FAR EASTERN UNIVERSITY
P.O. BOX 609 MANILA, PHILIPPINES
SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SEC RULE 17 (2) (b) THEREUNDER
1. For the Quarter period ended June 30, 2009 2. SEC Identification Number 538
3. PSE Code
4. BIR Tax Identification No. 000-225-442
5. Exact Name of Registrant as specified Far Eastern University, Inc.
in its charter
6. Province, Country or other jurisdiction of Philippines Incorporation or organization
7. __________________
/ / (SEC use only) / /
8. Address of Principal Office Nicanor Reyes Street, Sampaloc, Manila
Postal Code 1008
9. Registrant’s Telephone Number (632) 735-5621 including Area Code
10. NOT APPLICABLE
Former name, former address, and former fiscal year, if changed since last report.
11. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of
the RSA
Number of Shares of Common
Stock Outstanding and
Title of Each Class Amount of Debt Outstanding Common Stock, P100.00 par value 9,808,448
Bond with Non-Detachable Warrant, Not Applicable P1.00 per unit
- 2 -
12. All of these common securities are listed with the Philippine Stock Exchange, Inc.
13. Has filed all reports required during the preceding 12 months (or for such shorter period required to file such reports):
a) Sections 17 of the Code and SRC Rule 17
Yes [ x ] No [ ]
b) Sections 26 and 141 of the Corporation Code of the Philippines Yes [ x ] No [ ]
Financial Information
Item 1. Quarterly Financial Statements attached.
FAR EASTERN UNIVERSITY
ANGELINA P. JOSE GLENN Z. NAGAL Corporate Secretary Comptroller
FE V. CANILAO ARNUALDO B. MACAPAGAL Chief Financial Officer Chief Accountant
Manila
August 13, 2009
Management’s Discussion and Analysis or Plan of Operation
Financial Position:
Total assets as of June 30, 2009 amounting to P4,100.4 million increased by P653.1 million over this year’s beginning balance of P3,447.3 million. Current assets went up by P662.7 million while non-current assets decreased by P9.6 million thus the increase in total assets by P653.1 million.
Total liabilities as of June 30, 2009 amounting to P1,325.9 million increased by P767.7 million over this year’s beginning balance of P558.1 million. Current liabilities went up by P702.1 million and non-current liabilities by P65.6 million thus the increase in total liabilities by P767.7 million.
Stockholder’s equity as of June 30, 2009 amounting to P2,774.6 million decreased by P114.6 million compared to this year’s beginning balance of P2,889.2 million. Total assets increased by P653.1 million while liabilities increased by P767.7 million thus the decrease in stockholder’s equity by P114.6 million.
Results of Operation
Net income after tax for the first quarter is P32.46 million reflecting an increase of P12.85 million compared to last year's P19.61 million. Net operating (educational) income of P7.91 million is higher than last year’s P.22 million by P7.69 million while other income went up by P7.17 million. After an income tax of P5.95 million which showed an increase of P2.02 million, net income after tax for the first quarter of this year is P12.84 million more than the same period last year.
A Look of What Lies Ahead
During the past four years, the first semester enrollment gradually decreased from 26,411 in 2005-2006 to 23,291 in 2008-2009. Second semester enrollment normally drops by 10% from that of the first semester but actual results were better at an average of 7.25% decrease. Over the same period, tuition rates increased by 11%, 7%, 6% and 5% respectively. Net operating (educational) income in 2006-2007 when enrollment was still at the 26,000 level posted a slight improvement of 7.14%. It was also in 2007-2008 and 2008-2009 when enrollment went down to 23,000 level that net operating income decreased by 2.9% and 7.4% respectively.
This current school year, the further reduction in the first semester enrollment by about 1.75% and the lower increase in tuition fees from 6% to 5% may reduce the profitability of operations unless operating expenses are limited to the minimum.
With the company’s total current assets amounting to P1,780.7 million and non-current assets amounting to P993.8 million (net of all liabilities) as of June 30, 2009 and with an expected net income, the company does not foresee any cash flow or liquidity problem in the next 12 months. It is also expected that the company shall easily meet all its commitments including those for improvements in instructional and other facilities from its present reserves and from expected future earnings.
As for the years ahead, management will continue to uplift its academic standard by continuously updating its curriculum, strengthening its faculty, and further improving its facilities. With sustained improvements in all fronts and with reasonable tuition fee rates, the University is confident that it will still be able to maintain its market share in the industry.
Changes in Real Accounts as of June 30, 2009 compared to March 31, 2009
Increase
June 30, 2009 March 31, 2009 (Decrease) %
1
Cash & Cash
Equivalents 1,317,923,281.69 1,180,261,852.02 137,661,429.67 12%
2 Receivables 607,983,110.44 133,310,656.97 474,672,453.47 356%
3 Available for sale Investments
1,086,255,629.59 1,073,109,957.17 13,145,672.42 1%
4 Other Current Assets 74,411,427.78 37,201,825.93 37,209,601.85 100%
5 Investment Property 192,260,130.44 194,855,461.43 (2,595,330.99) -1%
6 Property and Equipment, net
593,992,676.41 601,011,101.32 (7,018,424.91) -1%
7 Accounts payable &
other current liabilities
464,127,395.49 380,536,852.14 83,590,543.35 22%
8 Unearned Tuition Fees 692,287,692.97 75,499,149.31 616,788,543.66 817%
9 Income Tax Payable 45,342,336.29 43,616,798.12 1,725,538.17 4%
10 Trust Funds and Deposits Payable
124,123,818.19 58,490,641.49 65,633,176.70 112%
11 Stockholder's Equity 2,774,559,164.34 2,889,221,564.70 (114,662,400.36) -4%
Changes in Income and Expense Items during the same period (first quarter) this year and
last year
Increase
INCOME June 30, 2009 June 30, 2008 (Decrease) %
1 Tuition Fees, net 218,364,538.01 201,347,267.40 17,017,270.61 8%
2 Miscellaneous Fees 7,867,405.10 7,805,244.60 62,160.50 1%
3 Other Income 30,506,867.00 23,328,316.47 7,178,550.53 31%
Increase
EXPENSES June 30, 2009 June 30, 2008 (Decrease) %
1 Salaries 131,838,777.10 124,340,594.12 7,498,182.98 6%
2 Employee Benefits 24,121,876.71 23,617,016.62 504,860.09 2%
3 RLE 1,657,330.00 1,328,205.86 329,124.14 25%
4 Affiliation 1,353,809.20 2,605,525.05 (1,251,715.85) -48%
5 Other Instructional &
Academic Expenses
4,792,449.07 3,918,453.12 873,995.95 22%
6 Rentals 12,597,621.36 12,669,354.82 (71,733.46) -1%
7 Other Administrative Expenses
1,651,861.40 4,080,883.43 (2,429,022.03) -60%
8 Utilities 12,933,448.86 12,035,129.14 898,319.72 7%
9 Janitorial Services 2,090,759.84 2,400,712.49 (309,952.65) -13%
10 Repairs & Maintenance, Buildings & Equipment
3,015,560.59 474,577.89 2,540,982.70 535%
11 Security Services 4,229,804.01 5,175,004.19 (945,200.18) -18%
12 Depreciation 12,195,125.17 11,160,927.99 1,034,197.18 9%
13 Publicity and Promotions 2,694,089.66 1,738,756.04 955,333.62 55%
14 Other General Expenses 1,000,200.02 1,373,394.25 (373,194.23) -27%
15 Taxes & Licenses 127,444.00 47,118.40 80,325.60 170%
16 Charitable Contribution 54,550.00 4,000.00 50,550.00 1264%
Cause of Material Changes in Real Accounts as of June 30, 2009 compared to March 31, 2009
1. Cash and cash equivalent increased by P137.66 million due to collections from students.
2. Available for sale investments increased by P13.46 million due to additional placements.
3. Receivables increased by P474.67 million due to new receivables from students enrolled in the first semester.
4. Other current assets increased by P37.21 million due to prepaid rental, prepaid investment and prepaid insurance.
5. Investment Property decreased by P2.6 million due to depreciation.
6. Property and Equipment decreased by P7.02 million due to depreciation.
7. Accounts payable and other current liabilities increased by P83.59 million due to:
( in million )
Accounts Payable P(55.73)
Accrued Expenses (19.95)
Deposit Payable 12.14
Dividend Payable 147.13 .
P 83.59 .
8. Unearned tuition fee increased by P616.79 million due to tuition fee not yet earned for the rest of the semesters (4 months).
9. Income tax payable increased by P1.73 million due to provision for income tax expense for the first quarter of this year. Income tax payable for the previous year was paid in July, 2009.
10. Trust funds, deposits and emoluments increased by P65.53 million due to allocations made during the summer and the first semester of this school year.
11. Stockholders’ equity decreased by P114.66 million due to cash dividends declared in June which is more than the net income on the first quarter.
Cause of Material Changes in Income and Expense Items during the same period (First Quarter) this year and last year.
INCOME
1. Tuition fee income went up by P17.06 million due to increase in enrollment in summer and tuition fee rates.
2. Miscellaneous Fees increased by P.06 million due to evaluation of credits and diploma fees.
3. Other income increased by P7.18 million due to interest income and rental income.
EXPENSES
1. Salaries and allowances increased by P7.5 million due to increased rates and increase in faculty pay due to increase in summer enrollment.
2. Employee and faculty benefits increased by P.5 million due to increased rates.
3. RLE increased by P.329 million due to increased rates.
4. Affiliation fee decreased by P1.25 million. There were late billings paid only in the first quarter of last year.
5. Other Instructional and academic expenses increased by P.87 million due to:
( in million )
Subscriptions P( .004)
Conference and Seminar ( .788)
Supplies and Materials ( .194)
Printing and Binding ( .004)
Student Services ( .138)
Other Academic Expenses 2.001 Total P .873 6. Rental expense decreased by P.072 million mainly due to PAS 17. 7. Other administrative expenses decreased by P2.429 million due to: ( in million ) Conference and Seminars P( .123 ) Supplies and Materials ( .242 )
Printing and Binding ( .006 )
Other Administrative Expenses (2.058 ) Total P(2.429) 8. Utilities expense increased by P.898 million due to: ( in million ) Supplies and Materials P .058
Light and Power .093
Water .434
Telephone ( .053 )
Gasoline and oil .082
Conference and Seminar .021
Others .263
Total P .898
9. Janitorial Services decreased by P.310 million due to less special engagements.
10. Repairs and Maintenance, buildings and grounds increased by P2.54 million due to many repair works done in summer.
11. Security Services decreased by P.945 million due to less special engagements.
12. Depreciation increased by P1.03 million due to additional assets.
12. Publicity and Promotions increased by P.955 million due to a more ads placed in the first quarter
13. Other General expenses increased by P.372 million due to:
( in million )
Interest and Bank Charges P .024
Other General Expenses ( .396 )
Total P( .372 )
15. Taxes and Licenses increased by P.080 million due to increased rates.
16. Charitable contribution increased by P.051 due to more donations.
Top Five (5) Key Performance Indicators
I. Test of Liquidity
Liquidity refers to the company’s ability to pay its short-term current liabilities as they fall due. This is measured by any of the following:
1. Current ratio measures the number of times that the current liabilities could be paid with the available current assets (Adequate: at least 1.5:1)
June 30, 2008 2.60:1 March 31, 2009 4.89:1
June 30, 2009 2.58:1
2. Quick ratio measures the number of times that the current liabilities could be paid with the available quick assets (Adequate: at least 1:1)
June 30, 2008 2.50:1 March 31, 2009 4.82:1
June 30, 2009 2.52:1
II. Test of Solvency
Solvency refers to the company’s ability to pay all its debts whether such liabilities are current or non-current. It is somewhat similar to liquidity, except that solvency involves a longer time horizon. This is measured by any of the following:
1. Debt to equity ratio measures the amount of assets provided by the creditors relative to that provided by the owner (Adequate : 100% or less)
June 30, 2008 49%
March 31, 2009 19%
June 30, 2009 48%
2. Debt to asset ratio measures the amount of assets provided by the creditors relative to the total amount of assets of the company. (Adequate: 50% or less)
June 30, 2008 33%
March 31, 2009 16%
June 30, 2009 32%
3. Equity to asset ratio measures the amount of assets provided by the owner relative to the total assets of the company (Adequate: 50% or more)
June 30, 2008 67%
March 31, 2009 84% June 30, 2009 68%
III. Test of Profitability Profitability refers to the company’s earning capacity. It also refers to the company’s ability to earn a reasonable amount of income in relation to its total investment. It is measured by any of the following: 1. Return on total assets measures how well management has used its assets under its control to generate income (Adequate: at least equal to the prevailing industry rate). June 30, 2008 1% (first quarter) March 31, 2009 16% ( one year ) June 30, 2009 1% (first quarter) 2. Return on owner’s equity measures how much was earned on the owners’ or stockholders’ investment. (Adequate: at least equal to the prevailing industry rate). June 30, 2008 1% (first quarter) March 31, 2009 20% ( one year ) June 30, 2009 1% (first quarter) 3. Earnings per share measures the net income per share. June 30, 2008 P 2.80 (first quarter) March 31, 2009 67.44 ( one year ) June 30, 2009 3.31 (first quarter) IV. Product Standard 1. Teaching performance in the University is constantly being monitored to maintain a satisfactory level of excellence. Teaching Excellence % toTotal Year Awardees Teaching force 2005-2006 581 53%
2006-2007 412 37%
2007-2008 430 38%
2008-2009 377 34%
2. The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) has granted Certificates of Level III Re- accredited Status to our Commerce and Liberal Arts Programs. It has also granted Level II Re-accredited Status to our Elementary and Secondary Education Programs.
The Philippine Accreditating Association of Schools, Colleges and Universities (PAASCU), also issued a certificate of accreditation to the University’s Nursing Program.
3. Performance of FEU graduates in their respective Board Exams is generally better than the national passing rate:
FEU National
Passing Rate Passing Rate
Architecture, Jan.2009 31% 39%
Bar Exam, 2008 43% 21%
CPA, Oct., 2008 54% 37%
CPA, May 2009 36% 28%
LET (Elem), Apr. 2009 33% 28%
LET (Secondary), Apr. 2009 48% 25%
Nursing, Nov. 2008 61% 45%
V. Market Acceptability
Below is a comparative schedule of first semester enrollment for the past 4 years:
SY Enrollment
2006-2007 26,229
2007-2008 23,928
2008-2009 23,291
2009-2010 22,885
Due to the economic recession, it was estimated that the first semester enrollment for SY 2009-2010 will be around 10% lower. Final figure was better with a decrease of only 1.75%. It also turned out that all institutes, except for the Institute of Nursing, had a better enrollment.
The surge in the number of valedictorians, salutatorians and entrance merit scholars to around 800 a year (833 in 2007-2008 and 798 in 2008-2009) during the past two school years is an indication that FEU has become one of the better choices among the various colleges and universities in the metropolis.
Formula
1 Liquidity
1 Current ratio = Current assets
Current Liabilities
2 Acid test ratio = Quick assets
Current Liabilities
2 Solvency
1 Debt to Equity ratio = Total liabilities
Total Stockholder's Equity
2 Debt to Asset ratio = Total liabilities
Total assets
3 Equity to Asset ratio = Total Stockholder's Equity
Total assets
3 Profitability
1 Return on Assets = Net Income
Total assets
2 Return on Owner's Equity = Net Income
Total Stockholder's Equity
3 Earning per share = Net Income
Total Outstanding shares (average)
Facts
1st Quarter 1st Quarter
June 30, 2008 March 31, 2009 June 30, 2009
Quick Assets 2,729.8 2,406.7 3,032.2
Current Assets 2,835.1 2,443.9 3,106.6
Total Assets 3,722.6 3,447.4 4,100.4
Current Liabilities 1,091.3 499.7 1,201.8
Total Liabilities 1,229.1 558.1 1,325.9
Stockholder's Equity 2,493.5 2,889.3 2,774.5
Net Income after Tax 19.6 567.0 32.5
Total Outstanding shares (average) 7,006,368 shares 8,407,408 shares 9,808,448 shares
Book Value per share 355.89 343.65 282.87
Other Items
1. The current economic condition may affect the net sales/revenues/income from operations.
2. There are no known events that will trigger direct or contingent financial obligation that may be material to the company. There are also no known events that would result in any default or acceleration of an obligation.
3. There are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with unconsolidated entities or other persons created during the reporting period.
4. There are no sales of Unregistered or Exempt Securities including Recent Issuance of Securities Constituting an Exempt Transaction.
5. There are no material commitments for capital expenditures.
6. There are no significant elements of income or loss from continuing operations.
7. Seasonal aspects that has material effect on financial statements:
There are three school terms within a fiscal year: the summer (April-May), the first semester (June to October) and the second semester (November to March). The first semester has the highest enrollment at an average of 24,000 students. The second semester is usually at 90% of the first semester’s enrollment while summer is the lowest at around 33%. The full load of a student during the summer is 9 units compared to 21 to 24 during the first and second semesters. The tuition fee increase, if any, usually takes effect during the first semester of the current school year. Thus, old rates are followed during the summer term while new rates are used during the first and second semesters. Since the first quarter is from April to June, the resulting income for the first quarter is expected to be lowest among the four quarters of the fiscal year.
FAR EASTERN UNIVERSITY Notes to Financial Statements
June 30, 2009
1. The interim Financial Statements are in compliance with the generally accepted accounting principles.
2. The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements.
3. There are no items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size or incidents.
4. No significant changes in estimates of amounts reported in prior interim periods or in prior financial years that have a material effect in the current interim period have been noted.
5. There are no issuances, repurchases, and repayments of debt and equity securities.
6. On June 19, 2009, a cash dividend of P15.00 per share has been declared to all stockholders on record as of July 6, 2009. There were 9,808,448 outstanding shares and a total of P147,126,720.00 was paid on July 20, 2009.
7. The school has no reportable business or geographical segment as defined by SFAS 31/IAS 14 par. 9 “Segment Reporting”.
8. There are no material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period.
9. There are no changes in composition of the issuer during the interim period, including business combinations, acquisitions or disposal of subsidiaries and long-term investments, restructurings, and discontinuing operations.
10. There are no changes in contingent liabilities or contingent assets since the last annual balance sheet date.
June 2009 March 2009
A S S E T S Current Assets
Cash and cash equivalents P 1,317,923,281.69 P 1,180,261,852.02
Receivables -net 607,983,110.44 133,310,656.97
Available-for-Sale investments - net 1,086,255,629.59 1,073,109,957.17 Held-to-maturity Investment 20,000,000.00 20,000,000.00
Other current assets 74,411,427.78 37,201,825.93
Total Current Assets 3,106,573,449.50 2,443,884,292.09
Noncurrent Assets
Due from a related party 100,000,000.00 100,000,000.00
Investments in subsidiaries and an associate 96,313,488.94 96,313,488.94
Investment Property , net 192,260,130.44 194,855,461.43
Property and Equipment, net 593,992,676.41 601,011,101.32
Deferred Tax Assets - net 5,701,855.22 5,701,855.22
Other Assets 5,598,806.76 5,598,806.76
Total Noncurrent Assets 993,866,957.77 1,003,480,713.67
P 4,100,440,407.27 P 3,447,365,005.76
LIABILITIES & EQUITY Current Liabilities
Accounts payable & other current liabilities P 464,127,395.49 P 380,536,852.14
Unearned Tuition fees 692,287,692.97 75,499,149.31
Income Tax Payable 45,342,336.29 43,616,798.12
Total Current Liabilities 1,201,757,424.75 499,652,799.57
Non-current Liability
Trust Funds 124,123,818.19 58,490,641.49
Total Liabilities 1,325,881,242.94 558,143,441.06
Equity
Capital Stock 984,577,900.00 984,577,900.00
Treasury stock (3,733,100.00) (3,733,100.00)
Accumulated fair value gains(losses) (9,533,437.37) (9,533,437.37) Retained Earnings
Appropriated retained earnings 975,099,016.73 975,099,016.73
Unappropriated retained earnings 828,148,784.98 942,811,185.34
Total Equity 2,774,559,164.34 2,889,221,564.70
P 4,100,440,407.27 P 3,447,365,005.76 FAR EASTERN UNIVERSITY
B A L A N C E S H E E T June 30, 2009
(With comparative figures for March 31, 2009)
April to
June 2009 June 2008
EDUCATIONAL INCOME
Tuition Fees - net P 218,364,538.01 P 201,347,267.40
Miscellaneous Fees 7,867,405.10 7,805,244.60
226,231,943.11 209,152,512.00 OPERATING EXPENSES ( Schedule 1 ) 218,315,333.27 208,930,664.25
NET EDUCATIONAL INCOME 7,916,609.84 221,847.75
OTHER INCOME ( EXPENSE )
Finance Income 21,168,095.19 15,786,521.25
Rental 7,466,642.25 5,498,351.16
Miscellaneous 1,872,129.56 2,043,444.06
30,506,867.00 23,328,316.47 INCOME BEFORE INCOME TAX 38,423,476.84 23,550,164.22 TAX EXPENSE
Provision for Income Tax 1,725,538.17 776,364.30
Tax Expense - Final Tax 4,233,619.04 3,157,304.25
5,959,157.21 3,933,668.55
NET INCOME P 32,464,319.63 P 19,616,495.67
EARNINGS PER SHARE
Basic P 3.31 2.80
Diluted 3.31 2.80
FAR EASTERN UNIVERSITY
STATEMENT OF INCOME
For the three-month period ended June 30, 2009
(As restated)
June 2009 June, 2008
CAPITAL STOCK - P100 par value
Balance at beginning of year P 984,577,900.00 P 704,369,900.00
Issuance during the year 0.00 0.00
Balance at end of year 984,577,900.00 704,369,900.00
TREASURY STOCK - at cost ( 37,331 shares ) (3,733,100.00) (3,733,100.00)
ACCUMULATED FAIR VALUE GAINS (LOSSES)
Balance at beginning of year 1,233,243.31 (5,025,163.68) Fair Value gains (losses) for the year (8,016,081.68) 0.00 Reclassification to profit and loss during the year (2,750,599.00) 0.00
Balance at end of year (9,533,437.37) (5,025,163.68)
RETAINED EARNINGS APPROPRIATED
Balance at beginning of year 975,099,016.73 1,147,161,414.13
Appropriations for:
Reserve for General retirement 0.00 0.00
Expansion of facilities 0.00 0.00
Purchases of equipments
& improvements 0.00 0.00
Reversal for Appropriations 0.00 0.00
Balance at end of year 975,099,016.73 1,147,161,414.13
UNAPPROPRIATED Balance at beginning of year
As previously reported 942,811,185.34 766,521,353.30
Prior period adjustment 0.00 (30,293,466.58)
As restated 942,811,185.34 736,227,886.72
Net Income 32,464,319.63 19,616,495.67
Cash dividends (147,126,720.00) (105,095,520.00)
Stock dividends 0.00 0.00
Balance at end of year 828,148,784.97 650,748,862.39
Total Retained Earnings 1,803,247,801.70 1,797,910,276.52
P 2,774,559,164.33 P 2,493,521,912.84 FAR EASTERN UNIVERSITY
Statement of Changes in Equity
For the three-month period ended June 30, 2009 and 2008
(As restated)
June 2009 June 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax P 38,423,476.84 P 23,550,164.22
Adjustments for:
Depreciation and amortization 12,195,125.17 11,160,927.99
Interest Income (21,168,095.19) (15,786,521.25)
Operating income before working capital changes 29,450,506.82 18,924,570.96
Decrease (increase) in Receivables (474,672,453.47) (458,399,997.52) Decrease (increase) in Other current assets (37,209,601.85) (53,732,902.78) Increase (decrease) in Accounts payable & other current li 83,590,543.35 (96,330,616.48)
Increase in Unearned Tution Fee 616,788,543.66 690,991,660.50
Cash generated from (used in) operations 217,947,538.51 101,452,714.68
Income taxes paid 0.00 0.00
Net cash from operating activities 217,947,538.51 101,452,714.68
CASH FLOWS FROM INVESTING ACTIVITIES Addition to property and equipment
and investment property (2,581,369.27) (912,037.73)
Decrease (Increase) in available-for-sale investments (13,145,672.42) (3,762,347.34)
Interest Received 16,934,476.15 12,629,217.00
Decrease (increase) in held-to-maturity investments 0.00 12,071,040.30
Additional investment in subsidiaries 0.00 (1,121,600.00)
Decrease (Increase) in other non-current assets 0.00 (134,833.40)
Increase in due from a related party 0.00 0.00
Net cash provided by (used in) investing activities 1,207,434.46 18,769,438.83 CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid (147,126,720.00) (105,095,520.00)
Increase (decrease) in trust funds 65,633,176.70 61,574,645.74
Net cash used in financing activities (81,493,543.30) (43,520,874.26)
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 137,661,429.67 76,701,279.25
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 1,180,261,852.02 1,224,663,998.79 CASH AND CASH EQUIVALENTS
AT END OF YEAR P 1,317,923,281.69 P 1,301,365,278.04 FAR EASTERN UNIVERSITY
STATEMENT OF CASH FLOWS For the three-month period ended June 30, 2009
June 2009 June 2008
Instructional and Academic
Salaries and allowances P 104,444,579.10 P 98,647,380.43
Employees benefits 18,219,743.46 17,826,434.06
RLE 1,657,330.00 1,328,205.86
Affiliation 1,353,809.20 2,605,525.05
O t h e r s 4,792,449.07 3,918,453.12
130,467,910.83 124,325,998.52 Administrative
Salaries and allowances 22,091,866.04 19,771,528.54
Employees benefits 4,727,745.23 4,291,152.66
Rentals 12,597,621.36 12,669,354.82
O t h e r s 1,651,861.40 4,080,883.43
41,069,094.03 40,812,919.45 Maintenance and Plant Operation
Utilities 12,933,448.86 12,035,129.14
Janitorial services 2,090,759.84 2,400,712.49
Salaries and allowances 5,302,331.96 5,921,685.15
Employees benefits 1,174,388.02 1,499,429.90
Property insurance 382,078.58 382,078.58
Repairs and maintenance
Buildings and equipments 3,015,560.59 474,577.89 24,898,567.85 22,713,613.15 General
Security services 4,229,804.01 5,175,004.19
Depreciation 12,195,125.17 11,160,927.99
Publicity and promotions 2,694,089.66 1,738,756.04
O t h e r s 1,000,200.02 1,373,394.25
Professional Fee 1,578,547.70 1,578,932.26
Taxes and licenses 127,444.00 47,118.40
Charitable contribution 54,550.00 4,000.00
21,879,760.56 21,078,133.13 P 218,315,333.27 P 208,930,664.25
Schedule 1 FAR EASTERN UNIVERSITY
Schedule of Operating/Educational Expenses For the three-month period June 30, 2009 & 2008
FAR EASTERN UNIVERSITY Aging of Accounts Receivable As of June 30, 2009
Past due accounts Total 1 to 6 months 7 mos. To 1 year One year or more & items in litigation Type of Accounts receivable
Non - Trade Receivables
1 . Suppliers 21,618,013.67 21,618,013.67 Not Applicable
2 . Official and Personal 11,468,497.06 11,468,497.06 "
3 . SSS Sickness Benefit 127,188.55 127,188.55 "
4 . FERN College 1,357,472.83 665,161.69 420,816.58 271,494.57 "
5 . NRMF 456,802.10 456,802.10 "
6 . Engineering / East Asia 2,455,547.88 2,455,547.88 "
7 . BPAP ADEPT 15,450.00 15,450.00 "
8 . FEU Silang 3,017,587.58 3,017,587.58 "
9 . FERN Realty 163,523.63 163,523.63 "
Total 40,680,083.30 37,532,224.28 2,876,364.46 271,494.57
