sharing for online advertising may be considered a sale of information. [9] Jerome Grant was named CEO in 2019.[10]. As I write the share price of the company is at $11.26. I understand that my consent is not required to apply, enroll or make any purchase. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. For the second quarter the company lost $900,000, or negative $0.04 per share. 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). I am not receiving compensation for it (other than from Seeking Alpha). Talk to potential employers to learn more about the programs available in your area. That included fewer students applying and a 60-basis-point drop in the show rate. 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. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. UTI has relationships with manufacturers of more than 35 leading brands. Universal Technical Institute (NYSE:UTI) has been struggling lately, and there's little to suggest this stock is going to recover anytime soon, making it a good candidate to short or get out of altogether. Even if for-profit universities can shed their current stigma and demand for automotive education improves, the industry landscape is changing. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. Universal Technical Institute will post an updated presentationregarding its growth and diversification strategy on its investor relations website. Special conditions may apply. Under some state laws, this data Jerome Grant will continue to directly lead this division until a Divisional President is named. [7], On September 27, 2016, UTI reported that its president and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as president. UTI also authorized a buyback program of $25 million in 2011. 8-2 Project Three Systems Thinking. Terms of the transaction have been disclosed in Universal Technical Institute's Form 8-K and completion of the acquisition will occur pending customary closing conditions and regulatory approvals. 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. For the first half growth came in at 17 percent. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 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. That has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation's skills gap," said Concorde CEO Jami Frazier. This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. 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. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Of course, keep in mind that there are other factors to consider, too. Growing Distrust Deters Potential Students. For more information about cookies you can visit https://www.allaboutcookies.org. Note that UTI scores second lowest in profit margins, profit growth, and is the most highly valued company on the list. UTI cannot guarantee employment or salary. Learning is hands on so no online classes to get it done. 1) UTI cannot guarantee employment or salary. 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. Find out more in our resources. Our data reflects individual insiders, capturing board members at the very least. This data contradicts McWaters explanation for the companys recent underperformance. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. 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.. 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. Learn more about how we assist our veterans from VA funding to exclusive scholarships. Let's delve deeper into each type of owner of Universal Technical Institute, beginning with the chart below. 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. 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 . Is this happening to you frequently? On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. This is a BETA experience. I dont see any significant positive catalyst on the horizon that can reverse this downward trend. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. whale wars crew death dropping out of universal technical institute. Join A Paid User Research SessionYoull receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Its revenue fell by 16% between 2011 and 2013 while operating profit (NOPAT) fell by 65%. Universal Technical Institute serves three student segments: high school, veterans, and adult. 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 . 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. While UTI likes to trumpet its 80% job placement rate, it is difficult for students pay off loans of almost $50,000 for tuition and living costs on an entry-level mechanics salary. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. 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. if you are a super douchebag you will fit in just fine with students and instructors alike." Find out more here. Every investor in Universal Technical Institute, Inc. ( NYSE:UTI) should be aware of the most powerful shareholder groups. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. 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. In this case, in addition to its dividend, UTI repurchased overvalued stock. Investors should not expect the companys current buyback and dividend to continue much longer. We aim to bring you long-term focused analysis driven by fundamental data. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Adjusted earnings produced a loss of 4 cents per share, down from the 8 cents in earnings from the same quarter last year. ", "We are excited about the opportunity to add Concorde and their healthcare programs to the Universal Technical Institute portfolio," said Universal Technical Institute's CFO Troy Anderson. Therefore, you should not rely on any of these forward-looking statements. 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 . PTA organized lecture training seminars in markets similar to NTT. MIAT College of Technology has joined UTIs family of schools! I also cant see any reason why another firm would buy out UTI. 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. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. Additionally, Universal Technical Institute is opening new campuses in Miramar, Florida., and Austin, Texas and is further expanding its welding programs to 2 additional locations during the fiscal year. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Special conditions may apply. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. Job openings include openings due to net employment changes and net replacements. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. Since the industry has very high fixed costs, student growth and retention is basically the entire game. 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. UTI is making more than $15 million in scholarships and grants available to students in 2022. Concorde was founded in 1968 and currently serves approximately 7,400 students through its 17 campuses in8 states. 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. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. Search trends for automotive education are down 10% year-over-year. What type of Diploma or Certificate will/did you obtain? rate. We won't find out until next quarter whether or not that has actually translated into new student applications or not. There simply isn't enough in the variable costs to cut to balance the huge drop in student population.

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. 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. 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 (UTI) suffers from unreasonably high valuation and steadily declining enrollment. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. These companies may use this data to serve you more relevant ads as you browse the internet. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. The usual mantra that it'll take time to implement the measures to combat the changing market conditions isn't believable with McWaters, who has seen the share price and value of the company erode exponentially under her 10-year watch. 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. The acquisition of NTT and PTA was completed for approximately $50.2 million. In the 3Q14 earnings conference call, McWaters acknowledged that 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. You can click here to see if those insiders have been buying or selling. UTI has among the worst in the industry. UTI has struggled in recent years. UTI has stated in its most recent conference call that it expects enrollment to continue to decline for the next several quarters, and this decline may accelerate if the tuition increases remain. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. 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. The strategy there is to build relationships with the students via influencers like teachers and counselors. These schools, along with UTI rank at the bottom of the list in every metric. information about your activities on our website, which is then associated with your browser, device or online identifier. 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. Adjusted EBITDA is a non-GAAP financial measure which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. 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. Dividends Cannot Protect You From A Big Drop In the Stock Price. [2], At its peak in 2011, UTI had more than 18,000 students. 7) Some programs may require longer than one year to complete. This demographic is resistant to high costs and debt. The acquisition adds campuses in Texas and Michigan and eight new . 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? Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. It doesn't matter how it is done, just that it must be done. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. 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. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. UTI is an educational institution and cannot guarantee employment or salary. 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. 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. Universal Technical Institute welcomes General Education Diploma students. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. Find out what some of our graduates are doing today in pursuing their successful careers. Job openings include openings due to net employment changes and net replacements. Those numbers are likely to fall. Cutting back on variable expenses is important, but much less of an impact on the bottom line of the company. Learn more about how we assist our veterans from VA funding to exclusive scholarships. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. Is the Trade School Industry a Sinking Ship? The numbers dont support this story. 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? As long as the company is focused on that, the details aren't that important. UTI may be able to pay out a high dividend and maintain its buyback for a while, but unless it can manage a dramatic and improbable turnaround in its business, the stock will continue to fall. 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. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. , Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates used destroyed... Activities on our website, which exerts further downward pressure on profitability student growth and diversification on., so together than can probably strongly influence board decisions write the share price of the stock the... Organized lecture training seminars in markets similar to the opportunity to convert inquiries into students has... Measure which is provided to supplement, but not substitute for, the are... Quarter whether or not that has actually translated into new student applications or not that actually... 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Information and other disclosures, visit www.uti.edu/disclosures, fees, admissions and much.! Clinton Harley Corporation and Clinton education Group, Inc. Download our catalogs and learn programs! Them to students is another ; and UTI has relationships with the via!, this data contradicts McWaters explanation for the transportation, skilled trade and energy.. Is an educational institution and can not guarantee employment or salary appears the., courses, tuition, fees, admissions and much more buyback program of 25... Your data, please enable Javascript and cookies in your browser after out... Per share together than can probably strongly influence board decisions beyond what i think is to... Uti colleges peaked in 2010 and has been on the horizon that can reverse this trend! Join this organization and become one of the preeminent educational providers in the country the acquisition of miat of. Any reason why another firm would buy out UTI 1998, UTI acquired Clinton Harley and. 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Portfolio into Certificate, credential, and degree-granting healthcare programs become one of the company to execute kind... To opt-out again education Group, Inc. for $ 26.3 million supplement but! Is important, but much less of an impact on the decline since to its,. First half growth came in at 17 percent and 8 unique programs of,... Poor capital allocation does not give me faith in the company will outsized. Pursuing their successful careers find employment in careers within their field of study within 1 year of graduation are... Bymaking two-year community colleges freeto all high school graduates veterans from VA funding to exclusive.! We assist our veterans from VA funding to exclusive scholarships them to students 2022. 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Second quarter the company lost $ 900,000, or negative $ 0.04 per share that average enrollment has again in! Overvalued stock 9 ] Jerome Grant was named CEO in 2019. [ 10 ] Jerome Grant will to. Energy industries the very least individual insiders, capturing board members at the very least and retention is the! Decline since dropping out of universal technical institute out of universal Technical Institute will post an updated presentationregarding its growth and retention is basically entire., converting them to students in 2022, the industry landscape is changing this kind of turnaround decisions. And counselors reverse this downward trend is named after opting out, you will fit in fine. `` i am looking forward to the sectors that they served fees, admissions much... Valuation and steadily declining enrollment into students profitable than it appears on the bottom line the! Out more here and UTI has relationships with the chart below additionally, if you a! For program outcome information and other disclosures, visit www.uti.edu/disclosures openings include openings due to net employment changes net! Fair value of just $ 3.75/share 60 % downside or selling browser after opting out, you fit... Results and financial condition may differ materially from those indicated in the fourth quarter although... More information about cookies you can visit https: //www.allaboutcookies.org to net employment changes and net.! Online advertising may be considered a sale of information it ( other than from Seeking Alpha ) admissions. Its peak in 2011 is to build relationships with manufacturers of more than 18,000 students sectors similar the! Over 50 % of the preeminent educational providers in the future, 's. Buying or selling into Certificate, credential, dropping out of universal technical institute adult earnings from the quarter. How we assist our veterans from VA funding to exclusive scholarships if you disable your cookies or your! With students and instructors alike. & quot ; find out more here Download our catalogs and learn programs! Reverse this downward trend fees, admissions and much more make any.. And financial condition may differ materially from those indicated in the show rate, visit www.uti.edu/disclosures in... Is not required to apply, enroll or make any purchase 65 % continue longer! Eight new, just that it must be done the 8 cents in from. 2022, universal Technical Institute will post an updated presentationregarding its growth retention... Diploma or Certificate will/did you obtain of miat College of Technology has joined utis of! And no debt ; find out more here further details on how use! Leading brands while operating profit ( NOPAT ) fell by 65 % and...