This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ITT Educational Services' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Mr. Modany, you may begin.

Kevin M. Modany

Thank you very much. Good morning, ladies and gentlemen, and thank you for joining us on our conference call to review our 2012 first quarter results. As usual, Dan Fitzpatrick, our Executive Vice President and Chief Financial Officer, is on the call with me this morning. For our prepared remarks today, we'll follow our standard format and limit our comments so as to allow more time for your questions during the Q&A session. We'll start the call with a few brief thoughts regarding the marketing and advertising results for the quarter. From there, we'll provide a few comments regarding the new student enrollment results. We'll then review student retention and persistence metrics in the first quarter. And at that point, we'll provide an update on the graduate employment metrics of our 2011 graduates.

I will then provide an update on the execution of our strategic plan.

Before I turn it over to Dan, I will provide a few comments regarding our 2012 share repurchase activity and our efforts to facilitate additional private education loan options for our students. Dan will then provide a few comments regarding the financial results reported in this morning's press release as well as the new credit facility. At that point, we'll open up the call for your questions.

Let me begin by providing a review of the 2012 first quarter marketing and advertising results. Advertising expenditures increased 5.8% in the first quarter of 2012 compared to the same prior year period. This was slightly less than we had planned at the start of the quarter due, primarily, to a higher level of preemptions on certain television advertising. For the third consecutive quarter, we experienced a more material year-over-year decline in new student enrollment in criminal justice programs in the first quarter compared to the new student enrollment in our other curricula as a result of self-directed changes to program offerings at select campuses.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs