DOWNERS GROVE, Ill.--(BUSINESS WIRE)--DeVry (NYSE:DV), a global provider of educational services, today reported academic, operational and financial results for its fiscal 2014 first-quarter ended Sept. 30, 2013. DeVry also reported enrollment results at DeVry Medical International, Chamberlain College of Nursing, Carrington Colleges Group, DeVry Brasil and DeVry University and its Keller Graduate School of Management.
Academic and operational accomplishments included:
- Medical and Healthcare segment revenues growing 11 percent over prior year
- Total student enrollment at Chamberlain College of Nursing growing 30 percent. Chamberlain’s Family Nurse Practitioner specialty track within the MSN program launched in September with demand exceeding expectations
- Total student enrollment at Carrington improving for the fourth consecutive quarter
- Engineering Technology Accreditation Commission of ABET re-accrediting DeVry University’s onsite bachelor’s degree programs in engineering technology
- Revenues at DeVry Brasil growing 36 percent versus prior year
- On track to achieve at least $60 million in cost savings and value creation during fiscal 2014.
Selected financial data for the three months ended Sept. 30, 2013:
- Revenues decreased 6 percent to $450.9 million
- Reported a net loss of $7.1 million, compared to net income of $32 million last year; net income from continuing operations and excluding special items was $14.2 million, down 58 percent from prior year
- Reported loss per share of $0.11, compared to earnings per share of $0.49 last year; earnings per share from continuing operations and excluding special items was $0.22
- Operating cash flow of $140.0 million for the quarter
- Cash, marketable securities and investments of $311.6 million as of Sept. 30, 2013, compared to $250.3 million as of Sept. 30, 2012
The first quarter fiscal year 2014 results contained special items including:
- A $7.2 million after-tax, or $0.11 per share, restructuring charge for a voluntary workforce reduction program and real estate consolidations
- A $1.2 million after-tax, $0.02 per share, gain on the sale of a former DeVry University campus in Decatur, Ga.
- A $15.3 million net of tax loss, $0.24 per share, on discontinued operations resulting from operating losses and an impairment charge at Advanced Academics
See “Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule” on p. 7.
“Our cash balance and strong financial position are allowing us to execute on our formula of quality plus diversification equals growth, which is mitigating the cyclical weakness in certain segments of U.S. postsecondary education,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We continue to invest in our growing institutions, particularly healthcare, professional and international education. Our turnaround plans at DeVry University and Carrington Colleges are producing early signs of operational improvement.”
Operating Highlights
Medical and Healthcare Segment
Segment revenue of $175.9 million was strong, increasing 11.1 percent compared to the prior year. Excluding special items, segment earnings increased 4.2 percent to 26.2 million versus the previous year.
DeVry Medical International
In the September 2013 term for DeVry Medical International, new students increased 5.7 percent to 978 compared to the prior year of 925 students. Total students increased 4.0 percent to 6,458 compared to 6,209 students in the same term last year.
The new academic building at the American University of the Caribbean School of Medicine’s campus will open in January 2014.
Chamberlain College of Nursing
For the September 2013 session, total students increased 30.2 percent to 15,690. New online students grew by 47.4 percent to 2,005 students. New onsite students increased to 1,375 from 246 in the prior-year period. New campus-based enrollment comparisons for the session were impacted by a realignment of Chamberlain’s academic calendar.
During the quarter, Chamberlain launched a Family Nurse Practitioner specialty track within the MSN program. The strong demand for nurses continues across the U.S., which drove enrollments that exceeded expectations. Chamberlain will begin a leadership concentration for its Doctor of Nursing Practice program in January 2015.
Chamberlain began expansion of its existing Atlanta campus, which will double the capacity of that location. It has received approvals for a campus in Troy, Mich., which is expected to open in May 2015. It has also received the initial approvals for a campus from the New Jersey Board of Nursing.
Carrington Colleges Group
For the three-month period ending Sept. 30, 2013, total enrollment increased 1.0 percent to 7,706 from 7,628 in the previous year. During the quarter, Carrington continued to focus on its core programs and manage its expenses in order to accelerate its return to positive earnings. New student enrollment decreased 19.5 percent to 2,733 because Carrington eliminated some of its non-core programs and there was one less session start compared to the prior year period. For fiscal 2014, Carrington expects modest revenue growth in the low single-digit percentage range.
International and Professional Education Segment
Segment revenue increased 18.3 percent to $43.7 million compared to the prior year. Segment earnings declined $2.3 million to $1.1 million versus the previous year.
Becker Professional Education
During the quarter, Becker grew its revenue by 3 percent. Becker also announced an agreement with EduPristine, India’s largest financial certifications review provider, to deliver live Certified Public Accountant (CPA) Exam Review classes to major cities across India including Mumbai, Delhi, and Bangalore.
DeVry Brasil
Total student enrollment for the September term increased 11.4 percent to 29,340, primarily driven by the acquisition of Facid. New students declined 9.4 percent primarily because of a temporary admissions restriction on three programs at one of its institutions, AREA1. DeVry Brasil has sought approval to have these restrictions lifted and expect that to occur in the near future.
Business, Technology, and Management Segment
Segment revenue of $232.3 million declined 18.4 percent compared to the prior year. Excluding special items, the segment generated a loss of $5.0 million during the quarter.
DeVry University
For the September 2013 session at DeVry University, new undergraduate enrollments grew slightly to 6,589 versus 6,580 the previous year. Total undergraduate students decreased 16.3 percent to 46,966 versus 56,086 for the session a year ago.
At the graduate level, including Keller Graduate School of Management, total coursetakers in the September session decreased 18.8 percent to 17,925 versus 22,072 for the same session a year ago.
The total number of online undergraduate and graduate coursetakers in the September session decreased 14.7 percent to 60,735 versus 71,200 in the same session a year ago.
During the quarter, the Engineering Technology Accreditation Commission of ABET reaccredited DeVry University’s onsite bachelor’s degree programs in biomedical engineering technology, computer engineering technology and electronics engineering technology.
Balance Sheet/Cash Flow
For the fiscal first quarter, DeVry generated $140.0 million of operating cash flow. As of Sept. 30, 2013, cash, marketable securities and investment balances totaled $311.6 million with no outstanding borrowings.
Conference Call and Webcast Information
DeVry will host a conference call on Oct. 24, 2013, at 4 p.m. Central Daylight Time (5 p.m. Eastern Daylight Time) to discuss its fiscal 2014 first-quarter results and other developments with respect to DeVry. The conference call will be led by Daniel Hamburger, president and chief executive officer, Tim Wiggins, chief financial officer and Pat Unzicker, vice president of finance.
For those wishing to participate by telephone, dial 888-317-6016 (domestic) or 412-317-6016 (international). Please say “DeVry Call”. DeVry will also broadcast the conference call live online. Interested parties may access the webcast through the Investor Relations section of DeVry’s website, using the following link: http://services.choruscall.com/links/dv131024.html.
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 Nov. 21, 2013, 9 am EST. To access the replay, dial 877-344-7529 (domestic) or 412-317-0088 (international), conference number 10035032. To access the webcast replay, please visit DeVry’s website, or http://services.choruscall.com/links/dv131024.html.
About DeVry
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 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, 2013 and filed with the Securities and Exchange Commission on August 29, 2013.
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Selected Operating Data (in thousands, except per share data) |
||||||||||||
| First Quarter | ||||||||||||
| FY 2014 | FY 2013 | Change | ||||||||||
| Revenues | $ | 450,913 | $ | 479,920 | (6.0 | )% | ||||||
| Income from Continuing Operations | $ | 8,151 | $ | 33,996 | (76.0 | )% | ||||||
| Net Income/(Loss) | $ | (7,132 | ) | $ | 31,989 | $ | (39,121 | ) | ||||
| Earnings/(Loss) per Share | ||||||||||||
| Continuing Operations | $ | 0.13 | $ | 0.52 | (75.0 | )% | ||||||
| Discontinued Operations | $ | (0.24 | ) | $ | (0.03 | ) | $ | (0.21 | ) | |||
| $ | (0.11 | ) | $ | 0.49 | $ | (0.60 | ) | |||||
| Number of common shares | 63,983 | 65,109 | (1.7 | )% | ||||||||
Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule
During fiscal first quarter 2014, DeVry recorded restructuring charges related to workforce reductions and real estate consolidations at DeVry University, Carrington Colleges and the DeVry Inc. home office in order to align its cost structure with enrollments. DeVry also recorded the operating results of its Advanced Academic Inc. reporting unit as discontinued operations. The following table illustrates the effects of restructuring charges, discontinued operations and gain on the sale of assets on DeVry’s earnings. Management believes that the non-GAAP disclosure of net income (loss) and earnings (loss) per share excluding these special items and discontinued operations 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 special nature of the impairment and restructuring charges and gain on the sale of assets. DeVry uses these supplemental financial measures internally in its management and budgeting process. However, these 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 non-GAAP measures to the most directly comparable GAAP information (in thousands, except per share data):
|
Non-GAAP Earnings Disclosure |
|||||||||
| PRELIMINARY | |||||||||
| For The Three Months | |||||||||
| Ended September 30, | |||||||||
| 2013 | 2012 | ||||||||
| Net (Loss) Income | $ | (7,132 | ) | $ | 31,989 | ||||
| Earnings per Share | $ | (0.11 | ) | $ | 0.49 | ||||
| Discontinued Operations (net of tax) | $ | 15,328 | $ | 2,174 | |||||
| Effect on Earnings per Share | $ | 0.24 | $ | 0.03 | |||||
| Restructuring Expenses (net of tax) | $ | 7,181 | $ | - | |||||
| Effect on Earnings per Share | $ | 0.11 | $ | - | |||||
| Gain on Sale of Assets (net of tax) | $ | (1,167 | ) | $ | - | ||||
| Effect on Earnings per Share | $ | (0.02 | ) | $ | - | ||||
| Net Income from Continuing Operations | |||||||||
| Excluding the Restructuring Expense and | |||||||||
| Gain on Sale of Assets | $ | 14,210 | $ | 34,163 | |||||
| Earnings per Share from Continuing Operations | |||||||||
| Excluding the Restructuring Expense and | |||||||||
| Gain on Sale of Assets | $ | 0.22 | $ | 0.52 | |||||
| Shares used in Diluted EPS Calculation | 63,983 | 65,109 | |||||||
| 2013 | 2012 | % Change | ||||
| DeVry Inc. Student Enrollments(1) | ||||||
| Total students | 120,793 | 126,342 | -4.4 | |||
| DeVry University | ||||||
| Undergraduate: September Session | ||||||
| New students | 6,589 | 6,580 | 0.1 | |||
| Total students | 46,966 | 56,086 | -16.3 | |||
| Graduate: September Session | ||||||
| Coursetakers(2) | 17,925 | 22,072 | -18.8 | |||
| Online: September Session | ||||||
| Total coursetakers(2)(3) | 60,735 | 71,200 | -14.7 | |||
| Chamberlain College of Nursing | ||||||
| September Session | ||||||
| New students (online only) | 2,005 | 1,360 | 47.4 | |||
| New students (onsite only)(4) | 1,375 | 246 | NM | |||
| Total students | 15,690 | 12,050 | 30.2 | |||
| Carrington Colleges Group | ||||||
| 3 months ending September 30 | ||||||
| New students(5) | 2,733 | 3,396 | -19.5 | |||
| Total students | 7,706 | 7,628 | 1.0 | |||
| DeVry Medical International | ||||||
| September Term | ||||||
| New students | 978 | 925 | 5.7 | |||
| Total students | 6,458 | 6,209 | 4.0 | |||
| DeVry Brasil | ||||||
| September Term | ||||||
| New students | 3,785 | 4,179 | -9.4 | |||
| Total students | 29,340 | 26,343 | 11.4 | |||
| 1) | Excludes Becker and Advanced Academics. | |
| 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. | |
| 4) | New enrollment comparisons for the September session were impacted by a realignment of Chamberlain’s academic calendar. | |
| 5) | Four session starts in 3 months ending September 30, 2013; five session starts in 3 months ending September 30, 2012. | |
|
Chart 1: DeVry Inc. Calendar 2013 and 2014 Announcements & Events |
||
| November 6, 2013 | Annual Shareholders’ Meeting | |
| February 4, 2014 | Fiscal 2014 Second Quarter Results and January Enrollment | |
|
DeVry University
Chamberlain College of Nursing Carrington Colleges Group DeVry Medical International |
||
| April 24, 2014 | Fiscal 2014 Third Quarter Results and March Enrollment | |
|
DeVry University
Chamberlain College of Nursing Carrington Colleges Group DeVry Brasil |
||
| August 7, 2014 | Fiscal 2014 Fourth Quarter/Year-End and May/July Enrollment | |
|
DeVry University
Chamberlain College of Nursing Carrington Colleges Group DeVry Medical International |
||
| October 23, 2014 | Fiscal 2015 First Quarter Results and September Enrollment | |
|
DeVry University
Chamberlain College of Nursing Carrington Colleges Group DeVry Medical International DeVry Brasil |
||
| November 5, 2014 | Annual Shareholders’ Meeting | |
| DEVRY INC. | |||||||||||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||||||||||
| (Dollars in Thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| PRELIMINARY | |||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||
| 2013 | 2013 | 2012 | |||||||||||||
|
ASSETS |
|||||||||||||||
|
Current Assets |
|||||||||||||||
| Cash and Cash Equivalents | $ | 308,544 | $ | 196,576 | $ | 247,572 | |||||||||
| Marketable Securities and Investments | 3,104 | 2,975 | 2,750 | ||||||||||||
| Restricted Cash | 7,251 | 7,019 | 4,546 | ||||||||||||
| Accounts Receivable, Net | 183,487 | 139,778 | 167,045 | ||||||||||||
| Deferred Income Taxes, Net | 33,336 | 29,758 | 25,078 | ||||||||||||
| Refundable Income Taxes | 618 | 154 | 34,651 | ||||||||||||
| Prepaid Expenses and Other | 51,083 | 49,685 | 35,983 | ||||||||||||
| Current Assets of Business Held for Sale | 5,053 | 16,219 | 28,428 | ||||||||||||
| Total Current Assets | 592,476 | 442,164 | 546,053 | ||||||||||||
|
Land, Buildings and Equipment |
|||||||||||||||
| Land | 67,101 | 71,122 | 65,249 | ||||||||||||
| Buildings | 427,194 | 424,902 | 389,057 | ||||||||||||
| Equipment | 471,905 | 475,656 | 458,340 | ||||||||||||
| Construction In Progress | 44,226 | 33,724 | 35,931 | ||||||||||||
| 1,010,426 | 1,005,404 | 948,577 | |||||||||||||
| Accumulated Depreciation and Amortization | (439,933 | ) | (433,747 | ) | (386,797 | ) | |||||||||
| Land, Buildings and Equipment of Business Held for Sale, Net | - | - | 5,879 | ||||||||||||
| Land, Buildings and Equipment, Net | 570,493 | 571,657 | 567,659 | ||||||||||||
|
Other Assets |
|||||||||||||||
| Intangible Assets, Net | 298,419 | 281,998 | 297,054 | ||||||||||||
| Goodwill | 517,655 | 508,937 | 564,841 | ||||||||||||
| Perkins Program Fund, Net | 13,450 | 13,450 | 13,450 | ||||||||||||
| Other Assets | 32,805 | 33,025 | 31,263 | ||||||||||||
| Other Assets of Business Held for Sale | 1,509 | 5,787 | - | ||||||||||||
| Total Other Assets | 863,838 | 843,197 | 906,608 | ||||||||||||
| TOTAL ASSETS | $ | 2,026,807 | $ | 1,857,018 | $ | 2,020,320 | |||||||||
|
DEVRY INC. |
|||||||||||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||||||||||
| (Dollars in Thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| PRELIMINARY | |||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||
| 2013 | 2013 | 2012 | |||||||||||||
|
LIABILITIES |
|||||||||||||||
|
Current Liabilities |
|||||||||||||||
| Accounts Payable | $ | 57,798 | $ | 55,131 | $ | 61,543 | |||||||||
| Accrued Salaries, Wages and Benefits | 96,100 | 88,444 | 83,242 | ||||||||||||
| Accrued Expenses | 82,496 | 74,451 | 69,697 | ||||||||||||
| Deferred and Advance Tuition | 243,353 | 97,478 | 255,222 | ||||||||||||
| Current Liabilities of Business Held for Sale | - | 713 | 4,545 | ||||||||||||
| Total Current Liabilities | 479,747 | 316,217 | 474,249 | ||||||||||||
|
Non-Current Liabilities |
|||||||||||||||
| Deferred Income Taxes, Net | 63,850 | 60,103 | 67,286 | ||||||||||||
| Deferred Rent and Other | 88,175 | 82,576 | 102,245 | ||||||||||||
| Total Non-current Liabilities | 152,025 | 142,679 | 169,531 | ||||||||||||
| Other Liabilities of Business Held for Sale | - | 112 | 144 | ||||||||||||
| TOTAL LIABILITIES | 631,772 | 459,008 | 643,924 | ||||||||||||
| NON-CONTROLLING INTEREST | 5,890 | 854 | 8,637 | ||||||||||||
|
SHAREHOLDERS' EQUITY |
|||||||||||||||
|
Common Stock, $0.01 par value, 200,000,000 Shares Authorized; 63,198,000, 62,946,000 and 63,782,000 Shares issued and outstanding at September 30, 2013, June 30, 2013 and September 30, 2012, respectively. |
751 | 745 | 743 | ||||||||||||
| Additional Paid-in Capital | 298,386 | 291,269 | 278,144 | ||||||||||||
|
Retained Earnings |
1,562,662 | 1,575,009 | 1,520,415 | ||||||||||||
| Accumulated Other Comprehensive Income | (17,605 | ) | (17,101 | ) | (5,412 | ) | |||||||||
|
Treasury Stock, at Cost (11,662,000, 11,581,000 and 10,544,000 Shares, Respectively) |
(455,049 | ) | (452,766 | ) | (426,131 | ) | |||||||||
| TOTAL SHAREHOLDERS' EQUITY | 1,389,145 | 1,397,156 | 1,367,759 | ||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,026,807 | $ | 1,857,018 | $ | 2,020,320 | |||||||||
| DEVRY INC. | ||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||
| (Dollars in Thousands Except for Per Share Amounts) | ||||||||||
| (Unaudited) | ||||||||||
| PRELIMINARY | ||||||||||
| For The Quarter | ||||||||||
| Ended September 30, | ||||||||||
| 2013 | 2012 | |||||||||
| REVENUES: | ||||||||||
| Tuition | $ | 419,318 | $ | 448,685 | ||||||
| Other Educational | 31,595 | 31,235 | ||||||||
| Total Revenues | 450,913 | 479,920 | ||||||||
| OPERATING COSTS AND EXPENSES: | ||||||||||
| Cost of Educational Services | 241,737 | 239,453 | ||||||||
| Student Services and Administrative Expense | 189,158 | 191,019 | ||||||||
| Gain on Sale of Asset | (1,918 | ) | - | |||||||
| Restructuring Expenses | 11,665 | - | ||||||||
| Total Operating Costs and Expenses | 440,642 | 430,472 | ||||||||
| Operating Income | 10,271 | 49,448 | ||||||||
| INTEREST AND OTHER INCOME (EXPENSE): | ||||||||||
| Interest Income | 583 | 561 | ||||||||
| Interest Expense | (1,000 | ) | (1,491 | ) | ||||||
| Net Interest and Other Income (Expense) | (417 | ) | (930 | ) | ||||||
| Income from Continuing Operations Before Income Taxes | 9,854 | 48,518 | ||||||||
| Income Tax Provision | (1,703 | ) | (14,522 | ) | ||||||
| Income from Continuing Operations | 8,151 | 33,996 | ||||||||
| DISCONTINUED OPERATIONS | ||||||||||
| Loss from Operations of Held for Sale Component | (16,324 | ) | (3,658 | ) | ||||||
| Income Tax Benefit | 996 | 1,484 | ||||||||
| Loss on Discontinued Operations | (15,328 | ) | (2,174 | ) | ||||||
| NET (LOSS) INCOME | (7,177 | ) | 31,822 | |||||||
| Net Loss Attributable to Noncontrolling Interest | 45 | 167 | ||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DEVRY INC. | $ | (7,132 | ) | $ | 31,989 | |||||
| AMOUNTS ATTRIBUTABLE TO DEVRY INC.: | ||||||||||
| Income from Continuing Operations, Net of Income Taxes | 8,196 | 34,163 | ||||||||
| Loss from Discontinued Operations, Net of Income Taxes | (15,328 | ) | (2,174 | ) | ||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO DEVRY INC. | $ | (7,132 | ) | $ | 31,989 | |||||
| EARNINGS PER COMMON SHARE ATTRIBUTABLE | ||||||||||
| TO DEVRY INC. SHAREHOLDERS | ||||||||||
| Basic | ||||||||||
| Continuing Operations | $ | 0.13 | $ | 0.52 | ||||||
| Discontinued Operations | (0.24 | ) | (0.03 | ) | ||||||
| $ | (0.11 | ) | $ | 0.49 | ||||||
| Diluted | ||||||||||
| Continuing Operations | $ | 0.13 | $ | 0.52 | ||||||
| Discontinued Operations | (0.24 | ) | (0.03 | ) | ||||||
| $ | (0.11 | ) | $ | 0.49 | ||||||
| DEVRY INC. | |||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
| (Dollars in Thousands) | |||||||||||
| (Unaudited) | |||||||||||
| PRELIMINARY | |||||||||||
| For The Three Months | |||||||||||
| Ended September 30, | |||||||||||
| 2013 | 2012 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net (Loss) Income | ($7,177 | ) | $ | 31,822 | |||||||
| Loss from Discontinued Operations | 15,328 | 2,377 | |||||||||
| Adjustments to Reconcile Net Income to Net | |||||||||||
| Cash Provided by Operating Activities: | |||||||||||
| Stock-Based Compensation Expense | 5,816 | 5,716 | |||||||||
| Depreciation | 19,980 | 19,826 | |||||||||
| Amortization | 1,649 | 2,442 | |||||||||
| Provision for Refunds and Uncollectible Accounts | 17,819 | 20,376 | |||||||||
| Deferred Income Taxes | (1,122 | ) | 4,942 | ||||||||
| Loss on Disposals and Adjustments to Land, Buildings and Equipment | 592 | 361 | |||||||||
| Realized Gain on Sale of Assets | (1,918 | ) | - | ||||||||
|
Changes in Assets and Liabilities, Net of Effects from Acquisitions and Divestitures of Businesses: |
|||||||||||
| Restricted Cash | (232 | ) | (2,048 | ) | |||||||
| Accounts Receivable | (60,565 | ) | (90,909 | ) | |||||||
| Prepaid Expenses And Other | (4,230 | ) | 7,513 | ||||||||
| Accounts Payable | 2,666 | (290 | ) | ||||||||
| Accrued Salaries, Wages, Expenses and Benefits | 7,872 | 6,376 | |||||||||
| Deferred and Advance Tuition Revenue | 144,840 | 156,927 | |||||||||
| Net Cash Provided by Operating Activities-Continuing Operations | 141,318 | 165,431 | |||||||||
| Net Cash Used by Operating Activities-Discontinued Operations | (1,277 | ) | (1,309 | ) | |||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 140,041 | 164,122 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Capital Expenditures | (22,180 | ) | (25,622 | ) | |||||||
| Payment for Purchase of Businesses, Net of Cash Acquired | (11,164 | ) | (29,538 | ) | |||||||
| Marketable Securities Purchased | (9 | ) | (8 | ) | |||||||
| Cash Received from Sale of Assets | 6,662 | - | |||||||||
| Net Cash Used in Investing Activities-Continuing Operations | (26,691 | ) | (55,168 | ) | |||||||
| Net Cash Used in Investing Activities-Discontinued Operations | - | (615 | ) | ||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (26,691 | ) | (55,783 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from Exercise of Stock Options | 1,197 | 1,030 | |||||||||
| Proceeds from Stock issued Under Employee Stock Purchase Plan | 339 | 487 | |||||||||
| Repurchase of Common Stock for Treasury | - | (25,712 | ) | ||||||||
| Cash Dividends Paid | (14 | ) | (9,793 | ) | |||||||
| Excess Tax Benefit from Stock-Based Payments | - | 6 | |||||||||
| Payment of Seller Financed Debt | (2,138 | ) | - | ||||||||
| NET CASH USED IN FINANCING ACTIVITIES | (616 | ) | (33,982 | ) | |||||||
| Effects of Exchange Rate Differences | (1,334 | ) | (867 | ) | |||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 111,400 | 73,490 | |||||||||
| Cash and Cash Equivalents at Beginning of Period | 197,144 | 174,076 | |||||||||
| Cash and Cash Equivalents at End of Period | 308,544 | 247,566 | |||||||||
| Less: Cash and Cash Equivalents of Discontinued Operations at End of Period | - | (6 | ) | ||||||||
| Cash and Cash Equivalents of Continuing Operations at End of Period | $ | 308,544 | $ | 247,572 | |||||||
| DEVRY INC. | |||||||||||
|
SEGMENT INFORMATION |
|||||||||||
| (Dollars in Thousands) | |||||||||||
| (Unaudited) | |||||||||||
| PRELIMINARY | |||||||||||
| For The Quarter | |||||||||||
| Ended September 30, | |||||||||||
| Increase | |||||||||||
| 2013 | 2012 | (Decrease) | |||||||||
| REVENUES: | |||||||||||
| Business, Technology and Management | $ | 232,309 | $ | 284,614 | (18.4 | %) | |||||
| Medical and Healthcare | 175,856 | 158,357 | 11.1 | % | |||||||
| International and Professional Education | 43,721 | 36,949 | 18.3 | % | |||||||
| Intersegment Elimination | (973 | ) | - | NM | |||||||
| Total Consolidated Revenues | 450,913 | 479,920 | (6.0 | %) | |||||||
| OPERATING INCOME (LOSS): | |||||||||||
| Business, Technology and Management | (11,061 | ) | 25,570 | NM | |||||||
| Medical and Healthcare | 25,516 | 25,182 | 1.3 | % | |||||||
| International and Professional Education | 1,080 | 3,349 | (67.8 | %) | |||||||
| Reconciling Items: | |||||||||||
| Amortization Expense | (1,649 | ) | (2,278 | ) | (27.6 | %) | |||||
| Depreciation and Other | (3,615 | ) | (2,375 | ) | 52.2 | % | |||||
| Total Consolidated Operating Income | 10,271 | 49,448 | (79.2 | %) | |||||||
| INTEREST AND OTHER INCOME (EXPENSE): | |||||||||||
| Interest Income | 583 | 561 | 3.9 | % | |||||||
| Interest Expense | (1,000 | ) | (1,491 | ) | (32.9 | %) | |||||
| Net Gain on Sale of Assets | - | - | - | ||||||||
| Net Interest and Other (Expense) Income | (417 | ) | (930 | ) | (55.2 | %) | |||||
|
Total Consolidated Income before Minority Interest and Income Taxes |
$ | 9,854 | $ | 48,518 | (79.7 | %) | |||||
Restructuring charges were recorded for the quarter ended September 30, 2013. These charges are related to DeVry University which is part of the Business, Technology and Management segment and DeVry's Carrington Colleges Group, Inc. which is part of the Medical and Healthcare segment. DeVry University also realized a gain on the sale of its Decatur, Georgia facility which was recorded during the quarter ended September 30, 2013. The following table illustrates the effects of these restructuring charges and the gain on the asset sale on the operating income of the segments. 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 special nature of these 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 | ||||||||||
| Ended September 30, | ||||||||||
| Increase | ||||||||||
| 2013 | 2012 | (Decrease) | ||||||||
| Business, Technology and Management Operating Income | $ | (11,061 | ) | $ | 25,570 | NM | ||||
| Restructuring Charge | 7,950 | - | NM | |||||||
| Gain on Sale of Assets | (1,918 | ) | - | NM | ||||||
| Business, Technology and Management Operating Income | ||||||||||
|
Excluding Special Charges |
$ | (5,029 | ) | $ | 25,570 | NM | ||||
| Medical and Healthcare Operating Income | $ | 25,516 | $ | 25,182 | 1.3 | % | ||||
| Restructuring Charge | 719 | - | NM | |||||||
| Medical and Healthcare Operating Income | ||||||||||
|
Excluding Special Charges |
$ | 26,235 | $ | 25,182 | 4.2 | % | ||||
