Devry Inc. has a market cap of $2.63 billion; its shares were traded at around $39.12 with a P/E ratio of 9.43 and P/S ratio of 1.21. The dividend yield of Devry Inc. stocks is 0.77%. Devry Inc. had an annual average earning growth of 22.3% over the past 10 years.
Highlight of Business Operations:Total consolidated revenues for the second quarter of fiscal year 2012 of $524.0 million decreased $27.4 million, or 5.0%, as compared to the year-ago quarter. For the first six months of fiscal year 2012, total consolidated revenues decreased $29.8 million, or 2.8%, to $1,043.1 million. For both the second quarter and first six months of fiscal year 2012, revenues decreased within DeVrys Business, Technology and Management segment as a result of a decline in undergraduate student enrollments due to the challenging economic environment, persistent unemployment and heightened competition. This decrease was partially offset by revenue increases within DeVrys Medical and Healthcare and International, K-12 and Professional Education segments as a result of growth in total student enrollments, improved student retention and tuition price increases. In addition, AUC, which was acquired on August 3, 2011, contributed to offsetting the revenue decline during both the quarter and first six months of the current year.
Business, Technology and Management segment revenues decreased 12.2% to $325.6 million in the second quarter and declined 8.4% to $663.2 million for the first six months of fiscal year 2012 as compared to the year-ago periods as a result of a decline in undergraduate student enrollments. The Business, Technology and Management segment is comprised solely of DeVry University. Key trends in enrollment and tuition pricing are set forth below.
Medical and Healthcare segment revenues increased 8.0% to $153.5 million in the second quarter and grew 8.0% to $301.0 million for the first six months of fiscal year 2012. Higher total student enrollments at Chamberlain College of Nursing (Chamberlain) and Ross University were the key drivers of the segment revenue growth, which more than offset a decline in total student enrollments at
International, K-12 and Professional Education operating income increased 50.7% to $10.2 million during the second quarter and grew 28.0% to $7.2 million during the first six months of fiscal year 2012 as compared to the respective year-ago periods. These increases were the result of revenue growth at both DeVry Brasil and Becker which was partially offset by increased investments at DeVry Brasil for a new campus opening.
Cash generated from operations in the first six months of fiscal year 2012 was $219.3 million, compared to $273.9 million in the prior year period. The decrease in cash flow from operations was due in part to a $95.6 million decline in net income which includes a $75.0 million non-cash asset impairment charge. In addition, cash flow from operations decreased by $26.6 million compared to the prior year due to changes in levels of prepaid expenses, accounts payable and accrued expenses which are the result of the timing of payments. These decreases in cash flow from operations were also partially offset by an increase in non-cash expenses for depreciation, amortization and stock-based compensation which resulted in $11.5 million greater source of cash. Also, an increase in deferred tuition revenue and advanced tuition payments driven by increased student enrollments, primarily at Chamberlain, Ross and AUC, generated $3.8 million increase in cash flow. In addition, due to continued improvements in collections management, accounts receivable, net of related reserves, decreased and resulted in a $1.9 million greater source of cash as compared to the year-ago period. Variations in the levels of accrued and prepaid expenses and accounts payable from period to period are caused, in part, by the timing of the period-end relative to DeVrys payroll and bill payment cycles.
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