EX-99.1 2 a6395822-ex991.htm EXHIBIT 99.1

Exhibit 99.1

DeVry Inc. Announces Fourth-Quarter and Full-Year Results

  • DeVry University’s total enrollments increased 22 percent driven by continued focus on academic quality
  • Chamberlain opened two new campuses in July; expects to open Houston campus in spring 2011
  • Becker, Advanced Academics and DeVry Brasil to be led by Steve Riehs beginning October 1

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--August 12, 2010--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2010 fourth-quarter and full year ended June 30, 2010. DeVry also reported enrollment results at DeVry University, including its Keller Graduate School of Management (KGSM), Chamberlain College of Nursing, Ross University, and the Carrington Colleges Group (formerly Apollo College and Western Career College). DeVry’s strong performance was driven by continued solid execution of its growth and diversification strategy and unwavering focus on academic quality and successful student outcomes.

Three Months Ended June 30

  • Revenues increased 28 percent to $506.7 million.
  • Net income increased 93 percent to $71.6 million.
  • Fully diluted earnings per share increased 94 percent to $0.99.

Twelve Months Ended June 30

  • Fiscal 2010 revenues increased 31 percent to $1,915 million.
  • Net income increased 69 percent to $279.9 million.
  • Fully diluted earnings per share increased about 70 percent to $3.87.

“Fiscal 2010 was a strong year driven by our ongoing investments in quality,” said Daniel Hamburger, DeVry’s president and chief executive officer. “These solid financial results are an outgrowth of our strong academic results and will provide the resources to support our investments in academic quality, student services and capacity growth in the future.”

Business Highlights

Business, Technology, and Management Segment

DeVry University

DeVry University continued to achieve solid undergraduate enrollment growth with new summer enrollments increasing 9.9 percent to 20,935 compared to 19,057 last year. Total student enrollments were up 22 percent to 68,290 students versus 55,979 in the prior year.

Total graduate coursetakers including Keller Graduate School of Management totaled 22,103 in May 2010, up 17.4 percent compared to the same period in 2009. In July 2010 total coursetakers increased 17.6 percent to 21,165 from the prior year.

The total number of online undergraduate and graduate coursetakers was a record 70,088 in July 2010, an increase of 24.4 percent over July 2009.

Medical and Healthcare Segment

Ross University

Ross University School of Medicine (RUSM) continues to work to address capacity issues, in Dominica and through its Freeport location. In Dominica, its efforts are focused on making investments that enhance academic quality while opening up additional capacity. At the same time, RUSM is working with the Medical Board of California (MBC) to secure final approval for the Freeport location. RUSM expects its application to be considered at the MBC’s next meeting in November.

As previously announced, RUSM is temporarily moderating new enrollment growth while these initiatives are completed. As a result, new student enrollment decreased 39.5 percent to 340 in the May 2010 term at Ross University’s medical and veterinary medical schools, while total student enrollment rose to 4,542 students, an increase of 2.1 percent over the May 2009 term. Both figures were in-line with management’s outlook for the term.

Chamberlain College of Nursing

Chamberlain's new student enrollment in summer 2010 increased 55.1 percent to 2,416 students, compared to 1,558 students in summer 2009. Total student enrollment rose 65.2 percent to 7,108 students compared with 4,302 during the same period last year.

In July 2010, Chamberlain opened two new campuses in Arlington, Va., and Chicago, which are co-locations with DeVry University. It has submitted applications for a new location in Houston to be opened in spring 2011, pending approvals.

Chamberlain will launch a Registered Nurse (RN) to Master of Science in Nursing (MSN) program beginning in fall 2010.

Carrington Colleges Group

On June 30, Apollo College and Western Career College were renamed Carrington CollegeTM and Carrington College CaliforniaTM, respectively. The new names personify the quality programs each institution is known for and help current and prospective students better understand the relationship between these schools and the programs they offer.

New student enrollment for the four month period ending July 31 at the Carrington Colleges declined 2.7 percent to 4,291 compared with 4,411 last year. Total enrollment increased 5.5 percent to 11,234 students, compared with 10,644 on July 31 last year. New student enrollments during the period were impacted by a decline in inquiry volume in advance of the name change. However, inquiries are up versus prior year since the renaming took effect.

Eight out of nine eligible Carrington College campuses qualified for Honor Roll status during a reaffirmation of accreditation by the Accrediting Council of Independent Colleges and Schools (ACICS). In October 2010, Carrington College California will open a new campus in Pomona, Calif., which is a co-location with DeVry University.

Professional Education Segment

Becker Professional Education

Becker’s revenues grew 8.9 percent during the quarter and 0.8 percent for the year in spite of the continued softness in hiring in the accounting and financial services fields. Becker continued to expand its relationships with key accounting and financial partners and remains well-positioned for long-term growth.

During the quarter, Becker made a significant investment in the largest redevelopment effort of its course materials since 2003. This was done in preparation for changes in the 2011 CPA exam.

As previously announced, John Roselli will become president of Becker effective October 1, succeeding Thomas Vucinic, who is retiring after a long and distinguished career with the organization.

Other Educational Services Segment

DeVry Brasil

During the quarter, DeVry Brasil focused on further enhancing the quality of its student programs and services in the areas of academic support, tutoring, and student finance. DeVry Brasil made significant investments in its facilities and is looking at additional facility expansion opportunities in 2011.

Advanced Academics

Advanced Academics continued to make investments in its long term growth during the quarter despite ongoing budgetary issues in many of the school districts it serves. The impact of these state cutbacks along with the ongoing investments in its academic quality led to an operating loss during the quarter. It recently signed agreements with school districts in New York, Arizona, and Texas, for programs which will be rolled out during the coming year.

New Organizational Structure

Effective October 1, Steve Riehs will become president of a new organizational structure within DeVry, which will include Advanced Academics, Becker Professional Education, DeVry Brasil and International Business Development.

Balance Sheet/Cash Flow

For fiscal 2010, DeVry generated $391.5 million of operating cash flow, primarily driven by the continuation of strong operating results. As of June 30, 2010, cash, marketable securities and investment balances totaled $323.4 million with no outstanding debt.

Share Repurchase Plan

During the fourth quarter of fiscal 2010, DeVry repurchased 321,521 shares of its common stock at a cost of approximately $19.0 million, or $59.09 per share. As of June 30, 2010, 422,021 shares of DeVry stock have been purchased as part of the current program for a total of $25.4 million at an average cost of $60.11 per share.

DeVry’s board of directors has authorized a fourth share repurchase program, which allows the company to buy back up to $50 million of its common stock through June 30, 2012. The new program will commence upon completion of the existing $50 million program.

Conclusion

“In fiscal 2011, we will continue to build upon the investments we made last year in academic quality and student services,” said Hamburger. “These investments will further enhance the strong value propositions of our schools in the years to come and help us to achieve our vision of becoming the leading global provider of career-oriented educational services.”

Conference Call and Webcast Information

DeVry will host a conference call on August 12, 2010, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2010 fourth-quarter and year-end 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 866.730.5762 (domestic) or 857.350.1586 (international). Use passcode 81100685 or say "DeVry Call". DeVry will also broadcast the conference call live via the Internet. Interested parties may access the webcast or its replay through the Investor Relations section of the company's website, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=2683569.

Please access the website 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 August 19, 2010. To access the replay, dial 888.286.8010 (domestic) or 617.801.6888 (international), passcode: 21108788.

About DeVry Inc.

DeVry's purpose is to empower its students to achieve their educational and career goals. DeVry (NYSE: DV, member S&P 500 Index) is a global provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College, Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University Schools of Medicine and Veterinary Medicine. These institutions offer a wide array of programs in business, healthcare and technology and serve students in secondary through postsecondary education as well as accounting and finance professionals. For more information, please call 630.353.3800 or 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 DeVry'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)

  Fourth Quarter
FY 2010   FY 2009   Change
Revenues $506,674 $396,239 +27.9%
Net Income $71,576 $37,032 +93.3%
Earnings per Share (diluted) $0.99 $0.51 +94.1%
Number of common shares (diluted) 72,289 72,198 +0.1%
  Fiscal Year
FY 2010   FY 2009   Change
Revenues $1,915,181 $1,461,453 +31.0%
Net Income $279,909 $165,613 +69.0%
Earnings per Share (diluted) $3.87 $2.28 +69.7%
Number of common shares (diluted) 72,267 72,516 (0.3)%

Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule

DeVry executed certain real estate transactions in fiscal year 2009, which resulted in significant lease termination charges. Also, DeVry recorded a litigation settlement reserve in fiscal year 2009. The following table illustrates the effects of the real estate transactions and litigation reserve on DeVry’s earnings. Management believes that the non-GAAP disclosure of net income and earnings per share provides investors with useful supplemental information regarding the underlying business trends and performance of DeVry’s ongoing operations and are useful for period-over-period comparisons of such operations given the discrete nature of the real estate transactions and litigation settlement reserve. DeVry uses these supplemental financial measures internally in its budgeting process. However, the non-GAAP financial measures should be viewed in addition to, and not as a substitute for, DeVry’s reported results prepared in accordance with GAAP. The following table reconciles these items to the relevant GAAP information (in thousands, except per share data):

  Fourth Quarter   Fiscal Year
FY2010   FY2009 FY2010   FY2009
Net Income $71,576 $37,032 $279,909 $165,613
Earnings per Share (diluted) $0.99 $0.51 $3.87 $2.28
Loss on Real Estate Transactions (net of tax) -- -- -- $2,543
Effect on Earnings per Share (diluted) -- -- -- $0.03
Litigation Settlement Reserve (net of tax) -- $3,131 -- $3,131
Effect on Earnings per Share (diluted) -- $0.05 -- $0.05
Net Income Excluding the Loss on Real
Estate Transactions and Litigation
Settlement Reserve (net of tax) $71,576 $40,163 $279,909 $171,287
Earnings per Share Excluding the Loss on
Real Estate Transactions and Litigation

Settlement Reserve(diluted)

$0.99

$0.56

$3.87

$2.36

 

Summer 2010 Enrollment Results

  2010   2009   % Change
DeVry University    
Undergraduate(1)
New students 20.935 19,057 +9.9%
Total students 68,290 55,979 +22.0%
 
Graduate coursetakers(1)(2)(3)
May 22,103 18,822 +17.4%
July 21,165 17,991 +17.6%
 
Online coursetakers(2)(4) - July 70,088 56,321 +24.4%
 
Chamberlain College of Nursing(1)
New students 2,416 1,558 +55.1%
Total students(5) 7,108 4,302 +65.2%
 
Ross University - May
New students 340 562 (39.5)%
Total students 4,542 4,448 +2.1%
 
The Carrington Colleges - July
New students 4,291 4,411 (2.7)%
Total students 11,234 10,644 +5.5%
 

 

Employment Statistics

     

 

Period

Percent
Employed

Average
Salary

DeVry University(5) Feb 09-Jun 09-Oct 09 88.3% $43,605
 

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 Includes Keller Graduate School of Management and other master’s programs offered at DeVry University

4 Includes all degree levels at DeVry University

5 Three-term average; includes graduates of associate and bachelor’s degree programs who were active in the job market

Chart 1: DeVry Inc. Calendar 2010-11 Announcements & Events

Oct. 26, 2010   Fiscal 2011 First Quarter Earnings and Enrollment
 
DeVry University (graduate only)

Ross University

DeVry Brasil

 
Dec. 9, 2010 Most recent enrollment results; press release, no conference call
 
DeVry University

Chamberlain College of Nursing

Carrington Colleges Group

 
Jan. 25, 2011 Fiscal 2011 Second Quarter Earnings (no enrollment)
 
Apr. 26, 2011 Fiscal 2011 Third Quarter Earnings and Spring Enrollment
 
DeVry University

Chamberlain College of Nursing

Ross University

Carrington Colleges Group

DeVry Brasil

 
Aug. 11, 2011 Fiscal 2011 Year-End Earnings and Summer Enrollment
 
DeVry University

Chamberlain College of Nursing

Ross University

Carrington Colleges Group

 
Oct. 25, 2011 Fiscal 2012 First Quarter Earnings and Enrollment
 
DeVry University (graduate only)

Ross University

DeVry Brasil

 
Dec. 6, 2011 Most recent enrollment results; press release, no conference call
 
DeVry University

Chamberlain College of Nursing

Carrington Colleges Group

 

Chart 2: Results of DeVry’s Diversification Strategy (2002-2009)

(See chart in Multimedia Gallery http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6395821&lang=en)

 
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
           
PRELIMINARY
 
June 30,
2010 2009
 
ASSETS:
 

Current Assets:

 
Cash and Cash Equivalents $ 307,702 $ 165,202
Marketable Securities and Investments 15,666 60,174
Restricted Cash 2,102 5,339
Accounts Receivable, Net 119,210 104,413
Deferred Income Taxes, Net 22,340 21,562
Prepaid Expenses and Other   32,627     28,756  
 
Total Current Assets   499,647     385,446  
 

Land, Buildings and Equipment:

 
Land 53,914 53,694
Buildings 283,044 250,542
Equipment 346,979 328,637
Construction In Progress   38,188     10,587  
 
722,125 643,460
 
Accumulated Depreciation and Amortization   (333,988 )   (335,889 )
 
Land, Buildings and Equipment, Net   388,137     307,571  
 

Other Assets:

 
Intangible Assets, Net 194,195 203,195
Goodwill 514,864 512,568
Perkins Program Fund, Net 13,450 13,450
Other Assets   17,533     12,069  
 
Total Other Assets   740,042     741,282  
 
TOTAL ASSETS $ 1,627,826   $ 1,434,299  
 
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
             
PRELIMINARY
 
June 30,
2010 2009
 
LIABILITIES:
 

Current Liabilities:

 
Current Portion of Debt $ - $ 104,811
Accounts Payable 90,364 71,564
Accrued Salaries, Wages and Benefits 92,368 74,174
Accrued Expenses 53,565 39,162
Advance Tuition Payments 20,930 27,642
Deferred Tuition Revenue   86,627     74,664  
 
Total Current Liabilities   343,854     392,017  
 

Non-Current Liabilities

 
Revolving Loan - 20,000
Deferred Income Taxes, Net 43,368 51,895
Deferred Rent and Other   56,216     40,257  
 
Total Non-Current Liabilities   99,584     112,152  
 
TOTAL LIABILITIES   443,438     504,169  
 
NON-CONTROLLING INTEREST 5,007 3,188
 
SHAREHOLDERS' EQUITY:
 
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
71,030,000 and 71,233,000 Shares Outstanding
at June 30, 2010 and 2009, Respectively 734 729
Additional Paid-in Capital 224,209 197,096
Retained Earnings 1,055,591 791,677
Accumulated Other Comprehensive Income 9,896 7,157
Treasury Stock, at Cost (2,394,000 and 1,663,000 Shares, Respectively)   (111,049 )   (69,717 )
 
TOTAL SHAREHOLDERS' EQUITY   1,179,381     926,942  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,627,826   $ 1,434,299  
 
DEVRY INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except for Per Share Amounts)
             
PRELIMINARY
 
 
For The Quarter For The Year
Ended June 30, Ended June 30,
 
2010 2009 2010 2009 2008
 
REVENUES:
Tuition $ 477,323 $ 373,125 $ 1,795,814 $ 1,354,925 $ 1,004,029
Other Educational   29,351     23,114     119,367     106,528     87,804  
 
Total Revenues   506,674     396,239     1,915,181     1,461,453     1,091,833  
 
OPERATING COSTS AND EXPENSES:
Cost of Educational Services 215,341 184,752 826,089 669,673 503,133
Loss on Real Estate Transactions - - - 3,977 3,743
Litigation Settlement Reserve - 4,900 - 4,900 -
Student Services and Administrative Expense   190,765     152,893     678,190     548,070     422,622  
 
Total Operating Costs and Expenses   406,106     342,545     1,504,279     1,226,620     929,498  
 
Operating Income 100,568 53,694 410,902 234,833 162,335
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 530 623 2,080 5,251 10,463
Interest Expense (332 ) (762 ) (1,585 ) (2,775 ) (522 )
Net Investment Gain   -     791     1,225     43     -  
 
Net Interest and Other Income (Expense)   198     652     1,720     2,519     9,941  
 
Income Before Income Taxes 100,766 54,346 412,622 237,352 172,276
 
Income Tax Provision   28,864     17,275     132,639     71,700     46,744  
 
NET INCOME 71,902 37,071 279,983 165,652 125,532
 
Net Income Attributable to Noncontrolling Interest   (326 )   (39 )   (74 )   (39 )   -  
 
NET INCOME ATTRIBUTABLE TO DEVRY INC. $ 71,576   $ 37,032   $ 279,909   $ 165,613   $ 125,532  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic $ 1.00   $ 0.52   $ 3.92   $ 2.32   $ 1.76  
Diluted $ 0.99   $ 0.51   $ 3.87   $ 2.28   $ 1.73  
 
Cash Dividend Declared per Common Share $ 0.10   $ 0.08   $ 0.20   $ 0.16   $ 0.12  
 
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
         
PRELIMINARY
For The Year Ended June 30,
2010 2009 2008
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 279,983 $ 165,613 $ 125,532
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Stock-Based Compensation Charge 10,148 7,550 5,724
Depreciation 51,225 39,825 34,808
Amortization 10,997 10,625 5,066
Provision for Refunds and Uncollectible Accounts 88,202 72,395 51,881
Deferred Income Taxes (9,549 ) 344 3,110
Loss on Disposals of Land, Buildings and Equipment 666 2,394 3,882
Unrealized Net (Gain) Loss on Investments (1,225 ) 1,224 -
Changes in Assets and Liabilities, Net of Effects from
Acquisitions of Businesses:
Restricted Cash 3,247 (1,097 ) 10,374
Accounts Receivable (102,588 ) (89,249 ) (59,952 )
Prepaid Expenses And Other 5,654 7,292 (21,867 )
Accounts Payable 18,776 (3,084 ) 35,997
Accrued Salaries, Wages, Expenses and Benefits 30,854 20,130 533
Advance Tuition Payments (6,805 ) 5,889 2,546
Deferred Tuition Revenue   11,963     9,675     1,012  
NET CASH PROVIDED BY OPERATING ACTIVITIES   391,548     249,526     198,646  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (131,009 ) (74,044 ) (62,806 )
Net Proceeds from Sales of Land and Building - - 52,571
Payments for Purchases of Businesses, Net of Cash Acquired - (315,318 ) (27,603 )
Marketable Securities Purchased (79 ) (63 ) (247,013 )
Marketable Securities-Maturities and Sales 46,000 - 184,854
Other   (700 )   39     -  
NET CASH USED IN INVESTING ACTIVITIES   (85,788 )   (389,386 )   (99,997 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 13,041 12,157 17,703
Proceed from Stock Issued Under Employee Stock Purchase Plan 997 2,066 1,021
Repurchase of Common Stock for Treasury (41,683 ) (33,684 ) (24,465 )
Cash Dividends Paid (12,839 ) (10,015 ) (7,840 )
Excess Tax Benefit from Stock-Based Payments 3,455 3,571 4,201
Borrowings Under Revolving Credit Facility 70,000 290,000 25,000
Repayments Under Revolving Credit Facility (150,000 ) (210,000 ) (26,895 )
Borrowings Under Collateralized Line of Credit 300 46,419 -
Repayments Under Collateralized Line of Credit (45,111 ) (1,608 ) -
Repayments of Fanor Debt   -     (12,740 )   -  
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES   (161,840 )   86,166     (11,275 )
 
Effects of Exchange Rate Differences   (1,420 )   1,697     670  
 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 142,500 (51,997 ) 88,044
 
Cash and Cash Equivalents at Beginning of Year   165,202     217,199     129,155  
 
Cash and Cash Equivalents at End of Year $ 307,702   $ 165,202   $ 217,199  
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest $ 867 $ 2,167 $ 366
Income Taxes, Net 130,502 60,609 58,387
Non-cash Investing and Financing Activity:
Accretion of Non-controlling Interest Put Option 1,745 - -
Declaration of Cash Dividends to be Paid 7,117 5,705 4,283
 
DEVRY INC.

SEGMENT INFORMATION

(Dollars in Thousands)
             
PRELIMINARY
 
 
For The Quarter For The Year
Ended June 30, Ended June 30,
Increase Increase
2010 2009 (Decrease) 2010 2009 (Decrease)
 
REVENUES:
Business, Technology and Management $ 332,188 $ 251,138 32.3 % $ 1,263,553 $ 989,472 27.7 %
Medical and Healthcare 131,465 106,445 23.5 % 507,037 362,715 39.8 %
Professional Education 26,001 23,878 8.9 % 84,824 84,151 0.8 %
Other Educational Services   17,020     14,778   15.2 %   59,767     25,115   138.0 %
 
Total Consolidated Revenues   506,674     396,239   27.9 %   1,915,181     1,461,453   31.0 %
 
OPERATING INCOME (LOSS):
Business, Technology and Management 71,096 24,872 185.8 % 291,060 126,909 129.3 %
Medical and Healthcare 21,832 23,519 -7.2 % 111,081 91,651 21.2 %
Professional Education 8,833 8,897 -0.7 % 26,673 30,670 -13.0 %
Other Educational Services 440 1,421 -69.0 % (6,791 ) (1,001 ) NM
Reconciling Items:
Amortization Expense (1,623 ) (3,683 ) -55.9 % (10,812 ) (10,476 ) 3.2 %
Depreciation and Other   (10 )   (1,332 ) -99.2 %   (309 )   (2,920 ) -89.4 %
 
Total Consolidated Operating Income 100,568 53,694 87.3 % 410,902 234,833 75.0 %
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 530 623 -14.9 % 2,080 5,251 -60.4 %
Interest Expense (332 ) (762 ) -56.4 % (1,585 ) (2,775 ) -42.9 %
Net Investment Gain   -     791   NM   1,225     43   NM
 
Net Interest and Other Income (Expense)   198     652   -69.6 %   1,720     2,519   -31.7 %
 
Total Consolidated Income before Income Taxes $ 100,766   $ 54,346   85.4 % $ 412,622   $ 237,352   73.8 %
 
 

DeVry executed certain real estate transactions in the year ended June 30, 2009, which resulted in significant lease termination charges and/or losses on the sale of facilities. DeVry also recorded a litigation settlement reserve in the three months and year ended June 30, 2009. The following table illustrates the effects of the real estate transactions and litigation settlement reserve on DeVry’s operating income. Management believes that the non-GAAP disclosure of net income and earnings per share provides investors with useful supplemental information regarding the underlying business trends and performance of DeVry’s ongoing operations and are useful for period-over-period comparisons of such operations given the discrete nature of the real estate transactions and the litigation settlement reserve. DeVry uses these supplemental financial measures internally in its budgeting process. However, the non-GAAP financial measures should be viewed in addition to, and not as a substitute for, DeVry’s reported results prepared in accordance with GAAP. The following table reconciles these items to the relevant GAAP information:

 
For The Quarter For The Year
Ended June 30, Ended June 30,
 
2010 2009 Increase 2010 2009 Increase
 
Business, Technology and Management Operating Income $ 71,096 $ 24,872 185.8 % $ 291,060 $ 126,909 129.3 %
Loss on Real Estate Transactions - - - - 3,977 -100.0 %
Litigation Settlement Reserve   -     4,900   NM   -     4,900   NM
Business, Technology and Management Operating Income,
Excluding Loss on Discrete Items $ 71,096   $ 29,772   138.8 % $ 291,060   $ 135,786   114.4 %
 
 
The following table displays the pro forma results of operations for the Medical and Healthcare segment as if Carrington Colleges (formerly U.S. Education) were a part of DeVry's business for the entire years ended June 30, 2010 and 2009. No quarterly pro forma information is presented because Carrington Colleges were a part of DeVry's business for the entire quarterly periods ended June 30, 2010 and 2009. 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 periods.
 
For The Year
Ended June 30.
 
2010 2009 Increase
 
Medical and Healthcare Revenue as Reported $ 507,037 $ 362,715 39.8 %
Carrington Colleges Revenue (1)   -     35,907   NM
Pro forma Medical and Healthcare Revenue $ 507,037   $ 398,622   27.2 %
 
Medical and Healthcare Operating Income as Reported $ 111,081 $ 91,651 21.2 %
Carrington Colleges Operating Income as Adjusted (1) (2)   -     5,350   NM
Pro forma Medical and Healthcare Operating Income $ 111,081   $ 97,001   14.5 %
 

(1) For the portion of the period not owned by DeVry. Carrington Colleges, which was acquired on September 18, 2008, contributed $71 million of revenue growth in the year ended June 30, 2010.

 

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

 

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6395821&lang=en

CONTACT:
DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 353-3800
or
Media Contact:
Larry Larsen
llarsen@sardverb.com
(312) 895-4717