Posted on December 13, 2021 by December 13, 2021 by That is also expected to continue on in the third quarter, largely from an expected decline in show rates. Our data reflects individual insiders, capturing board members at the very least. 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? Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. As I write the share price of the company is at $11.26. Of course, keep in mind that there are other factors to consider, too. If they do, the company may get a bump up in share price because of low expectations. With 70% stake, institutions possess the maximum shares in the company. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. I understand that my consent is not required to apply, enroll or make any purchase. UTI has not faced the same kind of legal issues asITT Technical Institute(ESI) orCorinthian Colleges(COCO), but these high-profile cases have hurt the publics perception of the entire industry. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. Find out more in our resources. 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. While UTI likes to trumpet its 80% job placement rate, it is difficult for students pay off loans of almost $50,000 for tuition and living costs on an entry-level mechanics salary. UTI settled out of court with the employee. 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. Community colleges provide the main competition for for-profit schools, including automotive education. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. 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. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. Universal Technical Institute (NYSE:UTI) has been struggling lately, and there's little to suggest this stock is going to recover anytime soon, making it a good candidate to short or get out of altogether. 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. Therefore, you should not rely on any of these forward-looking statements. 2023 Universal Technical Institute, Inc. All rights reserved. They aren't always helpful and tuition way overpriced. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 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. Find out more here. While UTI has no debt on its balance sheet, it has operating lease commitments with a present value of over $142 million, or an alarming 60% of the companys market value. 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. Is this happening to you frequently? UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. 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. 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. 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. 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. 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. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Since there isn't much else the company can do, as it must increase student starts, it apparently is a risk it's willing to take to stem the steep decline in its student body. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Please disable your ad-blocker and refresh. 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. 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. this free report showing analyst forecasts for its future, Who's to blame? 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. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. Its also becoming harder for UTI to reach prospective students in the first place. [7], On September 27, 2016, UTI reported that its president and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as president. 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. 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. Additionally, Universal Technical Institute is opening new campuses in Miramar, Florida., and Austin, Texas and is further expanding its welding programs to 2 additional locations during the fiscal year. The share price at the end of 2003 was about $28 a share, jumping to $45.99 a share by May 3, 2004, presumably on momentum from a new CEO. 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. 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 . 2) For important information about the educational debt, earnings and completion rates of students who attended this program, visit our website atwww.uti.edu/disclosures. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. Click the button and tell us what program you're interested in! All they want is, Brianna W. said: I'm currently enrolled at Platt College! This demographic is resistant to high costs and debt. That level of sustained growth seems unlikely given the many problems facing UTIs industry. Also provided by the company are customized training programs specific to manufacturer or dealer requests. The acquisition of NTT and PTA was completed for approximately $50.2 million. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. Universal Technical Institute welcomes General Education Diploma students. 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. Adult students are even more of a challenge, as the value of education at the current price levels is being questioned as it never has been before, and that shows in the 17 percent drop in adult applications at UTI in the second quarter. 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. Get in touch with us directly. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. Along with the weak revenue is the high cost structure of the company, much of which is fixed. [4], While Universal Technical Institute in the past had limited access to military bases for student recruitment, as of 2021 it operates BMW MSTEP at Ft. Bragg, N.C.[5] and Marine Corps Base Camp Pendleton, Calif.,[6] and Premier Truck Group Technician Training at Ft. Bliss in Texas. 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. Concorde ended 2021 with approximately 7,400 students and delivered approximately. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. Presiding over this type of decline over almost a decade calls for new leadership, as other educational companies, while under similar pressures, have managed to perform much better facing the same headwinds. 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. It's always worth thinking about the different groups who own shares in a company. 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. UTI also authorized a buyback program of $25 million in 2011. Combined it resulted in the operating loss of $1.9 million in the second quarter. In 1998, it opened a campus in Rancho Cucamonga, California. Keeping things as they are won't cut it. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Media ContactAlanna Vitucciavitucci@uti.edu480.710.6843, View original content to download multimedia: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. [9] Jerome Grant was named CEO in 2019.[10]. Upon completion of the Concorde acquisition, the company will serve over 20,000 students across 14 states and 312locations. UTI has not entirely avoided allegations of wrongdoing either. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. information about your activities on our website, which is then associated with your browser, device or online identifier. Classes start on average every 3 to 6 weeks. Take 60 seconds and find out how you can get trained. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). 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. UTI welcomes General Education Diploma students. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. For one, the desirability of a career in auto maintenance seems to be declining. The 18-24 demographic, it opened a campus in Rancho Cucamonga, California the 8 cents in earnings from company. 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