Q1 2009 Earning Report of DeVry Inc.

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  • 1. Achieve. Grow. Build. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 2. Forward-Looking Statements Certain statements contained in this presentation 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 the Company's most recent Annual Report on Form 10-K for the year ending June 30, 2007 and filed with the Securities and Exchange Commission on August 27, 2008. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 3. Investment Thesis 1. Attractive industry structure, and growing 2. Strong brands 3. Sound growth & diversification strategy 4. Strong management team 5. Excellent risk-adjusted investment − Diversified educational portfolio − Quality, accredited degree programs − Culture built on integrity Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 4. Strong Brands Professional DeVry Medical & Education University Healthcare & Training Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 5. Professional DeVry Medical & Education University Healthcare & Training • DeVry University • Ross University • Becker CPA Review − 4,400+ students • Becker CPE • Keller Graduate School of Management − Dominica, St. Kitts, • Stalla CFA Review Grand Bahama, FL & MI − Associate, Bachelors, • Center for Corporate Masters − Largest supplier of MDs Education and DVMs − 65,000+ students; − 50,000+ students; 93 locations • Chamberlain College 30 countries of Nursing − Best of both onsite and online − 4 locations and online • Advanced Academics − 2,200+ students • Western Career − 20,000+ students College/Apollo College to date − 9,000+ students − 200+ U.S. school districts − 17 campuses − Allied health Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 6. Focus on Quality Leads to Growth Focus on Academic Quality Financial Success Student Success Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 7. Student Success Graduate Employment Statistics For the 12-month period ending June 2008; system-wide average for DeVry University graduates in the active job market and employed in their field within 6 months of graduation. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 8. Student Success Serving Minority Students Computer and Information Sciences: Hispanic American Baccalaureates 1. University of Phoenix Online 2. Florida International University 3. DeVry University: California 4. American Intercontinental University Online 5. Barry University 6. DeVry University: Illinois 7. The Art Institute of Fort Lauderdale 8. CUNY New York City College of Technology 9. Monroe College: Main Campus 10. University of Phoenix: New Mexico Campus Source: Diverse Issues in Higher Education, June 2008 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 9. Student Success Serving Minority Students Computer and Information Sciences: Hispanic American Baccalaureates 1. University of Phoenix Online 2. Florida International University 3. DeVry University: California 4. American Intercontinental University Online 5. Barry University 6. DeVry University: Illinois 7. The Art Institute of Fort Lauderdale 8. CUNY New York City College of Technology 9. Monroe College: Main Campus 10. University of Phoenix: New Mexico Campus Source: Diverse Issues in Higher Education, June 2007 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 10. Student Success USMLE Step 1 First-Time Pass Rates: 2007 98% 95% 95% 100% 70% 75% 50% 25% 0% North American All International Ross Ross Allopathic University: Allopathic University: Schools GPA > 2.5 Schools All Students (M.D.) (includes Ross) Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 11. Student Success CPA Exam Pass Rates Perfect 10! All of the Top 10 Scorers Were Becker CPA Graduates Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 12. Focus on Quality Leads to Growth Focus on Academic Quality Financial Success Student Success Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 13. Revenue 10-Year History +17% In Millions $1,200 $1,092 $1,000 $934 $840 $785 $781 $800 $679 $648 $568 $600 $491 $406 $400 $200 $0 FY'99 FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 14. Net Income 10-Year History +90% In Millions $127.8 $120 $100 $80 $67.3 $67.1 $61.1 $57.8 $60 $52.0 $47.8 $42.8 $38.8 $40 $21.6 $20 $0 FY'99 FY'00 FY'01 FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 Turnaround Growth *Excludes discrete items where applicable; see 10-k for details. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 15. Revenue First Six Months +29%* In Millions $673.3 $700 $600 $524.1 $500 $400 $300 $200 $100 FY 2008 FY 2009 *Excluding U.S. Education, revenue growth would have been 19.3%. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 16. Net Income First Six Months +24% In Millions $77.7 $80 $62.6* $70 $2.3 $60 $50 $60.3 $40 $30 $20 FY 2008 FY 2009 *Excludes discrete items. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 17. Improving Margins Pre-Tax Income Margins 1. Enrollment growth 2. Operating leverage 3. Expense management 20% 17.1% 18% 16.1%* 16% 14% 12.7% 12% 9.7%* 9.5% 10% 8% 6.8% 6% 4% 2.8% 2% 0% FY'02 FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 *Excludes discrete items. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 18. Strong Financial Position Funded Debt Cash & Marketable Securities $350 $300 $277 $263 $290 $300 $250 $250 $250 $225 $200 $162 $200 $146 $150 $155 $131 $129 $150 $125 $93 $100 $100 $50 $50 $0 $0 $0 $0 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 1s t FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 1s t Half Half FY '09 FY '09 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 19. First Half Fiscal 2009 Financial & Operations Update • Continued to improve academic quality and student outcomes • Strong financial results • Enhancing shareholder returns − Increased dividend 33% − Executing 2nd share repurchase program • Executing strategic plan with U.S. Education acquisition • Realizing benefits of diversification in tough economic times Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 20. Diversified Funding Sources Reduce Risk Fiscal 2008 Sources of Revenue 100% Employer Reimbursement, Self-pay, Military, Student Accounts 80% School Districts 60% Private Loans 40% State Grants 20% Federal Programs 0% Becker DeVry Chamberlain Ross Advanced Keller DeVry Inc. Professional Academics University College of University Graduate Total Review Nursing School of Management Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 21. Focused on Delivering Long-Term Value Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 22. Future Vision ACHIEVE GROW BUILD Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 23. ACHIEVE GROW BUILD Achieve the Full Potential of DeVry University • Improve student retention and customer service • Enhance capacity utilization − Real estate actions − Add new programs • Increase investments in marketing and recruiting − “We Major in Careers” Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 24. ACHIEVE GROW BUILD DeVry University Undergraduate Enrollments New Student Growth % Total Student Growth % 19.7 20.0% 19.3 18.0% 16.9 16.0% 14.0% 12.6 6.9 12.2 11.9 12.0% 12.1 10.5 5.5 10.3 10.7 10.3 10.0% 8.0% 6.9 6.0% 4.9 4.0% 2.5 2.0% 0.0% Sum ’07 Fall ’07 Spr ’07 Fall ’08 Spr ‘07 Sum ’06 Sum ’08 Fall ’06 FY’09 FY’08 FY’07 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 25. ACHIEVE GROW BUILD Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 26. ACHIEVE GROW BUILD Horizontal Geographic Vertical • Technology • Doctoral • North America • Business • Masters • International − Latin America • Healthcare • Professional − China • Applied Arts • Bachelors − India • Education • Associate • High School Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 27. ACHIEVE GROW BUILD Addressing the Unmet Need for Physicians U.S. Medical New Residencies School Seats 40,000 40,000 30,000 25,000 35,000 25,000 30,000 20,000 25,000 17,000 20,000 17,000 15,000 15,000 10,000 10,000 5,000 5,000 0 0 Demand Supply Demand Supply Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 28. ACHIEVE GROW BUILD Clinical Training Site: Freeport, Grand Bahama 52 miles Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 29. ACHIEVE GROW BUILD Addressing the Unmet Need for Nurses Nursing Supply & Demand 3,000,000 Shortage of 2,500,000 1 million 2,000,000 40,000 1,500,000 qualified applicants 1,000,000 turned away 500,000 2000 2005 2010 2015 2020 Demand Supply Source: U.S. Department of Health & Human Services, HRSA, August 2006. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 30. ACHIEVE GROW BUILD Enrollments Locations • St. Louis, Mo 2,400 2,200 2,100 • Columbus, OH 1,800 • Addison, IL 1,500 • Phoenix, AZ 1,200 • Jacksonville, FL 900 (pending approvals) 600 450 300 0 2005 2008 Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 31. Addressing the Unmet Need The Power of the Market- Funded Model of Education Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 32. ACHIEVE GROW BUILD Addressing the Unmet Need for Allied Health Professionals fastest growing occupations in the U.S. are in allied health professions Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 33. ACHIEVE GROW BUILD Allied Health Careers Meet Critical Needs Enrollment by Program Category Non-Health (2%) Computer Graphics Architect Design Nursing (16%) Criminal Justice Registered Nursing Licensed Practical Nursing Other (7%) Vocational Nursing Radiology Technician Vocational Nursing Degree Respiratory Therapy Technician Diagnostic Medical Sonographer Pharmacy (11%) Surgical Technician Pharmacy Technician Medical (43%) Veterinary (7%) Medical Assisting Veterinary Technician Medical Admin. Asst. Medical Billing Medical Lab Tech Dental (14%) Medical Records Dental Hygiene Massage Therapy Dental Assisting Fitness Tech Dental Assisting Degree Medical Office Mgmt. Health Info Tech. Bio Lab Tech Health Care Admin. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 34. ACHIEVE GROW BUILD U.S. Education 17 Campus Locations in 7 States Spokane, WA Citrus Heights, CA Sacramento, CA Portland, OR Antioch, CA Boise, ID Pleasant Hill, CA Las Vegas, NV Emeryville, CA Albuquerque, NM San Leandro, CA Phoenix, AZ San Jose, CA Mesa, AZ Stockton, CA Phoenix Westside, AZ Tucson, AZ Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 35. ACHIEVE GROW BUILD U.S. Education: Acquisition Rationale • Vertical diversification in healthcare • Horizontal diversification in associate degree and certificate programs • Quality programs; Strong management team • Compatible culture • Synergies, e.g., co-locations and online Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 36. ACHIEVE GROW BUILD Vertical Geographic Horizontal • North America • Business • Doctoral • International • Technology • Masters − Latin America • Arts • Professional − China • Education • Bachelors − India • Healthcare • Associate • High School Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 37. ACHIEVE GROW BUILD Helping High School Students Graduate and Succeed Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 38. ACHIEVE GROW BUILD Projected Market Growth % Students Online 60% 50% Projection: By 2020, over 50% of high school students will take an online course. 40% 30% 20% 10% 0% 2000 2005 2010 2015 2020 Sources: National Center for Education Statistics, Babson Survey Research Group, North America Council for Online Learning Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 39. ACHIEVE GROW BUILD Growth in Professional Education • B2B relationships • Continuing Professional Education (CPE) • International Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 40. ACHIEVE GROW BUILD Vertical Horizontal Geographic • Doctoral • Business • North America • Masters • Technology • International • Professional • Arts − Latin America − China • Bachelors • Education − India • Associate • Healthcare • High School Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 41. ACHIEVE GROW BUILD Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 42. ACHIEVE GROW BUILD World Class Infrastructure DeVry Online Technology Finance Services Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 43. ACHIEVE GROW BUILD World Class Infrastructure DeVry Human Online Technology Finance Resources Services Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 44. “Doing Well By Doing Good” Giving Back to the Community • More than $12 million in scholarships • Passport 2 College: tuition-free courses for high school students • DeVry Advantage Academy Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 45. Investment Thesis 1. Attractive industry structure, and growing 2. Strong brands 3. Sound growth & diversification strategy 4. Strong management team 5. Excellent risk-adjusted investment − Diversified educational portfolio − Quality, accredited degree programs − Culture built on integrity Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College
  • 46. Achieve. Grow. Build. Advanced Academics, Inc. | Apollo College | Becker Professional Review | Chamberlain College of Nursing | DeVry University | Ross University | Western Career College