ITT Educational Services, Inc . ESI recently revealed its enrollment numbers for the first quarter of 2015 ending Mar 31, 2015.
Total enrollment declined 10.4% year over year while new enrollment declined 15.8% year over year. Persistence rate was 69.2%, which declined 100 basis points year over year.
The education company also announced that its Executive Vice President and Chief Financial Officer, Daniel M. Fitzpatrick will retire from his current positions effective Oct 29, 2015. Fitzpatrick has served as Chief Financial Officer since 2005.
ITT Educational Services also revealed that David Brown has been elected to serve on its board of directors.
The company continues to face trouble filing its earnings since the fourth quarter of 2013 owing to uncertainty related to the accounting treatment of the PEAK Private Student Loan Program in its financial statements.
It has also been facing various litigation processes since 2014. There have been speculations that ITT Educational Services has engaged in improper and unlawful credit practices during the time period between Jul 2011 and Dec 2011. There have also been speculations about whether the company has violated any of the federal securities laws or has provided inaccurate statements regarding its true financial position.
With stricter regulations from the U.S. Department of Education (DoE), the scenario is not likely to improve any time soon. The company is unclear about the timing of its earnings release. The company has not filed its third quarter 2014 10Q and 2014 10K yet. There is no uncertainty as to when the company will be able to file its third quarter 2014 10Q, 2014 10K and first quarter 2015 10Q.
In fact, there are other education companies who are facing the wrath of the DoE due to violation of federal securities law.
Earlier this month, another education company, Corinthian Colleges, Inc. COCO , shut down its remaining 28 ground campuses. Corinthian Colleges, since the last year, has been having a rough time with the DoE. Corinthian had allegedly falsified job placement rates and misplaced students' attendance records at some of its schools, which led to the strict action by DoE.
ITT Educational Services has a Zacks Rank #3 (Hold).
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