PHOENIX, May 6, 2021 — Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of transportation technician training, reported financial results for the fiscal 2021 second quarter ended March 31, 2021.
- New student starts in the second quarter increased 14.9% from the prior year quarter, while average active students increased 10.8%.
- Revenue of $77.7 million in the second quarter, a decrease of 6.1% compared to the prior year quarter.
- As part of its growth and diversification strategy, during the quarter the company announced plans to launch two new campuses and to acquire MIAT College of Technology.
- Management reaffirms fiscal year 2021 guidance given strong front-end demand and ongoing operating improvements.
“I’m pleased with the continued progress we made across our business and with our students this quarter as we saw accelerating improvement in our most important leading metrics.” said Jerome Grant, UTI’s Chief Executive Officer.
“This quarter we also took several meaningful steps as we begin to execute on our ambitious growth and diversification strategy. The announced acquisition of MIAT College of Technology will not only give us exposure to a new geographic market but will also allow us to quickly expand new programs in high-demand fields such as renewable energy, aviation, HVACR and robotics throughout our campus footprint. Additionally, the recently announced new campuses in Austin, TX and Miami, FL will be the first designed to utilize our fully blended learning model, which will allow for greater efficiency and space utilization and will expand our presence in growing markets.”
Grant continued, “I want to emphasize that these are just initial steps, and we are actively exploring additional growth opportunities that align with our broader strategy. Our strategy is focused on expanding UTI’s value proposition and delivering a high-quality technical education in multiple fields with strong demand and exciting career paths. We believe the need for our services and the education we provide is significant and growing across this country. We as a team look forward to continuing to execute on this strategy and moving this organization along the right path.”
Financial Results for the Three-Month Period Ended March 31, 2021 Compared to 2020
- New student starts increased 14.9% reflecting strong front-end demand across all channels.
- Revenues decreased 6.1% to $77.7 million compared to $82.7 million, which includes the deferral of $0.8 million of revenue related to the timing of completion of student make-up labs. The overall decrease is primarily attributable to lower average revenue per student driven by the pace in which students are progressing through their programs.
- Operating expenses decreased by 4.6% to $79.4 million, compared to $83.2 million. The decrease was primarily attributable to a $2.4 million decrease in occupancy costs due to multiple initiatives related to the ongoing real estate footprint rationalization, including the purchase of the Avondale, Arizona campus in December 2020. The remaining year over year decrease is primarily attributable to lower travel and entertainment and advertising costs, along with other benefits from cost reduction and productivity improvement initiatives.
- Operating loss was $1.7 million, compared to a loss of $0.5 million.
- Net loss was $1.5 million, compared to net income of $10.1 million. Adjusted net loss* was $0.8 million compared to adjusted net income* of $0.3 million. The prior year net income included a $10.8 million income tax benefit resulting from the application of revised net operating loss carryback regulations from the CARES Act.
- Basic and diluted (loss) income per share (EPS) were $(0.09) compared to $0.18.
- Adjusted EBITDA* was $2.8 million, compared to $3.1 million.