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. 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. PTA organized lecture training seminars in markets similar to NTT. 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. 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. Have feedback on this article? [9] Jerome Grant was named CEO in 2019.[10]. Its also becoming harder for UTI to reach prospective students in the first place. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. Find out what some of our graduates are doing today in pursuing their successful careers. The NTT business was discontinued at a loss of $42.9 million. 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. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. 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. 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. 2018 Universal Technical Institute, Inc. All rights reserved. UTI is an educational institution and cannot guarantee employment or salary. 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. 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. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. Given the changing regulatory landscape and revenue decline in addition to UTIs mountain of off-balance sheet debt, it seems more likely that this company will go out of business than be bought out. It's one of the areas it can manage, and it's showing some improvement in that regard, even if it's only for one month at this time. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Those numbers are likely to fall. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. 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. 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. As it is, it has the same old manager in a declining industry that must come up with new ideas. UTI is an educational institution and cannot guarantee employment or salary. 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. "We take the responsibility of becoming one of this country's leading workforce solutions providers seriously, and entering the healthcare space allows us to help even more students and support employers as they seek to solve some of their toughest workforce-related challenges. 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. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". 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. I have no business relationship with any company whose stock is mentioned in this article. That's interesting, because hedge funds can be quite active and activist. 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. 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. We have 9 programs at 13 locations. 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. In 1988 UTI opened their Lisle, Illinois, campus. In the 3Q14 earnings conference call, McWaters acknowledged that There simply isn't enough in the variable costs to cut to balance the huge drop in student population. Courses take up either most of the day or most of the night so it's hard to work and go to school at the same time. Search trends for automotive education are down 10% year-over-year. Click the button and tell us what program you're interested in! UTI has relationships with manufacturers of more than 35 leading brands. All they want is, Brianna W. said: I'm currently enrolled at Platt College! Learn more about how we assist our veterans from VA funding to exclusive scholarships. I think UTI is treating investors like the company treats many of its graduates. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. One will be comprised of Concorde and its leading healthcare education programs and campuses. Take 60 seconds and find out how you can get trained. 1) UTI is an educational institution and cannot guarantee employment or salary. Many institutions measure their performance against an index that approximates the local market. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. 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). information about your activities on our website, which is then associated with your browser, device or online identifier. 2023 Universal Technical Institute, Inc. All rights reserved. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. "On behalf of the Concorde team, I am excited to be joining Universal Technical Institute," said Concorde Chief Executive Officer Jami Frazier. 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 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. In the latest earnings call of the company McWaters also talked about the implementation of a predictive model and other things, but I don't see that as relevant because it's as simple as whether or not new students are coming on board or not. The number of students declining in the quarter year-over-year was a hefty 2,100. Shareholders would probably be interested to learn that insiders own shares in Universal Technical Institute, Inc.. As individuals, the insiders collectively own US$8.6m worth of the US$238m company. UTI is an educational institution and cannot guarantee employment or salary. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. If you opt out, you may still see ads, but they will not be personalized based on your online activity. As long as the company is focused on that, the details aren't that important. For more information about cookies you can visit https://www.allaboutcookies.org. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. These schools, along with UTI rank at the bottom of the list in every metric. Find out more here. 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 . Of those three veterans continue to be the most successful segment, with 21 straight quarters of. Take 60 seconds and find out how you can get trained. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI is making more than $15 million in scholarships and grants available to students in 2022. Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. Therefore, you should not rely on any of these forward-looking statements. UTI has among the worst in the industry. 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.". On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. At the time of its initial public offering, UTI carried a debt load of $57.3 million. Dividends Cannot Protect You From A Big Drop In the Stock Price. 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. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. What type of Diploma or Certificate will/did you obtain? Investors should not expect the companys current buyback and dividend to continue much longer. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. SOURCE Universal Technical Institute, Inc. Concorde Career Colleges, Inc. ("Concorde"), 2022 full year and fourth quarter earnings call on, 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, Stock market news live updates: Stock futures stagnant as earnings season picks up, Who's to blame? Now is an exciting time to pursue a career in the industry, as new vehicle technology and high-tech systems are now considered standard equipment. 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. 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." I also look forward to welcoming Jami Frazier and her talented team to the company. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. Forward-looking statements are neither historical facts nor assurances of future performance. 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. 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. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. The high fixed costs also limit the ability to adjust fees in any real meaningful way. I understand that if I do submit this form, I may unsubscribe within marketing emails or opt-out of text messages at any time by replying STOP. Standard text message and data rates may apply.
By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at .
. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 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. Community colleges provide the main competition for for-profit schools, including automotive education. Learn more about how we assist our veterans from VA funding to exclusive scholarships. UTI Graduation Rate by Race/Ethnicity. 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. 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. For the first half growth came in at 17 percent. As I write the share price of the company is at $11.26. Learning is hands on so no online classes to get it done. 10) Financial aid, scholarships and grants are available to those who qualify. 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.. UTI also authorized a buyback program of $25 million in 2011. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". I also cant see any reason why another firm would buy out UTI. 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. UTI welcomes General Education Diploma students. 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. UTI is making more than $15 million in scholarships and grants available to students in 2022. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. The staff here is friendly,, YL M. said: After seeing the reviews posted here, some with no merit on the actual, Kelvin P. said: This school really teaches you the ins and outs of welding not just, Tommy L. said: This is an honest opinion about the school, not a fake review like you. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Also provided by the company are customized training programs specific to manufacturer or dealer requests. 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. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. 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. The acquisition of NTT and PTA was completed for approximately $50.2 million. The company is headquartered in Phoenix, Arizona. For further details on how we use your data, please review UTI's Privacy Policy. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. UTI cannot guarantee employment or salary. It may take several years before the current efforts bear fruit, if they do at all. 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. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. With 70% stake, institutions possess the maximum shares in the company. UTI has not faced the same kind of legal issues asITT Technical Institute(ESI) orCorinthian Colleges(COCO), but these high-profile cases have hurt the publics perception of the entire industry. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. In 1998, it opened a campus in Rancho Cucamonga, California. 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). One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. Sam McBride and Andr Rouillard contributed to this report. The definition of company insiders can be subjective and does vary between jurisdictions. out by completing and submitting the form below. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. Concorde ended 2021 with approximately 7,400 students and delivered approximately. Universal Technical Institute, Inc. (UTI). Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. Over the last 12 months (TTM) the gross margin is 48.5 percent, operating margin is 3.6 percent, and net margin is 2.0 percent. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. 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. "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. Please disable your ad-blocker and refresh.
dropping out of universal technical institute
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. 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. PTA organized lecture training seminars in markets similar to NTT. 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. 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. Have feedback on this article? [9] Jerome Grant was named CEO in 2019.[10]. Its also becoming harder for UTI to reach prospective students in the first place. The $50 million all-cash acquisition was previously announced on May 3, 2022,and includes 17 campuses in eight states that currently serve approximately 8,000 students. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. Find out what some of our graduates are doing today in pursuing their successful careers. The NTT business was discontinued at a loss of $42.9 million. 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. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. 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. 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. 2018 Universal Technical Institute, Inc. All rights reserved. UTI is an educational institution and cannot guarantee employment or salary. 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. 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. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. With the rise of free community college offerings and increased scrutiny on for-profit colleges, there is little left UTI can do to combat declining demand for its education. Given the changing regulatory landscape and revenue decline in addition to UTIs mountain of off-balance sheet debt, it seems more likely that this company will go out of business than be bought out. It's one of the areas it can manage, and it's showing some improvement in that regard, even if it's only for one month at this time. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. Those numbers are likely to fall. Once males leave high school, specifically in the 18-24 demographic, it becomes harder to reach them. Between 2009 and 2011, revenue grew by 23% and NOPAT increased by 80%. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. 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. 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. As it is, it has the same old manager in a declining industry that must come up with new ideas. UTI is an educational institution and cannot guarantee employment or salary. 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. "We take the responsibility of becoming one of this country's leading workforce solutions providers seriously, and entering the healthcare space allows us to help even more students and support employers as they seek to solve some of their toughest workforce-related challenges. 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. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". 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. I have no business relationship with any company whose stock is mentioned in this article. That's interesting, because hedge funds can be quite active and activist. 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. 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. We have 9 programs at 13 locations. 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. In 1988 UTI opened their Lisle, Illinois, campus. In the 3Q14 earnings conference call, McWaters acknowledged that There simply isn't enough in the variable costs to cut to balance the huge drop in student population. Courses take up either most of the day or most of the night so it's hard to work and go to school at the same time. Search trends for automotive education are down 10% year-over-year. Click the button and tell us what program you're interested in! UTI has relationships with manufacturers of more than 35 leading brands. All they want is, Brianna W. said: I'm currently enrolled at Platt College! Learn more about how we assist our veterans from VA funding to exclusive scholarships. I think UTI is treating investors like the company treats many of its graduates. Dear Better Business Bureau of Orlando, On Monday, August 15, 2022, Universal Technical Institute (UTI) Orlando, FL campus received complaint case #XXXXXXXX. One will be comprised of Concorde and its leading healthcare education programs and campuses. Take 60 seconds and find out how you can get trained. 1) UTI is an educational institution and cannot guarantee employment or salary. Many institutions measure their performance against an index that approximates the local market. Last year in the quarter UTI generated $1.9 million or $0.08 per diluted share. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. 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). information about your activities on our website, which is then associated with your browser, device or online identifier. 2023 Universal Technical Institute, Inc. All rights reserved. UTIs recent history of extremely poor capital allocation does not give me faith in the company to execute this kind of turnaround. "On behalf of the Concorde team, I am excited to be joining Universal Technical Institute," said Concorde Chief Executive Officer Jami Frazier. 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 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. In the latest earnings call of the company McWaters also talked about the implementation of a predictive model and other things, but I don't see that as relevant because it's as simple as whether or not new students are coming on board or not. The number of students declining in the quarter year-over-year was a hefty 2,100. Shareholders would probably be interested to learn that insiders own shares in Universal Technical Institute, Inc.. As individuals, the insiders collectively own US$8.6m worth of the US$238m company. UTI is an educational institution and cannot guarantee employment or salary. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. If you opt out, you may still see ads, but they will not be personalized based on your online activity. As long as the company is focused on that, the details aren't that important. For more information about cookies you can visit https://www.allaboutcookies.org. The company's largest shareholder is Park West Asset Management LLC, with ownership of 7.1%. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. These schools, along with UTI rank at the bottom of the list in every metric. Find out more here. 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 . Of those three veterans continue to be the most successful segment, with 21 straight quarters of. Take 60 seconds and find out how you can get trained. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. UTI is making more than $15 million in scholarships and grants available to students in 2022. Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. Therefore, you should not rely on any of these forward-looking statements. UTI has among the worst in the industry. 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.". On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. At the time of its initial public offering, UTI carried a debt load of $57.3 million. Dividends Cannot Protect You From A Big Drop In the Stock Price. 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. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. 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. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. What type of Diploma or Certificate will/did you obtain? Investors should not expect the companys current buyback and dividend to continue much longer. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. SOURCE Universal Technical Institute, Inc. Concorde Career Colleges, Inc. ("Concorde"), 2022 full year and fourth quarter earnings call on, 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, Stock market news live updates: Stock futures stagnant as earnings season picks up, Who's to blame? Now is an exciting time to pursue a career in the industry, as new vehicle technology and high-tech systems are now considered standard equipment. 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. 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." I also look forward to welcoming Jami Frazier and her talented team to the company. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. Forward-looking statements are neither historical facts nor assurances of future performance. 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. 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. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. The high fixed costs also limit the ability to adjust fees in any real meaningful way. I understand that if I do submit this form, I may unsubscribe within marketing emails or opt-out of text messages at any time by replying STOP. Standard text message and data rates may apply.
. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. 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. Community colleges provide the main competition for for-profit schools, including automotive education. Learn more about how we assist our veterans from VA funding to exclusive scholarships. UTI Graduation Rate by Race/Ethnicity. 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. 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. For the first half growth came in at 17 percent. As I write the share price of the company is at $11.26. Learning is hands on so no online classes to get it done. 10) Financial aid, scholarships and grants are available to those who qualify. 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.. UTI also authorized a buyback program of $25 million in 2011. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". I also cant see any reason why another firm would buy out UTI. 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. UTI welcomes General Education Diploma students. 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. UTI is making more than $15 million in scholarships and grants available to students in 2022. Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. The staff here is friendly,, YL M. said: After seeing the reviews posted here, some with no merit on the actual, Kelvin P. said: This school really teaches you the ins and outs of welding not just, Tommy L. said: This is an honest opinion about the school, not a fake review like you. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Also provided by the company are customized training programs specific to manufacturer or dealer requests. 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. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. 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. The acquisition of NTT and PTA was completed for approximately $50.2 million. The company is headquartered in Phoenix, Arizona. For further details on how we use your data, please review UTI's Privacy Policy. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. UTI cannot guarantee employment or salary. It may take several years before the current efforts bear fruit, if they do at all. 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. On the state level, Tennessee recently made waves bymaking two-year community colleges freeto all high school graduates. With 70% stake, institutions possess the maximum shares in the company. UTI has not faced the same kind of legal issues asITT Technical Institute(ESI) orCorinthian Colleges(COCO), but these high-profile cases have hurt the publics perception of the entire industry. 5) UTI programs prepare graduates for careers in industries using the provided training, primarily as automotive, diesel, collision repair, motorcycle and marine technicians. 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. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. In 1998, it opened a campus in Rancho Cucamonga, California. 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). One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. Sam McBride and Andr Rouillard contributed to this report. The definition of company insiders can be subjective and does vary between jurisdictions. out by completing and submitting the form below. [8] October 21, 2019, Kim McWaters resigned as CEO of Universal Technical Institute. Concorde ended 2021 with approximately 7,400 students and delivered approximately. Universal Technical Institute, Inc. (UTI). Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. Over the last 12 months (TTM) the gross margin is 48.5 percent, operating margin is 3.6 percent, and net margin is 2.0 percent. Adjusted EBITDA is a non-GAAP financial measure, which is provided to supplement, but not substitute for, the most directly comparable GAAP measure. 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. "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. Please disable your ad-blocker and refresh.By submitting this form, I further understand and agree that all information provided is subject to UTIs Privacy Policy available at .
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