PHOENIX, Feb. 7, 2024
/PRNewswire/ -- Universal Technical
Institute, Inc. (NYSE: UTI), a leading workforce
solutions provider of transportation, skilled trades and healthcare
education programs, reported financial results for the fiscal 2024
first quarter ended December 31, 2023. Universal Technical Institute, Inc. operates in two
reportable segments, Universal Technical
Institute (UTI) and Concorde Career Colleges (Concorde), and
together with its segments and subsidiaries is referred to as the
"Company," "we," "us" or "our."
- Revenue of $174.7 million with
UTI contributing $115.4 million
representing 9.3% growth versus the prior year period, and Concorde
contributing $59.3 million.
- Net income of $10.4 million and
adjusted EBITDA(1) of $24.5
million, both increasing considerably versus the prior year
period.
- Total new student starts of 4,346 with UTI contributing 2,314
representing 17.2% growth versus the prior year period, and
Concorde contributing 2,032.
- Full year guidance raised for revenue, net income, diluted
earnings per share (EPS) and adjusted EBITDA(1).
"In the first quarter of 2024, we continued to outperform our
financial expectations and advance our growth, diversification, and
optimization strategy," said Jerome
Grant, CEO of Universal Technical
Institute, Inc. "Across both divisions, we generated
year-over-year new student start growth and made progress with
launching and ramping new programs. We also strengthened our
divisional and corporate leadership teams, with the respective
appointments of Kevin Prehn as the
president of the Concorde division and Carolyn Frank as our corporate chief human
resource officer. With our track record in robust strategic
execution and superior student outcomes, we are entering 2024 with
our multi-divisional company foundation solidly in place, and
proven ability to deliver on our expectations.
"Over the coming quarters, we are focused on increasing
enrollment, revenue, and profit growth from our most recent program
launches; enhancing the yield of our marketing and admissions
investments; and optimizing our workforce and facilities
utilization to drive improved margin expansion and operating
leverage. Through our program expansions, and as we progress
towards the next phases of our growth trajectory, we intend to
continuously expand the depth and breadth of opportunities we
provide for our students across the in-demand industries we serve.
We believe our current optimization work and long-term strategic
initiatives will take the company to its fullest
potential."
Financial Results for the Three-Month Period Ended
December 31, 2023 Compared to 2022(2)
- Revenues increased 45.6% to $174.7
million compared to $120.0
million primarily due to the growth in UTI new student
starts and the inclusion of Concorde for a full
quarter(2).
- Operating expenses rose by 38.9% to $160.5 million, compared to $115.6 million primarily due to inclusion of
Concorde for a full quarter(2).
- Operating income was $14.2
million compared to $4.4
million.
- Net income was $10.4 million
compared to $2.6 million.
- Basic and diluted EPS were $0.18
and $0.17 compared to $0.03 and $0.02,
respectively.
- Adjusted EBITDA(1) was $24.5
million compared to $14.4
million.
UTI
- UTI had revenues of $115.4
million, a $9.8 million and
9.3% increase from the prior year quarter revenues of $105.6 million, due to higher student
starts.
- Operating expenses for UTI were $100.3
million compared to $92.2
million. The increase was primarily due to expenses incurred
during the current year for new program launches during the last
two fiscal quarters and planned for fiscal 2024.
- Adjusted EBITDA(1) was $21.6
million compared to $20.2
million.
- New student starts increased from prior year by 17.2%, and
average undergraduate full-time active students increased
6.0%.
Concorde(2)
- Revenues of $59.3 million, a
$44.9 million increase from the prior
year quarter revenues of $14.4
million due to the inclusion of a full quarter in the
current year and only December in the prior year, along with growth
in new student starts.
- Operating expenses were $52.2
million compared to $15.2
million. The increase was due to the inclusion of a full
quarter in the current year and only December in the prior
year.
- Adjusted EBITDA(1) was $8.8
million compared to $(64.0)
thousand.
- New student starts of 2,032 and 8,244 average undergraduate
full-time active students.
(1)
|
See the "Use of
Non-GAAP Financial Information" below. For a detailed
reconciliation of the non-GAAP measures, see the tables following
the earnings release.
|
(2)
|
First quarter fiscal
2023 reflects UTI results for the full quarter and Concorde results
beginning December 1, 2022. Total company quarter-over-quarter
comparisons are shown on an "as-reported basis."
|
"Our first quarter results exceeded our expectations on both the
top and bottom line," said Troy
Anderson, CFO of Universal Technical
Institute, Inc. "This performance reflects the benefit of
having the full quarter of contribution from Concorde, along with
meaningful start growth and ramping new program launches in both
divisions. Importantly, in December
2023, we also satisfied the conditions that allowed us to
fully convert our outstanding Series A preferred stock into common
stock, representing a key milestone for the company and an
important step in optimizing our capital structure.
"With our current momentum as well as our visibility into the
remainder of the year, we are announcing positive adjustments to
our fiscal 2024 guidance ranges for several key financial metrics.
We are raising our expected revenue range and raising and
tightening our adjusted EBITDA range. In addition, we are raising
our GAAP net income and diluted EPS expectations, the latter
including the benefits from the conversion of the outstanding
preferred shares. This updated outlook reflects our continued
confidence in our ability to execute and drive strong results,
along with additional operating efficiencies and positive returns
on our growth investments. In the year ahead, we intend to maintain
our strategic progress and enhance the high-quality training and
employment experiences we offer students across our
platform."
Balance Sheet and Liquidity
At December 31, 2023, the Company's total available cash
liquidity was $143.6 million, with an
additional $8.2 million available
from its revolving credit facility. Capital expenditures ("capex")
for the quarter were $3.8 million.
The primary drivers of capex for the quarter were the UTI and
Concorde program expansions.
For the Company's most recent investor presentation and
quarterly financial supplement, please see its investor relations
website at https://investor.uti.edu.
Updated Fiscal 2024 Financial Outlook
|
|
Updated
|
|
|
FY
2024
|
($ in millions,
except EPS)
|
|
Guidance
|
New student
starts
|
No
change
|
24,500 -
25,500
|
Revenue
|
Raised range and
midpoint
|
$710 - 720
|
Net Income
|
Raised range and
midpoint
|
$36 - 40
|
Diluted EPS
|
Raised range and
midpoint
|
$0.67 - 0.72
|
Adjusted
EBITDA(3)
|
Raised range and
midpoint
|
$100 - 103
|
Adjusted free cash
flow(3)(4)
|
No
change
|
$62 - 66
|
|
|
(3)
|
See the "Use of
Non-GAAP Financial Information" below. For a detailed
reconciliation of the non-GAAP measures, see the tables following
the earnings release.
|
(4)
|
For FY 2024, assumes
$28 million to $31 million of total capex, including incremental
investments for program expansions and maintenance capex equal to
approximately 2% of revenue.
|
Conference Call
Management will hold a conference call to discuss the financial
results for the fiscal 2024 first quarter ended December 31,
2023, on Wednesday, February 7, 2024, at 4:30 p.m. ET.
To participate in the live call, investors are invited to dial
(844) 881-0138 (domestic) or (412) 317-6790 (international). A live
webcast of the call will be available via the Universal Technical Institute, Inc. investor
relations website at https://investor.uti.edu. Please go to the
website at least 10 minutes early to register, download and install
any necessary audio software. The conference call webcast will be
archived for fourteen days at https://investor.uti.edu.
Alternatively, the telephone replay can be accessed through
February 21, 2024, by dialing (877)
344-7529 (domestic) or (412) 317-0088 (international) and entering
passcode 9867059.
Use of Non-GAAP Financial Information
In addition to disclosing financial results that are determined
in accordance with U.S. generally accepted accounting principles
("GAAP"), the Company also discloses certain non-GAAP financial
information in this press release and may similarly disclose
non-GAAP financial information on the related conference call.
These financial measures are not recognized measures under GAAP and
are not intended to be and should not be considered in isolation or
as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. The Company
discloses these non-GAAP financial measures because it believes
that they provide investors an additional analytical tool to
clarify its results of operations and identify underlying trends.
Additionally, the Company believes that these measures may also
help investors compare its performance on a consistent basis across
time periods. Additional details on our non-GAAP measures and the
tables reconciling these measures to the most directly comparable
GAAP measure are provided below.
Adjusted EBITDA
The Company defines adjusted EBITDA as net income (loss) before
interest expense, interest income, income taxes, depreciation and
amortization, adjusted for stock-based compensation expense and
items not considered normal recurring operations.
Adjusted Free Cash Flow
The Company defines adjusted free cash flow as net cash provided
by (used in) operating activities less capital expenditures,
adjusted for items not considered normal recurring operations.
We disclose any campus adjustments as direct costs (net of any
corporate allocations). Management utilizes adjusted figures as
performance measures internally for operating decisions, strategic
planning, annual budgeting and forecasting. For the periods
presented, this includes acquisition-related costs for both
announced and potential acquisitions, integration costs for
completed acquisitions, costs related to the purchase of our
campuses, start-up costs associated with the Austin, TX and Miramar, FL campus openings and other program
expansions, and restructuring charges. To obtain a complete
understanding of our performance, these measures should be examined
in connection with net income (loss) and net cash provided by (used
in) operating activities, determined in accordance with GAAP, as
presented in the financial statements and notes thereto included in
the annual and quarterly filings with the Securities and Exchange
Commission ("SEC"). Because the items excluded from these
non-GAAP measures are significant components in understanding and
assessing our financial performance under GAAP, these measures
should not be considered to be an alternative to net income (loss)
or net cash provided by (used in) operating activities as a measure
of our operating performance or liquidity. Exclusion of items
in the non-GAAP presentation should not be construed as an
inference that these items are unusual, infrequent or
non-recurring. Other companies, including other companies in the
education industry, may define and calculate non-GAAP financial
measures differently than we do, limiting their usefulness as a
comparative measure across similarly titled performance measures
presented by other companies. A reconciliation of the historical
non-GAAP financial measures to the most directly comparable GAAP
measures is provided below and investors are encouraged to review
the reconciliations.
Forward Looking Statements
All statements contained in this press release and the related
conference call, 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). These forward-looking
statements which address our expected future business and financial
performance, may contain words such as "goal," "target," "future,"
"estimate," "expect," "anticipate," "intend," "plan," "believe,"
"seek," "project," "may," "should," "will," the negative form of
these expressions or similar expressions. Examples of
forward-looking statements include, among others, statements
regarding (1) the Company's expectation that it will meet its
fiscal year 2024 guidance for new student start growth (decline),
revenue growth, net income, diluted earnings per share, Adjusted
EBITDA and Adjusted Free Cash Flow; (2) the Company's expectation
that it will continue to expand its value proposition and build a
business that can grow in low-to-mid single digits with potential
upside, regardless of the economic environment; and (3) the
Company's expectation that it will succeed in new program launches
next year. Forward-looking statements are neither historical facts
nor assurances of future performance. Instead, they are based only
on the Company'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. 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 our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
affect our actual results include, among other things, failure of
our schools to comply with the extensive regulatory requirements
for school operations; our failure to maintain eligibility for
federal student financial assistance funds; the effect of current
and future Title IV Program regulations arising out of negotiated
rulemakings, including any potential reductions in funding or
restrictions on the use of funds received through Title IV
Programs; the effect of future legislative or regulatory
initiatives related to veterans' benefit programs; continued
Congressional examination of the for-profit education sector; our
failure to maintain eligibility for or the ability to process
federal student financial assistance; regulatory investigations of,
or actions commenced against, us or other companies in our
industry; changes in the state regulatory environment or budgetary
constraints; our failure to execute on our growth and
diversification strategy; our failure to realize the expected
benefits of our acquisitions, or our failure to successfully
integrate our acquisitions, including, without limitation, Concorde
Career Colleges, Inc.; our failure to improve underutilized
capacity at certain of our campuses; enrollment declines or
challenges in our students' ability to find employment as a result
of macroeconomic conditions; our failure to maintain and expand
existing industry relationships and develop new industry
relationships; our ability to update and expand the content of
existing programs and develop and integrate new programs in a
timely and cost-effective manner while maintaining positive student
outcomes; a loss of our senior management or other key employees;
failure to comply with the restrictive covenants and our ability to
pay the amounts when due under the Credit Agreement; the effect of
our principal stockholder owning a significant percentage of our
capital stock, and thus being able to influence certain corporate
matters and the potential in the future to gain substantial control
over our company; the impact of certain holders of our Series A
Preferred Stock owning a significant percentage of our capital
stock, their ability to influence and control certain corporate
matters and the potential for future dilution to holders of our
common stock; the effect of public health pandemics, epidemics or
outbreak, including COVID-19, and other risks that are described
from time to time in our public filings. 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. Any forward-looking statements made by us in this press
release and the related conference call are based only on
information currently available to us and speak only as of the date
on which it is made. We expressly disclaim 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.
Social Media Disclosure
Universal Technical Institute,
Inc uses its websites (https://www.uti.edu/,
https://concorde.edu, and https://investor.uti.edu/) and LinkedIn
pages
(https://www.linkedin.com/school/universal-technical-institute/ and
https://www.linkedin.com/school/concorde-career-colleges/) as
channels of distribution of information about its programs, its
planned financial and other announcements, its attendance at
upcoming investor and industry conferences, and other matters. Such
information may be deemed material information, and the Company may
use these channels to comply with its disclosure obligations under
Regulation FD. Therefore, investors should monitor the company's
website and its social media accounts in addition to following the
company's press releases, SEC filings, public conference calls, and
webcasts.
About Universal Technical
Institute, Inc.
Universal Technical Institute, Inc.
(NYSE: UTI) was founded in 1965 and is a leading workforce
solutions provider of transportation, skilled trades and healthcare
education programs, whose mission is to serve students, partners,
and communities by providing quality education and support services
for in-demand careers across a number of highly-skilled fields. The
Company is comprised of two divisions: Universal Technical Institute ("UTI") and Concorde
Career Colleges ("Concorde"). 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. Concorde operates across
17 campuses in 8 states and online, offering programs in the Allied
Health, Dental, Nursing, Patient Care and Diagnostic fields. For
more information, visit www.uti.edu or www.concorde.edu, or visit
us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career
Colleges or on X (formerly Twitter) @news_UTI or
@ConcordeCareer.
Company Contact:
Troy R.
Anderson
Chief Financial Officer
Universal Technical Institute, Inc.
(623) 445-9365
Media Contact:
Susan
Aspey
Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(202) 549-0534
saspey@uti.edu
Investor Relations Contact:
Matt Glover or Jackie
Keshner
Gateway Group, Inc.
(949) 574-3860
UTI@gateway-grp.com
(Tables Follow)
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except
per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
2023
|
|
2022
|
Revenues
|
$
174,695
|
|
$
120,004
|
Operating
expenses:
|
|
|
|
Educational services
and facilities
|
92,409
|
|
61,408
|
Selling, general and
administrative
|
68,055
|
|
54,148
|
Total operating
expenses
|
160,464
|
|
115,556
|
Income from
operations
|
14,231
|
|
4,448
|
Other (expense)
income:
|
|
|
|
Interest
income
|
1,975
|
|
823
|
Interest
expense
|
(2,871)
|
|
(1,423)
|
Other income
(expense), net
|
214
|
|
325
|
Total other
expense, net
|
(682)
|
|
(275)
|
Income before income
taxes
|
13,549
|
|
4,173
|
Income tax
expense
|
(3,160)
|
|
(1,525)
|
Net
income
|
$
10,389
|
|
$
2,648
|
Preferred stock
dividends
|
(1,097)
|
|
(1,277)
|
Income available for
distribution
|
9,292
|
|
1,371
|
Income allocated to
participating securities
|
(2,855)
|
|
(514)
|
Net income available
to common shareholders
|
$
6,437
|
|
$
857
|
|
|
|
|
Earnings per
share:
|
|
|
|
Net income per share -
basic
|
$
0.18
|
|
$
0.03
|
Net income per share -
diluted
|
$
0.17
|
|
$
0.02
|
|
|
|
|
Weighted average
number of shares outstanding(1):
|
|
|
Basic
|
36,434
|
|
33,805
|
Diluted
|
37,439
|
|
34,408
|
|
|
(1)
|
On December 18, 2023,
the Company exercised in full its right of conversion of the
Company's Series A Preferred Stock which resulted in the conversion
of all outstanding Series A Preferred shares into 19,296,843 shares
of Common Stock. As of December 31, 2023 there were
53,732,017 shares of Common Stock outstanding.
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except
par value and per share amounts)
(Unaudited)
|
|
|
December 31,
2023
|
|
September 30,
2023
|
Assets
|
|
Cash and cash
equivalents
|
$
143,590
|
|
$
151,547
|
Restricted
cash
|
5,233
|
|
5,377
|
Receivables,
net
|
22,722
|
|
25,161
|
Notes receivable,
current portion
|
6,001
|
|
5,991
|
Prepaid
expenses
|
12,117
|
|
9,412
|
Other current
assets
|
7,779
|
|
7,497
|
Total current
assets
|
197,442
|
|
204,985
|
Property and equipment,
net
|
263,922
|
|
266,346
|
Goodwill
|
28,459
|
|
28,459
|
Intangible assets,
net
|
18,801
|
|
18,975
|
Notes receivable, less
current portion
|
33,393
|
|
30,672
|
Right-of-use assets for
operating leases
|
174,973
|
|
176,657
|
Deferred tax asset,
net
|
4,855
|
|
3,768
|
Other assets
|
10,568
|
|
10,823
|
Total
assets
|
$
732,413
|
|
$
740,685
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts payable and
accrued expenses
|
$
68,498
|
|
$
69,941
|
Deferred
revenue
|
81,474
|
|
85,738
|
Operating lease
liability, current portion
|
22,521
|
|
22,481
|
Long-term debt, current
portion
|
2,560
|
|
2,517
|
Other current
liabilities
|
6,882
|
|
4,023
|
Total current
liabilities
|
181,935
|
|
184,700
|
Deferred tax
liabilities, net
|
663
|
|
663
|
Operating lease
liability
|
164,125
|
|
165,026
|
Long-term
debt
|
158,962
|
|
159,600
|
Other
liabilities
|
4,543
|
|
4,729
|
Total
liabilities
|
510,228
|
|
514,718
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common stock, $0.0001
par value, 100,000 shares authorized, 53,814 and 34,157 shares
issued
|
5
|
|
3
|
Preferred stock,
$0.0001 par value, 10,000 shares authorized; 0 and 676 shares of
Series A Convertible Preferred Stock issued and outstanding,
liquidation preference of $100 per share
|
—
|
|
—
|
Paid-in capital -
common
|
214,071
|
|
151,439
|
Paid-in capital -
preferred
|
—
|
|
66,481
|
Treasury stock, at
cost, 82 shares
|
(365)
|
|
(365)
|
Retained
earnings
|
6,897
|
|
5,946
|
Accumulated other
comprehensive income
|
1,577
|
|
2,463
|
Total shareholders'
equity
|
222,185
|
|
225,967
|
Total liabilities and
shareholders' equity
|
$
732,413
|
|
$
740,685
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended December 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
10,389
|
|
$
2,648
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
6,984
|
|
5,248
|
Amortization of
right-of-use assets for operating leases
|
|
5,531
|
|
4,120
|
Bad debt
expense
|
|
1,486
|
|
535
|
Stock-based
compensation
|
|
1,482
|
|
1,169
|
Deferred income
taxes
|
|
(730)
|
|
1,068
|
Training equipment
credits earned, net
|
|
529
|
|
(83)
|
Unrealized loss on
interest rate swap
|
|
(886)
|
|
(126)
|
Other losses (gains),
net
|
|
245
|
|
(143)
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
1,029
|
|
4,657
|
Prepaid
expenses
|
|
(4,060)
|
|
(1,438)
|
Other
assets
|
|
408
|
|
2,079
|
Notes
receivable
|
|
(2,731)
|
|
(622)
|
Accounts payable,
accrued expenses and other current liabilities
|
|
330
|
|
(15,925)
|
Deferred
revenue
|
|
(4,264)
|
|
4,634
|
Operating lease
liability
|
|
(4,708)
|
|
(4,963)
|
Other
liabilities
|
|
(198)
|
|
(46)
|
Net cash provided by
operating activities
|
|
10,836
|
|
2,812
|
Cash flows from
investing activities:
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
—
|
|
(16,973)
|
Purchase of property
and equipment
|
|
(3,848)
|
|
(6,782)
|
Proceeds from
maturities of held-to-maturity securities
|
|
—
|
|
29,000
|
Net cash (used in)
provided by investing activities
|
|
(3,848)
|
|
5,245
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facility
|
|
—
|
|
90,000
|
Debt issuance costs
for long-term debt
|
|
—
|
|
(484)
|
Payment of preferred
stock cash dividend
|
|
(1,097)
|
|
—
|
Payments on term loans
and finance leases
|
|
(618)
|
|
(273)
|
Payment of payroll
taxes on stock-based compensation through shares
withheld
|
|
(2,054)
|
|
(525)
|
Preferred share
repurchase
|
|
(11,320)
|
|
—
|
Net cash (used in)
provided by financing activities
|
|
(15,089)
|
|
88,718
|
Change in cash, cash
equivalents and restricted cash
|
|
(8,101)
|
|
96,775
|
Cash and cash
equivalents, beginning of period
|
|
151,547
|
|
66,452
|
Restricted cash,
beginning of period
|
|
5,377
|
|
3,544
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
156,924
|
|
69,996
|
Cash and cash
equivalents, end of period
|
|
143,590
|
|
162,229
|
Restricted cash, end of
period
|
|
5,233
|
|
4,542
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
148,823
|
|
$
166,771
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
SELECTED
SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY
SEGMENT
(In thousands, except
for Student Metrics)
(Unaudited)
|
|
Student
Metrics
|
|
|
Three Months Ended
December 31, 2023
|
|
|
Three Months Ended
December 31, 2022
|
|
UTI
|
|
Concorde
|
|
Total
|
|
|
UTI
|
|
Concorde(2)
|
|
Total
|
Total new student
starts
|
2,314
|
|
2,032
|
|
4,346
|
|
|
1,974
|
|
321
|
|
2,295
|
Year-over-year
growth (decline)
|
17.2 %
|
|
533.0 %
|
|
89.4 %
|
|
|
0.1 %
|
|
—
|
|
—
|
Average undergraduate
full-time active students
|
14,321
|
|
8,244
|
|
22,565
|
|
|
13,511
|
|
7,737
|
|
21,248
|
Year-over-year
growth (decline)
|
6.0 %
|
|
6.6 %
|
|
6.2 %
|
|
|
(1.6) %
|
|
—
|
|
—
|
End of period
undergraduate full-time active students
|
13,682
|
|
8,150
|
|
21,832
|
|
|
12,657
|
|
7,630
|
|
20,287
|
Year-over-year
growth (decline)
|
8.1 %
|
|
6.8 %
|
|
7.6 %
|
|
|
(3.6) %
|
|
—
|
|
—
|
Financial Summary by Segment and Consolidated
During fiscal 2023, in coordination with the integration of
Concorde, we began to reassess our operating model to determine the
organizational structure that would best help the Company achieve
future growth goals and optimally support the business. Beginning
in fiscal 2024, we have executed an internal reorganization to
fully transition our operating and reporting model to support a
multi-divisional business. As part of the internal reorganization,
each of the reportable segments now have dedicated accounting,
finance, information technology, and human resources teams.
Additionally, human resources and information technology costs that
benefit the entire organization are now allocated across UTI,
Concorde and Corporate each period based upon relative headcount.
As a result, additional costs have moved from Corporate into the
UTI segment and to a lesser extent the Concorde segment as
resources were redirected to support the segment's objectives. Due
to these changes in allocation methodology, the prior year segment
amounts have been recast for comparability to the current year
presentation.
|
|
Three Months Ended
December 31, 2023
|
|
|
Three Months Ended
December 31, 2022
|
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
Revenue
|
|
$
115,373
|
|
$
59,322
|
|
$
—
|
|
$
174,695
|
|
|
$
105,573
|
|
$
14,431
|
|
$
—
|
|
$
120,004
|
Educational services
and facilities
|
|
57,368
|
|
35,041
|
|
—
|
|
92,409
|
|
|
50,877
|
|
10,531
|
|
—
|
|
61,408
|
Selling, general and
administrative
|
|
42,915
|
|
17,153
|
|
7,987
|
|
68,055
|
|
|
41,274
|
|
4,626
|
|
8,248
|
|
54,148
|
Total operating
expenses
|
|
100,283
|
|
52,194
|
|
7,987
|
|
160,464
|
|
|
92,151
|
|
15,157
|
|
8,248
|
|
115,556
|
Net income
(loss)
|
|
13,597
|
|
7,173
|
|
(10,381)
|
|
10,389
|
|
|
12,732
|
|
(734)
|
|
(9,350)
|
|
2,648
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
SELECTED
SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY
SEGMENT
(In
thousands)
(Unaudited)
|
|
Major Expense
Categories by Segment and Consolidated
|
|
|
Three Months Ended
December 31, 2023
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
Salaries, benefits and
tax expense
|
$
45,367
|
|
$
28,192
|
|
$
3,563
|
|
$
77,122
|
Bonus
expense
|
3,494
|
|
857
|
|
1,022
|
|
5,373
|
Stock-based
compensation
|
470
|
|
8
|
|
1,003
|
|
1,481
|
Total compensation and
related costs
|
$
49,331
|
|
$
29,057
|
|
$
5,588
|
|
$
83,976
|
|
|
|
|
|
|
|
|
Advertising
expense
|
$
13,353
|
|
$
6,092
|
|
$
—
|
|
$
19,445
|
Occupancy expense, net
of subleases
|
7,607
|
|
5,798
|
|
150
|
|
13,555
|
Depreciation and
amortization
|
5,494
|
|
1,154
|
|
336
|
|
6,984
|
Professional and
contract services expense
|
2,587
|
|
1,870
|
|
2,507
|
|
6,964
|
|
Three Months Ended
December 31, 2022
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
Salaries, benefits and
tax expense
|
$
43,482
|
|
$
8,476
|
|
$
3,875
|
|
$
55,833
|
Bonus
expense
|
3,543
|
|
188
|
|
1,134
|
|
4,865
|
Stock-based
compensation
|
252
|
|
—
|
|
917
|
|
1,169
|
Total compensation and
related costs
|
$
47,277
|
|
$
8,664
|
|
$
5,926
|
|
$
61,867
|
|
|
|
|
|
|
|
|
Advertising
expense
|
$
13,349
|
|
$
1,280
|
|
$
—
|
|
$
14,629
|
Occupancy expense, net
of subleases
|
8,026
|
|
1,764
|
|
125
|
|
9,915
|
Depreciation and
amortization
|
4,775
|
|
457
|
|
16
|
|
5,248
|
Professional and
contract services expense
|
3,065
|
|
97
|
|
2,175
|
|
5,337
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION
(In
thousands)
(Unaudited)
|
|
Reconciliation of
Net Income (Loss) to EBITDA and Adjusted EBITDA
|
|
|
Three Months Ended
December 31, 2023
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
Net income
(loss)
|
$
13,597
|
|
$
7,173
|
|
$
(10,381)
|
|
$
10,389
|
Interest
income
|
(6)
|
|
(128)
|
|
(1,841)
|
|
(1,975)
|
Interest
expense
|
1,512
|
|
83
|
|
1,276
|
|
2,871
|
Income tax
expense
|
—
|
|
—
|
|
3,160
|
|
3,160
|
Depreciation and
amortization
|
5,494
|
|
1,154
|
|
336
|
|
6,984
|
EBITDA
|
20,597
|
|
8,282
|
|
(7,450)
|
|
21,429
|
Integration related
costs for acquisitions
|
—
|
|
294
|
|
612
|
|
906
|
Stock-based
compensation expense
|
471
|
|
8
|
|
1,003
|
|
1,482
|
Start-up costs for
program expansion
|
500
|
|
168
|
|
—
|
|
668
|
Restructuring
costs
|
43
|
|
—
|
|
—
|
|
43
|
Adjusted EBITDA,
non-GAAP
|
$
21,611
|
|
$
8,752
|
|
$
(5,835)
|
|
$
24,528
|
|
Three Months Ended
December 31, 2022
|
|
UTI
|
|
Concorde
|
|
Corporate
|
|
Consolidated
|
Net income
(loss)
|
$
12,732
|
|
$
(734)
|
|
$
(9,350)
|
|
$
2,648
|
Interest
income
|
(3)
|
|
(36)
|
|
(784)
|
|
(823)
|
Interest
expense
|
881
|
|
44
|
|
498
|
|
1,423
|
Income tax
expense
|
—
|
|
—
|
|
1,525
|
|
1,525
|
Depreciation and
amortization
|
4,775
|
|
457
|
|
16
|
|
5,248
|
EBITDA
|
18,385
|
|
(269)
|
|
(8,095)
|
|
10,021
|
Acquisition related
costs
|
—
|
|
—
|
|
775
|
|
775
|
Integration related
costs for acquisitions
|
219
|
|
150
|
|
726
|
|
1,095
|
Stock-based
compensation expense
|
252
|
|
—
|
|
917
|
|
1,169
|
Start-up costs for new
campuses and program expansion
|
1,324
|
|
55
|
|
—
|
|
1,379
|
Adjusted EBITDA,
non-GAAP
|
$
20,180
|
|
$
(64)
|
|
$
(5,677)
|
|
$
14,439
|
Reconciliation of
Net Cash (Used in) Provided by Operating Activities to Adjusted
Free Cash Flow
|
|
|
Three Months Ended
December 31,
|
|
2023
|
|
2022
|
Net cash provided by
operating activities, as reported
|
$
10,836
|
|
$
2,812
|
Purchase of property
and equipment
|
(3,848)
|
|
(6,782)
|
Free cash flow,
non-GAAP
|
6,988
|
|
(3,970)
|
Adjustments:
|
|
|
|
Acquisition related
costs paid
|
—
|
|
594
|
Integration related
costs paid
|
984
|
|
980
|
Cash outflow for
acquisition integration property and equipment
|
9
|
|
—
|
Cash outflow for
start-up costs for new campuses and program expansion
|
668
|
|
1,379
|
Cash outflow for
property and equipment for new campuses and program
expansion
|
1,583
|
|
3,605
|
Cash payments for
restructuring costs
|
5
|
|
—
|
Adjusted free cash
flow, non-GAAP
|
$
10,237
|
|
$
2,588
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION FOR
FISCAL 2024 GUIDANCE
(In
thousands)
(Unaudited)
|
|
For each of the
non-GAAP reconciliations provided for fiscal 2024 guidance, we are
reconciling to the
midpoint of the guidance range. The adjustments reflected below for
fiscal 2024 are illustrative only and
may change throughout the year, both in amount or the adjustments
themselves.
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA for Fiscal 2024
Guidance
|
|
|
Updated
|
|
Twelve Months
Ended
|
|
September
30,
|
|
2024
|
Net income
|
~ $38,000
|
Interest (income)
expense, net
|
~ 3,700
|
Income tax (benefit)
expense
|
~ 14,100
|
Depreciation and
amortization
|
~ 30,000
|
EBITDA
|
~ $85,800
|
Integration related
costs for acquisitions
|
~ 5,500
|
Start-up costs for
program expansion
|
~ 1,500
|
Stock-based
compensation
|
~ 8,000
|
Restructuring
costs
|
~700
|
Adjusted EBITDA,
non-GAAP
|
~ $101,500
|
FY 2024 Guidance
Range
|
$100,000 -
$103,000
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free
Cash Flow for Fiscal 2024 Guidance
|
|
|
Updated
|
|
Twelve Months
Ended
|
|
September
30,
|
|
2024
|
Net cash provided by
operating activities
|
~ $84,000
|
Purchase of property
and equipment
|
~ (30,500)
|
Free cash flow,
non-GAAP
|
~ $(53,500)
|
Adjustments:
|
|
Integration related
costs for acquisitions
|
~ 5,500
|
Cash outflow for
acquisition integration property and equipment
|
~ 200
|
Cash paid for start-up
costs for program expansion
|
~ 1,500
|
Cash outflow for
program expansion property and equipment
|
~ 2,300
|
Cash payments for
restructuring costs
|
~700
|
Cash outflow for
restructuring property and equipment
|
~300
|
Adjusted free cash
flow, non-GAAP
|
~ $64,000
|
FY 2024 Guidance
Range
|
$62,000 -
$66,000
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-reports-fiscal-year-2024-first-quarter-results-302056470.html
SOURCE Universal Technical
Institute, Inc.