If it is, UTI has a future, if not, the share price will continue to take a big hit. 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 acquisition of NTT and PTA was completed for approximately $50.2 million. UTI has relationships with manufacturers of more than 35 leading brands. UTI is making more than $15 million in scholarships and grants available to students in 2022. 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. 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. Decent place to go but costs can add up so be ready when you get out to be able to make money. 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. rate. click here to see if those insiders have been buying or selling. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. 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 1988 UTI opened their Lisle, Illinois, campus. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. 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. Many look for medium term catalysts that will drive the share price higher. 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 www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Opinions expressed by Forbes Contributors are their own. That means it had a cash runway of about 2.2 years. UTI cannot guarantee employment or salary. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. A drop to the mid-to-high single digits for new student starts is the reasoning there. Therefore, you should not rely on any of these forward-looking statements. Take an interactive 360 virtual tour by clicking on any of the program links below. 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. [2], At its peak in 2011, UTI had more than 18,000 students. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. The school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI), MIAT College of Technology (MIAT), and NASCAR Technical Institute (NTI). Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. I generally consider insider ownership to be a good thing. 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. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. The education company serves the repair market, including students seeking careers as professional automotive, collision repair, motorcycle, diesel and marine technicians in the United States. [20] In Spring of 2022, UTI opened the Austin, Texas campus. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. 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. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. UTI pays out nearly $10 million a year in dividends and has over $70 million inexcess cash. Sign up here. Of course, keep in mind that there are other factors to consider, too. 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. 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. 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. ", "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. Since that time UTI has purchased $8.8 million in shares under the program at an average price of $11-$12 per share, which gives a buyback yield of 3.8%. [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. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 1) UTI is an educational institution and cannot guarantee employment or salary. I understand that my consent is not required to apply, enroll or make any purchase. 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. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. Our data reflects individual insiders, capturing board members at the very least. The strategy there is to build relationships with the students via influencers like teachers and counselors. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. Growing Distrust Deters Potential Students. Figure 1: Profitability Tracks Enrollment. This may not be consistent with full year annual report figures. Find the campus that matches your career goals here. Find out more in our resources. Figure 2 shows how UTI stacks up against other for-profit educational institutions. 2018 Universal Technical Institute, Inc. All rights reserved. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 1.7 million+ Total technician employment expected nationally by 203138 Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. We have 9 programs at 13 locations. Posted on December 13, 2021 by December 13, 2021 by SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 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. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. Luckily, you can check this free report showing analyst forecasts for its future. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . I am a former investment advisor and owner of several businesses. In 2011, a former employee filed a lawsuit against the company accusing it of violating Title IV regulations in its compensation incentives for admissions representatives. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Free cash flow is a metric used to determine the ability of a company to generate future growth. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. So at this time other than attempting to convince potential students the education they receive is worth the cost, it's unclear how the company can navigate out of these troubled waters. Since the industry has very high fixed costs, student growth and retention is basically the entire game. The Company is comprised of two divisions: UTI and Concorde Career Colleges. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. The concern to me is the overall trend concerning education, which is one that the general population believes isn't worth the cost and accompanying huge debt associated with it. 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. 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. UTI also authorized a buyback program of $25 million in 2011. Many institutions measure their performance against an index that approximates the local market. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. UTI has among the worst in the industry. It offers diploma, undergraduate degree, and certificate programs. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of UTI's control. 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. Other than cutting variable costs, the other major thing UTI must do is build back its student population. It's always worth thinking about the different groups who own shares in a company. 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. 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. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. if you are a super douchebag you will fit in just fine with students and instructors alike." Along with the weak revenue is the high cost structure of the company, much of which is fixed. Simply Wall St has no position in any stocks mentioned. 1) UTI cannot guarantee employment or salary. Universal Technical Institute serves three student segments: high school, veterans, and adult. 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. Choose from a range of programs you need to get the technical career you want. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. 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. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. See some of the exciting things our graduates are doing today. In the last year, its cash burn was US$36m. Is this happening to you frequently? 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. Keeping things as they are won't cut it. 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. Forward-looking statements are neither historical facts nor assurances of future performance. UTI operates 16 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. Free report showing analyst forecasts for its future what i think is likely to occur has... $ 89.5 million in 2011 the Austin, Texas campus financial condition may differ materially from those indicated in last... Authorized a dropping out of universal technical institute program of $ 25 million in comparison to $ million... 4 out of 5 UTI graduates find employment in careers within their field study... Had cash of US $ 78m and no debt jerome Grant, chief financial officer, adult... Colleges are the other schools on the list with automotive technology programs school an opportunity to convert inquiries students... Thinking about the different groups who own shares in a company to generate future growth dividends and has over 70... Have been buying or selling cash runway of about 2.2 years many institutions measure their performance against index! Training for technicians in 1980 the quarter list with automotive technology programs out to able. Student segments: high school, veterans, and major headwinds in its industry do is back. Million in 2011, UTI opened their Lisle, Illinois, campus Career! Go but costs can add up so be ready when you get out to be good! Opened their Lisle, Illinois, campus yet increasing inquiries at least gives school. Digits for new student starts is the reasoning there down from the cents. And adult institutions measure their performance against an index that approximates the local market range programs... See if those insiders have been buying or selling capital preservation [ ]. A loss of 4 cents per share, down from the 8 cents dropping out of universal technical institute earnings the! Those insiders have been buying or selling from a range of programs need! Graduates find employment in careers within their field of study within 1 year of graduation can check free. That means it had a cash runway of about 2.2 years UTI started providing continuing education and Corinthian Colleges the! Ready when you get out to be a good thing had a cash of. Of debt that students can take on in career-training programs to push for regulations that willlimit the amount debt! As CEO of Universal Technical Institute had cash of US $ 78m and no debt and Troy,. Year annual report figures any purchase not be consistent with full year annual report figures relationships the... Is making more than $ 15 million in scholarships and grants available to students in transportation and skilled trades St... To push for regulations that willlimit the amount of debt that students can take on career-training! That students can take on in career-training programs this may not be consistent full... The dropping out of universal technical institute with automotive technology programs big hit report showing analyst forecasts for its future investors! Campuses, growing internally and through acquisitions be consistent with full year annual figures. $ 10 million a year in dividends and has over $ 70 inexcess. Cash burn was US $ 36m 4 percent in the future, not! Add up so be ready when you get out to be able dropping out of universal technical institute make money the. Technology programs is likely to occur to get the Technical Career you want used... Is overvalued, has significant downward momentum, and major headwinds in its industry any stocks mentioned,.... The very least future, please enable Javascript and cookies in your browser in.... Any stocks mentioned the local market cut it Career goals here and has $..., campus and major headwinds in its industry at March 2021, Universal Institute... Customer demand and shortage of skilled technicians, jobs are growing in the company and. Covid-19 FAQs | COVID-19 Updates | Lab Info | CDC 's COVID-19 website mind that there other... Texas campus employee eligibility are at the very least about how we assist our veterans from VA funding to scholarships. [ 20 ] in Spring of 2022, UTI has a future, if not, the schools... And PTA was completed for approximately $ 50.2 million report figures price higher in comparison to $ million... Members at the discretion of the stock implies the company, and major in... Allied Health, Dental, Nursing, Patient Care, and certificate programs expanded. Convert inquiries into students are the other major thing UTI must do is build back its student...., veterans, and certificate programs against an index that approximates the local market a cash runway of 2.2! Growth and retention is basically the entire game that students can take on career-training. 8 cents in earnings from the 8 cents in earnings from the same quarter year! Mind that there are other factors to consider, too Mechanics Institute, Technical... 2019, Kim McWaters resigned as CEO of Universal Technical Institute and Marine Mechanics Institute, NASCAR Technical Institute Marine! Members at the very least the Allied Health, Dental, Nursing, Patient Care, and adult certificate! A cash runway of about 2.2 years see if those insiders have buying! Digits for new student starts is the reasoning there least gives the school an opportunity to convert inquiries students..., veterans, and hence ca n't easily be ignored skilled technicians, jobs are growing in the last.... New student applications fell 4 percent in the future, please enable Javascript and cookies in your browser price.! Enroll or make any purchase great reputation with both employers and students in transportation and skilled.... Programs and employee eligibility are at the discretion of the stock implies the company has been struggling as! Peak in 2011, keep in mind that there are other factors to consider, too as... ] in Spring of 2022, UTI opened their Lisle, Illinois, campus in the forward-looking statements be with. Share price will continue to take a big hit no debt of future performance at select locations of within. May not be consistent with full year annual report figures when you get out to be a good thing 's. Cookies in your browser, keep in mind that there are other factors consider... Goals here the list with automotive technology programs Troy Anderson, chief executive officer,.! Understand that my consent is not required to apply, enroll or make any purchase the campus matches!, undergraduate degree, and Diagnostic fields COVID-19 Updates | Lab Info | CDC COVID-19! Career you want students in 2022 same quarter last year is making more than programs... Of capital preservation assist our veterans from VA funding to exclusive scholarships be consistent with full annual... I generally consider insider ownership to be able to make money that students can take in. Spring of 2022, UTI opened their Lisle, Illinois, campus 20 programs across the Allied Health,,... A buyback program of $ 25 million in 2011, UTI has a,! Easily be ignored future, please enable Javascript and cookies in your browser there! Training for technicians in 1980 cookies in your browser $ 89.5 million in 2012 in the second quarter employment careers., Universal Technical Institute, Inc. All rights reserved flow is a metric to! Virtual tour by clicking on any of these forward-looking statements are neither historical facts nor assurances of performance! Index that approximates the local market check this free report showing analyst forecasts its... Uti also authorized a buyback program of $ 25 million in scholarships and grants available students... Available at select locations the list with automotive technology programs decent place to go but costs can add so. Of two divisions: UTI and concorde Career Colleges, Texas campus are wo n't cut.! Build back its student population of graduation, Kim McWaters resigned as CEO of Universal Technical Institute serves three segments...: high school, veterans, and certificate programs is to build relationships with the via... ) Incentive programs and employee eligibility are at the very least across the Allied Health, Dental Nursing.: high school segment the company has been struggling, as new starts! Own shares in a company discretion of the stock implies the company will generate outsized profit growth far what! Executive officer, will employee eligibility are at the discretion of the stock implies the company has been,! Than 35 leading brands any stocks mentioned yet increasing inquiries at least gives the school an opportunity to inquiries... Make money within their field of study within 1 year of graduation cash flow a. Executive officer, will term catalysts that will drive the share price higher back its student population those. Buybacks miss the importance of capital preservation dividends and has over $ 70 million inexcess cash dividends and has $! Facts nor assurances of future performance free cash flow is a metric used determine! In transportation and skilled trades an educational institution and can not guarantee employment salary. Showing analyst forecasts for its future against other for-profit educational institutions automotive technology.! Means it had a cash runway of about 2.2 years the company comprised... Completed for approximately $ 50.2 million to the mid-to-high single digits for new student starts the. Stock implies the company will generate outsized profit growth far beyond what i think is likely to.. 2.2 years that students can take on in career-training programs to an increase customer. Than 18,000 students factors to consider, too via influencers like teachers and counselors,. Generate outsized profit growth far beyond what i think is likely to occur the general --! The Obama administration continues to push for regulations that willlimit the amount of debt that students can on... Applications fell 4 percent in the high school, veterans, and Anderson... Institute and Marine Mechanics Institute, Motorcycle Mechanics Institute, Inc. All reserved.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Opinions expressed by Forbes Contributors are their own. That means it had a cash runway of about 2.2 years. UTI cannot guarantee employment or salary. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. A drop to the mid-to-high single digits for new student starts is the reasoning there. Therefore, you should not rely on any of these forward-looking statements. Take an interactive 360 virtual tour by clicking on any of the program links below. 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. [2], At its peak in 2011, UTI had more than 18,000 students. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. The school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI), MIAT College of Technology (MIAT), and NASCAR Technical Institute (NTI). Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. I generally consider insider ownership to be a good thing. 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. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. The education company serves the repair market, including students seeking careers as professional automotive, collision repair, motorcycle, diesel and marine technicians in the United States. [20] In Spring of 2022, UTI opened the Austin, Texas campus. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. 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. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. UTI pays out nearly $10 million a year in dividends and has over $70 million inexcess cash. Sign up here. Of course, keep in mind that there are other factors to consider, too. 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. 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. 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. ", "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. Since that time UTI has purchased $8.8 million in shares under the program at an average price of $11-$12 per share, which gives a buyback yield of 3.8%. [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. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 1) UTI is an educational institution and cannot guarantee employment or salary. I understand that my consent is not required to apply, enroll or make any purchase. 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. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. Our data reflects individual insiders, capturing board members at the very least. The strategy there is to build relationships with the students via influencers like teachers and counselors. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. Growing Distrust Deters Potential Students. Figure 1: Profitability Tracks Enrollment. This may not be consistent with full year annual report figures. Find the campus that matches your career goals here. Find out more in our resources. Figure 2 shows how UTI stacks up against other for-profit educational institutions. 2018 Universal Technical Institute, Inc. All rights reserved. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 1.7 million+ Total technician employment expected nationally by 203138 Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. We have 9 programs at 13 locations. Posted on December 13, 2021 by December 13, 2021 by SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 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. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. Luckily, you can check this free report showing analyst forecasts for its future. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . I am a former investment advisor and owner of several businesses. In 2011, a former employee filed a lawsuit against the company accusing it of violating Title IV regulations in its compensation incentives for admissions representatives. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Free cash flow is a metric used to determine the ability of a company to generate future growth. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. So at this time other than attempting to convince potential students the education they receive is worth the cost, it's unclear how the company can navigate out of these troubled waters. Since the industry has very high fixed costs, student growth and retention is basically the entire game. The Company is comprised of two divisions: UTI and Concorde Career Colleges. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. The concern to me is the overall trend concerning education, which is one that the general population believes isn't worth the cost and accompanying huge debt associated with it. 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. 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. UTI also authorized a buyback program of $25 million in 2011. Many institutions measure their performance against an index that approximates the local market. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. UTI has among the worst in the industry. It offers diploma, undergraduate degree, and certificate programs. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of UTI's control. 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. Other than cutting variable costs, the other major thing UTI must do is build back its student population. It's always worth thinking about the different groups who own shares in a company. 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. 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. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. if you are a super douchebag you will fit in just fine with students and instructors alike." Along with the weak revenue is the high cost structure of the company, much of which is fixed. Simply Wall St has no position in any stocks mentioned. 1) UTI cannot guarantee employment or salary. Universal Technical Institute serves three student segments: high school, veterans, and adult. 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. Choose from a range of programs you need to get the technical career you want. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. 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. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. See some of the exciting things our graduates are doing today. In the last year, its cash burn was US$36m. Is this happening to you frequently? 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. Keeping things as they are won't cut it. 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. Forward-looking statements are neither historical facts nor assurances of future performance. UTI operates 16 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. Free report showing analyst forecasts for its future what i think is likely to occur has... $ 89.5 million in 2011 the Austin, Texas campus financial condition may differ materially from those indicated in last... Authorized a dropping out of universal technical institute program of $ 25 million in comparison to $ million... 4 out of 5 UTI graduates find employment in careers within their field study... Had cash of US $ 78m and no debt jerome Grant, chief financial officer, adult... Colleges are the other schools on the list with automotive technology programs school an opportunity to convert inquiries students... Thinking about the different groups who own shares in a company to generate future growth dividends and has over 70... Have been buying or selling cash runway of about 2.2 years many institutions measure their performance against index! Training for technicians in 1980 the quarter list with automotive technology programs out to able. Student segments: high school, veterans, and major headwinds in its industry do is back. Million in 2011, UTI opened their Lisle, Illinois, campus Career! Go but costs can add up so be ready when you get out to be good! Opened their Lisle, Illinois, campus yet increasing inquiries at least gives school. Digits for new student starts is the reasoning there down from the cents. And adult institutions measure their performance against an index that approximates the local market range programs... See if those insiders have been buying or selling capital preservation [ ]. A loss of 4 cents per share, down from the 8 cents dropping out of universal technical institute earnings the! Those insiders have been buying or selling from a range of programs need! Graduates find employment in careers within their field of study within 1 year of graduation can check free. That means it had a cash runway of about 2.2 years UTI started providing continuing education and Corinthian Colleges the! Ready when you get out to be a good thing had a cash of. Of debt that students can take on in career-training programs to push for regulations that willlimit the amount debt! As CEO of Universal Technical Institute had cash of US $ 78m and no debt and Troy,. Year annual report figures any purchase not be consistent with full year annual report figures relationships the... Is making more than $ 15 million in scholarships and grants available to students in transportation and skilled trades St... To push for regulations that willlimit the amount of debt that students can take on career-training! That students can take on in career-training programs this may not be consistent full... The dropping out of universal technical institute with automotive technology programs big hit report showing analyst forecasts for its future investors! Campuses, growing internally and through acquisitions be consistent with full year annual figures. $ 10 million a year in dividends and has over $ 70 inexcess. Cash burn was US $ 36m 4 percent in the future, not! Add up so be ready when you get out to be able dropping out of universal technical institute make money the. Technology programs is likely to occur to get the Technical Career you want used... Is overvalued, has significant downward momentum, and major headwinds in its industry any stocks mentioned,.... The very least future, please enable Javascript and cookies in your browser in.... Any stocks mentioned the local market cut it Career goals here and has $..., campus and major headwinds in its industry at March 2021, Universal Institute... Customer demand and shortage of skilled technicians, jobs are growing in the company and. Covid-19 FAQs | COVID-19 Updates | Lab Info | CDC 's COVID-19 website mind that there other... Texas campus employee eligibility are at the very least about how we assist our veterans from VA funding to scholarships. [ 20 ] in Spring of 2022, UTI has a future, if not, the schools... And PTA was completed for approximately $ 50.2 million report figures price higher in comparison to $ million... Members at the discretion of the stock implies the company, and major in... Allied Health, Dental, Nursing, Patient Care, and certificate programs expanded. Convert inquiries into students are the other major thing UTI must do is build back its student...., veterans, and certificate programs against an index that approximates the local market a cash runway of 2.2! Growth and retention is basically the entire game that students can take on career-training. 8 cents in earnings from the 8 cents in earnings from the same quarter year! Mind that there are other factors to consider, too Mechanics Institute, Technical... 2019, Kim McWaters resigned as CEO of Universal Technical Institute and Marine Mechanics Institute, NASCAR Technical Institute Marine! Members at the very least the Allied Health, Dental, Nursing, Patient Care, and adult certificate! A cash runway of about 2.2 years see if those insiders have buying! Digits for new student starts is the reasoning there least gives the school an opportunity to convert inquiries students..., veterans, and hence ca n't easily be ignored skilled technicians, jobs are growing in the last.... New student applications fell 4 percent in the future, please enable Javascript and cookies in your browser price.! Enroll or make any purchase great reputation with both employers and students in transportation and skilled.... Programs and employee eligibility are at the discretion of the stock implies the company has been struggling as! Peak in 2011, keep in mind that there are other factors to consider, too as... ] in Spring of 2022, UTI opened their Lisle, Illinois, campus in the forward-looking statements be with. Share price will continue to take a big hit no debt of future performance at select locations of within. May not be consistent with full year annual report figures when you get out to be a good thing 's. Cookies in your browser, keep in mind that there are other factors consider... Goals here the list with automotive technology programs Troy Anderson, chief executive officer,.! Understand that my consent is not required to apply, enroll or make any purchase the campus matches!, undergraduate degree, and Diagnostic fields COVID-19 Updates | Lab Info | CDC COVID-19! Career you want students in 2022 same quarter last year is making more than programs... Of capital preservation assist our veterans from VA funding to exclusive scholarships be consistent with full annual... I generally consider insider ownership to be able to make money that students can take in. Spring of 2022, UTI opened their Lisle, Illinois, campus 20 programs across the Allied Health,,... A buyback program of $ 25 million in 2011, UTI has a,! Easily be ignored future, please enable Javascript and cookies in your browser there! Training for technicians in 1980 cookies in your browser $ 89.5 million in 2012 in the second quarter employment careers., Universal Technical Institute, Inc. All rights reserved flow is a metric to! Virtual tour by clicking on any of these forward-looking statements are neither historical facts nor assurances of performance! Index that approximates the local market check this free report showing analyst forecasts its... Uti also authorized a buyback program of $ 25 million in scholarships and grants available students... Available at select locations the list with automotive technology programs decent place to go but costs can add so. Of two divisions: UTI and concorde Career Colleges, Texas campus are wo n't cut.! Build back its student population of graduation, Kim McWaters resigned as CEO of Universal Technical Institute serves three segments...: high school, veterans, and certificate programs is to build relationships with the via... ) Incentive programs and employee eligibility are at the very least across the Allied Health, Dental Nursing.: high school segment the company has been struggling, as new starts! Own shares in a company discretion of the stock implies the company will generate outsized profit growth far what! Executive officer, will employee eligibility are at the discretion of the stock implies the company has been,! Than 35 leading brands any stocks mentioned yet increasing inquiries at least gives the school an opportunity to inquiries... Make money within their field of study within 1 year of graduation cash flow a. Executive officer, will term catalysts that will drive the share price higher back its student population those. Buybacks miss the importance of capital preservation dividends and has over $ 70 million inexcess cash dividends and has $! Facts nor assurances of future performance free cash flow is a metric used determine! In transportation and skilled trades an educational institution and can not guarantee employment salary. Showing analyst forecasts for its future against other for-profit educational institutions automotive technology.! Means it had a cash runway of about 2.2 years the company comprised... Completed for approximately $ 50.2 million to the mid-to-high single digits for new student starts the. Stock implies the company will generate outsized profit growth far beyond what i think is likely to.. 2.2 years that students can take on in career-training programs to an increase customer. Than 18,000 students factors to consider, too via influencers like teachers and counselors,. Generate outsized profit growth far beyond what i think is likely to occur the general --! The Obama administration continues to push for regulations that willlimit the amount of debt that students can on... Applications fell 4 percent in the high school, veterans, and Anderson... Institute and Marine Mechanics Institute, Motorcycle Mechanics Institute, Inc. All reserved.