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. All they want is, Brianna W. said: I'm currently enrolled at Platt College! The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Choose from a range of programs you need to get the technical career you want. Is this happening to you frequently? That level of sustained growth seems unlikely given the many problems facing UTIs industry. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. 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. So they usually pay more attention to companies that are included in major indices. The definition of company insiders can be subjective and does vary between jurisdictions. PHOENIX, Nov. 1, 2021 / PRNewswire / -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of trained technicians to the transportation industry, has completed its acquisition of MIAT College of Technology for a purchase price of $26 million in cash. I wrote this article myself, and it expresses my own opinions. 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. [20] In Spring of 2022, UTI opened the Austin, Texas campus. 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. The schools operated by Concorde Career Colleges are accredited by either the Accrediting Commission of Career Schools and Colleges (ACCSC) or the Council on Occupational Education (COE). We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. Talk to potential employers to learn more about the programs available in your area. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. If you are like me, you may want to think about whether this company will grow or shrink. UTI has relationships with manufacturers of more than 35 leading brands. That included fewer students applying and a 60-basis-point drop in the show rate. 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. You may opt-out by. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. PHOENIX, July 19, 2021 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of transportation technician training, today announced that it plans to report results for the third quarter of fiscal 2021 ended June 30, 2021 on Monday, August 2, 2021, after market close. You can exercise your right to opt 1.7 million+ Total technician employment expected nationally by 203138 Except for this limited sharing, UTI does not sell any of your information. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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. 1) UTI is an educational institution and cannot guarantee employment or salary. UTI has stated in its most recent conference call that it expects enrollment to continue to decline for the next several quarters, and this decline may accelerate if the tuition increases remain. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. 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. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. Since the industry has very high fixed costs, student growth and retention is basically the entire game. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. As long as the company is focused on that, the details aren't that important. With 70% stake, institutions possess the maximum shares in the company. Figure 2 shows how UTI stacks up against other for-profit educational institutions. Job openings include openings due to net employment changes and net replacements. Opinions expressed by Forbes Contributors are their own. 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. 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. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. Many look for medium term catalysts that will drive the share price higher. Since 1965, more than 230,000 students have graduated from UTI's . Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. UTI is an educational institution and cannot guarantee employment or salary. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. [21] A planned Miramar, Florida campus opened in Summer of 2022. 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. Universal Technical Institute will support Concorde's existing efforts to expand the healthcare opportunities for students and alumni, including adding new programs (pending regulatory approval), growing existing online offerings, and optimizing the current campus locations to enhance the opportunity for past, current and future students to increase their skills. These companies may use this data to serve you more relevant ads as you browse the internet. That means it had a cash runway of about 2.2 years. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. Analysts are somewhat down on the company, as they are looking for the company to lose $0.02 in earnings for the next quarter, and to drop from a prior estimate of a profit of $0.25 a share to a profit of $0.21 for the year. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. Find out more in our resources. The economy was in worse shape in 2010 than it is now, but during that year UTI had its highest enrollment and profits of the past decade. Take 60 seconds and find out how you can get trained. 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. 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. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. 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. Whether or not UTI is truly guilty of any wrongdoing, the presence of these allegations against it and for-profit schools, in general, serves as a deterrent to potential students. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. If Tennessees program is a success, the free community college initiative could spread to other states. 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. 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. In 1998, it opened a campus in Rancho Cucamonga, California. 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. The acquisition of NTT and PTA was completed for approximately $50.2 million. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. "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. One will be comprised of Concorde and its leading healthcare education programs and campuses. institution andcannot guarantee employment or salary. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. The acquisition adds campuses in Texas and Michigan and eight new . Approximately 250,000 students have graduated from one of Universal Technical Institute's 14 campuses located across Arizona, California, Florida, Illinois, Michigan, North Carolina, Pennsylvania, New Jersey, and Texas. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. 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. 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. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. 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. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. ", "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. 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? MIAT College of Technology has joined UTIs family of schools! Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Please. Special conditions may apply. For more information about cookies you can visit https://www.allaboutcookies.org. I also cant see any reason why another firm would buy out UTI. That 4% dividend yield is probably not comforting any investor who bought UTI at the beginning of the year and has lost 30% of their investment. 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." 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. There is no upside in continuing to have McWaters run the company. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. 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 . Luckily, you can check this free report showing analyst forecasts for its future. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. Find out what some of our graduates are doing today in pursuing their successful careers. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. 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. Find the campus that matches your career goals here. In response, UTI has increased its scholarship opportunities to attract new students but it has also been forced to raise tuition to prevent revenues from falling in the face of declining enrollment. UTI has not entirely avoided allegations of wrongdoing either. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. These schools, along with UTI rank at the bottom of the list in every metric. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization and adjusted for items not considered part of the company's normal recurring operations. 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. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 1) UTI is an educational institution and cannot guarantee employment or salary. Keeping things as they are won't cut it. If they do, the company may get a bump up in share price because of low expectations. Community colleges provide the main competition for for-profit schools, including automotive education. UTI cannot guarantee employment or salary. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. Some UTI graduates get jobs within their field of study in positions other than as a technician, such as: parts associate, service writer, fabricator, paint and paint prep, and shop owner/operator. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. UTI Graduation Rate by Race/Ethnicity. Along with the weak revenue is the high cost structure of the company, much of which is fixed. 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. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Come take a look at our hands-on labs with state-of-the-industry equipment and technology. 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. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 2018 Universal Technical Institute, Inc. All rights reserved. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. The California Consumer Privacy Act of 2018 (CCPA) provides California residents with specific rights regarding their personal information, including the right to opt out of any sale of such information. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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.
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