* Change in student sign-ups for 2013 to be between 5 pct
rise or 5 pct fall
* To exceed cost savings plan of $50 million in 2013
* Shares rise more than 11 percent
Jan 24 For-profit education provider ITT
Educational Services Inc said student enrollments could
increase in 2013 for the first time in nearly three years,
helped by a new scholarship program that was attracting more
ITT's shares rose more than 11 percent to $15.94 on the New
York Stock Exchange on Thursday afternoon. They earlier fell 10
percent, after the company reported a quarterly loss.
The rate of change in new student enrollments would be
between a 5 percent rise and a 5 percent decline, ITT said.
The company, introduced the new program in fourth quarter at
24 campuses, Chief Executive Kevin Modany said on a
post-earnings conference call.
Students enrollments at the campuses testing the program -
which effectively reduces tuition fee for students - fell only 6
percent compared with a 13 percent decline in non-participating
colleges, Modany said.
ITT plans to expand the program to 101 more campuses from
March, and to all campuses by the end the year.
Since the program reduces students' need for loans, ITT will
discontinue efforts to secure additional private student loan
programs for students, the CEO said.
He also said the company will likely exceed its $50 million
cost-savings plans in 2013.
The for-profit education industry has struggled to attract
students after a U.S. government scrutiny revealed high student
debt and low graduation rates.
ITT, which runs the ITT technical institutes and Daniel
Webster College, said new enrollments fell 11 percent in the
fourth quarter - the tenth straight quarter of enrollment
The Carmel, Indiana-based company, whose stock has fallen
more than 75 percent over the last year, reported a net loss of
$9.5 million, or 41 cents per share, compared with net profit of
$76.0 million, or $2.87 per share, a year earlier.
Revenue fell 18 percent to $300.8 million.
ITT said it aims to earn between $3.50 and $4.00 per share
for 2013, while analysts on average were expecting $4.53 per
share, according to Thomson Reuters I/B/E/S.