Job openings include openings due to net employment changes and net replacements. With the acquisition of Concorde complete, the Company will operate and report as two divisions. UTI shares have fallen to under $10 since the buyback began, which indicates that the share repurchase program has destroyed over 20% of the $8.8 million purchased, or around $2 million in value. In the last year, its cash burn was US$36m. 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. It looks like hedge funds own 14% of Universal Technical Institute shares. 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. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. [3], The 2012 Harkin Commission noted that: "Compared to public colleges offering the same programs, the price of tuition is significantly higher at UTI.The same Certificate costs almost 20 times more at UTI than it does at the public college." As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. "On behalf of the Concorde team, I am excited to be joining Universal Technical Institute," said Concorde Chief Executive Officer Jami Frazier. 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. UTI is making more than $15 million in scholarships and grants available to students in 2022. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Choose from a range of programs you need to get the technical career you want. These forward-looking statements which addressUniversal Technical Institute, Inc.'s ("UTI") expected future business and financial performance may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. 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. PTA organized lecture training seminars in markets similar to NTT. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. Find out more in our resources. if you are a super douchebag you will fit in just fine with students and instructors alike." This poor strategy used and destroyed capital that could have been put to work attracting new students to UTI and retooling its business. UTI cannot guarantee employment or salary. It may take several years before the current efforts bear fruit, if they do at all. "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. It doesn't matter how it is done, just that it must be done. The Company is comprised of two divisions: UTI and Concorde Career Colleges. Opinions expressed by Forbes Contributors are their own. 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. Also provided by the company are customized training programs specific to manufacturer or dealer requests. The problem with that is there were eligibility requirements in place for a reason, and it could result in a negative reputation for the company over time if more students gain admittance but struggle with paying back loans they possibly shouldn't have received. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. 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. It might appear that UTI could justify a higher valuation based on the assets on its balance sheet, but such thinking ignores the impact of over $142 million inoff-balance sheet debt. Click the button and tell us what program you're interested in! 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. To that end, you should learn about the 2 warning signs we've spotted with Universal Technical Institute (including 1 which is a bit concerning) . In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. Expands Universal Technical Institute, Inc.'s career-focused education brand portfolio into certificate, credential, and degree-granting healthcare programs. It operates under the brands Universal Technical Institute, Motorcycle Mechanics Institute, NASCAR Technical Institute and Marine Mechanics Institute. One will be comprised of Concorde and its leading healthcare education programs and campuses. Concorde's revenue and adjusted EBITDA for calendar 2021 were approximately $180 million and $13 million, respectively. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. With 70% stake, institutions possess the maximum shares in the company. 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. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. 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. These days I invest only for myself while continuing to write on a variety of financial and economic topics. There is no upside in continuing to have McWaters run the company. Of course, keep in mind that there are other factors to consider, too. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. In fiscal 2022, Universal Technical Institute completed the acquisition of MIAT College of Technology, which brought 2 campuses and 8 unique programs. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 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. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. information about your activities on our website, which is then associated with your browser, device or online identifier. We aim to bring you long-term focused analysis driven by fundamental data. The concern to me is the overall trend concerning education, which is one that the general population believes isn't worth the cost and accompanying huge debt associated with it. The definition of company insiders can be subjective and does vary between jurisdictions. Jerome Grant, chief executive officer, and Troy Anderson, chief financial officer, will . The other will continue as Universal Technical Institute, which also includes brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute. If you opt out, you may still see ads, but they will not be personalized based on your online activity. Concorde was founded in 1968 and currently serves approximately 7,400 students through its 17 campuses in8 states. Simply Wall St has no position in any stocks mentioned. 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. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. 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. 10) Financial aid, scholarships and grants are available to those who qualify. This technology allows these advertising partners to receive Media Contactavitucci@uti.edu480.710.6843. With negative free cash flow to price of $-0.49 per share, it's hard to see how UTI expects to grow in the future. You may opt-out by. Job openings include openings due to net employment changes and net replacements. 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. For one, the desirability of a career in auto maintenance seems to be declining. However, such a recovery seems highly unlikely. 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. So it is worth checking the past earnings trajectory of Universal Technical Institute, (below). 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. UTI is an educational institution and cannot guarantee employment or salary. [20] In Spring of 2022, UTI opened the Austin, Texas campus. The company is headquartered in Phoenix, Arizona. 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. 1) UTI is an educational institution and cannot guarantee employment or salary. 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. Finally concerning the strategy of the company is an adjustment in its fee structure and a boost in scholarships. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. 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. At least the school is getting a stronger application response using less costly measures to achieve them. 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