Transcript
Achieve. Grow. Build.
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 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, 2011.
Business,Technology & Management
International, K-12 and Professional Education
Medical & Healthcare
NCLEX Pass Rate 95%
Student Outcomes
Student Outcomes
Achieves AVMA Accreditation
Student Outcomes
$568 $648 $679$785 $781 $840
$934$1,092
$1,461
$1,915
$2,182
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
Revenue: 10-Year History
CAGR
FY01-10 +14.5%
FY10-11 +13.9%
(in millions)
$58 $67 $61 $52$18
$43$67*
$128*$171*
$280
$330
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
Net Income: 10-Year History
*Excludes discrete items.
CAGR
FY01-10 +21.6%
FY10-11 +17.9%
(in millions)
$255
$133
$54**
FY11 FY12
$1,636 $1,584
FY11 FY12
Financial Highlights
Revenue Net Income
1st Nine Months 1st Nine Months
$187*
-3% -48%
(in millions)
*Represents YTD FY12 net income before impairment charge and gain on sale. **Discrete item of Carrington impairment charge net of sale of Stalla.
DeVry Inc. Total Enrollment
130,957 126,165
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2011 2012
-3.7%
Spring 2012 enrollment for DeVry’s degree-granting institutions. Excludes Becker and Advanced Academics.
Strong Financial Position
$129
$277
$225
$323
$599
$332
$0
$100
$200
$300
$400
$500
$600
$700
FY07 FY08 FY09 FY10 FY11 ThruQ312
Cash Debt
$125
$0 $0
$125
$0 $0 $0
$50
$100
$150
$200
FY07 FY08 FY09 FY10 FY11 ThruQ312
(in millions)
DeVry’s Performance
2007-2011 Performance
2012-2013 Transition
2014-2016 Recovery and
Growth
• Strong enrollments
• Exceptional operating leverage
• Revenues down
• Earnings down
• Transitioning back to growth
• Modest enrollment growth at DeVry University
• 2011 onsite enrollment levels at Carrington
• Other institutions continue growth
5 Point Performance Improvement Plan
5 Point Performance Improvement Plan
1. Aligning costs with enrollment levels
• $25m since 3Q11
• Additional $50m in FY13
• Focused on DeVry University and Carrington Colleges
5 Point Performance Improvement Plan
1. Aligning costs with enrollment levels
2. Enhance recruiting process
3. Improve awareness building
5 Point Performance Improvement Plan
1. Aligning costs with enrollment levels
2. Enhance recruiting process
3. Improve awareness building
4. Targeted investments to drive growth
Growth Investments
acquires
Growth Investments
5 Point Performance Improvement Plan
1. Aligning costs with enrollment levels
2. Enhance recruiting process
3. Improve awareness building
4. Targeted investments to drive growth
5. Invest in DeVry’s people
Developing
our
Faculty
Delivering Long-Term Value
Our Strategic Plan
Our Strategic Plan
• High-quality, career-oriented academics
• Service excellence
• Innovative educational technology
Superior student outcomes
Our Strategic Plan
and diversify
• Program areas
• Levels of education
• Geographic
* Based on data provided to IPEDs; excludes enrollments at Advanced Academics and Becker Professional Education.
Diversification: Program Areas
Total Enrollment: 43,300
Total Enrollment: 120,000+
70%
28%
30%
45%
27%
Fall 2002 Fall 2010
Business
Technology
Healthcare
Business
Technology
* Based on data provided to IPEDs; excludes enrollments at Advanced Academics and Becker Professional Education.
Diversification: Level of Education
Doctoral
Master’s
Bachelor’s
Associate/ Certificate
Master’s
Bachelor’s
Associate/ Certificate
Total Enrollment: 43,300
Total Enrollment: 120,000+
18% 19%
68% 56%
14% 21%
5%
Fall 2002 Fall 2011
96% 87%
4% 13%
2002 2011
International
USA
International
USA
Diversification: Geographic
• Market dynamics favorable to private-sector education
• Organic growth: sharing best practices and DeVry brand
• Growth via acquisitions
Our Strategic Plan
High-quality infrastructure
• Technology
• Human resources
• Operational excellence
• Reputation
Our Strategic Plan
Grow our Core and Diversify
Strengthen our Core Invest to Support our Strategy and Organization
• Strengthen and grow the core
• Diversify beyond the core
• Dividends and share repurchases
Allocating Capital
Investment Thesis
Education Sector
• Large, growing demand for career-oriented education
• Public-sector constrained
• Attractive economics
DeVry
• Strong brands, quality reputation
• Diversification
• Margin growth
Achieve. Grow. Build.
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