- Revenue is up 18.4% to $291 million
- Operating Income up 70.9% to $50.6 million (17.3% operating income margin)
- Net Income up 67.2% to $38.3 million
- New undergraduate enrollment increased 12.1% to 12,410 students
- Total student enrollment increased 10.3% to 44,814 students
- Total number of online courses taken increased by 25% to 43,889
- For the January 2008 term Ross University (medical/veterinary) is showing a 7% enrollment increase from a year ago.
- The company opened up Chamberlain College of Nursing opened up their two new locations in Illinois and Arizona. They are still planning to open up one Chamberlain facility per year going forward.
- Becker CPA review’s revenues surged 30.4% compared to the same quarter a year ago. A new office in Hong Kong was opened to meet the needs of Asia.
Daniel Hamburger (CEO), on the 3rd quarter conference call reiterated that the company's relationships with lenders still remains strong, and that FFEL and Private Lending would still be available to DeVry students. He did mention that there were some disruptions with Wachovia, but that the issues would be resolved within a few weeks. The other lenders that DeVry is working with are:
- Sallie Mae (DeVry is only 1 of 2 instutions Sallie Mae is continuing private lending programs with)
- Citibank
- Bank of America
- Wells Fargo
- Wachovia
- Chase
The company also spoke about a possible acquisition in the career college market, specifically around the healthcare segment. The company has strong cash flow, but the CFO did mention that they had a $250 million line of credit they could tap if they were to make an acquisition. Given this news, and the important summer months where students seek more student loans heading into the fall semester, I'm still waiting for an entry position under $50/share.
Keep an eye out for the next few months to see how the new government program to buy up student debt will play out.
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