Financial Data and Key Metrics Changes - Revenue grew nearly 16% year-over-year to $177.5 million, exceeding expectations [6][22] - Net income increased to $5 million, with diluted earnings per share of $0.09 [23] - Adjusted EBITDA rose 61% to $18.4 million, reflecting strong operational performance [7][23] - Total average undergraduate full-time active students increased by 13% year-over-year [20][21] Business Line Data and Key Metrics Changes - Concorde division saw a 14% increase in average undergraduate full-time active students and a 34.8% increase in new student starts [20][21] - Clinical starts in the Concorde division grew 64% year-over-year, while core and short programs grew 20.6% [21] - UTI division experienced a 13% increase in average undergraduate full-time active students, but a 12.5% decrease in new student starts due to timing shifts [21][22] Market Data and Key Metrics Changes - Demand for skilled labor in transportation, skilled trades, and healthcare remains robust, with anticipated job growth over the next decade [6][8] - The company expects to achieve double-digit start growth for UTI in the fourth quarter and approximately 10% growth for the fiscal year [7][21] Company Strategy and Development Direction - The company is entering Phase 2 of its North Star Strategy, focusing on addressing the need for skilled workers in America [17][19] - Plans to launch a minimum of six new programs annually and open at least two new campuses each year starting in fiscal 2026 [18][19] - The company aims for a compound annual revenue growth rate of approximately 10% between fiscal 2024 and fiscal 2029 [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted a weaker economy with fewer jobs being added, but demand for skilled labor remains strong [5][6] - The company is optimistic about its growth trajectory, expecting to hit the upper end of revenue guidance for fiscal 2024 [19][27] - Management emphasized the importance of strategic partnerships and program expansions to enhance growth [10][16] Other Important Information - The company anticipates significant year-over-year growth in profitability metrics for the fourth quarter [24] - Total available liquidity was $148.5 million, including $33 million from the revolving credit facility [25] - The company plans to pay down an additional $10 million to $15 million on the revolver by the end of the fourth quarter [25] Q&A Session Questions and Answers Question: Can you provide insights on the North Star Strategy and the 20% target for '29? - Management indicated that segment-level details are not yet available, but growth initiatives will initially focus on UTI due to current restrictions on Concorde [34] Question: How are you thinking about capacity as part of the North Star plan? - Management stated that capacity is not finite and they are continuously refining educational delivery and space utilization to increase capacity [35][36] Question: What has been the experience with FAFSA issues and their impact on enrollment? - Management acknowledged ongoing challenges with FAFSA but noted that it did not significantly affect overall enrollment for the year [37][38] Question: Can you provide an update on marketing channels? - Management reported strong results in both divisions, with effective lead generation strategies contributing to growth [40][41] Question: What is the timeline for new campuses and program expansions? - Management is not ready to announce specific details but anticipates being able to share information soon [42][43] Question: Can you clarify the growth restrictions on Concorde? - Management explained that growth restrictions will be lifted in mid to late 2026, allowing for new campuses and program expansions [46][47] Question: How does the Heartland partnership affect economics? - Management clarified that they will retain the economics of the campus while Heartland provides financial assistance to students [48][49] Question: Is M&A part of the growth plan? - Management emphasized that M&A is not included in the current organic growth plan but remains open to strategic opportunities [65][66]

Financial Performance - Revenue for Q3 FY2024 was $177.5 million, reflecting a 15.8% increase compared to the prior year period[1] - Net income reached $5.0 million, and adjusted EBITDA was $18.4 million, both showing significant increases from the previous year[1] - Revenues for the three months ended June 30, 2024, were $177,458,000, representing an increase of 15.7% compared to $153,286,000 in the same period of 2023[19] - Net income for the three months ended June 30, 2024, was $4,985,000, compared to a net loss of $509,000 in the same period of 2023[19] - Consolidated revenue for the nine months ended June 30, 2024, was $536,329,000, compared to $437,110,000 for the same period in 2023, reflecting a growth of 22.8%[28] - Net income for the nine months ended June 30, 2024, was $23,161,000, a significant increase from $5,619,000 in the same period of 2023[23] Student Enrollment and Growth - Average undergraduate full-time active students grew by 13.4% year-over-year, with total new student starts increasing by 5.0%[1] - Total new student starts for UTI in the three months ended June 30, 2024, were 2,916, representing a year-over-year decline of 12.5%[24] - Average undergraduate full-time active students for UTI increased by 13.0% year-over-year to 13,041 in the three months ended June 30, 2024[24] - The end of period undergraduate full-time active students for UTI was 12,686, a year-over-year increase of 6.5%[25] Financial Guidance and Projections - The company reiterated its full-year guidance, expecting revenue and new student starts to trend towards the higher end of previously communicated ranges[1] - For FY2025, the company projects revenue of nearly $800 million and an adjusted EBITDA margin expansion of at least 100 basis points compared to FY2024[1] - The company aims for a compound annual revenue growth rate of approximately 10% and an adjusted EBITDA margin approaching 20% by the end of FY2029[2] - The company expects to meet its fiscal year 2024 guidance for new student start growth and revenue growth, projecting low-to-mid single-digit growth[14] Operating Expenses and Cash Flow - Operating expenses for Q3 FY2024 increased by 11.4% to $170.0 million, primarily due to new program launches[3] - Total operating expenses for the three months ended June 30, 2024, were $170,012,000, an increase from $152,623,000 in the same period of 2023[19] - Cash provided by operating activities for the nine months ended June 30, 2024, was $18,361,000, compared to a cash used of $(4,733,000) in the same period of 2023[23] - The company reported a net cash provided by operating activities of $18,361,000 for the nine months ended June 30, 2024, compared to $(4,733,000) for the same period in 2023, indicating a positive shift in cash flow[42] Strategic Initiatives and Expansion - The company plans to add a minimum of six new programs and open at least two new campuses each year starting in FY2025[2] - The company plans to continue expanding its value proposition and launching new programs in the upcoming year[14] - The company operates 16 campuses under Universal Technical Institute and 17 campuses under Concorde Career Colleges, focusing on in-demand career education[17] Market and Product Development - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[43] - New product launches contributed to a 20% increase in sales in the last quarter, with particular success in the smart home segment[43] - Market expansion efforts in Europe resulted in a 25% increase in market share, now accounting for 30% of total sales[43] - The company completed a strategic acquisition of a smaller tech firm for $150 million, expected to enhance its product offerings and market reach[43] - The company plans to enter the Asian market in 2024, targeting a revenue contribution of $1 billion within the first year[43] Cost Management and Profitability - Operating margin improved to 22%, up from 20% in the previous quarter, due to cost management strategies[43] - Customer retention rate increased to 85%, up from 80% last year, indicating stronger user engagement[43]

Core Insights - Concorde Career Colleges and Heartland Dental have formed a partnership to establish a co-branded campus in Fort Myers, Florida, aimed at training dental hygienists and dental assistants to meet workforce demands [1][2][4] - The new campus is expected to train up to 120 dental hygienists and 72 dental assistants annually, utilizing Concorde's curriculum and support services [2][4] - Heartland Dental will cover the construction costs and provide scholarships to students, reflecting its commitment to education and workforce development in the dental field [2][3] Company Overview - Heartland Dental is the largest dental support organization in the U.S., with over 23,000 employees and more than 1,750 supported dental offices [1][8] - Concorde Career Colleges operates 17 campuses across eight states, focusing on healthcare education, including dental programs [7] - The partnership aims to address the projected job growth of 7% for dental hygienists and dental assistants from 2022 to 2032, with even higher growth rates in Florida [4][6] Educational Programs - Concorde's dental hygiene program combines online and in-person instruction, allowing students to enter the workforce in as few as 17 months [4][6] - The dental assistant diploma program prepares students for employment in as few as eight months, integrating foundational dental care concepts with practical externships [4][6] - Concorde currently has over 1,900 students enrolled in its dental programs across multiple campuses [4]

Core Viewpoint - Universal Technical Institute (UTI) is expected to report a significant year-over-year increase in earnings, driven by higher revenues, with a consensus EPS estimate of $0.07 per share, reflecting a 240% increase from the previous year [11]. Earnings Expectations - Revenues for the upcoming quarter are projected to be $172.33 million, representing a 12.4% increase compared to the same quarter last year [2]. - The consensus EPS estimate has been revised 0.76% lower over the last 30 days, indicating a reassessment by analysts [2]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP of +3.70% for UTI indicates a higher likelihood of an earnings beat [5]. - A positive Earnings ESP combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) has historically resulted in a positive surprise nearly 70% of the time [4]. Historical Performance - Over the last four quarters, UTI has beaten consensus EPS estimates two times [7]. - In the last reported quarter, UTI was expected to post earnings of $0.15 per share but actually reported $0.14, resulting in a surprise of -6.67% [16]. Market Sentiment - Analysts have recently become more optimistic about UTI's earnings prospects, as indicated by the Most Accurate Estimate being higher than the Zacks Consensus Estimate [5]. - The market's reaction to UTI's earnings report will depend on how actual results compare to these estimates, alongside management's discussion of business conditions during the earnings call [9][10].

PHOENIX, July 17, 2024 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI) (the "Company"), a leading workforce solutions education provider, will hold a conference call on Tuesday, August 6, 2024, at 4:30 p.m. Eastern time to discuss its financial and operational results for the fiscal third quarter ended June 30, 2024. About Universal Technical Institute, Inc. Universal Technical Institute, Inc. (NYSE: UTI) (the "Company") was founded in 1965 and is a leading workforce solutions provider of tr ...

Group 1: Partnership Overview - Universal Technical Institute (UTI) has partnered with Crown Equipment to offer paid work experience opportunities for automotive and diesel technology students through the Early Employment Program [1][2] - Students enrolled in the 51-week automotive technology and 45-week diesel technology programs can apply for 20 to 30 paid hours weekly while completing their studies [2] - Graduates offered full-time employment by Crown may qualify for tuition reimbursement up to $20,000 [2] Group 2: Company Profiles - Universal Technical Institute, founded in 1965, is a leading provider of workforce solutions in transportation, skilled trades, and healthcare education, operating 16 campuses across 9 states [4] - Crown Equipment, established in 1945, is one of the world's largest material handling companies, employing over 18,100 people globally and operating more than 500 retail locations in over 80 countries [5] Group 3: Program Benefits - The Early Employment Program aims to bridge the gap between skilled trade education and industry workforce needs, facilitating a smooth transition from classroom to workforce for students and graduates [2][3] - Crown Equipment emphasizes that UTI's training programs provide a solid foundation for service technicians, enhancing Crown's ability to access a skilled pool of professionals [3]

Core Insights - Universal Technical Institute (UTI) is consolidating its branding for several campuses to enhance brand awareness and better serve students [4][7] - The rebranding will include campuses previously known as MIAT-Canton, Motorcycle Mechanics Institute, Marine Mechanics Institute, and NASCAR Technical Institute, which will now be known as UTI-Canton, UTI-Phoenix, and UTI-Mooresville [5][4] - UTI currently serves approximately 15,000 students across 16 campuses nationwide [4] Company Overview - Universal Technical Institute, Inc. was founded in 1965 and is a leading provider of workforce solutions in transportation, skilled trades, and healthcare education [2] - The company operates two divisions: UTI and Concorde Career Colleges, with UTI offering a variety of technical training programs across 16 campuses in nine states [2] - Concorde Career Colleges operates 17 campuses in eight states and online, focusing on allied health, dental, nursing, patient care, and diagnostic fields [2] Rebranding Strategy - The rebranding initiative is part of a broader strategy to evolve UTI from an automotive/diesel school to a provider of diverse education programs in transportation, skilled trades, and energy [7] - The implementation of the rebranding will commence in October and is expected to continue through mid-2025 [7] - Previous consolidation efforts, such as merging MIAT-Houston and UTI-Houston into one branded campus, have been positively received by stakeholders [6]

Group 1 - UTI is ranked 2 (Buy) on the Zacks Rank with a VGM Score of B, indicating strong investment potential [1] - The company has a forward P/E ratio of 20.31, making it attractive for value investors [1] - Earnings estimates for fiscal 2024 have been revised higher by two analysts, with the Zacks Consensus Estimate increasing by $0.01 to $0.71 per share [1] - UTI has an average earnings surprise of 49.4%, suggesting strong performance relative to expectations [1] Group 2 - UTI's solid Zacks Rank and top-tier Value and VGM Style Scores make it a noteworthy option for investors [2] - The company specializes in post-secondary education, offering degree, diploma, and certificate programs in various fields including automotive and marine [16]

Core Insights - Universal Technical Institute, Inc. is actively engaging in investor marketing events to highlight its growth and diversification strategies, aiming to showcase its financial performance and business outlook [4] Group 1: Upcoming Investor Events - The company will participate in the 14th Annual East Coast IDEAS Conference on June 13, 2024, with presentations by CFO Troy Anderson and VP of Corporate Finance Matt Kempton [1] - A Roth Capital Partners Non-Deal Roadshow is scheduled for June 12, 2024, featuring one-on-one and group meetings with the same company representatives [5] - The Northland Capital Markets Growth Conference will take place virtually on June 25, 2024, with attendees including CEO Jerome Grant, CFO Troy Anderson, and VP of Corporate Finance Matt Kempton [5] Group 2: Company Performance and Strategy - The company reported strong second-quarter results and received positive feedback from investor marketing events held in May, indicating a resonating story with the investment community [1] - The management team aims to discuss the company's favorable positioning to capitalize on growth opportunities and drive sustainable long-term value for shareholders during the upcoming events [4] Group 3: Company Overview - Universal Technical Institute, Inc. was founded in 1965 and is a leading provider of workforce solutions in transportation, skilled trades, energy, and healthcare education [6] - The company operates two divisions: Universal Technical Institute (UTI) with 16 campuses in 9 states, and Concorde Career Colleges with 17 campuses in 8 states and online [6]

Core Insights - Universal Technical Institute, Inc. (UTI) has reintroduced the Summer Ignite program in partnership with NAPA to enhance student focus on automotive and motorcycle repair careers [1][2] - The program aims to address the workforce gap by providing a free three-week introductory course, with successful students earning credits towards future programs at UTI [3] - UTI's growth strategy includes consistent graduation and employment rates, along with strong partnerships with industry leaders [5][6] Program Details - The Summer Ignite program will run for three weeks and is designed to meet the projected annual job openings of approximately 67,700 for automotive service technicians and mechanics through 2032 [2] - Applications for the program are open in several states, including Texas, Arizona, New Jersey, Illinois, and California [4] Expansion Initiatives - Under its Concorde division, UTI launched two new dental hygiene programs in April 2024, with about 50 students in the first cohorts [7] - The Concorde division is also expanding its San Diego dental hygiene program, set to launch later in 2024, and has partnered with Marquis Companies to enhance its offerings [7] Stock Performance - UTI's shares have surged 135.4% over the past year, significantly outperforming the Zacks Schools industry's growth of 44.9% [8]