ITT Announces Profit, Fires Back at Allegations
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based ITT Educational Services Inc. is reporting 2014 full-year net income of $29.3 million compared to a 2013 loss of $27 million. The company is currently fighting what it calls “unfounded” U.S. Securities and Exchange Commission fraud charges. The for-profit education education provider also says Chief Executive Officer Kevin Modany will stay on until the end of August before retiring. Modany announced last year he was set to step down in February.
The SEC accuses ITT of establishing “off-balance sheet” loan programs that were concealed from investors when the private student loan market crashed.
The company says it has reached agreements with investors and expects to file a first quarter financial report mid-June. The current annual filing is around two months later than a deadline set forth by the New York Stock Exchange.
ITT last reported enrollment numbers in October. At the time, the previous two quarters registered a dip compared to the same periods a year earlier.
Earlier this month, Senator Richard Durbin (D-IL) issued a statement saying ITT is denying its students “their own 'day in court.'”
CEO Kevin Modany fired back with his own letter, saying “allegations (particularly those that are potentially motivated by politics and ideology) are not findings of fact” and reiterating that ITT Tech will continue to cooperate with all federal and local investigations. He says the institution “could not more vehemently disagree with the substance and the basis” for complaints levied by both the Consumer Financial Protection Bureau and SEC.
You can connect to ITT full earnings report by clicking here.