Universal Technical Institute(US:UTI)2024-08-07 20:48Financial Performance - Revenues for the three months ended June 30, 2024, increased to $177,458 thousand, up 15.7% from $153,286 thousand for the same period in 2023[13]. - Net income for the three months ended June 30, 2024, was $4,985 thousand, compared to a net loss of $509 thousand for the same period in 2023[13]. - Income from operations for the three months ended June 30, 2024, was $7,446 thousand, significantly higher than $663 thousand for the same period in 2023[13]. - Earnings per share for the three months ended June 30, 2024, were $0.09, compared to a loss of $0.05 per share for the same period in 2023[13]. - Comprehensive income for the three months ended June 30, 2024, was $4,979 thousand, compared to $4 thousand for the same period in 2023[15]. - Net income for the nine months ended June 30, 2024, was $23,161,000, compared to $5,619,000 for the same period in 2023, representing a significant increase[19]. - Revenues for the nine months ended June 30, 2024, were $536.3 million, an increase of $99.2 million, or 22.7%, compared to $437.1 million for the same period in 2023[159]. - EBITDA for the nine months ended June 30, 2024, was $54.8 million, compared to $30.2 million for the same period in 2023, representing an increase of 81.6%[185]. Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $170,012 thousand, an increase of 11.3% from $152,623 thousand in the prior year[13]. - Total operating expenses for the nine months ended June 30, 2024, were $503,460 thousand, up from $426,050 thousand in the same period of 2023[13]. - Selling, general and administrative expenses for the three months ended June 30, 2024, were $74.7 million, an increase from $64.2 million for the same period in 2023, primarily due to business strategy costs[141]. - Total educational services and facilities expense for the nine months ended June 30, 2024, was $285.2 million, an increase from $236.7 million for the same period in 2023, representing a 20.5% increase[165]. - Compensation and related costs increased by $3.1 million for the three months ended June 30, 2024, primarily due to additional headcount to support program expansions and overall student growth[138]. Cash Flow and Debt - Net cash provided by operating activities was $18,361,000 for the nine months ended June 30, 2024, compared to a cash outflow of $4,733,000 in the same period last year[19]. - Cash paid for acquisition was $0 in the current period, while it was $16,381,000 in the prior year[19]. - The company made payments of $59,000,000 on the revolving credit facility during the nine months ended June 30, 2024, with remaining availability of $33,000,000 as of that date[76]. - The company had $137.7 million in long-term debt outstanding as of June 30, 2024, which includes two term loans and a revolving credit facility[192]. - Cash used in financing activities for the nine months ended June 30, 2024, was $39.7 million, mainly related to net payments on the revolving credit facility and repurchase of Series A Preferred Stock[200]. Student Enrollment and Programs - Total new student starts for the consolidated entity were 5,567 for the three months ended June 30, 2024, representing a 5.0% increase compared to 5,300 in the prior year[120]. - The average undergraduate full-time active students increased by 13.4% to 21,079 for the three months ended June 30, 2024, compared to 18,594 in the same period last year[130]. - The company launched 14 new programs across nine campuses during the fourth quarter of fiscal 2023 and into fiscal 2024, contributing to increased student demand[122]. - Concorde rolled out seven new programs at three campuses and introduced new cash pay "short courses," which also contributed to the increase in student starts[122]. Acquisition and Integration - The acquisition of Concorde was completed on December 1, 2022, for a total cash consideration of $48.1 million after adjustments[35]. - The total assets acquired from Concorde were valued at $163.8 million, while total liabilities assumed were $115.7 million, resulting in net assets acquired of $48.1 million[38]. - Goodwill recognized from the acquisition was $11.6 million, reflecting the strategic fit into the company's growth and diversification strategy[40]. - An internal reorganization was executed to support a multi-divisional business model following the integration of Concorde[30]. - The acquisition expands the company's portfolio into the higher-growth healthcare education sector, enhancing workforce educational solutions[24]. Tax and Compliance - The company reported an income tax expense of $1,772 thousand for the three months ended June 30, 2024, compared to a tax benefit of $64 thousand for the same period in 2023[13]. - The effective income tax rate for the nine months ended June 30, 2024, was 24.9%, compared to 36.5% for the same period in 2023[90]. - As of June 30, 2024, the company was in compliance with all Credit Facility and term loan debt covenants[81]. Assets and Liabilities - Total assets as of June 30, 2024, were $706,041,000, compared to $740,685,000 as of September 30, 2023[109]. - Cash and cash equivalents at the end of the period were $115,505,000, compared to $110,511,000 at the end of the previous year[19]. - The company’s total liabilities at fair value on a recurring basis were $132.7 million as of June 30, 2024[53]. - Accounts payable and accrued expenses totaled $79,846,000 as of June 30, 2024, compared to $69,941,000 as of September 30, 2023, marking an increase of 14.2%[72].