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DeVry Inc. Announces First-Quarter 2013 Results

DeVry Brasil

During the quarter, DeVry Brasil acquired Faculdade do Vale do Ipojuca (FAVIP). In the September 2012 term, new students increased 2.2 percent to 4,179, compared to 4,090 students last year. Total students increased 9.2 percent to 26,346 compared to 24,135 students in the same term last year. DeVry Brasil continues to expand its curriculum and invest in student services, new programs, and new campus locations.

Balance Sheet/Cash Flow

For the first quarter, DeVry generated $164.1 million of operating cash flow. As of Sept. 30, 2012, cash, marketable securities and investment balances totaled $250.3 million and there were no outstanding borrowings.

Share Repurchase Plan

During the quarter, DeVry repurchased 1,130,874 shares of its common stock for approximately $25.7 million, at an average cost of $22.74 per share, under its seventh share repurchase program.

Conference Call and Webcast Information

DeVry will host a conference call on Oct. 25, 2012, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2013 first-quarter results. The conference call will be led by Daniel Hamburger, president and chief executive officer, Tim Wiggins, senior vice president and chief financial officer, and Pat Unzicker, vice president of finance and chief accounting officer.

For those wishing to participate by telephone, dial 866-383-7998 (domestic) or 617-597-5329 (international). Use passcode 41365877 or say “DeVry Call”. DeVry Inc. will also broadcast the conference call live via the web. Interested parties may access the webcast through the Investor Relations section of the company's website, or http://www.media-server.com/m/p/wxk342hb. 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 Nov. 14, 11:59 p.m. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 95071316. To access the webcast replay, please visit the company's website, or http://www.media-server.com/m/p/wxk342hb.

About DeVry Inc.

DeVry's purpose is to empower its students to achieve their educational and career goals. DeVry (NYSE: DV; member S&P MidCap 400 Index) is a global provider of educational services and the parent organization of Advanced Academics, American University of the Caribbean School of Medicine, Becker Professional Education, Carrington College, Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, Ross University School of Medicine and Ross University School of Veterinary Medicine. These institutions offer a wide array of programs in business, healthcare and technology. DeVry’s institutions serve students in secondary through postsecondary education and professionals in accounting and finance. 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 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, 2012 and filed with the Securities and Exchange Commission on August 28, 2012.

 

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

  First Quarter
FY 2013   FY 2012   Change
Revenues $482,736 $519,038 -7.0%
Operating Income $45,790 $79,865 -42.7%
Net Income $31,989 $57,484 -44.4%
Earnings per Share (diluted) $0.49 $0.83 -41.0%
Number of common shares (diluted) 65,109 69,467 -6.3%
 

September 2012 Enrollment Results

 
        2012         2011         % Change
DeVry Inc. Student Enrollments (1)    
Total students 126,345 134,582 -6.1%
 
DeVry University
Undergraduate – September Session
New students 6,580 7,200 -8.6%
Total students 56,086 65,933 -14.9%
Graduate – September Session
Coursetakers (2) 22,072 23,937 -7.8%
Online
Total coursetakers (2)(3) 71,200 78,602 -9.4%
 
Chamberlain College of Nursing
September Session
New students 1,625 1,065 52.6%
Total students 12,050 10,029 20.2%
 
Carrington Colleges Group
3 months ending September 30
New students 3,396 2,548 33.3%
Total students 7,628 8,322 -8.3%
 
DeVry Medical International
September Session
New students 925 853 8.4%
Total students 6,209 6,082 2.1%
 
DeVry Brasil (4)
New students 4,179 4,090 2.2%
Total students 26,346 24,135 9.2%
 
   

Percent Employed (5)

   

Average Salary

Graduate Employment Statistics

 

 

 

DeVry University (Undergraduate)

85.7%

$42,623

    1.   Excludes Becker and Advanced Academics.
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 both undergraduate and graduate students.
4. 2012 and 2011 data includes FBV and FAVIP.
5. Six-session average ending February 2012; includes graduates of associate and bachelor’s degree programs. Denominator excludes graduates continuing their education, foreign graduates ineligible to work in the United States/Canada and those unable to accept career advising assistance because of extreme circumstances, such as military service or critical illness. Numerator excludes graduates who actively pursued employment for less than 180 days and did not become employed. Information presented is based on graduate-provided data.
 

Chart 1: DeVry Inc. Calendar 2012 and 2013 Announcements & Events

 
November 7, 2012       Annual Shareholder’s Meeting
 
February 6, 2013 Fiscal 2013 Second Quarter Results and November/January Enrollment
 
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
 
April 23, 2013 Fiscal 2013 Third Quarter Results and March Enrollment
 
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Brasil
 
August 15, 2013 Fiscal 2013 Fourth Quarter and May/July Enrollment
 
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
 
October 24, 2013 Fiscal 2014 First Quarter Results and Enrollment
 
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
DeVry Brasil
 
November 6, 2013 Annual Shareholder’s Meeting
 

DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
 
  September 30,   June 30,   September 30,
2012 2012 2011
 

ASSETS

 

Current Assets

 
Cash and Cash Equivalents $ 247,566 $ 174,076 $ 322,918
Marketable Securities and Investments 2,750 2,632 2,337
Restricted Cash 4,546 2,498 5,697
Accounts Receivable, Net 190,727 113,911 151,428
Deferred Income Taxes, Net 25,279 27,845 21,712
Refundable Income Taxes 34,651 40,278 0
Prepaid Expenses and Other   40,534     39,874     41,139  
 
Total Current Assets   546,053     401,114     545,231  
 

Land, Buildings and Equipment

 
Land 65,249 65,172 61,378
Buildings 389,306 386,028 352,043
Equipment 470,315 433,949 426,345
Construction In Progress   35,931     61,752     51,860  
 
960,801 946,901 891,626
 
Accumulated Depreciation and Amortization   (393,142 )   (387,924 )   (375,841 )
 
Land, Buildings and Equipment, Net   567,659     558,977     515,785  
 

Other Assets

 
Intangible Assets, Net 297,054 285,220 321,250
Goodwill 564,841 549,961 589,780
Perkins Program Fund, Net 13,450 13,450 13,450
Other Assets   31,263     29,894     26,431  
 
Total Other Assets   906,608     878,525     950,911  
 
TOTAL ASSETS $ 2,020,320   $ 1,838,616   $ 2,011,927  
 

DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
     
September 30, June 30, September 30,
2012 2012 2011
 

LIABILITIES

 

Current Liabilities

 
Accounts Payable $ 62,105 $ 63,094 $ 65,678
Accrued Salaries, Wages and Benefits 83,653 77,741 77,925
Accrued Expenses 69,731 76,243 50,128
Advance Tuition Payments 20,930 20,580 18,135
Deferred Tuition Revenue   237,830     77,551     250,830  
 
Total Current Liabilities   474,249     315,209     462,696  
 

Non-Current Liabilities

 
Deferred Income Taxes, Net 67,729 62,276 75,490
Deferred Rent and Other   101,946     96,496     67,851  
 
Total Non-current Liabilities   169,675     158,772     143,341  
 
TOTAL LIABILITIES   643,924     473,981     606,037  
 
NON-CONTROLLING INTEREST 8,637 8,242 7,176
 

SHAREHOLDERS' EQUITY

 
Common Stock, $0.01 par value, 200,000,000 Shares Authorized;
63,782,000, 64,722,000 and 67,758,000 Shares issued
and outstanding at September 30, 2012, June 30, 2012
and September 30, 2011, respectively. 743 741 739
Additional Paid-in Capital 278,144 272,962 256,159
Retained Earnings 1,520,415 1,488,988 1,424,866
Accumulated Other Comprehensive Income (5,412 ) (5,889 ) 5,348
Treasury Stock, at Cost (10,544,000, 9,386,000 and 6,171,000
Shares, Respectively)   (426,131 )   (400,409 )   (288,398 )
 
TOTAL SHAREHOLDERS' EQUITY   1,367,759     1,356,393     1,398,714  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,020,320   $ 1,838,616   $ 2,011,927  
 

DEVRY INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
 
    For The Quarter
Ended September 30,
 
2012 2011
 
REVENUES:
Tuition $ 451,501 $ 486,487
Other Educational   31,235     32,551  
 
Total Revenues   482,736     519,038  
 
OPERATING COSTS AND EXPENSES:
Cost of Educational Services 242,545 238,248
Student Services and Administrative Expense   194,401     200,925  
 
Total Operating Costs and Expenses   436,946     439,173  
 
Operating Income 45,790 79,865
 
INTEREST AND OTHER (EXPENSE) INCOME:
Interest Income 561 184
Interest Expense   (1,491 )   (522 )
 
Net Interest and Other (Expense) Income   (930 )   (338 )
 
Income Before Income Taxes 44,860 79,527
 
Income Tax Provision   13,038     22,215  
 
NET INCOME 31,822 57,312
 
Net Loss Attributable to Non-controlling Interest   167     172  
 
NET INCOME ATTRIBUTABLE TO DEVRY INC. $ 31,989   $ 57,484  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic $ 0.49   $ 0.84  
Diluted $ 0.49   $ 0.83  
 

DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
    For The Three Months
Ended September 30,
2012   2011
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 31,822 $ 57,312
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
 
Stock-Based Compensation Expense 5,716 4,899
Depreciation 20,490 17,513
Amortization 2,442 2,483
Provision for Refunds and Uncollectible Accounts 20,531 21,297
Deferred Income Taxes 5,792 9,256
Loss (Gain) on Disposals of Land, Buildings and Equipment 359 (63 )
Changes in Assets and Liabilities:
Restricted Cash (2,048 ) (3,389 )
Accounts Receivable (93,881 ) (58,627 )
Prepaid Expenses And Other 7,044 (6,668 )
Accounts Payable (991 ) 1,145
Accrued Salaries, Wages, Expenses and Benefits 6,431 (25,110 )
Advance Tuition Payments 136 (3,930 )
Deferred Tuition Revenue   160,279     170,518  
 
NET CASH PROVIDED BY OPERATING ACTIVITIES   164,122     186,636  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (26,237 ) (33,820 )
Marketable Securities Purchases (8 ) (10 )
Payment for Purchase of Business, net of Cash Acquired   (29,538 )   (227,828 )
 
NET CASH USED IN INVESTING ACTIVITIES   (55,783 )   (261,658 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 1,030 2,581
Proceeds from Stock issued Under Employee Stock Purchase Plan 487 388
Repurchase of Common Stock for Treasury (25,712 ) (44,450 )
Cash Dividends Paid (9,793 ) (8,285 )
Excess Tax Benefit from Stock-Based Payments   6     313  
 
NET CASH USED IN FINANCING ACTIVITIES   (33,982 )   (49,453 )
 
Effects of Exchange Rate Differences   (867 )   248  
 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 73,490 (124,227 )
 
Cash and Cash Equivalents at Beginning of Period   174,076     447,145  
 
Cash and Cash Equivalents at End of Period $ 247,566   $ 322,918  
 

DEVRY INC.

SEGMENT INFORMATION

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
 
  For The Quarter
Ended September 30,
    Increase
2012 2011 (Decrease)
REVENUES:
Business, Technology and Management $ 284,614 $ 337,596 -15.7 %
Medical and Healthcare 158,357 147,453 7.4 %
International, K-12 and Professional Education   39,765     33,989   17.0 %
 
Total Consolidated Revenues   482,736     519,038   -7.0 %
 
OPERATING INCOME:
Business, Technology and Management 25,570 61,362 -58.3 %
Medical and Healthcare 25,182 23,289 8.1 %
International, K-12 and Professional Education (309 ) (2,987 ) NM
Reconciling Items:
Amortization Expense (2,278 ) (2,318 ) NM
Depreciation and Other Corporate   (2,375 )   519   NM
 
Total Consolidated Operating Income 45,790 79,865 -42.7 %
 
INTEREST AND OTHER (EXPENSE) INCOME:
Interest Income 561 184 204.9 %
Interest Expense   (1,491 )   (522 ) 185.6 %
 
Net Interest and Other (Expense) Income   (930 )   (338 ) NM
 
Total Consolidated Income before Income Taxes $ 44,860   $ 79,527   -43.6 %
 




Stock quotes in this article: DV 

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