EX-99.1 2 a6084355ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

DeVry Inc. Announces Record First-Quarter Results

OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--October 27, 2009--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2010 first-quarter ended September 30, 2009. DeVry also reported enrollment results at Ross University and Fanor, and graduate coursetakers at DeVry University. DeVry’s continued execution of its growth and diversification strategy and its focus on academic quality produced the following financial results:

Three Months Ended September 30, 2009:

  • Revenues increased 42 percent to a record $431 million.
  • Operating income increased 70 percent to $79.4 million.
  • Net income increased 57 percent to $54.7 million.
  • Diluted earnings per share increased 58 percent to $0.76.

“Our financial results this quarter were driven largely by exceptional revenue growth,” said Daniel Hamburger, DeVry’s president and chief executive officer. “Our institutions continue to experience strong enrollment and student retention, as evidenced by our results at Keller, Ross and Fanor. These financial results provide the resources for us to continue to make investments that enhance academic quality, improve student services, and expand access to education.”

Business Highlights

Business, Technology, and Management Segment

DeVry University

For the September 2009 session, total graduate coursetakers at DeVry University including its Keller Graduate School of Management, increased 15.2 percent to a record 20,496 versus 17,799 for the same period in 2008. DeVry University’s fall 2009 undergraduate enrollment and November session graduate enrollment will be reported on Dec. 8, 2009.

DeVry University launched a new campaign to increase awareness of the re-organization of its academic degree programs into five distinct colleges. The multimedia campaign began running in September and will continue to run throughout the rest of the fiscal year. Consistent with its real estate optimization strategy, DeVry University announced plans to co-locate its Jacksonville, Fla., campus with Chamberlain College of Nursing by the end of the second quarter.

Medical and Healthcare Segment

Ross University

In the 2009 September term, new students increased 9.5 percent to 666, compared to 608 students last year. Total students increased 9.1 percent to 4,601 compared to 4,219 students in the same term last year. Ross University continues to make investments in its facilities, clinical affiliations, and student services to respond to continued strong demand for medical and veterinary medical education.

Chamberlain College of Nursing

In an articulation agreement with Keller Graduate School of Management, Chamberlain will launch a program where graduates of Chamberlain’s Master of Science in Nursing (MSN) program will receive course credits toward obtaining a Master of Business Administration (MBA) degree from Keller.

Chamberlain also announced plans to co-locate its campus with DeVry University in Crystal City, Va., and Chicago, and is targeting openings of those locations in summer 2010, pending approvals.

Apollo College/Western Career College (U.S. Education)

Apollo College and Western Career College launched their first ever online degree programs this September. Apollo College launched two online bachelor’s degree completion programs, and Western Career College launched four online associate degree programs. In addition, Apollo College opened its new campus in Reno, Nev., with a registered nursing degree program.

Professional Education Segment

Becker Professional Education

The Professional Education segment continued to be affected negatively by the impact of the soft economy and slowdown in hiring within the accounting and finance professions. Although conditions are not expected to materially improve throughout 2010, Becker Professional Education remains well-positioned for long-term growth. Becker’s CPA line of products continues to be a valued resource for key accounting firms, and its Stalla Review for CFA® Exams division now has affiliations with 15 of the top 20 CFA societies around the world.

Other Educational Services Segment

Advanced Academics

During the quarter, Advanced Academics (AAI) further expanded its presence in key states, such as California, where it established its first service contract with a charter school in Sonoma. In addition, it signed contracts to provide online educational content to 10 new school districts in five states across the country.

Fanor

For the September 2009 term, new students increased 13.6 percent to 2,151, compared to 1,893 students last year. Total students increased 10.6 percent to 11,532 compared to 10,424 students in the same term last year. Fanor continues to expand its curriculum and has received approval to launch a psychology degree program at its Fortaleza campus beginning next semester.

Balance Sheet/Cash Flow

For the first quarter, DeVry generated $177.2 million of operating cash flow, driven by the continuation of strong operating results and working capital management. As of September 30, 2009, cash, marketable securities and investment balances totaled $340.5 million and outstanding borrowings were $104.8 million.

Share Repurchase Plan

During the quarter, DeVry repurchased approximately 235,000 shares of its common stock at a cost of approximately $11.7 million. As of Sept. 30, 2009, DeVry had repurchased more than $45 million of its $50 million program at an average cost of $48.12 per share, and expects to complete the current share repurchase program more than a year in advance of the authorization period.

Conclusion

“Fiscal 2010 is off to a solid start and we are confident that this will be another strong year for us,” said Hamburger. “DeVry will continue to focus on the development of quality programs and services for our students and on opportunities to leverage synergies across our institutions for future growth.”

Conference Call and Webcast Information

DeVry will host a conference call on Oct. 27, 2009, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2010 first-quarter results. 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 (866) 383-8003 (domestic) or (617) 597-5330 (international). DeVry 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=2064148. (Because of its length, this URL may need to copied and 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.

DeVry will archive a telephone replay of the call until Nov. 10, 2009. To access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode: 64497249. To access the Webcast replay, please visit DeVry’s Web site.

About DeVry Inc.

DeVry Inc. (NYSE: DV, member S&P 500 Index) is the parent organization of DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing, Apollo College, Western Career College, Becker Professional Education, and Fanor. 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. Advanced Academics provides education to middle and high school students and school districts in the U.S. Ross University offers doctoral degree programs through its schools of Medicine and Veterinary Medicine. Chamberlain College of Nursing offers associate, bachelor's, and master’s degree programs in nursing. Apollo College and Western Career College prepare students for careers in healthcare through certificate, associate and bachelor’s degree programs. Becker Professional Education is a global leader in professional education serving the accounting, finance and project management professions. Based in Brazil, Fanor offers degree programs in business management, law and engineering through its four schools: Faculdades Nordeste, Faculdade Ruy Barbosa, Faculdade FTE and ÁREA1. For more information, visit http://www.devryinc.com.

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, 2009 and filed with the Securities and Exchange Commission on August 26, 2009.

Selected Operating Data (in thousands, except per share data)

    First Quarter
FY 2010     FY 2009     Change
Revenues $431,110 $303,717 +41.9 %
Operating Income $79,385 $46,812 +69.6 %
Net Income $54,727 $34,830 +57.1 %
Earnings per Share (diluted) $0.76 $0.48 +58.3 %
Number of common shares (diluted) 72,141 72,560 -0.6 %

September 2009 Enrollment Results

    September 2009     September 2008     Change
DeVry University, including

Keller Graduate School of Management

Graduate coursetakers (1)(2) 20,496 17,799 +15.2 %
 
Ross University
New students 666 608 +9.5 %
Total students 4,601 4,219 +9.1 %
 
Fanor
New students 2,151 1,893 +13.6 %
Total students 11,532 10,424 +10.6 %

Graduate Employment Statistics

   

Period

    Percent Employed 3     Average Salary
DeVry University (Undergraduate)(3) Jun 08-Oct 08-Feb 09 88.8 % $45,364

1 Includes both onsite and online students

2 The term “coursetaker” refers to the number of courses taken by a student. Thus one student taking two courses equals two coursetakers.

3 Three-term average; includes graduates of associate and bachelor’s degree programs

Chart 1: DeVry Inc. 2009 and 2010 Announcements & Events

     
November 11, 2009 DeVry Inc. Annual Shareholder’s Meeting
November 16-17, 2009 DeVry Education Day; Phoenix, AZ
December 8, 2009 Most recent enrollment results; press release, no conference call
DeVry University (Undergraduate and Graduate)

Chamberlain College of Nursing

Apollo College and Western Career College (U.S. Education)

January 26, 2010 Fiscal 2010 Second Quarter Earnings
April 22, 2010 Fiscal 2010 Third Quarter Earnings and Spring Enrollment
DeVry University (Undergraduate and Graduate)

Chamberlain College of Nursing

Ross University

Apollo College and Western Career College (U.S. Education)

Fanor

August 12, 2010 Fiscal 2010 Year-End Earnings and Summer Enrollment
DeVry University, (Undergraduate and Graduate)

Chamberlain College of Nursing

Ross University

Apollo College and Western Career College (U.S. Education)

October 26, 2010 Fiscal 2011 First Quarter Earnings and Enrollment
DeVry University (graduate)

Ross University

Fanor

December 9, 2010 Most recent enrollment results; press release, no conference call
DeVry University (Undergraduate and Graduate)

Chamberlain College of Nursing

Apollo College and Western Career College (U.S. Education)

DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
     
September 30, June 30, September 30,
2009 2009 2008
 

ASSETS

 

Current Assets

 
Cash and Cash Equivalents $ 279,243 $ 165,202 $ 183,059
Marketable Securities and Investments 61,253 60,174 2,136
Restricted Cash 10,907 5,339 8,564
Accounts Receivable, Net 156,973 104,413 154,654
Deferred Income Taxes, Net 20,223 21,562 15,635
Prepaid Expenses and Other 32,602   28,756   28,279  
 
Total Current Assets 561,201   385,446   392,327  
 

Land, Buildings and Equipment

 
Land 53,973 53,694 51,193
Buildings 255,645 250,542 231,812
Equipment 339,793 328,637 288,731
Construction In Progress 14,124   10,587   5,536  
 
663,535 643,460 577,272
 
Accumulated Depreciation and Amortization (340,158 ) (335,889 ) (316,624 )
 
Land, Buildings and Equipment, Net 323,377   307,571   260,648  
 

Other Assets

 
Intangible Assets, Net 201,328 203,195 140,632
Goodwill 514,448 512,568 523,395
Perkins Program Fund, Net 13,450 13,450 13,450
Investments - - 57,128
Other Assets 14,674   12,069   11,176  
 
Total Other Assets 743,900   741,282   745,781  
 
TOTAL ASSETS $ 1,628,478   $ 1,434,299   $ 1,398,756  
DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
     
September 30, June 30, September 30,
2009 2009 2008
 

LIABILITIES

 

Current Liabilities

 
Current Portion of Debt $ 104,841 $ 104,811 $ 145,876
Accounts Payable 86,642 71,564 81,153
Accrued Salaries, Wages and Benefits 56,726 74,174 43,786
Accrued Expenses 63,440 39,162 42,966
Advance Tuition Payments 26,661 27,642 19,964
Deferred Tuition Revenue 217,874   74,664   173,953  
 
Total Current Liabilities 556,184   392,017   507,698  
 

Non-Current Liabilities

 
Revolving Loan - 20,000 20,000
Deferred Income Taxes, Net 51,366 51,895 33,526
Deferred Rent and Other 38,909   40,257   29,342  
 
Total Non-current Liabilities 90,275   112,152   82,868  
 
TOTAL LIABILITIES 646,459   504,169   590,566  
 
NON-CONTROLLING INTEREST 3,739 3,188 -
 

SHAREHOLDERS' EQUITY

 
Common Stock, $0.01 par value, 200,000,000 Shares Authorized;
71,067,000, 71,233,000 and 71,484,000 Shares issued
and outstanding at September 30, 2009, June 30, 2009
and September 30, 2008, respectively. 729 729 725
Additional Paid-in Capital 201,935 197,096 174,236
Retained Earnings 845,686 791,677 672,331
Accumulated Other Comprehensive Income (Loss) 11,131 7,157 (2,557 )
Treasury Stock, at Cost (1,894,000, 1,663,000 and 969,000
Shares, Respectively) (81,201 ) (69,717 ) (36,545 )
 
TOTAL SHAREHOLDERS' EQUITY 978,280   926,942   808,190  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,628,478   $ 1,434,299   $ 1,398,756  
DEVRY INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
   
 
For The Quarter
Ended September 30,
 
2009 2008
 
REVENUES:
Tuition $ 401,371 $ 279,127
Other Educational 29,739   24,590  
 

Total Revenues

431,110   303,717  
 
OPERATING COSTS AND EXPENSES:
Cost of Educational Services 196,483 139,613
Student Services and Administrative Expense 155,242   117,292  
 
Total Operating Costs and Expenses 351,725   256,905  
 
Operating Income 79,385 46,812
 
INTEREST AND OTHER (EXPENSE) INCOME:
Interest Income 500 2,142
Interest Expense (422 ) (353 )
Net Investment Gain 831   -  
 
Net Interest and Other (Expense) Income 909   1,789  
 
Income Before Income Taxes 80,294 48,601
 
Income Tax Provision 25,723   13,771  
 
NET INCOME 54,571 34,830
 
Add: Net Loss Attributable to Noncontrolling Interest 156   -  
 
NET INCOME ATTRIBUTABLE TO DEVRY INC. $ 54,727   $ 34,830  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic $ 0.77   $ 0.49  
Diluted $ 0.76   $ 0.48  
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
  For The Three Months
Ended September 30,
2009   2008
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $54,571 $34,830
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
 
Stock-Based Compensation Charge 3,622 3,110
Depreciation 11,993 8,825
Amortization 3,959 952
Provision for Refunds and Uncollectible Accounts 23,779 15,985
Deferred Income Taxes 581 (923 )
Loss on Disposals of Land, Buildings and Equipment 331 24
Unrealized Net Gain on Investments (831 ) -
Changes in Assets and Liabilities, Net of Effects from
Acquisitions of Businesses:
Restricted Cash (5,560 ) (4,313 )
Accounts Receivable (75,885 ) (86,442 )
Prepaid Expenses And Other (8,733 ) 5,835
Accounts Payable 15,054 9,091
Accrued Salaries, Wages, Expenses and Benefits 12,173 2,706
Advance Tuition Payments (1,058 ) (1,826 )
Deferred Tuition Revenue 143,210   108,964  
 
NET CASH PROVIDED BY OPERATING ACTIVITIES 177,206   96,818  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (26,482 ) (10,638 )
Payments for Purchases of Businesses, Net of Cash Acquired - (286,254 )
Marketable Securities Purchased (12 ) (13 )
Other (7 ) -  
 
NET CASH USED IN INVESTING ACTIVITIES (26,501 ) (296,905 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 1,148 2,078
Proceeds from Stock issued Under Employee Stock Purchase Plan 238 1,340
Repurchase of Common Stock for Treasury (11,653 ) -
Cash Dividends Paid (5,716 ) (4,282 )
Excess Tax Benefit from Stock-Based Payments 139 420
Borrowings Under Revolving Credit Facility 40,000 120,000
Repayments Under Revolving Credit Facility (60,000 ) -
Borrowings Under Collateralized Line of Credit 91 45,876
Repayments Under Collateralized Line of Credit (61 ) -  
 
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (35,814 ) 165,432  
 
Effects of Exchange Rate Differences (850 ) 515  
 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 114,041 (34,140 )
 
Cash and Cash Equivalents at Beginning of Year 165,202   217,199  
 
Cash and Cash Equivalents at End of Year $279,243   $183,059  
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid (Refunded) During the Period for:
Interest $269 $51
Income Taxes, Net 716 (6,868 )
 
Non-cash Investing Activity:
Accretion of Noncontrolling Interest Put Option 707 -
DEVRY INC.

SEGMENT INFORMATION

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
     
For The Quarter
Ended September 30,
Increase
2009 2008 (Decrease)
REVENUES:
Business, Technology and Management $ 283,506 $ 228,747 23.9 %
Medical and Healthcare 117,158 53,278 119.9 %
Professional Education 19,161 19,759 -3.0 %
Other Educational Services 11,285   1,933   483.8 %
 
Total Consolidated Revenues 431,110   303,717   41.9 %
 
OPERATING INCOME:
Business, Technology and Management 56,079 27,003 107.7 %
Medical and Healthcare 27,139 15,351 76.8 %
Professional Education 6,444 7,723 -16.6 %
Other Educational Services (6,522 ) (1,715 ) 280.3 %
Reconciling Items:
Amortization Expense (3,914 ) (916 ) 327.3 %
Depreciation and Other Corporate 159   (634 ) NM
 
Total Consolidated Operating Income 79,385 46,812 69.6 %
 
INTEREST AND OTHER (EXPENSE) INCOME:
Interest Income 500 2,142 -76.7 %
Interest Expense (422 ) (353 ) 19.5 %
Net Investment Gain 831   -   NM
 
Net Interest and Other (Expense) Income 909   1,789   -49.2 %
 
Total Consolidated Income before Income Taxes $ 80,294   $ 48,601   65.2 %
 
The following table displays the pro forma results of operations for the Medical and
Healthcare segment as if U.S. Education was a part of the Company's business for the
entire three month periods ended September 30, 2009 and 2008. This non-GAAP
disclosure of operating results is not preferable to GAAP disclosure but is shown as
a supplement to such disclosure to aid comparability between the quarters.
 
For The Quarter
Ended September 30,
 
2009 2008 Increase
 
Medical and Healthcare Revenue as Reported $117,158 $53,278 119.9 %
U.S. Education Revenue (1) -   35,907   NM
Pro forma Medical and Healthcare Revenue $117,158   $89,185   31.4 %
 
Medical and Healthcare Operating Income as Reported $27,139 $15,351 76.8 %
U.S. Education Operating Income as Adjusted (1) (2) -   5,350   NM
Pro forma Medical and Healthcare Operating Income $27,139   $20,701   31.1 %
(1) For the portion of the period not owned by DeVry. U.S. Education, which was acquired on
September 18, 2008, contributed $47.1 million of revenue growth in the first quarter ended
September 30, 2009.

 

(2) Adjusted for non-recurring acquisition related charges along with an allocation of
corporate charges in the first quarter ended September 30, 2008.

 

CONTACT:
DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 574-1949
or
Media Contact:
Larry Larsen
llarsen@sardverb.com
(312) 895-4717