Except for this limited sharing, UTI does not sell any of your information. With the acquisition of Concorde complete, the Company will operate and report as two divisions. 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? Choose from a range of programs you need to get the technical career you want. Therefore, you should not rely on any of these forward-looking statements. That means it had a cash runway of about 2.2 years as of March 2021 . Come take a look at our hands-on labs with state-of-the-industry equipment and technology. These schools, along with UTI rank at the bottom of the list in every metric. 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. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. Sign up here. 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. 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. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. 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. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. 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. 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. For the second quarter the company lost $900,000, or negative $0.04 per share. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. UTI cannot guarantee employment or salary. 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. 1) UTI is an educational institution and cannot guarantee employment or salary. UTI is making more than $15 million in scholarships and grants available to students in 2022. With 70% stake, institutions possess the maximum shares in the. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. 1.7 million+ Total technician employment expected nationally by 203138 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. Simply Wall St has no position in any stocks mentioned. [3], The 2012 Harkin Commission noted that: "Compared to public colleges offering the same programs, the price of tuition is significantly higher at UTI.The same Certificate costs almost 20 times more at UTI than it does at the public college." Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. The firm said it grew adult applications by 10 percent (year-over-year) in April, and while cautious in outlook because of it being only one month, it is the first time in a long time since adult student applications increased. 2023 Universal Technical Institute, Inc. All rights reserved. This data contradicts McWaters explanation for the companys recent underperformance. I further understand and agree that I may instead call MIAT at 1-800-477-1310 for Canton, MI and 1-888-547-7047 for Houston, TX or UTI at 1-800-913-7524 to request admission information. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. 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 . To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 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. 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. Is the Trade School Industry a Sinking Ship? Find the campus that matches your career goals here. Those numbers are likely to fall. If you are like me, you may want to think about whether this company will grow or shrink. It may take several years before the current efforts bear fruit, if they do at all. I generally consider insider ownership to be a good thing. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. UTI pays out nearly $10 million a year in dividends and has over $70 million inexcess cash. 1) UTI cannot guarantee employment or salary. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. Luckily, you can check this free report showing analyst forecasts for its future. 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.

. 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 . The definition of company insiders can be subjective and does vary between jurisdictions. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. Its revenue fell by 16% between 2011 and 2013 while operating profit (NOPAT) fell by 65%. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. 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. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. Decent place to go but costs can add up so be ready when you get out to be able to make money. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. Universal Technical Institute was founded in 1965. 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. Investors should not expect the companys current buyback and dividend to continue much longer. You may opt-out by. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". Universal Technical Institute welcomes General Education Diploma students. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. We won't find out until next quarter whether or not that has actually translated into new student applications or not. [21] A planned Miramar, Florida campus opened in Summer of 2022. For one, the desirability of a career in auto maintenance seems to be declining. What type of Diploma or Certificate will/did you obtain? 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. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. 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). 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. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. 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. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. I further understand and agree that I may instead call MIAT at 1-800-477-1310 for Canton, MI and 1-888-547-7047 for Houston, TX or UTI at 1-800-913-7524 to request admission information. In the second quarter that continued with a year-over-year growth rate of 14 percent. 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. 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. 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. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. 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