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. It doesn't matter how it is done, just that it must be done. All they want is, Brianna W. said: I'm currently enrolled at Platt College! UTI cannot guarantee employment or salary. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. See our latest analysis for Universal Technical Institute. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. But to understand Universal Technical Institute better, we need to consider many other factors. Over the last 12 months (TTM) the gross margin is 48.5 percent, operating margin is 3.6 percent, and net margin is 2.0 percent. Choose from a range of programs you need to get the technical career you want. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. This technology allows these advertising partners to receive
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. Dividends Cannot Protect You From A Big Drop In the Stock Price. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. KAlice S. said: My husband and I were previous students here so we were ready and, Wrecks N. said: This place is the worst place to get an education. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. Figure 1: Profitability Tracks Enrollment. The NTT business was discontinued at a loss of $42.9 million. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Talk to potential employers to learn more about the programs available in your area. It may take several years before the current efforts bear fruit, if they do at all. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. This scenario assumes a consistent level of profitability as the company achieved over the past two years, as UTI would continue to earn its current 6% return on invested capital (ROIC). Get in touch with us directly. With 70% stake, institutions possess the maximum shares in the. I wrote this article myself, and it expresses my own opinions. Upon completion of the Concorde acquisition, the company will serve over 20,000 students across 14 states and 312locations. It might appear that UTI could justify a higher valuation based on the assets on its balance sheet, but such thinking ignores the impact of over $142 million inoff-balance sheet debt. Universal Technical Institute was founded in 1965. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. Please. Enrollment has been declining since then. I have no business relationship with any company whose stock is mentioned in this article. Bulls focus on UTI's assets and clean balance sheet but overlook the company's. This shows at least some alignment. 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. This data contradicts McWaters explanation for the companys recent underperformance. 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. 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. Find the campus that matches your career goals here. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. Investors should not expect the companys current buyback and dividend to continue much longer. You can exercise your right to opt Under some state laws, this data In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. Special conditions may apply. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. Concorde Career Colleges is a leading provider of healthcare education programs focused on preparing students for successful professions in the healthcare sector, which is expected to add about 2.6 million new jobs over the next decade due to attrition in the workforce along with an aging population that is expected to drive increased demand for healthcare services.1 The company offers diploma and degree programs across nursing, dental hygiene, and other direct patient care fields including physical therapy assistant and respiratory therapy, as well as allied health including medical and dental assisting and healthcare administration. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. In this case, in addition to its dividend, UTI repurchased overvalued stock. You can click here to see if those insiders have been buying or selling. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation's skills gap," said Concorde CEO Jami Frazier. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. 48) The U.S. Bureau of Labor Statistics projects that total national employment for Bus and Truck Mechanics and Diesel Engine Specialists will be 305,800 by 2031. 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. UTI cannot guarantee employment or salary. Universal Technical Institute - Reviews. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". Therefore, you should not rely on any of these forward-looking statements. Learn more about how we assist our veterans from VA funding to exclusive scholarships. One will be comprised of Concorde and its leading healthcare education programs and campuses. 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. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. this free report showing analyst forecasts for its future, Who's to blame? Net Price $21,726 / year National $15,523 Average cost after financial aid for students receiving grant or scholarship aid, as reported by the college. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. 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. UTI thrived in the first couple years of the recession. In 1983, UTI opened a campus in Houston, Texas. SOURCE Universal Technical Institute, Inc. Concorde Career Colleges, Inc. ("Concorde"), 2022 full year and fourth quarter earnings call on, https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html, Stock market news live updates: Stock futures stagnant as earnings season picks up, Who's to blame? [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. These schools, along with UTI rank at the bottom of the list in every metric. 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. Find out what some of our graduates are doing today in pursuing their successful careers. Management understands what must be done, but the overwhelming negative trend in the market will be hard to overcome no matter what changes are made. Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. 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. 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. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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. 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. That's interesting, because hedge funds can be quite active and activist. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. As I write the share price of the company is at $11.26. If you opt out, you may still see ads, but they will not be personalized based on your online activity. PTA organized lecture training seminars in markets similar to NTT. 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. It looks like hedge funds own 14% of Universal Technical Institute shares. Talk to potential employers to learn more about the programs available in your area. The acquisition of NTT and PTA was completed for approximately $50.2 million. 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.. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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.
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. 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. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. See some of the exciting things our graduates are doing today. Find out what some of our graduates are doing today in pursuing their successful careers. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. [2], In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA). Since 1965, more than 230,000 students have graduated from UTI's . They aren't always helpful and tuition way overpriced. At the time of its initial public offering, UTI carried a debt load of $57.3 million. 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. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. If they do, the company may get a bump up in share price because of low expectations. 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 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. The company is headquartered in Phoenix, Arizona. Therefore, you should not rely on any of these forward-looking statements. 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. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. UTI welcomes General Education Diploma students. Its also becoming harder for UTI to reach prospective students in the first place. Posted on December 13, 2021 by December 13, 2021 by A drop to the mid-to-high single digits for new student starts is the reasoning there. "We are pleased to welcome Concorde's leadership team, faculty and staff, and, most importantly its students, to the Company," said Universal Technical Institute Chief Executive Officer Jerome Grant. Take an interactive 360 virtual tour by clicking on any of the program links below. Want Technical Training? This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. Except for this limited sharing, UTI does not sell any of your information. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. UTI welcomes General Education Diploma students. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. 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? ", "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. 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. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Other than lowering fees and boosting scholarships, I don't see any way UTI can deal with one of the major headwinds it faces, which is the strong reluctance of consumers to take on debt. The 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. 1.7 million+ Total technician employment expected nationally by 203138 Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. Rated 1.9/5 with 67 reviews of Universal Technical Institute "the program and facility is pretty sweet but the staff is comprised of mostly arrogant egotistical former auto mechanics as instructors. Concorde ended 2021 with approximately 7,400 students and delivered approximately. 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) . rate. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. In the first half of the fiscal year EBITDA was $16.3 million against $23.5 million in the first half of 2012. We aim to bring you long-term focused analysis driven by fundamental data. 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. Come take a look at our hands-on labs with state-of-the-industry equipment and technology. 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. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. UTI is an educational institution and cannot guarantee employment or salary. There is no upside in continuing to have McWaters run the company. It's always worth thinking about the different groups who own shares in a company. [13][14] On Dec. 1, 2022,[15] UTI announced it had closed on the acquisition of Concorde Career Colleges, Inc., which was announced on May 3, 2022[16][17] UTI and Concorde Career Colleges together now serve 20,000+ students across 14 states and 33 locations. 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. I also look forward to welcoming Jami Frazier and her talented team to the company. PHOENIX, Dec. 1, 2022 /PRNewswire/ -- Universal Technical Institute, Inc.(NYSE: UTI), a leading workforce solutions provider of transportation and skilled trades education programs, today announced the close of its acquisition of Concorde Career Colleges, Inc. ("Concorde"),which offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnosticfields. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. This may not be consistent with full year annual report figures. 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. You can also generally opt-out of receiving targeted ads from third party advertisers and ad networks who are members of the Network Advertising Initiative (NAI) by visiting http://optout.networkadvertising.org. 2018 Universal Technical Institute, Inc. All rights reserved. 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.
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