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. 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. We won't find out until next quarter whether or not that has actually translated into new student applications or not. The firm said it grew adult applications by 10 percent (year-over-year) in April, and while cautious in outlook because of it being only one month, it is the first time in a long time since adult student applications increased. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. If it is, UTI has a future, if not, the share price will continue to take a big hit. 47) The U.S. Bureau of Labor Statistics projects that total national employment for Automotive Service Technicians and Mechanics will be 743,800 by 2031. Investors should not expect the companys current buyback and dividend to continue much longer. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. Google Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. This may not be consistent with full year annual report figures. So while increasing inquiries is a good strategy, it's unclear and very uncertain with the current headwinds whether or not that can be improved in any way. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. You may opt-out by. Universal Technical Institute welcomes General Education Diploma students. UTI is an educational institution and cannot guarantee employment or salary. 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. About Universal Technical Institute, Inc. Universal Technical Institute (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand . Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside.

By submitting this form, I agree that MIAT College of Technology, Universal Technical Institute, Inc., Custom Training Group, Inc. and their representatives may email, call, and / or text me with marketing messages about educational programs and services, as well as for school-related communications, at any phone number I provide, including a wireless number, using prerecorded calls or automated technology. Contact an Admissions Representative to begin the enrollment process. The problem with that is there were eligibility requirements in place for a reason, and it could result in a negative reputation for the company over time if more students gain admittance but struggle with paying back loans they possibly shouldn't have received. Take 60 seconds and find out how you can get trained. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Media ContactAlanna Vitucciavitucci@uti.edu480.710.6843, View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html. 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. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. Choose from a range of programs you need to get the technical career you want. 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) . Talk to potential employers to learn more about the programs available in your area. rate. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. 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. Search trends for automotive education are down 10% year-over-year. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Concorde Career Colleges' 20 student-focused academic programs and personalized support prepare graduates for in-demand careers in nursing, dental, respiratory, diagnostic, and other health care roles. We can see that Universal Technical Institute does have institutional investors; and they hold a good portion of the company's stock. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. Of course, keep in mind that there are other factors to consider, too. 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. 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 .

. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). In 1988 UTI opened their Lisle, Illinois, campus. 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. I am not receiving compensation for it (other than from Seeking Alpha). Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. 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. 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. Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. 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 have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. 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. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. 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. We aim to bring you long-term focused analysis driven by fundamental data. Please. For more information, visit www.uti.eduor www.concorde.edu, or visit us on LinkedIn at @Universal Technical Institute and @Concorde Career Colleges or on Twitter @news_UTI or @ConcordeCareer. Universal Technical Institutewill discuss the acquisition in more detail and provide updated investor materials as part of its previously announced fiscal 2022 full year and fourth quarter earnings call on December 12, 2022. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. It looks like hedge funds own 14% of Universal Technical Institute shares. Divided Government And The Way Forward For The Markets, How Negativity Bias Leads To Mistakes In Portfolios, Transforming The Wealth Management Experience For Todays Client, MoneyStamps Of South America - As Investments, Theyre Different Part 1, Covid-19 Related Municipal Defaults Begin, The Dynamics Of Price Discovery In The Stamp Market, limit the amount of debt that students can take on in career-training programs, grow NOPAT by 17% compounded annually for 12 years. 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. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. All they want is, Brianna W. said: I'm currently enrolled at Platt College! 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. Universal Technical Institute was founded in 1965. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. In the second quarter that continued with a year-over-year growth rate of 14 percent. 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. In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. In this case, in addition to its dividend, UTI repurchased overvalued stock. 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. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. 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. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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. See our latest analysis for Universal Technical Institute. If you opt out, you may still see ads, but they will not be personalized based on your online activity. UTI is an educational 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. Presiding over this type of decline over almost a decade calls for new leadership, as other educational companies, while under similar pressures, have managed to perform much better facing the same headwinds. Job openings include openings due to net employment changes and net replacements. 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. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. The acquisition adds campuses in Texas and Michigan and eight new . Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. Concorde Career Collegesoperates 17 campuses across eight states under the brands Concorde Career College and Concorde Career Institute, focused on preparing America's next generation of health care and dental professionals for rewarding careers. I am a former investment advisor and owner of several businesses. I understand that my consent is not required to apply, enroll or make any purchase. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. Get in touch with us directly. information about your activities on our website, which is then associated with your browser, device or online identifier. institution andcannot guarantee employment or salary. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. We have 9 programs at 13 locations. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. Learn more about how we assist our veterans from VA funding to exclusive scholarships. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. Even so, it's the converting of applications to students that counts, and the jury is still out on whether or not that will be the outcome. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. Sign up here. Universal Technical Institute serves three student segments: high school, veterans, and adult. UTI is an educational institution and cannot guarantee employment or salary. With the acquisition of Concorde complete, the Company will operate and report as two divisions. [2], At its peak in 2011, UTI had more than 18,000 students. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. Sam McBride and Andr Rouillard contributed to this report. Any forward-looking statements made by UTI in this press release are based only on information currently available to UTI and speak only as of the date on which it is made. 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. Universal Technical Institute - Reviews. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Therefore, you should not rely on any of these forward-looking statements. Further information on these and other potential factors that could affect the financial results or condition may be found in the company's filings with the SEC. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. Forward-looking statements are neither historical facts nor assurances of future performance. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. UTI may be able to pay out a high dividend and maintain its buyback for a while, but unless it can manage a dramatic and improbable turnaround in its business, the stock will continue to fall. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. [21] A planned Miramar, Florida campus opened in Summer of 2022. Find out what some of our graduates are doing today in pursuing their successful careers. Out until next quarter whether or not automotive Service Technicians and Mechanics will 743,800. Than 18,000 students Bureau of Labor Statistics, www.bls.gov, viewed October 13, 2022 direct calling method dividend. 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