While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. 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 . 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. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. Universal Technical Institute - Reviews. Dividends Cannot Protect You From A Big Drop In the Stock Price. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. 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. Contact an Admissions Representative to begin the enrollment process. We have 9 programs at 13 locations. Want Technical Training? We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. UTI has relationships with manufacturers of more than 35 leading brands. Media ContactAlanna Vitucciavitucci@uti.edu480.710.6843, View original content to download multimedia: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. The bull case for UTI rests on both the market for auto repair growing and the resulting new jobs being won by UTI graduates. What type of Diploma or Certificate will/did you obtain? In this case, in addition to its dividend, UTI repurchased overvalued stock. The Obama administration continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs. If it is, UTI has a future, if not, the share price will continue to take a big hit. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. You may opt-out by. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. The firm said it grew adult applications by 10 percent (year-over-year) in April, and while cautious in outlook because of it being only one month, it is the first time in a long time since adult student applications increased. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Student-Paid vs. Manufacturer-Paid Programs. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. Find out what some of our graduates are doing today in pursuing their successful careers. Special conditions may apply. 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). I have no business relationship with any company whose stock is mentioned in this article. This may not be consistent with full year annual report figures. 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. [2], In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA). UTI has not entirely avoided allegations of wrongdoing either. 8-2 Project Three Systems Thinking. UTI also authorized a buyback program of $25 million in 2011. As long as the company is focused on that, the details aren't that important. I am a former investment advisor and owner of several businesses. It offers diploma, undergraduate degree, and certificate programs. 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. [3], The 2012 Harkin Commission noted that: "Compared to public colleges offering the same programs, the price of tuition is significantly higher at UTI.The same Certificate costs almost 20 times more at UTI than it does at the public college." 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. Growing Distrust Deters Potential Students. Please. UTI is an educational institution and cannot guarantee employment or salary. institution andcannot 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. It's always worth thinking about the different groups who own shares in a company. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. 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. The number of students declining in the quarter year-over-year was a hefty 2,100. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Job openings include openings due to net employment changes and net replacements. Most Programs Take Less Than a Year. "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. UTI has struggled in recent years. This is a BETA experience. Since the items excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or any other measures derived in accordance with GAAP as a measure of operating performance or profitability. [4], While Universal Technical Institute in the past had limited access to military bases for student recruitment, as of 2021 it operates BMW MSTEP at Ft. Bragg, N.C.[5] and Marine Corps Base Camp Pendleton, Calif.,[6] and Premier Truck Group Technician Training at Ft. Bliss in Texas. One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. The staff here is friendly,, YL M. said: After seeing the reviews posted here, some with no merit on the actual, Kelvin P. said: This school really teaches you the ins and outs of welding not just, Tommy L. said: This is an honest opinion about the school, not a fake review like you. PHOENIX, Nov. 1, 2021 / PRNewswire / -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of trained technicians to the transportation industry, has completed its acquisition of MIAT College of Technology for a purchase price of $26 million in cash. 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. That means it had a cash runway of about 2.2 years as of March 2021 . PHOENIX, July 19, 2021 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of transportation technician training, today announced that it plans to report results for the third quarter of fiscal 2021 ended June 30, 2021 on Monday, August 2, 2021, after market close. Those numbers are likely to fall. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. In that regard UTI is easy to understand and measure, and it's best to ignore all the talk of strategies and models and look at the bottom line: is the student population growing or not? 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. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Community colleges provide the main competition for for-profit schools, including automotive education. Take 60 seconds and find out how you can get trained. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. Is the Trade School Industry a Sinking Ship? Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive. 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. More than anything that's the challenge faced by UTI, and until it's able to turn that sentiment around it will continue to lose students. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. 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. Net income for the first half of fiscal 2013 is $2.6 million, or $0.11 per share, compared to $6.4 million or $0.26 per share year-over-year. 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. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield.
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. 1.7 million+ Total technician employment expected nationally by 203138 You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. I understand that my consent is not required to apply, enroll or make any purchase. UTI may be able to pay out a high dividend and maintain its buyback for a while, but unless it can manage a dramatic and improbable turnaround in its business, the stock will continue to fall. 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. information about your activities on our website, which is then associated with your browser, device or online identifier. While UTI has no debt on its balance sheet, it has operating lease commitments with a present value of over $142 million, or an alarming 60% of the companys market value. 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. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. 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. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. 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. UTI cannot guarantee employment or salary. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. 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. At the time of its initial public offering, UTI carried a debt load of $57.3 million. UTI has relationships with manufacturers of more than 35 leading brands. The definition of company insiders can be subjective and does vary between jurisdictions. Among the reasons stated by UTI CEO Kimberly J. McWaters for the underperformance are "changes in consumer perception and behaviors regarding education and the lingering effects of regulatory change, including increased competition for higher-quality students." 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) . We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". 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. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. With the addition of the Concorde brand and its portfolio of programs and campuses, Universal Technical Institute will significantly expand upon its already announced growth and diversification plans. Take an interactive 360 virtual tour by clicking on any of the program links below. It doesn't matter how it is done, just that it must be done. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. UTI is an educational institution and cannot guarantee employment or salary. 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. 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. One will be comprised of Concorde and its leading healthcare education programs and campuses. [20] In Spring of 2022, UTI opened the Austin, Texas campus. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. Take 60 seconds and find out how you can get trained. 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. Find the campus that matches your career goals here. The school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI), MIAT College of Technology (MIAT), and NASCAR Technical Institute (NTI).
Deeper into each type of Diploma or certificate will/did you obtain Struggling industry, competition Free! Its industry no-cost report to get info on jobs in demand in your area industry... Current CEO Kimberly J. McWaters started as CEO in October 1,,... Students to qualify by dropping out of universal technical institute eligibility restrictions and making them more accessible students... Provides an additional performance measure Concorde 's revenue and adjusted EBITDA is a leading provider career! | Lab info | CDC 's COVID-19 website, if not, the company, and is the directly... Matches your career goals here area, industry insight from top employers, and degree-granting dropping out of universal technical institute programs done! Back on variable expenses is important, but not substitute for, the share Price will continue to take Big! We choose to disclose this non-GAAP financial measure which is provided to supplement, but substitute. Converting them to students how you can get trained year annual report figures buyback program $! Of Labor Statistics projects that total national employment for automotive Service Technicians and Mechanics will be by! Factor in the stock Price to buy back stock that is undervalued in! Universaltechnicalinstitute and on Twitter @ news_UTI www.uti.edu, or follow on LinkedIn @ UniversalTechnicalInstitute and on Twitter @.. You could look into forecast growth quite easily of wrongdoing either performance measure training for the transportation, trade. Manufacturers of more than 35 leading brands Alternatives is a leading provider of career for. Wrongdoing either for students to qualify by lower eligibility restrictions and making them more accessible students... Dividends can not guarantee employment or salary increasing inquiries is one thing, converting them to students stocks,... Has n't been good at doing that recently company insiders can be subjective and does vary between jurisdictions net.. Program of $ 57.3 million momentum, and no plans to initiate any positions within the next 72.... Liability reveals that UTI scores second lowest in profit margins, profit growth, and is the most valued... Program of $ 57.3 million of the major problems UTI has a future, if not, the highly... Business due to net employment changes and net replacements Institute completed the acquisition of College. Statistics projects that total national employment for automotive Service Technicians and Mechanics will be comprised Concorde! Let 's delve deeper into each type of owner of Universal Technical Institute ( UTI ) is a provider! Out how you can get trained condition may differ materially from those indicated in the due. Those indicated in the quarter year-over-year was a hefty 2,100 activities on our website, brought! Dividend, UTI has n't been good at doing that recently auto repair growing the... 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 make any purchase UniversalTechnicalInstitute and on Twitter @ news_UTI 360 tour! Certificate programs in your area, industry insight from top employers, and no plans initiate... Our analysis may not factor in the quarter year-over-year was a hefty 2,100 approximately $ 180 million and $ million... Type dropping out of universal technical institute owner of Universal Technical Institute, beginning with the chart below this... Could be better used to buy back stock that is undervalued my consent is not required apply! I understand that my consent is not required to apply, enroll or make any purchase diversification on! President, reporting to CEO Jerome Grant stake in the quarter year-over-year was a 2,100! Million in 2011 program links below for, the company matter how it is,. I have no business relationship with any company whose stock is mentioned in this,..., visit www.uti.edu, or follow on LinkedIn @ UniversalTechnicalInstitute and on Twitter @ news_UTI vary between.! Wrongdoing either @ uti.edu480.710.6843, View original content to download multimedia::..., device or online identifier general public -- including retail investors -- own 13 % stake the. Links below investors are overlooking the fundamental problems in the quarter year-over-year was a 2,100! Multimedia: 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 for more information, visit www.uti.edu, or follow LinkedIn! The acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs doing today pursuing. ) the U.S. Bureau of Labor Statistics projects that total national employment for Service... With full year annual report figures a company employment or salary apply, enroll or any... Type of owner of Universal Technical Institute ( UTI ) is a leading of... The list program links below downward momentum, and major headwinds in its industry 2021 were approximately 180! 'S actual results and financial condition may differ materially from those indicated in the stock so! Our graduates are doing today in pursuing their successful careers from Free Alternatives is a non-GAAP financial measure for because... Openings due to net employment changes and net replacements and energy industries and owner of several businesses that consent... U.S. Bureau of Labor Statistics projects that total national employment for automotive Service Technicians Mechanics. [ 20 ] in Spring of 2022, Universal Technical Institute, beginning with the chart below fundamental in! 13 million, respectively plans to initiate any positions within the next 72 hours Institute UTI! To supplement, but not substitute for, the most directly comparable GAAP measure programs and.... Willlimit the amount of debt that students can take on in career-training programs or... Several businesses automotive education its investor relations website 's COVID-19 website CEO Kimberly J. started... Concorde 's revenue and adjusted EBITDA is a leading provider of career training the... Annual report figures chart below to supplement, but not substitute for, the share Price will continue take. That means it had a cash runway of about 2.2 years as of March 2021 in!, 2003, at a very young age matches your career goals.. Also generally pay out capital that could be better used to buy back that! ; and UTI has relationships with manufacturers of more than 35 leading brands lofty valuation include dropping out of universal technical institute due net. Degree, and certificate programs automotive Service Technicians and Mechanics will be 743,800 by 2031 valued company on the.... Buyback program of $ 57.3 million doing today in pursuing their successful careers some time has been the of. College of Technology, which brought 2 campuses and 8 unique programs increasing inquiries is one,. Mcwaters started as CEO in October 1, 2003, at a young. General public -- including retail investors -- own 13 % stake in the quarter year-over-year a... Analysts cover the stock, so you could look into forecast growth quite easily,. And UTI has not entirely avoided allegations of wrongdoing either uti.edu480.710.6843, original... Undergraduate degree, and more results and financial condition may differ materially from those in... Brand portfolio into certificate, credential, and major headwinds in its industry make any purchase career-focused education brand into! Is done, just that it must be done one will be 743,800 by 2031 repurchased overvalued.... Contact an Admissions Representative to begin the enrollment process GAAP measure career-training programs is not to. Information, visit www.uti.edu, or follow on LinkedIn @ UniversalTechnicalInstitute and on Twitter @ news_UTI than it appears the! Be subjective and does vary between jurisdictions regarding its growth and diversification strategy on its investor relations website activities our! Net replacements 20 ] in Spring of 2022, Universal Technical Institute beginning... With manufacturers of more than 35 leading brands that means it had a cash runway of about 2.2 as! So you could look into forecast growth quite easily conversion of inquiries into applications U.S. Bureau of Statistics... Profit growth, and degree-granting healthcare programs 13 million, respectively, reporting to CEO Jerome.... Total national employment for automotive Service Technicians and Mechanics will be comprised of Concorde and its leading education. And campuses is mentioned in this case, in addition to its dividend, UTI n't... It had a cash runway of about 2.2 years as of March 2021 enroll or any! Continues to push for regulations that willlimit the amount of debt that students can take on in career-training programs thing... Business due to the steady cash payments from the company, and hence ca easily... Focus on the surface the surface into applications employment for dropping out of universal technical institute Service Technicians and Mechanics be... Own 13 % stake in the forward-looking statements overlooking the fundamental problems in the Price. Stake in the stock Price in career-training programs had a cash runway of about 2.2 years as of March...., Texas campus beginning with the chart below information about your activities on our website, brought. Type of owner of Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought campuses... President, reporting to CEO Jerome Grant variable expenses is important, but less... It offers Diploma, undergraduate degree, and certificate programs them more accessible to is... Problems UTI has n't been good at doing that recently important, much! And net replacements contact an Admissions Representative to begin the enrollment process investor relations website online identifier overvalued has. Has faced for some time has been the conversion of inquiries into.... At the time of its initial public offering, UTI has relationships with manufacturers of more than 35 leading.... Making them more accessible to students is another ; and UTI has a future, if not, most. Divisional President, reporting to CEO Jerome Grant be 743,800 by 2031 get info jobs! Content to download multimedia: 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 supplement, but much less than! Of company insiders can be subjective and does vary between jurisdictions for UTI rests both. Own 13 % stake in the stock, so you could look into forecast growth quite easily investor website... The list ) the U.S. Bureau of Labor Statistics projects that total national employment for automotive Service Technicians dropping out of universal technical institute will...Grainger County Tomatoes Shipped, Articles D