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. 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. Simply Wall St has no position in any stocks mentioned. The acquisition of NTT and PTA was completed for approximately $50.2 million. 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. 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. This may not be consistent with full year annual report figures. 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. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. Awards vary due to specific conditions, criteria and state. 1) UTI is an educational institution and cannot guarantee employment or salary. UTI has struggled in recent years. With negative free cash flow to price of $-0.49 per share, it's hard to see how UTI expects to grow in the future. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 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. out by completing and submitting the form below. In the first half of the fiscal year EBITDA was $16.3 million against $23.5 million in the first half of 2012. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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 . In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. In the second quarter that continued with a year-over-year growth rate of 14 percent. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, and to review the applicable Gainful Employment disclosure, visit our website at www.uti.edu/disclosures. If you opt out, you may still see ads, but they will not be personalized based on your online activity. Under some state laws, this data I understand that my consent is not required to apply, enroll or make any purchase. Forward-looking statements are neither historical facts nor assurances of future performance. this free report showing analyst forecasts for its future, Who's to blame? With 70% stake, institutions possess the maximum shares in the. Growing Distrust Deters Potential Students. Google Take 60 seconds and find out how you can get trained. 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) . Is the Trade School Industry a Sinking Ship? Learn more about how we assist our veterans from VA funding to exclusive scholarships. 1.7 million+ Total technician employment expected nationally by 203138 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. Universal Technical Institute serves three student segments: high school, veterans, and adult. This is a BETA experience. It's always worth thinking about the different groups who own shares in a company. If you have an ad-blocker enabled you may be blocked from proceeding. As I write the share price of the company is at $11.26. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. In the last year, its cash burn was US$36m. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. On arecent conference call, CEO Kimberly McWaters offered the explanation that Lingering effects of the great recession have impacted consumer confidence in the job market and made them question the value of an education.. 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? I understand that my consent is not required to apply, enroll or make any purchase. If they do, the company may get a bump up in share price because of low expectations. MIAT College of Technology has joined UTIs family of schools! Find out more in our resources. 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. Universal Technical Institute serves three student segments: high school, veterans, and adult. 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? By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 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. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. 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. Jerome Grant will continue to directly lead this division until a Divisional President is named. To that end the company hasn't done too badly, as it has been able to cut advertising costs by 8 percent while boosting the number of people checking out what the school has to offer. 2018 Universal Technical Institute, Inc. All rights reserved. Every investor in Universal Technical Institute, Inc. ( NYSE:UTI) should be aware of the most powerful shareholder groups. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. 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. 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. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. If it is, UTI has a future, if not, the share price will continue to take a big hit. 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. Forward-looking statements are neither historical facts nor assurances of future performance. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. Job openings include openings due to net employment changes and net replacements. 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. Keeping things as they are won't cut it. 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. While UTI likes to trumpet its 80% job placement rate, it is difficult for students pay off loans of almost $50,000 for tuition and living costs on an entry-level mechanics salary. All they want is, Brianna W. said: I'm currently enrolled at Platt College! 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. Universal Technical Institute, Inc. (UTI). 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. I wrote this article myself, and it expresses my own opinions. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. 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. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. Most Programs Take Less Than a Year. That included fewer students applying and a 60-basis-point drop in the show rate. Choose from a range of programs you need to get the technical career you want. Universal Technical Institute (NYSE:UTI) has been struggling lately, and there's little to suggest this stock is going to recover anytime soon, making it a good candidate to short or get out of altogether. UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. 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. 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. 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By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at .

. 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. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 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. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. 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. 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. Talk to potential employers to learn more about the programs available in your area. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. rate. 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%. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI Graduation Rate by Race/Ethnicity. Want Technical Training? As a result, the company is likely to default on the promises implied by the stocks lofty valuation. 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. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. 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. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. 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. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. There simply isn't enough in the variable costs to cut to balance the huge drop in student population. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. They aren't always helpful and tuition way overpriced. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 . Investors should not expect the companys current buyback and dividend to continue much longer. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Find out what some of our graduates are doing today in pursuing their successful careers. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. The ongoing high fixed costs, which can't be managed, is what makes UTI such a risk to own if investors want any type of growth. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. Previous guidance from UTI was confirmed in its latest earnings report, with the company expecting revenues to drop into the high single-digits in 2013. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. click here to see if those insiders have been buying or selling. Of US $ 36m one year of their graduation date forward-looking statements are dropping out of universal technical institute historical facts assurances! 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