R
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
DELAWARE
|
36-3150143
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
|
ONE
TOWER LANE, SUITE 1000,
|
60181
|
|
OAKBROOK
TERRACE, ILLINOIS
|
(Zip
Code)
|
|
(Address
of principal executive offices)
|
Large
Accelerated Filer R
|
Accelerated
Filer £
|
Non-Accelerated
Filer £
|
|
Page No.
|
||
—
|
|||
3
|
|||
4
|
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5
|
|||
6
|
|||
—
|
16
|
||
—
|
24
|
||
—
|
25
|
||
—
|
26
|
||
—
|
27
|
||
—
|
27
|
||
—
|
27
|
||
28
|
PART
I -
|
Financial
Information
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2006
|
2006
|
2005
|
|||||||
(Dollars
in thousands)
|
||||||||||
Current
Assets:
|
||||||||||
Cash
and Cash Equivalents
|
$
|
168,646
|
$
|
130,583
|
$
|
119,829
|
||||
Restricted
Cash
|
30,198
|
20,632
|
26,217
|
|||||||
Accounts
Receivable, Net
|
76,803
|
46,567
|
83,585
|
|||||||
Inventories
|
129
|
133
|
95
|
|||||||
Deferred
Income Taxes, Net
|
15,485
|
13,700
|
17,142
|
|||||||
Prepaid
Expenses and Other
|
22,463
|
16,458
|
16,478
|
|||||||
Total
Current Assets
|
313,724
|
228,073
|
263,346
|
|||||||
Land,
Buildings and Equipment:
|
||||||||||
Land
|
61,642
|
67,756
|
68,015
|
|||||||
Buildings
|
209,668
|
222,059
|
222,479
|
|||||||
Equipment
|
248,476
|
245,360
|
237,620
|
|||||||
Construction
In Progress
|
12,278
|
9,057
|
4,105
|
|||||||
532,064
|
544,232
|
532,219
|
||||||||
Accumulated
Depreciation and Amortization
|
(274,823
|
)
|
(271,306
|
)
|
(249,966
|
)
|
||||
Land,
Buildings and Equipment, Net
|
257,241
|
272,926
|
282,253
|
|||||||
Other
Assets:
|
||||||||||
Intangible
Assets, Net
|
61,955
|
63,762
|
71,118
|
|||||||
Goodwill
|
291,113
|
291,113
|
291,308
|
|||||||
Perkins
Program Fund, Net
|
13,450
|
13,450
|
13,290
|
|||||||
Other
Assets
|
2,639
|
3,158
|
4,481
|
|||||||
Total
Other Assets
|
369,157
|
371,483
|
380,197
|
|||||||
TOTAL
ASSETS
|
$
|
940,122
|
$
|
872,482
|
$
|
925,796
|
||||
LIABILITIES:
|
||||||||||
Current
Liabilities:
|
||||||||||
Current
Portion of Debt
|
$
|
75,000
|
$
|
60,000
|
$
|
50,000
|
||||
Accounts
Payable
|
34,313
|
39,677
|
24,154
|
|||||||
Accrued
Salaries, Wages and Benefits
|
34,917
|
35,600
|
30,784
|
|||||||
Accrued
Expenses
|
45,268
|
27,639
|
30,525
|
|||||||
Advance
Tuition Payments
|
18,699
|
16,584
|
15,664
|
|||||||
Deferred
Tuition Revenue
|
103,745
|
31,769
|
95,446
|
|||||||
Total
Current Liabilities
|
311,942
|
211,269
|
246,573
|
|||||||
Other
Liabilities:
|
||||||||||
Revolving
Loan
|
10,000
|
—
|
—
|
|||||||
Senior
Notes
|
—
|
65,000
|
125,000
|
|||||||
Deferred
Income Taxes, Net
|
10,705
|
12,564
|
15,963
|
|||||||
Accrued
Postemployment Agreements
|
5,565
|
5,594
|
6,352
|
|||||||
Deferred
Rent and Other
|
14,519
|
13,448
|
12,613
|
|||||||
Total
Other Liabilities
|
40,789
|
96,606
|
159,928
|
|||||||
TOTAL
LIABILITIES
|
352,731
|
307,875
|
406,501
|
|||||||
SHAREHOLDERS’
EQUITY:
|
||||||||||
Common
Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
70,823,000; 70,757,000 and 70,527,000 Shares Issued and
Outstanding at September 30, 2006, June 30, 2006 and September 30,
2005, Respectively
|
709
|
708
|
706
|
|||||||
Additional
Paid-in Capital
|
126,186
|
124,550
|
117,463
|
|||||||
Retained
Earnings
|
462,813
|
441,893
|
403,572
|
|||||||
Accumulated
Other Comprehensive Loss
|
(423
|
)
|
(424
|
)
|
(69
|
)
|
||||
Treasury
Stock, at Cost ( 91,927; 97,770 and 109,767 Shares, Respectively)
|
(1,894
|
)
|
(2,120
|
)
|
(2,377
|
)
|
||||
TOTAL
SHAREHOLDERS’ EQUITY
|
587,391
|
564,607
|
519,295
|
|||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
940,122
|
$
|
872,482
|
$
|
925,796
|
For
the Three Months
|
|||||||
Ended
September 30,
|
|||||||
|
2006
|
2005
|
|||||
REVENUES:
|
|||||||
Tuition
|
$
|
202,633
|
$
|
183,053
|
|||
Other
Educational
|
16,582
|
13,308
|
|||||
Interest
|
1,438
|
419
|
|||||
Total
Revenues
|
220,653
|
196,780
|
|||||
COSTS
AND EXPENSES:
|
|||||||
Cost
of Educational Services
|
120,304
|
111,709
|
|||||
Gain
on Sale of Assets
|
(19,855
|
)
|
—
|
||||
Student
Services and Administrative Expense
|
85,798
|
75,890
|
|||||
Interest
Expense
|
2,169
|
2,655
|
|||||
Total
Costs and Expenses
|
188,416
|
190,254
|
|||||
Income
Before Income Taxes
|
32,237
|
6,526
|
|||||
Income
Tax Provision
|
11,317
|
1,794
|
|||||
NET
INCOME
|
$
|
20,920
|
$
|
4,732
|
|||
EARNINGS
PER COMMON SHARE:
|
|||||||
Basic
|
$
|
0.30
|
$
|
0.07
|
|||
Diluted
|
$
|
0.29
|
$
|
0.07
|
|
For
the Three Months
|
||||||
|
Ended
September 30,
|
||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
Income
|
$
|
20,920
|
$
|
4,732
|
|||
Adjustments
to Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|||||||
Stock-Based
Compensation Charge
|
978
|
1,145
|
|||||
Depreciation
|
8,392
|
9,093
|
|||||
Amortization
|
2,200
|
2,701
|
|||||
Provision
for Refunds and Uncollectible Accounts
|
13,308
|
11,264
|
|||||
Deferred
Income Taxes
|
(3,652
|
)
|
14
|
||||
(Gain)
Loss on Disposals of Land, Buildings and Equipment
|
(19,724
|
)
|
10
|
||||
Changes
in Assets and Liabilities, Net of Effects from Acquisitions of
Businesses:
|
|||||||
Restricted
Cash
|
(9,566
|
)
|
(12,279
|
)
|
|||
Accounts
Receivable
|
(43,544
|
)
|
(55,604
|
)
|
|||
Inventories
|
4
|
77
|
|||||
Prepaid
Expenses and Other
|
(4,837
|
)
|
(6,418
|
)
|
|||
Accounts
Payable
|
(5,364
|
)
|
(6,556
|
)
|
|||
Accrued
Salaries, Wages, Benefits and Expenses
|
16,946
|
(7,281
|
)
|
||||
Advance
Tuition Payments
|
2,115
|
941
|
|||||
Deferred
Tuition Revenue
|
71,976
|
72,623
|
|||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
50,152
|
14,462
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Capital
Expenditures
|
(7,761
|
)
|
(4,564
|
)
|
|||
Net
Proceeds from Sale of Land and Building
|
34,778
|
—
|
|||||
Payments
for Purchases of Businesses, Net of Cash Acquired
|
—
|
(2,000
|
)
|
||||
NET
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
27,017
|
(6,564
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from Exercise of Stock Options
|
658
|
328
|
|||||
Proceeds
from Stock Issued Under Employee Stock Purchase Plan
|
227
|
—
|
|||||
Excess
Tax Benefit from Stock-Based Payments
|
8
|
42
|
|||||
Repayments
Under Senior Notes
|
(40,000
|
)
|
—
|
||||
Repayments
Under Revolving Credit Facility
|
—
|
(50,000
|
)
|
||||
NET
CASH USED IN FINANCING ACTIVITIES
|
(39,107
|
)
|
(49,630
|
)
|
|||
Effects
of Exchange Rate Differences
|
1
|
(262
|
)
|
||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
38,063
|
(41,994
|
)
|
||||
Cash
and Cash Equivalents at Beginning of
Period
|
130,583
|
161,823
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
168,646
|
$
|
119,829
|
|||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Interest
Paid During the Period
|
$
|
2,150
|
$
|
2,206
|
|||
Income
Taxes Paid During the Period, Net
|
225
|
6,900
|
NOTE 1:
|
INTERIM
FINANCIAL STATEMENTS
|
NOTE 2:
|
SUMMARY
OF SIGNIFICANT ACCOUNTING
POLICIES
|
NOTE 3:
|
STOCK-BASED
COMPENSATION
|
Options
Outstanding
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Life
|
Aggregate
Intrinsic Value ($000)
|
||||||||||
Outstanding
at July 1, 2006
|
3,428,211
|
$
|
22.91
|
||||||||||
Options
Granted
|
44,000
|
$
|
21.05
|
||||||||||
Options
Exercised
|
(60,395
|
)
|
$
|
13.37
|
|||||||||
Options
Canceled
|
(37,741
|
)
|
$
|
26.11
|
|||||||||
Outstanding
at September 30, 2006
|
3,374,075
|
$
|
23.02
|
6.14
|
$
|
4,037
|
|||||||
Exercisable
at September 30, 2006
|
2,634,689
|
$
|
23.34
|
5.69
|
$
|
3,179
|
Fiscal
Year
|
|||||||
|
2007
|
2006
|
|||||
Expected
Life (in Years)
|
5.42
|
5.42
|
|||||
Expected
Volatility
|
41.35
|
%
|
41.35
|
%
|
|||
Risk-free
Interest Rate
|
3.82
|
%
|
3.82
|
%
|
|||
Pre-vesting
Forfeiture Rate
|
4.00
|
%
|
4.00
|
%
|
|
For
the Three Months
Ended
September 30,
|
||||||
|
2006
|
2005
|
|||||
(Dollars
in thousands)
|
|||||||
Cost
of Educational Services
|
$
|
313
|
$
|
366
|
|||
Student
Services and Administrative Expense
|
665
|
779
|
|||||
Income
Tax Benefit
|
(169
|
)
|
(161
|
)
|
|||
Net
Stock-Based Compensation Expense
|
$
|
809
|
$
|
984
|
NOTE 4:
|
BUSINESS
COMBINATIONS
|
NOTE 5:
|
INTANGIBLE
ASSETS
|
|
As
of September 30, 2006
|
||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
||||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(39,494
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,605
|
)
|
||||
Class Materials
|
2,900
|
(1,150
|
)
|
||||
Trade
Names
|
110
|
(83
|
)
|
||||
Other
|
620
|
(620
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(43,952
|
)
|
||
Unamortized
Intangible Assets:
|
|||||||
Trade
Names
|
$
|
20,972
|
|||||
Trademark
|
1,645
|
||||||
Ross
Title IV Eligibility and Accreditations
|
14,100
|
||||||
Intellectual
Property
|
13,940
|
||||||
Chamberlain
Title IV Eligibility and Accreditations
|
1,200
|
||||||
Total
|
$
|
51,857
|
As
of September 30, 2005
|
|||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
||||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(30,595
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,573
|
)
|
||||
Class Materials
|
2,900
|
(950
|
)
|
||||
Trade
Names
|
110
|
(55
|
)
|
||||
Other
|
620
|
(616
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(34,789
|
)
|
||
Unamortized
Intangible Assets:
|
|||||||
Trade
Names
|
$
|
20,972
|
|||||
Trademark
|
1,645
|
||||||
Ross
Title IV Eligibility and Accreditations
|
14,100
|
||||||
Intellectual
Property
|
13,940
|
||||||
Chamberlain
Title IV Eligibility and Accreditations
|
1,200
|
||||||
Total
|
$
|
51,857
|
Fiscal
Year
|
|
|||
2007
|
$
|
6,843
|
||
2008
|
3,660
|
|||
2009
|
203
|
|||
2010
|
200
|
|||
2011
|
200
|
Year
1
|
27.4
|
%
|
||
Year
2
|
29.0
|
%
|
||
Year
3
|
21.0
|
%
|
||
Year
4
|
14.5
|
%
|
||
Year
5
|
8.1
|
%
|
NOTE 6:
|
SALE
OF FACILITIES
|
NOTE 7:
|
REDUCTION
IN WORKFORCE CHARGES
|
NOTE
8:
|
INCOME
TAXES
|
NOTE 9:
|
LONG-TERM
DEBT
|
Outstanding
Debt
|
Effective
|
|||||||||
at
September 30,
|
Interest
Rate at
|
|||||||||
|
2006
|
2005
|
Sept. 30,
2006
|
|||||||
Revolving
Credit Agreement:
|
||||||||||
DeVry
Inc. as borrower
|
$
|
10,000
|
$
|
40,000
|
6.32
|
%
|
||||
GEI
as borrower
|
—
|
10,000
|
—
|
|||||||
Total
|
$
|
10,000
|
$
|
50,000
|
6.32
|
%
|
||||
Senior
Notes:
|
||||||||||
DeVry
Inc. as borrower
|
$
|
75,000
|
$
|
75,000
|
6.74
|
%
|
||||
GEI
as borrower
|
—
|
50,000
|
—
|
|||||||
Total
|
$
|
75,000
|
$
|
125,000
|
6.74
|
%
|
||||
Total
Outstanding Debt
|
$
|
85,000
|
$
|
175,000
|
6.69
|
%
|
||||
Current
Maturities of Debt
|
$
|
75,000
|
$
|
50,000
|
6.74
|
%
|
||||
Total
Long-term Debt
|
$
|
10,000
|
$
|
125,000
|
6.32
|
%
|
NOTE 10:
|
COMMITMENTS
AND CONTINGENCIES
|
NOTE 11:
|
SEGMENT
INFORMATION
|
|
For
the Three Months
|
||||||
|
Ended
September 30,
|
||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Revenues:
|
|||||||
DeVry
University
|
$
|
173,310
|
$
|
160,719
|
|||
Professional
and Training
|
16,281
|
12,280
|
|||||
Medical &
Healthcare
|
31,062
|
23,781
|
|||||
Total
Consolidated Revenues
|
$
|
220,653
|
$
|
196,780
|
|||
Operating
Income:
|
|||||||
DeVry
University
|
$
|
19,036
|
$
|
(74
|
)
|
||
Professional
and Training
|
6,963
|
4,570
|
|||||
Medical &
Healthcare
|
11,134
|
7,532
|
|||||
Reconciling
Items:
|
|||||||
Amortization
Expense
|
(1,807
|
)
|
(2,581
|
)
|
|||
Interest
Expense
|
(2,169
|
)
|
(2,655
|
)
|
|||
Depreciation
and Other
|
(920
|
)
|
(266
|
)
|
|||
Total
Consolidated Income before Income Taxes
|
$
|
32,237
|
$
|
6,526
|
|||
Segment
Assets:
|
|||||||
DeVry
University
|
$
|
449,615
|
$
|
423,735
|
|||
Professional
and Training
|
85,987
|
79,484
|
|||||
Medical &
Healthcare
|
380,615
|
396,027
|
|||||
Corporate
|
23,905
|
26,550
|
|||||
Total
Consolidated Assets
|
$
|
940,122
|
$
|
925,796
|
|||
Additions
to Long-lived Assets:
|
|||||||
DeVry
University
|
$
|
3,848
|
$
|
3,056
|
|||
Professional
and Training
|
33
|
25
|
|||||
Medical &
Healthcare
|
3,880
|
1,483
|
|||||
Total
Consolidated Additions to Long-lived Assets
|
$
|
7,761
|
$
|
4,564
|
For
the Three Months
|
|||||||
Ended
September 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Depreciation
Expense:
|
|||||||
DeVry
University
|
$
|
6,921
|
$
|
7,777
|
|||
Professional
and Training
|
143
|
114
|
|||||
Medical &
Healthcare
|
1,081
|
955
|
|||||
Corporate
|
247
|
247
|
|||||
Total
Consolidated Depreciation
|
$
|
8,392
|
$
|
9,093
|
|||
Intangible
Asset Amortization Expense:
|
|||||||
DeVry
University
|
$
|
—
|
$
|
—
|
|||
Professional
and Training
|
64
|
66
|
|||||
Medical &
Healthcare
|
1,743
|
2,515
|
|||||
Total
Consolidated Amortization
|
$
|
1,807
|
$
|
2,581
|
|
For
the Three Months
|
||||||
|
Ended
September 30,
|
||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
Revenues
from Unaffiliated Customers:
|
|||||||
Domestic
Operations
|
$
|
189,724
|
$
|
172,054
|
|||
International
Operations:
|
|||||||
Dominica
and St. Kitts/Nevis
|
28,085
|
22,380
|
|||||
Other
|
2,844
|
2,346
|
|||||
Total
International
|
30,929
|
24,726
|
|||||
Consolidated
|
$
|
220,653
|
$
|
196,780
|
|||
Long-lived
Assets:
|
|||||||
Domestic
Operations
|
$
|
319,344
|
$
|
352,499
|
|||
International
Operations:
|
|||||||
Dominica
and St. Kitts/Nevis
|
306,807
|
309,502
|
|||||
Other
|
247
|
449
|
|||||
Total
International
|
307,054
|
309,951
|
|||||
Consolidated
|
$
|
626,398
|
$
|
662,450
|
ITEM 2 —
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF
OPERATIONS
|
·
|
All
three of DeVry’s business segments achieved enrollment growth for both new
and total students, due in part to increased investments in marketing
and
recruiting and continued demand for DeVry’s high quality educational
programs and offerings.
|
·
|
In
connection with DeVry’s real estate optimization strategy, the DeVry
University facility in West Hills, California was sold for $36.0
million
resulting in a pre tax gain of $19.9 million. Net of tax, the gain
on the
sale was $11.8 million or $0.16 per share. DeVry is leasing back
the
entire building for the next several months to serve its existing
student
population until a leased replacement facility in nearby Sherman
Oaks,
California is operational.
|
·
|
Cash
flow increased significantly as cash provided by operations more
than
doubled as compared to the prior year and from net proceeds received
on
the sale of the West Hills
facility.
|
·
|
DeVry’s
financial position improved as it paid down $40 million of debt
during July 2006. In October 2006, DeVry paid down the remaining
$75
million of Senior Notes with a combination of available cash and
revolver
borrowings which are at a more favorable interest
rate.
|
For
the Three Months Ended
September
30,
|
|||||||
2006
|
2005
|
||||||
Net
Income
|
$
|
20,920
|
$
|
4,732
|
|||
Earnings
per Share (diluted)
|
$
|
0.29
|
$
|
0.07
|
|||
Gain
on Sale of Assets (net of tax)
|
$
|
11,840
|
--
|
||||
Earnings
per Share (diluted)
|
$
|
0.16
|
--
|
||||
Net
Income Excluding the Gain on Sale of Assets
|
$
|
9,080
|
$
|
4,732
|
|||
Earnings
per Share (diluted)
|
$
|
0.13
|
$
|
0.07
|
For
the Three Months Ended
September
30,
|
|||||||
|
2006
|
2005
|
|||||
Revenue
|
100.0
|
%
|
100.0
|
%
|
|||
Cost
of Educational Services
|
54.5
|
%
|
56.8
|
%
|
|||
Gain
on Sale of Assets
|
(9.0
|
%)
|
—
|
||||
Student
Services & Admin. Exp
|
38.9
|
%
|
38.6
|
%
|
|||
Interest
Expense
|
1.0
|
%
|
1.3
|
%
|
|||
Total
Costs and Expenses
|
85.4
|
%
|
96.7
|
%
|
|||
Income
Before Income Taxes
|
14.6
|
%
|
3.3
|
%
|
|||
Income
Tax Provision
|
5.1
|
%
|
0.9
|
%
|
|||
Net
Income
|
9.5
|
%
|
2.4
|
%
|
·
|
Declined
by 2.3% from fall 2004 (39,450 students) to fall 2005 (38,546
students);
|
·
|
Increased
by 1.2% from spring 2005 (38,083 students) to spring 2006 (38,523
students); and
|
·
|
Increased
by 2.5% from summer 2005 (36,220 students) to summer 2006 (37,132
students).
|
·
|
Increased
by 6.4% from fall 2004 (10,018 students) to fall 2005 (10,663 students);
|
·
|
Increased
by 16.4% from spring 2005 (8,902 students) to spring 2006 (10,359
students); and
|
·
|
Increased
by 12.2% from summer 2005 (11,293 students) to summer 2006 (12,671
students). The summer 2006 term marked the fifth consecutive term
in which
new undergraduate student enrollments increased from the year-ago
level.
|
·
|
Increased
by 10.3% from the July 2005 session (11,434 coursetakers) to the
July 2006
(12,617 coursetakers) session; and
|
·
|
Increased
by 10.5% from the September 2005 session (12,732 coursetakers) to
the
September 2006 session (14,069
coursetakers).
|
·
|
Undergraduate
program tuition increased by approximately 4.5% in July
2006; and
|
·
|
Graduate
school program tuition increased by approximately 4.5% for the July
2006
session following a 5.0% increase for the September 2005
session.
|
·
|
Increased
by 4.5% from January 2005 (3,122 students) to January 2006 (3,264
students);
|
·
|
Increased
by 13.2% from May 2005 (3,029 students) to May 2006 (3,428 students);
and
|
·
|
Increased
by 15.4% from September 2005 (3,227 students) to September 2006 (3,724
students).
|
·
|
Increased
by 67.5% from January 2005 (231 students) to January 2006 (387
students);
|
·
|
Increased
by 63.8% from May 2005 (268 students) to May 2006 (439 students);
and
|
·
|
Increased
by 9.2% from September 2005 (575 students) to September 2006 (628
students). In the September 2005 term, new student enrollments grew
40.6%.
|
·
|
Increased
by 126% from June 2005 (263 students) to July 2006 (594
students);
|
·
|
Tuition
and fees for the Ross University beginning basic sciences programs
increased by approximately 5% for the September
2006;
|
·
|
Tuition
and fees for the Ross University final clinical portion of the programs
increased by approximately 5% as compared to the year-ago quarter;
and
|
·
|
Tuition
for Chamberlain College of Nursing increased approximately 5% for
the
2006-2007 academic year (effective July 2006).
|
ITEM 3 —
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4 —
|
CONTROLS
AND PROCEDURES
|
PART II-
|
Other
Information
|
ITEM
1 -
|
LEGAL
PROCEEDINGS
|
ITEM 1A —
|
RISK
FACTORS
|
ITEM 2 —
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
Period
|
Total
Number of Shares
Purchased1
|
Average
Price Paid per
Share
|
Total
Number of Shares Purchased as part
of Publicly Announced Plans or
Programs
|
Maximum
Number of Shares that May Yet Be Purchased Under the
Plans or Programs
|
|||||||||
July
2006
|
-
|
-
|
N/A
|
N/A
|
|||||||||
August
2006
|
-
|
-
|
N/A
|
N/A
|
|||||||||
September
2006
|
4,625
|
$
|
22.67
|
N/A
|
N/A
|
||||||||
Total
|
4,625
|
$
|
22.67
|
1
|
Represents
shares delivered back to the issuer upon employees’ exercise of incentive
stock options under a tax-free swap agreement pursuant to the terms
of
DeVry’s stock incentive plans.
|
ITEM 6 —
|
EXHIBITS
|
Exhibit
10(w)
|
Letter
Agreement between the Registrant and Ronald L. Taylor, CEO, dated
August
15, 2006 (incorporated by reference to Exhibit 10.1 to the Company’s Form
8-K dated August 16, 2006)
|
|
Letter
Agreement between the Registrant and Richard M. Gunst, CFO, dated
July 24,
2006
|
||
Certification
Pursuant to Rules 13a-14(a) and 15d-14(a) under the United States
Securities Exchange Act of 1934, as Amended.
|
||
Certification
Pursuant to Title 18 of the United States Code Section
1350
|
DeVry
Inc.
|
|||
Date:
November 9, 2006
|
By
|
/s/ Ronald
L. Taylor
|
|
Ronald
L. Taylor
|
|||
Chief
Executive Officer
|
|||
Date:
November 9, 2006
|
By
|
/s/ Richard
M. Gunst
|
|
Richard
M. Gunst
|
|||
Senior
Vice President and Chief Financial Officer
|