ITT Educational Services Inc. reported earnings results for the first quarter ended March 31, 2016. For the quarter, the company reported revenue decreased $38.5 million or 16.7% to $191.5 million compared to $230.0 million in the same period a year ago. The primary factor that contributed to this decrease was a 16.3% decrease in total student enrollment as of December 31, 2015, compared to December 31, 2014. Operating income decreased $13.4 million or 48.6% to $14.2 million compared to $27.6 million in the same period a year ago. Interest income was less than $0.1 million in the 3 months ended March 31, 2016 and March 31, 2015. Capital expenditures including expenditures for facility renovation, expansion and construction totaled $0.7 million compared to $0.9 million for the same period a year ago. These expenditures consisted primarily of classroom and laboratory equipment, such as computers and electronic equipment, classroom and office furniture, software and leasehold improvements.

The company revised earnings guidance for the year ending December 31, 2016. For the year, the company expects cash generated from operations will be sufficient for the company to satisfy their payments under the RSAs, working capital, loan repayment and capital expenditure requirements. Increasing their internal goal for earnings before interest, taxes, depreciation and amortization, or EBITDA, for the 12 months ended December 31, 2016, from the previous range of $50 million to $70 million to the revised range of $55 million to $75 million. Internal EBITDA goal includes an estimated $15 million in expenses for the full year of 2016.