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 agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. Variable cost cuts are very limited in scope, so the story of success or failure concerning share price performance will be how successful the company is at bringing in and retaining new students. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. Since the items excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures 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. 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. Special conditions may apply. There was an operating loss of $1.9 million for the quarter compared to operating income of $3 million in the same period last year. 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. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. 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. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. ", "We are excited about the opportunity to add Concorde and their healthcare programs to the Universal Technical Institute portfolio," said Universal Technical Institute's CFO Troy Anderson. Learning is hands on so no online classes to get it done. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. PHOENIX, Nov. 1, 2021 / PRNewswire / -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of trained technicians to the transportation industry, has completed its acquisition of MIAT College of Technology for a purchase price of $26 million in cash. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. 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. Management understands what must be done, but the overwhelming negative trend in the market will be hard to overcome no matter what changes are made. Special conditions may apply. Universal Technical Institute, Inc. (UTI). UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. 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. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). 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. About Universal Technical Institute, Inc. Universal Technical Institute (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand . Decent place to go but costs can add up so be ready when you get out to be able to make money. If you opt out, you may still see ads, but they will not be personalized based on your online activity. Concorde's programs, geographic footprint, solid leadership team, exemplary faculty and staff, diverse student body, tight industry alignment, and strong alumni network make this acquisition a great fit. On arecent conference call, CEO Kimberly McWaters offered the explanation that Lingering effects of the great recession have impacted consumer confidence in the job market and made them question the value of an education.. 1) UTI is an educational institution and cannot guarantee employment or salary. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. Growing Distrust Deters Potential Students. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Net income for the first half of fiscal 2013 is $2.6 million, or $0.11 per share, compared to $6.4 million or $0.26 per share year-over-year. 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. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization and adjusted for items not considered part of the company's normal recurring operations. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. The concern to me is the overall trend concerning education, which is one that the general population believes isn't worth the cost and accompanying huge debt associated with it. "We are pleased to welcome Concorde's leadership team, faculty and staff, and, most importantly its students, to the Company," said Universal Technical Institute Chief Executive Officer Jerome Grant. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. UTI has relationships with manufacturers of more than 35 leading brands. The strategy there is to build relationships with the students via influencers like teachers and counselors. The economy was in worse shape in 2010 than it is now, but during that year UTI had its highest enrollment and profits of the past decade. Jet delivery delays spark penalties battle, Davos 2023: Europe must seize catch-up chance - EU's Gentiloni, UPDATE 1-Lavrov says Russia and China alert to Western 'games', Tennis-McDonald joins American pile-on of Nadal. Adult students are even more of a challenge, as the value of education at the current price levels is being questioned as it never has been before, and that shows in the 17 percent drop in adult applications at UTI in the second quarter. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. Concerned about the content? Many institutions measure their performance against an index that approximates the local market. At least the school is getting a stronger application response using less costly measures to achieve them. [13][14] On Dec. 1, 2022,[15] UTI announced it had closed on the acquisition of Concorde Career Colleges, Inc., which was announced on May 3, 2022[16][17] UTI and Concorde Career Colleges together now serve 20,000+ students across 14 states and 33 locations. 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. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. Media ContactAlanna Vitucciavitucci@uti.edu480.710.6843, View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html. Most Programs Take Less Than a Year. Since the industry has very high fixed costs, student growth and retention is basically the entire game. Universal Technical Institute serves three student segments: high school, veterans, and adult. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. At the time of its initial public offering, UTI carried a debt load of $57.3 million. AboutUniversal Technical Institute, Inc. Universal Technical Institute(NYSE:UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand careers across a number of highly-skilled fields. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. You can click here to see if those insiders have been buying or selling. Its also becoming harder for UTI to reach prospective students in the first place. 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. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). 7) Some programs may require longer than one year to complete. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. "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. It looks like hedge funds own 14% of Universal Technical Institute shares. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. 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. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. Terms of the transaction have been disclosed in Universal Technical Institute's Form 8-K and completion of the acquisition will occur pending customary closing conditions and regulatory approvals. Concorde Career Colleges is a leading provider of healthcare education programs focused on preparing students for successful professions in the healthcare sector, which is expected to add about 2.6 million new jobs over the next decade due to attrition in the workforce along with an aging population that is expected to drive increased demand for healthcare services.1 The company offers diploma and degree programs across nursing, dental hygiene, and other direct patient care fields including physical therapy assistant and respiratory therapy, as well as allied health including medical and dental assisting and healthcare administration. I dont see any significant positive catalyst on the horizon that can reverse this downward trend. Classes start on average every 3 to 6 weeks. In the 3Q14 earnings conference call, McWaters acknowledged that Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. I only included this strategy segment to show the company is taking steps in that direction, and waiting to see the enrollment numbers is all that will matter. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. [7], On September 27, 2016, UTI reported that its president and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as president. "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. 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. The Company is comprised of two divisions: UTI and Concorde Career Colleges. institution andcannot guarantee employment or salary. You may opt-out by. 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. Job openings include openings due to net employment changes and net replacements. This may not be consistent with full year annual report figures. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. Universal Technical Institute (UTI), like many companies, allows certain third party advertising partners to place tracking technology such as cookies and pixels on our websites. The high school segment is made up largely of males as it relates to UTI, and it's working on engaging that tough demographic by building relationships with the students while they're in high school. As I write the share price of the company is at $11.26. We won't find out until next quarter whether or not that has actually translated into new student applications or not. Since that time UTI has purchased $8.8 million in shares under the program at an average price of $11-$12 per share, which gives a buyback yield of 3.8%. sharing for online advertising may be considered a sale of information. Some UTI graduates get jobs within their field of study in positions other than as a technician, such as: parts associate, service writer, fabricator, paint and paint prep, and shop owner/operator. The numbers dont support this story. In the second quarter that continued with a year-over-year growth rate of 14 percent. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. 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). 2018 Universal Technical Institute, Inc. All rights reserved. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). In response, UTI has increased its scholarship opportunities to attract new students but it has also been forced to raise tuition to prevent revenues from falling in the face of declining enrollment. UTI has relationships with manufacturers of more than 35 leading brands. Student-Paid vs. Manufacturer-Paid Programs, Table 1.10 Occupational separations and openings, projected 2021-31, Table 1.2 Employment by detailed occupation, 2021 and projected 2031. Universal Technical Institute serves three student segments: high school, veterans, and adult. Every investor in Universal Technical Institute, Inc. (NYSE:UTI) should be aware of the most powerful shareholder groups. Media Contactavitucci@uti.edu480.710.6843. [9] Jerome Grant was named CEO in 2019.[10]. Talk to potential employers to learn more about the programs available in your area. Under Jami's leadership, UTI's first step into healthcare will serve as a solid cornerstone for some of our key future growth and diversification efforts.". 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. In the near term money could be made shorting it, and the risk there would be if for some reason the company was able to exceed expectations for new students' enrollments. These days I invest only for myself while continuing to write on a variety of financial and economic topics. For more information about cookies you can visit https://www.allaboutcookies.org. 8-2 Project Three Systems Thinking. Talk to potential employers to learn more about the programs available in your area. A drop to the mid-to-high single digits for new student starts is the reasoning there. Analysts are somewhat down on the company, as they are looking for the company to lose $0.02 in earnings for the next quarter, and to drop from a prior estimate of a profit of $0.25 a share to a profit of $0.21 for the year. 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. out by completing and submitting the form below. 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. 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