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? COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. Under Jami's leadership, UTI's first step into healthcare will serve as a solid cornerstone for some of our key future growth and diversification efforts.". 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. Under some state laws, this data Additionally, Universal Technical Institute is opening new campuses in Miramar, Florida., and Austin, Texas and is further expanding its welding programs to 2 additional locations during the fiscal year. click here to see if those insiders have been buying or selling. 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. Many institutions measure their performance against an index that approximates the local market. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 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. In this case, in addition to its dividend, UTI repurchased overvalued stock. Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside. For more information, visit www.uti.eduor www.concorde.edu, or visit us on LinkedIn at @Universal Technical Institute and @Concorde Career Colleges or on Twitter @news_UTI or @ConcordeCareer. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. This shows at least some alignment. Whether or not UTI is truly guilty of any wrongdoing, the presence of these allegations against it and for-profit schools, in general, serves as a deterrent to potential students. UTI has struggled in recent years. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. "The $50 million purchase price provides a compelling enterprise value to adjusted EBITDA multiple and an opportunity to significantly increase our shareholder value. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 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. Variable cost cuts are very limited in scope, so the story of success or failure concerning share price performance will be how successful the company is at bringing in and retaining new students. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). 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. Other than cutting variable costs, the other major thing UTI must do is build back its student population. In 2011, a former employee filed a lawsuit against the company accusing it of violating Title IV regulations in its compensation incentives for admissions representatives. Along with the weak revenue is the high cost structure of the company, much of which is fixed. Many look for medium term catalysts that will drive the share price higher. UTI welcomes General Education Diploma students. 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. 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. 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. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. This is a BETA experience. Please disable your ad-blocker and refresh. 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.". [22], Learn how and when to remove this template message, "Don't Expect Miracles from Universal Technical Institute", "Universal Technical Institute, Inc.: Introduction", "Inaugural Class of Fort Bragg BMW MSTEP Program, Taught by UTI, Celebrates Their Graduation & Prepares for New Civilian Careers as BMW Technicians", "New BMW and UTI Program Prepares Service Members for Civilian Careers as BMW Automotive Technicians", "Premier Truck Group and Universal Technical Institute Honor Transitioning Military Service Members as They Graduate from the Inaugural Class of Technician Training at Fort Bliss", "Universal Technical Institute Implements Financial Improvement Plan to Deliver $25 to $30 Million in Annualized Savings in 2017; Reaffirms 2016 Fiscal Year Outlook", "One of Arizona's longest-tenured female CEOs to retire amid losses at Universal Technical Institute", "Universal Technical Institute Announces Jerome A. 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. [2], At its peak in 2011, UTI had more than 18,000 students. Investors should not expect the companys current buyback and dividend to continue much longer. UTI is an educational In 1988 UTI opened their Lisle, Illinois, campus. For the second quarter the company lost $900,000, or negative $0.04 per share. 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. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. 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. 1Source: U.S. Bureau of Labor Statistics, https://www.bls.gov/ooh/healthcare/home.htm, viewed May 2, 2022.2 Encompasses 12 UTI campuses, 2 MIAT campuses, and 17 Concorde campuses post-close. About Universal Technical Institute, Inc. Universal Technical Institute (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand . The definition of company insiders can be subjective and does vary between jurisdictions. Free cash flow is a metric used to determine the ability of a company to generate future growth. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. Universal Technical Institute was founded in 1965. Job openings include openings due to net employment changes and net replacements. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. "We take the responsibility of becoming one of this country's leading workforce solutions providers seriously, and entering the healthcare space allows us to help even more students and support employers as they seek to solve some of their toughest workforce-related challenges. 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. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. if you are a super douchebag you will fit in just fine with students and instructors alike." The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. A drop to the mid-to-high single digits for new student starts is the reasoning there. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization and adjusted for items not considered part of the company's normal recurring operations. Learning is hands on so no online classes to get it done. That's interesting, because hedge funds can be quite active and activist. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. UTI cannot guarantee employment or salary. 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. out by completing and submitting the form below. This suggests some credibility amongst professional investors. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. In the second quarter that continued with a year-over-year growth rate of 14 percent. There is no upside in continuing to have McWaters run the company. Concerned about the content? One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. 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. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. 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. Simply Wall St has no position in any stocks mentioned. 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. Find out what some of our graduates are doing today in pursuing their successful careers. 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. For the first half growth came in at 17 percent. The NTT business was discontinued at a loss of $42.9 million. The other will continue as Universal Technical Institute, which also includes brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. See some of the exciting things our graduates are doing today. Contact an Admissions Representative to begin the enrollment process. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. I understand that my consent is not required to apply, enroll or make any purchase. 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. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. Take 60 seconds and find out how you can get trained. Universal Technical Institute serves three student segments: high school, veterans, and adult. UTI has relationships with manufacturers of more than 35 leading brands. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. In the latest earnings call of the company McWaters also talked about the implementation of a predictive model and other things, but I don't see that as relevant because it's as simple as whether or not new students are coming on board or not. 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. 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. 8-2 Project Three Systems Thinking. 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. 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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