DeVry Slips To Loss In Q4 On Charges, Lower Enrollment

(RTTNews) - For-profit education services provider DeVry, Inc. (DV) on Thursday reported a loss for the fourth quarter, hurt by lower enrollment and one-time charges.

The company said that its total student enrollments during the quarter declined 6 percent from the year-ago period to 110,297.

For the May 2013 session at DeVry University, new undergraduate enrollments decreased 19 percent from the year-ago period to 4,616. Total undergraduate students decreased 19 percent from last year to 48,842.

At the graduate level, including Keller Graduate School of Management, total coursetakers in the May session decreased 17 percent from last year to 18,836. The total number of online undergraduate and graduate coursetakers at DeVry University in the May session declined 17 percent from the year-ago period to 61,016.

The company noted that DeVry University and its Keller Graduate School of Management continued to be negatively impacted by prospective students' lack of confidence in the job market.

At the medical and healthcare segment, DeVry recorded a 2 percent decline in new student enrollment at Carrington Colleges Group and a 42 percent increase in new enrollments at Chamberlain College of Nursing.

DeVry's net loss for the fourth quarter was $32.31 million or $0.51 per share, compared to net income of $8.09 million or $0.12 per share in the same period last year.

During the quarter, the company decided to sell Advanced Academics, Inc. As a result, the assets of the institution were reclassified as "held for sale" and its operating results were reported as "discontinued operations."

The latest quarter's results include non-cash goodwill and intangible asset impairment charge for Carrington Colleges of $0.78 per share, restructuring charge for workforce reductions and real estate consolidations of $0.14 per share, and a benefit of $0.07 per share as a result of an adjustment to an earn out accrual from a previous acquisition.

Excluding items, adjusted earnings from continuing operations were $34.14 million or $0.54 per share, compared to $34.06 million or $0.52 per share in the previous-year quarter. On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 4 percent to $479.96 million from $501.96 million in the year-ago period. Analysts had a consensus revenue estimate of $481.42 million.

For fiscal 2013, DeVry's net income declined to $106.79 million or $1.65 per share from $141.57 million or $2.09 per share in the previous year. Adjusted earnings from continuing operations were $185.00 million or $2.86 per share, compared to $226.98 million or $3.35 per share last year.

Revenues for the year declined 5 percent to $1.96 billion from $2.07 billion in the prior year.

Analysts expected the company to earn $2.67 per share for the year on revenues of $1.98 billion.

DV closed Thursday's regular trading session at $31.84, down $0.81 or 2.48 percent on a volume of 734,537 shares.