DeVry Inc. Announces Third-Quarter 2013 Results

Chart 3: Vertical, Horizontal and Geographic Diversification (Graphic: Business Wire)

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DOWNERS GROVE, Ill.--()--DeVry Inc. (NYSE: DV), a global provider of educational services, today reported academic, operational and financial results for its fiscal 2013 third-quarter ended March 31, 2013. DeVry also reported enrollment results at DeVry Brasil, Chamberlain College of Nursing, Carrington Colleges Group, and DeVry University and its Keller Graduate School of Management.

Academic and operational results this quarter included:

  • DeVry University received reaccreditation from the Higher Learning Commission through 2019
  • DeVry University new undergraduate student enrollment down 21 percent
  • 17.5 percent increase in new enrollments at Carrington
  • 17 percent total student growth at Chamberlain College of Nursing
  • Chamberlain opened a new campus in Cleveland, bringing the total number of campuses to 12
  • Becker Professional Education prepared 37 of 39 of Elijah Watts Sells winners for the 2012 CPA Exam
  • 60 percent revenue growth at DeVry Brasil in the quarter, including acquisitions

Selected financial data for the three months ended March 31, 2013:

  • Revenues decreased 5.9 percent to $509 million
  • Reported net income decreased 15.4 percent to $57 million, and net income excluding discrete items was $58 million, down 13.5 percent
  • Reported diluted earnings per share decreased 12 percent to $0.88, and earnings per share excluding discrete items was $0.90, down 10.0 percent

Selected financial data for the nine months ended March 31, 2013:

  • Revenues decreased 5.5 percent to $1,497 million
  • Reported net income increased 4.2 percent to $139 million, and net income excluding discrete items was $146 million, down 21.8 percent
  • Reported diluted earnings per share increased 9.7 percent to $2.15, and earnings per share excluding discrete items was $2.26, down 17.5 percent
  • Operating cash flow was $282 million, compared to $355 million last year
  • Repurchased approximately 2 million shares of common stock at an average price of $23.97

“While most of our institutions are performing well, we were disappointed with new student enrollment at DeVry University,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are focused on better communicating the return on educational investment of DeVry University degrees to potential students. In addition, we are aggressively managing our costs and now expect to achieve $100 million in cost savings this fiscal year.”

Reported results for both the current and prior year periods include discrete items. The results for the three and nine months ended March 31, 2013, include after-tax restructuring charges of $1.3 million and $7.2 million, respectively, related to severance and real estate consolidation. The results for the nine months ended March 31, 2012, include impairment charges of $55.8 million after-tax, and a $2.2 million gain, net of tax (see “Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule”).

Organizational Highlights

Business, Technology and Management Segment

DeVry University

For the March 2013 session at DeVry University new undergraduate enrollments decreased 21.2 percent to 5,146 versus 6,533 the previous year. Total undergraduate students decreased 16.5 percent to 47,537 versus 56,958 for the session a year ago.

At the graduate level, including Keller Graduate School of Management, total coursetakers in the March session decreased 18.4 percent to 19,075 versus 23,366 for the same session a year ago.

The total number of online undergraduate and graduate coursetakers in the March session decreased 10.6 percent to 60,834 versus 68,083 in the same session a year ago.

Enrollment results continue to be impacted by lower cyclical demand among the university’s target segment of students. The plan to improve enrollment results includes enhancing communications to students about DeVry University’s excellent graduate employment results; addressing affordability through scholarships and pricing; and enhancing partnerships with corporate and government organizations.

During the quarter, DeVry University received reaccreditation from the Higher Learning Commission through 2019.

Medical and Healthcare Segment

DeVry Medical International

In the third quarter, American University of the Caribbean School of Medicine appointed Heidi Chumley, M.D. as executive dean and chief academic officer. Chumley most recently served as associate vice chancellor for educational resources and interprofessional education at the University of Kansas School of Medicine.

Ross University School of Medicine recently announced a new affiliation agreement with Atlanta Medical Center that will enable students to complete required clinical rotations in family practice, internal medicine, pediatrics, psychiatry, obstetrics and gynecology and surgery.

Enrollment for the May semester at DeVry Medical International will be reported with the fourth-quarter and year-end results on August 8, 2013.

Chamberlain College of Nursing

Chamberlain's new online student enrollment in the March session increased 15.9 percent to 1,344 compared to 1,160 in March 2012. New enrollments in the March session were impacted by a realignment of Chamberlain’s academic calendar, which resulted in no new campus-based students in the session. Total student enrollment increased 16.9 percent to 13,235 compared to 11,321 during the same period last year.

During the quarter, Chamberlain announced the launch of the Doctor of Nursing Practice (DNP) program, which will be offered in May. In addition, Chamberlain received approvals from the Illinois Board of Higher Education for a Family Nurse Practitioner (FNP) program, which is expected to begin in the fall of 2013, pending accreditor approval.

Chamberlain also opened a new Cleveland location in January, and will open the new Tinley Park, Ill., location in May.

Carrington Colleges Group

Carrington continues to make progress on its turnaround plan. For the three month period ending March 31, 2013, new student enrollment for Carrington Colleges Group increased 17.5 percent to 2,391 versus 2,035 in the previous year, marking its third consecutive quarter with double-digit new student enrollment growth. Total enrollment increased 8.8 percent to 7,951 compared to 7,309 in the prior year.

International, K-12, and Professional Education Segment

Becker Professional Education

Becker recently announced that 37 of 39 of the Elijah Watts Sells winners for the 2012 CPA Exam prepared using the Becker CPA Exam Review. During the quarter, Becker opened new locations in New York and Chicago for the U.S. Medical Licensing Exam preparation course.

DeVry Brasil

DeVry Brasil’s new student enrollment in the March session increased 2.0 percent to 7,390 compared to 7,244 in the prior year. Total student enrollment increased 7.2 percent to 29,083 students compared to 27,133 during the same period last year.

DeVry Brasil’s Ruy Barbosa and Faculdade Boa Viagem each received top five rankings by the Ministry of Education among institutions located in the cities of Salvador and Recife.

Balance Sheet/Cash Flow

For the first nine months of fiscal year 2013, DeVry generated $282 million of operating cash flow. As of March 31, 2013, cash, marketable securities and investment balances totaled $281 million and there were no outstanding borrowings.

Share Repurchase Plan

During the quarter, DeVry repurchased 347,280 shares of its common stock for approximately $9.8 million, at an average cost of $28.18 per share.

Conference Call and Webcast Information

DeVry will host a conference call on April 23, 2013, at 4:00 p.m. Central Daylight Time (5:00 p.m. Eastern Daylight Time) to discuss its fiscal 2013 third-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 866-318-8613 (domestic) or 617-399-5132 (international). Use passcode 13010926 or say “DeVry Call”. DeVry Inc. will also broadcast the conference call live via the Web. Interested parties may access the webcast through the Investor Relations section of the company's website, or http://www.media-server.com/m/p/52fbwnf4. 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 20, 11:59 p.m. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 96882536. To access the webcast replay, please visit the company's website, or http://www.media-server.com/m/p/52fbwnf4.

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)

 
Third Quarter
FY 2013   FY 2012   Change
Revenues $ 508,752 $ 540,807 -5.9 %
Net Income $ 56,821 $ 67,131 -15.4 %
Earnings per Share (diluted) $ 0.88 $ 1.00 -12.0 %
Number of common shares (diluted) 64,279 67,225 -4.4 %
 
  Nine Months
FY 2013   FY 2012   Change
Revenues $ 1,496,732 $ 1,583,894 -5.5 %
Net Income $ 139,096 $ 133,480 +4.2 %
Earnings per Share (diluted) $ 2.15 $ 1.96 +9.7 %
Number of common shares (diluted) 64,639 68,235 -5.3 %
 

Use of Non-GAAP Financial Information and Supplemental Reconciliation Schedule

During the third quarter of fiscal year 2013, DeVry recorded a restructuring charge to consolidate a facility at Carrington Colleges as well as for the severance charges within DeVry University and DeVry Medical International. 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 Nine Months
Ended March 31: Ended March 31:
2013   2012 2013   2012
Net Income $ 56,821 $ 67,131 $ 139,096 $ 133,480
Earnings per Share (diluted) $ 0.88 $ 1.00 $ 2.15 $ 1.96
Restructuring Expense (net of tax) $ 1,271 -- $ 7,211 --
Effect on Earnings per Share (diluted) $ 0.02 -- $ 0.11 --
Impairment Charges (net of tax) -- -- -- $ 55,751
Effect on Earnings per Share (diluted) -- -- -- $ 0.81
Gain on Sale of Assets (net of tax) -- -- -- $ (2,216 )
Effect on Earnings per Share (diluted) -- -- -- $ (0.03 )
Net Income Excluding the Restructuring
and Impairment Charges and Gain
on Sale of Assets $ 58,092 $ 67,131 $ 146,307 $ 187,015
Earnings per Share Excluding the
Restructuring and Impairment Charges
and Gain on Sale of Assets (diluted) $ 0.90 $ 1.00 $ 2.26 $ 2.74
 

March 2013 Enrollment Results

  2012   2013   % Change
DeVry Inc. Student Enrollments(1)
 
New students 19,741 18,468 -6.4
Total students 128,269 119,623 -6.7
 
DeVry University
Undergraduate – March Session
New students 6,533 5,146 -21.2
Total students 56,958 47,537 -16.5
Graduate – March Session
Coursetakers(2) 23,366 19,075 -18.4
Online
March Session
Total coursetakers(2)(3) 68,083 60,834 -10.6
 
Chamberlain College of Nursing
March Session
New students (online only) 1,160 1,344

+15.9(4)

Total students 11,321 13,235 +16.9
 
The Carrington Colleges Group
3 months ending Mar. 31, 2013
New students 2,035 2,391 +17.5
Total students 7,309 7,951 +8.8
 
DeVry Brasil
March Term
New students 7,244 7,390 +2.0
Total students 27,133 29,083 +7.2

1. Excludes Becker and Advanced Academics. Includes enrollment at DeVry Medical International reported in February 2013.

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 March session were impacted by a realignment of Chamberlain’s academic calendar, which resulted in no new campus-based students in the session.

Chart 1: DeVry Inc. Remaining Calendar 2013 Announcements & Events

August 8, 2013     Fiscal 2013 Fourth Quarter/Year-End 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 Shareholders’ Meeting
 

Chart 2: Academic Calendar Transitions for Carrington Colleges Group and Chamberlain College of Nursing

Carrington Colleges Group Starts Per Quarter:

                                     
Carrington           Carrington        
College College
    Q1   Q2   Q3   Q4   California   Q1   Q2   Q3   Q4
FY12   3   3   3   2   FY12   2   2   2   2
FY13   2   2   2   2   FY13   3   1   3   2
FY14   2   2   2   2   FY14   2   2   2   2
 

Chamberlain College of Nursing Starts Transition:

             
   

Q1

 

Q3

 

 

Q2

 

Q4

   
Chamberlain July September November January March May # of
Starts                           Starts
Online  
 
 
 
 
 
  6
Campus                            
2012  
     
     
      3
2013  
     
 
     
  4
2014      
     
     
  3

Chart 3: Vertical, Horizontal and Geographic Diversification

Please see multimedia asset.

DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
             
March 31, June 30, March 31,
2013 2012 2012
 

ASSETS

 

Current Assets

 
Cash and Cash Equivalents $ 277,994 $ 174,076 $ 329,440
Marketable Securities and Investments 2,952 2,632 2,665
Restricted Cash 7,151 2,498 13,194
Accounts Receivable, Net 194,398 113,911 254,661
Deferred Income Taxes, Net 24,459 27,845 23,019
Refundable Income Taxes 657 40,278 742
Prepaid Expenses and Other   40,414     39,874     41,647  
 
Total Current Assets   548,025     401,114     665,368  
 

Land, Buildings and Equipment

 
Land 66,063 65,172 66,019
Buildings 389,345 386,028 382,972
Equipment 485,570 433,949 422,271
Construction In Progress   64,412     61,752     50,192  
 
1,005,390 946,901 921,454
 
Accumulated Depreciation and Amortization   (435,427 )   (387,924 )   (374,904 )
 
Land, Buildings and Equipment, Net   569,963     558,977     546,550  
 

Other Assets

 
Intangible Assets, Net 292,098 285,220 292,118
Goodwill 566,497 549,961 567,316
Perkins Program Fund, Net 13,450 13,450 13,450
Other Assets   27,953     29,894     27,400  
 
Total Other Assets   899,998     878,525     900,284  
 
TOTAL ASSETS $ 2,017,986   $ 1,838,616   $ 2,112,202  

 
DEVRY INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
             
March 31, June 30, March 31,
2013 2012 2012
 

LIABILITIES

 

Current Liabilities

 
Accounts Payable $ 53,999 $ 63,094 $ 53,208
Accrued Salaries, Wages and Benefits 81,290 77,741 72,443
Accrued Expenses 76,442 76,243 56,328
Advance Tuition Payments 17,226 20,580 23,257
Deferred Tuition Revenue   180,498     77,551     349,200  
 
Total Current Liabilities   409,455     315,209     554,436  
 

Non-Current Liabilities

 
Deferred Income Taxes, Net 58,354 62,276 63,693
Deferred Rent and Other   92,037     96,496     91,415  
 
Total Non-current Liabilities   150,391     158,772     155,108  
 
TOTAL LIABILITIES   559,846     473,981     709,544  
 
NON-CONTROLLING INTEREST 9,017 8,242 8,168
 

SHAREHOLDERS' EQUITY

 
Common Stock, $0.01 par value, 200,000,000 Shares Authorized;
62,989,000, 64,722,000 and 68,831,000 Shares issued
and outstanding at March 31, 2013, June 30, 2012
and March 31, 2012, respectively. 744 741 741
Additional Paid-in Capital 285,242 272,962 267,285
Retained Earnings 1,616,850 1,488,988 1,490,371
Accumulated Other Comprehensive Income (5,934 ) (5,889 ) 3,163
Treasury Stock, at Cost (11,409,000, 9,386,000 and 8,266,000
Shares, Respectively)   (447,779 )   (400,409 )   (367,070 )
 
TOTAL SHAREHOLDERS' EQUITY   1,449,123     1,356,393     1,394,490  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,017,986   $ 1,838,616   $ 2,112,202  

 
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,
 
2013 2012 2013 2012
 
REVENUES:
Tuition $ 472,239 $ 505,651 $ 1,400,199 $ 1,488,432
Other Educational   36,513     35,156     96,533     95,462  
 
Total Revenues   508,752     540,807     1,496,732     1,583,894  
 
OPERATING COSTS AND EXPENSES:
Cost of Educational Services 241,020 244,195 726,966 723,655
Student Services and Administrative Expense 192,100 201,158 572,955 596,125
Restructuring Charges 2,029 - 11,513
Asset Impairment Charge   -     -     -     75,039  
 
Total Operating Costs and Expenses   435,149     445,353     1,311,434     1,394,819  
 
Operating Income 73,603 95,454 185,298 189,075
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 415 110 1,206 520
Interest Expense (756 ) (650 ) (3,006 ) (1,653 )
Net Gain on Sale of Assets   -     -     -     3,695  
 
Net Interest and Other Income (Expense)   (341 )   (540 )   (1,800 )   2,562  
 
Income Before Income Taxes 73,262 94,914 183,498 191,637
 
Income Tax Provision   16,102     27,610     43,292     57,741  
 
NET INCOME 57,160 67,304 140,206 133,896
 
Net Income Attributable to Noncontrolling Interest   (339 )   (173 )   (1,110 )   (416 )
 
NET INCOME ATTRIBUTABLE TO DEVRY INC. $ 56,821   $ 67,131   $ 139,096   $ 133,480  
 
EARNINGS PER COMMON SHARE ATTRIBUTABLE
TO DEVRY INC. SHAREHOLDERS
Basic $ 0.89   $ 1.01   $ 2.16   $ 1.97  
Diluted $ 0.88   $ 1.00   $ 2.15   $ 1.96  
 
Cash Dividend Declared per Common Share $ -   $ -   $ 0.17   $ 0.15  

               
DEVRY INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
 
For The Nine Months
Ended March 31,
2013 2012
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 140,206 $ 133,896
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
 
Stock-Based Compensation Expense 12,090 12,891
Depreciation 63,717 56,512
Amortization 7,605 8,336
Impairment of Goodwill and Intangible Assets - 75,039
Provision for Refunds and Uncollectible Accounts 62,432 73,058
Deferred Income Taxes (2,760 ) (5,157 )
Loss on Disposals of Land, Buildings and Equipment 7,914 805
Realized Gain on Sale of Assets - (3,695 )
Changes in Assets and Liabilities, Net of Effects from
Acquisitions and Divestitures of Businesses:
Restricted Cash (4,653 ) (10,886 )
Accounts Receivable (139,481 ) (212,973 )
Prepaid Expenses And Other 34,216 (5,392 )
Accounts Payable (9,095 ) (11,327 )
Accrued Salaries, Wages, Expenses and Benefits 10,812 (26,149 )
Advance Tuition Payments (3,527 ) 877
Deferred Tuition Revenue   102,947     269,294  
 
NET CASH PROVIDED BY OPERATING ACTIVITIES   282,423     355,129  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (79,329 ) (92,167 )
Marketable Securities Purchased (268 ) (66 )
Marketable Securities Sales - -
Payment for Purchase of Businesses, Net of Cash Acquired (31,386 ) (250,150 )
Cash Received from Sale of Assets - 4,475
Other   -     -  
 
NET CASH USED IN INVESTING ACTIVITIES   (110,983 )   (337,908 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Exercise of Stock Options 1,774 6,041
Proceeds from Stock issued Under Employee Stock Purchase Plan 1,278 1,298
Repurchase of Common Stock for Treasury (48,353 ) (124,160 )
Cash Dividends Paid (20,707 ) (18,430 )
Excess Tax Benefit from Stock-Based Payments (332 ) 727
Payment of Debt Financing Fees   -     (70 )
 
NET CASH USED IN FINANCING ACTIVITIES   (66,340 )   (134,594 )
 
Effects of Exchange Rate Differences   (1,182 )   (332 )
 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 103,918 (117,705 )
 
Cash and Cash Equivalents at Beginning of Period   174,076     447,145  
 
Cash and Cash Equivalents at End of Period $ 277,994   $ 329,440  

 
DEVRY INC.

SEGMENT INFORMATION

(Dollars in Thousands)
(Unaudited)
PRELIMINARY
           
For The Quarter For The Nine Months
Ended March 31, Ended March 31,
Increase Increase
2013 2012 (Decrease) 2013 2012 (Decrease)
REVENUES:
Business, Technology and Management $ 283,540 $ 338,790 -16.3 % $ 848,393 $ 1,001,959 -15.3 %
Medical and Healthcare 175,125 160,483 9.1 % 501,228 461,456 8.6 %
International, K-12 and Professional Education 51,209 41,534 23.3 % 148,233 120,479 23.0 %
Intersegment Revenues   (1,122 )   -   NM   (1,122 )   -   NM
 
Total Consolidated Revenues   508,752     540,807   -5.9 %   1,496,732     1,583,894   -5.5 %
 
OPERATING INCOME:
Business, Technology and Management 34,431 64,667 -46.8 % 98,836 183,850 -46.2 %
Medical and Healthcare 34,635 25,963 33.4 % 86,522 (2,681 ) NM
International, K-12 and Professional Education 8,582 7,214 19.0 % 22,210 14,378 54.5 %
Reconciling Items:
Amortization Expense (2,421 ) (2,800 ) -13.5 % (7,111 ) (7,844 ) -9.3 %
Depreciation and Other   (1,624 )   410   NM   (15,159 )   1,372   NM
 
Total Consolidated Operating Income 73,603 95,454 -22.9 % 185,298 189,075 -2.0 %
 
INTEREST AND OTHER INCOME (EXPENSE):
Interest Income 415 110 277.3 % 1,206 520 131.9 %
Interest Expense (756 ) (650 ) 16.3 % (3,006 ) (1,653 ) 81.9 %
Net Gain on Sale of Assets   -     -   NM   -     3,695   NM
 
Net Interest and Other Income (Expense)   (341 )   (540 ) -36.9 %   (1,800 )   2,562   NM
 
Total Consolidated Income before Income Taxes $ 73,262   $ 94,914   -22.8 % $ 183,498   $ 191,637   -4.2 %
 
 
 
Restructuring charges were recorded for the three and nine months ended March 31, 2013. These charges are related to DeVry Inc. (not related to any segment), the Business, Technology and Management segment and DeVry's Carrington Colleges Group and DeVry Medical International both of which are part of the Medical and Healthcare segment. Intangible asset and goodwill impairment charges were recorded for the three and nine month periods ended March 31, 2012. 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 Nine Months
Ended March 31, Ended March 31,
Increase Increase
2013 2012 (Decrease) 2013 2012 (Decrease)
Business, Technology and Management Operating Income $ 34,431 $ 64,667 -46.8 % $ 98,836 $ 183,850 -46.2 %
Restructuring Charge   986     -   NM   1,186     -   NM
Business, Technology and Management Operating Income
Excluding Restructuring Charge $ 35,417   $ 64,667   -45.2 % $ 100,022   $ 183,850   -45.6 %
 
Medical and Healthcare Operating Income $ 34,635 $ 25,963 33.4 % $ 86,522 $ (2,681 ) NM
Restructuring Charge 1,043 - NM 2,459 - NM
Asset Impairment Charge   -     -   NM   -     75,039   NM
Medical and Healthcare Operating Income
Excluding Charge for Asset Impairments $ 35,678   $ 25,963   37.4 % $ 88,981   $ 72,358   23.0 %

Contacts

DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 353-3800
or
Media Contact:
Mike DeGraff
mdegraff@sardverb.com
(312) 895-4700

Release Summary

DeVry Inc. Announces Third-Quarter 2013 Results

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Contacts

DeVry Inc.
Investor Contact:
Joan Bates
jbates@devry.com
(630) 353-3800
or
Media Contact:
Mike DeGraff
mdegraff@sardverb.com
(312) 895-4700