ITT Educational Services, Inc Q4 2008 Earnings Call Transcript

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2009-01-22 14:10:35.0

Tags: U.S. Bancorp Piper Jaffray Inc., Call Transcript, Earnings, Operational Accounting, Finance, Seeking Alpha, ITT Educational Services Inc.

Question-and-Answer Session

Operator

Thank you, ladies and gentlemen at this time we are conducting a question and answer session. (Operator Instructions). Our first question comes from Mark Marostica from Piper Jaffray. Please proceed with your question.

Mark Marostica - Piper Jaffray

Thank you and congratulations on the quarter.

Kevin Modany

Thank you Mark.

Mark Marostica - Piper Jaffray

My first question relates to the historic growth that you put up in the quarter and I am curious whether there was historic growth across all your schools of study or were there any schools that were incredibly strong and maybe others that were weaker and could you give us a sense how that played out?

Kevin Modany

Sure, we actually saw very strong response rates, conversion rates and starts across all six schools of study but one of them wholly sort of isolating in the last couple of calls of business, I would say if anyone of then was lagging a little bit it would be the business program but aside from that pretty evenly dispersed across all the other schools.

Mark Marostica - Piper Jaffray

Okay and as you look at your guidance 625 to 645 for ’09. What are you implying in terms of historic growth in that metric?

Kevin Modany

Well, we are not giving guidance at the start line we are not giving guidance at the revenue line and we talked quite a bit about our long-term expectations for historical growth, which should probably take in the 8% range on total enrollment and new start quite clinically. We have also said there are periods where we have performance above that and periods where we will be below that I would say that just with the dynamics that exist in the market place today this will be one of the series of time where you would expect to do a little better than that. We have taken all those variables into consideration and putting together the plan, but ultimately it leads to the 625 to 645 guidance.

Mark Marostica - Piper Jaffray

Okay and then I wanted to just touch on the graduation rates that you talked about placement rates I should say. In the past you have given us the forward looking metric on job orders I believe as the percentage of next six months graduates. Given a sense how that metric looks at the current time?

Kevin Modany

 

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