NEW YORK (TheStreet) -- ITT Educational Services (ESI) shares are up 77.80% to $4.28 in late morning trading on Friday, after the post secondary degree program provider announced the results of an audit of its 2014 financial statement.
The company reported full year net income of $29.3 million in 2014 after reporting a net loss of $27 million in 2013. On a per share basis the company earned $1.23 per share last year after losing $1.15 per share in 2013.
As a result of its audited 2014 numbers the company now believes that its composite score, a key U.S. Department of Education metric measuring an institutions financial stability, was about 2.0 last year. An educational institution's composite score must be above 1.5 to be deemed financially stable without need for governmental oversight.
The company's stock has fallen significantly since beginning the year above $9 per share, including a precipitous fall after the Security Exchange Commission filed fraud charges against the company claiming that it hid financial information from investors relating to two student loan programs that were deemed risky.
"Our complaint alleges that ITT's senior-most executives made numerous material misstatements and omissions in its disclosures to cover up the subpar performance of student loans programs that ITT created and guaranteed," said Andrew J. Ceresney, Director of the SEC's Division of Enforcement in a statement announcing the fraud charges.
The company responded to those allegations by stating that the SEC's allegations were flawed but that it would nonetheless provide the audited financial information that it filed today.