DeVry Inc. Announces First-Quarter 2011 Results

DeVry Inc. (NYSE:DV), a global provider of educational services, today reported financial results for its fiscal 2011 first-quarter ended Sept. 30, 2010. DeVry also reported enrollment results at Ross University and DeVry Brasil, and graduate coursetakers at DeVry University/Keller Graduate School of Management. DeVry’s continued execution of its diversification strategy and its focus on academic quality produced the following financial results:

Three Months Ended Sept. 30, 2010:

• Revenues increased 21 percent to $521 million.
• Net income increased 34 percent to $74 million.
• Diluted earnings per share increased 36 percent to $1.03.

"Our solid performance this quarter was fueled by our strong academic results and our continued investments in our schools’ programs and student services,” said Daniel Hamburger, DeVry’s president and chief executive officer. "A significant marker of our recent success is the fact that the vast majority our graduates continue to find employment in their fields of study despite a soft job market. We hold ourselves accountable to this high standard and are pleased employers continue to value our graduates.”

Business Highlights

Business, Technology, and Management Segment

DeVry University

For the September 2010 session, total graduate coursetakers at DeVry University, including its Keller Graduate School of Management, increased 14.1 percent to a 23,389 versus 20,496 for the same period in 2009.

Despite the continued tough job market, 88.9 percent of DeVry University’s June 2009, October 2009 and February 2010 graduates in the active job market were employed in their fields of study within six months of graduation at an average salary of $43,035. These statistics include graduates of associate and bachelor’s degree programs and those who were already employed in their field of study.

Medical and Healthcare Segment

Ross University

In the 2010 September term at Ross University, enrollment was held in line with previously announced expectations as it works to add new capacity at its medical school. New students decreased 26.4 percent to 490, compared to 666 students last year. Total students decreased 0.7 percent to 4,567 compared to 4,600 students in the same term last year.

Ross University School of Medicine continues to work with the Medical Board of California (MBC) to secure final approval for the Freeport location. It expects its application to be considered at the MBC’s next meeting in November.

Chamberlain College of Nursing

In September, Chamberlain launched a registered nurse (RN) to Master of Science in Nursing option for RNs with an associate degree or a diploma in nursing. It also has submitted an application for a new location in Houston to be opened in spring 2011, pending approvals. The new campus will be co-located with DeVry University.

Carrington Colleges Group

Carrington College California began programs in Medical Assisting and Veterinary Training in October at its new Pomona campus, which is co-located with DeVry University. Carrington College introduced new Physical Therapist Assistant programs at its Albuquerque, NM; Boise, ID; and Las Vegas, NV, locations.

Professional Education Segment

Becker Professional Education

Becker’s revenues grew 4.2 percent during the quarter. It continued to invest in the redevelopment of its course materials in preparation for changes in the 2011 CPA exam.

As previously announced, John Roselli became president of Becker effective October 1, succeeding Thomas Vucinic who is retiring.

Other Educational Services Segment

Advanced Academics

During the quarter, Advanced Academics (AAI) further expanded its presence in key states, such as Arizona and New York, where it established initial service contracts with charter schools in those states. AAI experienced continued softness in revenues as a result of the ongoing impact of state budget deficits.

DeVry Brasil

For the September 2010 term, new students increased 9.1 percent to 2,347, compared to 2,151 students last year. Total students increased 3.8 percent to 11,972, compared to 11,532 students in the same term last year. DeVry Brasil continues to expand its curriculum and invest in its programs, student services and campus locations.

Balance Sheet/Cash Flow

For the first quarter, DeVry generated $196.0 million of operating cash flow, driven by the continuation of strong operating results and working capital management. As of Sept. 30, 2010, cash, marketable securities and investment balances totaled $453.3 million and there were no outstanding borrowings.

Share Repurchase Plan

During the quarter, DeVry completed its third share repurchase program and began executing its fourth program. DeVry repurchased 972,205 shares of its common stock under the third program at an average cost of $51.43 per share. As of Sept. 30, 2010, DeVry had repurchased 266,216 shares under the fourth program at an average cost of $43.95 per share.

Conclusion

DeVry will report 2010 fall enrollment for DeVry University, the Carrington Colleges Group and Chamberlain College of Nursing pre-market on Dec. 7, 2010. DeVry University expects to report a modest decline in new undergraduate student enrollments and growth in the mid-teens for total students. Keller Graduate School believes that total coursetaker enrollment will be similar to previous sessions. In the fall, Carrington expects to report a decrease in new student enrollments in the mid-single digits and a decrease in total students in the low-single digits. Chamberlain College of Nursing continues to see strong demand for its nursing programs and expects to report continued strong growth rates.

"Our growth and diversification strategy continues to serve us well as we navigate these uncertain economic times,” said Hamburger. "We remain confident that our investments in academic quality and student services will enable us to achieve our long-term performance goals this year and beyond.”

Conference Call and Webcast Information

DeVry will host a conference call on Oct. 26, 2010, at 3:30 p.m. Central Daylight Time (4:30 p.m. Eastern Daylight Time) to discuss its fiscal 2011 first-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 (866) 730-5768 (domestic) or (857) 350-1592 (international). Use passcode 97462948 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 web site, or http://www.investors.devry.com/phoenix.zhtml?p=irol-eventDetails&c=93880&eventID=2683593. Please access the web site 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 Nov. 2, 2010. To access the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode: 43812231. To access the webcast replay, please visit DeVry’s web site.

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)

September 2010 Enrollment Results

¹ Includes both onsite and online students

² The term "coursetaker” refers to the number of courses taken by a student. Thus one student taking two courses equals two coursetakers.

³ Three-term average; includes graduates of associate and bachelor’s degree programs

Chart 1: Taxpayer Cost of Education (net cost per student)

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