Profile: ITT Educational Services Inc (ESI.N)

ITT Educational Services, Inc. (ITT/ESI), incorporated in 1946, is a provider of postsecondary degree programs in the United States based on revenue and student enrollment. As of December 31, 2008, the Company offered master, bachelor and associate degree programs to approximately 62,000 students. As of December 31, 2008, it had 105 institutes and nine learning sites located in 37 states. All of its institutes are authorized by the applicable education authorities of the states, in which they operate, and are accredited by an accrediting commission recognized by the United States Department of Education (ED). During the year ended December 31, 2008, the Company began its operations at eight new institutes. As of December 31, 2008, the Company offered 33 degree programs in various fields schools of study: information technology (IT); electronics technology; drafting and design; business; criminal justice, and health sciences.

During the year ended December 31, 2008, the Company indirectly derived approximately 73% of its revenue determined on an accrual accounting basis (or 72% determined on a cash accounting basis as defined by the ED’s regulations) from the federal student financial aid programs under Title IV (the Title IV Programs) of the Higher Education Act of 1965, as amended (the HEA). During 2008, ITT/ESI also obtained approximately 10% of its revenue from internal student financing and approximately 8% from unaffiliated private education loan programs.

ITT/ESI designs its programs to help graduates prepare for careers in various fields involving their education by offering students a foundation in a variety of skills used in those fields. Graduates of its IT programs have obtained a variety of entry-level positions in various fields involving IT, such as network administration, technical support, network technology and systems technology. Graduates of its drafting and design programs have obtained a variety of entry-level positions in various fields involving drafting and design, such as computer-aided drafting, electrical and electronics drafting, mechanical drafting, architectural and construction drafting, civil drafting, interior design, landscape architecture and multimedia communications. Graduates of its electronics technology programs have obtained a variety of entry-level positions in various fields involving electronics, such as electronics product design and fabrication, communications, computer technology, industrial electronics, instrumentation, telecommunications and consumer electronics. Graduates of its business programs have obtained a variety of entry-level positions in various fields involving business, such as accounting, financial services, marketing and advertising and manufacturing. Graduates of its criminal justice programs have obtained a variety of entry-level positions in various fields involving criminal justice, such as corrections, security and policing, investigations and cyber security.

The Company generally organizes the academic schedule for programs of study offered at its institutes on the basis of four 12-week academic quarters in a calendar year, with new students beginning at the start of each academic quarter. Students taking a full-time course load can complete its associate degree programs in eight academic quarters, bachelor degree programs in 15 academic quarters and master degree program in seven academic quarters. It typically offers classes in residence programs in 3.5 to 5.5 hour sessions three days a week, Monday through Saturday, with all program courses taught entirely or partially in residence and two to three days a week, Monday through Saturday, with certain program courses taught entirely or partially online over the Internet most academic quarters.