ITT Technical Institutes Seek Reinstatement by Veteran's Agency Citing Factual Errors

May 20, 2015, 17:21 ET from ITT Educational Services, Inc.

CARMEL, Ind., May 20, 2015 /PRNewswire/ -- The ITT Technical Institutes are working closely with the California State Approving Agency for Veterans Education to reinstate their course offerings to veterans in the state citing a determination based on false facts.

Last week, the state agency abruptly disrupted service to students by suspending the schools' approved course offerings to more than 1,250 veterans at 15 California campuses.

"We strongly believe the basis for this suspension is false," said Gene Feichtner, president and chief operating officer of the ITT Technical Institutes.  The agency's action is based on a single Form 8-K filing to investors, which it claims reveals an inability to meet the required financial stability standards of the Accrediting Council for Independent Colleges and Schools.

The accrediting council has provided three separate letters to the agency to correct the confusion and to document that the ITT Technical Institutes are in full compliance. 

"The state's action does not reflect our current standing with the accrediting council," he said. "This was done without any notice or opportunity for us to correct their erroneous interpretation of our required 8-K filing to investors."

Information provided to students on the agency's website also cites ITT Educational Services, Inc., the owner and operator of the ITT Techs, failure to file audited financial statements with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Education as a basis to protect students.  However, the Company filed its 2013 audited financials with the SEC and is up to date on its filings with the Education Department. 

In March, the Company disclosed to investors that it intends to file its 2014 audited financial statements on or before May 31, 2015.  The Company is in compliance with the U.S. Department of Education as it does not require 2014 audited financial statements until June 30, 2015.

Feichtner noted, "The ITT Technical Institutes have provided all requested documentation to address what appears to be an unjust suspension." 

"We hope and expect to improve the communication with the agency in the future given our mutual desire to serve our veteran students and put their best interests first," Feichtner said.

"In the interim we remain keenly focused on the interests of our veteran students and their educational goals.  That focus has resulted in graduation rates for our veteran students that is nearly 40 percent higher than our non-veteran students and more than two and a half times greater than the average graduation rate for community colleges.  We are very proud of our work in serving the educational needs of our veterans and we look forward to maintaining that focus for years to come."

About ITT Educational Services, Inc.
ITT Educational Services, Inc. (NYSE: ESI) provides technology-oriented undergraduate and graduate degree programs through its accredited postsecondary institutions, 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 50,000 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.

SOURCE ITT Educational Services, Inc.



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