Universal (US:UVV) ZACKSยท2025-02-06 16:16Core Insights - Universal Technical Institute, Inc. (UTI) reported strong first-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, showing year-over-year growth in both metrics [1][2] Financial Performance - Adjusted earnings per share (EPS) reached 40 cents, surpassing the consensus estimate of 18 cents by 122.2% and increasing from 17 cents in the prior year [4] - Quarterly revenues amounted to $201.4 million, exceeding the consensus estimate of $194.1 million by 3.8% and reflecting a 15.3% increase from the previous year's figure [4] - Adjusted EBITDA was $35.5 million, up 44.8% from $24.5 million reported a year ago, with adjusted EBITDA margins of 17.5%, an increase of 350 basis points [5] Student Enrollment and Growth - New student starts totaled 5,313, a 22.3% increase from 4,346 students reported a year ago, while average full-time active students rose 11.1% year over year to 25,062 students [5] - UTI's segment revenues increased by 14% to $131.5 million, driven by growth in average full-time active students, with new student starts in this segment totaling 2,753, up 19% from the prior year [6] - Concorde's revenues reached $70 million, up 17.9% year over year, with new student starts totaling 2,560, a 26% increase [7] Financial Guidance - UTI raised its guidance for fiscal 2025, now expecting new student starts in the range of 28,500-29,500, up from the previous estimate of 28,000-29,000 [10] - Projected revenues are now anticipated to be between $810-$820 million, an increase from the prior estimate of $800-$815 million, indicating growth from $732.7 million in the previous year [10] - Estimated net income is now in the range of $54-$58 million, up from the prior estimate of $52-$56 million, with adjusted EBITDA expected to be between $122-$126 million [11] Cash Flow and Financial Health - At the end of the first quarter of fiscal 2025, UTI had cash and cash equivalents of $172 million, an increase from $161.9 million at the end of fiscal 2024 [8] - Long-term debt decreased to $117.3 million from $123 million at the end of fiscal 2024 [8] - Cash provided by operating activities totaled $23 million compared to $10.8 million in the year-ago period, with adjusted free cash flow of $18.9 million, up from $10.2 million a year ago [9]