In this case, in addition to its dividend, UTI repurchased overvalued stock. Our data reflects individual insiders, capturing board members at the very least. 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. For more information about cookies you can visit https://www.allaboutcookies.org. UTI is making more than $15 million in scholarships and grants available to students in 2022. 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. UTI settled out of court with the employee. whale wars crew death dropping out of universal technical institute. Of those three veterans continue to be the most successful segment, with 21 straight quarters of. The boards of directors of both companies have unanimously approved the agreement. 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. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Along with the weak revenue is the high cost structure of the company, much of which is fixed. Bulls focus on UTIs assets and clean balance sheet but overlook the companys $142 million in off-balance sheet debt, which is nearly 60% of its market value. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. Classes start on average every 3 to 6 weeks. Job openings include openings due to net employment changes and net replacements. 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? [2], In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA). 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. UTI cannot guarantee employment or salary. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. 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. 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. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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. On Nov. 1, 2021, UTI announced it had completed the acquisition of MIAT College of Technology,[11][12] On June 9, 2022, the company announced plans to add 15 new programs across its national UTI/MIAT campus footprint. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. Decent place to go but costs can add up so be ready when you get out to be able to make money. 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 .
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. 7) Some programs may require longer than one year to complete. A drop to the mid-to-high single digits for new student starts is the reasoning there. In 1988 UTI opened their Lisle, Illinois, campus. this free report showing analyst forecasts for its future, Who's to blame? information about your activities on our website, which is then associated with your browser, device or online identifier. new york bar swearing in ceremony dates 2020 third department; visitation academy uniforms; 2004 c5 corvette for sale; coldwater creek catalog; iata membership benefits UTI has been forced to spend more on television and Internet advertising over the cheaper direct calling method. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 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). UTI is overvalued, has significant downward momentum, and major headwinds in its industry. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. You can exercise your right to opt [2], At its peak in 2011, UTI had more than 18,000 students. That's interesting, because hedge funds can be quite active and activist. Those numbers are likely to fall. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. 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. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 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. UTI has struggled in recent years. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. UTI shares have fallen to under $10 since the buyback began, which indicates that the share repurchase program has destroyed over 20% of the $8.8 million purchased, or around $2 million in value. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. 8-2 Project Three Systems Thinking. Most Programs Take Less Than a Year. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. 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. These schools, along with UTI rank at the bottom of the list in every metric. The high school segment is made up largely of males as it relates to UTI, and it's working on engaging that tough demographic by building relationships with the students while they're in high school. 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. 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.. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. Terms of the transaction have been disclosed in Universal Technical Institute's Form 8-K and completion of the acquisition will occur pending customary closing conditions and regulatory approvals. 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. In response, UTI has increased its scholarship opportunities to attract new students but it has also been forced to raise tuition to prevent revenues from falling in the face of declining enrollment. 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. "This transaction marks a major milestone in executing our strategy as we expand the scope of our skilled education programs to serve students' varied workforce-training needs and drive growth for the company. UTI has not faced the same kind of legal issues asITT Technical Institute(ESI) orCorinthian Colleges(COCO), but these high-profile cases have hurt the publics perception of the entire industry. 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. Its revenue fell by 16% between 2011 and 2013 while operating profit (NOPAT) fell by 65%. Take an interactive 360 virtual tour by clicking on any of the program links below. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Luckily, you can check this free report showing analyst forecasts for its future. 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. 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 data contradicts McWaters explanation for the companys recent underperformance. 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). Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Opinions expressed by Forbes Contributors are their own. Now is an exciting time to pursue a career in the industry, as new vehicle technology and high-tech systems are now considered standard equipment. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). Since the industry has very high fixed costs, student growth and retention is basically the entire game. Find the campus that matches your career goals here. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. There was an operating loss of $1.9 million for the quarter compared to operating income of $3 million in the same period last year. 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 . Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. I understand that my consent is not required to apply, enroll or make any purchase. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. There is no upside in continuing to have McWaters run the company. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. The fall in revenue was directly tied to the decline in students attending the school. 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. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. 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) . With the acquisition of Concorde complete, the Company will operate and report as two divisions. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. In the first half of the fiscal year EBITDA was $16.3 million against $23.5 million in the first half of 2012. 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. 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. Universal Technical Institute will support Concorde's existing efforts to expand the healthcare opportunities for students and alumni, including adding new programs (pending regulatory approval), growing existing online offerings, and optimizing the current campus locations to enhance the opportunity for past, current and future students to increase their skills. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Universal Technical Institute serves three student segments: high school, veterans, and adult. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. Forward-looking statements are neither historical facts nor assurances of future performance. 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. Please. As I write the share price of the company is at $11.26. Concerned about the content? It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Shareholders would probably be interested to learn that insiders own shares in Universal Technical Institute, Inc.. As individuals, the insiders collectively own US$8.6m worth of the US$238m company. Examples of forward-looking statements include, among others, statements regarding (1) UTI's belief that the acquisition will serve as a cornerstone for its key future growth and diversification efforts; (2) UTI's ability to integrate Concorde's healthcare programs into its portfolio of educational offerings; (3) UTI's anticipated expansion efforts; (4) UTI's expectation of increasing shareholder value; and (5) UTI's expectation of accelerating its revenue, profitability and cash flow over the next several years. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. That 4% dividend yield is probably not comforting any investor who bought UTI at the beginning of the year and has lost 30% of their investment. It looks like hedge funds own 14% of Universal Technical Institute shares. Government initiatives have played a big role in this shift. In the second quarter fiscal 2013, Universal Technical Institute generated net revenues of $95.1 million, plunging by 10.5 percent year-over-year. I am a former investment advisor and owner of several businesses. Examples of forward-looking statements include, among others, statements regarding (1) UTI's belief that the acquisition will serve as a cornerstone for its key future growth and diversification efforts; (2) UTI's ability to integrate Concorde's healthcare programs into its portfolio of educational offerings; (3) UTI's anticipated expansion efforts; (4) UTI's expectation of increasing shareholder value; and (5) UTI's expectation of accelerating its revenue, profitability and cash flow over the next several years. I also look forward to welcoming Jami Frazier and her talented team to the company. 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? As long as the company is focused on that, the details aren't that important. That means it had a cash runway of about 2.2 years as of March 2021 . 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. sharing for online advertising may be considered a sale of information. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. 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. Other than cutting variable costs, the other major thing UTI must do is build back its student population. The acquisition of NTT and PTA was completed for approximately $50.2 million. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. This is a BETA experience. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. These forward-looking statements which address Universal Technical Institute, Inc.'s ("UTI") 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. One will be comprised of Concorde and its leading healthcare education programs and campuses. 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 . All they want is, Brianna W. said: I'm currently enrolled at Platt College! 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. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. It offers diploma, undergraduate degree, and certificate programs. With 15 core programs and 16 campuses nationwide, UTI helps students turn their passion into a career they can pursue in less than a year.1. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. The concern to me is the overall trend concerning education, which is one that the general population believes isn't worth the cost and accompanying huge debt associated with it. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. For the first half growth came in at 17 percent. Free cash flow is a metric used to determine the ability of a company to generate future growth. 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. This may not be consistent with full year annual report figures. The scholarship growth angle is a good one, but unless it includes a large number of students it won't do much to change the performance of UTI over the long term. Universal Technical Institute - Reviews. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. If Tennessees program is a success, the free community college initiative could spread to other states. 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 . UTI Graduation Rate by Race/Ethnicity. UTI has among the worst in the industry. 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? However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. UTI has not entirely avoided allegations of wrongdoing either. [21] A planned Miramar, Florida campus opened in Summer of 2022. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, visit our website atwww.uti.edu/disclosures. UTIs management blames the companys issues on the poor economy. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. Media [email protected]. Join A Paid User Research SessionYoull receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. out by completing and submitting the form below. If you opt out, you may still see ads, but they will not be personalized based on your online activity. In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. Awards vary due to specific conditions, criteria and state. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 1.7 million+ Total technician employment expected nationally by 203138 The acquisition adds campuses in Texas and Michigan and eight new . Also provided by the company are customized training programs specific to manufacturer or dealer requests. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. Many look for medium term catalysts that will drive the share price higher. Analysts are somewhat down on the company, as they are looking for the company to lose $0.02 in earnings for the next quarter, and to drop from a prior estimate of a profit of $0.25 a share to a profit of $0.21 for the year. Jerome Grant will continue to directly lead this division until a Divisional President is named. Every investor in Universal Technical Institute, Inc. ( NYSE:UTI) should be aware of the most powerful shareholder groups. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. Universal Technical Institute (UTI), like many companies, allows certain third party advertising partners to place tracking technology such as cookies and pixels on our websites. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. 1) UTI is an educational institution and cannot guarantee employment or salary. Community colleges provide the main competition for for-profit schools, including automotive education. 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. Keeping things as they are won't cut it. 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.
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