Universal Technical Institute(US:UTI)2022-12-12 16:28Financial Data and Key Metrics Changes - Revenue for fiscal year 2022 increased by 25% to approximately $419 million, while adjusted EBITDA rose by 72% to approximately $56 million [14][32] - Net income for the full year was $25.8 million, representing a 77% increase from 2021, with fully diluted earnings per share increasing to $0.38 from $0.17 [33][34] - Adjusted net income for the full year was $35.5 million, exceeding the high end of guidance [34] Business Line Data and Key Metrics Changes - New student starts grew by 2.7% for the year, with average active students in the fourth quarter increasing by 4.5% [14][36] - Revenue per student for the quarter was approximately $8,700, and for the year, it was $32,600, normalizing to pre-COVID levels [32] Market Data and Key Metrics Changes - The adult channel faced significant enrollment challenges due to macroeconomic factors, particularly inflation affecting affordability [15][16] - Despite these challenges, there were signs of improvement in adult enrollment performance year-over-year [16] Company Strategy and Development Direction - The company aims to expand its program offerings and has made significant progress in executing its long-term strategy, including the acquisition of Concorde Career Colleges [10][19] - In 2023, the company plans to introduce 15 new programs across 10 campuses, focusing on various in-demand fields [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment but expressed optimism about the interest in their programs and the pace of new student enrollments [17][18] - The company expects to achieve revenue between $595 million and $610 million in fiscal 2023, with adjusted EBITDA ranging from $58 million to $62 million [25][49] Other Important Information - The company established a $100 million revolving credit facility to enhance financial flexibility [39] - The acquisition of Concorde is expected to significantly expand the company's addressable market and program offerings [22][24] Q&A Session Summary Question: What is the current macro demand situation? - Management noted improvements in the adult channel, with better lead conversion rates and student engagement compared to the previous year [64][65] Question: What is the outlook for new student starts excluding Concorde and new campuses? - The company anticipates low to mid-single digit growth from the existing base, with a focus on high school and military channels [66][67] Question: What are the plans for tuition increases in light of inflation? - The company plans for a consistent low-single digit annual tuition increase, with adjustments made earlier than usual due to cost escalations [68] Question: What was the adult, high school, and military mix in FY '22? - The mix was approximately 42% adult, 44% high school, and 14% military, with expected shifts towards high school in FY '23 [71][72] Question: What are the growth expectations for Concorde in '23? - Concorde is expected to see a few points of growth, with mid to upper single-digit growth in starts and EBITDA [83]