Universal Technical Institute(US:UTI)2020-08-09 14:58Financial Data and Key Metrics Changes - Total revenues decreased by 31.3% year-over-year to $54.5 million, primarily due to a higher number of students on leave of absence (LOA) and lower revenue per student [32][55] - Net loss for the quarter was $13.3 million, translating to a basic and diluted EPS loss of $0.45, compared to a net loss of $0.4 million in the prior year quarter [63][64] - Adjusted EBITDA loss was $8.8 million, compared to an adjusted EBITDA of $4.5 million in the prior year quarter [65] Business Line Data and Key Metrics Changes - New student starts increased by 8.4% year-over-year, totaling 1,824 in the third quarter, driven by military and high school channels [50][51] - Job placement rates for graduates remained above 80%, with the 2019 graduate cohort at 82% [14] Market Data and Key Metrics Changes - Scheduled enrollments in Q3 were 20.2% higher than the previous year, although the show rate declined by 400 basis points [52] - Active students increased to approximately 9,900 by the end of July, reflecting a positive trend in LOA returns [54] Company Strategy and Development Direction - The company continues to invest in its students, facilities, and partnerships, focusing on supporting students through economic uncertainty [19][23] - Strategic initiatives include program expansions, new campus locations, and selective acquisitions to drive growth [37][38] - The company is adapting its marketing and admissions strategies to a more digital approach, resulting in increased media inquiries and engagement [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unique challenges posed by the pandemic-induced recession but also highlighted opportunities for growth in technical training demand [29][76] - The company is optimistic about future student demand, with enrollments for Q4 running above pre-pandemic targets [28][49] - Management emphasized the importance of flexibility and support for students during this period [35][40] Other Important Information - The company has distributed over $13.6 million in CARES Act funding to more than 8,700 students to provide financial aid during the pandemic [21] - Operating expenses decreased by 14.1% year-over-year to $68.3 million, reflecting significant reductions in labor costs and variable campus expenses [59][60] Q&A Session Summary Question: Revenue decrease in June quarter - Management attributed the revenue decrease to higher LOAs and timing of student progression through lab makeup processes [82][83] Question: Revenue projection for the year - Management indicated that while Q4 should look better than Q3, they cannot provide specific guidance [86][87] Question: Impact of COVID-19 on campus operations - Management confirmed that campuses have remained open as essential services, with no reversals on social distancing rules [99] Question: Student engagement and reticence - Management noted that the majority of delays in student engagement are due to reticence related to COVID-19 concerns [132]