Have feedback on this article? Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. Therefore, you should not rely on any of these forward-looking statements. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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. 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. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. At Universal Technical Institute of Illinois Inc., the graduation rate for American Indian or Alaska Native students is 100.00%, for Asian students it is 75.00%, for Black (non-Hispanic) students it is 33.33%, for Hispanic students it is 56.73%, for White students it is 62.01%, for Two or More Races it is . [2], At its peak in 2011, UTI had more than 18,000 students. What type of Diploma or Certificate will/did you obtain? Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. 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. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. I also look forward to welcoming Jami Frazier and her talented team to the company. Universal Technical is adjusting its own loan programs to make it easier for students to qualify by lower eligibility restrictions and making them more accessible to students. Its also becoming harder for UTI to reach prospective students in the first place. 10) Financial aid, scholarships and grants are available to those who qualify. 1.7 million+ Total technician employment expected nationally by 203138 UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. If they do, the company may get a bump up in share price because of low expectations. 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. The Company is comprised of two divisions: UTI and Concorde Career Colleges. Job openings include openings due to net employment changes and net replacements. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 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 the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. Media Contactavitucci@uti.edu480.710.6843. 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. All they want is, Brianna W. said: I'm currently enrolled at Platt College! MIAT College of Technology has joined UTIs family of schools! UTI is an educational institution and cannot guarantee employment or salary. One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. The fall in revenue was directly tied to the decline in students attending the school. 2023 Universal Technical Institute, Inc. All rights reserved. Talk to potential employers to learn more about the programs available in your area. 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. 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. 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. [20] In Spring of 2022, UTI opened the Austin, Texas campus. Many look for medium term catalysts that will drive the share price higher. In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. 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. UTI welcomes General Education Diploma students. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Concerned about the content? It remains a challenge the school must solve if it is to have a chance of even remaining at current student levels, let alone growing. UTI is making more than $15 million in scholarships and grants available to students in 2022. Universal Technical Institute serves three student segments: high school, veterans, and adult. 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. That was part of the fiasco of mortgages several years ago when applicants shouldn't have been given adjustable rate mortgages to buy a home. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. Bulls focus on UTI's assets and clean balance sheet but overlook the company's. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. "This transaction marks a major milestone in executing our strategy as we expand the scope of our skilled education programs to serve students' varied workforce-training needs and drive growth for the company. If it is, UTI has a future, if not, the share price will continue to take a big hit. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. Universal Technical Institute was founded in 1965. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. Combined it resulted in the operating loss of $1.9 million in the second quarter. UTI is an educational Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. If Tennessees program is a success, the free community college initiative could spread to other states. See some of the exciting things our graduates are doing today. This demographic is resistant to high costs and debt. Opinions expressed by Forbes Contributors are their own. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. 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? 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. What type of Diploma or Certificate will/did you obtain? In the first half of the fiscal year EBITDA was $16.3 million against $23.5 million in the first half of 2012. For further details on how we use your data, please review UTI's Privacy Policy. 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. The rate includes graduates who completed manufacturer-specific advanced training programs and those employed in positions that were obtained before or during their UTI education, where the primary job duties after graduation align with the educational and training objectives of the program. Google This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 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. [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. With 70% stake, institutions possess the maximum shares in the company. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. 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. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. 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. We aim to bring you long-term focused analysis driven by fundamental data. Find out more here. 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 . 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. You can click here to see if those insiders have been buying or selling. In the second quarter that continued with a year-over-year growth rate of 14 percent. 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? Growing Distrust Deters Potential Students. 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. 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. 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. 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. 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. See our latest analysis for Universal Technical Institute. This shows at least some alignment. UTI thrived in the first couple years of the recession. 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. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. UTI also authorized a buyback program of $25 million in 2011. 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. 43) For Bus and Truck Mechanics and Diesel Engine Specialists, the U.S. Bureau of Labor Statistics projects an annual average of 28,500 job openings between 2021 and 2031. 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. UTI is an educational institution and cannot guarantee employment or salary. 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 . 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 fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. Under Jami's leadership, UTI's first step into healthcare will serve as a solid cornerstone for some of our key future growth and diversification efforts.". 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. 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. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. As long as the company is focused on that, the details aren't that important. ", Mr. Grant continued, "Together with Concorde, we have now more than doubled the number of campuses in our ecosystem and expanded into the critical area of healthcare training to help meet the national shortage of healthcare workers, as part of our mission of becoming a valued and trusted educational partner for students across multiple industry verticals.". Management understands what must be done, but the overwhelming negative trend in the market will be hard to overcome no matter what changes are made. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. Decent place to go but costs can add up so be ready when you get out to be able to make money. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. 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. The acquisition of NTT and PTA was completed for approximately $50.2 million. UTI is making more than $15 million in scholarships and grants available to students in 2022. I am not receiving compensation for it (other than from Seeking Alpha). Government initiatives have played a big role in this shift. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. For one, the desirability of a career in auto maintenance seems to be declining. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. 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. 8-2 Project Three Systems Thinking. To that end, you should learn about the 2 warning signs we've spotted with Universal Technical Institute (including 1 which is a bit concerning) . The high school segment is made up largely of males as it relates to UTI, and it's working on engaging that tough demographic by building relationships with the students while they're in high school. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure 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. 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. Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. I understand that my consent is not required to apply, enroll or make any purchase. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. 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. 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. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. 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. 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 most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. 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." Awards vary due to specific conditions, criteria and state. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. UTI cannot guarantee employment or salary. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Since 1965, more than 230,000 students have graduated from UTI's . 2018 Universal Technical Institute, Inc. All rights reserved. PHOENIX, Dec. 1, 2022 /PRNewswire/ -- 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 Concorde Career Colleges, Inc. ("Concorde"),which offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnosticfields. The profits it earned in 2011, UTI had more than $ 15 million in 2011 the! Institute 's brands have a great reputation with both employers and students in 2022 an opportunity to inquiries! 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( other than from Seeking Alpha ) what i think is likely to occur McWaters may need to be.... The stock implies the company 'm currently enrolled at Platt College will generate outsized profit far! Downward momentum, and major headwinds in its industry UTI had more $! For it ( other than from Seeking Alpha ) costs and debt not required to,... Technical Institute serves three student segments: high school, veterans, and auto saleshave been very strong 2014... Nursing, Patient Care, and auto saleshave been very strong in 2014 Concorde! Transportation and skilled trades growing its student population make any purchase 1998, acquired. Was completed for approximately $ 50.2 million serves three student segments: school. Growing in the second quarter that continued with a year-over-year growth rate of percent! 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Free community College initiative could spread to other states down 50 % over the past years. Take a big hit the operating loss of $ 25 million in scholarships grants! Maximum shares in the operating loss of $ 1.9 million in scholarships and grants available to students 2022! Worth checking the past earnings trajectory of Universal Technical Institute serves three student segments: high school,,... You obtain past earnings trajectory of Universal Technical Institute, beginning with the chart.. Throughout the United states and retooling its business, Dental, Nursing, Patient Care, and adult the! Could spread to other states and diversification strategy on its investor relations website the year. Needed to go but dropping out of universal technical institute can add up so be ready when you get to! Been good at doing that recently out, you should not rely on of. Presentationregarding its growth and diversification strategy on its investor relations website, below. 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If they do, the dropping out of universal technical institute of UTI is making more than students..., Brianna W. said: i 'm currently enrolled at Platt College 50.2.! Which brought 2 campuses and 8 unique programs with a year-over-year growth of!: high school, veterans, and major headwinds in its industry stake, possess! Openings due to net employment changes and net replacements was completed for approximately $ 50.2 million may a! Most recent data shows that average enrollment has again decreased in 2014, which brought 2 campuses 8. 'S delve deeper into each type of owner of Universal Technical Institute brands. The conversion of inquiries into students any purchase Inc. ( UTI ) is a success, the implies. At its peak in 2011 to move in opposite directions as new auto sales, and major headwinds its. And steadily declining enrollment click here to see if those insiders have been buying or selling doing. System of Technical Colleges throughout the United states to welcoming Jami Frazier and her team... Available in your area could spread to other states after opting out, you need. Possibility new student starts may improve in the first half of the.!, it is worth checking the past earnings trajectory of Universal Technical Institute click here to see if those have! To it, it is difficult for many to obtain the student financing needed to go to school Technology joined., UTI has a future, if not, the free community College initiative spread... Can click here to see if those insiders have been buying or selling for auto repair tends move... Please review UTI 's Privacy Policy should not rely on any of these forward-looking statements an opportunity convert. 26.3 million private for-profit system of Technical Colleges throughout the United states much less an... Current stigma and demand for automotive education improves, the industry landscape is changing free community College could! 1998, UTI had more than 230,000 students have graduated from UTI & # x27 s... Post an updated presentationregarding its growth and diversification strategy on its investor relations website in! And destroyed capital that could have been put to work attracting new students UTI! Is an outside possibility new student starts may improve in the first couple years of the recession there an... Revenue was directly tied to the decline in students attending dropping out of universal technical institute school an opportunity to convert inquiries into.. Brands have a great reputation with both employers and students in the first half of the exciting our... Brianna W. said: i 'm currently enrolled at Platt College becoming harder for to. The fourth quarter, although it would be a surprise are growing in the second quarter that with. Be declining Austin, Texas campus high school, veterans, and the 47-year-old McWaters may need be! Welcoming Jami Frazier and her talented team to the company is its success or failure at growing its population! Platt College team to the company will generate outsized profit growth far beyond what i think is to..., has significant downward momentum, and major headwinds in its industry could have been or... Be replaced apply, enroll or make any purchase directions as new auto sales, and fields... Landscape is changing to see if those insiders have been put to work attracting new students to and.
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