Devry (NYSE:DV)
Historical Stock Chart
2 Years : From May 2011 to May 2013
DeVry Inc. (NYSE:DV), a global provider of educational services, today
reported results for its fiscal 2012 third-quarter and nine-month period
ended March 31, 2012.
Significant accomplishments:
-
DeVry Brasil acquired Faculdade Boa Viagem (FBV) to expand its
presence in northeastern Brazil
-
Becker Professional Education acquired Falcon Physician Reviews to
enter the growing healthcare exam preparation market
-
Chamberlain established campuses in Atlanta and Indianapolis; sought
approvals to open a Tinley Park, Ill., campus in fiscal 2013
-
Becker announced that it prepared all 19 Elijah Watts Sells Winners
for the 2010 CPA Exam
Financial Results for the Three Months Ended March 31, 2012:
-
Revenues decreased 4 percent to $540.8 million
-
Net income declined 28 percent to $67.1 million
-
Diluted earnings per share decreased 24 percent to $1.00
Financial Results for the Nine Months Ended March 31, 2012:
-
Revenues decreased 3 percent to $1,584 million
-
Reported net income declined to $133.5 million from $255.2 million
last year, and net income excluding discrete items was $187.1 million,
down 27 percent
-
Reported diluted earnings per share declined to $1.96 from $3.60 per
share last year, and earnings per share excluding discrete items was
$2.74 per share, down 24 percent
“While this was a challenging quarter, we continued to execute on our
five-point performance improvement plan, which includes reducing costs
at DeVry University and Carrington Colleges,” said Daniel Hamburger,
DeVry’s president and chief executive officer. “Our strong financial
position enables us to aggressively pursue our plan without sacrificing
quality or foregoing opportunities for targeted investments. In the
quarter, we made promising investments in high growth areas of our
organization, namely the expansion of Chamberlain into two new markets
and the additions of Faculdade Boa Viagem and Falcon Physician Review to
our family of institutions.”
Business Highlights
Business, Technology, and Management Segment
DeVry University
DeVry University reported new undergraduate student enrollment of
12,025, a 19.7 percent decline compared with 14,981 last year. Total
student enrollment decreased 15.1 percent to 60,196 students, compared
with 70,863 in spring 2011.
For the January 2012 session, the number of graduate coursetakers
enrolled in master’s degree programs at DeVry University and its Keller
Graduate School of Management was 24,029, a decrease of 3.0 percent
versus January 2011. For the March 2012 session, the number of graduate
coursetakers was 23,366, a decline of 4.3 percent from prior year.
The total number of online undergraduate and graduate coursetakers in
the March 2012 session decreased 13.1 percent to 68,083 versus 78,366 in
the same session a year ago.
Enrollment results were impacted by a focus on adjusting to new
regulations and prolonged unemployment, which continued to affect
consumer confidence.
Medical and Healthcare Segment
DeVry Medical International
In the January 2012 term, new students decreased 20.5 percent to 601,
compared to a very strong 756 students last year. Total students
increased 1.0 percent to 6,024 compared to 5,965 students in the same
term last year. The decline in new student enrollment is largely a
result of capacity constraints at Ross University School of Medicine.
Ross expects new student enrollment to increase in the May term
reflecting the continued strong demand for medical education.
Chamberlain College of Nursing
Chamberlain's new student enrollment in spring 2012 increased 2.8
percent to 2,933 students, compared to 2,852 in spring 2011. Total
student enrollment rose 19.9 percent to 11,867 students compared with
9,897 during the same period last year.
Chamberlain’s newly established Atlanta location has experienced
exceptionally strong interest from applicants for the first classes at
that location.
Carrington Colleges Group
New student enrollment at Carrington decreased 30.9 percent to 2,254
compared with 3,261 in spring 2011. Total enrollment decreased 28.4
percent to 7,309 students, compared with 10,206 for the same period last
year. Carrington continues to make progress on its turnaround plan,
which includes increasing its student recruiting effectiveness, aligning
its cost structure, and enhancing academic quality.
Professional Education Segment
Becker Professional Education
In April, Becker announced its acquisition of Falcon Physician Reviews,
a leading provider of comprehensive review programs for physicians
preparing for the United States Medical Licensing Examination (USMLE)
and the Comprehensive Osteopathic Medical Licensing Examination
(COMLEX). The transaction expands Becker’s exam preparation services
into the growing healthcare field.
Becker announced recently that 100 percent of the 2010 Elijah Watt Sells
Award winners prepared for the exam with Becker’s CPA Exam Review. Since
the American Institute of Certified Public Accountants (AICPA) began
recognizing the Elijah Watt Sells Award recipients nationally in 2005,
66 of the 74 winners have prepared with Becker’s CPA Exam Review.
The Elijah Watt Sells Award is presented to the 10 CPA candidates, who,
on their first attempt, achieve the highest cumulative scores for all
four sections of the Uniform CPA Examination within a calendar year. In
2010 several candidates received identical cumulative scores, resulting
in a tie and increasing the number of award recipients to 19.
Other Educational Services Segment
DeVry Brasil
In February, DeVry Brasil announced it had acquired Faculdade Boa
Viagem, adding another quality institution to its growing family of
schools in northeastern Brazil.
For the spring 2012 term, new students increased 46.1 percent to 5,599,
compared to 3,833 students for prior year term. Total students increased
55.6 percent to 21,297 compared to 13,688 students in the same term last
year, driven by strong demand and the acquisition of FBV.
Balance Sheet/Cash Flow
For the first nine months of fiscal 2012, DeVry generated $355.1 million
of operating cash flow. As of March 31, 2012, cash, marketable
securities and investment balances totaled $332.1 million and there were
no outstanding borrowings.
Share Repurchase Plan
During the quarter, a total of 863,369 shares were repurchased under the
organization’s seventh repurchase program for approximately $32.1
million, at an average cost of $37.21 per share.
Conference Call and Webcast Information
DeVry will host a conference call on April 24, 2012, at 3:30 p.m.
Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its
fiscal 2012 third-quarter results. The conference call will be led by
Daniel Hamburger, president and chief executive officer, Tim Wiggins,
chief financial officer, and Pat Unzicker, vice president of finance.
For those wishing to participate by telephone, dial (866) 314-4483
(domestic) or (617) 213-8049 (international). Use passcode 53841990 or
say “DeVry Call.” DeVry will also broadcast the conference call live via
the Internet. Interested parties may access the webcast through the
Investor Relations section of the organization's website at http://www.media-server.com/m/p/7r9x3m5e.
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 May 1, 2012. To
access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888
(international), passcode: 95020056. To access the webcast replay,
please visit DeVry’s website at www.devryinc.com.
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, American University of the Caribbean School of Medicine,
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. 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 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, 2011 and filed with the Securities and Exchange Commission on
August 26, 2011.
Selected Operating Data (in thousands, except per share data)
Third Quarter
FY 2012
FY 2011
Change
Revenues
$540,807
$562,730
(3.9%)
Net Income
$67,131
$92,900
(27.7%)
Earnings per Share (diluted)
$1.00
$1.32
(24.2%)
Number of common shares (diluted)
67,225
70,272
(4.3%)
Nine Months
FY 2012
FY 2011
Change
Revenues
$1,583,894
$1,635,621
(3.2%)
Net Income
$133,480
$255,207
(47.7%)
Earnings per Share (diluted)
$1.96
$3.60
(45.6%)
Number of common shares (diluted)
68,235
70,886
(3.7%)
Use of Non-GAAP Financial Information and Supplemental Reconciliation
Schedule
During the second quarter of fiscal year 2012, DeVry recorded impairment
charges related to its Carrington Colleges reporting unit. Also, DeVry
recorded a gain from the sale of Becker’s Stalla CFA review operations.
The following table illustrates the effects of the impairment charges
and gain on sale of assets on DeVry’s results. Management believes that
the disclosure of non-GAAP 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 is
useful for period-over period comparisons of such operations given the
discrete nature of the impairment charges and gain on the sale of
assets. DeVry uses these supplemental financial measures internally in
its management and budgeting processes. 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):
For The Nine Months
Ended March 31:
2012
2011
Net Income
$133,480
$255,207
Earnings per Share (diluted)
$1.96
$3.60
Impairment Charges (net of tax)
$55,751
--
Effect on Earnings per Share (diluted)
$0.82
--
Gain on Sale of Assets (net of tax)
$(2,174
)
--
Effect on Earnings per Share (diluted)
$(0.03
)
--
Net Income Excluding the Impairment
Charges and Gain on Sale of Assets
$187,057
$255,207
Earnings per Share Excluding the
Impairment Charges and Gain on Sale of
Assets (diluted)
$2.74
$3.60
Spring 2012 Enrollment Results
2012
2011
Change
Total DeVry Inc. Postsecondary Enrollments(1)
126,165
130,957
(3.7)%
DeVry University
Undergraduate(2)
New students
12,025
14,981
(19.7%)
Total students
60,196
70,863
(15.1%)
Graduate coursetakers(2)(3)
January
24,029
24,784
(3.0%)
March
23,366
24,406
(4.3%)
Online coursetakers(3) – March
68,083
78,366
(13.1%)
Chamberlain College of Nursing – Spring(2)
New students
2,933
2,852
+2.8%
Total students
11,867
9,897
+19.9%
DeVry Medical International(4)
New students
601
756
(20.5%)
Total students
6,024
5,965
+1.0%
Carrington Colleges – Spring
New students
2,254
3,261
(30.9%)
Total students
7,309
10,206
(28.4%)
DeVry Brasil – Spring(5)
New students
5,599
3,833
+46.1%
Total students
21,297
13,688
+55.6%
DeVry Brasil – Spring (excluding FBV)
New students
4,336
3,833
+13.1%
Total students
15,876
13,688
+16.0%
1.
Excludes Becker and Advanced Academics.
2.
Includes both onsite and online students
3.
The term “coursetaker” refers to the number of courses taken by a
student. Thus one student taking two courses equals two coursetakers
4.
DeVry Medical International includes Ross University Schools of
Medicine and Veterinary Medicine and the American University of the
Caribbean School of Medicine (AUC). AUC’s new student enrollment for
the January 2012 and 2011 terms were 87 students and 114 students,
respectively. AUC’s total student enrollment for the January 2012
and 2011 terms were 1,184 students and 1,155 students, respectively.
5.
DeVry acquired FBV in northeastern Brazil in January. For the Spring
2012 term, FBV’s new student enrollment was 1,263 students and total
student enrollment was 5,421 students.
Chart 1: Remaining DeVry Inc. Calendar 2012 Announcements & Events
Aug. 9, 2012
Fiscal 2012 Year-End Results and Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
Oct. 25, 2012
Fiscal 2013 First Quarter Results and Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
DeVry Brasil
November 7, 2012
Annual Shareholder’s Meeting
Chart 2: Calendar 2013 Announcements & Events
January 24, 2013
Fiscal 2013 Second Quarter and Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
April 23, 2013
Fiscal 2013 Third Quarter Results and Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
DeVry Brasil
August 15, 2013
Fiscal 2013 Second Quarter and Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Medical International
October 24, 2013
Fiscal 2013 Third 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
Chart 3: Link to DeVry University USOC Campaign
http://www.youtube.com/user/TheDevryUniversity?ob=0&feature=results_main
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31,
June 30,
March 31,
2012
2011
2011
ASSETS
Current Assets
Cash and Cash Equivalents
$
329,440
$
447,145
$
596,515
Marketable Securities and Investments
2,665
2,575
2,556
Restricted Cash
13,194
2,308
7,378
Accounts Receivable, Net
254,661
114,689
223,953
Deferred Income Taxes, Net
23,019
24,457
26,290
Prepaid Expenses and Other
42,389
33,476
31,030
Total Current Assets
665,368
624,650
887,722
Land, Buildings and Equipment
Land
66,019
54,404
54,274
Buildings
382,972
314,274
302,843
Equipment
422,271
402,179
361,837
Construction In Progress
50,192
63,310
73,713
921,454
834,167
792,667
Accumulated Depreciation and Amortization
(374,904
)
(365,923
)
(354,711
)
Land, Buildings and Equipment, Net
546,550
468,244
437,956
Other Assets
Intangible Assets, Net
292,887
195,462
191,870
Goodwill
566,547
523,620
517,822
Perkins Program Fund, Net
13,450
13,450
13,450
Other Assets
27,400
25,077
21,607
Total Other Assets
900,284
757,609
744,749
TOTAL ASSETS
$
2,112,202
$
1,850,503
$
2,070,427
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
March 31,
June 30,
March 31,
2012
2011
2011
LIABILITIES
Current Liabilities
Accounts Payable
$
53,208
$
63,611
$
63,741
Accrued Salaries, Wages and Benefits
72,443
107,829
69,410
Accrued Expenses
56,328
47,097
45,338
Advance Tuition Payments
23,257
22,362
22,435
Deferred Tuition Revenue
349,200
75,532
398,452
Total Current Liabilities
554,436
316,431
599,376
Non-Current Liabilities
Deferred Income Taxes, Net
63,693
69,029
63,874
Deferred Rent and Other
91,415
68,772
62,130
Total Non-current Liabilities
155,108
137,801
126,004
TOTAL LIABILITIES
709,544
454,232
725,380
NON-CONTROLLING INTEREST
8,168
6,755
6,466
SHAREHOLDERS' EQUITY
Common Stock, $0.01 par value, 200,000,000 Shares Authorized;
65,831,000, 68,635,000 and 68,966,000 Shares issued
and outstanding at March 31, 2012, June 30, 2011
and March 31, 2011, respectively.
741
738
736
Additional Paid-in Capital
267,285
248,418
238,813
Retained Earnings
1,490,371
1,367,972
1,300,862
Accumulated Other Comprehensive Income
3,163
15,729
13,662
Treasury Stock, at Cost (8,266,000, 5,148,000 and 4,638,000
Shares, Respectively)
(367,070
)
(243,341
)
(215,492
)
TOTAL SHAREHOLDERS' EQUITY
1,394,490
1,389,516
1,338,581
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
2,112,202
$
1,850,503
$
2,070,427
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
For The Quarter
For The Nine Months
Ended March 31,
Ended March 31,
2012
2011
2012
2011
REVENUES:
Tuition
$
505,651
$
521,484
$
1,488,432
$
1,528,003
Other Educational
35,156
41,246
95,462
107,618
Total Revenues
540,807
562,730
1,583,894
1,635,621
OPERATING COSTS AND EXPENSES:
Cost of Educational Services
244,195
232,914
723,655
690,912
Student Services and Administrative Expense
201,158
192,589
596,125
560,114
Asset Impairment Charge
-
-
75,039
-
Total Operating Costs and Expenses
445,353
425,503
1,394,819
1,251,026
Operating Income
95,454
137,227
189,075
384,595
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income
110
435
520
1,239
Interest Expense
(650
)
(348
)
(1,653
)
(841
)
Net Gain on Sale of Assets
-
-
3,695
-
Net Interest and Other Income (Expense)
(540
)
87
2,562
398
Income Before Income Taxes
94,914
137,314
191,637
384,993
Income Tax Provision
27,610
44,405
57,741
129,851
NET INCOME
67,304
92,909
133,896
255,142
Net (Income) Loss Attributable to Noncontrolling Interest
(173
)
(9
)
(416
)
65
NET INCOME ATTRIBUTABLE TO DEVRY INC.
$
67,131
$
92,900
$
133,480
$
255,207
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic
$
1.01
$
1.34
$
1.97
$
3.64
Diluted
$
1.00
$
1.32
$
1.96
$
3.60
Cash Dividend Declared per Common Share
$
-
$
-
$
0.15
$
0.12
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Nine Months
Ended March 31,
2012
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income
$133,896
$255,142
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Stock-Based Compensation Expense
12,891
11,192
Depreciation
56,512
43,289
Amortization
8,336
4,589
Impairment of Goodwill and Intangible Assets
75,039
-
Provision for Refunds and Uncollectible Accounts
73,058
73,534
Deferred Income Taxes
(5,157
)
16,220
Loss on Disposals of Land, Buildings and Equipment
805
262
Realized Gain on Sale of Assets
(3,695
)
-
Changes in Assets and Liabilities, Net of Effects from
Acquisitions and Divestitures of Businesses:
Restricted Cash
(10,886
)
(5,276
)
Accounts Receivable
(212,973
)
(177,807
)
Prepaid Expenses And Other
(5,392
)
(6,225
)
Accounts Payable
(11,327
)
(26,631
)
Accrued Salaries, Wages, Expenses and Benefits
(26,149
)
(16,267
)
Advance Tuition Payments
877
1,384
Deferred Tuition Revenue
269,294
311,825
NET CASH PROVIDED BY OPERATING ACTIVITIES
355,129
485,231
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures
(92,167
)
(91,299
)
Marketable Securities Purchased
(66
)
(91
)
Marketable Securities Sales
-
13,495
Payment for Purchase of Businesses, Net of Cash Acquired
(250,150
)
-
Cash Received from Sale of Assets
4,475
-
Other
-
(627
)
NET CASH USED IN INVESTING ACTIVITIES
(337,908
)
(78,522
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options
6,041
3,081
Proceeds from Stock issued Under Employee Stock Purchase Plan
1,298
1,033
Repurchase of Common Stock for Treasury
(124,160
)
(104,746
)
Cash Dividends Paid
(18,430
)
(15,529
)
Excess Tax Benefit from Stock-Based Payments
727
561
Payment of Debt Financing Fees
(70
)
-
NET CASH USED IN FINANCING ACTIVITIES
(134,594
)
(115,600
)
Effects of Exchange Rate Differences
(332
)
(2,296
)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(117,705
)
288,813
Cash and Cash Equivalents at Beginning of Period
447,145
307,702
Cash and Cash Equivalents at End of Period
$329,440
$596,515
DEVRY INC.
SEGMENT INFORMATION
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Quarter
For The Nine Months
Ended March 31,
Ended March 31,
Increase
Increase
2012
2011
(Decrease)
2012
2011
(Decrease)
REVENUES:
Business, Technology and Management
$
338,790
$
378,698
-10.5
%
$
1,001,959
$
1,102,359
-9.1
%
Medical and Healthcare
160,483
142,544
12.6
%
461,456
421,347
9.5
%
International, K-12 and Professional Education
41,534
41,488
0.1
%
120,479
111,915
7.7
%
Total Consolidated Revenues
540,807
562,730
-3.9
%
1,583,894
1,635,621
-3.2
%
OPERATING INCOME:
Business, Technology and Management
64,667
99,351
-34.9
%
183,850
283,342
-35.1
%
Medical and Healthcare
25,963
29,289
-11.4
%
(2,681
)
88,415
-103.0
%
International, K-12 and Professional Education
7,214
10,263
-29.7
%
14,378
15,858
-9.3
%
Reconciling Items:
Amortization Expense
(2,800
)
(1,497
)
87.0
%
(7,844
)
(4,449
)
76.3
%
Depreciation and Other
410
(179
)
NM
1,372
1,429
-4.0
%
Total Consolidated Operating Income
95,454
137,227
-30.4
%
189,075
384,595
-50.8
%
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income
110
435
-74.7
%
520
1,239
-58.0
%
Interest Expense
(650
)
(348
)
86.8
%
(1,653
)
(841
)
96.6
%
Net Gain on Sale of Assets
-
-
NM
3,695
-
NM
Net Interest and Other Income (Expense)
(540
)
87
-720.7
%
2,562
398
543.7
%
Total Consolidated Income before Income Taxes
$
94,914
$
137,314
-30.9
%
$
191,637
$
384,993
-50.2
%
Intangible asset and goodwill impairment charges were recorded for the
nine month period ended March 31, 2012. These charges are related to
DeVry's Carrington Colleges Group, Inc. which is part of the Medical and
Healthcare segment. The following table illustrates the effects of these
impairment charges on the operating income of the Medical and Healthcare
segment. Management believes that the non-GAAP disclosure of operating
earnings 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 these impairment
transactions. 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 Nine Months
Ended March 31,
Ended March 31,
Increase
Increase
2012
2011
(Decrease)
2012
2011
(Decrease)
Medical and Healthcare Operating Income
$
25,963
$
29,289
-11.4
%
$
(2,681
)
$
88,415
-103.0
%
Asset Impairment Charge
-
-
NM
75,039
0
NM
Medical and Healthcare Operating Income
Excluding Charge for Asset Impairments
$
25,963
$
29,289
-11.4
%
$
72,358
$
88,415
-18.2
%
|
