ITT Educational Services Inc. (ESI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Itt Educational Services Inc. has a market cap of $2.94 billion; its shares were traded at around $85.18 with a P/E ratio of 9.5 and P/S ratio of 2.2. Itt Educational Services Inc. had an annual average earning growth of 33.9% over the past 10 years. GuruFocus rated Itt Educational Services Inc. the business predictability rank of 5-star.ESI is in the portfolios of Richard Blum of Blum Capital Partners, Westport Asset Management, Ronald Muhlenkamp of Muhlenkamp Fund, Columbia Wanger of Columbia Wanger Asset Management, Oak Value of Oak Value Capital Management, Jeff Auxier of Auxier Focus Fund, Jeff Auxier of Auxier Focus Fund, Wallace Weitz of Weitz Wallace R & Co, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Cost of educational services increased $23.0 million, or 20.7%, to $133.8 million in the three months ended June 30, 2010 compared to $110.8 million in the three months ended June 30, 2009. The primary factors that contributed to this increase included, in order of significance:
Student services and administrative expenses increased $20.5 million, or 22.7%, to $111.0 million in the three months ended June 30, 2010 compared to $90.4 million in the three months ended June 30, 2009. The principal causes of this increase included, in order of significance:
Operating income increased $41.2 million, or 35.5%, to $157.1 million in the three months ended June 30, 2010 compared to $115.9 million in the three months ended June 30, 2009, as a result of the impact of the factors discussed above in connection with revenue, cost of educational services, and student services and administrative expenses. Our operating margin increased to 39.1% in the three months ended June 30, 2010 compared to 36.6% in the three months ended June 30, 2009, as a result of the impact of the factors discussed above.
Interest income decreased $0.3 million, or 39.3%, to $0.5 million in the three months ended June 30, 2010 compared to $0.9 million in the three months ended June 30, 2009, primarily due to lower average investment balances and a decrease in investment returns in the overall market. Interest expense increased $0.3 million, or 147.1%, to $0.5 million in the three months ended June 30, 2010 compared to $0.2 million in the three months ended June 30, 2009, due to an increase in the effective interest rate on our revolving credit facilities.
Six Months Ended June 30, 2010 Compared with Six Months Ended June 30, 2009. Revenue increased $180.6 million, or 29.8%, to $785.8 million in the six months ended June 30, 2010 compared to $605.2 million in the six months ended June 30, 2009. The primary factors that contributed to this increase included, in order of significance:
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Itt Educational Services Inc. has a market cap of $2.94 billion; its shares were traded at around $85.18 with a P/E ratio of 9.5 and P/S ratio of 2.2. Itt Educational Services Inc. had an annual average earning growth of 33.9% over the past 10 years. GuruFocus rated Itt Educational Services Inc. the business predictability rank of 5-star.ESI is in the portfolios of Richard Blum of Blum Capital Partners, Westport Asset Management, Ronald Muhlenkamp of Muhlenkamp Fund, Columbia Wanger of Columbia Wanger Asset Management, Oak Value of Oak Value Capital Management, Jeff Auxier of Auxier Focus Fund, Jeff Auxier of Auxier Focus Fund, Wallace Weitz of Weitz Wallace R & Co, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Three Months Ended June 30, 2010 Compared with Three Months Ended June 30, 2009. Revenue increased $84.7 million, or 26.7%, to $401.8 million in the three months ended June 30, 2010 compared to $317.1 million in the three months ended June 30, 2009. The primary factors that contributed to this increase included, in order of significance:Cost of educational services increased $23.0 million, or 20.7%, to $133.8 million in the three months ended June 30, 2010 compared to $110.8 million in the three months ended June 30, 2009. The primary factors that contributed to this increase included, in order of significance:
Student services and administrative expenses increased $20.5 million, or 22.7%, to $111.0 million in the three months ended June 30, 2010 compared to $90.4 million in the three months ended June 30, 2009. The principal causes of this increase included, in order of significance:
Operating income increased $41.2 million, or 35.5%, to $157.1 million in the three months ended June 30, 2010 compared to $115.9 million in the three months ended June 30, 2009, as a result of the impact of the factors discussed above in connection with revenue, cost of educational services, and student services and administrative expenses. Our operating margin increased to 39.1% in the three months ended June 30, 2010 compared to 36.6% in the three months ended June 30, 2009, as a result of the impact of the factors discussed above.
Interest income decreased $0.3 million, or 39.3%, to $0.5 million in the three months ended June 30, 2010 compared to $0.9 million in the three months ended June 30, 2009, primarily due to lower average investment balances and a decrease in investment returns in the overall market. Interest expense increased $0.3 million, or 147.1%, to $0.5 million in the three months ended June 30, 2010 compared to $0.2 million in the three months ended June 30, 2009, due to an increase in the effective interest rate on our revolving credit facilities.
Six Months Ended June 30, 2010 Compared with Six Months Ended June 30, 2009. Revenue increased $180.6 million, or 29.8%, to $785.8 million in the six months ended June 30, 2010 compared to $605.2 million in the six months ended June 30, 2009. The primary factors that contributed to this increase included, in order of significance:
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