UTI has struggled in recent years. Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Factoring in this hidden liability reveals that UTI is much less profitable than it appears on the surface. This demographic is resistant to high costs and debt. This should lead to better outcomes for students, which will increase the value of the courses offered and decrease price and debt resistance. 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. That means it had a cash runway of about 2.2 years. This shows at least some alignment. There is an outside possibility new student starts may improve in the fourth quarter, although it would be a surprise. For more information, visit www.uti.edu, or follow on LinkedIn @UniversalTechnicalInstitute and on Twitter @news_UTI. Divided Government And The Way Forward For The Markets, How Negativity Bias Leads To Mistakes In Portfolios, Transforming The Wealth Management Experience For Todays Client, MoneyStamps Of South America - As Investments, Theyre Different Part 1, Covid-19 Related Municipal Defaults Begin, The Dynamics Of Price Discovery In The Stamp Market, limit the amount of debt that students can take on in career-training programs, grow NOPAT by 17% compounded annually for 12 years. Awards vary due to specific conditions, criteria and state. You may opt-out by. 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. 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. I also cant see any reason why another firm would buy out UTI. UTI cannot guarantee employment or salary. MIAT College of Technology has joined UTIs family of schools! As a result, advertising expense has increased by $2 million in 2014, which breaks a trend of several years of declining advertising expense. Figure 1 shows that average enrollment at UTI colleges peaked in 2010 and has been on the decline since. While UTI likes to trumpet its 80% job placement rate, it is difficult for students pay off loans of almost $50,000 for tuition and living costs on an entry-level mechanics salary. 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. One of the major problems UTI has faced for some time has been the conversion of inquiries into applications. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. 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. 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. Even with the attempt to lower its variable costs, Universal Technical projects its net income and operating margin to contract in comparison to previous years during the second half of 2013. Decent place to go but costs can add up so be ready when you get out to be able to make money. Further, if you use multiple browsers or devices, you will need to execute this opt-out on each browser or device. UTI is an educational institution and cannot guarantee employment or salary. We aim to bring you long-term focused analysis driven by fundamental data. Google Universal Technical Institute serves three student segments: high school, veterans, and adult. 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. easier for students to qualify by lower eligibility restrictions and making them more accessible to students. 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. 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. Dividends Cannot Protect You From A Big Drop In the Stock Price. 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). Universal Technical Institute serves three student segments: high school, veterans, and adult. The fall in revenue was directly tied to the decline in students attending the school. Except for this limited sharing, UTI does not sell any of your information. 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. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. UTI is an educational institution and cannot guarantee employment or salary. UTIs management blames the companys issues on the poor economy. If they do, the company may get a bump up in share price because of low expectations. They aren't always helpful and tuition way overpriced. UTI has among the worst in the industry. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. I think UTI is treating investors like the company treats many of its graduates. PHOENIX, July 19, 2021 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of transportation technician training, today announced that it plans to report results for the third quarter of fiscal 2021 ended June 30, 2021 on Monday, August 2, 2021, after market close. 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%. 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. A more reasonable scenario of6% NOPAT growth for 10 yearsyields a fair value of just $3.75/share 60% downside. Learn more about how we assist our veterans from VA funding to exclusive scholarships. 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 . 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? whale wars crew death dropping out of universal technical institute. A drop to the mid-to-high single digits for new student starts is the reasoning there. The high school segment is made up largely of males as it relates to UTI, and it's working on engaging that tough demographic by building relationships with the students while they're in high school. 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) . Management understands what must be done, but the overwhelming negative trend in the market will be hard to overcome no matter what changes are made. At the time of its initial public offering, UTI carried a debt load of $57.3 million. "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. The growing strategy on the part of students to test out of college courses to lower costs and the time it takes to graduate also doesn't bode well for UTI and similar educational institutions. UTI also authorized a buyback program of $25 million in 2011. SeeTable 1.2 Employment by detailed occupation, 2021 and projected 2031, U.S. Bureau of Labor Statistics,www.bls.gov, viewed October 13, 2022. You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. rate. I understand that my consent is not required to apply, enroll or make any purchase. 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. It offers diploma, undergraduate degree, and certificate programs. 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. Combined it resulted in the operating loss of $1.9 million in the second quarter. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements.

By submitting this form, I agree that MIAT College of Technology, Universal Technical Institute, Inc., Custom Training Group, Inc. and their representatives may email, call, and / or text me with marketing messages about educational programs and services, as well as for school-related communications, at any phone number I provide, including a wireless number, using prerecorded calls or automated technology. In 1998, it opened a campus in Rancho Cucamonga, California. UTI is an educational institution and cannot guarantee employment or salary. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. 10) Financial aid, scholarships and grants are available to those who qualify. 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. Find the campus that matches your career goals here. 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. 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 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. Many institutions measure their performance against an index that approximates the local market. UTI may be able to pay out a high dividend and maintain its buyback for a while, but unless it can manage a dramatic and improbable turnaround in its business, the stock will continue to fall. Universal Technical Institute's campuses are accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), while its employer-aligned technical training programs are offered under four brands:Universal Technical Institute, Motorcycle Mechanics Institute / Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. Since there isn't much else the company can do, as it must increase student starts, it apparently is a risk it's willing to take to stem the steep decline in its student body. 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. These schools, along with UTI rank at the bottom of the list in every metric. The NTT business was discontinued at a loss of $42.9 million. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive. The numbers dont support this story. The school offers specialized technical education programs under the banner of several brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI), MIAT College of Technology (MIAT), and NASCAR Technical Institute (NTI). Media Contactavitucci@uti.edu480.710.6843. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. You can exercise your right to opt Government initiatives have played a big role in this shift. Job openings include openings due to net employment changes and net replacements. Take 60 seconds and find out how you can get trained. Universal Technical Institute, Inc. (UTI) is a private for-profit system of technical colleges throughout the United States. EBITDA stood at $4.2 million in comparison to $89.5 million in 2012 in the second quarter. I also look forward to welcoming Jami Frazier and her talented team to the company. I am not receiving compensation for it (other than from Seeking Alpha). Universal Technical Institute was founded in 1965. Please disable your ad-blocker and refresh. 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. You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. We have a team of specialists who work with national dealerships, distributors and other employers of all sizes to identify potential jobs for graduates. 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. 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). UTI is overvalued, has significant downward momentum, and major headwinds in its industry. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. Increasing inquiries is one thing, converting them to students is another; and UTI hasn't been good at doing that recently. Student-Paid vs. Manufacturer-Paid Programs. Find out what some of our graduates are doing today in pursuing their successful careers. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Bulls focus on UTI's assets and clean balance sheet but overlook the company's. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. Luckily, you can check this free report showing analyst forecasts for its future. Learning is hands on so no online classes to get it done. "On behalf of the Concorde team, I am excited to be joining Universal Technical Institute," said Concorde Chief Executive Officer Jami Frazier. Concerned about the content? 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. 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. Universal Technical Institute (UTI) suffers from unreasonably high valuation and steadily declining enrollment. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. 14) Incentive programs and employee eligibility are at the discretion of the employer and available at select locations. We choose to disclose this non-GAAP financial measure for Concorde because it provides an additional performance measure. If it is, UTI has a future, if not, the share price will continue to take a big hit. 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. Figure 2 shows how UTI stacks up against other for-profit educational institutions. For more information about cookies you can visit https://www.allaboutcookies.org. Find out more here. Special conditions may apply. 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. Access your no-cost report to get info on jobs in demand in your area, industry insight from top employers, and more. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. What type of Diploma or Certificate will/did you obtain? Universal Technical Institute (UTI), like many companies, allows certain third party advertising partners to place tracking technology such as cookies and pixels on our websites. Find out more in our resources. UTI cannot guarantee employment or salary. UTI thrived in the first couple years of the recession. 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. 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.. In the second quarter that continued with a year-over-year growth rate of 14 percent. 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. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. 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. 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. 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. 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. 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. [2], In June 1998, UTI acquired National Technology Transfer, Inc. (NTT) and Performance Training Associates (PTA). Figure 2: Overvalued and Underperforming in a Struggling Industry, Competition from Free Alternatives Is A Killer. 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. Upon completion of the Concorde acquisition, the company will serve over 20,000 students across 14 states and 312locations.

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