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.
|
||
PART I
- Financial Information
|
|||
—
|
|||
|
3
|
||
|
4
|
||
5
|
|||
|
6
|
||
—
|
17
|
||
—
|
25
|
||
—
|
26
|
||
|
|||
|
PART II
- Other Information
|
||
—
|
27
|
||
—
|
28
|
||
—
|
28
|
||
—
|
28
|
||
—
|
29
|
||
Signatures |
30
|
December
31,
|
June
30,
|
December
31,
|
||||||||
|
2006
|
2006
|
2005
|
|||||||
(Dollars
in thousands)
|
||||||||||
Current
Assets:
|
||||||||||
Cash
and Cash Equivalents
|
$
|
171,346
|
$
|
130,583
|
$
|
143,765
|
||||
Restricted
Cash
|
24,091
|
20,632
|
38,997
|
|||||||
Accounts
Receivable, Net
|
60,350
|
46,567
|
85,467
|
|||||||
Inventories
|
118
|
133
|
85
|
|||||||
Deferred
Income Taxes, Net
|
15,344
|
13,700
|
17,142
|
|||||||
Prepaid
Expenses and Other
|
21,255
|
16,458
|
15,843
|
|||||||
Total
Current Assets
|
292,504
|
228,073
|
301,299
|
|||||||
Land,
Buildings and Equipment:
|
||||||||||
Land
|
61,789
|
67,756
|
67,633
|
|||||||
Buildings
|
212,171
|
222,059
|
219,143
|
|||||||
Equipment
|
252,269
|
245,360
|
239,442
|
|||||||
Construction
In Progress
|
12,880
|
9,057
|
5,508
|
|||||||
539,109
|
544,232
|
531,726
|
||||||||
Accumulated
Depreciation and Amortization
|
(282,458
|
)
|
(271,306
|
)
|
(254,033
|
)
|
||||
Land,
Buildings and Equipment, Net
|
256,651
|
272,926
|
277,693
|
|||||||
Other
Assets:
|
||||||||||
The
accompanying notes are an integral part of these consolidated financial
statements.Intangible Assets, Net
|
60,150
|
63,762
|
68,538
|
|||||||
Goodwill
|
291,113
|
291,113
|
291,306
|
|||||||
Perkins
Program Fund, Net
|
13,450
|
13,450
|
13,290
|
|||||||
Other
Assets
|
5,933
|
3,158
|
4,328
|
|||||||
Total
Other Assets
|
370,646
|
371,483
|
377,462
|
|||||||
TOTAL
ASSETS
|
$
|
919,801
|
$
|
872,482
|
$
|
956,454
|
||||
LIABILITIES:
|
||||||||||
Current
Liabilities:
|
||||||||||
Current
Portion of Debt
|
$
|
50,000
|
$
|
60,000
|
$
|
35,000
|
||||
Accounts
Payable
|
32,975
|
39,677
|
29,983
|
|||||||
Accrued
Salaries, Wages and Benefits
|
43,642
|
35,600
|
33,794
|
|||||||
Accrued
Expenses
|
29,059
|
27,639
|
26,414
|
|||||||
Advance
Tuition Payments
|
7,367
|
16,584
|
28,875
|
|||||||
Deferred
Tuition Revenue
|
119,950
|
31,769
|
110,413
|
|||||||
Total
Current Liabilities
|
282,993
|
211,269
|
264,479
|
|||||||
Other
Liabilities:
|
||||||||||
Senior
Notes
|
—
|
65,000
|
125,000
|
|||||||
Deferred
Income Taxes, Net
|
12,407
|
12,564
|
16,078
|
|||||||
Accrued
Postemployment Agreements
|
5,341
|
5,594
|
6,392
|
|||||||
Deferred
Rent and Other
|
14,698
|
13,448
|
12,695
|
|||||||
Total
Other Liabilities
|
32,446
|
96,606
|
160,165
|
|||||||
TOTAL
LIABILITIES
|
315,439
|
307,875
|
424,644
|
|||||||
SHAREHOLDERS’
EQUITY:
|
||||||||||
Common
Stock, $0.01 Par Value, 200,000,000 Shares Authorized;
70,907,000; 70,757,000 and 70,564,000 Shares Issued and
Outstanding at December 31, 2006, June 30, 2006 and December 31,
2005, Respectively
|
710
|
708
|
706
|
|||||||
Additional
Paid-in Capital
|
129,928
|
124,550
|
119,154
|
|||||||
Retained
Earnings
|
475,665
|
441,893
|
414,400
|
|||||||
Accumulated
Other Comprehensive Loss
|
(50
|
)
|
(424
|
)
|
(73
|
)
|
||||
Treasury
Stock, at Cost ( 86,490; 97,770 and 109,767 Shares, Respectively)
|
(1,891
|
)
|
(2,120
|
)
|
(2,377
|
)
|
||||
TOTAL
SHAREHOLDERS’ EQUITY
|
604,362
|
564,607
|
531,810
|
|||||||
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
919,801
|
$
|
872,482
|
$
|
956,454
|
For
the Quarter
|
For
the Six Months
|
||||||||||||
Ended
December 31,
|
Ended
December 31,
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
REVENUES:
|
|||||||||||||
Tuition
|
$
|
217,076
|
$
|
196,032
|
$
|
419,709
|
$
|
379,085
|
|||||
Other
Educational
|
18,528
|
13,398
|
35,110
|
26,706
|
|||||||||
Interest
|
1,932
|
439
|
3,370
|
858
|
|||||||||
Total
Revenues
|
237,536
|
209,869
|
458,189
|
406,649
|
|||||||||
COSTS
AND EXPENSES:
|
|||||||||||||
Cost
of Educational Services
|
120,580
|
111,468
|
240,884
|
223,177
|
|||||||||
Gain
on Sale of Assets
|
-
|
(451
|
)
|
(19,855
|
)
|
(451
|
)
|
||||||
Student
Services and Administrative Expense
|
93,238
|
81,887
|
179,036
|
157,777
|
|||||||||
Interest
Expense
|
1,720
|
2,606
|
3,889
|
5,261
|
|||||||||
Total
Costs and Expenses
|
215,538
|
195,510
|
403,954
|
385,764
|
|||||||||
Income
Before Income Taxes
|
21,998
|
14,359
|
54,235
|
20,885
|
|||||||||
Income
Tax Provision
|
5,601
|
3,531
|
16,918
|
5,325
|
|||||||||
NET
INCOME
|
$
|
16,397
|
$
|
10,828
|
$
|
37,317
|
$
|
15,560
|
|||||
EARNINGS
PER COMMON SHARE:
|
|||||||||||||
Basic
|
$
|
0.23
|
$
|
0.15
|
$
|
0.53
|
$
|
0.22
|
|||||
Diluted
|
$
|
0.23
|
$
|
0.15
|
$
|
0.52
|
$
|
0.22
|
|||||
CASH
DIVIDEND DECLARED PER COMMON SHARE
|
$
|
0.05
|
$
|
-
|
$
|
0.05
|
$
|
-
|
|
For
the Six Months
|
||||||
|
Ended
December 31,
|
||||||
2006
|
2005
|
||||||
(Dollars
in Thousands)
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
Income
|
$
|
37,317
|
$
|
15,560
|
|||
Adjustments
to Reconcile Net Income to Net Cash Provided by Operating
Activities:
|
|||||||
Stock-Based
Compensation Charge
|
3,113
|
2,239
|
|||||
Depreciation
|
17,365
|
18,628
|
|||||
Amortization
|
4,585
|
5,402
|
|||||
Provision
for Refunds and Uncollectible Accounts
|
26,440
|
23,578
|
|||||
Deferred
Income Taxes
|
(1,848
|
)
|
56
|
||||
Gain
on Disposals of Land, Buildings and Equipment
|
(19,677
|
)
|
(479
|
)
|
|||
Changes
in Assets and Liabilities, Net of Effects from Acquisitions of
Businesses:
|
|||||||
Restricted
Cash
|
(3,462
|
)
|
(25,059
|
)
|
|||
Accounts
Receivable
|
(40,241
|
)
|
(69,800
|
)
|
|||
Inventories
|
9
|
87
|
|||||
Prepaid
Expenses and Other
|
(7,531
|
)
|
(5,629
|
)
|
|||
Accounts
Payable
|
(6,699
|
)
|
(727
|
)
|
|||
Accrued
Salaries, Wages, Benefits and Expenses
|
5,950
|
(8,382
|
)
|
||||
Advance
Tuition Payments
|
(9,186
|
)
|
14,152
|
||||
Deferred
Tuition Revenue
|
88,181
|
87,590
|
|||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
94,316
|
57,216
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Capital
Expenditures
|
(16,202
|
)
|
(10,848
|
)
|
|||
Net
Proceeds from Sale of Land and Building
|
34,778
|
1,798
|
|||||
Payments
for Purchases of Businesses, Net of Cash Acquired
|
—
|
(1,998
|
)
|
||||
NET
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
18,576
|
(11,048
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from Exercise of Stock Options
|
2,098
|
1,040
|
|||||
Proceeds
from Stock Issued Under Employee Stock Purchase Plan
|
398
|
—
|
|||||
Excess
Tax Benefit from Stock-Based Payments
|
47
|
—
|
|||||
Proceeds
from Revolving Credit Facility
|
40,000
|
—
|
|||||
Repayments
Under Senior Notes
|
(115,000
|
)
|
—
|
||||
Repayments
Under Revolving Credit Facility
|
—
|
(65,000
|
)
|
||||
NET
CASH USED IN FINANCING ACTIVITIES
|
(72,457
|
)
|
(63,960
|
)
|
|||
Effects
of Exchange Rate Differences
|
328
|
(266
|
)
|
||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
40,763
|
(18,058
|
)
|
||||
Cash
and Cash Equivalents at Beginning of
Period
|
130,583
|
161,823
|
|||||
Cash
and Cash Equivalents at End of Period
|
$
|
171,346
|
$
|
143,765
|
|||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Cash
Paid During the Period For:
|
|||||||
Interest
|
$
|
4,014
|
$
|
4,512
|
|||
Income
Taxes, Net
|
17,219
|
14,447
|
|||||
Non-cash
Financing Activity:
|
|||||||
Declaration
of Cash Dividends to be Paid
|
3,545
|
—
|
|
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
|
608,150
|
$
|
21.58
|
||||||||||
Options
Exercised
|
(138,794
|
)
|
$
|
16.57
|
|||||||||
Options
Canceled
|
(77,546
|
)
|
$
|
26.01
|
|||||||||
Outstanding
at December 31, 2006
|
3,820,021
|
$
|
22.86
|
6.48
|
$
|
8,820
|
|||||||
Exercisable
at December 31, 2006
|
2,573,542
|
$
|
23.37
|
5.50
|
$
|
6,192
|
Fiscal
Year
|
|||||||
|
2007
|
2006
|
|||||
Expected
Life (in Years)
|
6.67
|
4.38
|
|||||
Expected
Volatility
|
41.51
|
%
|
41.30
|
%
|
|||
Risk-free
Interest Rate
|
4.57
|
%
|
3.80
|
%
|
|||
Dividend
Yield
|
0.46
|
%
|
-
|
||||
Pre-vesting
Forfeiture Rate
|
4.00
|
%
|
4.00
|
%
|
|
For
the Three Months
Ended
December 31,
|
For
the Six Months
Ended
December 31,
|
|||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
(Dollars
in thousands)
|
|||||||||||||
Cost
of Educational Services
|
$
|
683
|
$
|
350
|
$
|
996
|
$
|
716
|
|||||
Student
Services and Administrative Expense
|
1,452
|
744
|
2,117
|
1,523
|
|||||||||
Income
Tax Benefit
|
(538
|
)
|
(269
|
)
|
(707
|
)
|
(571
|
)
|
|||||
Net
Stock-Based Compensation Expense
|
$
|
1,597
|
$
|
825
|
$
|
2,406
|
$
|
1,668
|
|
As
of December 31, 2006
|
||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
||||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(41,237
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,611
|
)
|
||||
Class Materials
|
2,900
|
(1,200
|
)
|
||||
Trade
Names
|
110
|
(89
|
)
|
||||
Other
|
620
|
(620
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(45,757
|
)
|
||
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 December 31, 2005
|
|||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
||||||
Amortized
Intangible Assets:
|
|||||||
Student
Relationships
|
$
|
47,770
|
$
|
(33,108
|
)
|
||
License
and Non-compete Agreements
|
2,650
|
(2,582
|
)
|
||||
Class Materials
|
2,900
|
(1,000
|
)
|
||||
Trade
Names
|
110
|
(62
|
)
|
||||
Other
|
620
|
(617
|
)
|
||||
Total
|
$
|
54,050
|
$
|
(37,369
|
)
|
||
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
|
%
|
Outstanding
Debt at
December 31,
|
Effective
Interest Rate at
|
|||||||||
2006
|
2005
|
Dec. 31,
2006
|
||||||||
Revolving
Credit Agreement:
|
||||||||||
DeVry
Inc. as borrower
|
$
|
50,000
|
$
|
30,000
|
6.23
|
%
|
||||
GEI
as borrower
|
—
|
5,000
|
—
|
|||||||
Total
|
$
|
50,000
|
$
|
35,000
|
6.23
|
%
|
||||
Senior
Notes:
|
||||||||||
DeVry
Inc. as borrower
|
$
|
—
|
$
|
75,000
|
—
|
|||||
GEI
as borrower
|
—
|
50,000
|
—
|
|||||||
Total
|
$
|
—
|
$
|
125,000
|
—
|
|||||
Total
Outstanding Debt
|
$
|
50,000
|
$
|
160,000
|
6.23
|
%
|
||||
Current
Maturities of Debt
|
$
|
50,000
|
$
|
35,000
|
6.23
|
%
|
||||
Total
Long-term Debt
|
$
|
—
|
$
|
125,000
|
—
|
For
the Quarter
Ended
December 31,
|
For
the Six Months
Ended
December 31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenues:
|
(Dollars
in Thousands)
|
||||||||||||
DeVry
University
|
$
|
186,697
|
$
|
171,676
|
$
|
360,007
|
$
|
332,395
|
|||||
Professional
and Training
|
14,882
|
9,953
|
31,163
|
22,233
|
|||||||||
Medical &
Healthcare
|
35,957
|
28,240
|
67,019
|
52,021
|
|||||||||
Total
Consolidated Revenues
|
$
|
237,536
|
$
|
209,869
|
$
|
458,189
|
$
|
406,649
|
|||||
Operating
Income:
|
|||||||||||||
DeVry
University
|
$
|
7,832
|
$
|
6,737
|
$
|
26,868
|
$
|
6,663
|
|||||
Professional
and Training
|
3,450
|
2,335
|
10,413
|
6,905
|
|||||||||
Medical &
Healthcare
|
14,627
|
10,720
|
25,761
|
18,252
|
|||||||||
Reconciling
Items:
|
|||||||||||||
Amortization
Expense
|
(1,805
|
)
|
(2,580
|
)
|
(3,612
|
)
|
(5,161
|
)
|
|||||
Interest
Expense
|
(1,720
|
)
|
(2,606
|
)
|
(3,889
|
)
|
(5,261
|
)
|
|||||
Depreciation
and Other
|
(386
|
)
|
(247
|
)
|
(1,306
|
)
|
(513
|
)
|
|||||
Total
Consolidated Income before Income Taxes
|
$
|
21,998
|
$
|
14,359
|
$
|
54,235
|
$
|
20,885
|
|||||
Segment
Assets:
|
|||||||||||||
DeVry
University
|
$
|
414,182
|
$
|
436,330
|
$
|
414,182
|
$
|
436,330
|
|||||
Professional
and Training
|
91,567
|
76,461
|
91,567
|
76,461
|
|||||||||
Medical &
Healthcare
|
390,535
|
417,360
|
390,535
|
417,360
|
|||||||||
Corporate
|
23,517
|
26,303
|
23,517
|
26,303
|
|||||||||
Total
Consolidated Assets
|
$
|
919,801
|
$
|
956,454
|
$
|
919,801
|
$
|
956,454
|
|||||
Additions
to Long-lived Assets:
|
|||||||||||||
DeVry
University
|
$
|
5,750
|
$
|
4,336
|
$
|
9,598
|
$
|
7,392
|
|||||
Professional
and Training
|
12
|
123
|
45
|
148
|
|||||||||
Medical &
Healthcare
|
2,679
|
3,823
|
6,559
|
5,306
|
|||||||||
Total
Consolidated Additions to Long-lived Assets
|
$
|
8,441
|
$
|
8,282
|
$
|
16,202
|
$
|
12,846
|
|||||
Depreciation
Expense:
|
|||||||||||||
DeVry
University
|
$
|
7,436
|
$
|
8,201
|
$
|
14,357
|
$
|
15,978
|
|||||
Professional
and Training
|
117
|
114
|
260
|
228
|
|||||||||
Medical &
Healthcare
|
1,173
|
973
|
2,254
|
1,928
|
|||||||||
Corporate
|
247
|
247
|
494
|
494
|
|||||||||
Total
Consolidated Depreciation
|
$
|
8,973
|
$
|
9,535
|
$
|
17,365
|
$
|
18,628
|
|||||
Intangible
Asset Amortization Expense:
|
|||||||||||||
DeVry
University
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||
Professional
and Training
|
63
|
67
|
127
|
133
|
|||||||||
Medical &
Healthcare
|
1,742
|
2,513
|
3,485
|
5,028
|
|||||||||
Total
Consolidated Amortization
|
$
|
1,805
|
$
|
2,580
|
$
|
3,612
|
$
|
5,161
|
For
the Quarter
Ended
December 31,
|
For
the Six Months
Ended
December 31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars
in Thousands)
|
|||||||||||||
Revenues
from Unaffiliated Customers:
|
|||||||||||||
Domestic
Operations
|
$
|
201,617
|
$
|
180,864
|
$
|
391,341
|
$
|
352,918
|
|||||
International
Operations:
|
|||||||||||||
Dominica
and St. Kitts/Nevis
|
32,427
|
26,048
|
60,512
|
48,428
|
|||||||||
Other
|
3,492
|
2,957
|
6,336
|
5,303
|
|||||||||
Total
International
|
35,919
|
29,005
|
66,848
|
53,731
|
|||||||||
Consolidated
|
$
|
237,536
|
$
|
209,869
|
$
|
458,189
|
$
|
406,649
|
|||||
Long-lived
Assets:
|
|||||||||||||
Domestic
Operations
|
$
|
316,875
|
$
|
346,973
|
$
|
316,875
|
$
|
346,973
|
|||||
International
Operations:
|
|||||||||||||
Dominica
and St. Kitts/Nevis
|
310,196
|
307,754
|
310,196
|
307,754
|
|||||||||
Other
|
226
|
428
|
226
|
428
|
|||||||||
Total
International
|
310,422
|
308,182
|
310,422
|
308,182
|
|||||||||
Consolidated
|
$
|
627,297
|
$
|
655,155
|
$
|
627,297
|
$
|
655,155
|
·
|
The
Fall 2006 term marked DeVry University’s sixth consecutive period of
positive undergraduate new student growth and the third consecutive
period
of positive total student enrollment growth.
|
·
|
Total
revenues and operating profits increased at all three of DeVry’s business
segments primarily due to continued enrollment growth, robust sales
of
review course materials and improved operational execution, while
at the
same time making investments to support future
growth.
|
·
|
DeVry’s
financial position improved as it ended the quarter with $171 million
of
available cash and reduced debt to $50 million by prepaying the remaining
$75 million of Senior Notes during October 2006 with a combination of
available cash and $40 million of revolver borrowings which have
a more
favorable interest rate.
|
·
|
In
November 2006, the Board of Directors declared DeVry’s first-ever dividend
and approved a stock repurchase program. The first dividend of $0.05
per
share was paid in January 2007. DeVry's Board of Directors stated
its
intent to declare dividends on a semi-annual basis, resulting in
an annual
dividend rate of $0.10 per share. The stock repurchase program allows
DeVry to buy back up to $35 million of its common stock within the
next
two years.
|
For
the Six Months
Ended
December 31,
|
|||||||
2006
|
2005
|
||||||
Net
Income
|
$
|
37,317
|
$
|
15,560
|
|||
Earnings
per Share (diluted)
|
$
|
0.52
|
$
|
0.22
|
|||
Gain
on Sale of Assets (net of tax)
|
$
|
11,840
|
$
|
273
|
|||
Earnings
per Share (diluted)
|
$
|
0.16
|
--
|
||||
Net
Income Excluding the Gain on Sale of Assets
|
$
|
25,477
|
$
|
15,287
|
|||
Earnings
per Share (diluted)
|
$
|
0.36
|
$
|
0.22
|
For
the Three Months
Ended
December 31,
|
For
the Six Months
Ended
December 31,
|
||||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Revenue
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Cost
of Educational Services
|
50.8
|
%
|
53.1
|
%
|
52.6
|
%
|
54.9
|
%
|
|||||
Gain
on Sale of Assets
|
—
|
(0.2
|
%)
|
(4.3
|
%)
|
(0.1
|
%)
|
||||||
Student
Services & Admin. Exp
|
39.2
|
%
|
39.0
|
%
|
39.1
|
%
|
38.8
|
%
|
|||||
Interest
Expense
|
0.7
|
%
|
1.2
|
%
|
0.8
|
%
|
1.3
|
%
|
|||||
Total
Costs and Expenses
|
90.7
|
%
|
93.2
|
%
|
88.2
|
%
|
94.9
|
%
|
|||||
Income
Before Income Taxes
|
9.3
|
%
|
6.8
|
%
|
11.8
|
%
|
5.1
|
%
|
|||||
Income
Tax Provision
|
2.4
|
%
|
1.7
|
%
|
3.7
|
%
|
1.3
|
%
|
|||||
Net
Income
|
6.9
|
%
|
5.2
|
%
|
8.1
|
%
|
3.8
|
%
|
·
|
Increased
by 1.2% from spring 2005 (38,083 students) to spring 2006 (38,523
students);
|
·
|
Increased
by 2.5% from summer 2005 (36,220 students) to summer 2006 (37,132
students); and
|
·
|
Increased
by 4.9% from fall 2005 (38,546 students) to fall 2006 (40,434 students).
This was DeVry University’s third consecutive period of positive total
undergraduate student enrollment
growth.
|
·
|
Increased
by 16.4% from spring 2005 (8,902 students) to spring 2006 (10,359
students);
|
·
|
Increased
by 12.2% from summer 2005 (11,293 students) to summer 2006 (12,671
students); and
|
·
|
Increased
by 11.9% from fall 2005 (10,663 students) to fall 2006 (11,930 students).
The
fall 2006 term was the sixth 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;
|
·
|
Increased
by 10.5% from the September 2005 session (12,732 coursetakers) to
the
September 2006 session (14,069 coursetakers);
and
|
·
|
Increased
by 8.9% from the November 2005 session (12,777 coursetakers) to the
November 2006 session (13,920
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%.
|
·
|
Tuition
and fees for the Ross University beginning basic sciences programs
increased by approximately 5% for the September 2006
term;
|
·
|
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
|
Period
|
Total
Number of Shares
Purchased1
|
Average
Price Paid per
Share
|
Total
Number of Shares Purchased as part of Publicly Announced Plans
or
Programs2
|
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans
or
Programs2
|
|||||||||
July
2006
|
-
|
-
|
N/A
|
N/A
|
|||||||||
August
2006
|
-
|
-
|
N/A
|
N/A
|
|||||||||
September
2006
|
4,625
|
$
|
22.67
|
N/A
|
N/A
|
||||||||
October
2006
|
-
|
-
|
N/A
|
N/A
|
|||||||||
November
2006
|
2,373
|
$
|
26.10
|
N/A
|
N/A
|
||||||||
December
2006
|
64
|
$
|
27.52
|
-
|
$
|
35,000,000
|
|||||||
Total
|
7,062
|
$
|
23.87
|
-
|
$
|
35,000,000
|
(a)
|
DeVry
held its Annual Meeting of Stockholders on November 15,
2006.
|
(b)
|
All
Board of Director nominees were
elected.
|
(c)
|
Certain
matters voted upon at the meeting and the votes cast with respect
to such
matters are as follows:
|
Director
|
Affirmative
Votes
|
Votes
Withheld
|
||
Daniel
M. Hamburger
|
63,891,038
|
3,268,254
|
Director
|
Affirmative
Votes
|
Votes
Withheld
|
||
Charles
A. Bowsher
|
64,268,616
|
2,890,676
|
||
William
T. Keevan
|
64,283,637
|
2,875,655
|
||
Robert
C. McCormack
|
62,110,476
|
5,048,816
|
||
Julia
A. McGee
|
63,482,328
|
3,676,964
|
Affirmative
Votes
|
Votes
Against
|
Abstain
|
||
67,088,231
|
51,659
|
19,401
|
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:
February 8, 2007
|
By
|
/s/ Daniel
M. Hamburger
|
|
Daniel
M. Hamburger
|
|||
President
and Chief Executive Officer
|
|||
Date:
February 8, 2007
|
By
|
/s/ Richard
M. Gunst
|
|
Richard
M. Gunst
|
|||
Senior
Vice President and Chief Financial
Officer
|