That's interesting, because hedge funds can be quite active and activist. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. Universal Technical Institute's campuses are accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), while its employer-aligned technical training programs are offered under four brands:Universal Technical Institute, Motorcycle Mechanics Institute / Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. Concorde ended 2021 with approximately 7,400 students and delivered approximately. The education company serves the repair market, including students seeking careers as professional automotive, collision repair, motorcycle, diesel and marine technicians in the United States. "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. 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.". Universal Technical Institute defines estimated adjusted EBITDA margin as estimated adjusted EBITDA over estimated revenue. 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. Previous guidance from UTI was confirmed in its latest earnings report, with the company expecting revenues to drop into the high single-digits in 2013. I also cant see any reason why another firm would buy out UTI. I only included this strategy segment to show the company is taking steps in that direction, and waiting to see the enrollment numbers is all that will matter. 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. UTI thrived in the first couple years of the recession. In other words, UTI is making money while its graduates are, too often, unable to pay for the inadequate education they received. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. Take an interactive 360 virtual tour by clicking on any of the program links below. 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? Therefore, you should not rely on any of these forward-looking statements. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, and to review the applicable Gainful Employment disclosure, visit our website at www.uti.edu/disclosures. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. Contact an Admissions Representative to begin the enrollment process. Many look for medium term catalysts that will drive the share price higher. The fall in revenue was directly tied to the decline in students attending the school. 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. 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. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. 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. Those numbers are likely to fall. 1) UTI is an educational institution and cannot guarantee employment or salary. The high fixed costs also limit the ability to adjust fees in any real meaningful way. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. These days I invest only for myself while continuing to write on a variety of financial and economic topics. 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. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. High costs, declining revenue and low free cash flow make this company a huge risk. Get in touch with us directly. 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 wrote this article myself, and it expresses my own opinions. 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. 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. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for items not considered part of the company's normal recurring operations. Figure 1: Profitability Tracks Enrollment. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. 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. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. If it is, UTI has a future, if not, the share price will continue to take a big hit. Enrollment has been declining since then. This is a BETA experience. 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. At Universal Technical Institute of Illinois Inc., the graduation rate for American Indian or Alaska Native students is 100.00%, for Asian students it is 75.00%, for Black (non-Hispanic) students it is 33.33%, for Hispanic students it is 56.73%, for White students it is 62.01%, for Two or More Races it is . Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. Positions Universal Technical Institute to Seize Opportunity in High-Growth, High-Demand Healthcare Education Market, Significantly Accelerates Ongoing Growth and Diversification Efforts in Conjunction with Existing Initiatives to Meet Increasing Demand from Employers and Students, Universal Technical Institute and Concorde Career Colleges Together Now Serve 20,000+ Students Across 14 States and 33Locations with Significant Opportunitiesto Expand to Meet Varied Workforce-Training Needs, Concorde CEO Jami Frazier Joins the Universal Technical Institute Senior Leadership Team as President of the Healthcare Division. For the second quarter the company lost $900,000, or negative $0.04 per share. 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. Upon completion of the Concorde acquisition, the company will serve over 20,000 students across 14 states and 312locations. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. COVID-19 FAQs | COVID-19 Updates | Lab Info | CDC's COVID-19 website. 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. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. UTI has struggled in recent years. 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. 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. We aim to bring you long-term focused analysis driven by fundamental data. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. See some of the exciting things our graduates are doing today. UTI has not entirely avoided allegations of wrongdoing either. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. Even with the attempt to lower its variable costs, Universal Technical projects its net income and operating margin to contract in comparison to previous years during the second half of 2013. 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. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. 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. However, such a recovery seems highly unlikely. For the first half growth came in at 17 percent. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. This demographic is resistant to high costs and debt. 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. The boards of directors of both companies have unanimously approved the agreement. In the 3Q14 earnings conference call, McWaters acknowledged that Of those three veterans continue to be the most successful segment, with 21 straight quarters of. 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. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. Learn more about how we assist our veterans from VA funding to exclusive scholarships. MIAT College of Technology has joined UTIs family of schools! There is no upside in continuing to have McWaters run the company. Special conditions may apply. 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). 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. This scenario assumes a consistent level of profitability as the company achieved over the past two years, as UTI would continue to earn its current 6% return on invested capital (ROIC). 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. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). [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. 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