DeVry Inc. Announces Second-Quarter 2013 Results
DeVry Inc. Announces Second-Quarter 2013 Results
Business Wire
DOWNERS GROVE, Ill. -- February 6, 2013
DeVry Inc. (NYSE: DV), a global provider of educational services, today
reported academic, operational and financial results for its fiscal 2013
second-quarter ended Dec. 31, 2012. DeVry also reported enrollment results at
DeVry Medical International, Chamberlain College of Nursing, Carrington
Colleges Group, and DeVry University and its Keller Graduate School of
Management.
Academic and operational accomplishments included:
* System-wide, 94 percent of graduates of Chamberlain’s Bachelor of Science
in Nursing (BSN) campus programs passed the National Council Licensure
Examination
* Narrowing rate of decline in new undergraduate enrollment from the
November to January sessions at DeVry University
* 13 percent increase in new enrollments at Carrington versus the prior year
* 26 percent increase in total enrollments at Chamberlain in the January
session versus the prior year
* 5 percent enrollment growth at DeVry Medical International in the January
term versus the prior year
* 69 percent revenue growth at DeVry Brasil in the quarter
Selected financial data for the three months ended Dec. 31, 2012:
* Revenues decreased 3.6 percent to $505 million
* Reported net income increased to $50 million from $9 million last year,
and net income excluding discrete items was $56 million, down 10 percent
* Reported diluted earnings per share increased to $0.78 from $0.13 per
share last year, and earnings per share excluding discrete items was $0.87
per share, down 5 percent
Selected financial data for the six months ended Dec. 31, 2012:
* Revenues decreased 5.3 percent to $988 million
* Reported net income increased to $82 million from $66 million last year,
and net income excluding discrete items was $88 million, down 26 percent
* Reported diluted earnings per share increased to $1.27 from $0.97 per
share last year, and earnings per share excluding discrete items was $1.36
per share, down 22 percent
* Operating cash flow was $180 million, compared to $219 million last year
* Repurchased 1,669,718 shares of DeVry common stock for approximately $38.6
million, at an average price of $23.10. DeVry completed its seventh share
repurchase program and began its eighth, $100 million program.
Reported results for both the current and prior year periods include discrete
items. The results for the three and six months ended Dec. 31, 2012, include a
$5.9 million after-tax, restructuring charge related to the decisions to
relocate and consolidate facilities at DeVry Online Services, Carrington
Colleges and DeVry University. The results for the three and six months ended
Dec. 31, 2011, include impairment charges of $55.8 million, after-tax, and a
$2.2 million gain, net of tax.
DeVry’s results reflect the progress of its performance improvement plan. The
plan is focused on aligning its cost structure to enrollment levels; regaining
enrollment growth momentum; and making targeted investments to drive growth.
DeVry now expects to realize at least $80 million in cost reductions, up from
the $60 million previously projected for the fiscal year.
“We made solid progress on our performance improvement plan at Carrington
Colleges Group, achieving growth in both new and total students in the
quarter,” said Daniel Hamburger, DeVry’s president and chief executive
officer. “While the pace of recovery in new undergraduate student enrollment
at DeVry University is slower than we would like, we are encouraged by the
improvement from November to January sessions. Overall, DeVry’s focus on
quality and diversification is helping us as we work through the cyclical
weakness.”
Organizational Highlights
Business, Technology and Management Segment
DeVry University
For the November 2012 session at DeVry University new undergraduate
enrollments decreased 15.5 percent to 5,482 compared to 6,488 the previous
year. Total undergraduate students decreased 17.6 percent to 49,515 versus
60,103 for the session a year ago. In addition to overall cyclical weakness
across higher education, adjustments following recent workforce reductions
combined with the impacts of Hurricane Sandy affected November enrollment
results. The rate of decline in new student enrollment narrowed in the January
session. January 2013 new undergraduate enrollments decreased 4.7 percent to
5,330 compared to 5,593 the previous year. Total undergraduate students
decreased 14.9 percent to 53,138 versus 62,435 for the January session a year
ago.
At the graduate level, including Keller Graduate School of Management, total
coursetakers in the November session decreased 16.0 percent to 19,540 versus
23,264 for the same session a year ago. For the January session, total
graduate coursetakers decreased 12.1 percent to 21,131 versus 24,029 for the
same session a year ago.
The total number of online undergraduate and graduate coursetakers in the
November session decreased 11.7 percent to 62,899 versus 71,255 in the same
session a year ago. For January, total online coursetakers decreased 9.9
percent to 67,983 versus 75,487.
Medical and Healthcare Segment
DeVry Medical International
In the January 2013 term for DeVry Medical International, new students
increased 0.3 percent to 603 compared to 601 students for prior year session.
Total students increased 4.9 percent to 6,318 compared to 6,024 students in
the same session last year. Ross University School of Medicine recently
received a 5-year reaccreditation from the Dominica Medical Board. Expansion
of American University of the Caribbean School of Medicine’s campus continues
with a new academic building under construction. Completion is scheduled for
fall 2013.
Chamberlain College of Nursing
Chamberlain's new student enrollment in the November session increased 13.5
percent to 2,121 students as compared to 1,868 in November 2011. Total student
enrollment increased 15.3 percent to 12,247 students compared with 10,619
during the same period last year.
For the January session, new student enrollment increased 87.8 percent to
2,120 students, compared to 1,129 in January 2012. New student enrollment was
positively impacted by a change to the academic calendar that increased the
number of enrollment periods for campus-based students this fiscal year. There
were no campus based new student enrollments in the January 2012 session.
Chamberlain also experienced record enrollment in its RN to BSN and Master of
Science in Nursing degree programs in the January 2013 session. Total student
enrollment rose 26.0 percent to 13,714 students compared with 10,888 in the
previous year.
During the quarter, the Sigma Theta Tau International and Chamberlain College
of Nursing Center for Excellence in Nursing Education was established. This
partnership with the honor society of nursing will provide career and
leadership development for nurse educators, and develop programs to promote
nursing education globally.
Chamberlain recently received approvals from the Higher Learning Commission
for a Doctor of Nursing Practice program, which will begin in May. In
addition, Chamberlain received approval for its Tinley Park, Ill., location,
which is also scheduled to open in May.
Carrington Colleges Group
For the three month period ending Dec. 31, 2012, new student enrollment for
Carrington Colleges Group increased 12.7 percent to 1,763 versus 1,565 in the
previous year marking its second consecutive quarter with new student
enrollment growth. Total enrollment returned to growth, increasing 0.4 percent
to 7,405 compared to 7,379 in the prior year.
International, K-12, and Professional Education Segment
Becker Professional Education
During the quarter, Becker released the latest version of its CPA Exam Review
course. The enhanced course offers students the flexibility to study anywhere,
anytime from any internet-connected computer or mobile device, as well as to
download materials and work offline. Year to date, Becker’s revenue has grown
six percent driven by the acquisition of Falcon Physician Reviews.
DeVry Brasil
The integrations of DeVry Brasil’s most recent acquisitions, Faculdade Boa
Viagem (FBV) and Faculdade do Vale do Ipojuca (FAVIP), are progressing ahead
of expectations. DeVry Brasil continues to expand its programs and services,
while exploring further opportunities to serve students throughout Brazil.
Year to date revenues have grown 62 percent, fueled in part by the
acquisitions of FBV and FAVIP.
Balance Sheet/Cash Flow
For the first six months of fiscal year 2013, DeVry generated $180 million of
operating cash flow. As of Dec. 31, 2012, cash, marketable securities and
investment balances totaled $219.0 million and there were no outstanding
borrowings.
Share Repurchase Plan
During the quarter, DeVry repurchased 538,844 shares of its common stock for
approximately $13 million, at an average cost of $23.84 per share. During the
first six months, 1,669,718 shares of DeVry common stock was repurchased for
approximately $38.6 million, at an average price of $23.10.
Conference Call and Webcast Information
DeVry will host a conference call on Feb. 6, 2013, at 4:00 p.m. Central
Standard Time (5:00 p.m. Eastern Standard Time) to discuss its fiscal 2013
second-quarter results. The conference call will be led by Daniel Hamburger,
president and CEO, 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 800-659-2032 (domestic) or
617-614-2712 (international). Use passcode 52935500 or say “DeVry Call”. DeVry
will also broadcast the conference call live via the web. Interested parties
may access the webcast through the Investor Relations section of DeVry’s
website, or http://www.media-server.com/m/p/pnh7d7g3. 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 March 5, 11:59 p.m. To
access the replay, dial 888-286-8010 (domestic) or 617-801-6888
(international), passcode 74616286. To access the webcast replay, please visit
the company's website, or http://www.media-server.com/m/p/pnh7d7g3.
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, technology, 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)
Second Quarter
FY 2013 FY 2012 Change
Revenues $ 505,244 $ 524,049 -3.6 %
Net Income $ 50,286 $ 8,865 +467.2 %
Earnings per Share (diluted) $ 0.78 $ 0.13 +500.0 %
Number of common shares (diluted) 64,536 68,076 -5.2 %
Six Months
FY 2013 FY 2012 Change
Revenues $ 987,980 $ 1,043,087 -5.3 %
Net Income $ 82,275 $ 66,349 +24.0 %
Earnings per Share (diluted) $ 1.27 $ 0.97 +30.9 %
Number of common shares (diluted) 64,788 68,742 -5.7 %
Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule
During the second quarter of fiscal year 2013, DeVry recorded a restructuring
charge for the write-down of land, building and equipment related to its
decision to relocate a facility in Wood Dale, IL, in order to consolidate
administrative operations in the Chicagoland area. DeVry also recorded
restructuring charges to consolidate facilities at Carrington College and
DeVry University. During the second quarter of fiscal year 2012, DeVry
recorded impairment charges related to its Carrington Colleges reporting unit.
DeVry also recorded a gain from the sale of Becker’s Stalla CFA review
operations. The following table illustrates the effects of these restructuring
and impairment charges and gain on sale of assets on DeVry’s results.
Management believes that the non-GAAP disclosure of 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 restructuring and 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 Three Months For The Six Months
Ended December 31: Ended December 31:
2013 2012 2013 2012
Net Income $ 50,286 $ 8,865 $ 82,275 $ 66,349
Earnings per Share $ 0.78 $ 0.13 $ 1.27 $ 0.97
(diluted)
Restructuring Expense (net $ 5,940 -- $ 5,940 --
of tax)
Effect on Earnings per $ 0.09 -- $ 0.09 --
Share (diluted)
Impairment Charges (net of -- $ 55,751 -- $ 55,751
tax)
Effect on Earnings per -- $ 0.82 -- $ 0.81
Share (diluted)
Gain on Sale of Assets (net -- $ (2,216 ) -- $ (2,216 )
of tax)
Effect on Earnings per -- $ (0.03 ) -- $ (0.03 )
Share (diluted)
Net Income Excluding the
Restructuring
and Impairment Charges and
Gain
on Sale of Assets and $ 56,226 $ 62,400 $ 88,215 $ 119,884
Severance
Earnings per Share
Excluding the
Restructuring and
Impairment Charges
and Gain on Sale of Assets $ 0.87 $ 0.92 $ 1.36 $ 1.74
(diluted)
November 2012 and January 2013 Enrollment
Results
2011/12 2012/13 % Change
DeVry Inc. Student Enrollments^(1)
New students 15,195 16,047 +5.6
Total students 131,134 124,007 -5.4
DeVry University
Undergraduate – November Session
New students 6,488 5,482 -15.5
Total students 60,103 49,515 -17.6
Undergraduate – January Session
New students 5,593 5,330 -4.7
Total students 62,435 53,138 -14.9
Graduate – November Session
Coursetakers^(2) 23,264 19,540 -16.0
Graduate – January Session
Coursetakers^(2) 24,029 21,131 -12.1
Online
November Session
Total coursetakers^(2)(3) 71,255 62,899 -11.7
January Session
Total coursetakers^(2)(3) 75,487 67,983 -9.9
Chamberlain College of Nursing
November Session
New students 1,868 2,121 +13.5
Total students 10,619 12,247 +15.3
January Session
New students 1,129 2,120 +87.8
Total students 10,888 13,714 +26.0
The Carrington Colleges Group
3 months ending Dec. 31, 2012
New students 1,565 1,763 +12.7
Total students 7,379 7,405 +0.4
DeVry Medical International
January Term
New students 601 603 +0.3
Total students 6,024 6,318 +4.9
1. Excludes Becker and Advanced Academics. Includes enrollments at DeVry
Brasil reported in October 2012.
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.
Chart 1: DeVry Inc. Remaining Calendar 2013 Announcements & Events
April 23, 2013 Fiscal 2013 Third Quarter Results and March Enrollment
DeVry University
Chamberlain College of Nursing
Carrington Colleges Group
DeVry Brasil
August 8, 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 September
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
December 31, June 30, December 31,
2012 2012 2011
ASSETS
Current Assets
Cash and Cash $ 216,259 $ 174,076 $ 285,749
Equivalents
Marketable Securities 2,752 2,632 2,499
and Investments
Restricted Cash 3,894 2,498 30,799
Accounts Receivable, 139,658 113,911 145,488
Net
Deferred Income 25,176 27,845 21,760
Taxes, Net
Refundable Income 23,827 40,278 7,560
Taxes
Prepaid Expenses and 39,205 39,874 34,925
Other
Total
Current 450,771 401,114 528,780
Assets
Land, Buildings and
Equipment
Land 65,963 65,172 61,360
Buildings 388,259 386,028 366,102
Equipment 472,042 433,949 444,851
Construction In 48,143 61,752 47,926
Progress
974,407 946,901 920,239
Accumulated
Depreciation and (415,050 ) (387,924 ) (395,331 )
Amortization
Land,
Buildings
and 559,357 558,977 524,908
Equipment,
Net
Other Assets
Intangible Assets, 294,177 285,220 276,448
Net
Goodwill 566,199 549,961 553,456
Perkins Program Fund, 13,450 13,450 13,450
Net
Other Assets 30,112 29,894 27,290
Total Other 903,938 878,525 870,644
Assets
TOTAL ASSETS $ 1,914,066 $ 1,838,616 $ 1,924,332
DEVRY INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
December 31, June 30, December 31,
2012 2012 2011
LIABILITIES
Current Liabilities
Accounts Payable $ 60,669 $ 63,094 $ 51,413
Accrued Salaries, 64,043 77,741 58,792
Wages and Benefits
Accrued Expenses 71,466 76,243 37,217
Advance Tuition 32,159 20,580 19,701
Payments
Deferred Tuition 109,191 77,551 259,967
Revenue
Total Current 337,528 315,209 427,090
Liabilities
Non-Current Liabilities
Deferred Income Taxes, 63,946 62,276 64,570
Net
Deferred Rent and 107,333 96,496 71,001
Other
Total
Non-current 171,279 158,772 135,571
Liabilities
TOTAL LIABILITIES 508,807 473,981 562,661
NON-CONTROLLING INTEREST 8,901 8,242 7,632
SHAREHOLDERS' EQUITY
Common Stock, $0.01 par
value, 200,000,000 Shares
Authorized;
63,287,000, 64,722,000 and
66,569,000 Shares issued
and outstanding at December
31, 2012, June 30, 2012
and December 31, 2011, 744 741 740
respectively.
Additional Paid-in 280,901 272,962 260,755
Capital
Retained Earnings 1,560,130 1,488,988 1,423,651
Accumulated Other (6,696 ) (5,889 ) 4,458
Comprehensive Income
Treasury Stock, at Cost
(11,079,000, 9,386,000 and
7,416,000
Shares, Respectively) (438,721 ) (400,409 ) (335,565 )
TOTAL SHAREHOLDERS' EQUITY 1,396,358 1,356,393 1,354,039
TOTAL LIABILITIES AND $ 1,914,066 $ 1,838,616 $ 1,924,332
SHAREHOLDERS' EQUITY
DEVRY INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
For The Quarter For The Six Months
Ended December 31, Ended December 31,
2012 2011 2012 2011
REVENUES:
Tuition $ 476,459 $ 496,294 $ 927,960 $ 982,781
Other 28,785 27,755 60,020 60,306
Educational
Total 505,244 524,049 987,980 1,043,087
Revenues
OPERATING COSTS
AND EXPENSES:
Cost of
Educational 243,401 241,212 485,946 479,460
Services
Student Services
and 186,454 194,042 380,855 394,967
Administrative
Expense
Restructuring 9,484 - 9,484 -
Charges
Asset
Impairment - 75,039 - 75,039
Charges
Total
Operating 439,339 510,293 876,285 949,466
Costs and
Expenses
Operating 65,905 13,756 111,695 93,621
Income
INTEREST AND OTHER
INCOME (EXPENSE):
Interest 230 226 791 410
Income
Interest (759 ) (481 ) (2,250 ) (1,003 )
Expense
Net Gain on - 3,695 - 3,695
Sale of Assets
Net Interest
and Other (529 ) 3,440 (1,459 ) 3,102
Income
(Expense)
Income Before 65,376 17,196 110,236 96,723
Income Taxes
Income Tax 14,152 7,916 27,190 30,131
Provision
NET INCOME 51,224 9,280 83,046 66,592
Net Income
Attributable to (938 ) (415 ) (771 ) (243 )
Noncontrolling
Interest
NET INCOME
ATTRIBUTABLE TO $ 50,286 $ 8,865 $ 82,275 $ 66,349
DEVRY INC.
EARNINGS PER
COMMON SHARE
ATTRIBUTABLE
TO DEVRY INC.
SHAREHOLDERS
Basic $ 0.78 $ 0.13 $ 1.27 $ 0.97
Diluted $ 0.78 $ 0.13 $ 1.27 $ 0.97
Cash Dividend
Declared per $ 0.17 $ 0.15 $ 0.17 $ 0.15
Common Share
DEVRY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Six Months
Ended December 31,
2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 83,046 $ 66,592
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Stock-Based Compensation Expense 8,370 8,854
Depreciation 42,219 36,959
Amortization 5,019 5,372
Impairment of Goodwill and Intangible - 75,039
Assets
Provision for Refunds and Uncollectible 41,094 48,595
Accounts
Deferred Income Taxes 2,017 (1,765 )
Loss on Disposals of Land, Buildings and 2,237 488
Equipment
Unrealized Loss on Assets Held for Sale 6,250 -
Realized Gain on Sale of Assets - (3,695 )
Changes in Assets and Liabilities, Net
of Effects from
Acquisitions and Divestitures of
Businesses:
Restricted Cash (1,396 ) (28,491 )
Accounts Receivable (63,462 ) (79,995 )
Prepaid Expenses And 25,691 (5,820 )
Other
Accounts Payable (2,426 ) (13,121 )
Accrued Salaries, Wages, (11,510 ) (67,398 )
Expenses and Benefits
Advance Tuition Payments 11,416 (2,379 )
Deferred Tuition Revenue 31,640 180,061
NET CASH PROVIDED BY OPERATING ACTIVITIES 180,205 219,296
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (48,185 ) (63,027 )
Marketable Securities Purchased (82 ) (58 )
Marketable Securities Sales - -
Payment for Purchase of Business, Net of Cash (31,386 ) (225,903 )
Acquired
Cash Received from Sale of Assets - 4,475
NET CASH USED IN INVESTING ACTIVITIES (79,653 ) (284,513 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 1,139 3,524
Proceeds from Stock issued Under Employee Stock 756 792
Purchase Plan
Repurchase of Common Stock for Treasury (38,567 ) (92,033 )
Cash Dividends Paid (20,707 ) (8,285 )
Excess Tax Benefit from Stock-Based Payments 58 272
Payment of Debt Financing Fees - (70 )
NET CASH USED IN FINANCING ACTIVITIES (57,321 ) (95,800 )
Effects of Exchange Rate Differences (1,048 ) (379 )
NET INCREASE (DECREASE) IN CASH AND CASH 42,183 (161,396 )
EQUIVALENTS
Cash and Cash Equivalents at Beginning of 174,076 447,145
Period
Cash and Cash Equivalents at End of Period $ 216,259 $ 285,749
DEVRY INC.
SEGMENT INFORMATION
(Dollars in Thousands)
(Unaudited)
PRELIMINARY
For The Quarter For The Six Months
Ended December 31, Ended December 31,
Increase Increase
2012 2011 (Decrease) 2012 2011 (Decrease)
REVENUES:
Business,
Technology and $ 280,239 $ 325,573 -13.9 % $ 564,853 $ 663,169 -14.8 %
Management
Medical and 167,746 153,520 9.3 % 326,103 300,973 8.3 %
Healthcare
International,
K-12 and 57,259 44,956 27.4 % 97,024 78,945 22.9 %
Professional
Education
Total
Consolidated 505,244 524,049 -3.6 % 987,980 1,043,087 -5.3 %
Revenues
OPERATING
INCOME:
Business,
Technology and 38,835 57,821 -32.8 % 64,405 119,183 -46.0 %
Management
Medical and 26,705 (51,933 ) NM 51,887 (28,644 ) NM
Healthcare
International,
K-12 and 13,937 10,151 37.3 % 13,628 7,164 90.2 %
Professional
Education
Reconciling
Items:
Amortization (2,412 ) (2,726 ) -11.5 % (4,690 ) (5,044 ) -7.0 %
Expense
Depreciation (11,160 ) 443 NM (13,535 ) 962 NM
and Other
Total
Consolidated 65,905 13,756 379.1 % 111,695 93,621 19.3 %
Operating
Income
INTEREST AND
OTHER INCOME
(EXPENSE):
Interest 230 226 1.8 % 791 410 92.9 %
Income
Interest (759 ) (481 ) 57.8 % (2,250 ) (1,003 ) 124.3 %
Expense
Net Gain on
Sale of - 3,695 NM - 3,695 NM
Assets
Net Interest
and Other (529 ) 3,440 -115.4 % (1,459 ) 3,102 -147.0 %
Income
(Expense)
Total
Consolidated $ 65,376 $ 17,196 280.2 % $ 110,236 $ 96,723 14.0 %
Income before
Income Taxes
Restructuring charges were recorded for the three and six months ended
December 31, 2012. These charges are related to DeVry Inc. (not related to any
segment), the Business, Technology and Management segment and DeVry's
Carrington Colleges Group which is part of the Medical and Healthcare segment.
Intangible asset and goodwill impairment charges were recorded for the three
and six month periods ended December 31, 2011. These charges are related to
DeVry's Carrington Colleges Group, Inc. The following table illustrates the
effects of these impairment charges on the operating income of the Business,
Technology and Management segment and 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 restructuring and 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 Six Months
Ended December 31, Ended December 31,
Increase Increase
2012 2011 (Decrease) 2012 2011 (Decrease)
Business,
Technology and
Management $ 38,835 $ 57,821 -32.8 % $ 64,405 $ 119,183 -46.0 %
Operating
Income
Restructuring 200 - NM 200 - NM
Charge
Business,
Technology and
Management
Operating
Income
Excluding
Restructuring $ 39,035 $ 57,821 -32.5 % $ 64,605 $ 119,183 -45.8 %
Charge
Medical and
Healthcare $ 26,705 $ (51,933 ) NM $ 51,887 $ (28,644 ) NM
Operating
Income
Restructuring 1,416 - NM 1,416 - NM
Charge
Asset
Impairment - 75,039 NM - 75,039 NM
Charge
Medical and
Healthcare
Operating
Income
Excluding
Charge for $ 28,121 $ 23,106 21.7 % $ 53,303 $ 46,395 14.9 %
Asset
Impairments
Contact:
DeVry Inc.
Investor Contact:
Joan Bates, (630) 353-3800
jbates@devry.com
or
Media Contact:
Larry Larsen, (312) 895-4717
llarsen@sardverb.com
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