CARMEL, Ind., April 29, 2015 /PRNewswire/ -- ITT Educational
Services, Inc. (NYSE: ESI), today announced that Daniel M. Fitzpatrick notified the Company of
his plan to retire from his positions of Executive Vice President
and Chief Financial Officer of the Company. Following Mr.
Fitzpatrick's notice, the Company entered into a letter agreement
with Mr. Fitzpatrick on April 29,
2015, pursuant to which Mr. Fitzpatrick will remain in his
current positions until October 29,
2015 (the "Transition Period"). The Company may extend the
Transition Period by up to four months and may terminate it at any
time upon notice to Mr. Fitzpatrick. In addition, during the
Transition Period, the Company is permitted to change Mr.
Fitzpatrick's role to that of Senior Advisor. It is expected that
Mr. Fitzpatrick will become a consultant to the Company for a
period of 18 months following the Transition Period. Mr.
Fitzpatrick has served as the Company's Chief Financial Officer
since 2005.
Kevin M. Modany, the Company's
Chief Executive Officer, stated: "I would like to sincerely thank
Dan on behalf of the entire organization for his remarkable
dedication and commitment to the organization and for his strong
work ethic. Dan's consistent and unwavering focus on the best
interests of our students, employees and institution as a whole,
above all else, has been inspiring to all of us who have worked
with him over the past decade. While we will miss his material
contributions to the organization, we wish him and his family
well."
John E. Dean, the Executive
Chairman of the Board, added: "On behalf of the entire Board, we
thank Dan for his significant dedication and contributions to the
Company during his 10 year tenure. Dan's tireless efforts on
the Company's behalf are truly appreciated. We are also
grateful for Dan's commitment to complete the significant projects
on which he is currently working and to assist with the search for
his replacement."
The Company also announced that, effective April 29, 2015, the Company's Board of Directors
elected C. David Brown to serve as a
director on the Company's Board of Directors. Mr. Brown, age 63,
has been Chairman of Broad and Cassel, a law firm based in
Florida, since March 2000. From 1989 until March 2000, he was Managing Partner of the
Orlando office of the firm. Mr.
Brown joined the firm in 1980. Mr. Brown is the immediate
past Chairman of the Board of Trustees for the University of Florida. He is also a member of
the board of directors of CVS Health Corporation, Rayonier Advanced
Materials Inc., a leading specialty cellulose production company,
and Orlando Health, a major health care provider serving
Florida.
On behalf of the Board, Samuel L.
Odle, the Chairman of the Nominating and Corporate
Governance Committee, stated, "We are fortunate that Mr. Brown has
agreed to serve on the Company's Board of Directors, and we look
forward to working with him going forward."
In addition, the Company announced that on April 28, 2015, the Company and Mr. Modany
entered into an amendment to the letter agreement between Mr.
Modany and the Company dated August 4,
2014, pursuant to which the parties agreed to extend the
time period during which Mr. Modany would remain as an employee of
the Company to May 29,
2015.
The Company also reported the following select enrollment
information for the three months ended March
31, 2015 and 2014:
Enrollment Data as
of and for the Three Months Ended March 31st, Unless
Otherwise Indicated
|
|
|
|
2015
|
|
2014
|
|
(Decrease)
|
|
|
|
|
|
|
|
New Student
Enrollment(A)
|
|
14,104
|
|
16,746
|
|
(15.8)%
|
Total Student
Enrollment as of March 31st (A)
|
|
51,201
|
|
57,125
|
|
(10.4)%
|
Persistence Rate as
of March 31st (A) (B)
|
|
69.2%
|
|
70.2%
|
|
(100) basis
points
|
_____________
|
(A)
Reflects enrollment and persistence information for students in
degree or diploma programs of study offered by an ITT Technical
Institute or Daniel Webster College, and excludes students in
non-degree, short-term training programs.
|
(B)
Represents the number of Continuing Students in the academic term,
divided by the Total Student Enrollment in the immediately
preceding academic term.
|
ITT Educational Services, Inc. provides accredited,
technology-oriented undergraduate and graduate degree programs
through its ITT Technical Institutes and Daniel Webster College to help students develop
skills and knowledge that they can use to pursue career
opportunities in a variety of fields. It owns and operates
more than 135 ITT Technical Institutes and Daniel Webster College. ITT/ESI serves more
than 50,000 students at its campuses in 39 states and online.
Through the Center for Professional Development at ITT Technical Institute, ITT/ESI provides
short-term information technology and business learning solutions
for career advancers and other professionals. Headquartered in
Carmel, IN, ITT/ESI has been
actively involved in the higher education community since 1969 and
can be found online at www.ittesi.com.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act. Forward-looking statements are made based on the
current expectations and beliefs of the company's management
concerning future developments and their potential effect on the
company. The company cannot assure you that future developments
affecting the company will be those anticipated by its management.
These forward-looking statements involve a number of risks and
uncertainties. Among the factors that could cause actual results to
differ materially are the following: the impact of the company's
late filings with the SEC, including the 2014 Form 10-K; the impact
of the adverse actions by the U.S. Department of Education (the
"ED") related to the company's failure to submit its 2013 audited
financial statements and 2013 compliance audits with the ED by the
due date, and any failure to submit its 2014 audited financial
statements and 2014 compliance audits to the ED by the due date;
the impact of the consolidation of variable interest entities on
the company and the regulations, requirements and obligations that
it is subject to; the inability to obtain any required amendments
or waivers of noncompliance with covenants under the company's
financing agreement; actions by the New York Stock Exchange to
delist the company's common stock; the company's inability to
remediate material weaknesses, or the discovery of additional
material weaknesses, in the company's internal control over
financial reporting; issues related to the restatement of the
company's financial statements for the first three quarters of
2013; the company's exposure under its guarantees related to
private student loan programs; the outcome of litigation,
investigations and claims against the company; the effects of the
cross-default provisions in the company's financing agreement;
changes in federal and state governmental laws and regulations with
respect to education and accreditation standards, or the
interpretation or enforcement of those laws and regulations,
including, but not limited to, the level of government funding for,
and the company's eligibility to participate in, student financial
aid programs utilized by the company's students; business
conditions in the postsecondary education industry and in the
general economy; the company's failure to comply with the extensive
education laws and regulations and accreditation standards that it
is subject to; effects of any change in ownership of the company
resulting in a change in control of the company, including, but not
limited to, the consequences of such changes on the accreditation
and federal and state regulation of its campuses; the company's
ability to implement its growth strategies; the company's ability
to retain or attract qualified employees to execute its business
and growth strategies; the company's failure to maintain or renew
required federal or state authorizations or accreditations of its
campuses or programs of study; receptivity of students and
employers to the company's existing program offerings and new
curricula; the company's ability to repay moneys it has borrowed;
the company's ability to collect internally funded financing from
its students; and other risks and uncertainties detailed from time
to time in the company's filings with the U.S. Securities and
Exchange Commission. The company undertakes no obligation to update
or revise any forward-looking information, whether as a result of
new information, future developments or otherwise.
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visit:http://www.prnewswire.com/news-releases/itt-educational-services-inc-announces-chief-financial-officer-transition-appointment-of-new-board-member-and-first-quarter-enrollment-results-300074657.html
SOURCE ITT Educational Services, Inc.