DeVry University New Undergraduate Students Increased 9.7 Percent and
Total Undergraduate Students Increased 9.8 Percent
DeVry Inc. -- (NYSE: DV), an international higher education company, reported financial results for the fiscal 2007 fourth quarter and year end. DeVry Inc. also announced enrollments at DeVry University, Keller Graduate School of Management, Ross University and Chamberlain College of Nursing.
Revenues for the fourth quarter of fiscal 2007 increased 8.5 percent to $232.8 million, compared with $214.7 million for the same quarter a year ago. Full-year fiscal 2007 revenues were up 11.2 percent to $933.5 million, compared to $839.5 million last year. The revenue increase is being driven by enrollment growth across all of the company’s operating segments.
Net income increased 35 percent for the quarter to $15.9 million, or $0.22 per fully diluted share, compared with $11.8 million, or $0.17 per fully diluted share, for the same period last year. For the twelve months of fiscal 2007, net income increased 77 percent to a record $76.2 million, or $1.07 per fully diluted share, compared with $43.1 million, or $0.61 per fully diluted share, for the twelve months of fiscal 2006.
These results include the impact of real estate sales and severance charges. Fiscal 2007 full-year results include pre-tax gains totaling approximately $20.8 million from the sale of the West Hills facility in the first quarter and Tinley Park excess land in the third quarter. Partially offsetting these gains is a $6.3 million severance charge related to workforce reductions at DeVry University campuses, with $1.1 million occurring in the third quarter and $5.2 million in the fourth quarter, consistent with the company’s announcement in April 2007. Non-GAAP earnings per share would be $0.26 in the quarter excluding the impact of the severance charge and $0.94 for the full year excluding the real estate gains and severance charges (see “Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule”).
Full-year results for fiscal years 2007 and 2006 reflect a revision in the presentation of the income statement, whereby interest income is no longer included in the revenue line. Interest income is now presented with interest expense below the operating income line. This revision provides a better presentation of operating income and comparison of interest income and interest expense. Through a Form 8-K filing today, the company provided revised income statements for the last three fiscal years in total and for the last two fiscal years by quarter.
“We achieved record earnings this fiscal year only two years following the launch of our turnaround plan, and I’m pleased to say that DeVry is back on a growth plan,” said Daniel M. Hamburger, president and chief executive officer. “We see tremendous opportunity in front of us and look forward to continuing the positive momentum in fiscal 2008 and beyond.”
At DeVry University and its Keller Graduate School of Management, enrollments continued to increase in summer 2007. New undergraduate student enrollment in summer 2007 increased 9.7 percent to 13,906 students, compared with 12,671 students in summer 2006. Total undergraduate student enrollment in summer 2007 increased 9.8 percent to 40,774 students, compared with 37,132 students in the previous year.
For the May 2007 session, the number of graduate coursetakers increased 8.7 percent to 14,290 coursetakers, compared with 13,148 coursetakers in May 2007. In the July 2007 session, graduate coursetakers increased 11.1 percent to 14,023 coursetakers from 12,617 in the previous year.
The total number of online undergraduate and graduate coursetakers at DeVry University in summer 2007 increased 26.0 percent to 36,001 coursetakers, compared with 28,580 coursetakers last year.
During the fourth quarter, DeVry University opened a new university center in Nashville, Tenn., which will offer Associate, Bachelor's and Master's degree programs. A new university center was also opened in the Detroit area, offering a Bachelor's degree-completion program well suited to the needs of adult workers seeking to change careers. Recently DeVry University announced its plans to open its 87th location with a new center in Bakersfield, Calif. Continuing its real estate optimization efforts, the University recently signed a new lease for its Dallas facility, which significantly decreased its leased space and will result in annualized savings of approximately $900,000. For a list of selected examples of real estate optimization actions to date, refer to chart 2.
At Ross University, new students decreased 5.2 percent to 416 in the May 2007 term, compared with 439 students in the same term last year. The decrease is related to a higher number of transfer students in the May 2006 term when Ross enrolled 109 students from another school. Total students increased 9.9 percent to 3,767, compared with 3,428 last year.
In summer 2007, Chamberlain College of Nursing enrolled 1,089 students, compared with 594 students at the same time last year, an increase of 83.3 percent. The increase in enrollments is being driven by the continued demand for nurses and the opening of the Chamberlain campus in Columbus, Ohio, in March 2007.
During fiscal 2007, more than 47,000 students enrolled in Becker Professional Review exam preparation courses, compared with approximately 43,000 students in fiscal 2006. Becker posted record revenue of $67.9 million for the 2007 fiscal year, compared to approximately $53.6 million for fiscal 2006.
In November 2006, the company adopted a stock repurchase program which allows for the repurchase of up to $35 million of its common stock over a two-year period. During the fourth quarter, the company repurchased approximately 161,900 shares of DeVry common stock for approximately $5.2 million. To date, approximately 355,500 shares of DeVry stock have been purchased on the open market as part of this program for a total of $10.5 million.
DeVry Inc. will hold a conference call to discuss its fiscal 2007 fourth-quarter and year-end results on August 13, 2007, at 3:30 p.m. Central Time (4:30 p.m. Eastern Time). 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 800-299-7635 (domestic) or 617-786-2901 (international). DeVry Inc. will also broadcast the conference call live via the Internet. Interested parties may access the Webcast through the Investor Relations section of the company's Web site, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880& eventID=1601844. (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)
Please access the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
The company will archive a telephone replay of the call until August 27, 2007. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 97269503. To access the Webcast replay, please visit the company's Web site, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=93880& eventID=1601844. (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)
About DeVry Inc.
DeVry Inc. (NYSE: DV) is the parent organization of DeVry University, Ross University, Chamberlain College of Nursing and Becker Professional Review. DeVry University, which includes Keller Graduate School of Management, offers associate, bachelor's and master's degree programs in technology, healthcare technology, business and management. Ross University, through its schools of Medicine and Veterinary Medicine, offers both doctor of medicine and doctor of veterinary medicine degree programs. Chamberlain College of Nursing offers associate and bachelor's degree programs in nursing. Becker Professional Review, which includes Stalla CFA Review, provides preparatory coursework for the certified public accountant and chartered financial analyst exams. For more information, visit http://www.devryinc.com.