Slide 1: Acquisition of U.S. Education Corporation
Acquisition of U.S. Education Corporation
Slide 2: Forward Looking Statements
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
Slide 3: Acquisition of U.S. Education Corporation - Daniel Hamburger
Acquisition of U.S. Education Corporation Daniel Hamburger DeVry Inc. President and Chief Executive Officer
Slide 4: Acquisition of U.S. Education Corp.
Acquisition of U.S. Education Corp. Strategy: High demand allied health programs U.S. Education Corp.: High-quality, accredited educational organization Synergies: programs, marketing, online and geographic reach
Slide 5: USEC Campus Locations
USEC has 17 Campus locations in 7 states Citrus Heights, CA Sacramento, CA Antioch, CA Pleasant Hill, CA Emeryville, CA San Leandro, CA San Jose, CA Spokane, WA Western Career Colleges Western Association of Schools and Colleges (WASC) Apollo Colleges Accrediting Council of Independent Colleges and
Slide 6: Allied Health Careers Meet Critical Needs
Allied Health Careers Meet Critical Needs Nursing (16%) Registered Nursing Licensed Practical Nursing Vocational Nursing Vocational Nursing Degree Pharmacy (11%) Pharmacy Technician Veterinary (7%) Veterinary Technician Dental (14%) Dental Hygiene Dental Assisting Dental Assisting Degree The shortag
Slide 7: Financial Performance
$116 $144 $10 $30 $50 $70 $90 $110 $130 $150 $170 FY2007 FY2008 $11.3 $19.5 $0 $5 $10 $15 $20 $25 $30 FY2007 FY2008 Revenues Operating Income + 24% + 73% Financial Performance ($’s in millions)
Slide 8: Rationale for Acquisition
Rationale for Acquisition Vertical diversification in healthcare, particularly nursing Horizontal diversification in associate degree and certificate programs Quality programs and outcomes for students Size is meaningful Compatible cultures and strong management team U.S. Education Corporation is th
Slide 9: Potential Synergies
Potential Synergies Co-location with DeVry University and Chamberlain College of Nursing Opportunity to enhance capacity utilization Marketing: enhanced conversion Leverage DeVry’s online expertise
Slide 10: Thorough Due Diligence
Thorough Due Diligence Visited all campuses Toured facilities, assessed management & operations Compliance review Completed legal, accounting and student finance due diligence Operations review of student population by campus: start/inquiry data, projected continuing student population, and other im
Slide 11: Financing
Financing Purchase price $290 million Utilize cash and existing credit facility (approx. $170 million) Remainder financed with available domestic cash Potentially borrow against auction rate securities, if needed
Slide 12: Growth Strategy
Growth Strategy Add new locations via co-location and standalone campuses Continue program roll-out ; focused on more advanced allied health careers Add new programs Capitalize on online opportunity
Slide 13: Integration Planning is Underway
Integration Planning is Underway Integration team formed with co-leaders from each organization Phase one: infrastructure Finance/accounting IT Human resources Phase two: processes Student finance Admissions training Policies & procedures Phase three: growth initiatives/synergies New locations; new
Slide 14: Acquisition of U.S. Education Corp.
Acquisition of U.S. Education Corporation High quality programs in high-demand fields Strong management team Right price
Slide 15: George Montgomery, President and Chief Executive Officer
U.S. Education Corporation George Montgomery U.S. Education Corporation President and Chief Executive Officer
Slide 16: Overview of USEC
Overview of U.S. Education Corporation USEC established in 2001 Acquired Western Career College in February 2003 (Founded 1967) Acquired Apollo College in December 2003 (Founding 1976) 65,000 Alumni 6,449 7,717 8,745 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2006 2007 2008 Ending Stude
Slide 17: Well-Positioned in the Career College Market
Well-Positioned in the Career College Market 75% of new job openings will require postsecondary education Of these new jobs, 75% will require an associates degree or certificate USEC offers programs for 5 of the fastest growing occupations (1) USEC also offers Registered, Vocational and Practical Nu
Slide 18: Quality Academic Programs and Career Outcomes
Quality Academic Programs and Career Outcomes 5% 10% Default Rate (1) 80/20%; 77/23%; 62/38% (2) 66/34% 90/10 Ratios 84% 88% Graduate employment rate 66% 61% Graduation rate Apollo WCC Student Outcomes (1) Represents 2005 Cohort Default Rates (2) Apollo operates under 3 OPEID numbers (3) Data provid
Slide 19: Management Team
Management Team George Montgomery Chief Executive Officer Bill Clohan Chairman George Harbison Chief Financial Officer Former President and CEO of Taylor Made Golf (grew the company from $75 million to $350 million in revenues). Former U.S. Undersecretary of Education, Education Counsel to the Educa
Slide 20: Acquisition of U.S. Education Corporation
Acquisition of U.S. Education Corporation
Slide 21: Rationale for Acquisition
Vertical diversification in healthcare, particularly nursing Horizontal diversification in associate degree and certificate programs Quality programs and outcomes for students Size is meaningful Compatible cultures and strong management team U.S. Education Corporation is the highest-quality opportun
Slide 22: Meeting Critical Demand for Physicians in U.S.
Meeting Critical Demand for Physicians in U.S. Opening 60-80ksf branch campus in Grand Bahama Temporary site: Jan. 2009 New campus: 2010 Basic sciences curriculum Students begin training in Dominica; Transfer 3rd & 4th semesters to Freeport Alleviates capacity issues and fuels future growth
Slide 23: Acquisition of U.S. Education Corporation
Acquisition of U.S. Education Corporation
Slide 24: Questions & Answers
Questions & Answers Se
Slide 25: Acquisition of U.S. Education Corporation
Acquisition of U.S. Education Corporation