HOUSTON, TX / ACCESS Newswire / September 8, 2025 / PATTERSON-UTI ENERGY, INC. (NASDAQ:PTEN) today reported that for the month of August 2025, the Company had an average of 94 drilling rigs operating in the United States. ...

Summary of Universal Technical Institute (UTI) FY Conference Call Company Overview - **Company Name**: Universal Technical Institute (UTI) - **Industry**: Workforce education provider focusing on transportation, skilled trades, and healthcare educational programs - **Stock Symbol**: UTI (traded on NYSE) - **Current Active Students**: Approximately 22,000 with a target of 30,000 new student starts for the year [6][39] Financial Performance and Projections - **Revenue Guidance for FY 2025**: Expected to be between $830 million and $835 million, representing a growth of approximately 14% [38] - **Net Income Growth**: Anticipated to grow by about 30% [38] - **Adjusted EBITDA**: Projected to be around $126 million, with a growth of approximately 22% [39] - **Long-term Revenue Target**: Aiming for $1.1 billion by 2029 with adjusted EBITDA exceeding $200 million [6][36] Strategic Focus - **North Star Strategy**: Focused on growth, diversification, and optimization, with plans to add 12 to 20 new programs annually and open 3 to 5 new campuses each year from 2026 to 2029 [24][19] - **Market Demand**: There are currently 4 to 5 job openings for every UTI graduate, indicating a strong demand for skilled labor in the market [14] - **Industry Alignment**: UTI claims to be the most industry-aligned educator in the U.S., with over 35 manufacturer partners, enhancing job placement and graduate wages [15] Educational Offerings - **Program Expansion**: UTI has acquired MIT College of Technology and Concord Career College, expanding into aviation, HVAC, electronics, and allied health [21][12] - **Student Outcomes**: Over 70% of students graduate on time, and over 85% secure jobs within the first year of graduation [9] - **Blended Learning Model**: Transitioning to a blended learning model allows students to spend less time on campus, facilitating work-life balance [18] Campus and Real Estate Strategy - **Current Campuses**: 32 campuses with plans to expand to 50-55 by 2029 [13] - **Real Estate Optimization**: UTI has reduced its physical space from 2.5 million square feet to 2 million square feet, focusing on revenue per square foot [20] Financial Aid and Student Debt - **Typical Student Financial Aid**: Students typically receive $10,000 to $12,000 in Pell Grants and around $20,000 in federally backed Stafford loans [43][44] - **Debt Levels**: Average student debt upon graduation is approximately $20,000 [48] Employment Community Engagement - **Employer Partnerships**: UTI has established agreements with employers to facilitate job placements, offering sign-on bonuses and tuition reimbursement to attract graduates [49] - **Job Fair Success**: Recent job fairs have shown high demand, with 1,500 open jobs available for 600 students in the auto program [50] Regulatory and Compliance - **Cohort Default Rate**: Currently at zero due to the pause in student loan collections since 2020, with historical rates around 12-13% [55] Conclusion - UTI is positioned for significant growth in the workforce education sector, with a strong focus on meeting market demand, optimizing operations, and expanding educational offerings. The company aims to leverage its industry partnerships and innovative learning models to enhance student outcomes and financial performance.

KANSAS CITY, Mo., Aug. 13, 2025 /PRNewswire/ -- Concorde Career Colleges and Heartland Dental today announced the recipients of the 2025 Heartland Dental Hygiene Scholarships. Heartland is awarding a total of $24,000 in scholarships to students at Concorde campuses nationwide who demonstrate exceptional dedication, passion, and potential in the field of dental hygiene. Heartland Dental is one of the largest dental support organizations in the nation and a longtime partner with Concorde to help address the n ...

[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements subject to various risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Key risk factors include compliance with regulatory requirements, shifts in higher education laws, ability to maintain federal student financial assistance, execution of growth and diversification strategy, and macroeconomic conditions[12](index=12&type=chunk) [Part I. Financial Information](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Universal Technical Institute, Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, recent pronouncements, and specific financial line items [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | September 30, 2024 | Change | % Change | | :-------------------- | :------------ | :----------------- | :----- | :------- | | **Assets** | | | | | | Cash and cash equivalents | $70,672 | $161,900 | $(91,228) | -56.3% | | Total current assets | $185,180 | $221,951 | $(36,771) | -16.6% | | Total assets | $740,759 | $744,575 | $(3,816) | -0.5% | | **Liabilities** | | | | | | Total current liabilities | $185,025 | $204,963 | $(19,938) | -9.7% | | Long-term debt | $70,942 | $123,007 | $(52,065) | -42.3% | | Total liabilities | $433,972 | $484,344 | $(50,372) | -10.4% | | **Shareholders' Equity** | | | | | | Total shareholders' equity | $306,787 | $260,231 | $46,556 | 17.9% | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, presenting revenues, expenses, and net income Condensed Consolidated Statements of Operations (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenues | $204,298 | $177,458 | $613,174 | $536,329 | | Total operating expenses | $190,146 | $170,012 | $554,691 | $503,460 | | Income from operations | $14,152 | $7,446 | $58,483 | $32,869 | | Net income | $10,663 | $4,985 | $44,262 | $23,161 | | Net income per share - basic | $0.20 | $0.09 | $0.82 | $0.40 | | Net income per share - diluted | $0.19 | $0.09 | $0.80 | $0.39 | - Revenues increased by **15.1%** for the three months ended June 30, 2025, and by **14.3%** for the nine months ended June 30, 2025, compared to the prior year periods[18](index=18&type=chunk) - Net income more than **doubled** for both the three-month and nine-month periods ended June 30, 2025, compared to the prior year periods[18](index=18&type=chunk) [Condensed Consolidated Statements of Other Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Other%20Comprehensive%20Income) This section details components of comprehensive income beyond net income, such as unrealized gains or losses on financial instruments Condensed Consolidated Statements of Other Comprehensive Income (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $10,663 | $4,985 | $44,262 | $23,161 | | Unrealized loss on interest rate swaps, net of taxes | $(251) | $(6) | $(92) | $(539) | | Comprehensive income | $10,412 | $4,979 | $44,170 | $22,622 | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%27%20Equity) This section tracks changes in the company's equity over time, reflecting net income, stock-based compensation, and share transactions - Total shareholders' equity increased from **$260.2 million** at September 30, 2024, to **$306.8 million** at June 30, 2025, primarily driven by net income and stock-based compensation[16](index=16&type=chunk)[24](index=24&type=chunk) - Retained earnings significantly increased from **$38.5 million** at September 30, 2024, to **$82.8 million** at June 30, 2025[16](index=16&type=chunk)[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by the company across operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $40,226 | $18,361 | | Net cash used in investing activities | $(78,273) | $(16,508) | | Net cash used in financing activities | $(56,026) | $(39,661) | | Change in cash, cash equivalents and restricted cash | $(94,073) | $(37,808) | | Cash, cash equivalents and restricted cash, end of period | $73,399 | $119,116 | - Operating cash flow more than **doubled** year-over-year, reaching **$40.2 million** for the nine months ended June 30, 2025[29](index=29&type=chunk) - Significant cash was used in investing activities (**$78.3 million**) primarily for held-to-maturity investments and property and equipment purchases[29](index=29&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1 - Nature of the Business](index=15&type=section&id=Note%201%20-%20Nature%20of%20the%20Business) This note describes the company's business as a workforce solutions provider in transportation, skilled trades, and healthcare education - Universal Technical Institute, Inc. is a workforce solutions provider offering transportation, skilled trades, and healthcare education programs through two reportable segments: UTI and Concorde[33](index=33&type=chunk) - UTI operates **15 campuses** in nine states, focusing on transportation and skilled trades, including manufacturer-specific training Concorde operates **17 campuses** and online, offering allied health, dental, nursing, patient care, and diagnostic programs[33](index=33&type=chunk)[34](index=34&type=chunk) - Primary revenue source is student tuition and fees, largely funded by federal financial aid programs (Title IV) and veterans' benefits[36](index=36&type=chunk) [Note 2 - Basis of Presentation](index=15&type=section&id=Note%202%20-%20Basis%20of%20Presentation) This note explains the preparation of the unaudited interim financial statements in accordance with GAAP and Form 10-Q instructions - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and Form 10-Q instructions, including normal and recurring adjustments[37](index=37&type=chunk) - No material changes in significant accounting policies or estimates from the 2024 Annual Report on Form 10-K[39](index=39&type=chunk) [Note 3 - Recent Accounting Pronouncements](index=16&type=section&id=Note%203%20-%20Recent%20Accounting%20Pronouncements) This note outlines recently issued accounting standards updates and their potential impact on the company's financial reporting - ASU 2023-07 (Segment Reporting) is effective for fiscal 2025 10-K and Q1 2026 10-Q, requiring enhanced segment disclosures[41](index=41&type=chunk) - ASU 2023-09 (Income Taxes) is effective for fiscal 2026 10-K, enhancing income tax disclosures[42](index=42&type=chunk) - ASU 2025-05 (Financial Instruments – Credit Losses) is effective for annual periods beginning after December 15, 2025, introducing a practical expedient for credit loss measurement on receivables[43](index=43&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for annual periods beginning after December 15, 2026, requiring additional disclosure of income statement expenses[44](index=44&type=chunk) [Note 4 - Revenue from Contracts with Customers](index=17&type=section&id=Note%204%20-%20Revenue%20from%20Contracts%20with%20Customers) This note details the company's revenue recognition policies, primarily from student tuition and fees, and related contract balances - Revenues primarily consist of student tuition and fees, recognized ratably over the course or program term, after discounts, scholarships, and refunds[45](index=45&type=chunk) - Supplemental revenues come from textbook/supply sales and training/staffing services, recognized as goods/services are transferred[46](index=46&type=chunk) Receivables and Deferred Revenue (in thousands) | Metric | June 30, 2025 | September 30, 2024 | | :-------------------- | :------------ | :----------------- | | Receivables | $87,347 | $72,080 | | Deferred revenue | $67,043 | $92,538 | [Note 5 - Investments](index=17&type=section&id=Note%205%20-%20Investments) This note describes the company's investments in short-term corporate and government bonds, classified as held-to-maturity - In February 2025, the company invested in short-term corporate and government bonds, classified as held-to-maturity, with a minimum credit rating of A[49](index=49&type=chunk) Investment Portfolio (in thousands) | Investment Type | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Market Value | | :----------------------------- | :------------- | :--------------------- | :---------------------- | :-------------------------- | | Corporate and government bonds due in less than 1 year | $47,162 | $2 | $(20) | $47,144 | | Corporate and government bonds due in more than 1 year | $5,566 | $3 | $— | $5,569 | [Note 6 - Fair Value Measurements](index=18&type=section&id=Note%206%20-%20Fair%20Value%20Measurements) This note explains the company's use of a three-tier fair value hierarchy for measuring financial assets and liabilities - The company uses a three-tier fair value hierarchy (Level 1, 2, 3) to rank the quality and reliability of information used for fair value measurements[53](index=53&type=chunk) Fair Value Measurements (in thousands) | Asset/Liability | June 30, 2025 Fair Value | Level 1 | Level 2 | Level 3 | | :----------------------------- | :----------------------- | :------ | :------ | :------ | | Money market funds | $51,964 | $51,964 | $— | $— | | Corporate and government bonds | $52,713 | $52,713 | $— | $— | | Notes receivable | $46,518 | $— | $— | $46,518 | | Revolving credit facility and term loans | $70,001 | $— | $70,001 | $— | [Note 7 - Property and Equipment, net](index=19&type=section&id=Note%207%20-%20Property%20and%20Equipment%2C%20net) This note provides details on the company's property and equipment, including gross amounts, accumulated depreciation, and net book value Property and Equipment, net (in thousands) | Category | June 30, 2025 | September 30, 2024 | | :---------------------- | :------------ | :----------------- | | Property and equipment, gross | $467,236 | $473,001 | | Less: Accumulated depreciation and amortization | $(199,519) | $(208,204) | | Property and equipment, net | $267,717 | $264,797 | - Depreciation expense was **$8.1 million** for the three months and **$23.8 million** for the nine months ended June 30, 2025[55](index=55&type=chunk) [Note 8 - Leases](index=19&type=section&id=Note%208%20-%20Leases) This note details the company's lease arrangements for facilities, including lease expenses and liabilities, and new campus leases - The company has facility leases at **29 of 32 operating campuses** and two non-campus locations, with new leases recorded for future campuses in Fort Myers, Atlanta, and Denver during the nine months ended June 30, 2025[56](index=56&type=chunk)[63](index=63&type=chunk) Lease Expense (in thousands) | Lease Expense | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Operating lease expense | $8,428 | $7,603 | $23,693 | $22,862 | | Total net lease expense | $11,395 | $10,561 | $32,343 | $31,207 | Lease Liabilities (in thousands) | Lease Liabilities | June 30, 2025 | September 30, 2024 | | :------------------------------- | :------------ | :----------------- | | Operating lease liabilities, current portion | $18,733 | $22,210 | | Operating lease liabilities (non-current) | $168,508 | $146,831 | | Total lease liabilities | $191,318 | $173,809 | [Note 9 - Accounts Payable and Accrued Expenses](index=21&type=section&id=Note%209%20-%20Accounts%20Payable%20and%20Accrued%20Expenses) This note provides a breakdown of the company's accounts payable and various accrued expenses at specific reporting dates Accounts Payable and Accrued Expenses (in thousands) | Category | June 30, 2025 | September 30, 2024 | | :---------------------- | :------------ | :----------------- | | Accounts payable | $22,840 | $26,273 | | Accrued compensation and benefits | $45,398 | $35,660 | | Total accounts payable and accrued expenses | $91,278 | $83,866 | [Note 10 - Debt](index=22&type=section&id=Note%2010%20-%20Debt) This note details the company's debt instruments, including revolving credit facilities, term loans, and finance leases, along with covenant compliance Debt (in thousands) | Debt Type | Interest Rate | Maturity Date | June 30, 2025 Carrying Value | September 30, 2024 Carrying Value | | :----------------------- | :------------ | :------------ | :----------------------------- | :-------------------------------- | | Revolving Credit Facility | 6.14% | Nov 2027 | $6,000 | $56,000 | | Avondale Term Loan | 6.37% | May 2028 | $27,726 | $28,390 | | Lisle Term Loan | 6.32% | Apr 2029 | $36,275 | $36,929 | | Finance lease | 6.02% | Jan 2029 | $4,077 | $4,768 | | Total debt, net | | | $73,764 | $125,704 | - The company repaid **$50.0 million** net on the Revolving Credit Facility during the nine months ended June 30, 2025, and further repaid **$6.0 million** in July 2025[68](index=68&type=chunk)[195](index=195&type=chunk) - A **$19.6 million** letter of credit was issued in July 2025 to the ED to lift core growth restrictions on Concorde and MIAT campuses, reducing Revolving Credit Facility availability[69](index=69&type=chunk)[182](index=182&type=chunk) - The company was not in compliance with the Quick Ratio covenant (**0.62** vs. required **0.65**) as of June 30, 2025, but obtained a waiver from Fifth Third Bank[73](index=73&type=chunk)[183](index=183&type=chunk) [Note 11 - Derivative Financial Instruments](index=24&type=section&id=Note%2011%20-%20Derivative%20Financial%20Instruments) This note describes the company's use of interest rate swap agreements to manage interest rate risk, designated as cash flow hedges - The company uses interest rate swap agreements (Avondale Swap and Lisle Swap) to fix interest rates on **50%** of the principal amounts of its term loans, designated as effective cash flow hedges[76](index=76&type=chunk) Interest Rate Swaps (in thousands) | Interest Rate Swaps | June 30, 2025 Fair Value | September 30, 2024 Fair Value | | :--------------------------------- | :----------------------- | :---------------------------- | | Other current assets | $486 | $497 | | Other assets | $615 | $726 | | Total fair value of assets designated as hedging instruments | $1,101 | $1,223 | - An estimated **$0.5 million** from accumulated other comprehensive income related to interest rate swaps will be reclassified to interest expense within the next twelve months[77](index=77&type=chunk) [Note 12 - Income Taxes](index=25&type=section&id=Note%2012%20-%20Income%20Taxes) This note presents the company's income tax expense, effective tax rates, and factors causing deviations from the federal statutory rate Income Tax Expense and Effective Tax Rate | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Income tax expense (in thousands) | $3,689 | $1,772 | $14,453 | $7,699 | | Effective income tax rate | 25.7% | 26.2% | 24.6% | 24.9% | - The effective tax rate differed from the **21%** federal statutory rate primarily due to non-deductible executive compensation, stock-based compensation, R&D tax credits, and state/local taxes[80](index=80&type=chunk) - The company is assessing the impact of the recently enacted One Big Beautiful Bill Act (OBBBA) on its annual results for fiscal 2025[82](index=82&type=chunk) [Note 13 - Restructuring Costs](index=26&type=section&id=Note%2013%20-%20Restructuring%20Costs) This note outlines costs associated with the consolidation of UTI's Houston campuses, including student financing and employee termination expenses - UTI consolidated two Houston campus locations, completing the transition during Q1 fiscal 2025, reducing UTI campuses from **16 to 15**[84](index=84&type=chunk) - Total estimated restructuring costs are **$1.2 million**, with **$0.2 million** incurred through June 30, 2025, primarily for student financing, employee termination, and tools[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - A remaining potential cost of up to **$1.0 million** relates to federal loan discharges[88](index=88&type=chunk) [Note 14 - Commitments and Contingencies](index=26&type=section&id=Note%2014%20-%20Commitments%20and%20Contingencies) This note discloses the company's exposure to various legal proceedings, investigations, and regulatory matters in the ordinary course of business - The company is periodically subject to lawsuits, arbitrations, investigations, and regulatory proceedings in the ordinary course of business[89](index=89&type=chunk) - No material legal proceedings are currently pending, but adverse outcomes could materially affect business, cash flows, results of operations, or financial condition[90](index=90&type=chunk) [Note 15 - Shareholders' Equity](index=26&type=section&id=Note%2015%20-%20Shareholders%27%20Equity) This note details changes in shareholders' equity, including preferred stock conversion and common stock repurchase plan information - As of June 30, 2025, no shares of Series A Convertible Preferred Stock remain outstanding, following a repurchase of **33,300 shares** and conversion of remaining shares into **19,296,843 common shares** on December 18, 2023[92](index=92&type=chunk)[93](index=93&type=chunk) - The company has a **$35.0 million** share repurchase plan authorized in December 2020, but no shares have been repurchased under this plan during the nine months ended June 30, 2025 or 2024[94](index=94&type=chunk) [Note 16 - Earnings per Share](index=27&type=section&id=Note%2016%20-%20Earnings%20per%20Share) This note provides the calculation of basic and diluted earnings per share, reflecting net income and weighted average shares outstanding Earnings per Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income available to common shareholders (in thousands) | $10,663 | $4,985 | $44,262 | $19,209 | | Weighted average basic shares outstanding (in thousands) | 54,412 | 53,805 | 54,260 | 47,956 | | Basic income per share | $0.20 | $0.09 | $0.82 | $0.40 | | Diluted income per common share | $0.19 | $0.09 | $0.80 | $0.39 | - The two-class method for EPS calculation is no longer applicable after the preferred stock conversion on December 18, 2023[95](index=95&type=chunk)[99](index=99&type=chunk) [Note 17 - Segment Information](index=28&type=section&id=Note%2017%20-%20Segment%20Information) This note presents financial data for the company's two reportable segments, UTI and Concorde, detailing revenues and operational income - The company operates in two reportable segments: Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde), with 'Corporate' expenses unallocated[99](index=99&type=chunk) Segment Performance (Three Months Ended June 30, 2025, in thousands) | Metric | UTI | Concorde | Consolidated | | :-------------------- | :--------------- | :-------------------- | :------------------------ | | Revenues | $131,463 | $72,835 | $204,298 | | Income (loss) from operations | $19,870 | $5,929 | $14,152 | | Net income (loss) | $18,583 | $5,890 | $10,663 | Segment Performance (Nine Months Ended June 30, 2025, in thousands) | Metric | UTI | Concorde | Consolidated | | :-------------------- | :--------------- | :-------------------- | :------------------------ | | Revenues | $397,169 | $216,005 | $613,174 | | Income (loss) from operations | $66,762 | $26,006 | $58,483 | | Net income (loss) | $63,090 | $25,892 | $44,262 | [Note 18 - Government Regulation and Financial Aid](index=29&type=section&id=Note%2018%20-%20Government%20Regulation%20and%20Financial%20Aid) This note discusses the regulatory environment, including participation in federal student aid programs and the impact of recent legislative changes - Institutions participate in federal student aid programs (Title IV of HEA) and other federal sources, requiring state authorization, accreditation, and ED certification[103](index=103&type=chunk)[104](index=104&type=chunk) - The recently enacted OBBBA revised Title IV Programs, conditioning eligibility on earnings benchmarks and potentially limiting funding, with an unknown impact at this time[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial performance, condition, and liquidity, covering student metrics, operational results, and strategic execution [Company Overview](index=30&type=section&id=Company%20Overview) This section provides an overview of Universal Technical Institute, Inc. as a leading workforce solutions provider in specialized education - Universal Technical Institute, Inc. is a leading workforce solutions provider in transportation, skilled trades, and healthcare education, utilizing a blended learning model[108](index=108&type=chunk) - All campuses are accredited and eligible for federal student financial assistance under Title IV Programs and other federal sources[112](index=112&type=chunk) [Overview of the Three and Nine Months Ended June 30, 2025](index=31&type=section&id=Overview%20of%20the%20Three%20and%20Nine%20Months%20Ended%20June%2030%2C%202025) This section summarizes key financial and student enrollment trends for the recent three and nine-month periods, highlighting growth drivers Student Metrics | Student Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | % Change | | :------------- | :------------------------------- | :------------------------------- | :------- | :------------------------------ | :------------------------------ | :------- | | Consolidated Total new student starts | 5,721 | 5,567 | 2.8% | 17,684 | 15,393 | 14.9% | | Consolidated Average full-time active students | 23,757 | 21,079 | 12.7% | 24,474 | 21,987 | 11.3% | | Consolidated End of period full-time active students | 22,369 | 20,128 | 11.1% | 22,369 | 20,128 | 11.1% | - Increases in student metrics were driven by new program rollouts and increased student demand across both UTI and Concorde segments[114](index=114&type=chunk) - Consolidated revenues increased by **15.1%** to **$204.3 million** for the three months and **14.3%** to **$613.2 million** for the nine months ended June 30, 2025, primarily due to higher average full-time active students[116](index=116&type=chunk)[117](index=117&type=chunk) - Income from operations significantly increased to **$14.2 million** (3 months) and **$58.5 million** (9 months), driven by increased revenues and ongoing operational efficiency improvements[118](index=118&type=chunk) [Business Strategy](index=32&type=section&id=Business%20Strategy) This section outlines the company's 'North Star strategy' focused on growth, diversification, and operational efficiency through new campuses and programs - The 'North Star strategy' focuses on three core tenets: growing the business by penetrating existing and new markets, diversifying by adding new locations/programs, and optimizing operational efficiency[119](index=119&type=chunk) - Strategic executions include announcing new UTI campuses in Atlanta and San Antonio (opening 2026), a new Concorde co-branded campus in Fort Myers (opening early fiscal 2026), and expanding programs like Tesla's START Collision Repair, HVACR, and Battery Hybrid Electric Vehicle/EV courses[122](index=122&type=chunk) - New partnerships with FirstCall Mechanical and Loftin Equipment Company were established for early employment programs for students[122](index=122&type=chunk) [Regulatory Environment](index=32&type=section&id=Regulatory%20Environment) This section discusses the highly regulated industry, particularly government-sponsored student assistance programs and recent legislative impacts - The company operates in a highly regulated industry, subject to government-sponsored student assistance programs, primarily Title IV of the HEA[121](index=121&type=chunk)[103](index=103&type=chunk) - Recent amendments to the HEA under the OBBBA may impact program eligibility and Title IV funding, with the full effect currently unknown[121](index=121&type=chunk)[105](index=105&type=chunk) [Results of Operations: Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=33&type=section&id=Results%20of%20Operations%3A%20Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This section provides a detailed comparison of revenues, expenses, and profitability for the three-month periods, analyzing key drivers Results of Operations (Three Months Ended June 30, in millions) | Metric | 3M Ended June 30, 2025 | 3M Ended June 30, 2024 | % of Revenues 2025 | % of Revenues 2024 | | :----- | :--------------------- | :--------------------- | :----------------- | :----------------- | | Revenues | $204.3 million | $177.5 million | 100.0% | 100.0% | | Educational services and facilities | $105.6 million | $95.3 million | 51.7% | 53.7% | | Selling, general and administrative | $84.5 million | $74.7 million | 41.4% | 42.1% | | Income from operations | $14.2 million | $7.4 million | 6.9% | 4.2% | | Net income | $10.7 million | $5.0 million | 5.2% | 2.8% | - UTI revenues increased by **12.2%** to **$131.5 million**, and Concorde revenues increased by **20.7%** to **$72.8 million**, both driven by higher average full-time active students[126](index=126&type=chunk)[127](index=127&type=chunk) - Educational services and facilities expenses increased due to higher student volumes and business strategy execution, partially offset by operational cost savings[128](index=128&type=chunk) - Selling, general and administrative expenses increased primarily due to costs associated with business strategies, including higher advertising and marketing, and increased provision for credit losses[135](index=135&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) [Results of Operations: Nine Months Ended June 30, 2025 Compared to Nine Months Ended June 30, 2024](index=36&type=section&id=Results%20of%20Operations%3A%20Nine%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Nine%20Months%20Ended%20June%2030%2C%202024) This section provides a detailed comparison of revenues, expenses, and profitability for the nine-month periods, analyzing key drivers Results of Operations (Nine Months Ended June 30, in millions) | Metric | 9M Ended June 30, 2025 | 9M Ended June 30, 2024 | % of Revenues 2025 | % of Revenues 2024 | | :----- | :--------------------- | :--------------------- | :----------------- | :----------------- | | Revenues | $613.2 million | $536.3 million | 100.0% | 100.0% | | Educational services and facilities | $308.2 million | $285.2 million | 50.3% | 53.2% | | Selling, general and administrative | $246.5 million | $218.3 million | 40.2% | 40.7% | | Income from operations | $58.5 million | $32.9 million | 9.5% | 6.1% | | Net income | $44.3 million | $23.2 million | 7.2% | 4.3% | - UTI revenues increased by **11.6%** to **$397.2 million**, and Concorde revenues increased by **19.7%** to **$216.0 million**, driven by increases in new student starts and average full-time active students[147](index=147&type=chunk)[148](index=148&type=chunk) - Educational services and facilities expenses increased due to higher student volumes and new program launches, partially offset by a **$5.2 million** decrease in student housing expenses for UTI[149](index=149&type=chunk)[152](index=152&type=chunk) - Selling, general and administrative expenses increased due to headcount growth, increased advertising and marketing, and a **$5.2 million** increase in the provision for credit losses for Concorde[156](index=156&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk)[163](index=163&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial measures like EBITDA, providing additional insights into the company's operational performance Non-GAAP Financial Measures (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $10,663 | $4,985 | $44,262 | $23,161 | | EBITDA | $22,616 | $14,842 | $83,058 | $54,784 | - EBITDA is presented as a non-GAAP measure to supplement GAAP results, clarify operations, identify trends, and compare performance consistently[175](index=175&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's ability to meet its financial obligations and fund operations, detailing cash flows, debt, and available capital - The company believes current cash flows, cash on hand (**$70.7 million** as of June 30, 2025), short-term investments, and the Revolving Credit Facility (**$119.0 million** available) will meet liquidity needs[177](index=177&type=chunk)[178](index=178&type=chunk) - Strategic uses of cash may include acquisitions, real estate purchases, student funding alternatives, and common stock repurchases[179](index=179&type=chunk)[180](index=180&type=chunk) - Long-term debt outstanding was **$74.1 million** as of June 30, 2025, including term loans, a finance lease, and the Revolving Credit Facility[181](index=181&type=chunk) - Net cash provided by operating activities was **$40.2 million** for the nine months ended June 30, 2025, a significant increase from **$18.4 million** in the prior year[189](index=189&type=chunk) - Cash used in investing activities was **$78.3 million**, primarily for held-to-maturity investments (**$54.6 million**) and property and equipment (**$25.5 million**)[193](index=193&type=chunk) - Cash used in financing activities was **$56.0 million**, mainly due to net payments on the Revolving Credit Facility (**$50.0 million**)[195](index=195&type=chunk) [Seasonality and Trends](index=44&type=section&id=Seasonality%20and%20Trends) This section discusses the seasonal fluctuations in the company's operating results due to changes in student enrollment patterns - Operating results fluctuate seasonally due to changes in student population, with UTI typically having lower student populations in Q3 (summer) and higher in Q4[197](index=197&type=chunk) - Concorde generally sees higher student populations in January and August-October for core programs, and February for clinical programs[197](index=197&type=chunk) [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section confirms no significant changes to critical accounting policies and estimates from the prior annual report - No significant changes in critical accounting policies and estimates during the nine months ended June 30, 2025, from those disclosed in the 2024 Annual Report on Form 10-K[198](index=198&type=chunk) [Recent Accounting Pronouncements](index=44&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 3 for detailed information on recently issued accounting pronouncements - Information regarding recent accounting pronouncements is detailed in Note 3 of the condensed consolidated financial statements[199](index=199&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes in the company's market risk exposure during the nine months ended June 30, 2025, as compared to the disclosures in the 2024 Annual Report on Form 10-K - No material changes in market risk exposure during the nine months ended June 30, 2025[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting - Disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[201](index=201&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[202](index=202&type=chunk) - Management acknowledges that control systems provide only reasonable, not absolute, assurance and have inherent limitations, including potential for error, fraud, or management override[203](index=203&type=chunk) [Part II. Other Information](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section states that while the company is periodically subject to legal matters, no material proceedings are currently pending - The company is periodically subject to lawsuits, demands in arbitration, investigations, regulatory proceedings, or other claims[204](index=204&type=chunk) - No material legal proceedings are currently a party to, but cannot predict with certainty the ultimate resolution of potential claims[204](index=204&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section notes no material changes to risk factors, except for the potential impact of the One Big Beautiful Bill Act on Title IV Programs - No material changes to risk factors from the 2024 Annual Report on Form 10-K, except for the impact of the One Big Beautiful Bill Act (OBBBA)[205](index=205&type=chunk)[206](index=206&type=chunk) - The OBBBA revised Title IV Programs, potentially conditioning program eligibility on earnings benchmarks and limiting funding, with an unknown impact on student population, revenues, and profit margin[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports no unregistered sales of equity securities or use of proceeds during the period - None to report[207](index=207&type=chunk) [Item 3. Defaults upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities to report during the period - None to report[208](index=208&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company's operations - Not applicable[209](index=209&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section reports no adoption or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements by directors or officers - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[211](index=211&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including certifications and XBRL interactive data files - Includes certifications of CEO and CFO (Sections 302 and 906 of Sarbanes-Oxley Act) and XBRL interactive data files[212](index=212&type=chunk) [Signatures](index=48&type=section&id=SIGNATURES) This section confirms the report's official signing by the Executive Vice President and Chief Financial Officer and the Vice President and Chief Accounting Officer - The report was duly signed on August 7, 2025, by Bruce Schuman, Executive Vice President and Chief Financial Officer, and Christine C.S. Kline, Vice President and Chief Accounting Officer[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)

Core Insights - Universal Technical Institute (UTI) reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.09 per share a year ago [1] - The company achieved an earnings surprise of +58.33% for the quarter, having previously reported earnings of $0.21 per share, which was a +75% surprise compared to expectations [2] - UTI's revenues for the quarter were $204.3 million, surpassing the Zacks Consensus Estimate by 1.82% and increasing from $177.46 million year-over-year [3] Financial Performance - UTI has consistently outperformed consensus EPS estimates over the last four quarters [2] - The company has also topped consensus revenue estimates in the same timeframe [3] - Year-to-date, UTI shares have increased by approximately 24.3%, compared to a 7.1% gain in the S&P 500 [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.34 for the upcoming quarter and $1.06 for the current fiscal year [8] - The Zacks Rank for UTI is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] - The Schools industry, to which UTI belongs, is ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook [9] Industry Context - Adtalem Global Education, another company in the same industry, is expected to report quarterly earnings of $1.51 per share, reflecting a year-over-year increase of +10.2% [10] - Adtalem's anticipated revenues are projected to be $439.64 million, up 7.3% from the previous year [11]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased 15% year over year to $204.3 million [11][23] - Net income rose approximately 114% year over year to $10.7 million, with diluted earnings per share of $0.19 [11][23] - Adjusted EBITDA grew over 37% year over year to $25.3 million [11][23] - Average full-time active students increased nearly 13% year over year to 23,757 students [11][21] Business Line Data and Key Metrics Changes - Concord Career Colleges division saw an 18.8% increase in average full-time active students compared to Q3 2024, with new student starts growing 9.1% year over year [21] - UTI division experienced an 8.9% year over year increase in average full-time active students, but new student starts declined slightly by 3% year over year [21][22] Market Data and Key Metrics Changes - The demand for skilled trades education continues to grow, with significant media coverage highlighting the value of skilled trades over traditional college degrees [12][10] - The regulatory environment is increasingly supportive of skilled trades, with new legislation potentially making short course programs Pell eligible [9][28] Company Strategy and Development Direction - The company is focused on scaling new programs, optimizing student outcomes, and investing in long-term growth strategies [10][19] - Plans to expand campus footprints and add new in-demand offerings are underway, with a particular emphasis on the Concord division's growth following the lifting of growth restrictions [28][27] - The North Star strategy aims for over $1 billion in yearly revenue and approaching $200 million in adjusted EBITDA by fiscal 2029 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable operating environment and the company's ability to meet or exceed expectations in the coming quarters [10][19] - The company anticipates a strong fourth quarter, with new student starts expected to increase significantly [47][48] Other Important Information - The company is raising the low end of its fiscal 2025 guidance for both revenue and new student starts, now expecting consolidated revenue between $830 million and $835 million [20][25] - Total available liquidity at the end of Q3 was $236.9 million, including $47.2 million of short-term investments [24] Q&A Session Summary Question: What could Concord look like in three to five years? - Management indicated that the lifting of growth restrictions allows for accelerated program launches and potentially more campuses, with guidance updates expected in November [35][37] Question: How will EBITDA margins be affected in 2026 and 2027? - Management noted that while EBITDA margin expansion may be muted due to investments, gross dollars should not decline [38][39] Question: What is the readiness around faculty hiring for Concord? - The company has been proactive in site selection and program portfolio development, ensuring readiness for rapid expansion [45] Question: How is student interest in the fourth quarter? - Management confirmed that a significant portion of new starts comes from high school students, primarily in auto diesel, with expectations for strong performance in Q4 [53][54] Question: What is the exposure to short-term training programs benefiting from Pell changes? - Currently, the exposure is very small, but the new Pell eligibility opens opportunities for shorter, bespoke programs [56][58] Question: What is the capacity situation at Concord? - Management stated that they are approaching capacity limits in several programs and are working to lift these caps for future growth [59][60]

Financial Performance and Guidance - FY2025 revenue guidance is \$830 million to \$835 million[7] - FY2025 net income guidance is \$56 million to \$60 million[7] - FY2025 adjusted EBITDA guidance is \$124 million to \$128 million[7] - The "North Star Strategy Phase II" aims to achieve over \$1 billion in yearly revenue and approach \$200 million in adjusted EBITDA by fiscal year 2029[7] Expansion and Growth Strategy - The company plans to launch a minimum of six programs annually at existing campuses beginning in fiscal year 2025[47] - The company plans to open at least two new campuses each year between fiscal years 2026 and 2029[47] - The company is executing a multifaceted approach to expansion, including program expansions, new campuses, and optimized models[25, 26] Division Performance (FY2024) - UTI Division revenue was \$486 million with approximately 14,000 average students[12] - UTI Division adjusted EBITDA was \$104 million, representing a 21.4% margin[53] - Concorde Division revenue was \$246 million with approximately 8,000 average students[12] - Concorde Division adjusted EBITDA was \$28 million, representing an 11.5% margin[62]

Core Insights - Investors are comparing Adtalem Global Education (ATGE) and Universal Technical Institute (UTI) to determine which stock is more attractive for value investing [1] Valuation Metrics - ATGE has a Zacks Rank of 2 (Buy), indicating stronger earnings estimate revision trends compared to UTI, which has a Zacks Rank of 3 (Hold) [3] - ATGE's forward P/E ratio is 15.30, significantly lower than UTI's forward P/E of 30.47, suggesting ATGE may be undervalued [5] - ATGE's PEG ratio is 1.02, while UTI's PEG ratio is 2.03, indicating ATGE has a more favorable growth outlook relative to its valuation [5] - ATGE's P/B ratio is 2.97, compared to UTI's P/B of 5.96, further supporting ATGE's valuation attractiveness [6] - ATGE has a Value grade of B, while UTI has a Value grade of C, reinforcing the perception that ATGE is the better option for value investors [6]

In states like Colorado, demand for skilled healthcare professionals like dental hygienists, practical nurses and radiologic technologists is significantly higher than the national average, with a projected job growth of 13%, 13% and 17% respectively, between 2022-2032.1 Construction on the 60,000 square foot space is currently underway on the new site at 4300 Kittredge in Denver, near the I-70 and Peña Blvd interchange. More details about the Denver campus, including a grand opening event, will be announce ...

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a second-quarter 2025 adjusted net loss of $0.06 per share, which was wider than the Zacks Consensus Estimate of a $0.04 loss, and a decline from a profit of $0.05 in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%, but decreased by 9.6% year over year due to weaker contributions from various segments [2][9] Financial Performance - **Drilling Services**: Revenues totaled $403.8 million, down 8.3% from $440.3 million in the prior year, but exceeded the estimate of $365.1 million. Operating income was $40.6 million, down from $76.1 million year over year, yet above the estimate of $24.1 million [4] - **Completion Services**: Revenues were $719.3 million, a drop of 10.7% from $805.4 million year over year, and missed the estimate of $762.4 million. The operating loss was $29.2 million compared to a profit of $10.7 million in the previous year, but was narrower than the estimated loss of $43.4 million [5] - **Drilling Products**: Revenues increased by 2.7% to $88.4 million from $86.1 million year over year, beating the estimate of $85.8 million. Operating profit was $6.8 million, down 21.1% from the previous year, and missed the estimate of $20.6 million [6] - **Other Services**: Revenues fell 52.7% to $7.8 million from $16.5 million year over year, but exceeded the estimate of $5.6 million. The operating loss was $2 million compared to a profit of $0.4 million in the prior year, missing the estimated operating income of $0.1 million [7] Capital Expenditure & Financial Position - PTEN spent $144.2 million on capital programs in the reported quarter, up from $130.5 million in the prior year [8] - As of June 30, 2025, the company had cash and cash equivalents of $185.9 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26.7% [8] Shareholder Returns - The board declared a quarterly dividend of $0.08 per share, unchanged from the previous quarter, to be paid on September 15, 2025 [3][9] - The company returned $56 million to shareholders in Q2 2025, including $20 million in share repurchases [10] Q3 Outlook - PTEN anticipates an average rig count of approximately 90 for its Drilling Services segment in Q3 2025, with expected adjusted gross profit of around $130 million [11] - The company expects adjusted gross profit for Completion Services to remain steady, while Drilling Products is anticipated to improve slightly [12] - Total depreciation, depletion, amortization, and impairment expense is expected to be approximately $230 million for Q3 [13] - Net capital expenditures for full-year 2025 are anticipated to be less than $600 million, with a reduction in maintenance capital expenditures due to lower activity [14]