Q3 2024 Universal Technical Institute Inc Earnings Call Transcript
Key Points
- Universal Technical Institute Inc (UTI) achieved nearly 16% growth in revenue to $177.5 million, with a 13% increase in average undergraduate full-time active students year over year.
- Net income grew to $5 million with diluted earnings per share of $0.09, and adjusted EBITDA increased by 61% to $18.4 million.
- The Concorde division experienced nearly 35% year-over-year growth in starts, benefiting from favorable start timing and clinical program expansions.
- UTI's partnerships, such as the new initiative with Heartland Dental, are expected to add significant revenue and be accretive to EBITDA margins.
- The company is on track to achieve the higher end of its revenue and new student start guidance for fiscal 2024, reaffirming its growth trajectory.
- The UTI division experienced a year-over-year decline in starts due to a shift in student start timing from June to July.
- There are ongoing challenges with FAFSA processing, which have caused complications and delays in student enrollments.
- Growth restrictions on Concorde due to Department of Education regulations limit the ability to open new campuses or add new programs until mid to late 2026.
- The macroeconomic environment shows signs of a weaker economy, with fewer jobs being added and a rising unemployment rate, which could impact future enrollments.
- The transition to new FAFSA processes has been complicated, affecting the ability to move students into earlier start dates.
Good day and welcome to the Universal Technical Institute third-quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Matt Kempton, VP, Corporate Finance. Please go ahead.
Hello, and welcome to Universal Technical Institute's fiscal third-quarter 2024 earnings call. Joining me today are our CEO, Jerome Grant; and CFO, Troy Anderson. Following our prepared remarks, we will open the call for your questions. A replay of this call, its transcript, and our investor presentation will be archived on the Investor Relations section of our website at investor.uti.edu, along with our earnings release issued earlier today and furnished to the SEC.
During this call, we may make comments that contain forward-looking statements as defined in the Private Securities and Litigation Reform Act of 1995, which by their nature address matters that are in the future and are uncertain. These
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