Universal Technical Institute(US:UTI)2024-02-08 13:58Part I. Financial Information Financial Statements For Q1 FY2024, revenues grew 45.6% to $174.7 million, net income rose to $10.4 million, driven by the Concorde acquisition, with strong operating cash flow of $10.8 million Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Revenues | $174,695 thousand | $120,004 thousand | | Income from operations | $14,231 thousand | $4,448 thousand | | Net income | $10,389 thousand | $2,648 thousand | | Net income per share - diluted | $0.17 | $0.02 | Condensed Consolidated Balance Sheets (Unaudited) | Metric | December 31, 2023 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $143,590 thousand | $151,547 thousand | | Total current assets | $197,442 thousand | $204,985 thousand | | Total assets | $732,413 thousand | $740,685 thousand | | Total current liabilities | $181,935 thousand | $184,700 thousand | | Long-term debt | $158,962 thousand | $159,600 thousand | | Total liabilities | $510,228 thousand | $514,718 thousand | | Total shareholders' equity | $222,185 thousand | $225,967 thousand | Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,836 thousand | $2,812 thousand | | Net cash (used in) provided by investing activities | ($3,848) thousand | $5,245 thousand | | Net cash (used in) provided by financing activities | ($15,089) thousand | $88,718 thousand | | Change in cash, cash equivalents and restricted cash | ($8,101) thousand | $96,775 thousand | Notes to Condensed Consolidated Financial Statements The notes detail two segments, UTI and Concorde, highlight the elimination of Series A Preferred Stock, and show total net debt of $161.5 million - The company operates through two reportable segments: Universal Technical Institute (UTI) for transportation and skilled trades, and Concorde Career Colleges (Concorde) for healthcare education3031 - On December 18, 2023, the company repurchased 33,300 shares of Series A Preferred Stock for $11.3 million and converted all remaining shares, eliminating future preferred dividend obligations103104 Segment Performance (Three Months Ended Dec 31, 2023) | Segment | Revenues | Income from Operations | | :--- | :--- | :--- | | UTI | $115,373 thousand | $15,090 thousand | | Concorde | $59,322 thousand | $7,128 thousand | | Corporate | $0 | ($7,987) thousand | | Consolidated | $174,695 thousand | $14,231 thousand | Debt Summary (As of Dec 31, 2023) | Debt Component | Carrying Value | | :--- | :--- | | Revolving Credit Facility | $90,000 thousand | | Avondale Term Loan | $29,039 thousand | | Lisle Term Loan | $37,536 thousand | | Finance lease | $5,400 thousand | | Total Debt, Net | $161,522 thousand | Management's Discussion and Analysis of Financial Condition and Results of Operations Q1 FY2024 revenue increased 45.6% to $174.7 million, driven by Concorde and UTI growth, with consolidated new student starts up 89.4% and strong liquidity Student Metrics (Three Months Ended Dec 31) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Consolidated New Student Starts | 4,346 | 2,295 | 89.4% | | UTI New Student Starts | 2,314 | 1,974 | 17.2% | | Consolidated Avg. Active Students | 22,565 | 21,248 | 6.2% | - Revenue for Q1 2024 was $174.7 million, a 45.6% increase from the prior year, primarily due to the full-quarter contribution of Concorde ($59.3 million) and a 9.2% increase in UTI revenues128135 - The company's business strategy focuses on growth, diversification, and optimization, including new program launches and campus expansions130131134 EBITDA Reconciliation (Non-GAAP) | Metric (in thousands) | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net income | $10,389 | $2,648 | | Interest income | ($1,975) | ($823) | | Interest expense | $2,871 | $1,423 | | Income tax expense | $3,160 | $1,525 | | Depreciation and amortization | $6,984 | $5,248 | | EBITDA | $21,429 | $10,021 | Quantitative and Qualitative Disclosures About Market Risk No material changes in market risk exposure were reported for Q1 FY2024 compared to the prior fiscal year's annual report - No material changes in the company's market risk exposure occurred during the three months ended December 31, 2023175 Controls and Procedures Management concluded disclosure controls were effective as of December 31, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023176 - No changes occurred during the quarter that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting177 Part II. Other Information Legal Proceedings The company is not currently a party to any material legal proceedings, though it faces routine lawsuits and regulatory matters - The company is not currently a party to any material legal proceedings, though it is periodically subject to lawsuits and regulatory matters in the ordinary course of business100180 Risk Factors No material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K were reported for the quarter - The report refers investors to the risk factors discussed in the 2023 Annual Report on Form 10-K, indicating no material changes during the quarter181 Unregistered Sales of Equity Securities and Use of Proceeds In December 2023, the company repurchased 33,300 Series A Preferred Stock shares for $11.3 million, leading to the conversion of all remaining preferred stock into common stock - In December 2023, the company repurchased 33,300 shares of Series A Preferred Stock for an aggregate price of $11.3 million in a privately negotiated transaction182185 - Following the repurchase, all remaining outstanding shares of Series A Preferred Stock were converted into common stock185 Defaults upon Senior Securities The company reported no defaults upon its senior securities during the period - None187 Other Information No director or officer adopted or terminated a Rule 10b5-1 or non-rule 10b5-1 trading arrangement during the quarter - During the quarter, no director or officer adopted or terminated a Rule 10b5-1 or non-rule 10b5-1 trading arrangement190 Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files