Universal Technical Institute Reports Fiscal Year 2025 First Quarter Results
Universal Technical Institute (NYSE: UTI) reported strong fiscal Q1 2025 results, with revenue increasing 15.3% to $201.4 million. The company demonstrated significant growth with total new student starts up 22.3% and average full-time active students growing 11.1%. Net income surged 113.2% to $22.2 million, while Adjusted EBITDA rose 44.8% to $35.5 million.
Both UTI and Concorde segments showed robust performance. UTI's revenue grew 14% to $131.5 million with 19% increase in new student starts, while Concorde's revenue increased 17.9% to $70 million with 26% growth in new student starts.
Based on strong Q1 performance, the company raised its fiscal 2025 guidance, now expecting revenue of $810-820 million, Adjusted EBITDA of $122-126 million, and new student starts of 28,500-29,500.
Universal Technical Institute (NYSE: UTI) ha riportato risultati solidi per il primo trimestre fiscale del 2025, con un fatturato aumentato del 15,3% a 201,4 milioni di dollari. L'azienda ha mostrato una crescita significativa con un incremento del 22,3% nel numero totale di nuovi studenti e un aumento del 11,1% nel numero medio di studenti attivi a tempo pieno. L'utile netto è aumentato del 113,2% a 22,2 milioni di dollari, mentre l'EBITDA rettificato è cresciuto del 44,8% a 35,5 milioni di dollari.
Sia il segmento UTI che quello Concorde hanno mostrato performance robuste. Il fatturato di UTI è cresciuto del 14% a 131,5 milioni di dollari con un aumento del 19% nel numero di nuovi studenti, mentre il fatturato di Concorde è aumentato del 17,9% a 70 milioni di dollari con una crescita del 26% nel numero di nuovi studenti.
Basandosi su una solida performance del primo trimestre, l'azienda ha aumentato le sue previsioni per l'anno fiscale 2025, ora prevedendo un fatturato di 810-820 milioni di dollari, un EBITDA rettificato di 122-126 milioni di dollari e nuovi studenti compresi tra 28.500 e 29.500.
Universal Technical Institute (NYSE: UTI) informó resultados sólidos para el primer trimestre fiscal de 2025, con ingresos que aumentaron un 15,3% a 201,4 millones de dólares. La compañía demostró un crecimiento significativo con un aumento del 22,3% en el total de nuevos estudiantes y un crecimiento del 11,1% en el promedio de estudiantes activos a tiempo completo. El ingreso neto se disparó un 113,2% a 22,2 millones de dólares, mientras que el EBITDA ajustado creció un 44,8% a 35,5 millones de dólares.
Tanto el segmento UTI como el Concorde mostraron un rendimiento robusto. Los ingresos de UTI crecieron un 14% a 131,5 millones de dólares con un aumento del 19% en nuevos estudiantes, mientras que los ingresos de Concorde aumentaron un 17,9% a 70 millones de dólares con un crecimiento del 26% en nuevos estudiantes.
Basándose en un sólido desempeño en el primer trimestre, la compañía elevó su guía fiscal para 2025, ahora esperando ingresos de 810-820 millones de dólares, EBITDA ajustado de 122-126 millones de dólares y nuevos estudiantes entre 28,500 y 29,500.
유니버설 테크니컬 인스티튜트 (NYSE: UTI)는 2025 회계 연도의 첫 분기 결과를 발표하며, 수익이 15.3% 증가하여 2억 1천 4백만 달러에 이르렀다고 보고했습니다. 이 회사는 총 신규 학생 등록이 22.3% 증가하고, 정규 학생 수가 평균 11.1% 증가하며 상당한 성장을 보여주었습니다. 순익은 113.2% 증가하여 2천 2백 20만 달러에 달하며, 조정 EBITDA는 44.8% 상승하여 3천 5백 50만 달러에 이르렀습니다.
UTI와 Concorde 두 부문 모두 강력한 성과를 보였습니다. UTI의 수익은 14% 증가하여 1억 3천 1백 50만 달러에 달하며, 신규 학생 등록이 19% 증가했으며, Concorde의 수익은 17.9% 증가하여 7천만 달러에 이르렀고 신규 학생 등록은 26% 증가했습니다.
첫 분기의 강력한 성과를 바탕으로 회사는 2025 회계 연도의 전망을 상향 조정하였으며, 이제 수익이 8억 1천만에서 8억 2천만 달러, 조정 EBITDA가 1억 2천 2백만에서 1억 2천 6백만 달러, 신규 학생 등록이 28,500에서 29,500명 사이가 될 것으로 예상하고 있습니다.
Universal Technical Institute (NYSE: UTI) a rapporté de bons résultats pour le premier trimestre fiscal de 2025, avec un chiffre d'affaires en hausse de 15,3% à 201,4 millions de dollars. L'entreprise a connu une croissance significative avec une augmentation de 22,3% du nombre total de nouveaux étudiants et une croissance de 11,1% du nombre moyen d'étudiants actifs à temps plein. Le revenu net a bondi de 113,2% à 22,2 millions de dollars, tandis que l'EBITDA ajusté a progressé de 44,8% à 35,5 millions de dollars.
Les segments UTI et Concorde ont tous deux fait preuve de performances solides. Le chiffre d'affaires d'UTI a augmenté de 14% à 131,5 millions de dollars avec une augmentation de 19% des nouvelles inscriptions d'étudiants, tandis que le chiffre d'affaires de Concorde a augmenté de 17,9% à 70 millions de dollars avec une croissance de 26% des nouvelles inscriptions d'étudiants.
Sur la base de ces solides performances du premier trimestre, l'entreprise a relevé ses prévisions pour l'exercice fiscal 2025, prévoyant désormais un chiffre d'affaires de 810 à 820 millions de dollars, un EBITDA ajusté de 122 à 126 millions de dollars et un total de nouvelles inscriptions d'étudiants entre 28 500 et 29 500.
Universal Technical Institute (NYSE: UTI) berichtete von soliden Ergebnissen für das erste fiskalische Quartal 2025, wobei die Einnahmen um 15,3% auf 201,4 Millionen Dollar stiegen. Das Unternehmen zeigte ein signifikantes Wachstum mit einem Anstieg von 22,3% bei den neuen Studenteneinschreibungen und einem Wachstum von 11,1% bei der durchschnittlichen Anzahl der Vollzeitaktiven Studenten. Der Nettogewinn stieg um 113,2% auf 22,2 Millionen Dollar, während das bereinigte EBITDA um 44,8% auf 35,5 Millionen Dollar anstieg.
Sowohl die UTI- als auch die Concorde-Segmente zeigten eine robuste Leistung. Die Einnahmen von UTI wuchsen um 14% auf 131,5 Millionen Dollar mit einem Anstieg von 19% bei den neuen Studenteneinschreibungen, während die Einnahmen von Concorde um 17,9% auf 70 Millionen Dollar anstiegen, mit einem Wachstum von 26% bei den neuen Studenteneinschreibungen.
Auf Basis der starken Leistung im ersten Quartal hat das Unternehmen seine Prognose für das fiskalische Jahr 2025 angehoben und erwartet nun Einnahmen von 810 bis 820 Millionen Dollar, bereinigtes EBITDA von 122 bis 126 Millionen Dollar und neue Studenteneinschreibungen zwischen 28.500 und 29.500.
- Revenue increased 15.3% to $201.4 million
- Net income more than doubled, up 113.2% to $22.2 million
- New student starts grew 22.3%
- Adjusted EBITDA increased 44.8% to $35.5 million
- Operating cash flow up 111.9% to $23 million
- Raised guidance for all key metrics for fiscal 2025
- Strong balance sheet with $246 million in total available liquidity
- Operating expenses increased 8.4% to $174.0 million
Insights
UTI's Q1 FY2025 results reveal a compelling growth story with strong execution across both segments. The UTI segment delivered
The raised guidance is particularly significant, with revenue now expected between
The FAFSA delay-related enrollment shift from Q4 to Q1 suggests potential normalization in upcoming quarters, but the strong start rate growth (
Delivers Financial and Operational Outperformance in Fiscal Q1; Raises Fiscal 2025 Guidance Ranges for All Metrics
- Revenue of
$201.4 million 15.3% growth versus the comparable period. - Total new student starts grew
22.3% while average full-time active students grew11.1% versus the comparable period. - Net income of
$22.2 million 113.2% over the comparable period. - Adjusted EBITDA(1) of
$35.5 million 44.8% over the comparable period. - Full year guidance raised for all key metrics.
"In the first quarter of 2025, we continued to deliver on our growth, diversification, and optimization strategy, leading to outperformance across our key financial and operational metrics," said Jerome Grant, CEO of Universal Technical Institute, Inc. "Both divisions experienced strong year-over-year growth, with consolidated revenue increasing
"As a reminder, the beginning of this year officially marked the start of our North Star Phase II strategy, building on our proven track record of success and leveraging our strong balance sheet to create value for all stakeholders. Our focus on strategic investments, technological innovation, and strong partnerships positions us to expand our brand, drive enrollment, and continue delivering industry-leading student outcomes. With a clear vision and a commitment to excellence, we are well-positioned to achieve sustainable growth and create a positive impact for our students, faculty, staff, and shareholders in the years to come."
Financial Results for the Three-Month Period Ended December 31, 2024 Compared to 2023
- Revenues increased
15.3% to$201.4 million $174.7 million - Operating expenses increased by
8.4% to$174.0 million $160.5 million - Operating income increased to
$27.5 million $14.2 million - Net income increased to
$22.2 million $10.4 million - Basic and diluted earnings per share ("EPS") were
$0.41 $0.40 $0.18 $0.17 - Adjusted EBITDA(1) increased
44.8% to$35.5 million $24.5 million - Net cash provided by operating activities increased by
111.9% to$23.0 million - Adjusted free cash flow increased
85.1% to$18.9 million - New student starts of 5,313 compared to 4,346, with average full-time active students increasing
11.1% .
UTI
- Revenues of
$131.5 million 14.0% from the comparable period revenues of$115.4 million - Operating expenses were
$106.0 million $100.3 million - Adjusted EBITDA(1) was
$31.9 million $21.6 million - New student starts increased
19.0% to 2,753, while average full-time active students increased8.0% .
Concorde
- Revenues of
$70.0 million 17.9% over the comparable period revenues of$59.3 million - Operating expenses were
$58.8 million $52.2 million - Adjusted EBITDA(1) was
$13.0 million $8.8 million - New student starts increased
26.0% to 2,560, while average full-time active students increased by16.4% .
"Our first quarter results exceeded our expectations across both the top and bottom line," said Christine Kline, Interim CFO of Universal Technical Institute, Inc. "The Concorde division continued its growth trajectory, driven by investments in marketing and admissions efforts that led to higher average full-time student enrollment and improved start rates. The UTI division demonstrated significant year-over-year growth, primarily driven by an increase in new student starts and higher average full-time students, with some of the growth driven by start deferrals from the fourth quarter into the first quarter as a result of FAFSA delays. The top-line growth combined with a shift in timing for strategic investments resulted in lower than anticipated spend in the quarter, and drove the outperformance on the bottom line.
"As we look at the remainder of 2025, we are raising our annual guidance ranges for all key metrics with the expectation to generate
Balance Sheet and Liquidity
At December 31, 2024, the Company's total available cash liquidity was
Updated Fiscal 2025 Financial Outlook
Previous | Updated | ||
FY 2025 | FY 2025 | ||
($ in millions, except EPS) | Guidance | Guidance | |
New student starts | 28,000 - 29,000 | 28,500 - 29,500 | |
Revenue | |||
Net Income | |||
Diluted EPS | |||
Adjusted EBITDA(1) | |||
Adjusted free cash flow(1)(2) |
(1) | See the "Use of Non-GAAP Financial Information" below. For a detailed reconciliation of the non-GAAP measures, see the tables following the earnings release. |
(2) | For FY 2025, assumes approximately |
For the Company's most recent investor presentation and quarterly financial supplement, please see its investor relations website at https://investor.uti.edu.
Conference Call
Management will hold a conference call to discuss the financial results for the fiscal 2025 first quarter ended December 31, 2024, on Wednesday, February 5, 2025, at 4:30 p.m. ET.
To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute, Inc. investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu. Alternatively, the telephone replay can be accessed through February 19, 2025, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 8302718.
Use of Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with
Adjusted EBITDA: The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations.
Adjusted Free Cash Flow: The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations.
Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include:
- Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.
- Restructuring charges: In December 2023, we announced plans to consolidate the two
Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. MIAT-Houston students who have not completed their programs before their program's teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use post-consolidation.
To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission ("SEC"). Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is provided below and investors are encouraged to review the reconciliations.
Forward Looking Statements
All statements contained in this press release and the related conference call, 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). These forward-looking statements which address our 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. Examples of forward-looking statements include, among others, statements regarding (1) the Company's expectation that it will meet its fiscal year 2025 guidance for new student start growth, revenue growth, net income, diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash Flow; (2) the Company's expectation that it will continue to expand its value proposition and build a business that can grow in double digits with potential upside, regardless of the economic environment; and (3) the Company's expectation that it will succeed in new program launches next year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company'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. 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 our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for or our ability to process federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans' benefit programs; continued Congressional examination of the for-profit education sector; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions.; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students' ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the credit agreement; the effect of our principal stockholder owning a significant percentage of our capital stock, and thus being able to influence certain corporate matters and the potential in the future to gain substantial control over our company; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. 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. Any forward-looking statements made by us in this press release and the related conference call are based only on information currently available to us and speak only as of the date on which it is made. We expressly disclaim 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.
Social Media Disclosure
Universal Technical Institute, Inc uses its websites (https://www.uti.edu/, https://concorde.edu, and https://investor.uti.edu/) and LinkedIn pages (https://www.linkedin.com/school/universal-technical-institute/ and https://www.linkedin.com/school/concorde-career-colleges/) as channels of distribution of information about its programs, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and the Company may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company's website and its social media accounts in addition to following the company's press releases, SEC filings, public conference calls, and webcasts.
About Universal Technical Institute, Inc.
Universal Technical Institute, Inc. (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. The Company is comprised of two divisions: Universal Technical Institute ("UTI") and Concorde Career Colleges ("Concorde"). UTI operates 15 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute and NASCAR Technical Institute. Concorde operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care and Diagnostic fields. For more information, visit www.uti.edu or www.concorde.edu, or visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges or on X (formerly Twitter) @news_UTI or @ConcordeCareer.
Company Contact:
Christine Kline
Interim Chief Financial Officer and Chief Accounting Officer
Universal Technical Institute, Inc.
(623) 445-9464
Media Contact:
Susan Aspey
Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(202) 549-0534
saspey@uti.edu
Investor Relations Contact:
Matt Glover or Cody Cree
Gateway Group, Inc.
(949) 574-3860
UTI@gateway-grp.com
(Tables Follow)
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||
Three Months Ended December 31, | |||
2024 | 2023 | ||
Revenues | $ 201,429 | $ 174,695 | |
Operating expenses: | |||
Educational services and facilities | 100,141 | 92,409 | |
Selling, general and administrative | 73,810 | 68,055 | |
Total operating expenses | 173,951 | 160,464 | |
Income from operations | 27,478 | 14,231 | |
Other income (expense): | |||
Interest income | 1,759 | 1,975 | |
Interest expense | (1,673) | (2,871) | |
Other (expense) income, net | (35) | 214 | |
Total other income (expense), net | 51 | (682) | |
Income before income taxes | 27,529 | 13,549 | |
Income tax expense | (5,376) | (3,160) | |
Net income | $ 22,153 | $ 10,389 | |
Preferred stock dividends | — | (1,097) | |
Income available for distribution | $ 22,153 | $ 9,292 | |
Income allocated to participating securities | — | (2,855) | |
Net income available to common shareholders | $ 22,153 | $ 6,437 | |
Earnings per share: | |||
Net income per share - basic | $ 0.41 | $ 0.18 | |
Net income per share - diluted | $ 0.40 | $ 0.17 | |
Weighted average number of shares outstanding(1): | |||
Basic | 53,987 | 36,434 | |
Diluted | 55,406 | 37,439 | |
(1) | On December 18, 2023, the Company exercised in full its right of conversion of the Company's Series A Preferred Stock which resulted in the conversion of all outstanding Series A Preferred shares into 19,296,843 shares of Common Stock. As of December 31, 2024 there were 54,365,529 shares of Common Stock outstanding. |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||
December 31, 2024 | September 30, 2024 | ||
Assets | |||
Cash and cash equivalents | $ 171,999 | $ 161,900 | |
Restricted cash | 5,755 | 5,572 | |
Receivables, net | 27,933 | 31,096 | |
Notes receivable, current portion | 6,224 | 6,200 | |
Prepaid expenses | 12,851 | 11,945 | |
Other current assets | 6,111 | 5,238 | |
Total current assets | 230,873 | 221,951 | |
Property and equipment, net | 262,261 | 264,797 | |
Goodwill | 28,459 | 28,459 | |
Intangible assets, net | 18,007 | 18,229 | |
Notes receivable, less current portion | 39,558 | 36,267 | |
Right-of-use assets for operating leases | 155,666 | 158,778 | |
Deferred tax assets, net | 4,415 | 3,563 | |
Other assets | 14,517 | 12,531 | |
Total assets | $ 753,756 | $ 744,575 | |
Liabilities and Shareholders' Equity | |||
Accounts payable and accrued expenses | $ 81,655 | $ 83,866 | |
Deferred revenue | 88,375 | 92,538 | |
Operating lease liabilities, current portion | 21,688 | 22,210 | |
Long-term debt, current portion | 2,738 | 2,697 | |
Other current liabilities | 7,900 | 3,652 | |
Total current liabilities | 202,356 | 204,963 | |
Deferred tax liabilities, net | 4,696 | 4,696 | |
Operating lease liabilities | 144,409 | 146,831 | |
Long-term debt | 117,327 | 123,007 | |
Other liabilities | 4,992 | 4,847 | |
Total liabilities | 473,780 | 484,344 | |
Commitments and contingencies | |||
Shareholders' equity: | |||
Common stock, | 5 | 5 | |
Paid-in capital - common | 218,023 | 220,976 | |
Treasury stock, at cost, 82 shares as of December 31, 2024 and September 30, 2024. | (365) | (365) | |
Retained earnings | 60,662 | 38,509 | |
Accumulated other comprehensive income | 1,651 | 1,106 | |
Total shareholders' equity | 279,976 | 260,231 | |
Total liabilities and shareholders' equity | $ 753,756 | $ 744,575 | |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||
Three Months Ended December 31, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 22,153 | $ 10,389 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,999 | 6,984 | |
Amortization of right-of-use assets for operating leases | 5,593 | 5,531 | |
Provision for credit losses | 2,101 | 1,486 | |
Stock-based compensation | 720 | 1,482 | |
Deferred income taxes | (671) | (730) | |
Training equipment credits earned, net | (54) | 529 | |
Unrealized gain (loss) on interest rate swaps, net of taxes | 545 | (886) | |
Other (gains) losses, net | (25) | 245 | |
Changes in assets and liabilities: | |||
Receivables | (632) | 1,026 | |
Prepaid expenses and other current assets | (2,165) | (4,060) | |
Other assets | (2,063) | 408 | |
Notes receivable | (3,315) | (2,731) | |
Accounts payable, accrued expenses and other current liabilities | (3,752) | (2,968) | |
Deferred revenue | (4,163) | (4,264) | |
Income tax payable/receivable | 6,398 | 3,301 | |
Operating lease liabilities | (5,426) | (4,708) | |
Other liabilities | (281) | (198) | |
Net cash provided by operating activities | 22,962 | 10,836 | |
Cash flows from investing activities: | |||
Purchase of property and equipment | (3,345) | (3,848) | |
Net cash used in investing activities | (3,345) | (3,848) | |
Cash flows from financing activities: | |||
Payments on revolving credit facility | (5,000) | — | |
Payment of term loans and finance leases | (662) | (618) | |
Preferred share repurchase | — | (11,320) | |
Payments of preferred stock cash dividend | — | (1,097) | |
Proceeds from stock option exercises | 659 | — | |
Payment of payroll taxes on stock-based compensation through shares withheld | (4,332) | (2,054) | |
Net cash used in financing activities | (9,335) | (15,089) | |
Change in cash, cash equivalents and restricted cash | 10,282 | (8,101) | |
Cash and cash equivalents, beginning of period | 161,900 | 151,547 | |
Restricted cash, beginning of period | 5,572 | 5,377 | |
Cash, cash equivalents and restricted cash, beginning of period | 167,472 | 156,924 | |
Cash and cash equivalents, end of period | 171,999 | 143,590 | |
Restricted cash, end of period | 5,755 | 5,233 | |
Cash, cash equivalents and restricted cash, end of period | $ 177,754 | $ 148,823 | |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | ||||||||||||
Student Metrics | ||||||||||||
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | |||||||||||
UTI | Concorde | Total | UTI | Concorde | Total | |||||||
Total new student starts | 2,753 | 2,560 | 5,313 | 2,314 | 2,032 | 4,346 | ||||||
Year-over-year growth(1) | 19.0 % | 26.0 % | 22.3 % | 17.2 % | 533.0 % | 89.4 % | ||||||
Average full-time active students | 15,464 | 9,598 | 25,062 | 14,321 | 8,244 | 22,565 | ||||||
Year-over-year growth | 8.0 % | 16.4 % | 11.1 % | 6.0 % | 6.6 % | 6.2 % | ||||||
End of period full-time active students | 15,052 | 9,524 | 24,576 | 13,682 | 8,150 | 21,832 | ||||||
Year-over-year growth | 10.0 % | 16.9 % | 12.6 % | 8.1 % | 6.8 % | 7.6 % | ||||||
(1) | Total company quarter-over-quarter comparisons are shown on an "as-reported basis." First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022. |
Financial Summary by Segment and Consolidated | |||||||||||||||||
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | ||||||||||||||||
UTI | Concorde | Corporate | Consolidated | UTI | Concorde | Corporate | Consolidated | ||||||||||
Revenue | $ 131,478 | $ — | $ 201,429 | $ 115,373 | $ — | $ 174,695 | |||||||||||
Year-over-year growth(1) | 14.0 % | 17.9 % | — % | 15.3 % | 9.3 % | 311.1 % | — % | 45.6 % | |||||||||
Educational services and facilities | 59,722 | 40,419 | — | 100,141 | 57,368 | 35,041 | — | 92,409 | |||||||||
Selling, general and administrative | 46,303 | 18,337 | 9,170 | 73,810 | 42,915 | 17,153 | 7,987 | 68,055 | |||||||||
Total operating expenses | 106,025 | 58,756 | 9,170 | 173,951 | 100,283 | 52,194 | 7,987 | 160,464 | |||||||||
Year-over-year growth(1) | 5.7 % | 12.6 % | 14.8 % | 8.4 % | 8.8 % | 244.4 % | (3.2) % | 38.9 % | |||||||||
Net income (loss) | 24,328 | 11,165 | (13,340) | 22,153 | 13,597 | 7,173 | (10,381) | 10,389 | |||||||||
Year-over-year growth(1) | 78.9 % | 55.7 % | (28.5) % | 113.2 % | 6.8 % | 1077.2 % | (11.0) % | 292.3 % | |||||||||
(1) | Total company quarter-over-quarter comparisons are shown on an "as-reported basis." First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022. |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||||||
Major Expense Categories by Segment and Consolidated | |||||||
Three Months Ended December 31, 2024 | |||||||
UTI | Concorde | Corporate | Consolidated | ||||
Salaries, benefits and tax expense | $ 51,116 | $ 31,974 | $ 5,096 | $ 88,186 | |||
Bonus expense | 3,567 | 958 | 1,337 | 5,862 | |||
Stock-based compensation expense | 382 | 79 | 259 | 720 | |||
Total compensation and related costs | $ 55,065 | $ 33,011 | $ 6,692 | $ 94,768 | |||
Advertising expense | $ 13,677 | $ 7,362 | $ 189 | $ 21,228 | |||
Occupancy expense, net of subleases | 7,740 | 5,586 | 170 | 13,496 | |||
Depreciation and amortization | 5,971 | 1,709 | 319 | 7,999 | |||
Professional and contract services expense | 2,698 | 1,339 | 3,727 | 7,764 | |||
Three Months Ended December 31, 2023 | |||||||
UTI | Concorde | Corporate | Consolidated | ||||
Salaries, benefits and tax expense | $ 45,367 | $ 28,192 | $ 3,563 | $ 77,122 | |||
Bonus expense | 3,494 | 857 | 1,022 | 5,373 | |||
Stock-based compensation expense | 470 | 8 | 1,003 | 1,481 | |||
Total compensation and related costs | $ 49,331 | $ 29,057 | $ 5,588 | $ 83,976 | |||
Advertising expense | $ 13,353 | $ 6,092 | $ — | $ 19,445 | |||
Occupancy expense, net of subleases | 7,607 | 5,798 | 150 | 13,555 | |||
Depreciation and amortization | 5,494 | 1,154 | 336 | 6,984 | |||
Professional and contract services expense | 2,587 | 1,870 | 2,507 | 6,964 | |||
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | |||||||
Three Months Ended December 31, 2024 | |||||||
UTI | Concorde | Corporate | Consolidated | ||||
Net income (loss) | $ 24,328 | $ 11,165 | $ (13,340) | $ 22,153 | |||
Interest income | (8) | (40) | (1,711) | (1,759) | |||
Interest expense | 1,140 | 70 | 463 | 1,673 | |||
Income tax expense | — | — | 5,376 | 5,376 | |||
Depreciation and amortization | 5,971 | 1,709 | 319 | 7,999 | |||
EBITDA | 31,431 | 12,904 | (8,893) | 35,442 | |||
Stock-based compensation expense | 382 | 79 | 259 | 720 | |||
Integration-related costs for completed acquisitions(1) | — | — | (700) | (700) | |||
Restructuring costs | 43 | — | — | 43 | |||
Adjusted EBITDA, non-GAAP | $ 31,856 | $ 12,983 | $ (9,334) | $ 35,505 | |||
Three Months Ended December 31, 2023 | |||||||
UTI | Concorde | Corporate | Consolidated | ||||
Net income (loss) | $ 13,597 | $ 7,173 | $ (10,381) | $ 10,389 | |||
Interest income | (6) | (128) | (1,841) | (1,975) | |||
Interest expense | 1,512 | 83 | 1,276 | 2,871 | |||
Income tax expense | — | — | 3,160 | 3,160 | |||
Depreciation and amortization | 5,494 | 1,154 | 336 | 6,984 | |||
EBITDA | 20,597 | 8,282 | (7,450) | 21,429 | |||
Stock-based compensation expense | 471 | 8 | 1,003 | 1,482 | |||
Integration-related costs for completed acquisitions(2) | 500 | 462 | 612 | 1,574 | |||
Restructuring costs | 43 | — | — | 43 | |||
Adjusted EBITDA, non-GAAP | $ 21,611 | $ 8,752 | $ (5,835) | $ 24,528 | |||
(1) | During the three months ended December 31, 2024, the Company received |
(2) | Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in "Integration-related costs for completed acquisitions." In prior quarters, these costs were presented in a line labeled "Start-up costs for new campuses and program expansion." As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow | |||
Three Months Ended December 31, | |||
2024 | 2023 | ||
Net cash provided by operating activities, as reported | $ 22,962 | $ 10,836 | |
Purchase of property and equipment | (3,345) | (3,848) | |
Free cash flow, non-GAAP | 19,617 | 6,988 | |
Adjustments: | |||
Cash outflow for integration-related costs for completed acquisitions(1)(2) | (700) | 1,652 | |
Cash outflow for integration-related property and equipment(2) | — | 1,592 | |
Cash outflow for restructuring costs and property and equipment | 28 | 5 | |
Adjusted free cash flow, non-GAAP | $ 18,945 | $ 10,237 | |
(1) | During the three months ended December 31, 2024, the Company received |
(2) | Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in "Cash outflow for integration-related costs for completed acquisitions" and "Cash outflow for integration-related property and equipment." In prior quarters, these costs were presented in the lines labeled "Cash outflow for start-up costs for new campuses and programs expansion" and "Cash outflow for property and equipment for new campuses and program expansion." As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES | |
For each of the non-GAAP reconciliations provided for updated fiscal 2025 guidance, we are reconciling to the midpoint of the guidance range. The adjustments reflected below for updated fiscal 2025 are illustrative only and may change throughout the year, both in amount or the adjustments themselves. | |
Reconciliation of Net Income to EBITDA and Adjusted EBITDA for Fiscal 2025 Guidance | |
Updated | |
Twelve Months Ended | |
September 30, | |
2025 | |
Net income | ~ |
Interest (income) expense, net | ~ 1,000 |
Income tax expense | ~ 20,200 |
Depreciation and amortization | ~ 33,500 |
EBITDA | ~ 110,700 |
Stock-based compensation expense | ~ 9,000 |
Acquisition related costs(1) | ~ 3,000 |
Integration-related costs for completed acquisitions(2) | ~ (700) |
Restructuring costs | ~ 2,000 |
Adjusted EBITDA, non-GAAP | ~124,00 |
FY 2025 Guidance Range | |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow for Fiscal 2025 Guidance | |
Updated | |
Twelve Months Ended | |
September 30, | |
2025 | |
Net cash provided by operating activities | ~ |
Purchase of property and equipment | ~ (55,000) |
Free cash flow, non-GAAP | ~ 58,200 |
Adjustments: | |
Cash outflow for acquisition related costs(1) | ~ 3,000 |
Cash outflow for integration-related costs for completed acquisitions(2) | ~ (700) |
Cash outflow for restructuring costs and property and equipment | ~ 2,000 |
Adjusted free cash flow, non-GAAP | ~ 62,500 |
FY 2025 Guidance Range | |
(1) | FY25 projected spend on acquisition related costs is an estimate and is fully contingent on whether the Company pursues an acquisition this year. |
(2) | During the three months ended December 31, 2024, the Company received |
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SOURCE Universal Technical Institute, Inc.
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