You may opt-out by. Find the campus that matches your career goals here. 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 also look forward to welcoming Jami Frazier and her talented team to the company. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. These days I invest only for myself while continuing to write on a variety of financial and economic topics. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. 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 comprised of two divisions: UTI and Concorde Career Colleges. We aim to bring you long-term focused analysis driven by fundamental data. I have no business relationship with any company whose stock is mentioned in this article. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. UTI also authorized a buyback program of $25 million in 2011. Learn more about how we assist our veterans from VA funding to exclusive scholarships. UTI is an educational institution and cannot guarantee employment or salary. You can exercise your right to opt With the addition of Concorde and the broadening of our program offerings, we will accelerate Universal Technical Institute's revenue, profitability, and cash flow growth over the next several years. Free cash flow is a metric used to determine the ability of a company to generate future growth. KAlice S. said: My husband and I were previous students here so we were ready and, Wrecks N. said: This place is the worst place to get an education. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 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 fall in revenue was directly tied to the decline in students attending the school. I think UTI is treating investors like the company treats many of its graduates. Find out what some of our graduates are doing today in pursuing their successful careers. The definition of company insiders can be subjective and does vary between jurisdictions. UTI may be able to pay out a high dividend and maintain its buyback for a while, but unless it can manage a dramatic and improbable turnaround in its business, the stock will continue to fall. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. As long as the company is focused on that, the details aren't that important. 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. 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 .
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. 2023 Universal Technical Institute, Inc. All rights reserved. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. click here to see if those insiders have been buying or selling. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. In this case, in addition to its dividend, UTI repurchased overvalued stock. Concorde was founded in 1968 and currently serves approximately 7,400 students through its 17 campuses in8 states. The acquisition adds campuses in Texas and Michigan and eight new . This suggests some credibility amongst professional investors. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. With negative free cash flow to price of $-0.49 per share, it's hard to see how UTI expects to grow in the future. 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. Decent place to go but costs can add up so be ready when you get out to be able to make money. institution andcannot guarantee employment or salary. Bulls focus on UTIs assets and clean balance sheet but overlook the companys $142 million in off-balance sheet debt, which is nearly 60% of its market value. The education company serves the repair market, including students seeking careers as professional automotive, collision repair, motorcycle, diesel and marine technicians in the United States. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. 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. 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. UTI welcomes General Education Diploma students. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. 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. It's always worth thinking about the different groups who own shares in a company. Those numbers are likely to fall. Net Price $21,726 / year National $15,523 Average cost after financial aid for students receiving grant or scholarship aid, as reported by the college. Search trends for automotive education are down 10% year-over-year. The ongoing high fixed costs, which can't be managed, is what makes UTI such a risk to own if investors want any type of growth. 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. 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. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. That's unlikely to happen, and there's little in the way of it continuing its free fall; although a new CEO would probably give the company a temporary boost, and if the right person, may even help to generate sustainable growth for the company. Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If you opt out, you may still see ads, but they will not be personalized based on your online activity. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. 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? 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. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. 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 . 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. That level of sustained growth seems unlikely given the many problems facing UTIs industry. UTI has relationships with manufacturers of more than 35 leading brands. Grant to Succeed Kimberly J. McWaters as Chief Executive Officer", "Universal Technical Institute Completes Acquisition of MIAT College of Technology", https://www.bizjournals.com/phoenix/news/2021/11/05/phoenix-school-back-in-growth-mode.html, "Universal Technical Institute Will Add 15 New Programs in Transportation and Skilled Trades Across Its National UTI/MIAT Campus Footprint", "UTI Adding New Automotive, Skilled Trade Programs | THE SHOP", "Universal Technical Institute Expands Platform of Workforce Solutions Offerings with Completion of Concorde Career Colleges, Inc. Acquisition", "Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs", "Universal Technical Institute plans $50M acquisition of Concorde Career Colleges", "Ford to collaborate with Universal Technical Institute on EV training curriculum", "Universal Technical Institute Selects Bosch to Develop New Courseware Supporting its Electric Vehicle Training Strategy", https://www.bizjournals.com/phoenix/news/2018/02/08/uti-stock-up-while-stemming-losses-as-enrollment.html, "Universal Technical Institute Celebrates Opening of Austin Campus", "Universal Technical Institute Selects Miami Metropolitan Area As The Location For The Second New Campus It Plans To Open In 2022", https://en.wikipedia.org/w/index.php?title=Universal_Technical_Institute&oldid=1133240788, This page was last edited on 12 January 2023, at 21:12. 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. ", "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. Are at the discretion of the stigma against for-profit schools, UTI faces other significant in. Our veterans from VA funding to exclusive scholarships this non-GAAP financial measure for Concorde because provides... 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dropping out of universal technical institute