Financial Highlights and Strategy
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Transcript of Financial Highlights and Strategy
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Financial Highlightsand Strategy
Financial Highlightsand Strategy
Rick Gunst
Senior Vice President andChief Financial Officer
Rick Gunst
Senior Vice President andChief Financial Officer
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$296$341
$406
$491
$568
$648$680
$785 $781
$843
$0
$300
$600
$900
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
RevenueFiscal Years 1997-2006RevenueFiscal Years 1997-2006
In Millions
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$24
$31
$39
$48
$58
$67
$61$58
$18
$43
$0
$20
$40
$60
$80
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
Net IncomeFiscal Years 1997-2006Net IncomeFiscal Years 1997-2006
In Millions
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$626.9$706.0
$0
$200
$400
$600
$800
FY 2006 FY 2007
RevenueFirst Nine MonthsRevenueFirst Nine Months
In Millions
+12.6%+12.6%
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$0.44
$0.85
$0.00
$0.30
$0.60
$0.90
FY 2006 FY 2007
Net Income and EPSFirst Nine MonthsNet Income and EPSFirst Nine Months
$31.2
$60.2
$0
$20
$40
$60
$80
FY 2006 FY 2007
+92.8%+92.8%
Net Income Earnings Per Share
+93.2%+93.2%
*Includes $12.4 million after-tax gains from DeVry University facility sales and $0.7 million in severance charges.
$48.5
$11.7*
$0.68
$0.17*
$M
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Segment Results DeVry UniversityFirst Nine Months
Segment Results DeVry UniversityFirst Nine Months
*Includes $20.9 million pre-tax gains from DeVry University facility sales and $1.1 million in severance charges.
+8.9%+8.9%
Revenue Operating Income
+63.5%+63.5%
$506.9$552.1
$0
$200
$400
$600
FY 2006 FY 2007
$15.2
$39.9*
$0
$10
$20
$30
$40
$50
FY 2006 FY 2007
$20.1
$19.8*
$M $M
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Segment Results Medical and HealthcareFirst Nine Months
Segment Results Medical and HealthcareFirst Nine Months
+27.2%+27.2%
Revenue Operating Income
+28.3%+28.3%
$82.7
$105.1
$0
$20
$40
$60
$80
$100
$120
FY 2006 FY 2007
$30.6
$39.3
$0$5
$10$15$20$25$30$35$40$45
FY 2006 FY 2007
$30.6
$39.3
$0$5
$10$15$20$25$30$35$40$45
FY 2006 FY 2007
$M $M
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Segment Results Professional and TrainingFirst Nine Months
Segment Results Professional and TrainingFirst Nine Months
+30.7%+30.7%
Revenue Operating Income
+39.3%+39.3%
$37.3
$48.7
$0
$20
$40
$60
FY 2006 FY 2007
$12.6
$17.6
$0
$5
$10
$15
$20
FY 2006 FY 2007
$12.6
$17.6
$0
$5
$10
$15
$20
FY 2006 FY 2007
$M $M
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Opportunities for Margin ExpansionPre-Tax IncomeOpportunities for Margin ExpansionPre-Tax Income
16.9% 17.1%
12.7%
9.5%
2.8%
6.8% 6.7%
12.0%*
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 3Q YTDFY 2006
3Q YTDFY 2007
In Millions
3.8%
9.2%
*Includes $20.9 million pre-tax gains from DeVry University facility sales and $1.1 million in severance charges.
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DeVry University 12.5% 3.7%*(8.8) pts
Medical & Healthcare - 37.4% +37.4 pts
Professional & Training 28.6% 36.1% +7.5 pts
Interest/Amort./Depr. (0.3)% (1.7)% (1.4) pts
Total DeVry Inc. 13.2% 9.2% (4.0) pts
DeVry University 12.5% 3.7%*(8.8) pts
Medical & Healthcare - 37.4% +37.4 pts
Professional & Training 28.6% 36.1% +7.5 pts
Interest/Amort./Depr. (0.3)% (1.7)% (1.4) pts
Total DeVry Inc. 13.2% 9.2% (4.0) pts
Pre-Tax Operating Margin (%)
YTD Q3FY’03
YTD Q3FY’07
B(W)
*FY’07 results exclude facility sale gains and severance charge.
Opportunities for Margin Expansion FY’03-FY’07 Opportunities for Margin Expansion FY’03-FY’07
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Workforce ReductionsFY 2007Workforce ReductionsFY 2007
Voluntary Separation 70 $1.1 $2.6 $3.7
Involuntary Separation 145 - $2.6 $2.6
215 $1.1 $5.2 $6.3
Voluntary Separation 70 $1.1 $2.6 $3.7
Involuntary Separation 145 - $2.6 $2.6
215 $1.1 $5.2 $6.3
# ofEmployees
Cost Reductions of $10 Million Per Year in FY 2008 and Beyond
Severance ($M)Q3 Q4 Total
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Real Estate StrategyOptimizing Large CampusesReal Estate StrategyOptimizing Large Campuses
We are committed to every market we serve.
Category 1 Category 2 Category 3
Enrollment growth Lower enrollments Lower enrollments
Desirable location Near term leases or high property values
Longer term leases or lower property values
Strategy:
Retain facility
Strategy:
Sell and relocate or leaseback space
Strategy:
Reconfigure/co-locate
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Substantial Debt ReductionSubstantial Debt Reduction
$93
$290
$146
$250
$162
$225
$131$125
$169
$85
$171
$50
$136
$0
$0
$50
$100
$150
$200
$250
$300
FY 2003 FY 2004 FY 2005 FY 2006 Q1 FY2007
Q2 FY2007
Q3 FY2007
Cash Funded Debt
In Millions
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Financial StrategyFinancial Strategy
Reduced debt levels Amended credit agreement Declared first dividend Initiated stock repurchase program
– Repurchased 194,000 shares for $5.3 million in Q3 FY 2007
Reduced debt levels Amended credit agreement Declared first dividend Initiated stock repurchase program
– Repurchased 194,000 shares for $5.3 million in Q3 FY 2007
Building Value for Our Shareholders
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Financial HighlightsFinancial Highlights
Improving operating performance
Strengthening financial position
Enhancing shareholder returns
Improving operating performance
Strengthening financial position
Enhancing shareholder returns
Summary