ITT Educational Services Inc. (ESI, Financial) filed Quarterly Report for the period ended 2009-06-30.
ITT EDUCATIONAL SERVICES INC. is a leading proprietary provider of technical postsecondary degree programs in the United States based on student enrollment. The Co. offers associate's and bachelor's degree programs where authorized and to a lesser extent non-degree diploma programs to over 20000 students through a system of 54 ITT Technical Institutes located in 25 states. These programs are designed after consultation with employers to provide students with the knowledge and skills necessary for entry- level employment in technical positions in a variety of industries. ITT Educational Services Inc. has a market cap of $3.91 billion; its shares were traded at around $102 with a P/E ratio of 17.9 and P/S ratio of 3.8. ITT Educational Services Inc. had an annual average earning growth of 32.1% over the past 10 years. GuruFocus rated ITT Educational Services Inc. the business predictability rank of 5-star.
Cost of educational services increased $15.6 million, or 16.4%, to $110.8 million in the three months ended June 30, 2009 compared to $95.2 million in the three months ended June 30, 2008. The primary factors that contributed to this increase included, in order of significance:
Student services and administrative expenses increased $14.1 million, or 18.9%, to $89.0 million in the three months ended June 30, 2009 compared to $74.9 million in the three months ended June 30, 2008. The principal causes of this increase included, in order of significance:
Operating income increased $41.0 million, or 53.7%, to $117.3 million in the three months ended June 30, 2009 compared to $76.3 million in the three months ended June 30, 2008, 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 37.0% in the three months ended June 30, 2009 compared to 31.0% in the three months ended June 30, 2008, as a result of the impact of the factors discussed above.
Interest income decreased $0.3 million, or 25.4%, to $0.9 million in the three months ended June 30, 2009 compared to $1.2 million in the three months ended June 30, 2008, primarily due to a decrease in investment returns in the overall market. Interest expense decreased $0.9 million, or 80.3%, to $0.2 million in the three months ended June 30, 2009 compared to $1.1 million in the three months ended June 30, 2008, primarily due to a decrease in the effective interest rate on our revolving credit facilities.
Six Months Ended June 30, 2009 Compared with Six Months Ended June 30, 2008. Revenue increased $123.9 million, or 25.7%, to $605.2 million in the six months ended June 30, 2009 compared to $481.3 million in the six months ended June 30, 2008. The primary factors that contributed to this increase included, in order of significance:
Read the The complete ReportESI is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
ITT EDUCATIONAL SERVICES INC. is a leading proprietary provider of technical postsecondary degree programs in the United States based on student enrollment. The Co. offers associate's and bachelor's degree programs where authorized and to a lesser extent non-degree diploma programs to over 20000 students through a system of 54 ITT Technical Institutes located in 25 states. These programs are designed after consultation with employers to provide students with the knowledge and skills necessary for entry- level employment in technical positions in a variety of industries. ITT Educational Services Inc. has a market cap of $3.91 billion; its shares were traded at around $102 with a P/E ratio of 17.9 and P/S ratio of 3.8. ITT Educational Services Inc. had an annual average earning growth of 32.1% over the past 10 years. GuruFocus rated ITT Educational Services Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
Three Months Ended June 30, 2009 Compared with Three Months Ended June 30, 2008. Revenue increased $70.7 million, or 28.7%, to $317.1 million in the three months ended June 30, 2009 compared to $246.4 million in the three months ended June 30, 2008. The primary factors that contributed to this increase included, in order of significance:Cost of educational services increased $15.6 million, or 16.4%, to $110.8 million in the three months ended June 30, 2009 compared to $95.2 million in the three months ended June 30, 2008. The primary factors that contributed to this increase included, in order of significance:
Student services and administrative expenses increased $14.1 million, or 18.9%, to $89.0 million in the three months ended June 30, 2009 compared to $74.9 million in the three months ended June 30, 2008. The principal causes of this increase included, in order of significance:
Operating income increased $41.0 million, or 53.7%, to $117.3 million in the three months ended June 30, 2009 compared to $76.3 million in the three months ended June 30, 2008, 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 37.0% in the three months ended June 30, 2009 compared to 31.0% in the three months ended June 30, 2008, as a result of the impact of the factors discussed above.
Interest income decreased $0.3 million, or 25.4%, to $0.9 million in the three months ended June 30, 2009 compared to $1.2 million in the three months ended June 30, 2008, primarily due to a decrease in investment returns in the overall market. Interest expense decreased $0.9 million, or 80.3%, to $0.2 million in the three months ended June 30, 2009 compared to $1.1 million in the three months ended June 30, 2008, primarily due to a decrease in the effective interest rate on our revolving credit facilities.
Six Months Ended June 30, 2009 Compared with Six Months Ended June 30, 2008. Revenue increased $123.9 million, or 25.7%, to $605.2 million in the six months ended June 30, 2009 compared to $481.3 million in the six months ended June 30, 2008. The primary factors that contributed to this increase included, in order of significance:
Read the The complete ReportESI is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP.
