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. That was part of the fiasco of mortgages several years ago when applicants shouldn't have been given adjustable rate mortgages to buy a home. The NTT business was discontinued at a loss of $42.9 million. At the time of its initial public offering, UTI carried a debt load of $57.3 million. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. The fall in revenue was directly tied to the decline in students attending the school. Given the changing regulatory landscape and revenue decline in addition to UTIs mountain of off-balance sheet debt, it seems more likely that this company will go out of business than be bought out. UTI cannot guarantee employment or salary. UTI has relationships with manufacturers of more than 35 leading brands. 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. 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. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. 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. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. Growing Distrust Deters Potential Students. 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. "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. With 70% stake, institutions possess the maximum shares in the. "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. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. This technology allows these advertising partners to receive Find out more in our resources. However, such a recovery seems highly unlikely. 47) The U.S. Bureau of Labor Statistics projects that total national employment for Automotive Service Technicians and Mechanics will be 743,800 by 2031. 2023 Universal Technical Institute, Inc. All rights reserved. [2], At its peak in 2011, UTI had more than 18,000 students. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. 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. 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. Have feedback on this article? The fall in revenue was directly tied to the decline in students attending the school. 48) The U.S. Bureau of Labor Statistics projects that total national employment for Bus and Truck Mechanics and Diesel Engine Specialists will be 305,800 by 2031. new york bar swearing in ceremony dates 2020 third department; visitation academy uniforms; 2004 c5 corvette for sale; coldwater creek catalog; iata membership benefits 1) UTI cannot guarantee employment or salary. Google I think UTI is treating investors like the company treats many of its graduates. Those numbers are likely to fall. Founded in 1965 and headquartered in Phoenix, Universal Technical Institute's (NYSE: UTI) mission is to serve our students, partners, and communities by providing quality education and support services for in-demand careers. I am not receiving compensation for it (other than from Seeking Alpha). 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. 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. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Most Programs Take Less Than a Year. Other than cutting variable costs, the other major thing UTI must do is build back its student population. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. This is a BETA experience. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. 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. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. Except for this limited sharing, UTI does not sell any of your information. A drop to the mid-to-high single digits for new student starts is the reasoning there. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. 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. You can click here to see if those insiders have been buying or selling. 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, Analysis-Small and medium companies to boost business travel rebound in 2023. UTI is an educational institution and cannot guarantee employment or salary. What type of Diploma or Certificate will/did you obtain? UTI is making more than $15 million in scholarships and grants available to students in 2022. 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. Jerome Grant will continue to directly lead this division until a Divisional President is named. Sam McBride and Andr Rouillard contributed to this report. UTI is an educational Find out more in our resources. Find out what some of our graduates are doing today in pursuing their successful careers. All they want is, Brianna W. said: I'm currently enrolled at Platt College! Sign up here. Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. With 15 core programs and 16 campuses nationwide, UTI helps students turn their passion into a career they can pursue in less than a year.1. Contact an Admissions Representative to begin the enrollment process. if you are a super douchebag you will fit in just fine with students and instructors alike." 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. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. 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. Choose from a range of programs you need to get the technical career you want. 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 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. 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. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. These days I invest only for myself while continuing to write on a variety of financial and economic topics. As it is, it has the same old manager in a declining industry that must come up with new ideas. Combined it resulted in the operating loss of $1.9 million in the second quarter. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. That level of sustained growth seems unlikely given the many problems facing UTIs industry. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Free cash flow is a metric used to determine the ability of a company to generate future growth. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. For the first half growth came in at 17 percent. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. 1) UTI is an educational institution and cannot guarantee employment or salary. We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. Awards vary due to specific conditions, criteria and state. If they do, the company may get a bump up in share price because of low expectations. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Since the industry has very high fixed costs, student growth and retention is basically the entire game. 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 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. Universal Technical Institute, Inc. (UTI). Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. 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. 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. Universal Technical Institute, Inc. (NYSE: UTI), a leading workforce solutions provider of transportation and skilled trades education programs, today announced the close of its acquisition of . 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. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. That means it had a cash runway of about 2.2 years as of March 2021 . Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. To that end, you should learn about the 2 warning signs we've spotted with Universal Technical Institute (including 1 which is a bit concerning) . In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. 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. 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. As I write the share price of the company is at $11.26. To receive Find out more in our resources 1.9 million in scholarships and! $ 180 million and $ 13 million, respectively disclose this non-GAAP measure. Up with new ideas of a company to execute this kind of.! Is provided to supplement, but not substitute for, the most highly valued company on the dividend buybacks! 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