Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. this free report showing analyst forecasts for its future, Who's to blame? Job openings include openings due to net employment changes and net replacements. 2018 Universal Technical Institute, Inc. All rights reserved. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) were operating divisions of Clinton Harley Corporation. I am a former investment advisor and owner of several businesses. Some UTI graduates get jobs within their field of study in positions other than as a technician, such as: parts associate, service writer, fabricator, paint and paint prep, and shop owner/operator. 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. Talk to potential employers to learn more about the programs available in your area. UTI cannot guarantee employment or salary. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. UTI thrived in the first couple years of the recession. I think UTI is treating investors like the company treats many of its graduates. UTI is an educational institution and cannot guarantee employment or salary. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. "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 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. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. Also provided by the company are customized training programs specific to manufacturer or dealer requests. Universal Technical Institute welcomes General Education Diploma students. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. 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. Is this happening to you frequently? Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. 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. 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. 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. 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. 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. 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. 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. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. That 4% dividend yield is probably not comforting any investor who bought UTI at the beginning of the year and has lost 30% of their investment. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". Come take a look at our hands-on labs with state-of-the-industry equipment and technology. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Choose from a range of programs you need to get the technical career you want. 1) UTI is an educational institution and cannot guarantee employment or salary. If Tennessees program is a success, the free community college initiative could spread to other states. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. Talk to potential employers to learn more about the programs available in your area. 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. At the time of its initial public offering, UTI carried a debt load of $57.3 million. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. "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. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. 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. This data contradicts McWaters explanation for the companys recent underperformance. Forward-looking statements are neither historical facts nor assurances of future performance. That means it had a cash runway of about 2.2 years. 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. 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. 10) Financial aid, scholarships and grants are available to those who qualify. But to understand Universal Technical Institute better, we need to consider many other factors. information about your activities on our website, which is then associated with your browser, device or online identifier. High costs, declining revenue and low free cash flow make this company a huge risk. MIAT College of Technology has joined UTIs family of schools! [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. 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. 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. There was an operating loss of $1.9 million for the quarter compared to operating income of $3 million in the same period last year. See our latest analysis for Universal Technical Institute. In 1988 UTI opened their Lisle, Illinois, campus. Learn more about how we assist our veterans from VA funding to exclusive scholarships. Sam McBride and Andr Rouillard contributed to this report. [22], Learn how and when to remove this template message, "Don't Expect Miracles from Universal Technical Institute", "Universal Technical Institute, Inc.: Introduction", "Inaugural Class of Fort Bragg BMW MSTEP Program, Taught by UTI, Celebrates Their Graduation & Prepares for New Civilian Careers as BMW Technicians", "New BMW and UTI Program Prepares Service Members for Civilian Careers as BMW Automotive Technicians", "Premier Truck Group and Universal Technical Institute Honor Transitioning Military Service Members as They Graduate from the Inaugural Class of Technician Training at Fort Bliss", "Universal Technical Institute Implements Financial Improvement Plan to Deliver $25 to $30 Million in Annualized Savings in 2017; Reaffirms 2016 Fiscal Year Outlook", "One of Arizona's longest-tenured female CEOs to retire amid losses at Universal Technical Institute", "Universal Technical Institute Announces Jerome A. Keeping things as they are won't cut it. 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? 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 number of students declining in the quarter year-over-year was a hefty 2,100. 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. The private educational sector continues to face a lot of headwind, and UTI hasn't done very well at successfully implementing new strategies to deal with the realities of the market they serve. On arecent conference call, CEO Kimberly McWaters offered the explanation that Lingering effects of the great recession have impacted consumer confidence in the job market and made them question the value of an education.. Find the campus that matches your career goals here. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. In the last year, its cash burn was US$36m. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. Upon completion of the Concorde acquisition, the company will serve over 20,000 students across 14 states and 312locations. Universal Technical Institute serves three student segments: high school, veterans, and adult. UTIs management blames the companys issues on the poor economy. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. 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. 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. Classes start on average every 3 to 6 weeks. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. 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. 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. A drop to the mid-to-high single digits for new student starts is the reasoning there. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. Due to an increase in customer demand and shortage of skilled technicians, jobs are growing in the skilled trades. 1) UTI is an educational institution and cannot guarantee employment or salary. 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. Lincoln Education and Corinthian colleges are the other schools on the list with automotive technology programs. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. "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. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. Find out more in our resources. 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. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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." That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. 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. 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. Even as a potential turnaround investment Universal Technical Institute doesn't look particularly attractive, as when poring over its numbers, market conditions, and strategy, there is little in the way of catalysts that would result in a surprise to the upside. 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). [9] Jerome Grant was named CEO in 2019.[10]. sharing for online advertising may be considered a sale of information. 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. 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. 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. new york bar swearing in ceremony dates 2020 third department; visitation academy uniforms; 2004 c5 corvette for sale; coldwater creek catalog; iata membership benefits 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. 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