Since the industry has very high fixed costs, student growth and retention is basically the entire game. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. I also look forward to welcoming Jami Frazier and her talented team to the company. 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 . UTI is making more than $15 million in scholarships and grants available to students in 2022. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 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 poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. Other than lowering fees and boosting scholarships, I don't see any way UTI can deal with one of the major headwinds it faces, which is the strong reluctance of consumers to take on debt. Of course, keep in mind that there are other factors to consider, too. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of UTI's control. 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. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. Universal Technical Institute was founded in 1965. UTI is an educational institution and cannot guarantee employment or salary. The acquisition expands Universal Technical Institute's portfolio of offerings into the higher-growth healthcare arena and creates the opportunity to bring workforce educational solutions to a broader array of students and employers. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. Learning is hands on so no online classes to get it done. UTI has among the worst in the industry. 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. Job openings include openings due to net employment changes and net replacements. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. Combined it resulted in the operating loss of $1.9 million in the second quarter. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. It might appear that UTI could justify a higher valuation based on the assets on its balance sheet, but such thinking ignores the impact of over $142 million inoff-balance sheet debt. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. That level of sustained growth seems unlikely given the many problems facing UTIs industry. 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. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. Join A Paid User Research SessionYoull receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Find out more here. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. 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. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 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. Take 60 seconds and find out how you can get trained. Concerned about the content? 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. UTI has not faced the same kind of legal issues asITT Technical Institute(ESI) orCorinthian Colleges(COCO), but these high-profile cases have hurt the publics perception of the entire industry. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. 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. 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. The private educational sector continues to face a lot of headwind, and UTI hasn't done very well at successfully implementing new strategies to deal with the realities of the market they serve. Awards vary due to specific conditions, criteria and state. ", "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. 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. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. The staff here is friendly,, YL M. said: After seeing the reviews posted here, some with no merit on the actual, Kelvin P. said: This school really teaches you the ins and outs of welding not just, Tommy L. said: This is an honest opinion about the school, not a fake review like you. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. What type of Diploma or Certificate will/did you obtain? The acquisition adds campuses in Texas and Michigan and eight new . Universal Technical is adjusting its own loan programs to make it easier for students to qualify by lower eligibility restrictions and making them more accessible to students. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Also provided by the company are customized training programs specific to manufacturer or dealer requests. Sign up here. Looking at the last year, the company burnt through US$36m. It's one of the areas it can manage, and it's showing some improvement in that regard, even if it's only for one month at this time. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Since there isn't much else the company can do, as it must increase student starts, it apparently is a risk it's willing to take to stem the steep decline in its student body. 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. Search trends for automotive education are down 10% year-over-year. We won't find out until next quarter whether or not that has actually translated into new student applications or not. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. ", Mr. Grant continued, "Together with Concorde, we have now more than doubled the number of campuses in our ecosystem and expanded into the critical area of healthcare training to help meet the national shortage of healthcare workers, as part of our mission of becoming a valued and trusted educational partner for students across multiple industry verticals.". 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. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. 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. UTI also authorized a buyback program of $25 million in 2011. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". Media Contactavitucci@uti.edu480.710.6843. In this case, in addition to its dividend, UTI repurchased overvalued stock. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. 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. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of UTI's control. Visit School's Website Universal Technical Institute - Lisle Cost Value B minus Based on average net price, earnings potential, student and alumni reviews, and additional factors. 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. It remains a challenge the school must solve if it is to have a chance of even remaining at current student levels, let alone growing. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, and to review the applicable Gainful Employment disclosure, visit our website at www.uti.edu/disclosures. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. In that regard UTI is easy to understand and measure, and it's best to ignore all the talk of strategies and models and look at the bottom line: is the student population growing or not? Presiding over this type of decline over almost a decade calls for new leadership, as other educational companies, while under similar pressures, have managed to perform much better facing the same headwinds. The boards of directors of both companies have unanimously approved the agreement. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. With 70% stake, institutions possess the maximum shares in the company. MIAT College of Technology has joined UTIs family of schools! 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. The schools operated by Concorde Career Colleges are accredited by either the Accrediting Commission of Career Schools and Colleges (ACCSC) or the Council on Occupational Education (COE). Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.. 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. 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.
By submitting this form, I agree that MIAT College of Technology, Universal Technical Institute, Inc., Custom Training Group, Inc. and their representatives may email, call, and / or text me with marketing messages about educational programs and services, as well as for school-related communications, at any phone number I provide, including a wireless number, using prerecorded calls or automated technology. 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. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. Therefore, you should not rely on any of these forward-looking statements. 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. In 2011, a former employee filed a lawsuit against the company accusing it of violating Title IV regulations in its compensation incentives for admissions representatives. 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. Universal Technical Institute - Reviews. If you are like me, you may want to think about whether this company will grow or shrink. 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. With the acquisition of Concorde complete, the Company will operate and report as two divisions. Figure 2 shows how UTI stacks up against other for-profit educational institutions. For further details on how we use your data, please review UTI's Privacy Policy. "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.
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