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. Sam McBride and Andr Rouillard contributed to this report. This rate excludes graduates not available for employment because of continuing education, military service, health, incarceration, death or international student status. 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. I am a former investment advisor and owner of several businesses. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. What type of Diploma or Certificate will/did you obtain? "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. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. Student-Paid vs. Manufacturer-Paid Programs, Table 1.10 Occupational separations and openings, projected 2021-31, Table 1.2 Employment by detailed occupation, 2021 and projected 2031. UTI has not entirely avoided allegations of wrongdoing either. I also look forward to welcoming Jami Frazier and her talented team to the company. The company is headquartered in Phoenix, Arizona. While UTI has no debt on its balance sheet, it has operating lease commitments with a present value of over $142 million, or an alarming 60% of the companys market value. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. Since that time UTI has purchased $8.8 million in shares under the program at an average price of $11-$12 per share, which gives a buyback yield of 3.8%. 2023 Universal Technical Institute, Inc. All rights reserved. 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. SOURCE Universal Technical Institute, Inc. Download our catalogs and learn about programs, courses, tuition, fees, admissions and much more. 1) UTI is an educational institution and cannot guarantee employment or salary. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, and to review the applicable Gainful Employment disclosure, visit our website at www.uti.edu/disclosures. You may opt-out by. Search trends for automotive education are down 10% year-over-year. That level of sustained growth seems unlikely given the many problems facing UTIs industry. The rate includes graduates who completed manufacturer-specific advanced training programs and those employed in positions that were obtained before or during their UTI education, where the primary job duties after graduation align with the educational and training objectives of the program. Dividends also generally pay out capital that could be better used to buy back stock that is undervalued. UTI is overvalued, has significant downward momentum, and major headwinds in its industry. The private educational sector continues to face a lot of headwind, and UTI hasn't done very well at successfully implementing new strategies to deal with the realities of the market they serve. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. PTA organized lecture training seminars in markets similar to NTT. As long as the company is focused on that, the details aren't that important. [2], In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA). Universal Technical Institute - Reviews. As a result, the company is likely to default on the promises implied by the stocks lofty valuation. Simply Wall St has no position in any stocks mentioned. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. Universal Technical Institute (NYSE:UTI) has been struggling lately, and there's little to suggest this stock is going to recover anytime soon, making it a good candidate to short or get out of altogether. The current price of the stock implies the company will generate outsized profit growth far beyond what I think is likely to occur. 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. 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. The NTT business was discontinued at a loss of $42.9 million. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. For internal reporting purposes, Concorde defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for items not considered part of the company's normal recurring operations. If you are like me, you may want to think about whether this company will grow or shrink. 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." About Universal Technical Institute, Inc. Universal Technical Institute (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand . Looking at the last year, the company burnt through US$36m. Some UTI graduates get jobs within their field of study in positions other than as a technician, such as: parts associate, service writer, fabricator, paint and paint prep, and shop owner/operator. Visit School's Website Universal Technical Institute - Lisle Cost Value B minus Based on average net price, earnings potential, student and alumni reviews, and additional factors. 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? Universal Technical Institute will support Concorde's existing efforts to expand the healthcare opportunities for students and alumni, including adding new programs (pending regulatory approval), growing existing online offerings, and optimizing the current campus locations to enhance the opportunity for past, current and future students to increase their skills. "This transaction marks a major milestone in executing our strategy as we expand the scope of our skilled education programs to serve students' varied workforce-training needs and drive growth for the company. Learn more about how we assist our veterans from VA funding to exclusive scholarships. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. We aim to bring you long-term focused analysis driven by fundamental data. 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. With 70% stake, institutions possess the maximum shares in the. 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. For those that are open to it, it is difficult for many to obtain the student financing needed to go to school. I understand that my consent is not required to apply, enroll or make any purchase. Job openings include openings due to net employment changes and net replacements. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. click here to see if those insiders have been buying or selling. Concorde Career Colleges operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care, and Diagnostic fields. But to understand Universal Technical Institute better, we need to consider many other factors. This data contradicts McWaters explanation for the companys recent underperformance. The fall in revenue was directly tied to the decline in students attending the school. "We are pleased to welcome Concorde's leadership team, faculty and staff, and, most importantly its students, to the Company," said Universal Technical Institute Chief Executive Officer Jerome Grant. [7], On September 27, 2016, UTI reported that its president and CFO, Eugene Putnam, was removed as part of a financial improvement plan and that Kim McWaters replaced him as president. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. 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. UTI is an educational institution and cannot guarantee employment or salary. Keeping things as they are won't cut it. Bulls focus on UTI's assets and clean balance sheet but overlook the company's. If they do, the company may get a bump up in share price because of low expectations. Concorde ended 2021 with approximately 7,400 students and delivered approximately. 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. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. They aren't always helpful and tuition way overpriced. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. That means it had a cash runway of about 2.2 years as of March 2021 . Of those three veterans continue to be the most successful segment, with 21 straight quarters of. If it is, UTI has a future, if not, the share price will continue to take a big hit. 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. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. 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. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. Student-Paid vs. Manufacturer-Paid Programs. For further details on how we use your data, please review UTI's Privacy Policy. Additionally, if you disable your cookies or upgrade your browser after opting out, you will need to opt-out again. Many institutions measure their performance against an index that approximates the local market. In order to justify its current valuation of ~$9.50/share, UTI mustgrow NOPAT by 17% compounded annually for 12 years. 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). As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. Talk to potential employers to learn more about the programs available in your area. In this case, in addition to its dividend, UTI repurchased overvalued stock. Community colleges provide the main competition for for-profit schools, including automotive education. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. Those numbers are likely to fall. 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) . Its also becoming harder for UTI to reach prospective students in the first place. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). [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." To that end the company hasn't done too badly, as it has been able to cut advertising costs by 8 percent while boosting the number of people checking out what the school has to offer. 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. UTI has stated in its most recent conference call that it expects enrollment to continue to decline for the next several quarters, and this decline may accelerate if the tuition increases remain. One will be comprised of Concorde and its leading healthcare education programs and campuses. However, such a recovery seems highly unlikely. As at March 2021, Universal Technical Institute had cash of US$78m and no debt. Universal Technical Institute (UTI) is a leading provider of career training for the transportation, skilled trade and energy industries. Come take a look at our hands-on labs with state-of-the-industry equipment and technology. Current CEO Kimberly J. McWaters started as CEO in October 1, 2003, at a very young age. 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. UTI is currently in the process of updating a variety of its curriculum to include EV maintenance. I dont see any significant positive catalyst on the horizon that can reverse this downward trend. By simply Wall St has no position in any stocks mentioned or salary click here to see those. 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