QUARTERLY FINANCIAL RESULTS

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL RESULTS

ITT EDUCATIONAL SERVICES, INC.

QUARTERLY FINANCIAL RESULTS

FOR 2014 AND 2013

(Amounts in thousands, except per share data)

(Unaudited)

	Three Months Ended
	March 31			June 30			Sept 30			Dec 31			Year
2014
Revenue	$	237,923		$	238,096		$	242,561		$	243,203		$	961,783
Cost of educational services		120,115			116,276			117,539			106,852			460,782
Student services and administrative expenses		99,238			97,547			100,440			91,891			389,116
Goodwill and asset impairment											2,454			2,454
Legal and professional fees related to certain lawsuits, investigations and accounting matters		5,547			8,380			11,269			6,812			32,008
Loss related to loan program guarantees		0			0			2,019			0			2,019
Provision for private education loan losses		0			9,071			4,511			568			14,150
Operating income		13,023			6,822			6,783			34,626			61,254
Gain on consolidation of variable interest entities		0			0			16,631			0			16,631
Interest income		19			15			17			14			65
Interest (expense)		(6,901	)		(6,263	)		(5,831	)		(9,305	)		(28,300	)
Income before provision for income taxes		6,141			574			17,600			25,335			49,650
Provision for income taxes		2,519			182			7,278			10,418			20,397
Net income	$	3,622		$	392		$	10,322		$	14,917		$	29,253
Earnings per share:
Basic	$	0.15		$	0.02		$	0.44		$	0.64		$	1.25
Diluted	$	0.15		$	0.02		$	0.44		$	0.63		$	1.23
2013
Revenue	$	285,062		$	260,459		$	259,617		$	267,173		$	1,072,311
Cost of educational services		124,176			123,541			120,204			118,432			486,353
Student services and administrative expenses		101,721			98,335			96,182			101,303			397,541
Legal and professional fees related to certain lawsuits, investigations and accounting matters		1,500			213			2,089			3,121			6,923
Loss related to loan program guarantees		3,803			0			4,826			82,335			90,964
Provision for PEAKS Trust student loan losses		0			4,319			16,382			8,648			29,349
Operating income (loss)		53,862			34,051			19,934			(46,666	)		61,181
(Loss) on consolidation of variable interest entities		(73,248	)		0			0			0			(73,248	)
Interest income		34			25			16			33			108
Interest (expense)		(3,574	)		(7,369	)		(7,190	)		(7,144	)		(25,277	)
Income (loss) before provision for income taxes		(22,926	)		26,707			12,760			(53,777	)		(37,236	)
Provision (benefit) for income taxes		(5,655	)		6,503			3,336			(14,396	)		(10,212	)
Net income (loss)	$	(17,271	)	$	20,204		$	9,424		$	(39,381	)	$	(27,024	)
Earnings (loss) per share:
Basic	$	(0.74	)	$	0.86		$	0.40		$	(1.68	)	$	(1.15	)
Diluted	$	(0.74	)	$	0.86		$	0.40		$	(1.68	)	$	(1.15	)