 ------------ --------- ------------ TOTAL ASSETS $919,801 $872,482 $956,454 ============ ========= ============ DEVRY INC. CONSOLIDATED BALANCE SHEETS ---------------------------------------------------------------------- (Dollars in Thousands) (Unaudited) PRELIMINARY December 31, June 30, December 31, 2006 2006 2005 ------------ --------- ------------ LIABILITIES ----------- Current Liabilities -------------------------------- Current Portion of Debt $50,000 $60,000 $35,000 Accounts Payable 32,975 39,677 29,983 Accrued Salaries, Wages and Benefits 43,642 35,600 33,794 Accrued Expenses 29,059 27,639 26,414 Advance Tuition Payments 7,367 16,584 28,875 Deferred Tuition Revenue 119,950 31,769 110,413 ------------ --------- ------------ Total Current Liabilities 282,993 211,269 264,479 ------------ --------- ------------ Other Liabilities -------------------------------- Senior Notes - 65,000 125,000 Deferred Income Taxes, Net 12,407 12,564 16,078 Accrued Postemployment Agreements 5,341 5,594 6,392 Deferred Rent and Other 14,698 13,448 12,695 ------------ --------- ------------ Total Other Liabilities 32,446 96,606 160,165 ------------ --------- ------------ TOTAL LIABILITIES 315,439 307,875 424,644 ------------ --------- ------------ SHAREHOLDERS' EQUITY ---------------------------------- Common Stock, $0.01 par value, 200,000,000 Shares Authorized, 70,907,000, 70,757,000 and 70,564,000 Shares issued and outstanding at December 31, 2006, June 30, 2006 and December 31, 2005, Respectively. 710 708 706 Additional Paid-in Capital 129,928 124,550 119,154 Retained Earnings 475,665 441,893 414,400 Accumulated Other Comprehensive Loss (50) (424) (73) Treasury Stock, at Cost (86,490, 97,770, 109,767 Shares, Respectively) (1,891) (2,120) (2,377) ------------ --------- ------------ TOTAL SHAREHOLDERS' EQUITY 604,362 564,607 531,810 ------------ --------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $919,801 $872,482 $956,454 ============ ========= ============ DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME ---------------------------------------------------------------------- (Dollars in Thousands Except for Per Share Amounts) (Unaudited) PRELIMINARY For The Quarter For The Six Months Ended December 31, Ended December 31, --------------------- --------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- REVENUES: Tuition $217,076 $196,032 $419,709 $379,085 Other Educational 18,528 13,398 35,110 26,706 Interest 1,932 439 3,370 858 ---------- ---------- ---------- ---------- Total Revenues 237,536 209,869 458,189 406,649 ---------- ---------- ---------- ---------- COSTS AND EXPENSES: Cost of Educational Services 120,580 111,468 240,884 223,177 Gain on Sale of Assets - (451) (19,855) (451) Student Services and Administrative Expense 93,184 81,887 179,036 157,777 Interest Expense 1,774 2,606 3,889 5,261 ---------- ---------- ---------- ---------- Total Costs and Expenses 215,538 195,510 403,954 385,764 ---------- ---------- ---------- ---------- Income Before Income Taxes 21,998 14,359 54,235 20,885 Income Tax Provision 5,601 3,531 16,918 5,325 ---------- ---------- ---------- ---------- NET INCOME $16,397 $10,828 $37,317 $15,560 ========== ========== ========== ========== EARNINGS PER COMMON SHARE Basic $0.23 $0.15 $0.53 $0.22 ========== ========== ========== ========== Diluted $0.23 $0.15 $0.52 $0.22 ========== ========== ========== ========== Cash Dividend Declared per Common Share $0.05 $- $0.05 $- ========== ========== ========== ========== DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands) (Unaudited) PRELIMINARY For The Six Months Ended December 31, ------------------------- 2006 2005 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $37,317 $15,560 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Stock-Based Compensation Charge 3,113 2,239 Depreciation 17,365 18,628 Amortization 4,585 5,402 Provision for Refunds and Uncollectible Accounts 26,440 23,578 Deferred Income Taxes (1,848) 56 Gain on Disposals of Land, Buildings and Equipment (19,677) (479) Changes in Assets and Liabilities, Net of Effects from Acquisition of Business: Restricted Cash (3,462) (25,059) Accounts Receivable (40,241) (69,800) Inventories 9 87 Prepaid Expenses And Other (7,531) (5,629) Accounts Payable (6,699) (727) Accrued Salaries, Wages, Expenses and Benefits 5,950 (8,382) Advance Tuition Payments (9,186) 14,152 Deferred Tuition Revenue 88,181 87,590 ------------ ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 94,316 57,216 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (16,202) (10,848) Net Proceeds from Sale of Land and Building 34,778 1,798 Payment for Purchase of Business, Net of Cash Acquired - (1,998) ------------ ------------ NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 18,576 (11,048) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds From Exercise of Stock Options 2,098 1,040 Proceeds From Stock Issued Under Employee Stock Purchase Plan 398 - Excess Tax Benefit from Stock-Based Payments 47 - Proceeds From Revolving Credit Facility 40,000 - Repayments Under Senior Notes (115,000) - Repayments Under Revolving Credit Facility - (65,000) ------------ ------------ NET CASH USED IN FINANCING ACTIVITIES (72,457) (63,960) ------------ ------------ Effects of Exchange Rate Differences 328 (266) ------------ ------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 40,763 (18,058) Cash and Cash Equivalents at Beginning of Period 130,583 161,823 ------------ ------------ Cash and Cash Equivalents at End of Period $171,346 $143,765 ============ ============ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash Paid During the Period For: Interest $4,014 $4,512 Income Taxes, net 17,219 14,447 Non-cash Financing Activity: Declaration of Cash Dividends to be Paid 3,545 - CONTACT: DeVry Inc. Investor Contact: Joan Bates jbates@devry.com 630-574-1949 or Media Contact: David Gutierrez Dresner Corporate Services dgutierrez@dresnerco.com 312-780-7204