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. In the 3Q14 earnings conference call, McWaters acknowledged that 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. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. They aren't always helpful and tuition way overpriced. I generally consider insider ownership to be a good thing. Special conditions may apply. Many look for medium term catalysts that will drive the share price higher. 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. 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. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. Take 60 seconds and find out how you can get trained. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. The definition of company insiders can be subjective and does vary between jurisdictions. The company recently doubled its application fee to attract higher quality applicants, which caused the number of applicants to fall 27%. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". Learn more about how we assist our veterans from VA funding to exclusive scholarships. Awards vary due to specific conditions, criteria and state. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. Forward-looking statements are neither historical facts nor assurances of future performance. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. Is this happening to you frequently? A drop to the mid-to-high single digits for new student starts is the reasoning there. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. UTI is an educational institution and cannot guarantee employment or salary. 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. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. Find out more here. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". 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? 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. Of those three veterans continue to be the most successful segment, with 21 straight quarters of. For the first half growth came in at 17 percent. Sign up here. So they usually pay more attention to companies that are included in major indices. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. Universal Technical Institute welcomes General Education Diploma students. What type of Diploma or Certificate will/did you obtain? UTI cannot guarantee employment or salary. 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. Classes start on average every 3 to 6 weeks. For more information, visit www.uti.eduor www.concorde.edu, or visit us on LinkedIn at @Universal Technical Institute and @Concorde Career Colleges or on Twitter @news_UTI or @ConcordeCareer. Most Programs Take Less Than a Year. 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. 48) The U.S. Bureau of Labor Statistics projects that total national employment for Bus and Truck Mechanics and Diesel Engine Specialists will be 305,800 by 2031. Take 60 seconds and find out how you can get trained. Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Want Technical Training? With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. This data contradicts McWaters explanation for the companys recent underperformance. These days I invest only for myself while continuing to write on a variety of financial and economic topics. You can also generally opt-out of receiving targeted ads from third party advertisers and ad networks who are members of the Network Advertising Initiative (NAI) by visiting http://optout.networkadvertising.org. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Looking at the last year, the company burnt through US$36m. 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. Universal Technical Institute, Inc. (UTI). Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. In 1983, UTI opened a campus in Houston, Texas. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. 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. We aim to bring you long-term focused analysis driven by fundamental data. Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. UTI has relationships with manufacturers of more than 35 leading brands. With 70% stake, institutions possess the maximum shares in the company. 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. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. Find out what some of our graduates are doing today in pursuing their successful careers. What type of Diploma or Certificate will/did you obtain? "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. 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. Learning is hands on so no online classes to get it done. Its also becoming harder for UTI to reach prospective students in the first place. You may opt-out by. 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 . However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. 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. This shows at least some alignment. Find the campus that matches your career goals here. UTI has relationships with manufacturers of more than 35 leading brands. this free report showing analyst forecasts for its future, Who's to blame? I have no business relationship with any company whose stock is mentioned in this article. 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. I also look forward to welcoming Jami Frazier and her talented team to the company. Student-Paid vs. Manufacturer-Paid Programs. This technology allows these advertising partners to receive If they do, the company may get a bump up in share price because of low expectations. UTI welcomes General Education Diploma students. Even so, it's the converting of applications to students that counts, and the jury is still out on whether or not that will be the outcome. 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. In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. 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. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. UTI thrived in the first couple years of the recession. Growing Distrust Deters Potential Students. 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. [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. Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside. 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. Classes and clinical experiences significant headwinds in attracting students strategy used and destroyed capital could! 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