DEVRY ANNOUNCES EARNINGS
DEVRY ANNOUNCES EARNINGS OAKBROOK TERRACE, Ill., May 1 /PRNewswire/ -- DeVry Inc.
(NASDAQ: DVRY), a system of career-oriented higher education institutes, today reported that net earnings for the nine months ending March 31, 1992, were $20,105,000 or $2.42 per share, including a $13.5 million net gain from nonrecurring adjustments. This compares with a loss of ($4,124,000) or ($3.59) per share for the same period last year, which included the $8.3 million write-off of an intangible asset.
One of the nonrecurring adjustments involves the company's adoption of FASB 109, "According for Income Taxes," retroactive to the beginning of fiscal 1992, which has increased net income for the nine months by $15,798,000. "As a result of this nonrecurring adjustment, the value of DeVry's tax-loss carryforwards is recognized, and the company is making a transition from reporting its quarterly and annual net earnings on an essentially untaxed basis to reporting net earnings with full and normal tax provisions," said Chairman Dennis J. Keller. "One major benefit of this adoption is that we expect positive shareholders' equity by fiscal year-end." Cash flow is not affected by this accounting adjustment, and actual cash tax payments are expected to continue at current low levels until fiscal 1995. The second nonrecurring adjustment, a charge of $2,320,000, was made at the end of the third quarter to reflect the April 1992 downsizing and relocation of corporate headquarters from Evanston, Ill., to Oakbrook Terrace. "The headquarters move has signigicant long-term benefits for the company," President Ronald L. Taylor said. "We have downsized our headquarters facilities from about 140,000 square feet to approximately 74,000 square feet, and we will save nearly $1.3 million in occupancy expense over the remaining 32 months of the Evanston lease. "By making the move now while commercial real estate rents are unusually low, we were able to secure a 10-year lease at an occupancy cost of approximately $18 per square foot. This is significantly below what we would expect to have paid for comparable space at the expiration of the Evanston lease," Taylor said. Before the adjustments, 1992 third quarter earnings would have been $0.41 per share (fully diluted). After adjustments, and including a full tax provision on income, third quarter net earnings totaled $624,000 or $0.08 per share, compared with a loss of ($7,133,000) or ($6.20) per share in the prior year. DeVry Inc. owns and operates DeVry Institutes and Keller Graduate School of Management (KGSM). It is one of the largest degree-granting higher education systems in North America. DeVry Institutes offer bachelor's degree programs in electronics engineering technology, computer informations systems, accounting, business operations and telecommunications management and an associate degree program for electronics technicians. KGSM offers master's degree programs in business administration and project management. DEVRY INC. Quarter ended March 31 1992 1991 Revenues $47,461,000 $40,547,000 Net income (loss) $ 624,000 $(7,133,000) Share earnings (primary): Net income (loss) $0.08 ($6.20) Share earnings (fully diluted): Net income (loss) $0.08 ($6.20) Share used in fully diluted earnings per share 8,337,000 1,150,000 Nine months ended March 31 1992 1991 Revenues $136,237,000 $122,390,000 Income (loss) before cumulative effect of accounting change 4,307,000 (4,124,000) Cumulative effect of accounting change for taxes on income 15,798,000 - Net income (loss) $ 20,105,000 $ (4,124,000) Share earnings (primary): Income (loss) before cumulative effect of accounting change $0.55 $(3.59) Net income (loss) 2.55 (3.59) Share earnings (fully diluted): Income (loss) before cumulative effect of accounting change $0.53 $(3.59) Net income (loss) 2.42 (3.59) Share used in fully diluted earnings per share 8,333,000 1,150,000 -0- 5/1/92 /CONTACT: Diane Salucci or Cathy Klepack of DeVry, 708-571-7700/ (DVRY) CO: DeVry Inc. ST: Illinois IN: SU: ERN
GK -- NY038 -- 5443 05/01/92 11:46 EDT
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|Date:||May 1, 1992|
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