(Mark One)
|
||
R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
|
For
the quarterly period ended: March 31, 2007
|
||
OR
|
||
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
|
|
For
the transition period from
to
|
DELAWARE
|
36-3150143
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
ONE
TOWER LANE, SUITE 1000,
|
60181
|
OAKBROOK
TERRACE, ILLINOIS
|
(Zip
Code)
|
(Address
of principal executive offices)
|
Large
Accelerated Filer R
|
Accelerated
Filer £
|
Non-Accelerated
Filer £
|
|
Page No.
|
|
PART I
- Financial Information
|
||
3
|
||
4
|
||
5
|
||
6
|
||
17
|
||
26
|
||
27
|
||
PART II
- Other Information
|
||
28
|
||
29
|
||
29
|
||
—
Exhibits
|
29
|
|
30
|
PART
I - Financial Information
|
DEVRY
INC.
|
|
March
31,
2007
|
June
30,
2006
|
March
31,
2006
|
|||||||
(Dollars
in thousands)
|
||||||||||
ASSETS:
|
||||||||||
Current
Assets:
|
||||||||||
Cash
and Cash Equivalents
|
$
|
135,821
|
$
|
130,583
|
$
|
162,355
|
||||
Restricted
Cash
|
58,042
|
20,632
|
52,523
|
|||||||
Accounts
Receivable, Net
|
95,490
|
46,567
|
90,089
|
|||||||
Inventories
|
125
|
133
|
104
|
|||||||
Deferred
Income Taxes, Net
|
15,501
|
13,700
|
19,811
|
|||||||
Prepaid
Expenses and Other
|
15,196
|
16,458
|
13,154
|
|||||||
Total
Current Assets
|
320,175
|
228,073
|
338,036
|
|||||||
Land,
Buildings and Equipment:
|
||||||||||
Land
|
60,578
|
67,756
|
67,653
|
|||||||
Buildings
|
214,517
|
222,059
|
219,899
|
|||||||
Equipment
|
257,757
|
245,360
|
241,736
|
|||||||
Construction
In Progress
|
15,367
|
9,057
|
7,207
|
|||||||
548,219
|
544,232
|
536,495
|
||||||||
Accumulated
Depreciation and Amortization
|
(290,655
|
)
|
(271,306
|
)
|
(262,871
|
)
|
||||
Land,
Buildings and Equipment, Net
|
257,564
|
272,926
|
273,624
|
|||||||
Other
Assets:
|
||||||||||
Intangible
Assets, Net
|
58,344
|
63,762
|
65,956
|
|||||||
Goodwill
|
291,113
|
291,113
|
291,113
|
|||||||
Perkins
Program Fund, Net
|
13,450
|
13,450
|
13,290
|
|||||||
Other
Assets
|
6,515
|
3,158
|
4,180
|
|||||||
Total
Other Assets
|
369,422
|
371,483
|
374,539
|
|||||||
TOTAL
ASSETS
|
$
|
947,161
|
$
|
872,482
|
$
|
986,199
|
||||
LIABILITIES:
|
||||||||||
Current
Liabilities:
|
||||||||||
Current
Portion of Debt
|
$
|
—
|
$
|
60,000
|
$
|
50,000
|
||||
Accounts
Payable
|
34,283
|
39,677
|
30,016
|
|||||||
Accrued
Salaries, Wages and Benefits
|
39,912
|
35,600
|
31,679
|
|||||||
Accrued
Expenses
|
35,771
|
27,639
|
35,521
|
|||||||
Advance
Tuition Payments
|
12,311
|
16,584
|
8,533
|
|||||||
Deferred
Tuition Revenue
|
167,064
|
31,769
|
151,413
|
|||||||
Total
Current Liabilities
|
289,341
|
211,269
|
307,162
|
|||||||
Other
Liabilities:
|
||||||||||
Senior
Notes
|
—
|
65,000
|
95,000
|
|||||||
Deferred
Income Taxes, Net
|
11,811
|
12,564
|
14,628
|
|||||||
Accrued
Postemployment Agreements
|
5,144
|
5,594
|
6,382
|
|||||||
Deferred
Rent and Other
|
14,855
|
13,448
|
12,742
|
|||||||
Total
Other Liabilities
|
31,810
|
96,606
|
128,752
|
|||||||
TOTAL
LIABILITIES
|
321,151
|
307,875
|
435,914
|
|||||||
SHAREHOLDERS’
EQUITY:
|
||||||||||
Common
Stock, $0.01 Par Value, 200,000,000 Shares Authorized; 70,885,000;
70,757,000 and 70,661,000 Shares Issued and Outstanding at March
31, 2007,
June 30, 2006 and March 31, 2006, Respectively
|
711
|
708
|
708
|
|||||||
Additional
Paid-in Capital
|
133,999
|
124,550
|
121,870
|
|||||||
Retained
Earnings
|
498,589
|
441,893
|
430,082
|
|||||||
Accumulated
Other Comprehensive Loss
|
(159
|
)
|
(424
|
)
|
(71
|
)
|
||||
Treasury
Stock, at Cost ( 275,221; 97,770 and 106,264 Shares, Respectively)
|
(7,130
|
)
|
(2,120
|
)
|
(2,304
|
)
|
||||
TOTAL
SHAREHOLDERS’ EQUITY
|
626,010
|
564,607
|
550,285
|
|||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
947,161
|
$
|
872,482
|
$
|
986,199
|
For
the Quarter
Ended
March 31,
|
For
the Nine Months
Ended
March 31,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
REVENUES:
|
|||||||||||||
Tuition
|
$
|
226,141
|
$
|
203,299
|
$
|
645,850
|
$
|
582,384
|
|||||
Other
Educational
|
19,684
|
15,771
|
54,794
|
42,477
|
|||||||||
Interest
|
1,956
|
1,136
|
5,326
|
1,994
|
|||||||||
Total
Revenues
|
247,781
|
220,206
|
705,970
|
626,855
|
|||||||||
COSTS
AND EXPENSES:
|
|||||||||||||
Cost
of Educational Services
|
125,815
|
115,483
|
366,699
|
338,660
|
|||||||||
Separation
Plan Severance
|
1,097
|
-
|
1,097
|
-
|
|||||||||
Gain
on Sale of Assets
|
(957
|
)
|
-
|
(20,812
|
)
|
(451
|
)
|
||||||
Student
Services and Administrative Expense
|
90,283
|
80,999
|
269,319
|
238,776
|
|||||||||
Interest
Expense
|
774
|
2,490
|
4,663
|
7,751
|
|||||||||
Total
Costs and Expenses
|
217,012
|
198,972
|
620,966
|
584,736
|
|||||||||
Income
Before Income Taxes
|
30,769
|
21,234
|
85,004
|
42,119
|
|||||||||
Income
Tax Provision
|
7,845
|
5,552
|
24,763
|
10,877
|
|||||||||
NET
INCOME
|
$
|
22,924
|
$
|
15,682
|
$
|
60,241
|
$
|
31,242
|
|||||
EARNINGS
PER COMMON SHARE:
|
|||||||||||||
Basic
|
$
|
0.32
|
$
|
0.22
|
$
|
0.85
|
$
|
0.44
|
|||||
Diluted
|
$
|
0.32
|
$
|
0.22
|
$
|
0.85
|
$
|
0.44
|
|||||
CASH
DIVIDEND PAID PER COMMON SHARE
|
$
|
-
|
$
|
-
|
$
|
0.05
|
$
|
-
|
|
For
the Nine Months
Ended
March 31,
|
||||||
2007
|
2006
|
||||||
(Dollars
in Thousands)
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
Income
|
$
|
60,241
|
$
|
31,242
|
|||
Adjustments
to Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|||||||
Stock-Based
Compensation Charge
|
4,347
|
3,286
|
|||||
Depreciation
|
26,826
|
28,043
|
|||||
Amortization
|
6,568
|
8,104
|
|||||
Provision
for Refunds and Uncollectible Accounts
|
39,184
|
39,570
|
|||||
Deferred
Income Taxes
|
(2,734
|
)
|
(4,025
|
)
|
|||
(Gain)
on Disposals of Land, Buildings and Equipment
|
(20,575
|
)
|
(390
|
)
|
|||
Changes
in Assets and Liabilities, Net of Effects from Acquisitions of
Businesses:
|
|||||||
Restricted
Cash
|
(37,412
|
)
|
(38,649
|
)
|
|||
Accounts
Receivable
|
(88,120
|
)
|
(90,802
|
)
|
|||
Inventories
|
4
|
66
|
|||||
Prepaid
Expenses and Other
|
(2,276
|
)
|
(2,881
|
)
|
|||
Accounts
Payable
|
(5,392
|
)
|
(460
|
)
|
|||
Accrued
Salaries, Wages, Benefits and Expenses
|
12,469
|
(313
|
)
|
||||
Advance
Tuition Payments
|
(4,250
|
)
|
(6,126
|
)
|
|||
Deferred
Tuition Revenue
|
135,295
|
128,713
|
|||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
124,175
|
95,378
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Capital
Expenditures
|
(27,539
|
)
|
(16,283
|
)
|
|||
Net
Proceeds from Sale of Land and Building
|
36,642
|
1,798
|
|||||
Payments
for Purchases of Businesses, Net of Cash Acquired
|
—
|
(2,530
|
)
|
||||
NET
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
9,103
|
(17,015
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from Exercise of Stock Options
|
4,738
|
2,433
|
|||||
Proceeds
from Stock Issued Under Employee Stock Purchase Plan
|
674
|
—
|
|||||
Repurchase
of Common Stock for Treasury
|
(5,317
|
)
|
—
|
||||
Cash
Dividends Paid
|
(3,545
|
)
|
—
|
||||
Excess
Tax Benefit from Stock-Based Compensation
|
180
|
—
|
|||||
Borrowings
from Revolving Credit Facility
|
40,000
|
—
|
|||||
Repayments
Under Revolving Credit Facility
|
(50,000
|
)
|
(80,000
|
)
|
|||
Repayments
Under Senior Notes
|
(115,000
|
)
|
—
|
||||
NET
CASH USED IN FINANCING ACTIVITIES
|
(128,270
|
)
|
(77,567
|
)
|
|||
Effects
of Exchange Rate Differences
|
230
|
(264
|
)
|
||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
5,238
|
532
|
|||||
Cash
and Cash Equivalents at Beginning of
Period
|
130,583
|
161,823
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
135,821
|
$
|
162,355
|
|||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Cash
Paid During the Period For:
|
|||||||
Interest
|
$
|
4,700
|
$
|
6,951
|
|||
Income
Taxes, Net
|
17,912
|
14,861
|
Options
Outstanding
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
|
Aggregate
Intrinsic
Value
($000)
|
||||||||||
Outstanding
at July 1, 2006
|
3,428,211
|
$
|
22.91
|
||||||||||
Options
Granted
|
721,150
|
$
|
22.71
|
||||||||||
Options
Exercised
|
(305,530
|
)
|
$
|
17.62
|
|||||||||
Options
Canceled
|
(104,556
|
)
|
$
|
25.99
|
|||||||||
Outstanding
at March 31, 2007
|
3,739,275
|
$
|
23.22
|
6.40
|
$
|
12,286
|
|||||||
Exercisable
at March 31, 2007
|
2,410,406
|
$
|
23.67
|
5.31
|
$
|
8,017
|
Fiscal
Year
|
|||||||
|
2007
|
2006
|
|||||
Expected
Life (in Years)
|
6.67
|
4.38
|
|||||
Expected
Volatility
|
41.51
|
%
|
41.30
|
%
|
|||
Risk-free
Interest Rate
|
4.57
|
%
|
3.80
|
%
|
|||
Dividend
Yield
|
0.46
|
%
|
-
|
||||
Pre-vesting
Forfeiture Rate
|
4.00
|
%
|
4.00
|
%
|
|
For
the Three Months
Ended
March 31,
|
For
the Nine Months
Ended
March 31,
|
|||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
(Dollars
in thousands)
|
|||||||||||||
Cost
of Educational Services
|
$
|
395
|
$
|
335
|
$
|
1,391
|
$
|
1,051
|
|||||
Student
Services and Administrative Expense
|
839
|
712
|
2,956
|
2,235
|
|||||||||
Income
Tax Benefit
|
(240
|
)
|
(274
|
)
|
(947
|
)
|
(848
|
)
|
|||||
Net
Stock-Based Compensation Expense
|
$
|
994
|
$
|
773
|
$
|
3,400
|
$
|
2,438
|
|
As
of March 31, 2007
|
||||||
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(42,979
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,617
|
)
|
||||
Class Materials
|
2,900
|
(1,250
|
)
|
||||
Trade
Names
|
110
|
(97
|
)
|
||||
Other
|
620
|
(620
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(47,563
|
)
|
||
Unamortized
Intangible Assets:
|
|||||||
Trade
Names
|
$
|
20,972
|
|||||
Trademark
|
1,645
|
||||||
Ross
Title IV Eligibility and Accreditations
|
14,100
|
||||||
Intellectual
Property
|
13,940
|
||||||
Chamberlain
Title IV Eligibility and Accreditations
|
1,200
|
||||||
Total
|
$
|
51,857
|
As
of March 31, 2006
|
|||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
||||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(35,623
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,591
|
)
|
||||
Class Materials
|
2,900
|
(1,050
|
)
|
||||
Trade
Names
|
110
|
(69
|
)
|
||||
Other
|
620
|
(618
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(39,951
|
)
|
||
Unamortized
Intangible Assets:
|
|||||||
Trade
Names
|
$
|
20,972
|
|||||
Trademark
|
1,645
|
||||||
Ross
Title IV Eligibility and Accreditations
|
14,100
|
||||||
Intellectual
Property
|
13,940
|
||||||
Chamberlain
Title IV Eligibility and Accreditations
|
1,200
|
||||||
Total
|
$
|
51,857
|
Fiscal
Year
|
|
|||
2007
|
$
|
6,843
|
||
2008
|
3,660
|
|||
2009
|
203
|
|||
2010
|
200
|
|||
2011
|
200
|
Year
1
|
27.4
|
%
|
||
Year
2
|
29.0
|
%
|
||
Year
3
|
21.0
|
%
|
||
Year
4
|
14.5
|
%
|
||
Year
5
|
8.1
|
%
|
Outstanding
Debt
at
March 31,
|
|||||||
2007
|
2006
|
||||||
Revolving
Credit Agreement:
|
|||||||
DeVry
Inc. as borrower
|
$
|
—
|
$
|
20,000
|
|||
GEI
as borrower
|
—
|
—
|
|||||
Total
|
$
|
—
|
$
|
20,000
|
|||
Senior
Notes:
|
|||||||
DeVry
Inc. as borrower
|
$
|
—
|
$
|
75,000
|
|||
GEI
as borrower
|
—
|
50,000
|
|||||
Total
|
$
|
—
|
$
|
125,000
|
|||
Total
Outstanding Debt
|
$
|
—
|
$
|
145,000
|
|||
Current
Maturities of Debt
|
—
|
50,000
|
|||||
Total
Long-term Debt
|
$
|
—
|
$
|
95,000
|
For
the Quarter
Ended
March 31,
|
For
the Nine Months
Ended
March 31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Revenues:
|
(Dollars
in Thousands)
|
||||||||||||
DeVry
University
|
$
|
192,116
|
$
|
174,504
|
$
|
552,123
|
$
|
506,899
|
|||||
Professional
and Training
|
17,569
|
15,063
|
48,732
|
37,296
|
|||||||||
Medical &
Healthcare
|
38,096
|
30,639
|
105,115
|
82,660
|
|||||||||
Total
Consolidated Revenues
|
$
|
247,781
|
$
|
220,206
|
$
|
705,970
|
$
|
626,855
|
|||||
Operating
Income:
|
|||||||||||||
DeVry
University
|
$
|
13,058
|
$
|
8,492
|
$
|
39,926
|
$
|
15,155
|
|||||
Professional
and Training
|
7,157
|
5,707
|
17,570
|
12,612
|
|||||||||
Medical &
Healthcare
|
13,519
|
12,360
|
39,280
|
30,612
|
|||||||||
Reconciling
Items:
|
|||||||||||||
Amortization
Expense
|
(1,806
|
)
|
(2,582
|
)
|
(5,418
|
)
|
(7,743
|
)
|
|||||
Interest
Expense
|
(774
|
)
|
(2,490
|
)
|
(4,663
|
)
|
(7,751
|
)
|
|||||
Depreciation
and Other
|
(385
|
)
|
(253
|
)
|
(1,691
|
)
|
(766
|
)
|
|||||
Total
Consolidated Income before Income Taxes
|
$
|
30,769
|
$
|
21,234
|
$
|
85,004
|
$
|
42,119
|
|||||
Segment
Assets:
|
|||||||||||||
DeVry
University
|
$
|
455,291
|
$
|
485,131
|
$
|
455,291
|
$
|
485,131
|
|||||
Professional
and Training
|
76,045
|
82,025
|
76,045
|
82,025
|
|||||||||
Medical &
Healthcare
|
392,398
|
390,318
|
392,398
|
390,318
|
|||||||||
Corporate
|
23,427
|
28,725
|
23,427
|
28,725
|
|||||||||
Total
Consolidated Assets
|
$
|
947,161
|
$
|
986,199
|
$
|
947,161
|
$
|
986,199
|
|||||
Additions
to Long-lived Assets:
|
|||||||||||||
DeVry
University
|
$
|
8,188
|
$
|
3,311
|
$
|
17,786
|
$
|
10,703
|
|||||
Professional
and Training
|
184
|
31
|
229
|
2,179
|
|||||||||
Medical &
Healthcare
|
2,965
|
2,095
|
9,524
|
5,401
|
|||||||||
Total
Consolidated Additions to Long-lived Assets
|
$
|
11,337
|
$
|
5,437
|
$
|
27,539
|
$
|
18,283
|
|||||
Depreciation
Expense:
|
|||||||||||||
DeVry
University
|
$
|
7,914
|
$
|
8,067
|
$
|
22,271
|
$
|
24,045
|
|||||
Professional
and Training
|
107
|
120
|
367
|
348
|
|||||||||
Medical &
Healthcare
|
1,193
|
981
|
3,447
|
2,909
|
|||||||||
Corporate
|
247
|
247
|
741
|
741
|
|||||||||
Total
Consolidated Depreciation
|
$
|
9,461
|
$
|
9,415
|
$
|
26,826
|
$
|
28,043
|
|||||
Intangible
Asset Amortization Expense:
|
|||||||||||||
DeVry
University
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
Professional
and Training
|
63
|
67
|
190
|
200
|
|||||||||
Medical &
Healthcare
|
1,743
|
2,515
|
5,228
|
7,543
|
|||||||||
Total
Consolidated Amortization
|
$
|
1,806
|
$
|
2,582
|
$
|
5,418
|
$
|
7,743
|
For
the Quarter
Ended
March 31,
|
For
the Nine Months
Ended
March 31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Revenues
from Unaffiliated Customers:
|
|||||||||||||
Domestic
Operations
|
$
|
209,946
|
$
|
184,450
|
$
|
601,287
|
$
|
537,368
|
|||||
International
Operations:
|
|||||||||||||
Dominica
and St. Kitts/Nevis
|
34,473
|
32,748
|
94,985
|
81,176
|
|||||||||
Other
|
3,362
|
3,008
|
9,698
|
8,311
|
|||||||||
Total
International
|
37,835
|
35,756
|
104,683
|
89,487
|
|||||||||
Consolidated
|
$
|
247,781
|
$
|
220,206
|
$
|
705,970
|
$
|
626,855
|
|||||
Long-lived
Assets:
|
|||||||||||||
Domestic
Operations
|
$
|
317,158
|
$
|
341,495
|
$
|
317,158
|
$
|
341,495
|
|||||
International
Operations:
|
|||||||||||||
Dominica
and St. Kitts/Nevis
|
309,538
|
306,371
|
309,538
|
306,371
|
|||||||||
Other
|
290
|
297
|
290
|
297
|
|||||||||
Total
International
|
309,828
|
306,668
|
309,828
|
306,668
|
|||||||||
Consolidated
|
$
|
626,986
|
$
|
648,163
|
$
|
626,986
|
$
|
648,163
|
·
|
Total
revenues and operating profits increased at all three of DeVry’s business
segments primarily due to continued enrollment growth, sales of
review
course materials and improved operational execution, while at the
same
time making investments to support future
growth.
|
·
|
The
Spring 2007 term marked DeVry University’s seventh consecutive period of
positive undergraduate new student growth and the fourth consecutive
period of positive total student enrollment growth.
|
·
|
In
connection with DeVry’s real estate optimization strategy, excess land
adjacent to the DeVry University campus in Tinley Park, Illinois
was sold
for $1.9 million resulting in a pre-tax gain of $1.0 million. This
pre-tax
gain was offset by a severance charge of $1.1 million pre-tax for
the
previously announced Voluntary Separation Plan for eligible DeVry
University campus-based
employees.
|
·
|
DeVry’s
financial position continued to strengthen as it eliminated all
debt by
repaying $50 million of outstanding revolver borrowings and ended
the
quarter with $136 million of cash.
|
·
|
DeVry
repurchased approximately 194,000 shares of its common stock at
a total
cost of approximately $5.3 million. The stock repurchase program,
which
was approved by its Board of Directors in November 2006, allows
DeVry to
buy back up to $35.0 million of its common stock within the next
two
years.
|
For
the Three Months
Ended
March 31,
|
For
the Nine Months
Ended
March 31,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Net
Income
|
$
|
22,924
|
$
|
15,682
|
$
|
60,241
|
$
|
31,242
|
|||||
Earnings
per Share (diluted)
|
$
|
0.32
|
$
|
0.22
|
$
|
0.85
|
$
|
0.44
|
|||||
Gain
on Sale of Assets (net of tax)
|
$
|
571
|
--
|
$
|
12,411
|
$
|
273
|
||||||
Earnings
per Share (diluted)
|
$
|
0.01
|
--
|
$
|
0.17
|
--
|
|||||||
Separation
Plan Severance (net of tax)
|
$
|
(654
|
)
|
--
|
$
|
(654
|
)
|
--
|
|||||
Earnings
per Share (diluted)
|
$
|
(0.01
|
)
|
--
|
$
|
(0.01
|
)
|
--
|
|||||
Income
Excluding the Gain on Sale of Assets and Separation Plan Severance
(net of
tax)
|
$
|
23,007
|
$
|
15,682
|
$
|
48,484
|
$
|
30,969
|
|||||
Earnings
per Share (diluted)
|
$
|
0.32
|
$
|
0.22
|
$
|
0.68
|
$
|
0.44
|
For
the Three Months Ended March 31,
|
For
the Nine Months Ended March 31,
|
||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||
Revenues
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Cost
of Educational Services
|
50.8
|
%
|
52.4
|
%
|
51.9
|
%
|
54.0
|
%
|
|||||
Separation
Plan Severance
|
0.4
|
%
|
—
|
0.2
|
%
|
—
|
|||||||
Gain
on Sale of Assets
|
(0.4
|
%)
|
—
|
(2.9
|
%)
|
(0.1
|
%)
|
||||||
Student
Services & Admin. Exp
|
36.4
|
%
|
36.8
|
%
|
38.1
|
%
|
38.1
|
%
|
|||||
Interest
Expense
|
0.3
|
%
|
1.1
|
%
|
0.7
|
%
|
1.2
|
%
|
|||||
Total
Costs and Expenses
|
87.6
|
%
|
90.4
|
%
|
88.0
|
%
|
93.3
|
%
|
|||||
Income
Before Income Taxes
|
12.4
|
%
|
9.6
|
%
|
12.0
|
%
|
6.7
|
%
|
|||||
Income
Tax Provision
|
3.2
|
%
|
2.5
|
%
|
3.5
|
%
|
1.7
|
%
|
|||||
Net
Income
|
9.3
|
%
|
7.1
|
%
|
8.5
|
%
|
5.0
|
%
|
·
|
Increased
by 2.5% from summer 2005 (36,220 students) to summer 2006 (37,132
students);
|
·
|
Increased
by 4.9% from fall 2005 (38,546 students) to fall 2006 (40,434 students);
and
|
·
|
Increased
by 5.5% from spring 2006 (38,523 students) to spring 2007 (40,637
students). This was DeVry University’s fourth consecutive period of
positive total undergraduate student enrollment
growth.
|
·
|
Increased
by 12.2% from summer 2005 (11,293 students) to summer 2006 (12,671
students);
|
·
|
Increased
by 11.9% from fall 2005 (10,663 students) to fall 2006 (11,930
students);
and
|
·
|
Increased
by 6.9% from spring 2006 (10,359 students) to spring 2007 (11,075
students). The spring 2007 term was the seventh consecutive term
in which
new undergraduate student enrollments increased from the year-ago
level.
|
·
|
Increased
by 10.3% from the July 2005 session (11,434 coursetakers) to the
July 2006
(12,617 coursetakers) session;
|
·
|
Increased
by 10.5% from the September 2005 session (12,732 coursetakers)
to the
September 2006 session (14,069
coursetakers);
|
·
|
Increased
by 8.9% from the November 2005 session (12,777 coursetakers) to
the
November 2006 session (13,920 coursetakers);
|
·
|
Increased
by 10.9% from the January 2006 session (13,776 coursetakers) to
the
January 2007 session (15,278 coursetakers);
and
|
·
|
Increased
by 5.2% from the March 2006 session (14,029 coursetakers) to the
March
2007 session (14,756 coursetakers).
|
·
|
Undergraduate
program tuition increased by approximately 4.5% in July
2006; and
|
·
|
Graduate
school program tuition increased by approximately 4.5% for the
July 2006
session following a 5.0% increase for the September 2005
session.
|
·
|
Increased
by 13.2% from May 2005 (3,029 students) to May 2006 (3,428
students);
|
·
|
Increased
by 15.4% from September 2005 (3,227 students) to September 2006
(3,724
students); and
|
·
|
Increased
by 14.8% from January 2006 (3,264 students) to January 2007 (3,747
students).
|
·
|
Increased
by 63.8% from May 2005 (268 students) to May 2006 (439
students);
|
·
|
Increased
by 9.2% from September 2005 (575 students) to September 2006 (628
students); and
|
·
|
Increased
by 28.2% from January 2006 (387 students) to January 2007 (496
students).
|
·
|
Tuition
and fees for the Ross University beginning basic sciences programs
increased by approximately 5% for the September 2006 term;
and
|
·
|
Tuition
and fees for the Ross University final clinical portion of the
programs
increased by approximately 5% as compared to the year-ago
quarter.
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price Paid
per
Share
|
Total
Number of
Shares
Purchased
as
part of Publicly
Announced
Plans
or
Programs1
|
Approximate
Dollar
Value
of Shares that
May Yet Be Purchased
Under
the Plans or
Programs1
|
|||||||||
January
2007
|
-
|
-
|
-
|
$
|
35,000,000
|
||||||||
February
2007
|
38,300
|
$
|
28.85
|
38,300
|
33,895,219
|
||||||||
March
2007
|
155,273
|
$
|
27.13
|
155,273
|
29,682,868
|
||||||||
Total
|
193,573
|
$
|
27.47
|
193,573
|
$
|
29,682,868
|
Period
|
Total
Number of
Shares
Purchased2
|
Average
Price Paid
per
Share
|
Total
Number of
Shares
Purchased
as
part of Publicly
Announced
Plans
or
Programs
|
Approximate
Dollar
Value
of Shares that
May Yet Be Purchased
Under
the Plans or
Programs
|
|||||||||
January
2007
|
93
|
$
|
29.78
|
N/A
|
N/A
|
||||||||
February
2007
|
4,897
|
$
|
28.50
|
N/A
|
N/A
|
||||||||
March
2007
|
-
|
-
|
N/A
|
N/A
|
|||||||||
Total
|
4,990
|
$
|
28.52
|
N/A
|
N/A
|
Certification
Pursuant to Rules 13a-14(a) and 15d-14(a) under the United States
Securities Exchange Act of 1934, as Amended.
|
||
Certification
Pursuant to Title 18 of the United States Code Section
1350
|
DeVry
Inc.
|
||
Date:
May 9, 2007
|
By
|
/s/ Daniel
M. Hamburger
|
Daniel
M. Hamburger
|
||
President
and Chief Executive Officer
|
||
Date:
May 9, 2007
|
By
|
/s/ Richard
M. Gunst
|
Richard
M. Gunst
|
||
Senior
Vice President and Chief Financial
Officer
|