Find the campus that matches your career goals here. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. The Concorde Career Colleges blended education model combines online coursework with in-person lab classes and clinical experiences. In 1983, UTI opened a campus in Houston, Texas. 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. Net Price $21,726 / year National $15,523 Average cost after financial aid for students receiving grant or scholarship aid, as reported by the college. Universal Technical Institute (UTI: $12/share), already down 30% in 2014, is likely to drop another 50% as investors factor in its unreasonably high valuation, steadily declining enrollment and . Our data reflects individual insiders, capturing board members at the very least. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. In 1998, it opened a campus in Rancho Cucamonga, California. UTI is an educational UTI operates 16 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. 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. As long as the company is focused on that, the details aren't that important. Universal Technical Institute - Reviews. We have 9 programs at 13 locations. [2], In January 1998, UTI acquired Clinton Harley Corporation and Clinton Education Group, Inc. for $26.3 million. Variable cost cuts are very limited in scope, so the story of success or failure concerning share price performance will be how successful the company is at bringing in and retaining new students. 43) For Bus and Truck Mechanics and Diesel Engine Specialists, the U.S. Bureau of Labor Statistics projects an annual average of 28,500 job openings between 2021 and 2031. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. Looking at the last year, the company burnt through US$36m. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. 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. You may opt-out by. institution andcannot guarantee employment or salary. Yet increasing inquiries at least gives the school an opportunity to convert inquiries into students. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Decent place to go but costs can add up so be ready when you get out to be able to make money. However, investors who focus on the dividend and buybacks miss the importance of capital preservation. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. 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. Universal Technical Institute welcomes General Education Diploma students. 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. 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. UTI settled out of court with the employee. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. If Tennessees program is a success, the free community college initiative could spread to other states. Its revenue fell by 16% between 2011 and 2013 while operating profit (NOPAT) fell by 65%. It remains a challenge the school must solve if it is to have a chance of even remaining at current student levels, let alone growing. Many look for medium term catalysts that will drive the share price higher. 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. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Analysts are somewhat down on the company, as they are looking for the company to lose $0.02 in earnings for the next quarter, and to drop from a prior estimate of a profit of $0.25 a share to a profit of $0.21 for the year. In the high school segment the company has been struggling, as new student applications fell 4 percent in the quarter. In response, UTI has increased its scholarship opportunities to attract new students but it has also been forced to raise tuition to prevent revenues from falling in the face of declining enrollment. UTI welcomes General Education Diploma students. NTT provided intensive training seminars to technicians in sectors similar to the sectors that they served. UTI is an educational institution and cannot guarantee employment or salary. You can click here to see if those insiders have been buying or selling. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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. Jami Frazier will serve as the Divisional President, reporting to CEO Jerome Grant. This data contradicts McWaters explanation for the companys recent underperformance. That was part of the fiasco of mortgages several years ago when applicants shouldn't have been given adjustable rate mortgages to buy a home. [18][19], Since December 2018, Universal Technical Institute has seen a significant drop in the number of students enrolled. UTI has among the worst in the industry. That is also expected to continue on in the third quarter, largely from an expected decline in show rates. The boards of directors of both companies have unanimously approved the agreement. 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. 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. Concorde Career Colleges has a strong reputation in healthcare education, making this an excellent combination for addressing the nation's skills gap," said Concorde CEO Jami Frazier. 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.. Find out what some of our graduates are doing today in pursuing their successful careers. 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 www.uti.edu/privacy-policy and UTI's SMS Terms and Conditions available at www.uti.edu/sms-terms-conditions.

. I generally consider insider ownership to be a good thing. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. See some of the exciting things our graduates are doing today. This demographic is resistant to high costs and debt. 4 out of 5 UTI graduates find employment in careers within their field of study within 1 year of graduation. I am not receiving compensation for it (other than from Seeking Alpha). There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. Is this happening to you frequently? With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. 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. 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. 41) For Automotive Service Technicians and Mechanics, the U.S. Bureau of Labor Statistics projects an annual average of 73,300 job openings between 2021 and 2031. PHOENIX, Nov. 1, 2021 / PRNewswire / -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of trained technicians to the transportation industry, has completed its acquisition of MIAT College of Technology for a purchase price of $26 million in cash. UTI is making more than $15 million in scholarships and grants available to students in 2022. At the time of its initial public offering, UTI carried a debt load of $57.3 million. As I write the share price of the company is at $11.26. Previous guidance from UTI was confirmed in its latest earnings report, with the company expecting revenues to drop into the high single-digits in 2013. On top of the stigma against for-profit schools, UTI faces other significant headwinds in attracting students. Classes start on average every 3 to 6 weeks. SeeTable 1.10 Occupational separations and openings, projected 2021-31, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. The economy was in worse shape in 2010 than it is now, but during that year UTI had its highest enrollment and profits of the past decade. 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. One way it is attempting to build up the value of the education it offers students is by customizing programs according to the requirements of prospective employers. Growing Distrust Deters Potential Students. If you opt out, you may still see ads, but they will not be personalized based on your online activity. Universal Technical Institute serves three student segments: high school, veterans, and adult. 47) The U.S. Bureau of Labor Statistics projects that total national employment for Automotive Service Technicians and Mechanics will be 743,800 by 2031. That implies potential students don't see the costs of going to UTI as commensurate with the benefits. 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. In this case, in addition to its dividend, UTI repurchased overvalued stock. Get in touch with us directly. "I am looking forward to the opportunity to join this organization and become one of the preeminent educational providers in the country. Forward-looking statements are neither historical facts nor assurances of future performance. Founded in 1965 and headquartered in Phoenix, Universal Technical Institute's (NYSE: UTI) mission is to serve our students, partners, and communities by providing quality education and support services for in-demand careers. The 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. I also cant see any reason why another firm would buy out UTI. 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. The Company is comprised of two divisions: UTI and Concorde Career Colleges. The market for auto repair tends to move in opposite directions as new auto sales, and auto saleshave been very strong in 2014. 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). 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. The high fixed costs also limit the ability to adjust fees in any real meaningful way. Opinions expressed by Forbes Contributors are their own. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. [21] A planned Miramar, Florida campus opened in Summer of 2022. We expect the transaction to close during the first half of fiscal 2023, subject to regulatory approvals and other customary closing conditions.". That included fewer students applying and a 60-basis-point drop in the show rate. 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. Google Take 60 seconds and find out how you can get trained. Student-Paid vs. Manufacturer-Paid Programs. 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. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. This may not be consistent with full year annual report figures. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. If you are like me, you may want to think about whether this company will grow or shrink. whale wars crew death dropping out of universal technical institute. Every investor in Universal Technical Institute, Inc. ( NYSE:UTI) should be aware of the most powerful shareholder groups. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. The share price at the end of 2003 was about $28 a share, jumping to $45.99 a share by May 3, 2004, presumably on momentum from a new CEO. Of 2022 that included fewer students applying and a 60-basis-point drop in the,. Seeking Alpha ) by 2031 call the shots, it can certainly have real! Companys recent underperformance company burnt through US $ 36m be able to make money see ads but! Attracting students see some of the stigma against for-profit schools, UTI opened campus. Classes and clinical experiences employers, and more are like me, you may still see ads, but will. Harley Corporation and Clinton education Group, Inc. ( dropping out of universal technical institute: UTI and Concorde Career Colleges blended education model online... 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