On August 6, 2024, Universal Technical Institute Inc (UTI, Financial) released its 8-K filing for the fiscal third quarter ended June 30, 2024. Universal Technical Institute Inc is an educational institution providing undergraduate degree and certificate programs for technicians in various fields, including automotive, diesel, collision repair, motorcycle, and marine. The company operates through two segments: Universal Technical Institute (UTI) and Concorde Career Colleges, with the majority of revenue generated from the UTI segment.
Performance Highlights
Universal Technical Institute Inc (UTI, Financial) reported a revenue of $177.5 million for Q3 2024, marking a 15.8% increase compared to the same period last year. This figure surpassed the analyst estimate of $172.79 million. The company also reported a net income of $5.0 million, a significant improvement from the net loss of $0.5 million in Q3 2023. The earnings per share (EPS) stood at $0.09, exceeding the analyst estimate of $0.07.
Key Financial Achievements
The company's financial achievements are noteworthy, particularly in the context of the education industry. The revenue growth was driven by a 13.4% increase in average undergraduate full-time active students and a 5.0% rise in total new student starts. The adjusted EBITDA also saw a substantial increase of 60.9%, reaching $18.4 million compared to $11.4 million in the prior year period.
Income Statement Overview
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $177.5 million | $153.3 million |
| Operating Expenses | $170.0 million | $152.6 million |
| Net Income | $5.0 million | $(0.5) million |
| EPS | $0.09 | $(0.05) |
Segment Performance
The UTI segment reported revenues of $117.1 million, a 16.1% increase from the prior period, driven by growth in average undergraduate full-time active students. The Concorde segment also performed well, with revenues of $60.3 million, a 15.0% increase from the previous year. Both segments saw increases in operating expenses due to new program launches and growth in student numbers.
Balance Sheet and Cash Flow
As of June 30, 2024, Universal Technical Institute Inc (UTI, Financial) had total available cash liquidity of $148.5 million, including $33.0 million available from its revolving credit facility. Capital expenditures for the quarter were $7.0 million, primarily driven by program expansion investments for both UTI and Concorde.
Management Commentary
"Our momentum persisted as we moved into the second half of the fiscal year," said Jerome Grant, CEO of Universal Technical Institute, Inc. "We have been highly focused on ramping up our most recent program launches, enhancing the yield of marketing investments to maximize lead generation and inquiry conversion, and optimizing our workforce and facilities utilization."
Future Outlook
Universal Technical Institute Inc (UTI, Financial) reiterated its full-year guidance for all key metrics, with revenue and new student starts trending towards the higher end of the previously communicated ranges. The company also provided initial projections for fiscal 2025, indicating revenue of nearly $800 million and an adjusted EBITDA margin of approximately 15%, representing at least 100 basis points of adjusted EBITDA margin expansion versus fiscal 2024.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Universal Technical Institute Inc for further details.
