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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based ITT Educational Services Inc. on Friday reported a smaller quarterly profit and shrinking revenue amid dwindling student enrollment at its ITT Technical Institute campuses.
The for-profit educator said it made a profit of $4.1 million, or 17 cents per share in the quarter ended March 31, compared with profit of $10.4 million, or 44 cents, in the same quarter of 2015.
Revenue in the latest quarter was $191.5 million, down almost 17 percent from the $230 million the company brought in a year ago.
Total student enrollment decreased 15.4 percent, to 43,293, as of March 31, compared with 51,201 as of March 31, 2015.
New-student enrollment in the first quarter of 2016 dropped 16.4 percent, to 11,788, compared with 14,104 in the same period in 2015.
“We were disappointed with our new-student enrollment results for the first quarter of 2016 and continue to experience a challenging new-student recruitment environment,” ITT Educational CEO Kevin Modany said in written remarks. “As of April 24, 2016, new student applications for academic periods that begin in the second quarter of 2016 were down 20 percent compared to the same period in the prior year, suggesting to us that we will experience similar year-over-year declines in new student enrollment in the second quarter of 2016.”
The for-profit education industry has struggled in recent years amid tighter scrutiny from the Obama administration.
ITT operates ITT Technical Institute campuses in 39 states.
The company's shares fell 10 percent, to $2.18 each, in early trading Friday after the earnings announcement. A year ago, they were trading at $6.21.
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