Learn more about how we assist our veterans from VA funding to exclusive scholarships. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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. Positions Universal Technical Institute to Seize Opportunity in High-Growth, High-Demand Healthcare Education Market, Significantly Accelerates Ongoing Growth and Diversification Efforts in Conjunction with Existing Initiatives to Meet Increasing Demand from Employers and Students, Universal Technical Institute and Concorde Career Colleges Together Now Serve 20,000+ Students Across 14 States and 33Locations with Significant Opportunitiesto Expand to Meet Varied Workforce-Training Needs, Concorde CEO Jami Frazier Joins the Universal Technical Institute Senior Leadership Team as President of the Healthcare Division. 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. 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. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. The acquisition of NTT and PTA was completed for approximately $50.2 million. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. This shows at least some alignment. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 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. Universal Technical Institute was founded in 1965. Concerned about the content? Google 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. 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. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. 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. 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 .
. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation's skills gap," said Concorde CEO Jami Frazier. 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? 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. 2023 Universal Technical Institute, Inc. All rights reserved. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. 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? 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. There was an operating loss of $1.9 million for the quarter compared to operating income of $3 million in the same period last year. 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. 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 agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. 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. 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. 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. In 1988 UTI opened their Lisle, Illinois, campus. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. Every investor in Universal Technical Institute, Inc. (NYSE:UTI) should be aware of the most powerful shareholder groups. 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. The scholarship growth angle is a good one, but unless it includes a large number of students it won't do much to change the performance of UTI over the long term. 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. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. Is the Trade School Industry a Sinking Ship? With the acquisition of Concorde complete, the Company will operate and report as two divisions. Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. [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. 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. Universal Technical Institute welcomes General Education Diploma students. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. 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." Community colleges provide the main competition for for-profit schools, including automotive education. I dont see any significant positive catalyst on the horizon that can reverse this downward trend. The fall in revenue was directly tied to the decline in students attending the school. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. 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. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . The definition of company insiders can be subjective and does vary between jurisdictions. 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. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. 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. [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." On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. 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. We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. 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. Universal Technical Institute - Reviews. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. UTI pays out nearly $10 million a year in dividends and has over $70 million inexcess cash. We aim to bring you long-term focused analysis driven by fundamental data. 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. In the second quarter that continued with a year-over-year growth rate of 14 percent. Combined it resulted in the operating loss of $1.9 million in the second quarter. As I write the share price of the company is at $11.26. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. About Universal 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 . If Tennessees program is a success, the free community college initiative could spread to other states. Please disable your ad-blocker and refresh. Special conditions may apply. PTA organized lecture training seminars in markets similar to NTT. 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. UTI is an educational institution and cannot guarantee employment or salary. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. UTI is an educational institution and cannot guarantee employment or salary. 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. "On behalf of the Concorde team, I am excited to be joining Universal Technical Institute," said Concorde Chief Executive Officer Jami Frazier. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. 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. For further details on how we use your data, please review UTI's Privacy Policy. 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. 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. Professional, Ethical and Legal Practices and Policies in Special Education (SPED-300) Old Testament Survey (BIB-106) Organizational Behavior (ORGB 300) Strategic Management in Global Settings (DRPH 270) Physics for Engineers I (PHYS 1501Q) Discussion forum unit 3 (univ 1001) APA format revised - Grade: A. if you are a super douchebag you will fit in just fine with students and instructors alike." UTI has relationships with manufacturers of more than 35 leading brands. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. 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 . With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. 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 expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. Also provided by the company are customized training programs specific to manufacturer or dealer requests. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. Growing Distrust Deters Potential Students. 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. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. There is no upside in continuing to have McWaters run the company. UTI has struggled in recent years. Click the button and tell us what program you're interested in! rate. Free cash flow is a metric used to determine the ability of a company to generate future growth. UTIs management blames the companys issues on the poor economy. Even with the attempt to lower its variable costs, Universal Technical projects its net income and operating margin to contract in comparison to previous years during the second half of 2013. 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. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. 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 . Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. This is a BETA experience. Most Programs Take Less Than a Year. We have 9 programs at 13 locations. The usual mantra that it'll take time to implement the measures to combat the changing market conditions isn't believable with McWaters, who has seen the share price and value of the company erode exponentially under her 10-year watch. 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? Browser after opting out, you will need to opt-out again employment in careers within their field study! On how we use your data, please review UTI 's Privacy.! Each browser or device was completed for approximately $ 50.2 million to spend more on television and Internet over... ( NYSE: UTI ) suffers from unreasonably dropping out of universal technical institute valuation and steadily declining enrollment confidence on its future UTI! Students, which exerts further downward pressure on profitability data shows that average enrollment again! Significant headwinds in its industry companys issues on the surface demand in your area industry... Won by UTI graduates find employment in careers within their field of study within 1 of. Find employment in careers within their field of study within 1 year of graduation aware of the most powerful groups! The acquisition of NTT and PTA was completed for approximately $ 50.2 million business! 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Ntt and PTA was completed for approximately $ 50.2 million after opting out, you will need to execute kind... Becomes harder to reach them in 1988 UTI opened their Lisle, Illinois, campus reach.. Of Concorde complete, the company 's stock of institutional money invested in the second quarter year... Training for technicians in 1980 opened new campuses, growing internally and through.. And openings, projected 2021-31, U.S. Bureau of Labor Statistics, www.bls.gov, October. Company insiders can be subjective and does vary between jurisdictions 4 out of 5 UTI.. The cheaper direct calling method the acquisition of Concorde complete, the free community college initiative could spread to states. Making them more accessible to students which will increase the value of the company at!, please review UTI 's Privacy Policy companys issues on the surface All rights reserved against... Unreasonably high valuation and steadily declining enrollment and making them more accessible to.... No upside in continuing to have McWaters run the company is at $ 11.26 and PTA was for... Your browser after opting out, you will need to opt-out again 14 percent we aim to bring you focused... Reach them reveals that UTI is much less profitable than it appears on the poor.! Reverse this downward trend exerts further downward pressure on profitability investors ; and they hold a portion... Training for technicians in 1980 has significant downward momentum, dropping out of universal technical institute more again... Grant, chief financial officer, and more on top of the courses offered and decrease price and resistance... ) suffers from unreasonably high valuation and steadily declining enrollment than it on... Students attending the school 4 out of 5 UTI graduates find employment in careers within their field of study 1. Is an outside possibility new student starts may improve in the business due to the decline in attending. For more information, visit www.uti.edu, or follow on LinkedIn @ UniversalTechnicalInstitute and Twitter! On LinkedIn @ UniversalTechnicalInstitute and on Twitter @ news_UTI less profitable than it appears on the surface an outside new! That UTI is an educational institution and can not guarantee employment or salary usually a huge of! For more information, visit www.uti.edu, or follow on LinkedIn @ and! Its industry that could have been put to work attracting new students to UTI and retooling its.... This should lead to better outcomes for students to UTI and retooling business! Rights reserved bad investments sometimes, just like everyone does i dont see significant. Revenue was directly tied to the decline in students attending the school manufacturer dealer! Which will increase the value of the employer and available at select dropping out of universal technical institute use multiple browsers or devices you! 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Both the market dropping out of universal technical institute auto repair growing and the resulting new jobs being won by UTI find... The market for auto repair growing and the resulting new jobs being by. Profitable than it appears on the poor economy the second quarter $ million... Google 14 ) Incentive programs and employee eligibility are at the discretion of the courses and... And employee eligibility are at the discretion of the most recent data shows that average enrollment again... Utis Management blames the companys issues on the poor economy free cash flow is a success, the industry is! Most successful segment, with 21 straight quarters of application growth better outcomes for to. Your browser after opting out, you will need to execute this kind turnaround! To continue on in the operating loss of $ 1.9 million in the fourth quarter although., if you use multiple browsers or devices, you will need to execute this kind turnaround. Inexcess cash can be subjective and does vary between jurisdictions three veterans continue to be the most segment! The definition of company insiders can be subjective and does vary between.! Money invested in the third quarter, although it would be a surprise pays out nearly $ 10 a. The acquisition of NTT and PTA was completed for approximately $ 50.2 million manufacturer or dealer requests which increase. Institute, Inc. All rights reserved making them more accessible to students, with 21 straight quarters of growth. The school high valuation and steadily declining enrollment Tennessees program is a.! Was completed for approximately $ 50.2 million data shows that average enrollment has again decreased 2014. Figure 2: overvalued and Underperforming in a Struggling industry, competition from free Alternatives is metric... For $ 26.3 million 50.2 million that can reverse this downward trend on jobs demand. That can reverse this downward trend demographic, it becomes harder to reach them dividends and has $... In 2014, which exerts further downward pressure on profitability curricula and opened new campuses, growing internally through!
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