Adtalem Global Education Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 26, 2011

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8-K - DEVRY INC. 8-K - Adtalem Global Education Inc.a6697803.htm

Exhibit 99.1

DeVry Inc. Announces Third-Quarter 2011 Results

DOWNERS GROVE, Ill.--(BUSINESS WIRE)--April 26, 2011--DeVry Inc. (NYSE:DV), a global provider of educational services, today reported results for its fiscal 2011 third-quarter and nine-month period ended March 31, 2011. DeVry’s performance was driven by its unwavering focus on academic quality and continued solid execution of its growth and diversification strategy.

Significant academic quality and student services accomplishments this quarter:

  • Implemented a partnership with CareerBuilder to provide graduates of DeVry University’s Keller Graduate School of Management with career services
  • Received AVMA accreditation at Ross University School of Veterinary Medicine
  • Appointed Joseph Flaherty, MD, as dean of Ross University School of Medicine

Financial Results for the Three Months Ended March 31, 2011:

  • Revenues increased 12 percent to $562.7 million
  • Net income increased 14 percent to $92.9 million
  • Diluted earnings per share increased 18 percent to $1.32

Financial Results for the Nine Months Ended March 31, 2011:

  • Revenues rose 16 percent to $1,635.6 million
  • Net income increased 22 percent to $255.2 million
  • Diluted earnings per share increased 25 percent to $3.60

“Our diversification strategy and focus on enhancing academic quality to support long term growth continue to serve us well,” said Daniel Hamburger, DeVry’s president and chief executive officer. “Total enrollment growth across our family of degree-granting schools was 7.6 percent in the spring. While Carrington and DeVry University undergraduate new student enrollments experienced softness during this period, strong growth within Chamberlain, Keller and DeVry Brasil helped to offset the weakness. This demonstrates the value of our diversification strategy and allows DeVry to continue to make investments in the quality of its academic programs and services.”

Business Highlights

Business, Technology, and Management Segment

DeVry University

DeVry University reported new undergraduate enrollment of 14,981, a 15.4 percent decline compared with 17,715 last year. Total student enrollment increased 5.9 percent to 70,863 students, compared with 66,909 in spring 2010.

For the January 2011 session, graduate coursetakers enrolled in master’s degree programs at DeVry University and its Keller Graduate School of Management rose to 24,784, an increase of 9.3 percent over January 2010. For the March 2011 session, the number of graduate coursetakers was 24,406, an increase of 9.2 percent over prior year.

The total number of online undergraduate and graduate coursetakers in the March 2011 session increased 15.7 percent to 78,366 versus 67,744 in the same session a year ago.

To underscore its commitment to becoming the leading career university, during the quarter DeVry University implemented a new partnership with CareerBuilder, which will provide its Keller graduates with career services, including access to a personal career coach.

Medical and Healthcare Segment

Ross University

In the January 2011 term, new students decreased 8.2 percent to 642, compared to 699 students last year. Total students increased 3.0 percent to 4,810 compared to 4,669 students in the same term last year.

In addition to its accreditation from the St. Christopher & Nevis Accreditation Board, Ross University School of Veterinary Medicine received an additional accreditation by the American Veterinary Medical Association (AVMA) during the quarter. This milestone achievement is representative of the quality of the school’s program. Further, it allows graduates to sit for licensure to practice veterinary medicine in the United States or Canada without first completing a special foreign graduate examination.

Ross University School of Medicine announced the appointment of Joseph Flaherty, MD, as dean effective May 7. Dr. Flaherty previously served as the dean of the University of Illinois College of Medicine, the largest medical school in the United States, for the past 6 years. In addition the medical school opened a new academic center housing simulation rooms, faculty offices and an auditorium.

Chamberlain College of Nursing

Chamberlain's new student enrollment in spring 2011 increased 31.5 percent to 2,852 students, compared to 2,168 in spring 2010. Total student enrollment rose 47.9 percent to 9,897 students compared with 6,691 during the same period last year.

Chamberlain recently announced the launch of its Master of Science in Nursing (MSN) Informatics Specialty Track, which is designed to prepare students to utilize Electronic Health Records technology. Pending approvals, it will also launch a Doctorate in Nursing Practice degree program in fiscal 2012 to meet the need for more advanced practice nurses.

Carrington Colleges Group

New student enrollment at Carrington decreased 22.7 percent to 3,261 compared with 4,218 in spring 2010. Total enrollment decreased 15.0 percent to a 10,206 students, compared with 12,009 for the same period last year. Carrington continues to execute on a performance plan, which includes increasing its marketing effectiveness, adding new locations and enhancing academic quality.

In March, George Montgomery announced he will retire as president of Carrington Colleges later this year. He will be succeeded by Robert Paul, who currently serves as vice president of metro operations at DeVry University.

Professional Education Segment

Becker Professional Education

Becker continues to execute its long-term growth strategy by making investments in its courses, faculty and technology to build upon its industry leadership position. Continued improvement in the underlying demand for its CPA product had a positive effect on the segment during the quarter.

Other Educational Services Segment

DeVry Brasil

For the March 2011 term, new students increased 41.0 percent to 3,833, compared with 2,718 students last year driven by implementation of new marketing, admissions and administrative initiatives. Total students increased 16.1 percent to 13,688 compared with 11,789 students in the same term last year. The implementation of CASA, DeVry Brasil’s version of DeVry University’s Student Central, was completed across all of DeVry Brasil’s schools. An expansion of facilities at Ruy Barbosa is currently underway to accommodate the school’s growing enrollment and program expansion.

Balance Sheet/Cash Flow

For the first nine months of fiscal 2011, DeVry generated $485.2 million of operating cash flow. As of March 31, 2011, cash, marketable securities and investment balances totaled $599.1 million and there were no outstanding borrowings.

Share Repurchase Plan

During the quarter, a total of 570,600 shares were repurchased under the company’s fifth repurchase program for approximately $29.0 million, at an average cost of $50.82 per share.

Conference Call and Webcast Information

DeVry will host a conference call on April 26, 2011, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2011 third-quarter results. The conference call will be led by Daniel Hamburger, president and chief executive officer, and Rick Gunst, chief financial officer.

For those wishing to participate by telephone, dial (800) 299-0148 (domestic) or (617) 801-9711 (international). Use passcode 89155394 or say “DeVry Call.” DeVry will also broadcast the conference call live via the Internet. Interested parties may access the webcast through the Investor Relations section of the company's website at http://phx.corporate-ir.net/phoenix.zhtml?c=93880&p=irol-irhome. 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 May 10, 2011. To access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode: 22513080. To access the webcast replay, please visit DeVry’s website at www.devryinc.com.

About DeVry Inc.

DeVry's purpose is to empower its students to achieve their educational and career goals. DeVry (NYSE: DV, member S&P 500 Index) is a global provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College, Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University Schools of Medicine and Veterinary Medicine. These institutions offer a wide array of programs in business, healthcare and technology. DeVry’s institutions serve students in secondary through postsecondary education and professionals in 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 Inc. 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, 2010 and filed with the Securities and Exchange Commission on August 25, 2010.

 
 
 

Selected Operating Data (in thousands, except per share data)

     
Third Quarter
FY 2011       FY 2010       Change
Revenues $ 562,730       $ 504,385       +11.6 %
Net Income $ 92,900 $ 81,152 +14.5 %
Earnings per Share (diluted) $ 1.32 $ 1.12 +17.9 %
Number of common shares (diluted) 70,272 72,387 (2.9 )%
      Nine Months
FY 2011       FY 2010       Change
Revenues $ 1,635,621       $ 1,408,507       +16.1 %
Net Income $ 255,207 $ 208,333 +22.5 %
Earnings per Share (diluted) $ 3.60 $ 2.88 +25.0 %
Number of common shares (diluted) 70,886 72,271 (1.9 )%
 
 
 

Spring 2011 Enrollment Results

     
2011   2010   Change
 
Total DeVry Inc. Student Enrollments1 129,802 120,686 +7.6 %
 
DeVry University
Undergraduate(2)
New students 14,981 17,715 (15.4 )%
Total students 70,863 66,909 +5.9 %
 
Graduate coursetakers(2)(3)
January 24,784 22,679 +9.3 %
March 24,406 22,343 +9.2 %
 
Online coursetakers(3)(4) - March 78,366 67,744 +15.7 %
 
Chamberlain College of Nursing – March(2)
New students 2,852 2,168 +31.5 %
Total students 9,897 6,691 +47.9 %
 
Ross University – January
New students 642 699 (8.2 )%
Total students 4,810 4,669 +3.0 %
 
Carrington Colleges - March
New students 3,261 4,218 (22.7 )%
Total students 10,206 12,009 (15.0 )%
 
DeVry Brasil - March
New students 3,833 2,718 +41.0 %
Total students 13,688 11,789 +16.1 %

1 Total enrollment at DeVry’s degree-granting institutions (excludes Advanced Academics and Becker Professional Education)

2 Includes both onsite and online students

3 The term “coursetaker” refers to the number of courses taken by a student. Thus one student taking two courses equals two coursetakers.

4 Includes all degree levels at DeVry University

 
 
 

Chart 1: Remaining DeVry Inc. Calendar 2011 Announcements & Events

   
Aug. 11, 2011 Fiscal 2011 Year-End Results and Summer Enrollment
DeVry University

Chamberlain College of Nursing

Ross University

Carrington Colleges Group

 
Oct. 25, 2011 Fiscal 2012 First Quarter Results and Enrollment
DeVry University (graduate only)

Ross University

DeVry Brasil

 
Dec. 6, 2011 Most recent enrollment results; press release, no conference call
DeVry University

Chamberlain College of Nursing

Carrington Colleges Group

 
 
 
DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
           
March 31, June 30, March 31,
2011 2010 2010
 

ASSETS

 

Current Assets

 
Cash and Cash Equivalents $ 596,515 $ 307,702 $ 439,897
Marketable Securities and Investments 2,556 15,666 61,781
Restricted Cash 7,378 2,102 55,869
Accounts Receivable, Net 223,953 119,210 155,902
Deferred Income Taxes, Net 26,290 22,340 22,489
Prepaid Expenses and Other   31,030     32,627     32,645  
 
Total Current Assets   887,722     499,647     768,583  
 

Land, Buildings and Equipment

 
Land 54,274 53,914 53,965
Buildings 302,843 283,044 283,367
Equipment 361,837 346,979 385,703
Construction In Progress   73,713     38,188     8,958  
 
792,667 722,125 731,993
 
Accumulated Depreciation and Amortization   (354,711 )   (333,988 )   (359,981 )
 
Land, Buildings and Equipment, Net   437,956     388,137     372,012  
 

Other Assets

 
Intangible Assets, Net 191,870 194,195 196,003
Goodwill 517,822 514,864 515,052
Perkins Program Fund, Net 13,450 13,450 13,450
Other Assets   21,607     17,533     15,127  
 
Total Other Assets   744,749     740,042     739,632  
 
TOTAL ASSETS $ 2,070,427   $ 1,627,826   $ 1,880,227  
 
 
 
DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
           
March 31, June 30, March 31,
2011 2010 2010
 

LIABILITIES

 

Current Liabilities

 
Current Portion of Debt $ - $ - $ 44,757
Accounts Payable 63,741 90,364 89,152
Accrued Salaries, Wages and Benefits 69,410 92,368 69,552
Accrued Expenses 45,338 53,565 55,019
Advance Tuition Payments 22,435 20,930 24,170
Deferred Tuition Revenue   398,452     86,627     366,113  
 
Total Current Liabilities   599,376     343,854     648,763  
 

Non-Current Liabilities

 
Deferred Income Taxes, Net 63,874 43,368 48,281
Deferred Rent and Other   62,130     56,216     51,059  
 
Total Non-current Liabilities   126,004     99,584     99,340  
 
TOTAL LIABILITIES   725,380     443,438     748,103  
 
NON-CONTROLLING INTEREST 6,466 5,007 4,518
 

SHAREHOLDERS' EQUITY

 
Common Stock, $0.01 par value, 200,000,000 Shares Authorized;
68,966,000, 71,030,000 and 71,231,000 Shares issued
and outstanding at March 31, 2011, June 30, 2010
and March 31, 2010, respectively. 736 734 733
Additional Paid-in Capital 238,813 224,209 217,805
Retained Earnings 1,300,862 1,055,591 991,295
Accumulated Other Comprehensive Income 13,662 9,896 9,995
Treasury Stock, at Cost (4,638,000, 2,394,000 and 2,077,000
Shares, Respectively)   (215,492 )   (111,049 )   (92,222 )
 
TOTAL SHAREHOLDERS' EQUITY   1,338,581     1,179,381     1,127,606  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,070,427   $ 1,627,826   $ 1,880,227  
 
 
 
DEVRY INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in Thousands Except for Per Share Amounts)
(Unaudited)
PRELIMINARY
           
 
 
For The Quarter For The Nine Months
Ended March 31, Ended March 31,
 
2011 2010 2011 2010
 
REVENUES:
Tuition $ 521,484 $ 468,143 $ 1,528,003 $ 1,318,491
Other Educational   41,246     36,242     107,618     90,016  
 
Total Revenues   562,730     504,385     1,635,621     1,408,507  
 
OPERATING COSTS AND EXPENSES:
Cost of Educational Services 232,914 214,300 690,912 610,748
Student Services and Administrative Expense   192,589     168,065     560,114     487,425  
 
Total Operating Costs and Expenses   425,503     382,365     1,251,026     1,098,173  
 
Operating Income 137,227 122,020 384,595 310,334
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 435 476 1,239 1,550
Interest Expense (348 ) (336 ) (841 ) (1,253 )
Net Investment Gain   -     81     -     1,225  
 
Net Interest and Other Income (Expense)   87     221     398     1,522  
 
Income Before Income Taxes 137,314 122,241 384,993 311,856
 
Income Tax Provision   44,405     41,321     129,851     103,775  
 
NET INCOME 92,909 80,920 255,142 208,081
 
Net (Income) Loss Attributable to Noncontrolling Interest   (9 )   232     65     252  
 
NET INCOME ATTRIBUTABLE TO DEVRY INC. $ 92,900   $ 81,152   $ 255,207   $ 208,333  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic $ 1.34   $ 1.14   $ 3.64   $ 2.92  
Diluted $ 1.32   $ 1.12   $ 3.60   $ 2.88  
 
Cash Dividend Declared per Common Share $ -   $ -   $ 0.12   $ 0.10  
 
 
 
DEVRY INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
   
For The Nine Months
Ended March 31,
2011   2010
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 255,142 $ 208,081
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
 
Stock-Based Compensation Expense 11,192 7,901
Depreciation 43,289 38,381
Amortization 4,589 9,328
Provision for Refunds and Uncollectible Accounts 73,534 71,094
Deferred Income Taxes 16,220 (4,807 )
Loss on Disposals of Land, Buildings and Equipment 262 398
Unrealized Net Gain on Investments - (1,225 )
Changes in Assets and Liabilities, Net of Effects from
Acquisitions of Businesses:
Restricted Cash (5,276 ) (50,516 )
Accounts Receivable (177,807 ) (122,113 )
Prepaid Expenses And Other (6,225 ) 2,834
Accounts Payable (26,631 ) 17,560
Accrued Salaries, Wages, Expenses and Benefits (16,267 ) 16,558
Advance Tuition Payments 1,384 (3,595 )
Deferred Tuition Revenue   311,825     291,449  
 
NET CASH PROVIDED BY OPERATING ACTIVITIES   485,231     481,328  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (91,299 ) (101,599 )
Marketable Securities Purchased (91 ) (47 )
Marketable Securities Sales 13,495 -
Other   (627 )   (700 )
 
NET CASH USED IN INVESTING ACTIVITIES   (78,522 )   (102,346 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 3,081 9,632
Proceeds from Stock issued Under Employee Stock Purchase Plan 1,033 756
Repurchase of Common Stock for Treasury (104,746 ) (22,671 )
Cash Dividends Paid (15,529 ) (12,839 )
Excess Tax Benefit from Stock-Based Payments 561 2,728
Borrowings Under Revolving Credit Facility - 70,000
Repayments Under Revolving Credit Facility - (150,000 )
Borrowings Under Collateralized Line of Credit - 242
Repayments Under Collateralized Line of Credit   -     (296 )
 
NET CASH USED IN FINANCING ACTIVITIES   (115,600 )   (102,448 )
 
Effects of Exchange Rate Differences   (2,296 )   (1,839 )
 
NET INCREASE IN CASH AND CASH EQUIVALENTS 288,813 274,695
 
Cash and Cash Equivalents at Beginning of Period   307,702     165,202  
 
Cash and Cash Equivalents at End of Period $ 596,515   $ 439,897  
 
 
 
DEVRY INC.

SEGMENT INFORMATION

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
           
For The Quarter For The Nine Months
Ended March 31, Ended March 31,
Increase Increase
2011 2010 (Decrease) 2011 2010 (Decrease)
REVENUES:
Business, Technology and Management $ 378,698 $ 334,603 13.2 % $ 1,102,359 $ 931,365 18.4 %
Medical and Healthcare 142,544 132,640 7.5 % 421,347 375,572 12.2 %
Professional Education 24,529 22,828 7.5 % 65,767 58,823 11.8 %
Other Educational Services   16,959     14,314   18.5 %   46,148     42,747   8.0 %
 
Total Consolidated Revenues   562,730     504,385   11.6 %   1,635,621     1,408,507   16.1 %
 
OPERATING INCOME:
Business, Technology and Management 99,351 85,751 15.9 % 283,342 219,964 28.8 %
Medical and Healthcare 29,289 30,951 (5.4 %) 88,415 89,249 (0.9 %)
Professional Education 9,150 8,147 12.3 % 22,119 17,840 24.0 %
Other Educational Services 1,113 (1,414 ) NM (6,261 ) (7,231 ) 13.4 %
Reconciling Items:
Amortization Expense (1,497 ) (1,618 ) (7.5 %) (4,449 ) (9,189 ) (51.6 %)
Depreciation and Other   (179 )   203   NM   1,429     (299 ) NM
 
Total Consolidated Operating Income 137,227 122,020 12.5 % 384,595 310,334 23.9 %
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 435 476 (8.6 %) 1,239 1,550 (20.1 %)
Interest Expense (348 ) (336 ) 3.6 % (841 ) (1,253 ) (32.9 %)
Net Investment Gain   -     81   NM   -     1,225   NM
 
Net Interest and Other Income (Expense)   87     221   (60.6 %)   398     1,522   (73.9 %)
 
Total Consolidated Income before Income Taxes $ 137,314   $ 122,241   12.3 % $ 384,993   $ 311,856   23.5 %

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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