DeVry Inc. Announces First-Quarter 2013 Results

DeVry Inc. (NYSE: DV), a global provider of educational services, today reported academic, operational and financial results for its fiscal 2013 first-quarter ended Sept. 30, 2012. DeVry also reported enrollment results at DeVry University, DeVry Medical International, Chamberlain College of Nursing, Carrington Colleges Group, DeVry Brasil, and graduate coursetakers at DeVry University/Keller Graduate School of Management.

Operational accomplishments this quarter included:
  • A reduction in total costs for the quarter of $27 million on a sequential basis
  • A 53 percent increase in new student enrollments at Chamberlain, resulting in more than 12,000 total students for the September session
  • An increase in new enrollments at Carrington of 33 percent versus prior year
  • An 8.4 percent increase in new students at DeVry Medical International
  • The completion of the Faculdade do Vale do Ipojuca (FAVIP) acquisition resulting in a total of more than 26,000 students in DeVry Brasil’s institutions

Selected financial data for the three months ended Sept. 30, 2012:
  • Revenues decreased 7.0 percent to $482.7 million
  • Net income decreased 44.4 percent to $32.0 million
  • Diluted earnings per share decreased 41.0 percent to $0.49
  • Operating cash flow of $164.1 million generated during the quarter
  • 1.1 million shares repurchased during the quarter

“We are off to a good start in achieving our top two priorities of realigning our costs and regaining enrollment growth,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are now on track to deliver cost savings of $60 million for fiscal 2013, and Carrington’s new student enrollments exceeded our expectations. These efforts, combined with the results from DeVry Medical International, Chamberlain and Becker, demonstrate that we are making solid progress on our performance improvement plan.”

Real Estate Optimization

Given recent reductions in force, primarily at DeVry University and Carrington, the organization has excess administrative office capacity in the Chicago area. As part of its ongoing real estate optimization program, management plans to sell the Wood Dale, Ill., administrative office building later this year and relocate those employees to existing administrative office space in other Chicagoland locations. DeVry anticipates recording a non-cash restructuring charge of $9 to $10 million associated with this transaction in the second fiscal quarter of 2013. It expects to save approximately $2 million annually as a result of this consolidation.

Organizational Highlights

Business, Technology and Management Segment

DeVry University

For the September session at DeVry University, new undergraduate enrollments decreased 8.6 percent to 6,580 compared to 7,200 for the previous year. Total undergraduate students decreased 14.9 percent to 56,086 versus 65,933 for the session a year ago, reflecting a continuation of the trends experienced in previous periods.

At the graduate level, total coursetakers in the September session decreased 7.8 percent to 22,072 versus 23,937 for the same session a year ago. DeVry believes these results can be viewed in the broader context of declining enrollments at the graduate level in all sectors of higher education, particularly among MBA programs.

The total number of DeVry University online undergraduate and graduate coursetakers in the September session decreased 9.4 percent to 71,200 versus 78,602 in the same session a year ago.

DeVry University recently launched a new advertising campaign that underscores the growing need for an educated workforce to fill tomorrow’s jobs in high-demand sectors. The new campaign can be seen at the following link:

As an example of the strong value proposition of our career-focused programs, graduate employment at DeVry University was 85.7 percent in the most recent annual reporting period. This average includes graduates of associate and bachelor’s degree programs for the twelve-month period ending February 2012. See the enrollment table on page six for additional information.

Medical and Healthcare Segment

DeVry Medical International

In the 2012 September session for DeVry Medical International, new students increased 8.4 percent to 925, compared to 853 students for prior year session. Total students increased 2.1 percent to 6,209 compared to 6,082 students in the same session last year. Expansion of American University of the Caribbean School of Medicine’s (AUC) campus continues with a new academic building under construction, which is scheduled for completion in fall 2013.

Chamberlain College of Nursing

Chamberlain's new student enrollment in the September session increased 52.6 percent to 1,625 students, compared to 1,065 in September 2011. Total student enrollment increased 20.2 percent to 12,050 students compared with 10,029 during the same period last year.

These results reflect strong demand at campuses opened in the last several years and a record grand opening at Chamberlain’s Atlanta campus. In September, Chamberlain received approval for a new campus in Cleveland with classes scheduled to start in January 2013.

Chamberlain recently partnered with the National League for Nursing (NLN) to establish the NLN Chamberlain College of Nursing Center for the Advancement of the Science of Nursing Education. The NLN/Chamberlain Center will promote evidence-based nursing education and the scholarship of teaching, enabling the expansion of NLN programming in nursing education research.

Carrington Colleges Group

For the three month period ending September 30, 2012, new student enrollment for Carrington Colleges Group increased 33.3 percent to 3,396 versus 2,548 in the previous year. Total enrollment decreased 8.3 percent to 7,628 compared to 8,322 in the prior year.

These institutions continued to make progress on their turnaround plans, which led to higher quality inquiries, and improved conversion and retention rates in the quarter.

International, K-12, and Professional Education Segment

Becker Professional Education

Becker recently announced that it has been named an approved provider of continuing professional education (CPE) to the IRS for its Registered Tax Return Preparers and Enrolled Agents. Becker also launched CPA preparatory courses in Mandarin, continuing the expansion of its international presence.

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 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

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

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%
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)


    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


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


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  


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


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  

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  


(Dollars in Thousands Except for Per Share Amounts)
    For The Quarter
Ended September 30,
2012 2011
Tuition $ 451,501 $ 486,487
Other Educational   31,235     32,551  
Total Revenues   482,736     519,038  
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 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  
Basic $ 0.49   $ 0.84  
Diluted $ 0.49   $ 0.83  

(Dollars in Thousands)
    For The Three Months
Ended September 30,
2012   2011
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  
Capital Expenditures (26,237 ) (33,820 )
Marketable Securities Purchases (8 ) (10 )
Payment for Purchase of Business, net of Cash Acquired   (29,538 )   (227,828 )
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  
Effects of Exchange Rate Differences   (867 )   248  
Cash and Cash Equivalents at Beginning of Period   174,076     447,145  
Cash and Cash Equivalents at End of Period $ 247,566   $ 322,918  


(Dollars in Thousands)
  For The Quarter
Ended September 30,
2012 2011 (Decrease)
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 %
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 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 %

Copyright Business Wire 2010

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