2016 Q3 Form 10-Q Financial Statement

#000114420416131026 Filed on November 02, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2015 Q3
Revenue $292.0M $441.4M
YoY Change -33.84% 290.79%
Cost Of Revenue $250.7M $245.1M
YoY Change 2.28% -0.51%
Gross Profit $41.37M $196.3M
YoY Change -78.93% -247.2%
Gross Profit Margin 14.17% 44.48%
Selling, General & Admin $161.1M $164.0M
YoY Change -1.8% -7.73%
% of Gross Profit 389.34% 83.54%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $17.48M $19.68M
YoY Change -11.19% -3.77%
% of Gross Profit 42.24% 10.02%
Operating Expenses $161.1M $164.0M
YoY Change -1.8% -7.73%
Operating Profit -$119.7M $8.247M
YoY Change -1551.39% -66.53%
Interest Expense $2.115M $2.326M
YoY Change -9.07%
% of Operating Profit 28.2%
Other Income/Expense, Net -$2.199M
YoY Change -55075.0%
Pretax Income $32.05M $6.048M
YoY Change 429.93% -75.46%
Income Tax $6.901M $662.0K
% Of Pretax Income 21.53% 10.95%
Net Earnings $25.15M $5.465M
YoY Change 360.24% -73.26%
Net Earnings / Revenue 8.61% 1.24%
Basic Earnings Per Share $0.40 $0.08
Diluted Earnings Per Share $0.39 $0.08
COMMON SHARES
Basic Shares Outstanding 63.42M shares 64.35M shares
Diluted Shares Outstanding 63.90M shares 64.73M shares

Balance Sheet

Concept 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $192.8M $439.9M
YoY Change -56.17% -7.68%
Cash & Equivalents $194.8M $436.5M
Short-Term Investments $3.700M $3.400M
Other Short-Term Assets $46.60M $55.80M
YoY Change -16.49% -37.37%
Inventory
Prepaid Expenses
Receivables $184.3M $186.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $423.7M $681.7M
YoY Change -37.84% -7.37%
LONG-TERM ASSETS
Property, Plant & Equipment $514.4M $530.3M
YoY Change -3.0% -4.0%
Goodwill $533.2M
YoY Change 3.69%
Intangibles $304.1M
YoY Change 5.38%
Long-Term Investments
YoY Change
Other Assets $106.0M $57.30M
YoY Change 84.99% 90.68%
Total Long-Term Assets $1.901B $894.6M
YoY Change 112.46% 5.7%
TOTAL ASSETS
Total Short-Term Assets $423.7M $681.7M
Total Long-Term Assets $1.901B $894.6M
Total Assets $2.324B $2.107B
YoY Change 10.34% -1.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $57.40M $59.78M
YoY Change -3.98% -4.26%
Accrued Expenses $162.7M $82.07M
YoY Change 98.26% 16.07%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $444.8M $439.4M
YoY Change 1.23% -2.63%
LONG-TERM LIABILITIES
Long-Term Debt $130.0M $99.10M
YoY Change 31.18%
Other Long-Term Liabilities $112.0M $21.10M
YoY Change 430.81% -75.47%
Total Long-Term Liabilities $242.0M $120.2M
YoY Change 101.33% -11.99%
TOTAL LIABILITIES
Total Short-Term Liabilities $444.8M $439.4M
Total Long-Term Liabilities $242.0M $120.2M
Total Liabilities $722.7M $559.6M
YoY Change 29.15% -4.81%
SHAREHOLDERS EQUITY
Retained Earnings $1.804B
YoY Change 6.0%
Common Stock $357.3M
YoY Change 7.6%
Preferred Stock
YoY Change
Treasury Stock (at cost) $496.2M
YoY Change 7.38%
Treasury Stock Shares 14.45M shares 12.80M shares
Shareholders Equity $1.602B $1.543B
YoY Change
Total Liabilities & Shareholders Equity $2.324B $2.107B
YoY Change 10.34% -1.31%

Cashflow Statement

Concept 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $25.15M $5.465M
YoY Change 360.24% -73.26%
Depreciation, Depletion And Amortization $17.48M $19.68M
YoY Change -11.19% -3.77%
Cash From Operating Activities $98.76M $116.6M
YoY Change -15.29% -17.36%
INVESTING ACTIVITIES
Capital Expenditures $11.32M $22.75M
YoY Change -50.26% -207.33%
Acquisitions $331.1M $0.00
YoY Change
Other Investing Activities -$331.1M -$3.100M
YoY Change 10580.65%
Cash From Investing Activities -$342.4M -$25.88M
YoY Change 1223.02% 22.29%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $8.255M $8.255M
YoY Change 0.0% 232.19%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $122.4M -$10.67M
YoY Change -1247.56% 254.74%
NET CHANGE
Cash From Operating Activities $98.76M $116.6M
Cash From Investing Activities -$342.4M -$25.88M
Cash From Financing Activities $122.4M -$10.67M
Net Change In Cash -$120.5M $80.03M
YoY Change -250.6% -31.53%
FREE CASH FLOW
Cash From Operating Activities $98.76M $116.6M
Capital Expenditures $11.32M $22.75M
Free Cash Flow $87.44M $93.83M
YoY Change -6.81% -42.18%

Facts In Submission

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CY2016Q3 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
21457000 USD
CY2016Q3 us-gaap Notes Receivable Net
NotesReceivableNet
50212000 USD
CY2015Q3 us-gaap Financing Receivable Allowance For Credit Losses Write Offs
FinancingReceivableAllowanceForCreditLossesWriteOffs
1726000 USD
CY2015Q3 us-gaap Financing Receivable Allowance For Credit Losses Recovery
FinancingReceivableAllowanceForCreditLossesRecovery
189000 USD
CY2015Q3 us-gaap Financing Receivable Allowance For Credit Losses Period Increase Decrease
FinancingReceivableAllowanceForCreditLossesPeriodIncreaseDecrease
-3939000 USD
CY2015Q3 us-gaap Notes Receivable Gross
NotesReceivableGross
71774000 USD
CY2015Q3 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
23032000 USD
CY2015Q3 us-gaap Notes Receivable Net
NotesReceivableNet
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CY2016Q3 us-gaap Financing Receivable Recorded Investment Current
FinancingReceivableRecordedInvestmentCurrent
38880000 USD
CY2016Q3 us-gaap Financing Receivable Recorded Investment Past Due
FinancingReceivableRecordedInvestmentPastDue
32789000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
79910000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
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CY2016Q3 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
IndefiniteLivedIntangibleAssetsExcludingGoodwill
360295000 USD
CY2015Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
24230000 USD
CY2015Q3 us-gaap Indefinite Lived Intangible Assets Excluding Goodwill
IndefiniteLivedIntangibleAssetsExcludingGoodwill
288942000 USD
CY2015Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
9031000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
12186000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
9782000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
8681000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
6200000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
5373000 USD
CY2016Q3 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
26835000 USD
CY2016Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
3300000 USD
CY2015Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
1200000 USD
CY2016Q3 dv Percentage Of Intangible Assets Including Goodwill
PercentageOfIntangibleAssetsIncludingGoodwill
0.55 pure
CY2016Q3 dei Document Type
DocumentType
10-Q
CY2016Q3 dei Amendment Flag
AmendmentFlag
false
CY2016Q3 dei Document Period End Date
DocumentPeriodEndDate
2016-09-30
CY2016Q3 dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2017
CY2016Q3 dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q1
CY2016Q3 dei Entity Registrant Name
EntityRegistrantName
DEVRY EDUCATION GROUP INC.
CY2016Q3 dei Entity Central Index Key
EntityCentralIndexKey
0000730464
CY2016Q3 dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--06-30
CY2016Q3 dei Entity Filer Category
EntityFilerCategory
Large Accelerated Filer
CY2016Q3 dei Trading Symbol
TradingSymbol
DV
CY2016Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
62623000 shares
CY2016Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1086764000 USD
CY2016Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1087806000 USD
CY2015Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1088564000 USD
CY2016Q3 us-gaap Long Term Loans Payable
LongTermLoansPayable
130000000 USD
CY2016Q2 us-gaap Long Term Loans Payable
LongTermLoansPayable
0 USD
CY2015Q3 us-gaap Long Term Loans Payable
LongTermLoansPayable
0 USD
CY2016Q3 us-gaap Use Of Estimates
UseOfEstimates
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 11pt; MARGIN: 0in 0in 0pt" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt 6.5pt" align="justify"><strong><i><u><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Use of Estimates</font></u></i></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.15in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.15in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenue and expense reported during the period. Actual results could differ from those estimates.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q3 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.15in; MARGIN: 0in 0in 0pt" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt 6.5pt" align="justify"><strong><i><u><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Reclassifications</font></u></i></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt 6.5pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.15in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.15in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">In the fourth quarter of fiscal year 2016, we retrospectively adopted ASU No. 2015-17: &#8220;Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.&#8221; This guidance was issued to simplify the accounting for classification of deferred taxes on the balance sheet. The guidance eliminates the previous requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. As a result, we decreased current deferred income tax assets by $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">36.5</font> million, increased noncurrent deferred income tax assets by $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">6.3</font> million and decreased noncurrent deferred income tax liabilities by $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">30.1</font> million on the September 30, 2015 Consolidated Balance Sheet. This reclassification had no effect on reported net income.</font></div> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q3 us-gaap Net Income Loss
NetIncomeLoss
25152000 USD
CY2015Q3 us-gaap Net Income Loss
NetIncomeLoss
5465000 USD
CY2016Q3 dv Provisions For Refund Payments
ProvisionsForRefundPayments
12300000 USD
CY2015Q3 dv Provisions For Refund Payments
ProvisionsForRefundPayments
11100000 USD
CY2016Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
69100000 USD
CY2015Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
63500000 USD
CY2016Q3 us-gaap Capitalized Computer Software Net
CapitalizedComputerSoftwareNet
16600000 USD
CY2015Q3 us-gaap Capitalized Computer Software Net
CapitalizedComputerSoftwareNet
28700000 USD
CY2016Q3 us-gaap Impairment Of Leasehold
ImpairmentOfLeasehold
1300000 USD
CY2015Q3 us-gaap Impairment Of Leasehold
ImpairmentOfLeasehold
7400000 USD
CY2016Q3 us-gaap Advertising Expense
AdvertisingExpense
57600000 USD
CY2016Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.39
CY2015Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.08
CY2016Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.40
CY2015Q3 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.08
CY2015Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2016Q2 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2016Q3 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2016Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
5750000 USD
CY2015Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
6238000 USD
CY2016Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2015Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2016Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2016Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
200000000 shares
CY2015Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
200000000 shares
CY2016Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
200000000 shares
CY2016Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
62728000 shares
CY2016Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
62549000 shares
CY2015Q3 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
63573000 shares
CY2016Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
14454000 shares
CY2016Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
13990000 shares
CY2015Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
12803000 shares
CY2016Q3 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
-4010000 USD
CY2015Q2 us-gaap Restructuring Reserve
RestructuringReserve
27000000 USD
CY2016 us-gaap Restructuring Reserve Period Increase Decrease
RestructuringReservePeriodIncreaseDecrease
67500000 USD
CY2016 us-gaap Restructuring Reserve Accrual Adjustment1
RestructuringReserveAccrualAdjustment1
46300000 USD
CY2016Q2 us-gaap Restructuring Reserve
RestructuringReserve
48200000 USD
CY2014Q2 us-gaap Goodwill Gross
GoodwillGross
519879000 USD
CY2015 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
-23465000 USD
CY2015Q2 us-gaap Goodwill Gross
GoodwillGross
552329000 USD
CY2016Q3 us-gaap Goodwill Gross
GoodwillGross
854188000 USD
CY2016Q3 us-gaap Goodwill Purchase Accounting Adjustments
GoodwillPurchaseAccountingAdjustments
-4481000 USD
CY2016Q3 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
274672000 USD
CY2016Q3 us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
240000000 USD
CY2015Q3 us-gaap Proceeds From Long Term Lines Of Credit
ProceedsFromLongTermLinesOfCredit
0 USD
CY2016Q3 us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
110000000 USD
CY2015Q3 us-gaap Repayments Of Long Term Lines Of Credit
RepaymentsOfLongTermLinesOfCredit
0 USD
CY2016Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.215 pure
CY2016Q3 us-gaap Undistributed Earnings Of Foreign Subsidiaries
UndistributedEarningsOfForeignSubsidiaries
918000000 USD
CY2015Q3 us-gaap Undistributed Earnings Of Foreign Subsidiaries
UndistributedEarningsOfForeignSubsidiaries
797000000 USD
CY2015Q3 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.109 pure
CY2016Q3 us-gaap Indefinite Lived Intangible Assets Period Increase Decrease
IndefiniteLivedIntangibleAssetsPeriodIncreaseDecrease
38100000 USD
CY2015Q3 us-gaap Financing Receivable Recorded Investment Past Due
FinancingReceivableRecordedInvestmentPastDue
26605000 USD
CY2015Q3 us-gaap Financing Receivable Recorded Investment Current
FinancingReceivableRecordedInvestmentCurrent
45169000 USD
CY2016Q3 dv Number Of Days Past Due To Consider Loans As Nonperforming
NumberOfDaysPastDueToConsiderLoansAsNonperforming
P120D
CY2015Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
353022000 USD
CY2015Q3 us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
-19150000 USD
CY2015Q3 us-gaap Goodwill Gross
GoodwillGross
533179000 USD
CY2016Q2 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
20800000 USD
us-gaap Goodwill Purchase Accounting Adjustments
GoodwillPurchaseAccountingAdjustments
4575000 USD
us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
98784000 USD
us-gaap Goodwill Foreign Currency Translation Gain Loss
GoodwillForeignCurrencyTranslationGainLoss
33030000 USD
CY2016Q2 us-gaap Goodwill Gross
GoodwillGross
588007000 USD

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