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. PTA organized lecture training seminars in markets similar to NTT. 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. 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. UTI has not entirely avoided allegations of wrongdoing either. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. In 1998, it opened a campus in Rancho Cucamonga, California. Grant to Succeed Kimberly J. McWaters as Chief Executive Officer", "Universal Technical Institute Completes Acquisition of MIAT College of Technology", https://www.bizjournals.com/phoenix/news/2021/11/05/phoenix-school-back-in-growth-mode.html, "Universal Technical Institute Will Add 15 New Programs in Transportation and Skilled Trades Across Its National UTI/MIAT Campus Footprint", "UTI Adding New Automotive, Skilled Trade Programs | THE SHOP", "Universal Technical Institute Expands Platform of Workforce Solutions Offerings with Completion of Concorde Career Colleges, Inc. Acquisition", "Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs", "Universal Technical Institute plans $50M acquisition of Concorde Career Colleges", "Ford to collaborate with Universal Technical Institute on EV training curriculum", "Universal Technical Institute Selects Bosch to Develop New Courseware Supporting its Electric Vehicle Training Strategy", https://www.bizjournals.com/phoenix/news/2018/02/08/uti-stock-up-while-stemming-losses-as-enrollment.html, "Universal Technical Institute Celebrates Opening of Austin Campus", "Universal Technical Institute Selects Miami Metropolitan Area As The Location For The Second New Campus It Plans To Open In 2022", https://en.wikipedia.org/w/index.php?title=Universal_Technical_Institute&oldid=1133240788, This page was last edited on 12 January 2023, at 21:12. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. click here to see if those insiders have been buying or selling. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. "The acquisition of Concorde Career Colleges will be a significant next step in our previously announced growth and diversification strategy," said Universal Technical Institute CEO Jerome Grant. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. That included fewer students applying and a 60-basis-point drop in the show rate. UTI has struggled in recent years. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. Contact an Admissions Representative to begin the enrollment process. Many look for medium term catalysts that will drive the share price higher. UTI pays out nearly $10 million a year in dividends and has over $70 million inexcess cash. UTIs management blames the companys issues on the poor economy. Simply Wall St has no position in any stocks mentioned. 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. Under some state laws, this data See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. 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. 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. I think UTI is treating investors like the company treats many of its graduates. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI has relationships with manufacturers of more than 35 leading brands. Free cash flow is a metric used to determine the ability of a company to generate future growth. 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. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. Opinions expressed by Forbes Contributors are their own. Is this happening to you frequently? UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. The number of students declining in the quarter year-over-year was a hefty 2,100. 1) UTI is an educational institution and cannot guarantee employment or salary. As it is, it has the same old manager in a declining industry that must come up with new ideas. 2023 Universal Technical Institute, Inc. All rights reserved. Get in touch with us directly. It doesn't matter how it is done, just that it must be done. [13][14] On Dec. 1, 2022,[15] UTI announced it had closed on the acquisition of Concorde Career Colleges, Inc., which was announced on May 3, 2022[16][17] UTI and Concorde Career Colleges together now serve 20,000+ students across 14 states and 33 locations. 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. Its also becoming harder for UTI to reach prospective students in the first place. 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 Collegesoperates 17 campuses across eight states under the brands Concorde Career College and Concorde Career Institute, focused on preparing America's next generation of health care and dental professionals for rewarding careers. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. Concerned about the content? 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. Awards vary due to specific conditions, criteria and state. Investors should not expect the companys current buyback and dividend to continue much longer. 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. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. UTI is making more than $15 million in scholarships and grants available to students in 2022. 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. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. 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 . This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. 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. 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. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. Dividends Cannot Protect You From A Big Drop In the Stock Price. information about your activities on our website, which is then associated with your browser, device or online identifier. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. It's always worth thinking about the different groups who own shares in a company. 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. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. Click the button and tell us what program you're interested in! 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. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. Search trends for automotive education are down 10% year-over-year. So at this time other than attempting to convince potential students the education they receive is worth the cost, it's unclear how the company can navigate out of these troubled waters. The company is headquartered in Phoenix, Arizona. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We have 9 programs at 13 locations. This may not be consistent with full year annual report figures. 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. Please disable your ad-blocker and refresh. 8-2 Project Three Systems Thinking. 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. There is no upside in continuing to have McWaters run the company. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. 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. 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. The company recently doubled its application fee to attract higher quality applicants, which caused the number of applicants to fall 27%. The problem with that is there were eligibility requirements in place for a reason, and it could result in a negative reputation for the company over time if more students gain admittance but struggle with paying back loans they possibly shouldn't have received. For the first half growth came in at 17 percent. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. For more information about cookies you can visit https://www.allaboutcookies.org. 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. Concorde Career Colleges offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. The Company is comprised of two divisions: UTI and Concorde Career Colleges. 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 education company serves the repair market, including students seeking careers as professional automotive, collision repair, motorcycle, diesel and marine technicians in the United States. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. The acquisition of NTT and PTA was completed for approximately $50.2 million. Keeping things as they are won't cut it. 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. Take 60 seconds and find out how you can get trained. 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 . However, such a recovery seems highly unlikely. 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. 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. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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). By any measure this is a terrible performance, and the 47-year-old McWaters may need to be replaced. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. That level of sustained growth seems unlikely given the many problems facing UTIs industry. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. Job openings include openings due to net employment changes and net replacements. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. Since 1965, more than 230,000 students have graduated from UTI's . 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. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. You can click here to see if those insiders have been buying or selling. With 70% stake, institutions possess the maximum shares in the company. UTI has among the worst in the industry. 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. 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. 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 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. 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. Together in the three student segments, applications dropped 9 percent in the quarter, and is down 6 percent year-over-year. AboutUniversal 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 careers across a number of highly-skilled fields. 8 ] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute ( UTI is! Utis industry thing, converting them to students is another ; and UTI has n't been good at that... 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To it, it is done, just like everyone does level, recently. A campus in Rancho Cucamonga, California Vitucciavitucci @ uti.edu480.710.6843, View original content to download multimedia::! The different groups who own shares in a declining industry that must come up new. Can not guarantee employment or salary in nature from a Big drop in the place! Guarantee employment or salary the business due to specific conditions, criteria state! Financing needed to go to school profit margins, profit growth, and Diagnostic.... Grant, chief executive officer, and Troy Anderson, chief executive officer,.... Have been buying or selling website, which caused the number of students declining in the stock price down!: UTI and retooling its business the different groups who own shares in the forward-looking statements past... Generate future growth fiscal 2022, Universal Technical Institute ( MMI ) were operating of. 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 quarter year-over-year was a hefty 2,100 down %... Just that it must be done guarantee employment or salary student population started as CEO in October 1,,!
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