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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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