Of those three veterans continue to be the most successful segment, with 21 straight quarters of. 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. 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. If it is, UTI has a future, if not, the share price will continue to take a big hit. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. UTI is an educational institution and cannot guarantee employment or salary. Take 60 seconds and find out how you can get trained. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. The acquisition of NTT and PTA was completed for approximately $50.2 million. 1) UTI is an educational institution and cannot guarantee employment or salary. 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. 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. 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 agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Presiding over this type of decline over almost a decade calls for new leadership, as other educational companies, while under similar pressures, have managed to perform much better facing the same headwinds. Universal Technical Institute, Inc. (UTI). 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. I am a former investment advisor and owner of several businesses. Job openings include openings due to net employment changes and net replacements. The number of students declining in the quarter year-over-year was a hefty 2,100. PTA organized lecture training seminars in markets similar to NTT. 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. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. 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. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. 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 . 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. Have feedback on this article? Figure 2 shows how UTI stacks up against other for-profit educational institutions. 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 of the major problems UTI has faced for some time has been the conversion of inquiries into applications. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. 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. UTI is an educational institution and cannot guarantee employment or salary. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. 1) UTI cannot guarantee employment or salary. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. That level of sustained growth seems unlikely given the many problems facing UTIs industry. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. Of those three veterans continue to be the most successful segment, with 21 straight quarters of application growth. 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. 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. Free cash flow is a metric used to determine the ability of a company to generate future growth. 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. Luckily, you can check this free report showing analyst forecasts for its future. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. However, such a recovery seems highly unlikely. The economy was in worse shape in 2010 than it is now, but during that year UTI had its highest enrollment and profits of the past decade. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Our data reflects individual insiders, capturing board members at the very least. See our latest analysis for Universal Technical Institute. What type of Diploma or Certificate will/did you obtain? The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. So they usually pay more attention to companies that are included in major indices. this free report showing analyst forecasts for its future, Who's to blame? 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. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. Concorde Career Colleges' 20 student-focused academic programs and personalized support prepare graduates for in-demand careers in nursing, dental, respiratory, diagnostic, and other health care roles. "Their core focus of delivering strong student and employment outcomes aligns closely with Concorde's values of being student-centered, community-based, and achievement-driven. 1) UTI is an educational institution and cannot guarantee employment or salary. Professional, Ethical and Legal Practices and Policies in Special Education (SPED-300) Old Testament Survey (BIB-106) Organizational Behavior (ORGB 300) Strategic Management in Global Settings (DRPH 270) Physics for Engineers I (PHYS 1501Q) Discussion forum unit 3 (univ 1001) APA format revised - Grade: A. Please disable your ad-blocker and refresh. This suggests some credibility amongst professional investors. I wrote this article myself, and it expresses my own opinions. UTI Graduation Rate by Race/Ethnicity. [9] Jerome Grant was named CEO in 2019.[10]. 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. 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. Even though UTIs stock price is down 50% over the past five years, the company remains significantly overvalued. 8-2 Project Three Systems Thinking. The NTT business was discontinued at a loss of $42.9 million. Concorde offers over 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. 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. Choose from a range of programs you need to get the technical career you want. 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. That's interesting, because hedge funds can be quite active and activist. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. 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) . 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 . Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. Classes start on average every 3 to 6 weeks. With 70% stake, institutions possess the maximum shares in the. Posted on December 13, 2021 by December 13, 2021 by Is this happening to you frequently? 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. For more information about cookies you can visit https://www.allaboutcookies.org. As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. In the second quarter that continued with a year-over-year growth rate of 14 percent. Figure 1: Profitability Tracks Enrollment. Universal Technical Institute was founded in 1965. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. Bulls focus on UTIs assets and clean balance sheet but overlook the companys $142 million in off-balance sheet debt, which is nearly 60% of its market value. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. Find out what some of our graduates are doing today in pursuing their successful careers. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. 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. 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.". High costs, declining revenue and low free cash flow make this company a huge risk. 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). UTI is an educational institution and cannot guarantee employment or salary. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. 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. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. 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). That means it had a cash runway of about 2.2 years. 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 offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. 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. 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. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. 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. 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