By submitting this form, I agree that MIAT College of Technology, Universal Technical Institute, Inc., Custom Training Group, Inc. and their representatives may email, call, and / or text me with marketing messages about educational programs and services, as well as for school-related communications, at any phone number I provide, including a wireless number, using prerecorded calls or automated technology. However, such a recovery seems highly unlikely.
By submitting this form, I agree that MIAT College of Technology, Universal Technical Institute, Inc., Custom Training Group, Inc. and their representatives may email, call, and / or text me with marketing messages about educational programs and services, as well as for school-related communications, at any phone number I provide, including a wireless number, using prerecorded calls or automated technology. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. PTA organized lecture training seminars in markets similar to NTT. 3) A total of 82% of UTI graduates in 2021 were employed within one year of their graduation date. UTI is an educational institution and cannot guarantee employment or salary. I have no business relationship with any company whose stock is mentioned in this article. In the latest earnings call of the company McWaters also talked about the implementation of a predictive model and other things, but I don't see that as relevant because it's as simple as whether or not new students are coming on board or not. "Universal Technical Institute's brands have a great reputation with both employers and students in transportation and skilled trades. has resulted in lower new student starts, fewer retention rates, and an ongoing plunge in average student population, which has fallen for years. PHOENIX, May 3, 2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), a leading provider of transportation and technical training programs, has entered into a definitive agreement to acquire Concorde Career Colleges, Inc.from Liberty Partners LLC. UTI's default rate, however, was relatively low for a for-profit college, fluctuating from 12% to 16%. Other than cutting variable costs, the other major thing UTI must do is build back its student population. Click the button and tell us what program you're interested in! These days I invest only for myself while continuing to write on a variety of financial and economic topics. Any forward-looking statements made by UTI in this press release are based only on information currently available to UTI and speak only as of the date on which it is made. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? Once completed, the acquisition will add Concorde Career Colleges to Universal Technical Institute, Inc.'s brand family, which currently includes Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. See how manufacturer-specific training can help increase opportunities to work on leading industry brands.1. 2018 Universal Technical Institute, Inc. All rights reserved. The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. For further details on how we use your data, please review UTI's Privacy Policy. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Find out more in our resources. We have 9 programs at 13 locations. The acquisition expands Universal Technical Institute's portfolio of offerings into the higher-growth healthcare arena and creates the opportunity to bring workforce educational solutions to a broader array of students and employers. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of UTI's control. Investors impressed by UTIs job placement rates need also to look at the quality of the jobs the graduates are getting. Jerome Grant will continue to directly lead this division until a Divisional President is named. Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs. Net income for the first half of fiscal 2013 is $2.6 million, or $0.11 per share, compared to $6.4 million or $0.26 per share year-over-year. Our data reflects individual insiders, capturing board members at the very least. Growing Distrust Deters Potential Students. I understand that my consent is not required to apply, enroll or make any purchase. Search trends for automotive education are down 10% year-over-year. According to theDepartment of Education, for-profit colleges account for only 13% of the higher education population but nearly half of all loan defaults. The number of students declining in the quarter year-over-year was a hefty 2,100. If school is not listed, please fill in here: If your duty station is not listed, enter here: What kind of training are you interested in? As it is, it has the same old manager in a declining industry that must come up with new ideas. UTI is an educational institution and cannot guarantee employment or salary. For the first half growth came in at 17 percent. The fall in revenue was directly tied to the decline in students attending the school. Contact an Admissions Representative to begin the enrollment process. UTI welcomes General Education Diploma students. Divided Government And The Way Forward For The Markets, How Negativity Bias Leads To Mistakes In Portfolios, Transforming The Wealth Management Experience For Todays Client, MoneyStamps Of South America - As Investments, Theyre Different Part 1, Covid-19 Related Municipal Defaults Begin, The Dynamics Of Price Discovery In The Stamp Market, limit the amount of debt that students can take on in career-training programs, grow NOPAT by 17% compounded annually for 12 years. Concorde Career Colleges is a leading provider of healthcare education programs focused on preparing students for successful professions in the healthcare sector, which is expected to add about 2.6 million new jobs over the next decade due to attrition in the workforce along with an aging population that is expected to drive increased demand for healthcare services.1 The company offers diploma and degree programs across nursing, dental hygiene, and other direct patient care fields including physical therapy assistant and respiratory therapy, as well as allied health including medical and dental assisting and healthcare administration. institution andcannot guarantee employment or salary. Media ContactAlanna [email protected], View original content to download multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html. 2) For important information about the educational debt, earnings and completion rates of students who attended this program, visit our website atwww.uti.edu/disclosures. The most recent data shows that average enrollment has again decreased in 2014, which exerts further downward pressure on profitability. They aren't always helpful and tuition way overpriced. ", "We are excited about the opportunity to add Concorde and their healthcare programs to the Universal Technical Institute portfolio," said Universal Technical Institute's CFO Troy Anderson. You may opt-out of receiving targeted advertisements from other companies that perform interest-based advertising services, including some that we may work with, via the Digital Advertising Alliance (DAA) site at http://optout.aboutads.info. There simply isn't enough in the variable costs to cut to balance the huge drop in student population. For the trailing twelve months ended September 30, 2022, Concorde reported unaudited revenue of approximately $200 million and adjusted EBITDA of approximately $17 million. The scholarship growth angle is a good one, but unless it includes a large number of students it won't do much to change the performance of UTI over the long term. Grant to Succeed Kimberly J. McWaters as Chief Executive Officer", "Universal Technical Institute Completes Acquisition of MIAT College of Technology", https://www.bizjournals.com/phoenix/news/2021/11/05/phoenix-school-back-in-growth-mode.html, "Universal Technical Institute Will Add 15 New Programs in Transportation and Skilled Trades Across Its National UTI/MIAT Campus Footprint", "UTI Adding New Automotive, Skilled Trade Programs | THE SHOP", "Universal Technical Institute Expands Platform of Workforce Solutions Offerings with Completion of Concorde Career Colleges, Inc. Acquisition", "Universal Technical Institute, Inc. to Acquire Concorde Career Colleges, Inc., a Leading Provider of Healthcare Education Programs", "Universal Technical Institute plans $50M acquisition of Concorde Career Colleges", "Ford to collaborate with Universal Technical Institute on EV training curriculum", "Universal Technical Institute Selects Bosch to Develop New Courseware Supporting its Electric Vehicle Training Strategy", https://www.bizjournals.com/phoenix/news/2018/02/08/uti-stock-up-while-stemming-losses-as-enrollment.html, "Universal Technical Institute Celebrates Opening of Austin Campus", "Universal Technical Institute Selects Miami Metropolitan Area As The Location For The Second New Campus It Plans To Open In 2022", https://en.wikipedia.org/w/index.php?title=Universal_Technical_Institute&oldid=1133240788, This page was last edited on 12 January 2023, at 21:12. I generally consider insider ownership to be a good thing. Universal Technical Institute will post an updated presentation regarding its growth and diversification strategy on its investor relations website. Perhaps investors are overlooking the fundamental problems in the business due to the steady cash payments from the company. With 7.0% and 6.0% of the shares outstanding respectively, 22NW, LP and BlackRock, Inc. are the second and third largest shareholders. [3], The 2012 Harkin Commission noted that: "Compared to public colleges offering the same programs, the price of tuition is significantly higher at UTI.The same Certificate costs almost 20 times more at UTI than it does at the public college." For more information about cookies you can visit https://www.allaboutcookies.org. Simply Wall St has no position in any stocks mentioned. I look forward to collaborating with Jerome and his team as we work to help students and employers close the gap between the need for well-trained and skilled workers and the availability of quality programs designed to meet the needs of employers across a variety of industries.". It's always worth thinking about the different groups who own shares in a company. That said, the strategy of UTI is to cut advertising expenses while increasing inquiry volume. All shareholders and investors need to watch to evaluate the company is its success or failure at growing its student population. For one, the desirability of a career in auto maintenance seems to be declining. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. That included fewer students applying and a 60-basis-point drop in the show rate. UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. Adult students are even more of a challenge, as the value of education at the current price levels is being questioned as it never has been before, and that shows in the 17 percent drop in adult applications at UTI in the second quarter. Privacy Policy For further details on how we use your data, please review UTI's Privacy Policy. whale wars crew death dropping out of universal technical institute. The Company is comprised of two divisions: UTI and Concorde Career Colleges. UTI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. PHOENIX, Dec. 1, 2022 /PRNewswire/ -- Universal Technical Institute, Inc.(NYSE: UTI), a leading workforce solutions provider of transportation and skilled trades education programs, today announced the close of its acquisition of Concorde Career Colleges, Inc. ("Concorde"),which offers more than 20 programs across the Allied Health, Dental, Nursing, Patient Care, and Diagnosticfields. Universal Technical Institute of Illinois, Inc. is approved by the Division of Private Business and Vocational Schools of the Illinois Board of Higher Education. Since the items excluded from this measure are significant components in understanding and assessing financial performance under GAAP, this measure should not be considered to be an alternative to net income (loss), or any other measures derived in accordance with GAAP as a measure of operating performance or profitability. In 1988 UTI opened their Lisle, Illinois, campus. The boards of directors of both companies have unanimously approved the agreement. Second Quarter Fiscal Year 2022 Results conference call, https://www.bls.gov/ooh/healthcare/home.htm. Considering the weak competitive position of UTI, the only likely reason I can discern for UTIs higher valuation is its 4% dividend yield. Since there isn't much else the company can do, as it must increase student starts, it apparently is a risk it's willing to take to stem the steep decline in its student body. The acquisition adds campuses in Texas and Michigan and eight new . I further understand and agree that I may instead call MIAT at 1-800-477-1310 for Canton, MI and 1-888-547-7047 for Houston, TX or UTI at 1-800-913-7524 to request admission information. I further understand and agree that I may instead call MIAT at 1-800-477-1310 for Canton, MI and 1-888-547-7047 for Houston, TX or UTI at 1-800-913-7524 to request admission information. 2) For program outcome information and other disclosures, visit www.uti.edu/disclosures. Enrollment has been declining since then. The ongoing high fixed costs, which can't be managed, is what makes UTI such a risk to own if investors want any type of growth. UTI Graduation Rate by Race/Ethnicity. Take an interactive 360 virtual tour by clicking on any of the program links below. 1.7 million+ Total technician employment expected nationally by 203138 That was part of the fiasco of mortgages several years ago when applicants shouldn't have been given adjustable rate mortgages to buy a home. To address the needs of industry and corporate clients, UTI started providing continuing education and training for technicians in 1980. That liability equals 66% of the stocks market cap and is 195% larger than the companys cash balance. If UTI can return to the profits it earned in 2011, the stock would be closer to reasonably valued. We aim to bring you long-term focused analysis driven by fundamental data. The problem with this strategy is that demand for UTIs education appears to be highly elastic. All statements contained in this press release, other than statements of historical fact, are "forward-looking" statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). UTI expanded its programs with additional curricula and opened new campuses, growing internally and through acquisitions. Examples of forward-looking statements include, among others, statements regarding (1) UTI's belief that the acquisition will serve as a cornerstone for its key future growth and diversification efforts; (2) UTI's ability to integrate Concorde's healthcare programs into its portfolio of educational offerings; (3) UTI's anticipated expansion efforts; (4) UTI's expectation of increasing shareholder value; and (5) UTI's expectation of accelerating its revenue, profitability and cash flow over the next several years. New rulesrelated to the Telephone Consumer Protection Act (TCPA) went into effect in October 2013 that have made it more difficult for telemarketers to reach consumers that have not given prior consent to receive calls. Is that demand for UTIs education appears to be declining help increase opportunities to work on leading brands.1... Very least in Texas and Michigan and eight new revenue was directly tied the. 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