Financial Data and Key Metrics Changes - Revenue for the first quarter grew 10% to $221 million compared to the previous year [4][5] - Baseline adjusted EBITDA was nearly $35 million, including over $7 million in growth investments, while reported adjusted EBITDA was $27 million [5][6] - Consolidated net income for the first quarter was $12.8 million, or $0.23 per diluted share [21] - Total average full-time active students grew 7.2% year-over-year to 26,858, with total new student starts increasing 2.6% to 5,449 [18][21] Business Line Data and Key Metrics Changes - The Concorde division generated a 9.5% increase in average full-time active students, driven by demand in nursing and allied health [18][21] - The UTI division grew average full-time active students by 5.7% year-over-year, reflecting strength across its program suite and employer demand [18][21] - Revenue from the Concorde division was $78 million, an increase of 11.5%, while the UTI division contributed $142.8 million, an increase of 8.6% [21] Market Data and Key Metrics Changes - Average full-time active students increased by 7%, with new student starts growing roughly 3% year-over-year, aligning with market expectations [6] - The company anticipates total new student starts to be between 31,500 and 33,000 for the fiscal year [24] Company Strategy and Development Direction - The company is executing its North Star strategic plan, focusing on disciplined growth through new campus launches and program expansions [4][8] - Plans to open a minimum of 2 and up to 5 new campuses annually, with the first fiscal 2026 campus already opened in Fort Myers, Florida [9][11] - The company aims to launch between 12 and 20 new programs annually across its divisions, with over 20 programs planned for this year [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2026 revenue guidance of $905 million to $915 million, reflecting approximately 9% year-over-year growth [6][22] - The company is focused on delivering strong student and employer outcomes, which have been a cornerstone of its operations for over 60 years [7] - Management noted that while growth investments may lead to short-term margin pressure, they are essential for long-term value creation [23][25] Other Important Information - Total available liquidity at the end of the quarter was $233.2 million, including $69.2 million of short-term investments [21] - The company expects adjusted EBITDA to exceed $150 million, including approximately $40 million in growth investments [23][25] Q&A Session Summary Question: Insights on UTI and Concorde student starts - Management confirmed that UTI starts were expected to perform better due to increased marketing efforts, while Concorde starts were flat due to a high comparison base from the previous year [32][34] Question: CapEx expectations - The company reiterated a full-year CapEx expectation of around $100 million, with a significant portion allocated to growth investments [44][46] Question: Heartland Fort Myers campus funding - The campus will operate similarly to other campuses, with options for government loans and Pell Grants now available [54] Question: Margin pressure in Concorde - The decline in EBITDA margins was attributed to growth investments, with no structural issues affecting profitability [57] Question: Confidence in start acceleration - Management indicated that momentum is building with new programs and campuses opening, contributing to expected growth in student starts [61][62] Question: Updated thoughts on acquisitions - Management noted limited acquisition opportunities in the current environment, as many operators are not looking to exit the market [119]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased nearly 13% year over year to $207.4 million [11][26] - Average full-time active students grew over 10% year over year to 24,604 students [11][25] - New student starts grew more than 21% year over year to 6,650 starts [11][25] - Net income increased 47% to $11.4 million with diluted earnings per share of $0.21 [11][27] - Adjusted EBITDA grew approximately 28% year over year to $28.9 million [11][27] Business Line Data and Key Metrics Changes - Concord division saw a 15.5% increase in average full-time active students and a 15.9% rise in new student starts year over year [25] - UTI division generated a 7% increase in average full-time active students and a 26.4% growth in new student starts year over year [26] Market Data and Key Metrics Changes - Demand for skilled labor, particularly in trades and healthcare, continues to strengthen, creating a favorable environment for the company [10][60] - The ongoing supply and demand imbalance in critical sectors is generating additional tailwinds for the business [10] Company Strategy and Development Direction - The company is committed to growth, diversification, and optimization as part of its North Star strategy [34] - Plans to launch at least six new programs each year and open at least two new campuses annually starting in fiscal 2026 [22] - The company is raising its fiscal 2025 guidance, anticipating consolidated revenue between $825 million and $835 million [19][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite regulatory changes and macroeconomic uncertainties [9][10] - The company is well-positioned to accelerate growth in its Concord and UTI divisions [9] - Management highlighted the importance of maintaining strong communication with the Department of Education [9][84] Other Important Information - The company is expanding its program offerings, including new nursing programs and skilled trades programs [13][18] - The company has recently appointed a new CFO and COO to support its growth strategy [20][21] Q&A Session Summary Question: Any campuses or programs to highlight for strong new starts? - Management noted increased marketing investment in healthcare and strong performance in clinical courses, as well as growth in skilled trades programs [41][42] Question: How does enrollment growth break out for UTI and Concord in Q3 and Q4? - Management indicated that growth rates may become challenging for Concord due to capacity limits, while UTI is focusing on high school populations [46][47] Question: Can you comment on trends in employer demand for graduates? - Management reported steady demand for transportation graduates and increasing demand for skilled trades and healthcare professionals [56][59] Question: What are the plans for marketing spend? - Management plans to continue investing in marketing, particularly in areas showing good ROI [68] Question: What could go wrong in achieving the low end of guidance? - Management expressed confidence in the guidance but acknowledged potential challenges in maintaining double-digit growth rates in the upcoming quarters [86]