And after a four month delay and multiple allegations of fraud, double digit declines in enrollment and revenues, ITT Educational Services reported a magical $56 million turnaround. Despite no remarkable cost cutting, the company went from a $27 million loss in 2013 to a $29 million profit in 2014. Am I the only to ask how this "incredible" turnaround was possible?....................https://www.linkedin.com/pulse/could-itt-techs-short-term-gain-torpedo-deloitte-dahn-shaulis?trk=mp-author-card
11 replies (most recent on top)
Chocolate drippings? Are you kidding? More like bull droppings.
Those financial statements wreak of chocolate drippings...Pheewy!!
@Anonymous104966 4 ITT tech campuses closed in 2014 and 3 others were merged. Some are being down-sized. Overall impact far, far lower than the PEAKS consolidation.
@Anonymous104961, it's not just about loan consolidation. Several ITT campuses have been closed, consolidated, or merged. Does anyone have a list of those schools?
OP has completely misread the 10Ks here. 2013 took a hit from consolidation of the private loans. Look at:
http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=ESI
for a quick overview of net income 2011-2014.
2011 309.1M 2012 139.0M 2013 -27.0M 2014 29.3M
The trend is down overall so there is really no mystery about where the "increased profits" came from.
I am sure Modany is headed to jail. His boys will follow.
Yea right!!
2013 takes a major hit from the loan entity consolidations. In 2014 there is less of an effect. 2012 and 2014 probably give a better view of the trend.
I don't believe this for one moment. This company is dead and there is no reviving. Their closing is a matter of time. Who exactly are they kidding? Their enrollments are down and their profits are up? Only in Modany's world. He and his boys ( Gene and Barry) ruined the company.
Maybe Modany ave back some salary.....
Just joking. Maybe they all pulled dollars out of their asses the same way as they generate retention targets and pass rates before using those ridiculous numbers to justify firing chairs and deans and blocking adjuncts from teaching classes to maintain their quota system.
I'm sure its buried there in some magical paperwork line item that the auditing either didn't find yet or they intentionally lied to them about.