Approximately 250,000 students have graduated from one of Universal Technical Institute's 14 campuses located across Arizona, California, Florida, Illinois, Michigan, North Carolina, Pennsylvania, New Jersey, and Texas. This is a BETA experience. if you are a super douchebag you will fit in just fine with students and instructors alike." The company will provide further commentary on the Concorde acquisition during the Second Quarter Fiscal Year 2022 Results conference call it will be hosting tomorrow at 4:30 pm Eastern Daylight Time. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? [20] In Spring of 2022, UTI opened the Austin, Texas campus. These forward-looking statements which address Universal Technical Institute, Inc.'s ("UTI") expected future business and financial performance may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. "This transaction marks a major milestone in executing our strategy as we expand the scope of our skilled education programs to serve students' varied workforce-training needs and drive growth for the company. 1.7 million+ Total technician employment expected nationally by 203138 The numbers dont support this story. These days I invest only for myself while continuing to write on a variety of financial and economic topics. Enrollment has been declining since then. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. The other will continue as Universal Technical Institute, which also includes brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. UTI has among the worst in the industry. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. This scenario assumes a consistent level of profitability as the company achieved over the past two years, as UTI would continue to earn its current 6% return on invested capital (ROIC). Growing Distrust Deters Potential Students. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. UTI shares have fallen to under $10 since the buyback began, which indicates that the share repurchase program has destroyed over 20% of the $8.8 million purchased, or around $2 million in value. Since 1965, more than 230,000 students have graduated from UTI's . A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. Further information on these and other potential factors that could affect the financial results or condition may be found in the company's filings with the SEC. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. whale wars crew death dropping out of universal technical institute. While UTI has no debt on its balance sheet, it has operating lease commitments with a present value of over $142 million, or an alarming 60% of the companys market value. "We take the responsibility of becoming one of this country's leading workforce solutions providers seriously, and entering the healthcare space allows us to help even more students and support employers as they seek to solve some of their toughest workforce-related challenges. Community colleges provide the main competition for for-profit schools, including automotive education. Universal Technical Institute (UTI: $12/share), already down 30% in 2014, is likely to drop another 50% as investors factor in its unreasonably high valuation, steadily declining enrollment and . The company recently doubled its application fee to attract higher quality applicants, which caused the number of applicants to fall 27%. Universal Technical Institute's campuses are accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), while its employer-aligned technical training programs are offered under four brands:Universal Technical Institute, Motorcycle Mechanics Institute / Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. Universal Technical Institute welcomes General Education Diploma students. Posted on December 13, 2021 by December 13, 2021 by Find the campus that matches your career goals here. Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. Any forward-looking statements made by UTI in this press release are based only on information currently available to UTI and speak only as of the date on which it is made. UTI settled out of court with the employee. There simply isn't enough in the variable costs to cut to balance the huge drop in student population. High costs, declining revenue and low free cash flow make this company a huge risk. In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. click here to see if those insiders have been buying or selling. For more information about cookies you can visit https://www.allaboutcookies.org. [9] Jerome Grant was named CEO in 2019.[10]. As long as the company is focused on that, the details aren't that important. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. These forward-looking statements which addressUniversal Technical Institute, Inc.'s ("UTI") expected future business and financial performance may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. As it is, it has the same old manager in a declining industry that must come up with new ideas. I also cant see any reason why another firm would buy out UTI. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. Every investor in Universal Technical Institute, Inc. (NYSE:UTI) should be aware of the most powerful shareholder groups. One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. UTI expressly disclaims any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions, or circumstances, or otherwise. We won't find out until next quarter whether or not that has actually translated into new student applications or not. Looking at the last year, the company burnt through US$36m. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. The Company is comprised of two divisions: UTI and Concorde Career Colleges. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. 43) For Bus and Truck Mechanics and Diesel Engine Specialists, the U.S. Bureau of Labor Statistics projects an annual average of 28,500 job openings between 2021 and 2031. 1Source: U.S. Bureau of Labor Statistics, https://www.bls.gov/ooh/healthcare/home.htm, viewed May 2, 2022.2 Encompasses 12 UTI campuses, 2 MIAT campuses, and 17 Concorde campuses post-close. At the time of its initial public offering, UTI carried a debt load of $57.3 million. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. You can click here to see if those insiders have been buying or selling. For the first half growth came in at 17 percent. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. That's unlikely to happen, and there's little in the way of it continuing its free fall; although a new CEO would probably give the company a temporary boost, and if the right person, may even help to generate sustainable growth for the company. Sign up here. 7) Some programs may require longer than one year to complete. In the latest earnings call of the company McWaters also talked about the implementation of a predictive model and other things, but I don't see that as relevant because it's as simple as whether or not new students are coming on board or not. PHOENIX, July 19, 2021 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of transportation technician training, today announced that it plans to report results for the third quarter of fiscal 2021 ended June 30, 2021 on Monday, August 2, 2021, after market close. I understand that if I do submit this form, I may unsubscribe within marketing emails or opt-out of text messages at any time by replying STOP. Standard text message and data rates may apply.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. Google Even with the attempt to lower its variable costs, Universal Technical projects its net income and operating margin to contract in comparison to previous years during the second half of 2013. Concorde ended 2021 with approximately 7,400 students and delivered approximately. Those numbers are likely to fall. [4], While Universal Technical Institute in the past had limited access to military bases for student recruitment, as of 2021 it operates BMW MSTEP at Ft. Bragg, N.C.[5] and Marine Corps Base Camp Pendleton, Calif.,[6] and Premier Truck Group Technician Training at Ft. Bliss in Texas. Even so, it's the converting of applications to students that counts, and the jury is still out on whether or not that will be the outcome. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. Forward-looking statements are neither historical facts nor assurances of future performance. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. Whether or not UTI is truly guilty of any wrongdoing, the presence of these allegations against it and for-profit schools, in general, serves as a deterrent to potential students. Sam McBride and Andr Rouillard contributed to this report. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. Many institutions measure their performance against an index that approximates the local market. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure should not be considered to be an alternative to net income (loss), or any other measures derived in accordance with GAAP as a measure of operating performance or profitability. 2023 Universal Technical Institute, Inc. All rights reserved. "Their core focus of delivering strong student and employment outcomes aligns closely with Concorde's values of being student-centered, community-based, and achievement-driven. Among the reasons stated by UTI CEO Kimberly J. McWaters for the underperformance are "changes in consumer perception and behaviors regarding education and the lingering effects of regulatory change, including increased competition for higher-quality students." Along with the weak revenue is the high cost structure of the company, much of which is fixed. It looks like hedge funds own 14% of Universal Technical Institute shares. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. UTI has relationships with manufacturers of more than 35 leading brands. You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. Forward-looking statements are neither historical facts nor assurances of future performance. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. These companies may use this data to serve you more relevant ads as you browse the internet. UTI expressly disclaims any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions, or circumstances, or otherwise. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. Find out what some of our graduates are doing today in pursuing their successful careers. Important factors that could affect UTI's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or modified campuses or instruction, potential increased competition, impacts related to the COVID-19 pandemic, changes in demand for the programs UTI offers, increased investment in management and capital resources, the effectiveness of UTI student recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic and political conditions, the adoption of new accounting standards, and other risks that are described from time to time in UTI's public filings. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. Please disable your ad-blocker and refresh. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. Concorde Career Colleges' 20 student-focused academic programs and personalized support prepare graduates for in-demand careers in nursing, dental, respiratory, diagnostic, and other health care roles. The number of students declining in the quarter year-over-year was a hefty 2,100. The scholarship growth angle is a good one, but unless it includes a large number of students it won't do much to change the performance of UTI over the long term. 1) UTI is an educational institution and cannot guarantee employment or salary. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. Rated 1.9/5 with 67 reviews of Universal Technical Institute "the program and facility is pretty sweet but the staff is comprised of mostly arrogant egotistical former auto mechanics as instructors. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. Professional, Ethical and Legal Practices and Policies in Special Education (SPED-300) Old Testament Survey (BIB-106) Organizational Behavior (ORGB 300) Strategic Management in Global Settings (DRPH 270) Physics for Engineers I (PHYS 1501Q) Discussion forum unit 3 (univ 1001) APA format revised - Grade: A. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. UTIs management blames the companys issues on the poor economy. Instead, they are based only on UTI's current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. What type of Diploma or Certificate will/did you obtain? This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. We have 9 programs at 13 locations. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. Additionally, Universal Technical Institute is opening new campuses in Miramar, Florida., and Austin, Texas and is further expanding its welding programs to 2 additional locations during the fiscal year. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. That means it had a cash runway of about 2.2 years as of March 2021 . We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI cannot guarantee employment or salary. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). Previous guidance from UTI was confirmed in its latest earnings report, with the company expecting revenues to drop into the high single-digits in 2013. Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. Important factors that could affect UTI's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or modified campuses or instruction, potential increased competition, impacts related to the COVID-19 pandemic, changes in demand for the programs UTI offers, increased investment in management and capital resources, the effectiveness of UTI student recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic and political conditions, the adoption of new accounting standards, and other risks that are described from time to time in UTI's public filings. So while increasing inquiries is a good strategy, it's unclear and very uncertain with the current headwinds whether or not that can be improved in any way. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. This data contradicts McWaters explanation for the companys recent underperformance. UTI is an educational institution and cannot guarantee employment or salary. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. I understand that if I do submit this form, I may unsubscribe within marketing emails or opt-out of text messages at any time by replying STOP. Standard text message and data rates may apply.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. Luckily, you can check this free report showing analyst forecasts for its future. To that end the company hasn't done too badly, as it has been able to cut advertising costs by 8 percent while boosting the number of people checking out what the school has to offer. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. Universal Technical Institute, Inc. (UTI). All they want is, Brianna W. said: I'm currently enrolled at Platt College! However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. In 1998, it opened a campus in Rancho Cucamonga, California. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am a former investment advisor and owner of several businesses. If it is, UTI has a future, if not, the share price will continue to take a big hit. Positions Universal Technical Institute to Seize Opportunity in High-Growth, High-Demand Healthcare Education Market, Significantly Accelerates Ongoing Growth and Diversification Efforts in Conjunction with Existing Initiatives to Meet Increasing Demand from Employers and Students, Universal Technical Institute and Concorde Career Colleges Together Now Serve 20,000+ Students Across 14 States and 33Locations with Significant Opportunitiesto Expand to Meet Varied Workforce-Training Needs, Concorde CEO Jami Frazier Joins the Universal Technical Institute Senior Leadership Team as President of the Healthcare Division. This suggests some credibility amongst professional investors. We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. With the addition of the Concorde brand and its portfolio of programs and campuses, Universal Technical Institute will significantly expand upon its already announced growth and diversification plans. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. That included fewer students applying and a 60-basis-point drop in the show rate. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? The fall in revenue was directly tied to the decline in students attending the school. This demographic is resistant to high costs and debt. In 1988 UTI opened their Lisle, Illinois, campus. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. 8-2 Project Three Systems Thinking. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. Universal Technical Institute was founded in 1965. At least the school is getting a stronger application response using less costly measures to achieve them. Keeping things as they are won't cut it. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. UTI has stated in its most recent conference call that it expects enrollment to continue to decline for the next several quarters, and this decline may accelerate if the tuition increases remain. Over the last 12 months (TTM) the gross margin is 48.5 percent, operating margin is 3.6 percent, and net margin is 2.0 percent. They aren't always helpful and tuition way overpriced. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. UTI is an educational institution and cannot guarantee employment or salary. The California Consumer Privacy Act of 2018 (CCPA) provides California residents with specific rights regarding their personal information, including the right to opt out of any sale of such information. UTI operates 16 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. Of course, keep in mind that there are other factors to consider, too. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. Examples of forward-looking statements include, among others, statements regarding (1) UTI's belief that the acquisition will serve as a cornerstone for its key future growth and diversification efforts; (2) UTI's ability to integrate Concorde's healthcare programs into its portfolio of educational offerings; (3) UTI's anticipated expansion efforts; (4) UTI's expectation of increasing shareholder value; and (5) UTI's expectation of accelerating its revenue, profitability and cash flow over the next several years. That 4% dividend yield is probably not comforting any investor who bought UTI at the beginning of the year and has lost 30% of their investment. information about your activities on our website, which is then associated with your browser, device or online identifier. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". Shareholders would probably be interested to learn that insiders own shares in Universal Technical Institute, Inc.. As individuals, the insiders collectively own US$8.6m worth of the US$238m company. The usual mantra that it'll take time to implement the measures to combat the changing market conditions isn't believable with McWaters, who has seen the share price and value of the company erode exponentially under her 10-year watch.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. Google Even with the attempt to lower its variable costs, Universal Technical projects its net income and operating margin to contract in comparison to previous years during the second half of 2013. Concorde ended 2021 with approximately 7,400 students and delivered approximately. Those numbers are likely to fall. [4], While Universal Technical Institute in the past had limited access to military bases for student recruitment, as of 2021 it operates BMW MSTEP at Ft. Bragg, N.C.[5] and Marine Corps Base Camp Pendleton, Calif.,[6] and Premier Truck Group Technician Training at Ft. Bliss in Texas. Even so, it's the converting of applications to students that counts, and the jury is still out on whether or not that will be the outcome. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. Forward-looking statements are neither historical facts nor assurances of future performance. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. Whether or not UTI is truly guilty of any wrongdoing, the presence of these allegations against it and for-profit schools, in general, serves as a deterrent to potential students. Sam McBride and Andr Rouillard contributed to this report. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. Many institutions measure their performance against an index that approximates the local market. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure should not be considered to be an alternative to net income (loss), or any other measures derived in accordance with GAAP as a measure of operating performance or profitability. 2023 Universal Technical Institute, Inc. All rights reserved. "Their core focus of delivering strong student and employment outcomes aligns closely with Concorde's values of being student-centered, community-based, and achievement-driven. Among the reasons stated by UTI CEO Kimberly J. McWaters for the underperformance are "changes in consumer perception and behaviors regarding education and the lingering effects of regulatory change, including increased competition for higher-quality students." Along with the weak revenue is the high cost structure of the company, much of which is fixed. It looks like hedge funds own 14% of Universal Technical Institute shares. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. UTI has relationships with manufacturers of more than 35 leading brands. You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. Forward-looking statements are neither historical facts nor assurances of future performance. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. These companies may use this data to serve you more relevant ads as you browse the internet. UTI expressly disclaims any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions, or circumstances, or otherwise. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. Find out what some of our graduates are doing today in pursuing their successful careers. Important factors that could affect UTI's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or modified campuses or instruction, potential increased competition, impacts related to the COVID-19 pandemic, changes in demand for the programs UTI offers, increased investment in management and capital resources, the effectiveness of UTI student recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic and political conditions, the adoption of new accounting standards, and other risks that are described from time to time in UTI's public filings. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. Please disable your ad-blocker and refresh. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. Concorde Career Colleges' 20 student-focused academic programs and personalized support prepare graduates for in-demand careers in nursing, dental, respiratory, diagnostic, and other health care roles. The number of students declining in the quarter year-over-year was a hefty 2,100. The scholarship growth angle is a good one, but unless it includes a large number of students it won't do much to change the performance of UTI over the long term. 1) UTI is an educational institution and cannot guarantee employment or salary. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. Rated 1.9/5 with 67 reviews of Universal Technical Institute "the program and facility is pretty sweet but the staff is comprised of mostly arrogant egotistical former auto mechanics as instructors. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. Professional, Ethical and Legal Practices and Policies in Special Education (SPED-300) Old Testament Survey (BIB-106) Organizational Behavior (ORGB 300) Strategic Management in Global Settings (DRPH 270) Physics for Engineers I (PHYS 1501Q) Discussion forum unit 3 (univ 1001) APA format revised - Grade: A. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. UTIs management blames the companys issues on the poor economy. Instead, they are based only on UTI's current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. What type of Diploma or Certificate will/did you obtain? This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. We have 9 programs at 13 locations. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. Additionally, Universal Technical Institute is opening new campuses in Miramar, Florida., and Austin, Texas and is further expanding its welding programs to 2 additional locations during the fiscal year. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. That means it had a cash runway of about 2.2 years as of March 2021 . We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI cannot guarantee employment or salary. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). Previous guidance from UTI was confirmed in its latest earnings report, with the company expecting revenues to drop into the high single-digits in 2013. Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. Important factors that could affect UTI's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or modified campuses or instruction, potential increased competition, impacts related to the COVID-19 pandemic, changes in demand for the programs UTI offers, increased investment in management and capital resources, the effectiveness of UTI student recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic and political conditions, the adoption of new accounting standards, and other risks that are described from time to time in UTI's public filings. So while increasing inquiries is a good strategy, it's unclear and very uncertain with the current headwinds whether or not that can be improved in any way. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. This data contradicts McWaters explanation for the companys recent underperformance. UTI is an educational institution and cannot guarantee employment or salary. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. I understand that if I do submit this form, I may unsubscribe within marketing emails or opt-out of text messages at any time by replying STOP. Standard text message and data rates may apply.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. Luckily, you can check this free report showing analyst forecasts for its future. To that end the company hasn't done too badly, as it has been able to cut advertising costs by 8 percent while boosting the number of people checking out what the school has to offer. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. Universal Technical Institute, Inc. (UTI). All they want is, Brianna W. said: I'm currently enrolled at Platt College! However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. In 1998, it opened a campus in Rancho Cucamonga, California. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I am a former investment advisor and owner of several businesses. If it is, UTI has a future, if not, the share price will continue to take a big hit. Positions Universal Technical Institute to Seize Opportunity in High-Growth, High-Demand Healthcare Education Market, Significantly Accelerates Ongoing Growth and Diversification Efforts in Conjunction with Existing Initiatives to Meet Increasing Demand from Employers and Students, Universal Technical Institute and Concorde Career Colleges Together Now Serve 20,000+ Students Across 14 States and 33Locations with Significant Opportunitiesto Expand to Meet Varied Workforce-Training Needs, Concorde CEO Jami Frazier Joins the Universal Technical Institute Senior Leadership Team as President of the Healthcare Division. This suggests some credibility amongst professional investors. We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. With the addition of the Concorde brand and its portfolio of programs and campuses, Universal Technical Institute will significantly expand upon its already announced growth and diversification plans. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. That included fewer students applying and a 60-basis-point drop in the show rate. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? The fall in revenue was directly tied to the decline in students attending the school. This demographic is resistant to high costs and debt. In 1988 UTI opened their Lisle, Illinois, campus. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. 8-2 Project Three Systems Thinking. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. Universal Technical Institute was founded in 1965. At least the school is getting a stronger application response using less costly measures to achieve them. Keeping things as they are won't cut it. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. UTI has stated in its most recent conference call that it expects enrollment to continue to decline for the next several quarters, and this decline may accelerate if the tuition increases remain. Over the last 12 months (TTM) the gross margin is 48.5 percent, operating margin is 3.6 percent, and net margin is 2.0 percent. They aren't always helpful and tuition way overpriced. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. UTI is an educational institution and cannot guarantee employment or salary. The California Consumer Privacy Act of 2018 (CCPA) provides California residents with specific rights regarding their personal information, including the right to opt out of any sale of such information. UTI operates 16 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. Of course, keep in mind that there are other factors to consider, too. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. Examples of forward-looking statements include, among others, statements regarding (1) UTI's belief that the acquisition will serve as a cornerstone for its key future growth and diversification efforts; (2) UTI's ability to integrate Concorde's healthcare programs into its portfolio of educational offerings; (3) UTI's anticipated expansion efforts; (4) UTI's expectation of increasing shareholder value; and (5) UTI's expectation of accelerating its revenue, profitability and cash flow over the next several years. That 4% dividend yield is probably not comforting any investor who bought UTI at the beginning of the year and has lost 30% of their investment. information about your activities on our website, which is then associated with your browser, device or online identifier. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". Shareholders would probably be interested to learn that insiders own shares in Universal Technical Institute, Inc.. As individuals, the insiders collectively own US$8.6m worth of the US$238m company. The usual mantra that it'll take time to implement the measures to combat the changing market conditions isn't believable with McWaters, who has seen the share price and value of the company erode exponentially under her 10-year watch.