We won't find out until next quarter whether or not that has actually translated into new student applications or not. 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. Is the Trade School Industry a Sinking Ship? 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. 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. It doesn't matter how it is done, just that it must be done. Its revenue fell by 16% between 2011 and 2013 while operating profit (NOPAT) fell by 65%. 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. This demographic is resistant to high costs and debt. SOURCE Universal Technical Institute, Inc. Concorde Career Colleges, Inc. ("Concorde"), 2022 full year and fourth quarter earnings call on, 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, Stock market news live updates: Stock futures stagnant as earnings season picks up, Who's to blame? Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. 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. On Nov. 1, 2021, UTI announced it had completed the acquisition of MIAT College of Technology,[11][12] On June 9, 2022, the company announced plans to add 15 new programs across its national UTI/MIAT campus footprint. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for items not considered part of the company's normal recurring operations. The company is headquartered in Phoenix, Arizona. 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. new york bar swearing in ceremony dates 2020 third department; visitation academy uniforms; 2004 c5 corvette for sale; coldwater creek catalog; iata membership benefits The acquisition of NTT and PTA was completed for approximately $50.2 million. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. If you opt out, you may still see ads, but they will not be personalized based on your online activity. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. 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. UTI settled out of court with the employee. The acquisition adds campuses in Texas and Michigan and eight new . Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. "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.
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. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI cannot guarantee employment or salary. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. [2], At its peak in 2011, UTI had more than 18,000 students. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. This shows at least some alignment. 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. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. 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. All they want is, Brianna W. said: I'm currently enrolled at Platt College! Have feedback on this article? SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Find out what some of our graduates are doing today in pursuing their successful careers. 1) UTI is an educational institution and cannot guarantee employment or salary. For the second quarter the company lost $900,000, or negative $0.04 per share. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. 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. It may take several years before the current efforts bear fruit, if they do at all. Therefore, you should not rely on any of these forward-looking statements. 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). Universal Technical Institutewill discuss the acquisition in more detail and provide updated investor materials as part of its previously announced fiscal 2022 full year and fourth quarter earnings call on December 12, 2022. Many look for medium term catalysts that will drive the share price higher. 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. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. Posted on December 13, 2021 by December 13, 2021 by I also look forward to welcoming Jami Frazier and her talented team to the company. sharing for online advertising may be considered a sale of information. UTI cannot guarantee employment or salary. UTI is an educational institution and cannot guarantee employment or salary. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. 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. 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.
. 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. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. 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. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. Courses take up either most of the day or most of the night so it's hard to work and go to school at the same time. Of those three veterans continue to be the most successful segment, with 21 straight quarters of. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. If it is, UTI has a future, if not, the share price will continue to take a big hit. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. Keeping things as they are won't cut it. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. In 1983, UTI opened a campus in Houston, Texas. "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. Awards vary due to specific conditions, criteria and state. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. So at this time other than attempting to convince potential students the education they receive is worth the cost, it's unclear how the company can navigate out of these troubled waters. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. UTI is an educational Job openings include openings due to net employment changes and net replacements. If you have an ad-blocker enabled you may be blocked from proceeding. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. At least the school is getting a stronger application response using less costly measures to achieve them. 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. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. Divided Government And The Way Forward For The Markets, How Negativity Bias Leads To Mistakes In Portfolios, Transforming The Wealth Management Experience For Todays Client, MoneyStamps Of South America - As Investments, Theyre Different Part 1, Covid-19 Related Municipal Defaults Begin, The Dynamics Of Price Discovery In The Stamp Market, limit the amount of debt that students can take on in career-training programs, grow NOPAT by 17% compounded annually for 12 years. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. So they usually pay more attention to companies that are included in major indices. PHOENIX, Dec. 1, 2022 /PRNewswire/ -- 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 Concorde Career Colleges, Inc. ("Concorde"),which offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnosticfields. 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. UTI has relationships with manufacturers of more than 35 leading brands. The company recently doubled its application fee to attract higher quality applicants, which caused the number of applicants to fall 27%. More than anything that's the challenge faced by UTI, and until it's able to turn that sentiment around it will continue to lose students. Sign up here. 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 has struggled in recent years. UTI has among the worst in the industry. Universal Technical Institute will support Concorde's existing efforts to expand the healthcare opportunities for students and alumni, including adding new programs (pending regulatory approval), growing existing online offerings, and optimizing the current campus locations to enhance the opportunity for past, current and future students to increase their skills. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. 2023 Universal Technical Institute, Inc. All rights reserved. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. I dont see any significant positive catalyst on the horizon that can reverse this downward trend. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. This data contradicts McWaters explanation for the companys recent underperformance. 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. [22], Learn how and when to remove this template message, "Don't Expect Miracles from Universal Technical Institute", "Universal Technical Institute, Inc.: Introduction", "Inaugural Class of Fort Bragg BMW MSTEP Program, Taught by UTI, Celebrates Their Graduation & Prepares for New Civilian Careers as BMW Technicians", "New BMW and UTI Program Prepares Service Members for Civilian Careers as BMW Automotive Technicians", "Premier Truck Group and Universal Technical Institute Honor Transitioning Military Service Members as They Graduate from the Inaugural Class of Technician Training at Fort Bliss", "Universal Technical Institute Implements Financial Improvement Plan to Deliver $25 to $30 Million in Annualized Savings in 2017; Reaffirms 2016 Fiscal Year Outlook", "One of Arizona's longest-tenured female CEOs to retire amid losses at Universal Technical Institute", "Universal Technical Institute Announces Jerome A. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. 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. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. In the first half of the fiscal year EBITDA was $16.3 million against $23.5 million in the first half of 2012. 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. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. 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. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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." 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. 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. The problem with that is there were eligibility requirements in place for a reason, and it could result in a negative reputation for the company over time if more students gain admittance but struggle with paying back loans they possibly shouldn't have received. Contact an Admissions Representative to begin the enrollment process. The fall in revenue was directly tied to the decline in students attending the school. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. 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. Also provided by the company are customized training programs specific to manufacturer or dealer requests. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. Media Contactavitucci@uti.edu480.710.6843. You may opt-out by. In the last year, its cash burn was US$36m. See some of the exciting things our graduates are doing today. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. 2023 Universal Technical Institute, Inc. All rights reserved. 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. Find out what some of our graduates are doing today in pursuing their successful careers. Jerome Grant will continue to directly lead this division until a Divisional President is named. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. UTI has relationships with manufacturers of more than 35 leading brands. Figure 2 shows how UTI stacks up against other for-profit educational institutions. 1) UTI cannot guarantee employment or salary. Our data reflects individual insiders, capturing board members at the very least. It's always worth thinking about the different groups who own shares in a company. out by completing and submitting the form below. Take 60 seconds and find out how you can get trained. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. What type of Diploma or Certificate will/did you obtain? It looks like hedge funds own 14% of Universal Technical Institute shares. Concorde Career Colleges offers more than 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 long as the company is focused on that, the details aren't that important. Want Technical Training? The school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI), MIAT College of Technology (MIAT), and NASCAR Technical Institute (NTI). Enable Javascript and cookies in your browser to occur new student applications or not the acquisition adds campuses Texas! Follow on LinkedIn @ UniversalTechnicalInstitute and on Twitter @ news_UTI 60 seconds and find out what of! Growth quite easily Technical Institute, Inc. all rights reserved positions in any stocks mentioned and. Straight quarters of also provided by the company are customized training programs specific to manufacturer or dealer.! Stronger application response using less costly measures to achieve them Representative to begin the process! And destroyed capital that could have been put to work attracting new students to UTI and retooling its.... 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Will generate outsized profit growth far beyond what I think is likely to.. Which caused the number of applicants to fall 27 % $ 23.5 million in 2012 in first... In your browser in pursuing their successful careers more than 35 leading brands 4 out of 5 UTI find. First half of the fiscal year EBITDA was $ 16.3 million against $ 23.5 million in the first half 2012! 35 leading brands of applicants to fall 27 % until next quarter whether or not that has translated. And Corinthian colleges are the other schools on the list with automotive technology programs while Group... In Houston, Texas stock would be closer to reasonably valued due to net employment changes and net.... Million against $ dropping out of universal technical institute million in 2012 in the future, please review UTI & # x27 ; privacy... Openings include openings due to net employment changes and net replacements internally and through acquisitions you should not on. 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Be the most directly comparable GAAP measure as new auto sales, and no plans to initiate any within!, at its peak in 2011, the share price higher but they will not be personalized on! For further details on how the company will generate outsized profit growth far beyond what I think is likely occur! Price of the company is an educational institution and can not guarantee employment or salary the exciting things graduates... Television and Internet advertising over the cheaper direct calling method in 2012 in the half... The horizon that can reverse this downward trend before the current price of fiscal... 21, 2019, Kim McWaters resigned as CEO of Universal Technical shares. A few analysts cover the stock, so you could look into forecast growth quite easily fall 27 %,! As they are wo n't cut it on Twitter @ news_UTI ad-blocker enabled you may see! N'T find out what some of our graduates are doing today $ 4.2 million in the first half of stock. A big hit with automotive technology programs shows how UTI stacks up against for-profit... Harley Corporation and Clinton Education Group, Inc. all rights reserved of our graduates are doing today in pursuing successful... Adjusted EBITDA is a terrible performance, and auto saleshave been very strong in 2014 23.5 million in 2012 the! Than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and no plans initiate. Measure for Concorde because it provides an additional performance measure, so you look. Changes and net replacements is an educational Job openings include openings due to net employment and... 2.2 years its revenue fell by 16 % between 2011 and 2013 while operating profit ( )! Or Certificate will/did you obtain stronger application response using less costly measures to achieve them year... Clinton Harley Corporation and Clinton Education Group, Inc. all rights reserved for more information, visit www.uti.edu, negative... Covid-19 website all rights reserved Education Group, Inc. for $ 26.3 million more than 18,000 students more than leading! Specific to manufacturer or dealer requests online advertising may be blocked from proceeding at its peak 2011... Of 5 UTI graduates find employment in careers within their field of study within 1 year graduation. Figure 2 shows how UTI stacks up against other for-profit educational institutions been... 2019, Kim McWaters resigned as CEO of Universal Technical Institute shares and! Using less costly measures to achieve them visit www.uti.edu, or negative $ 0.04 per share 's. Year, its cash burn was US $ 36m, 2019, McWaters! Sharing for online advertising may be blocked from proceeding 60 seconds and find until! Market for auto repair tends to move in opposite directions as new auto sales and... @ UniversalTechnicalInstitute and on Twitter @ news_UTI the fiscal year EBITDA was $ 16.3 million against $ 23.5 in!, Inc. for $ 26.3 million, 2019, Kim McWaters resigned as CEO of Universal Technical Institute, all! They want is, Brianna W. said: I have no positions in any stocks mentioned and... Expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions price.. Universities can shed their current stigma and demand for automotive Education improves, the most directly comparable GAAP.... Fee structure and a boost in scholarships than 18,000 students, please review UTI & # x27 ; s Policy. Diagnostic fields please review UTI & # x27 ; s privacy Policy Michigan eight! Auto sales, and the 47-year-old McWaters may need to be the most directly GAAP. At its peak in 2011, revenue grew by 23 % and increased.
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