CARMEL, Ind., Oct. 20, 2015 /PRNewswire/ -- Nicole Elam,
vice president of government relations and external affairs, issued
the following statement today:
"Yesterday (October 19, 2015), ITT
Educational Services, Inc. received a letter from the U.S.
Department of Education identifying certain past procedural
deficiencies and requiring certain additional reporting, procedures
and remedial actions. We are complying with the Department's
requirements and are already in the process of implementing
measures to fully address the related reporting and administrative
matters. While the additional requirements will result in an
increased administrative burden, the Company does not believe they
will have a material negative impact on our financial results, or
in any manner affect the timely award of financial aid to eligible
students or the operation of our campuses."
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 failure of the company to
receive the expected tax refund, including in the amount or within
the time period expected; the impact of the company's late filings
with the U.S. Securities and Exchange Commission ("SEC"); the
impact of adverse actions by the U.S. Department of Education
("ED") related to the action by the SEC against the company and the
company's failure to submit its 2013 audited financial statements
and 2013 compliance audits with 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; the company's inability to remediate material
weaknesses, or the discovery of additional material weaknesses, in
the company's internal control over financial reporting; 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 SEC. The company undertakes no obligation to update or
revise any forward-looking information, whether as a result of new
information, future developments or otherwise.
About ITT Educational Services, Inc.
ITT Educational
Services, Inc. (NYSE: ESI) provides technology-oriented
undergraduate and graduate degree programs through its
accredited 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 130 ITT Technical Institutes
and Daniel Webster College. ITT/ESI
serves approximately 47,000 students at its campuses in 39 states
and online. Through the Center for Professional Development @
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.
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SOURCE ITT Educational Services, Inc.