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. 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. 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. 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. In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. 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. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. All they want is, Brianna W. said: I'm currently enrolled at Platt College! 1) UTI cannot guarantee employment or salary. Along with the weak revenue is the high cost structure of the company, much of which is fixed. A drop to the mid-to-high single digits for new student starts is the reasoning there. The fall in revenue was directly tied to the decline in students attending the school. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure 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. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Its also becoming harder for UTI to reach prospective students in the first place. 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. 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? 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). That's interesting, because hedge funds can be quite active and activist. 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. Get in touch with us directly. Instead, they are based only on UTI'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. UTIs management blames the companys issues on the poor economy. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. 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. I have no business relationship with any company whose stock is mentioned in this article. 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. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. rate. You can click here to see if those insiders have been buying or selling. UTI is an educational Rated 1.9/5 with 67 reviews of Universal Technical Institute "the program and facility is pretty sweet but the staff is comprised of mostly arrogant egotistical former auto mechanics as instructors. 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). SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. "We are pleased to welcome Concorde's leadership team, faculty and staff, and, most importantly its students, to the Company," said Universal Technical Institute Chief Executive Officer Jerome Grant. The acquisition of NTT and PTA was completed for approximately $50.2 million. 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 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. 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. 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 . ", Mr. Grant continued, "Together with Concorde, we have now more than doubled the number of campuses in our ecosystem and expanded into the critical area of healthcare training to help meet the national shortage of healthcare workers, as part of our mission of becoming a valued and trusted educational partner for students across multiple industry verticals.". 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). The company is headquartered in Phoenix, Arizona. UTI is making more than $15 million in scholarships and grants available to students in 2022. 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. 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. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. this free report showing analyst forecasts for its future, Who's to blame? 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. PHOENIX, Dec. 1, 2022 /PRNewswire/ -- Universal Technical Institute, Inc.(NYSE: UTI), a leading workforce solutions provider of transportation and skilled trades education programs, today announced the close of its acquisition of Concorde Career Colleges, Inc. ("Concorde"),which offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnosticfields. Jerome Grant will continue to directly lead this division until a Divisional President is named. Universal Technical Institutewill discuss the acquisition in more detail and provide updated investor materials as part of its previously announced fiscal 2022 full year and fourth quarter earnings call on December 12, 2022. 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. Student-Paid vs. Manufacturer-Paid Programs, Table 1.10 Occupational separations and openings, projected 2021-31, Table 1.2 Employment by detailed occupation, 2021 and projected 2031. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. 1.7 million+ Total technician employment expected nationally by 203138 Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. Of those three veterans continue to be the most successful segment, with 21 straight quarters of. Take 60 seconds and find out how you can get trained. 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. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. Of course, keep in mind that there are other factors to consider, too. 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. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted 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. Figure 1: Profitability Tracks Enrollment. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. This shows at least some alignment. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. Talk to potential employers to learn more about the programs available in your area. 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 70% stake, institutions possess the maximum shares in the company. 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. 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. If you have an ad-blocker enabled you may be blocked from proceeding. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. That included fewer students applying and a 60-basis-point drop in the show rate. By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. I generally consider insider ownership to be a good thing. Since there isn't much else the company can do, as it must increase student starts, it apparently is a risk it's willing to take to stem the steep decline in its student body. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. The share price at the end of 2003 was about $28 a share, jumping to $45.99 a share by May 3, 2004, presumably on momentum from a new CEO. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. information about your activities on our website, which is then associated with your browser, device or online identifier. 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. Simply Wall St has no position in any stocks mentioned. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. Approximately 250,000 students have graduated from one of Universal Technical Institute's 14 campuses located across Arizona, California, Florida, Illinois, Michigan, North Carolina, Pennsylvania, New Jersey, and Texas. 48) The U.S. Bureau of Labor Statistics projects that total national employment for Bus and Truck Mechanics and Diesel Engine Specialists will be 305,800 by 2031. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. Management understands what must be done, but the overwhelming negative trend in the market will be hard to overcome no matter what changes are made. The problem with this strategy is that demand for UTIs education appears to be highly elastic. Looking at the last year, the company burnt through US$36m. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. See some of the exciting things our graduates are doing today. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. Universal Technical Institute serves three student segments: high school, veterans, and adult. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. That level of sustained growth seems unlikely given the many problems facing UTIs industry. 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. Find out what some of our graduates are doing today in pursuing their successful careers. UTI also authorized a buyback program of $25 million in 2011. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. 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 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. "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. 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. Jet delivery delays spark penalties battle, Davos 2023: Europe must seize catch-up chance - EU's Gentiloni, UPDATE 1-Lavrov says Russia and China alert to Western 'games', Tennis-McDonald joins American pile-on of Nadal, Analysis-Small and medium companies to boost business travel rebound in 2023. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. But to understand Universal Technical Institute better, we need to consider many other factors. For one, the desirability of a career in auto maintenance seems to be declining. 2023 Universal Technical Institute, Inc. All rights reserved. Those numbers are likely to fall. UTI welcomes General Education Diploma students. I am a former investment advisor and owner of several businesses. 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. 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