0001261654FALSE00012616542025-02-052025-02-05
____________________________________________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 5, 2025
UNIVERSAL TECHNICAL INSTITUTE, INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
| Delaware | 1-31923 | 86-0226984 |
(State or other jurisdiction
of incorporation) | (Commission
File Number) | (IRS Employer
Identification No.) |
| | | | | |
4225 E. Windrose Drive, Suite 200 Phoenix, AZ (Address of principal executive offices) | 85032 (Zip Code) |
(623) 445-9500
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.0001 par value per share | UTI | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
☐ Emerging growth company
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On February 5, 2025, Universal Technical Institute, Inc. (the "Company") issued a press release reporting its first quarter results for fiscal 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Form 8-K”) and is incorporated into this Item 2.02 by reference.
Item 7.01 Regulation FD Disclosure.
The Company also posted to the investor relations section of its website (https://investor.uti.edu): (i) an investor presentation (the “Investor Presentation”), furnished herewith as Exhibit 99.2, and (ii) and a financial supplement, furnished herewith as Exhibit 99.3 (the “Financial Supplement”). Each of the Investor Presentation and the Financial Supplement will be used by the Company during meetings with investors and analysts. This information may be amended or updated at any time and from time to time through another Form 8-K, a later company filing, or other means.
The information in Item 2.02 and Item 7.01 of this Form 8-K, including Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 attached hereto, is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits | | | | | | | | | | | |
| | | | |
| Exhibit No. | | Description | |
| | | |
| 99.1 | | | |
| 99.2 | | | |
| 99.3 | | | |
| 104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | | | | | | | | | | | | | | |
| | | | | |
| | | UNIVERSAL TECHNICAL INSTITUTE, INC. |
| | | | | |
| February 5, 2025 | | By: | | /s/ Christine C.S. Kline |
| | | Name: | | Christine C.S. Kline |
| | | Title: | | Interim Chief Financial Officer and Chief Accounting Officer |
Exhibit 99.1
Universal Technical Institute Reports Fiscal Year 2025 First Quarter Results
Delivers Financial and Operational Outperformance in Fiscal Q1; Raises Fiscal 2025 Guidance Ranges for All Metrics
PHOENIX, ARIZ. - February 5, 2025 - Universal Technical Institute, Inc. (NYSE: UTI), a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, reported financial results for the fiscal 2025 first quarter ended December 31, 2024. Universal Technical Institute, Inc. operates in two reportable segments, Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde), and together with its segments and subsidiaries is referred to as the “Company,” “we,” “us” or “our.”
•Revenue of $201.4 million representing 15.3% growth versus the comparable period.
•Total new student starts grew 22.3% while average full-time active students grew 11.1% versus the comparable period.
•Net income of $22.2 million, an increase of 113.2% over the comparable period.
•Adjusted EBITDA(1) of $35.5 million, an increase of 44.8% over the comparable period.
•Full year guidance raised for all key metrics.
“In the first quarter of 2025, we continued to deliver on our growth, diversification, and optimization strategy, leading to outperformance across our key financial and operational metrics," said Jerome Grant, CEO of Universal Technical Institute, Inc. "Both divisions experienced strong year-over-year growth, with consolidated revenue increasing 15%, average full-time active students growing 11%, and new student starts growing over 22%, while considerably increasing our bottom line. As a result, I’m proud to report that we are increasing our guidance ranges for fiscal 2025. We are fully aligned with our strategic growth objectives and are making steady progress toward achieving them throughout the year.
"As a reminder, the beginning of this year officially marked the start of our North Star Phase II strategy, building on our proven track record of success and leveraging our strong balance sheet to create value for all stakeholders. Our focus on strategic investments, technological innovation, and strong partnerships positions us to expand our brand, drive enrollment, and continue delivering industry-leading student outcomes. With a clear vision and a commitment to excellence, we are well-positioned to achieve sustainable growth and create a positive impact for our students, faculty, staff, and shareholders in the years to come.”
Financial Results for the Three-Month Period Ended December 31, 2024 Compared to 2023
•Revenues increased 15.3% to $201.4 million compared to $174.7 million primarily due to the growth in average full-time active students at both UTI and Concorde.
•Operating expenses increased by 8.4% to $174.0 million, compared to $160.5 million primarily due the growth in average full-time active students at both UTI and Concorde and costs associated with program expansions.
•Operating income increased to $27.5 million compared to $14.2 million.
•Net income increased to $22.2 million compared to $10.4 million.
•Basic and diluted earnings per share (“EPS”) were $0.41 and $0.40, respectively, compared to $0.18 and $0.17, respectively.
•Adjusted EBITDA(1) increased 44.8% to $35.5 million compared to $24.5 million.
•Net cash provided by operating activities increased by 111.9% to $23.0 million.
•Adjusted free cash flow increased 85.1% to $18.9 million.
•New student starts of 5,313 compared to 4,346, with average full-time active students increasing 11.1%.
UTI
•Revenues of $131.5 million, an increase of 14.0% from the comparable period revenues of $115.4 million due primarily to growth in average full-time active students.
•Operating expenses were $106.0 million compared to $100.3 million. The increase was primarily due to growth in average full-time active students and additional expenses incurred related to new program launches.
•Adjusted EBITDA(1) was $31.9 million compared to $21.6 million.
•New student starts increased 19.0% to 2,753, while average full-time active students increased 8.0%.
Concorde
•Revenues of $70.0 million, an increase of 17.9% over the comparable period revenues of $59.3 million due primarily to growth in average full-time active students.
•Operating expenses were $58.8 million compared to $52.2 million. The increase was primarily due to growth in average full-time active students and additional expenses incurred during the current year related to new program launches.
•Adjusted EBITDA(1) was $13.0 million compared to $8.8 million.
•New student starts increased 26.0% to 2,560, while average full-time active students increased by 16.4%.
“Our first quarter results exceeded our expectations across both the top and bottom line,” said Christine Kline, Interim CFO of Universal Technical Institute, Inc. “The Concorde division continued its growth trajectory, driven by investments in marketing and admissions efforts that led to higher average full-time student enrollment and improved start rates. The UTI division demonstrated significant year-over-year growth, primarily driven by an increase in new student starts and higher average full-time students, with some of the growth driven by start deferrals from the fourth quarter into the first quarter as a result of FAFSA delays. The top-line growth combined with a shift in timing for strategic investments resulted in lower than anticipated spend in the quarter, and drove the outperformance on the bottom line.
“As we look at the remainder of 2025, we are raising our annual guidance ranges for all key metrics with the expectation to generate $810 million to $820 million in revenue, $122 million to $126 million in adjusted EBITDA, and 28,500 to 29,500 in new student starts. With favorable macro-economic dynamics, a healthy balance sheet, and an experienced team with a strong focus on executing our strategic growth initiatives, we believe we are well-positioned to meet our expectations for fiscal year 2025, along with our longer-term growth targets for Phase II of our North Star Strategy."
Balance Sheet and Liquidity
At December 31, 2024, the Company’s total available cash liquidity was $246.0 million which includes $74.0 million available from its revolving credit facility. Capital expenditures (“capex”) for the year-to date period were $3.3 million. The primary driver of capex for the quarter was the program expansions at both UTI and Concorde.
Updated Fiscal 2025 Financial Outlook
| | | | | | | | | | | |
| Previous | | Updated |
| FY 2025 | | FY 2025 |
| ($ in millions, except EPS) | Guidance | | Guidance |
| New student starts | 28,000 - 29,000 | | 28,500 - 29,500 |
| Revenue | $800 - 815 | | $810 - 820 |
| Net Income | $52 - 56 | | $54 - 58 |
| Diluted EPS | $0.93 - 1.01 | | $0.96 - 1.04 |
Adjusted EBITDA(1) | $120 - 124 | | $122 - 126 |
Adjusted free cash flow(1)(2) | $58 - 62 | | $60 - 65 |
(1) See the "Use of Non-GAAP Financial Information" below. For a detailed reconciliation of the non-GAAP measures, see the tables following the earnings release.
(2) For FY 2025, assumes approximately $55M of total capex, including investments for new campus launches and program expansions, and maintenance capex.
For the Company’s most recent investor presentation and quarterly financial supplement, please see its investor relations website at https://investor.uti.edu.
Conference Call
Management will hold a conference call to discuss the financial results for the fiscal 2025 first quarter ended December 31, 2024, on Wednesday, February 5, 2025, at 4:30 p.m. ET.
To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute, Inc. investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu. Alternatively, the telephone replay can be accessed through February 19, 2025, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 8302718.
Use of Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information in this press release and may similarly disclose non-GAAP financial information on the related conference call. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. Additional details on our non-GAAP measures and the tables reconciling these measures to the most directly comparable GAAP measure are provided below.
Adjusted EBITDA: The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations.
Adjusted Free Cash Flow: The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations.
Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include:
•Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.
•Restructuring charges: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating
under the UTI brand. MIAT-Houston students who have not completed their programs before their program’s teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use post-consolidation.
To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission (“SEC”). Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is provided below and investors are encouraged to review the reconciliations.
Forward Looking Statements
All statements contained in this press release and the related conference call, 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). These forward-looking statements which address our expected future business and financial performance, may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. Examples of forward-looking statements include, among others, statements regarding (1) the Company’s expectation that it will meet its fiscal year 2025 guidance for new student start growth, revenue growth, net income, diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash Flow; (2) the Company’s expectation that it will continue to expand its value proposition and build a business that can grow in double digits with potential upside, regardless of the economic environment; and (3) the Company’s expectation that it will succeed in new program launches next year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. 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 our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for or our ability to process federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans’ benefit programs; continued Congressional examination of the for-profit education sector; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions.; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students’ ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the credit agreement; the effect of our principal stockholder owning a significant percentage of our capital stock, and thus being able to influence certain corporate matters and the potential in the future to gain substantial control over our company;
the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Further information on these and other potential factors that could affect the financial results or condition may be found in the company's filings with the SEC. Any forward-looking statements made by us in this press release and the related conference call are based only on information currently available to us and speak only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions or circumstances, or otherwise.
Social Media Disclosure
Universal Technical Institute, Inc uses its websites (https://www.uti.edu/, https://concorde.edu, and https://investor.uti.edu/) and LinkedIn pages (https://www.linkedin.com/school/universal-technical-institute/ and https://www.linkedin.com/school/concorde-career-colleges/) as channels of distribution of information about its programs, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and the Company may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company's website and its social media accounts in addition to following the company's press releases, SEC filings, public conference calls, and webcasts.
About Universal Technical Institute, Inc.
Universal Technical Institute, Inc. (NYSE: UTI) was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand careers across a number of highly-skilled fields. The Company is comprised of two divisions: Universal Technical Institute ("UTI") and Concorde Career Colleges ("Concorde"). UTI operates 15 campuses located in 9 states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute and NASCAR Technical Institute. Concorde operates across 17 campuses in 8 states, offering programs in the Allied Health, Dental, Nursing, Patient Care and Diagnostic fields. For more information, visit www.uti.edu or www.concorde.edu, or visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges or on X (formerly Twitter) @news_UTI or @ConcordeCareer.
Company Contact:
Christine Kline
Interim Chief Financial Officer and Chief Accounting Officer
Universal Technical Institute, Inc.
(623) 445-9464
Media Contact:
Susan Aspey
Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(202) 549-0534
saspey@uti.edu
Investor Relations Contact:
Matt Glover or Cody Cree
Gateway Group, Inc.
(949) 574-3860
UTI@gateway-grp.com
(Tables Follow)
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | |
| | 2024 | | 2023 | | | | |
| Revenues | $ | 201,429 | | | $ | 174,695 | | | | | |
| Operating expenses: | | | | | | | |
| Educational services and facilities | 100,141 | | | 92,409 | | | | | |
| Selling, general and administrative | 73,810 | | | 68,055 | | | | | |
| Total operating expenses | 173,951 | | | 160,464 | | | | | |
| Income from operations | 27,478 | | | 14,231 | | | | | |
| Other income (expense): | | | | | | | |
| Interest income | 1,759 | | | 1,975 | | | | | |
| Interest expense | (1,673) | | | (2,871) | | | | | |
| Other (expense) income, net | (35) | | | 214 | | | | | |
| Total other income (expense), net | 51 | | | (682) | | | | | |
| Income before income taxes | 27,529 | | | 13,549 | | | | | |
| Income tax expense | (5,376) | | | (3,160) | | | | | |
| Net income | $ | 22,153 | | | $ | 10,389 | | | | | |
| Preferred stock dividends | — | | | (1,097) | | | | | |
| Income available for distribution | $ | 22,153 | | | $ | 9,292 | | | | | |
| Income allocated to participating securities | — | | | (2,855) | | | | | |
| Net income available to common shareholders | $ | 22,153 | | | $ | 6,437 | | | | | |
| | | | | | | |
| Earnings per share: | | | | | | | |
| Net income per share - basic | $ | 0.41 | | | $ | 0.18 | | | | | |
| Net income per share - diluted | $ | 0.40 | | | $ | 0.17 | | | | | |
| | | | | | | |
Weighted average number of shares outstanding(1): | | | | | | |
| Basic | 53,987 | | | 36,434 | | | | | |
| Diluted | 55,406 | | | 37,439 | | | | | |
(1) On December 18, 2023, the Company exercised in full its right of conversion of the Company’s Series A Preferred Stock which resulted in the conversion of all outstanding Series A Preferred shares into 19,296,843 shares of Common Stock. As of December 31, 2024 there were 54,365,529 shares of Common Stock outstanding.
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and per share amounts)
(Unaudited)
| | | | | | | | | | | |
| December 31, 2024 | | September 30, 2024 |
| Assets | |
| Cash and cash equivalents | $ | 171,999 | | | $ | 161,900 | |
| Restricted cash | 5,755 | | | 5,572 | |
| | | |
| Receivables, net | 27,933 | | | 31,096 | |
| Notes receivable, current portion | 6,224 | | | 6,200 | |
| Prepaid expenses | 12,851 | | | 11,945 | |
| Other current assets | 6,111 | | | 5,238 | |
| Total current assets | 230,873 | | | 221,951 | |
| Property and equipment, net | 262,261 | | | 264,797 | |
| Goodwill | 28,459 | | | 28,459 | |
| Intangible assets, net | 18,007 | | | 18,229 | |
| Notes receivable, less current portion | 39,558 | | | 36,267 | |
| Right-of-use assets for operating leases | 155,666 | | | 158,778 | |
| Deferred tax assets, net | 4,415 | | | 3,563 | |
| Other assets | 14,517 | | | 12,531 | |
| Total assets | $ | 753,756 | | | $ | 744,575 | |
| Liabilities and Shareholders’ Equity | | | |
| Accounts payable and accrued expenses | $ | 81,655 | | | $ | 83,866 | |
| | | |
| Deferred revenue | 88,375 | | | 92,538 | |
| | | |
| Operating lease liabilities, current portion | 21,688 | | | 22,210 | |
| Long-term debt, current portion | 2,738 | | | 2,697 | |
| Other current liabilities | 7,900 | | | 3,652 | |
| Total current liabilities | 202,356 | | | 204,963 | |
| Deferred tax liabilities, net | 4,696 | | | 4,696 | |
| Operating lease liabilities | 144,409 | | | 146,831 | |
| Long-term debt | 117,327 | | | 123,007 | |
| Other liabilities | 4,992 | | | 4,847 | |
| Total liabilities | 473,780 | | | 484,344 | |
| Commitments and contingencies | | | |
| Shareholders’ equity: | | | |
Common stock, $0.0001 par value, 100,000 shares authorized, 54,448 and 53,899 shares issued, 54,366 and 53,817 shares outstanding as of December 31, 2024 and September 30, 2024, respectively. | 5 | | | 5 | |
| | | |
| Paid-in capital - common | 218,023 | | | 220,976 | |
| | | |
Treasury stock, at cost, 82 shares as of December 31, 2024 and September 30, 2024. | (365) | | | (365) | |
| Retained earnings | 60,662 | | | 38,509 | |
| Accumulated other comprehensive income | 1,651 | | | 1,106 | |
| Total shareholders’ equity | 279,976 | | | 260,231 | |
| Total liabilities and shareholders’ equity | $ | 753,756 | | | $ | 744,575 | |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| | | | | | | | | | | |
| Three Months Ended December 31, |
| | 2024 | | 2023 |
| Cash flows from operating activities: | | | |
| Net income | $ | 22,153 | | | $ | 10,389 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation and amortization | 7,999 | | | 6,984 | |
| | | |
| Amortization of right-of-use assets for operating leases | 5,593 | | | 5,531 | |
| | | |
| | | |
| Provision for credit losses | 2,101 | | | 1,486 | |
| Stock-based compensation | 720 | | | 1,482 | |
| Deferred income taxes | (671) | | | (730) | |
| | | |
| | | |
| Training equipment credits earned, net | (54) | | | 529 | |
| Unrealized gain (loss) on interest rate swaps, net of taxes | 545 | | | (886) | |
| Other (gains) losses, net | (25) | | | 245 | |
| Changes in assets and liabilities: | | | |
| Receivables | (632) | | | 1,026 | |
| Prepaid expenses and other current assets | (2,165) | | | (4,060) | |
| Other assets | (2,063) | | | 408 | |
| Notes receivable | (3,315) | | | (2,731) | |
| Accounts payable, accrued expenses and other current liabilities | (3,752) | | | (2,968) | |
| Deferred revenue | (4,163) | | | (4,264) | |
| Income tax payable/receivable | 6,398 | | | 3,301 | |
| | | |
| Operating lease liabilities | (5,426) | | | (4,708) | |
| Other liabilities | (281) | | | (198) | |
| Net cash provided by operating activities | 22,962 | | | 10,836 | |
| Cash flows from investing activities: | | | |
| | | |
| Purchase of property and equipment | (3,345) | | | (3,848) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| Net cash used in investing activities | (3,345) | | | (3,848) | |
| Cash flows from financing activities: | | | |
| | | |
| Payments on revolving credit facility | (5,000) | | | — | |
| | | |
| Payment of term loans and finance leases | (662) | | | (618) | |
| Preferred share repurchase | — | | | (11,320) | |
| Payments of preferred stock cash dividend | — | | | (1,097) | |
| Proceeds from stock option exercises | 659 | | | — | |
| Payment of payroll taxes on stock-based compensation through shares withheld | (4,332) | | | (2,054) | |
| | | |
| Net cash used in financing activities | (9,335) | | | (15,089) | |
| Change in cash, cash equivalents and restricted cash | 10,282 | | | (8,101) | |
| Cash and cash equivalents, beginning of period | 161,900 | | | 151,547 | |
| Restricted cash, beginning of period | 5,572 | | | 5,377 | |
| Cash, cash equivalents and restricted cash, beginning of period | 167,472 | | | 156,924 | |
| Cash and cash equivalents, end of period | 171,999 | | | 143,590 | |
| Restricted cash, end of period | 5,755 | | | 5,233 | |
| Cash, cash equivalents and restricted cash, end of period | $ | 177,754 | | | $ | 148,823 | |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT
(In thousands, except for Student Metrics)
(Unaudited)
Student Metrics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2024 | | | Three Months Ended December 31, 2023 |
| UTI | | Concorde | | Total | | | UTI | | Concorde | | Total |
| Total new student starts | 2,753 | | | 2,560 | | | 5,313 | | | | 2,314 | | | 2,032 | | | 4,346 | |
Year-over-year growth(1) | 19.0 | % | | 26.0 | % | | 22.3 | % | | | 17.2 | % | | 533.0 | % | | 89.4 | % |
| Average full-time active students | 15,464 | | | 9,598 | | | 25,062 | | | | 14,321 | | | 8,244 | | | 22,565 | |
| Year-over-year growth | 8.0 | % | | 16.4 | % | | 11.1 | % | | | 6.0 | % | | 6.6 | % | | 6.2 | % |
| End of period full-time active students | 15,052 | | | 9,524 | | | 24,576 | | | | 13,682 | | | 8,150 | | | 21,832 | |
| Year-over-year growth | 10.0 | % | | 16.9 | % | | 12.6 | % | | | 8.1 | % | | 6.8 | % | | 7.6 | % |
(1) Total company quarter-over-quarter comparisons are shown on an "as-reported basis." First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022.
Financial Summary by Segment and Consolidated
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2024 | | | Three Months Ended December 31, 2023 |
| | UTI | | Concorde | | Corporate | | Consolidated | | | UTI | | Concorde | | Corporate | | Consolidated |
| Revenue | | $ | 131,478 | | | $ | 69,951 | | | $ | — | | | $ | 201,429 | | | | $ | 115,373 | | | $ | 59,322 | | | $ | — | | | $ | 174,695 | |
Year-over-year growth(1) | | 14.0 | % | | 17.9 | % | | — | % | | 15.3 | % | | | 9.3 | % | | 311.1 | % | | — | % | | 45.6 | % |
| Educational services and facilities | | 59,722 | | | 40,419 | | | — | | | 100,141 | | | | 57,368 | | | 35,041 | | | — | | | 92,409 | |
| Selling, general and administrative | | 46,303 | | | 18,337 | | | 9,170 | | | 73,810 | | | | 42,915 | | | 17,153 | | | 7,987 | | | 68,055 | |
| Total operating expenses | | 106,025 | | | 58,756 | | | 9,170 | | | 173,951 | | | | 100,283 | | | 52,194 | | | 7,987 | | | 160,464 | |
Year-over-year growth(1) | | 5.7 | % | | 12.6 | % | | 14.8 | % | | 8.4 | % | | | 8.8 | % | | 244.4 | % | | (3.2) | % | | 38.9 | % |
| Net income (loss) | | 24,328 | | | 11,165 | | | (13,340) | | | 22,153 | | | | 13,597 | | | 7,173 | | | (10,381) | | | 10,389 | |
Year-over-year growth(1) | | 78.9 | % | | 55.7 | % | | (28.5) | % | | 113.2 | % | | | 6.8 | % | | 1077.2 | % | | (11.0) | % | | 292.3 | % |
(1) Total company quarter-over-quarter comparisons are shown on an "as-reported basis." First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022.
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT
(In thousands)
(Unaudited)
Major Expense Categories by Segment and Consolidated
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2024 |
| UTI | | Concorde | | Corporate | | Consolidated |
| Salaries, benefits and tax expense | $ | 51,116 | | | $ | 31,974 | | | $ | 5,096 | | | $ | 88,186 | |
| Bonus expense | 3,567 | | | 958 | | | 1,337 | | | 5,862 | |
| Stock-based compensation expense | 382 | | | 79 | | | 259 | | | 720 | |
| Total compensation and related costs | $ | 55,065 | | | $ | 33,011 | | | $ | 6,692 | | | $ | 94,768 | |
| | | | | | | |
| Advertising expense | $ | 13,677 | | | $ | 7,362 | | | $ | 189 | | | $ | 21,228 | |
| Occupancy expense, net of subleases | 7,740 | | | 5,586 | | | 170 | | | 13,496 | |
| Depreciation and amortization | 5,971 | | | 1,709 | | | 319 | | | 7,999 | |
| Professional and contract services expense | 2,698 | | | 1,339 | | | 3,727 | | | 7,764 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2023 |
| UTI | | Concorde | | Corporate | | Consolidated |
| Salaries, benefits and tax expense | $ | 45,367 | | | $ | 28,192 | | | $ | 3,563 | | | $ | 77,122 | |
| Bonus expense | 3,494 | | | 857 | | | 1,022 | | | 5,373 | |
| Stock-based compensation expense | 470 | | | 8 | | | 1,003 | | | 1,481 | |
| Total compensation and related costs | $ | 49,331 | | | $ | 29,057 | | | $ | 5,588 | | | $ | 83,976 | |
| | | | | | | |
| Advertising expense | $ | 13,353 | | | $ | 6,092 | | | $ | — | | | $ | 19,445 | |
| Occupancy expense, net of subleases | 7,607 | | | 5,798 | | | 150 | | | 13,555 | |
| Depreciation and amortization | 5,494 | | | 1,154 | | | 336 | | | 6,984 | |
| Professional and contract services expense | 2,587 | | | 1,870 | | | 2,507 | | | 6,964 | |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2024 |
| | UTI | | Concorde | | Corporate | | Consolidated |
| Net income (loss) | $ | 24,328 | | | $ | 11,165 | | | $ | (13,340) | | | $ | 22,153 | |
| Interest income | (8) | | | (40) | | | (1,711) | | | (1,759) | |
| Interest expense | 1,140 | | | 70 | | | 463 | | | 1,673 | |
| Income tax expense | — | | | — | | | 5,376 | | | 5,376 | |
| Depreciation and amortization | 5,971 | | | 1,709 | | | 319 | | | 7,999 | |
| EBITDA | 31,431 | | | 12,904 | | | (8,893) | | | 35,442 | |
| Stock-based compensation expense | 382 | | | 79 | | | 259 | | | 720 | |
| | | | | | | |
Integration-related costs for completed acquisitions(1) | — | | | — | | | (700) | | | (700) | |
| | | | | | | |
| Restructuring costs | 43 | | | — | | | — | | | 43 | |
| Adjusted EBITDA, non-GAAP | $ | 31,856 | | | $ | 12,983 | | | $ | (9,334) | | | $ | 35,505 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31, 2023 |
| | UTI | | Concorde | | Corporate | | Consolidated |
| Net income (loss) | $ | 13,597 | | | $ | 7,173 | | | $ | (10,381) | | | $ | 10,389 | |
| Interest income | (6) | | | (128) | | | (1,841) | | | (1,975) | |
| Interest expense | 1,512 | | | 83 | | | 1,276 | | | 2,871 | |
| Income tax expense | — | | | — | | | 3,160 | | | 3,160 | |
| Depreciation and amortization | 5,494 | | | 1,154 | | | 336 | | | 6,984 | |
| EBITDA | 20,597 | | | 8,282 | | | (7,450) | | | 21,429 | |
| Stock-based compensation expense | 471 | | | 8 | | | 1,003 | | | 1,482 | |
| | | | | | | |
Integration-related costs for completed acquisitions(2) | 500 | | | 462 | | | 612 | | | 1,574 | |
| Restructuring costs | 43 | | | — | | | — | | | 43 | |
| Adjusted EBITDA, non-GAAP | $ | 21,611 | | | $ | 8,752 | | | $ | (5,835) | | | $ | 24,528 | |
(1) During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022.
(2) Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration-related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability.
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow
| | | | | | | | | | | |
| | Three Months Ended December 31, |
| | 2024 | | 2023 |
| Net cash provided by operating activities, as reported | $ | 22,962 | | | $ | 10,836 | |
| Purchase of property and equipment | (3,345) | | | (3,848) | |
| Free cash flow, non-GAAP | 19,617 | | | 6,988 | |
| Adjustments: | | | |
| | | |
| | | |
| | | |
| | | |
Cash outflow for integration-related costs for completed acquisitions(1)(2) | (700) | | | 1,652 | |
Cash outflow for integration-related property and equipment(2) | — | | | 1,592 | |
| Cash outflow for restructuring costs and property and equipment | 28 | | | 5 | |
| | | |
| | | |
| | | |
| | | |
| Adjusted free cash flow, non-GAAP | $ | 18,945 | | | $ | 10,237 | |
(1) During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022.
(2) Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Cash outflow for integration-related costs for completed acquisitions” and “Cash outflow for integration-related property and equipment.” In prior quarters, these costs were presented in the lines labeled “Cash outflow for start-up costs for new campuses and programs expansion” and “Cash outflow for property and equipment for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability.
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION FOR UPDATED FISCAL 2025 GUIDANCE
(In thousands)
(Unaudited)
For each of the non-GAAP reconciliations provided for updated fiscal 2025 guidance, we are reconciling to the midpoint of the guidance range. The adjustments reflected below for updated fiscal 2025 are illustrative only and may change throughout the year, both in amount or the adjustments themselves.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA for Fiscal 2025 Guidance
| | | | | |
| Updated |
| Twelve Months Ended |
| | September 30, |
| | 2025 |
| Net income | ~ $56,000 |
| Interest (income) expense, net | ~ 1,000 |
| Income tax expense | ~ 20,200 |
| Depreciation and amortization | ~ 33,500 |
| |
| EBITDA | ~ 110,700 |
| Stock-based compensation expense | ~ 9,000 |
Acquisition related costs(1) | ~ 3,000 |
Integration-related costs for completed acquisitions(2) | ~ (700) |
| Restructuring costs | ~ 2,000 |
| Adjusted EBITDA, non-GAAP | ~124,00 |
| FY 2025 Guidance Range | $122,000 - 126,000 |
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow for Fiscal 2025 Guidance
| | | | | |
| Updated |
| | Twelve Months Ended |
| September 30, |
| | 2025 |
| Net cash provided by operating activities | ~ $113,200 |
| Purchase of property and equipment | ~ (55,000) |
| Free cash flow, non-GAAP | ~ 58,200 |
| Adjustments: | |
Cash outflow for acquisition related costs(1) | ~ 3,000 |
Cash outflow for integration-related costs for completed acquisitions(2) | ~ (700) |
| Cash outflow for restructuring costs and property and equipment | ~ 2,000 |
| Adjusted free cash flow, non-GAAP | ~ 62,500 |
| FY 2025 Guidance Range | $60,000 - 65,000 |
(1) FY25 projected spend on acquisition related costs is an estimate and is fully contingent on whether the Company pursues an acquisition this year.
(2) During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022.
Universal Technical Institute, Inc. Q1 FY2025 Investor Presentation
2 Forward-Looking Statements This presentation contains 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). Forward-looking statements may contain words such as "goal,“ "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. These statements are based on our management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Discussions containing these forward-looking statements may be found, among other places, in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” incorporated by reference from our most recent Annual Report on Form 10-K, in our subsequent Quarterly Reports on Form 10-Q and certain of our Current Reports on Form 8-K, as well as any amendments thereto, filed with the Securities and Exchange Commission (the “SEC”). In addition, statements that refer to projections of earnings, revenue, costs or other financial items in future periods; anticipated growth and trends in our business or key markets; cost synergies, growth opportunities and other potential financial and operating benefits; future growth and revenues; future economic conditions and performance; anticipated performance of curriculum; plans, objectives and strategies for future operations; and other characterizations of future events or circumstances, and all other statements that are not statements of historical fact are forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated or implied in our forward-looking statements due to a number of factors, including, but not limited to, those set forth under the section entitled “Risk Factors” in our filings with the SEC. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans’ benefit programs; continued Congressional examination of the for-profit education sector; our failure to maintain eligibility for or the ability to process federal student financial assistance; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; failure to comply with private education loan requirements; the effect of "borrower defense to repayment" regulation; the effect of postsecondary education regulatory environment as a results of U.S. federal elections; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students’ ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the Credit Agreement; increased scrutiny and changing expectations regarding our environmental, social and governance practices; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Given these risks, uncertainties and other factors, many of which are beyond our control, you should not place undue reliance on these forward-looking statements. Neither we nor any other person makes any representation as to the accuracy or completeness of these forward-looking statements and, except as required by law, we assume no obligation to update these forward-looking statements publicly, or to revise any forward-looking statements, even if new information becomes available in the future. This presentation also contains estimates and other statistical data made by independent parties, and by us, relating to market size and growth and other data about our industry and our business. This data involves several assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.
3 Leading Workforce Solutions Education Provider 22k+ Active Students 4 / 5 Grads Employed Within 1 Year1 35+ Program Offerings HealthcareTransportation and Skilled Trades $810-820M FY2025 Revenue Guidance $122-126M FY2025 Adj. EBITDA Guidance Addressing Skills Gaps Through 2 In-Demand Industry Segments 32 Campuses Nationwide Strong Financial Outlook* 1 On average, across all programs all campuses nationwide. Employment rates may vary significantly by program and by campus. See slides 18 and 20 of this presentation as well as UTI.edu/disclosures and the individual campus pages on Concorde.edu for additional information. * See slide 14 for additional details. $54-58M FY2025 Net Income Guidance “Company expecting average annual revenue growth of ~10% through FY’29 and approaching 20% adjusted EBITDA margin by FY’29” [as announced 8/5/2024] Note: For detailed reconciliations of Non-GAAP measures see the Appendix.
4 Compelling Investment Thesis 1 See Company press release 8/5/2024 “Universal Technical Institute, Inc. Announces Next Phase of ‘North Star Strategy’ to Accelerate Growth, Diversification and Optimization.” 2 Per recent years’ accreditor reporting results. See slides 18 and 20 in this presentation as well as uti.edu/disclosures and the individual campus pages on concorde.edu for additional information. Leading educational platforms serving critical, in-demand markets with favorable long-term trends Strong student outcomes2 and positive regulatory metrics driven by enterprise-wide emphasis on our students Consistently meeting or exceeding expectations with proactive management and strong business visibility Successful and ongoing transformation efforts supporting optimized operating model and margin expansion Healthy balance sheet and disciplined capital allocation plan driving continued growth and shareholder value creation Universal Technical Institute, Inc. Proven and achievable growth strategy1 built on the repeatable building blocks that have driven the Company’s successful evolution
5 Diversified Platform of In-Demand Programs Practical/Vocational/Registered Nursing Dental Hygienist/Assistant Healthcare Administration Medical Assistant Physical and Occupational Therapy AssistantsRobotics and Automation Welding Auto/Diesel/Motorcycle/Marine Technician Aviation Maintenance, Airframe and Powerplant Energy Technology and Wind Power • $486M Revenue in FY2024 • ~14k Avg Students in FY2024 • 15+ programs across Transportation, Energy, & Skilled Trades • 15 Campuses* in 9 States • In-person and Hybrid/Blended formats • $246M Revenue in FY2024 • ~8k Avg Students in FY2024 • 20+ programs in Dental, Allied Health, Nursing, Patient Care and Diagnostics • 17 Campuses in 8 States • In-person, Hybrid/Blended, and Fully Online formats Ex am pl e Pr og ra m s Ex am pl e Pr og ra m s Note: See appendix for more details by segment.* With the now-completed consolidation of the UTI and MIAT campuses in Houston, the UTI division campus count has been reduced from 16 to 15 total campuses.
6 0% 5% 10% 15% 20% 25% 30% JO B G R O W TH 2 02 3- 20 33 ANNUAL JOB OPENINGS 2023-2033 Offerings Across Transportation, Skilled Trades, and Healthcare Address Labor Market Needs 60% Practical/Vocational/Registered Nursing Dental Hygienists & Assistants Physical and Occupational Therapy Assistants Healthcare Administration Medical Assistants Ex am pl e C on co rd e H ea lth ca re P ro gr am s Ex am pl e U TI T ra ns po rta tio n, En er gy , & Sk ille d Tr ad e Pr og ra m s Wind Turbine Service Technicians Aircraft Mechanics & Technicians Welding HVACR Mechanics & Installers Auto Body Repairers Auto/Diesel Technicians Note: Projections as per the Occupational Outlook Handbook published annually by the U.S. Bureau of Labor Statistics www.bls.gov, August 2024. Job openings include those due to net employment changes and net replacements.
7 High-quality, state-of-the-industry technical and healthcare training facilities supporting successful student outcomes
8 Acquisitions and Program Expansions MIAT (closed FY2022), Concorde (closed FY2023) Marketing and Admissions Optimization Increased focus on high school and local, as well as lead conversion Program and Curricula Additions Programs launched at existing campuses, New MSATs, On-Base Military Programs, EV Curriculum Real Estate Rationalization Run-rate EBITDA improvements realized; continued emphasis on capacity utilization Blended Learning Improving student experience and space and instructor efficiencies New Campuses Bloomfield, NJ 2018; Austin, TX 2022; Miramar, FL 2022; More to come beginning FY2026 Net Income $54-$58 Adj EBITDA $122-$126 Continuing a Multi-Year Transformation Journey Note: For detailed reconciliations of Non-GAAP measures see the Appendix. Net Income ($33) Adj EBITDA ($6)
9 Delivering on Expectations and Creating Shareholder Value Share Price: ~$3.00 Market Cap: ~$70M Share Price: $28.95 Market Cap: $1.6B Note: Analyst Consensus, Share Price, and Market Capitalization figures updated as of Market close 02/04/2025 Revenue ($M) FY'22 FY'23 FY'24 FY’25E Early Estimate - - $700+ ~$800 Initial Guidance $405-$420 $595-$610 $705-$715 $800-$815 Revised Guidance $410-$420 $602-$605 $720-$730 $810-$820 Analyst Consensus $420 $603 $728 $805 Actual $419 $607 $733 Adj. EBITDA* ($M) FY'22 FY'23 FY'24 FY’25E Early Estimate - - ~$100 ~$120 Initial Guidance $50-$55 $58-$62 $98-$102 $120-$124 Revised Guidance $52-$55 $62-$64 $102-$104 $122-$126 Analyst Consensus $54 $63 $103 $122 Actual $56** $64 $103 *For detailed reconciliations of Non-GAAP measures see the Appendix. **As-reported FY2022 Adj EBITDA. Accounting for stock-based compensation which became an add-back beginning FY2023, the restated FY2022 Adj EBITDA was $60M as shown elsewhere in this presentation.
Executing Multifaceted Approach in Ongoing Expansion Efforts1 Optimize Add New Optimized Tailored Co-branded Program Expansions New Campuses Continue to add programs from our current portfolio to more existing campus locations Increase the capacity of current programs in current locations Launch new, in-demand program areas we do not currently offer Improved model for new campuses with more offerings for students and stronger financial profile for the company Geography-specific sites with a customized set of programs, for example skilled-trades-only2 locations for the UTI division in new markets, requiring less space and start-up costs 1. All initiatives contingent on requisite regulatory approvals. 2. Skilled-trades-only UTI campuses may include programs such as HVACR, Welding, Energy & Robotics but exclude Auto & Diesel, resulting in significant reductions to square footage and CapEx requirements. 3. See, for example, Company press release 8/1/2024 announcing a first-of-its-kind partnership to develop a co-branded campus with Heartland Dental. 10 Leverage deep industry relationships to partner in launching locations that will address the significant demand for our students in the workforce3
11 Robust Incremental Program and New Campus Opportunities UTI Campuses Concorde Campuses UTI & Concorde Campuses * Program not yet open at this location; some still pending regulatory approvals. † Phlebotomy only, no Sterile Processing program at this location. Note: New program additions began in FY2023 and to continue. UTI Program Additions Programs & Locations Aviation Long Beach, CA Avondale, AZ Miramar, FL Austin, TX Long Beach, CA Avondale, AZ Mooresville, NC Bloomfield, NJ Sacramento, CA* Lisle, IL Rancho Cucamonga, CA Lisle, IL Mooresville, NC Exton, PA Rancho Cucamonga, CA Welding Sacramento, CA Lisle, IL Rancho Cucamonga, CA Concorde Program Additions Programs & Locations Jacksonville, FL Cardiovascular Sonography Orlando, FL San Bernadino, CA Dental Hygiene Miramar, FL Jacksonville, FL Portland, OR Diagnostic Medical Sonography Orlando, FL Respiratory Therapy Online Option Short Programs Phlebotomy & Sterile Processing Technician Aurora, CO Miramar, FL Dallas, TX North Hollywood, CA Garden Grove, CA Orlando, FL Grand Prarie, TX Portland, OR* Jacksonville, FL San Antonio, TX Kansas City, MO Southaven, MS† Memphis, TN Tampa, FL Industrial Maintenance Wind Power HVACR Robotics & Automation Associate of Science in Nursing
$733 $810-$820 $1,100+ FY24 FY25 FY29 North Star Strategy Expected to Drive Continued Growth 12 New Campuses Leverage new, optimized models and refined program mix formats to expand geographic footprint Program Expansions Continue additions of current programs to existing campuses & increasing capacity of current programs offered New Program Offerings Acquisitions and new program development efforts provide future opportunities Optimized for Growth and Scale Investments in centralized functions, systems and processes provide platform for continued scaling of the business Acquisitions Strategic and disciplined approach for evaluating new opportunities Note: FY26-FY29 initiatives as per Company’s strategic announcement 8/5/24. Organic Growth Program Expansion Initiatives New Campuses Net Income Margin 5.7% Adj EBITDA Margin 14.0% Adj EBITDA Margin Approaching 20% Net Income Margin ~7% Adj EBITDA Margin ~15%
13 Business Outlook Fiscal 2025 Guidance
14 Fiscal 2025 Guidance $ millions except EPS 1 Beginning in FY2023, Net Income and EPS impacted by a significant effective tax rate increase due to the valuation allowance reversal in FY2022, increased interest expense, and higher D&A. 2 Beginning in FY2023 Adj EBITDA excludes stock-based compensation; FY2022 updated for comparison. 3 Beginning in FY2025, growth investments for program expansion and new campus initiatives are no longer included as add-backs in Adj EBITDA and Adj FCF calculations, affecting year-over-year comparability. Note: For detailed reconciliations of Non-GAAP measures see the Appendix.
15 FY2024-FY2025 Performance Bridges *Note: Bridges are intended to provide indicative year-over-year impacts only and are not necessarily to scale. For detailed reconciliations of Non-GAAP measures, see the Appendix.
Growth Investments1 Given the projected and ongoing nature of these strategic initiatives, effective fiscal 2025 the associated operating expense growth investments are no longer reported as one-time adjustments in the Company’s non-GAAP adjusted EBITDA calculations nor will capital expenditure growth investments be added back in adjusted Free Cash Flow calculations as they have been previously.3 1 While the Company continually invests in growth & transformation across the organization, “growth investments” in this context are specifically those expenses associated with program expansion initiatives and new campuses. 2. See Company’s press release 8/5/2024; All growth initiatives contingent on requisite regulatory approvals as applicable. 3 For detailed reconciliations of Non-GAAP measures, see the Appendix. ($ thousands) FY2025 FY2024 FY2025 FY2024 Program Expansion & New Campus Growth Investments ~$8,000 - ~$29,000 - Growth Investments (Unadjusted) ~$8,000 - ~$29,000 - Program Expansion Growth Investments - $1,559 - $5,667 Non-GAAP Add-Backs (Adjustments) - $1,559 - $5,667 Total Growth Investments ~$8,000 $1,559 ~$29,000 $5,667 Operating Expenses Capital Expenses Universal Technical Institute, Inc. Announces Next Phase of "North Star Strategy" to Accelerate Growth, Diversification and Optimization2 Strategy expected to deliver approximately 10 percent revenue CAGR and expand Adjusted EBITDA margin to nearly 20 percent through fiscal 2029 PHOENIX, August 5, 2024 -- Universal Technical Institute, Inc., a leading workforce solutions provider, today announced the next phase of its "North Star Strategy" to accelerate the company's mission to close the skilled workforce gap in America …“we expect to launch a minimum of six programs annually at our existing campuses beginning in fiscal year 2025 and open at least two new campuses each year between fiscal years 2026 and 2029…” 16
17 Appendix
18 Business Overview • 15+ programs for in-demand fields across transportation and skilled trades • Program Mix (FY2024 Revenue): – Auto/Diesel 67%, Other Transportation 12%, Welding 8%, Other Skilled Trades 8%, and Industry Training 6% • Program additions and new campus launches remain part of the division’s growth roadmap Mission Statement To serve our students, partners, and communities by providing quality education and support services for in-demand careers. Universal Technical Institute Division Overview A leading provider of transportation, energy and skilled trades technical training, driven to change the world one life at a time by helping people achieve their dreams. 1 Fiscal 2024 2 Based on most recent reporting periods. Ratios represent averages across UTI’s 4 OPEIDs, though individual program results may vary significantly from the mean. Note that effective this fiscal year, the 90/10 ratio includes all federal funding, including VA. This change is the primary driver for the yoy increase; Further, due to the COVID-19 pandemic, ED paused all loan payments from March 13, 2020 through September 30, 2023, significantly decreasing default rates. 3 Aggregated rates based on reporting in the ACCSC 2024 annual reports. Each of the ACCSC program outcomes is evaluated individually. The ACCSC reports exclude graduates from the employment rate calculation who were not available for employment because of continuing education, military service, health, incarceration, death or international student status. See UTI.edu/disclosures for further information. Summary Statistics Founded 1965 Revenue1 $486M Operating Inc.1 (Margin) $78M (16.0%) Adj. EBITDA1 (Margin) $104M (21.4%) Locations 15 Campuses in 9 States Key Metrics Avg. Enrollment1 ~14k Students Cohort Default Rate2 0% 90/10 Ratio2 ~79% Graduation Rate3 ~70% Employment Rate3 ~82% Composite Score: Calculated and reported only at an enterprise level. Reported score for FYE 9/30/24 was 2.3. Note: For detailed reconciliations of Non-GAAP measures see the Appendix.
19 UTI Division Programs by Location MSAT = Manufacturer-Specific Advanced Training (offerings vary by location) Note some programs above have been announced but are not yet open at all locations shown. 1 UTI Avondale and Motorcycle Mechanics Institute Phoenix 2 UTI Orlando and Orlando Motorcycle & Marine Mechanics Institutes Austin, Texas Avondale, Arizona1 Bloomfield, New Jersey Canton, Michigan Dallas, Texas Exton, Pennsylvania Houston, Texas Lisle, Illinois Long Beach, California Miramar, Florida Mooresville, North Carolina Orlando, Florida2 Rancho Cucamonga, California Sacramento, California Transportation Airframe & Powerplant Automotive Collision Diesel Marine Motorcycle MSAT NASCAR Tech Energy Energy Technology Wind Power Skilled Trades CNC Machining HVACR Industrial Maintenance Non-Destrictive Testing Robotics & Automation Welding
20 Business Overview • 20+ programs for in-demand healthcare professional degrees and certifications • Program Mix (FY2024 Revenue): – Dental 27%, Medical Assisting 22%, Other Allied Health 22%, Nursing 17%, Diagnostic 9%, and Health Services Management 3% • Program expansions into existing campuses will continue in FY2025 and beyond Healthcare education provider focused on preparing America’s next generation of healthcare professionals for rewarding careers in areas such as dental, patient care, nursing and allied health. 1 Fiscal 2024 2 Based on most recent reporting periods and represent approximate averages across Concorde’s 12 OPEIDs, though individual program results may vary significantly from the mean. Note that due to the COVID-19 pandemic, ED paused all loan payments from March 13, 2020 through September 30, 2023, significantly decreasing default rates. 3 Aggregated rates for the 14 campuses accredited by ACCSC based on reporting in the ACCSC 2024 annual reports and excludes the two campuses not accredited by ACCSC. Each of the ACCSC program outcomes is evaluated individually. The ACCSC reports exclude graduates from the employment rate calculation who were not available for employment because of continuing education, military service, health, incarceration, death or international student status. See disclosures on the individual campus pages on Concorde.edu for additional information. Mission Statement To prepare committed students for successful employment in a rewarding health care profession through high-caliber training, real world experience and student-centered support. . Summary Statistics Founded 1968 Revenue1 $246M Operating Inc.1 (Margin) $21M (8.4%) Adj. EBITDA1 (Margin) $28M (11.5%) Locations 17 Campuses in 8 States Key Metrics Avg. Enrollment1 ~8k Students Cohort Default Rate2 0% 90/10 Ratio2 ~76% Graduation Rate3 ~73% Employment Rate3 ~85% Concorde Career Colleges Division Overview © GeoNames, Microsoft, TomTom Powered by Bing Note: For detailed reconciliations of Non-GAAP measures see the Appendix. Composite Score: Calculated and reported only at an enterprise level. Reported score for FYE 9/30/24 was 2.3.
21 Concorde Division Programs by Location Note some programs above have been announced but are not yet open Kansas City location includes both a main campus and a smaller satellite campus Aurora, Colorado Dallas, Texas Garden Grove, California Grand Prarie, Texas Jacksonville, Florida Kansas City, Missouri Memphis, Tennessee Miramar, Florida North Hollywood, California Orlando, Florida Portland, Oregon San Antonio, Texas San Bernadino, California San Diego, California Southaven, Mississippi Tampa, Florida Online Nursing Nursing (BS) Nursing Practice (AS/AAS) Practical / Vocational Nursing (Diploma) RN to BSN Dental Dental Assisting (AS/AAS) Dental Assisting (Diploma) Dental Hygiene (AS/AAS) Diagnostic Cardiovascular Sonography (AS/AAS) Diagnostic Medical Sonography (AS/AAS) Neurodiagnostic Technology (AS/AAS) Polysomnographic Technology (Diploma) Radiologic Technology (AS/AAS) Patient Care Massage Therapy (Diploma) Occupational Therapy Assistant (AS/AAS) Physical Therapist Assistant (AS/AAS) Respiratory Therapy (AS/AAS) Surgical Technology (AS/AAS) Allied Health Dental Hygiene (BS) Healthcare Administration (BS) Medical Assistant (Diploma) Medical Assisting (AS/AAS) Medical Office Administration (Diploma) Medical Office Professional (AS/AAS) Medical Office Professional (Diploma) Pharmacy Technician (AS/AAS) Pharmacy Technician (Diploma) Phlebotomy Technician (Diploma) Sterile Processing Technician (Diploma)
22 Illustrative Organic Growth Opportunities ($10) $0 $10 $20 $30 $40 Year 0/1 Year 2 Year 3 Year 4 Year 5 New Campus* ($0.5) $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Year 0/1 Year 2 Year 3 Year 4 Year 5 HVACR (UTI) ($1) $0 $1 $2 $3 $4 $5 Year 0/1 Year 2 Year 3 Year 4 Year 5 Dental Hygiene (Concorde) Note: Financial projections based on management’s current beliefs, expectations and assumptions about future events, conditions and results. Representative figures include startup expenses and are not fully burdened (i.e., exclude allocated corporate and marketing costs and working capital considerations). Growth strategy expected to include additional program expansions and new campuses. Below examples are for directional guidance on financial impact. HVACR Program Dental Hygiene Program UTI Division Concorde Division CapEx Requirement $8M-$25M ~$0.6M ~$2.3M IRR (10-year) 30%-40%+ 70%+ 30%+ Sq Footage Requirement 35,000-115,000 4,000 7,500 Avg Students 600-1,200 ~80 ~70 New Campus *Pro forma optimized campus projections shown. Actual financial profiles will vary by location and program mix. = UTI = Concorde
23 Differentiated Industry Partnerships UTI’s relationships with more than 35 leading brands, and other industry and employer partners for both UTI and Concorde, provide unique value propositions and competitive differentiation for our schools and students. On 8/1/24 the Company announced a first-of-its-kind partnership with Heartland Dental to develop a co-branded campus for dental hygiene and dental assistant programs.
24 Non-GAAP Information
25 In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations. The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations. Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include: • Acquisition-related costs: We have excluded costs associated with both potential and announced acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. • Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance. • One-time costs associated with new campus openings: During fiscal 2022, we opened new campus locations in Austin, Texas and Miramar, Florida. We continued to incur one-time costs during fiscal 2023 for the campus opening as we completed the build-out of the remaining programs in the new facilities. We disclose any campus adjustments as direct costs (net of any corporate allocations). Outfitting a new campus requires significant facility improvements and modifications, and the purchase of technical equipment and training aids necessary for teaching our programs, the combination of which requires a significant investment by the Company which would not be considered part of normal recurring operations. • Restructuring charges: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT-Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. MIAT-Houston students who have not completed their programs before their program’s teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use, operated by UTI-Houston post-consolidation. • Facility lease accounting adjustments: During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations. To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the SEC. Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is included in the following slides and investors are encouraged to review the reconciliations. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow to the most directly comparable GAAP financial measure is unavailable to the company without unreasonable effort. The company is not able to provide a quantitative reconciliation of forward-looking adjusted EBITDA or adjusted free cash flow to the most directly comparable GAAP financial measure because certain items required for such reconciliation are uncertain, outside of the company’s control and/or cannot be reasonably predicted, including but not limited to the provision for (benefit from) income taxes. Preparation of such reconciliation would require a forward-looking statement of income and statement of cash flows prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort. Use of Non-GAAP Financial Information
26 Adjusted EBITDA Reconciliation ($ in thousands) 1. Costs related to both announced and potential acquisition targets; FY2025 projected spend is an estimate and is fully contingent on acquisition-related spend this year, if any. 2. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration-related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022. 3. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 4. In December 2023, the Company announced plans to consolidate its MIAT-Houston and UTI-Houston operations beginning in fiscal 2024 which was completed in Q1 fiscal 2025. 5. Facility lease accounting adjustments: During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations. Notes: The acquisition of Concorde closed on December 1, 2022 (FY2023), impacts comparability across periods; Expected adjustments outlined for FY2025 are illustrative only and may differ from what is realized, either in the amounts &/or the categories shown. Net income, as reported ~$56,000 $42,001 $12,322 Interest expense (income), net ~1,000 3,157 3,795 Income tax expense (benefit) ~20,200 14,229 5,765 Depreciation and amortization ~33,500 29,324 25,215 EBITDA ~$110,700 $88,711 $47,097 Stock-based compensation expense ~9,000 8,560 3,848 Acquisition-related costs(1) ~3,000 − 2,374 Integration-related costs for completed acquisitions(2) (700) 6,049 8,585 One-time costs associated with new campus openings(3) − − 2,341 Restructuring costs(4) ~2,000 185 − Facility lease accounting adjustments(5) − (650) − Adjusted EBITDA, non-GAAP ~$124,000 $102,855 $64,245 FY2025 Guidance Range $122,000-$126,000 Actual Fiscal 2024 Actual Fiscal 2023 Guidance Midpoint Fiscal 2025
27 Adjusted Free Cash Flow Reconciliation ($ in thousands) 1. In March 2023 we purchased the three primary buildings and related land at our Orlando, FL campus. 2. Costs related to both announced and potential acquisition targets; FY2025 projected spend is an estimate and is fully contingent on acquisition-related spend this year, if any. 3. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Cash outflow for integration-related costs for completed acquisition" and "Cash outflow for integration-related property and equipment." In prior quarters, these costs were presented in a line labeled “Cash outflow for start-up costs for new campuses and program expansion" and "Cash outflow for property and equipment for new campuses and program expansion." As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022. 4. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 5. In December 2023, the Company announced plans to consolidate its MIAT-Houston and UTI-Houston operations beginning in fiscal 2024 which was completed in Q1 fiscal 2025. 6. Facility lease accounting adjustments: During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations. Note: Expected adjustments outlined for FY2025 are illustrative only and may differ from what is realized, either in the amounts &/or the categories shown. Guidance Midpoint Fiscal 2025 Actual Fiscal 2024 Actual Fiscal 2023 Cash flow provided by operating activities, as reported ~$113,200 $85,895 $49,148 Purchase of property and equipment ~(55,000) (24,298) (56,685) Free cash flow, non-GAAP ~58,200 $61,597 ($7,537) Adjustments Cash outflow to purchase campuses(1) − − 26,156 Cash outflow for acquisition-related costs(2) ~3,000 − 2,347 Cash outflow for integration-related costs for completed acquisitions(3) (700) 6,196 7,768 Cash outflow for integration-related PP&E(3) − 4,330 10,530 Cash outflow for one-time costs associated with new campus openings(4) − − 2,341 Cash outflow for PP&E associated with new campus openings(4) − − 7,484 Cash outflow for restructuring costs and PP&E(5) ~2,000 632 − Cash outflow for facility lease accounting adjustments(6) − 700 − Adjusted Free Cash Flow, non-GAAP ~$62,500 $73,455 $49,089 FY2025 Guidance Range $60,000-$65,000
28
Universal Technical Institute, Inc. Q1 2025 Financial Supplement
Forward-Looking Statements This presentation contains 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). Forward-looking statements may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. These statements are based on our management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Discussions containing these forward-looking statements may be found, among other places, in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” incorporated by reference from our most recent Annual Report on Form 10-K, in our subsequent Quarterly Reports on Form 10-Q and certain of our Current Reports on Form 8-K, as well as any amendments thereto, filed with the Securities and Exchange Commission (the “SEC”). In addition, statements that refer to projections of earnings, revenue, costs or other financial items in future periods; anticipated growth and trends in our business or key markets; cost synergies, growth opportunities and other potential financial and operating benefits; future growth and revenues; future economic conditions and performance; anticipated performance of curriculum; plans, objectives and strategies for future operations; and other characterizations of future events or circumstances, and all other statements that are not statements of historical fact are forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated or implied in our forward-looking statements due to a number of factors, including, but not limited to, those set forth under the section entitled “Risk Factors” in our filings with the SEC. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans’ benefit programs; continued Congressional examination of the for-profit education sector; our failure to maintain eligibility for or the ability to process federal student financial assistance; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; failure to comply with private education loan requirements; the effect of "borrower defense to repayment" regulation; the effect of postsecondary education regulatory environment as a results of U.S. federal elections; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students’ ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the Credit Agreement; increased scrutiny and changing expectations regarding our environmental, social and governance practices; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Given these risks, uncertainties and other factors, many of which are beyond our control, you should not place undue reliance on these forward-looking statements. Neither we nor any other person makes any representation as to the accuracy or completeness of these forward-looking statements and, except as required by law, we assume no obligation to update these forward-looking statements publicly, or to revise any forward-looking statements, even if new information becomes available in the future. This presentation also contains estimates and other statistical data made by independent parties, and by us, relating to market size and growth and other data about our industry and our business. This data involves several assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. PAGE 2
Consolidated Q1 2025 Highlights Q1 2025 Revenue $201.4 million Net Income $22.2 million Adjusted EBITDA $35.5 million Diluted Earnings Per Share $0.40 PAGE 3 ■ Delivered Q1 results that exceeded expectations for all key metrics. ■ New student starts of 5,313 representing 22.3% growth versus the prior year period, with UTI driving improvements, including the impact of timing shifts between Q4’24 and Q1’25 due to FAFSA delays, which resulted in a 19.0% increase year-over-year, and Concorde benefiting from continued marketing investments, resulting in an increase of 26.0% year-over-year. ■ Revenue of $201.4 million representing 15.3% growth versus the prior year period, with UTI and Concorde achieving 14.0% and 17.9% growth, respectively. ■ Significant increases in key profitability measures year-over-year, with a Net Income improvement of 113.2% versus the prior year period and Adjusted EBITDA(1) increasing by 44.8%. ■ $246 million of total liquidity (including $74 million of revolver capacity) provides ample available funds for any potential business needs or new opportunities that may arise. ■ Increased fiscal 2025 guidance ranges across all metrics, driven by Q1 outperformance and improved visibility for the remainder of the year. ■ Reiterated confidence in previously announced(2) 5-year strategic targets with a Revenue CAGR of ~10% and Adjusted EBITDA margin approaching 20% by FY2029. 1. For a detailed reconciliation of Non-GAAP measures, see slides 14-17. 2. See Company press release dated 2/5/2025
Consolidated Q1 2025 Summary Results ($ in millions) ($ in millions, except for student data) 3 Mos. 12/31/24 3 Mos. 12/31/23 YoY Change Revenues $201.4 $174.7 15.3% Operating expenses $174.0 $160.5 8.4% Educational services and facilities $100.2 $92.4 8.4% Selling, general and administrative $73.8 $68.1 8.5% Income from operations $27.5 $14.2 93.1% Total other income (expense), net $0.1 $(0.7) (107.5)% Income tax expense $(5.4) $(3.2) 70.1% Net income $22.2 $10.4 113.2% Adjusted EBITDA(1) $35.5 $24.5 44.8% Operating cash flow $23.0 $10.8 111.9% Adjusted free cash flow(1) $18.9 $10.2 85.1% Capital expenditures $3.3 $3.8 (13.1)% PAGE 4 1. For a detailed reconciliation of Non-GAAP measures, see slides 14-17.
Consolidated Statements of Operations Trend ($ in thousands, except EPS) 3 Mos. 12/31/24 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(1) Revenues $ 201,429 $ 732,687 $ 196,358 $ 177,458 $ 184,176 $ 174,695 $ 607,408 Operating expenses: Educational services and facilities 100,141 384,529 99,355 95,277 97,488 92,409 329,870 Selling, general and administrative 73,810 289,267 70,981 74,735 75,496 68,055 256,139 Total operating expenses $ 173,951 $ 673,796 $ 170,336 $ 170,012 $ 172,984 $ 160,464 $ 586,009 Income from operations 27,478 58,891 26,022 7,446 11,192 14,231 21,399 Total other income (expense), net 51 (2,661) (652) (689) (638) (682) (3,312) Income tax expense (5,376) (14,229) (6,530) (1,772) (2,767) (3,160) (5,765) Net Income $ 22,153 $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 $ 12,322 Preferred stock dividends — (1,097) — — — (1,097) (5,069) Income available for distribution $ 22,153 $ 40,904 $ 18,840 $ 4,985 $ 7,787 $ 9,292 $ 7,253 Income allocated to participating securities $ — $ (2,855) $ — $ — $ — $ (2,855) $ (2,712) Net income available to common shareholders $ 22,153 $ 38,049 $ 18,840 $ 4,985 $ 7,787 $ 6,437 $ 4,541 Net income per share, diluted $ 0.40 $ 0.75 $ 0.34 $ 0.09 $ 0.14 $ 0.17 $ 0.13 EBITDA(2) $ 35,442 $ 88,711 $ 33,927 $ 14,842 $ 18,513 $ 21,429 $ 47,097 Total Shares Outstanding (Period End) 54,366 53,817 53,817 53,812 53,801 53,732 34,075 Weighted Average Diluted Shares Outstanding 55,406 50,851 55,404 54,951 54,770 37,439 34,479 PAGE 5 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for the twelve months ended September 30, 2023 against all future periods. 2. For a detailed reconciliation of Non-GAAP measures, see slides 14-17.
Consolidated Results of Operations Trend Percent of Revenue 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 12/31/24 9/30/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23(1) Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating Expenses: Educational services and facilities 49.8% 52.5% 50.6% 53.7% 52.9% 52.9% 54.3% Selling, general and administrative 36.6% 39.5% 36.1% 42.1% 41.0% 39.0% 42.2% Total operating expenses 86.4% 92.0% 86.7% 95.8% 93.9% 91.9% 96.5% Income from operations 13.6% 8.0% 13.3% 4.2% 6.1% 8.1% 3.5% Total other income (expense), net 0.1% (0.4)% (0.3)% (0.4)% (0.3)% (0.4)% (0.5)% Income tax expense (2.7)% (1.9)% (3.3)% (1.0)% (1.5)% (1.8)% (0.9)% Net Income 11.0% 5.7% 9.6% 2.8% 4.2% 5.9% 2.0% Preferred stock dividends —% (0.1)% —% —% —% (0.6)% (0.8)% Income available for distribution 11.0% 5.6% 9.6% 2.8% 4.2% 5.3% 1.2% Income allocated to participating securities —% (0.4)% —% —% —% (1.6)% (0.4)% Net income available to common shareholders 11.0% 5.2% 9.6% 2.8% 4.2% 3.7% 0.7% EBITDA(2) 17.6% 12.1% 17.3% 8.4% 10.1% 12.3% 7.8% PAGE 6 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for the twelve months ended September 30, 2023 against all future periods. 2. For a detailed reconciliation of Non-GAAP measures, see slides 14-17.
Quarterly Trend – Segment Key Metrics ($ in millions, except revenue per student amounts) ($ in millions, except for student data) 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 UTI UTI UTI UTI UTI Concorde Concorde Concorde Concorde Concorde New student starts 2,753 7,068 2,916 2,840 2,314 2,560 4,424 2,651 2,640 2,032 Y/Y growth/(decline)(1) 19.0% 8.7% (12.5)% 19.6% 17.2% 26.0% 13.7% 34.8% 17.2% 533.0% Average full-time active students 15,464 14,067 13,041 13,810 14,321 9,598 9,113 8,038 8,506 8,244 Average student Y/Y growth/(decline)(1) 8.0% 9.2% 13.0% 10.3% 6.0% 16.4% 13.8% 14.0% 8.9% 6.6% Revenue per student $8,500 $9,300 $9,000 $8,900 $8,100 $7,300 $7,200 $7,500 $7,200 $7,200 Y/Y growth/(decline)(1) 4.9% 4.5% 3.4% 3.5% 3.8% 1.4% 4.3% 1.4% —% 28.6% Revenues $131.5 $130.5 $117.1 $123.3 $115.4 $70.0 $65.8 $60.3 $60.9 $59.3 Y/Y growth/(decline)(1) 14.0% 13.2% 16.1% 14.7% 9.3% 18.0% 19.6% 15.0% 8.2% 311.8% Income from operations $25.5 $30.4 $14.1 $18.1 $15.1 $11.2 $6.7 $3.7 $3.2 $7.1 Margin(1) 19.4% 23.3% 12.0% 14.7% 13.1% 16.0% 10.2% 6.1% 5.3% 12.0% Adjusted EBITDA(2) $31.9 $37.5 $20.7 $24.4 $21.6 $13.0 $8.3 $5.9 $5.4 $8.8 Adjusted EBITDA margin(1) 24.2% 28.7% 17.7% 19.8% 18.7% 18.6% 12.6% 9.8% 8.9% 14.8% PAGE 7 1. Year-over-year comparisons are shown on an "as-reported basis." First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022. 2. For a detailed reconciliation of Non-GAAP measures, see slides 14-17. Note: Corporate results are not included within these metrics as they do not have any student data.
3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12/31/24 12/31/24 12/31/24 12/31/24 12/31/23 12/31/23 12/31/23 12/31/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 131,478 $ 69,951 $ — $ 201,429 $ 115,373 $ 59,322 $ — $ 174,695 Educational services and facilities 59,722 40,419 — 100,141 57,368 35,041 — 92,409 Selling, general and administrative 46,303 18,337 9,170 73,810 42,915 17,153 7,987 68,055 Total operating expenses 106,025 58,756 9,170 173,951 100,283 52,194 7,987 160,464 Income (loss) from operations 25,453 11,195 (9,170) 27,478 15,090 7,128 (7,987) 14,231 Net income (loss) 24,328 11,165 (13,340) 22,153 13,597 7,173 (10,381) 10,389 EBITDA(1) 31,431 12,904 (8,893) 35,442 20,597 8,282 (7,450) 21,429 Adjusted EBITDA(1) 31,856 12,983 (9,334) 35,505 21,611 8,752 (5,835) 24,528 Adjusted EBITDA margin 24.2% 18.6% —% 17.6% 18.7% 14.8% —% 14.0% Segment Results of Operations: First Quarter ($ in thousands) PAGE 8 1. For a detailed reconciliation of Non-GAAP measures, see slides 14-17.
Segment Expense Details: First Quarter ($ in thousands) 3 Mos. % of 3 Mos. % of 3 Mos. % of 3 Mos. % of 12/31/2024 Segment 12/31/2024 Segment 12/31/2024 Consolidated 12/31/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPENSES: Compensation and related costs $ 31,646 24.1 % $ 26,384 37.7 % $ — — % $ 58,030 28.8 % Occupancy Costs 7,611 5.8 % 5,406 7.7 % — — % 13,017 6.5 % Depreciation and amortization expense 5,939 4.5 % 1,453 2.1 % — — % 7,392 3.7 % Supplies, maintenance and student expense 7,693 5.9 % 4,093 5.9 % — — % 11,786 5.9 % Contract service expense 951 0.7 % 593 0.8 % — — % 1,544 0.8 % Other educational services and facilities expense 5,882 4.5 % 2,490 3.6 % — — % 8,372 4.2 % Total $ 59,722 45.4 % $ 40,419 57.8 % $ — — % $ 100,141 49.7 % SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: Compensation and related costs $ 23,419 17.8 % $ 6,627 9.5 % $ 6,692 3.3 % $ 36,738 18.2 % Advertising and marketing costs 13,677 10.4 % 7,362 10.5 % 189 0.1 % 21,228 10.5 % Professional and contract service expense 1,747 1.3 % 746 1.1 % 3,727 1.9 % 6,220 3.1 % Other selling general and administrative expense 7,460 5.7 % 3,602 5.1 % (1,438) (0.7) % 9,624 4.8 % Total $ 46,303 35.2 % $ 18,337 26.2 % $ 9,170 4.6 % $ 73,810 36.6 % COMPENSATION AND RELATED COST SUMMARY: Salaries, employee benefit and tax expense $ 51,116 38.9 % $ 31,974 45.7 % $ 5,096 2.5 % $ 88,186 43.8 % Bonus expense 3,567 2.7 % 958 1.4 % 1,337 0.7 % 5,862 2.9 % Stock based compensation 382 0.3 % 79 0.1 % 259 0.1 % 720 0.4 % Total compensation and related costs $ 55,065 41.9 % $ 33,011 47.2 % $ 6,692 3.3 % $ 94,768 47.0 % PAGE 9
New Student Starts Details 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Total Consolidated Total New Student Starts 5,313 11,492 5,567 5,480 4,346 10,392 Y/Y growth/(decline)(1) 22.3% 10.6% 5.0% 18.5% 89.4% 74.2% UTI Segment Total New Student Starts 2,753 7,068 2,916 2,840 2,314 6,500 Y/Y growth/(decline) 19.0% 8.7% (12.5)% 19.6% 17.2% 9.0% High School New Student Starts 737 4,436 708 631 640 4,044 Y/Y growth/(decline) 15.2% 9.7% (40.8)% 17.1% 14.3% 6.8% Adult New Student Starts 1,383 1,974 1,586 1,579 1,154 1,919 Y/Y growth/(decline) 19.8% 2.9% (1.7)% 19.6% 13.9% 11.0% Military New Student Starts 633 658 622 630 520 537 Y/Y growth/(decline) 21.7% 22.5% 18.5% 22.3% 29.7% 19.3% Concorde Segment Total New Student Starts 2,560 4,424 2,651 2,640 2,032 3,892 Y/Y growth/(decline)(1) 26.0% 13.7% 34.8% 17.2% 533.0% —% Core New Student Starts 1,474 2,183 1,434 1,433 1,254 1,912 Y/Y growth/(decline)(1)(2) 17.5% 14.2% 10.4% 4.8% 307.1% —% Clinical New Student Starts 988 2,033 1,053 1,084 657 1,906 Y/Y growth/(decline)(1) 50.4% 6.7% 64.0% 24.9% —% —% Short-Course New Student Starts 98 208 164 123 121 74 Y/Y growth/(decline)(1)(2) (19.0)% 181.1% 530.8% 623.5% 830.8% —% PAGE 10 1. Total company year-over-year comparisons are shown on an "as-reported basis." There is no year-over-year comparability for periods prior to Q1 2024 for Concorde. First quarter fiscal 2023 reflects UTI results for the full quarter and Concorde results beginning December 1, 2022. 2. Short-Course New Student Starts, previously presented within Core New Student Starts, are now presented separately and all prior periods have been restated to the new presentation.
Consolidated Balance Sheet and Cash Flow Summary ($ in thousands) At: 12/31/24 9/30/24 Cash & cash equivalents $ 171,999 $ 161,900 Restricted cash 5,755 5,572 Total current assets 230,873 221,951 PP&E (net) 262,261 264,797 Right-of-use assets for operating leases 155,666 158,778 Goodwill and intangible assets 46,466 46,688 Notes receivable, less current portion 39,558 36,267 Total assets 753,756 744,575 Operating lease liability – current 21,688 22,210 Long term debt, current portion 2,738 2,697 Total current liabilities 202,356 204,963 Operating lease liability – LT 144,409 146,831 Long-term debt 117,327 123,007 Total liabilities 473,780 484,344 Stockholders’ equity 279,976 260,231 Total liabilities & equity $ 753,756 $ 744,575 3 Mos. 12/31/24 3 Mos. 12/31/23 Net cash provided by operating activities $ 22,962 $ 10,836 Purchase of property and equipment (3,345) (3,848) Net cash used in investing activities (3,345) (3,848) Payments on revolving credit facility (5,000) — Payment of preferred stock cash dividend — (1,097) Preferred share repurchase — (11,320) Proceeds from stock option exercises 659 — Payments on term loans and finance leases (662) (618) Payment of payroll taxes on stock-based compensation through shares withheld (4,332) (2,054) Net cash used in financing activities (9,335) (15,089) Change in cash and restricted cash 10,282 (8,101) Ending balance of cash and restricted cash 177,754 148,823 PAGE 11 Note: On December 18, 2023, the Company exercised in full its right of conversion of the Company’s Series A Preferred Stock which resulted in the conversion of all outstanding Series A Preferred shares into 19,296,843 shares of Common Stock.
Earnings Per Share Trend and Guidance ($ in thousands, except EPS) Guidance Actual Actual Actual Actual Actual Actual Fiscal 2025 Midpoint 3 Mos. 12/31/24 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 Net Income ~$54,000-58,000 $ 22,153 $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 Less: Preferred stock dividend declared — — (1,097) — — — (1,097) Net income available for distribution ~$56,000 22,153 40,904 18,840 4,985 7,787 9,292 Income allocated to participating securities — — (2,855) — — — (2,855) Net income available to common shareholders ~$56,000 $ 22,153 $ 38,049 $ 18,840 $ 4,985 $ 7,787 $ 6,437 Weighted average basic shares outstanding ~54,000 53,987 49,429 53,813 53,805 53,757 36,434 Basic income per common share ~$0.98-1.06 $ 0.41 $ 0.77 $ 0.35 $ 0.09 $ 0.14 $ 0.18 Weighted average basic shares outstanding ~54,000 53,987 49,429 53,813 53,805 53,757 36,434 Dilutive effect related to employee stock plans ~1,500 1,419 1,422 1,591 1,146 1,013 1,005 Weighted average diluted shares outstanding ~55,500 55,406 50,851 55,404 54,951 54,770 37,439 Diluted income per common share ~$0.96-1.04 $ 0.40 $ 0.75 $ 0.34 $ 0.09 $ 0.14 $ 0.17 PAGE 12 Note: With the December 18, 2023 conversion of all remaining Series A preferred shares into common shares, the two-class EPS calculation method will no longer be applicable post Q1'2024.
Leverage as of 12/31/2024 Current Loan Balances $120.1M LTM EBITDA $113.8M Cash & Cash Equivalents $172.0M Gross Leverage Ratio 1.06x Net Leverage Ratio (0.46)x Debt as of 12/31/2024 Term Loan: Avondale Campus (Fifth Third Bank) Original Note Amount $31.2M Inception Date 5/12/2021 Rate* Fixed/Floating Maturity 7 years Current Note Balance $28.2M Term Loan: Lisle Campus (Valley National Bank) Original Note Amount $38.0M Inception Date 4/14/2022 Rate** Fixed/Floating Maturity 7 years Current Note Balance $36.7M Revolver (Fifth Third Bank) Total Capacity $125.0M Inception Date 11/21/2022 Rate*** Floating Maturity 5 years Current Loan Balance $51.0M 9/30/2025 proforma leverage calculation is based upon midpoint of the adjusted EBITDA guidance range and projected year-end cash balance, both of which will depend on actual company performance. For a detailed reconciliation of Non-GAAP measures, see slides 14-17. Note: Actual use of revolver in fiscal 2025 will continue to be evaluated throughout the year. Any further reduction to the outstanding revolver balance would benefit gross leverage but have no impact on net leverage. Leverage Ratios PAGE 13 *Avondale rate is 50% fixed at 1.45% + 50% Floating @ SOFR plus 2% Margin **Lisle rate is 50% fixed at 4.69% + 50% Floating @ SOFR plus 2% Margin ***Revolver rate is SOFR plus 1.75% to 2.25% Margin based on UTI's Total Leverage Proforma Leverage 9/30/2025 Projected Note Balances ~$118.1M LTM EBITDA - FY 2025 Guidance midpoint ~$124.0M Cash & Cash Equivalents (projected) ~$200.0M Gross Leverage Ratio ~0.95x Net Leverage Ratio ~(0.66)x
Use of Non-GAAP Financial Information PAGE 14 In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations. The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations. Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include: • Acquisition-related costs: We have excluded costs associated with both potential and announced acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. • Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance. • One-time costs associated with new campus openings: During fiscal 2022, we opened new campus locations in Austin, Texas and Miramar, Florida. We continued to incur one-time costs during fiscal 2023 for the campus opening as we completed the build-out of the remaining programs in the new facilities. We disclose any campus adjustments as direct costs (net of any corporate allocations). Outfitting a new campus requires significant facility improvements and modifications, and the purchase of technical equipment and training aids necessary for teaching our programs, the combination of which requires a significant investment by the Company which would not be considered part of normal recurring operations. • Restructuring charges: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT-Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. MIAT-Houston students who have not completed their programs before their program’s teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use, operated by UTI-Houston post-consolidation. • Facility lease accounting adjustments: During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations. To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the SEC. Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is included in the following slides and investors are encouraged to review the reconciliations. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow to the most directly comparable GAAP financial measure is unavailable to the company without unreasonable effort. The company is not able to provide a quantitative reconciliation of forward-looking adjusted EBITDA or adjusted free cash flow to the most directly comparable GAAP financial measure because certain items required for such reconciliation are uncertain, outside of the company’s control and/or cannot be reasonably predicted, including but not limited to the provision for (benefit from) income taxes. Preparation of such reconciliation would require a forward-looking statement of income and statement of cash flows prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort.
Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) QUARTER-TO-DATE 3 Mos. 12/31/24 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(7) Net income, as reported $ 22,153 $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 $ 12,322 Interest (income) expense, net (86) 3,157 795 709 757 896 3,795 Income tax expense 5,376 14,229 6,530 1,772 2,767 3,160 5,765 Depreciation and amortization 7,999 29,324 7,762 7,376 7,202 6,984 25,215 EBITDA $ 35,442 $ 88,711 $ 33,927 $ 14,842 $ 18,513 $ 21,429 $ 47,097 Acquisition related costs(1) — — — — — — 2,374 Integration related costs for completed acquisitions(2)(3) (700) 6,049 1,126 1,653 1,696 1,574 8,585 Start-up costs for new campuses and program expansion(4) — — — — — — 2,341 Stock-based compensation expense 720 8,560 2,862 1,863 2,353 1,482 3,848 Facility lease accounting adjustments(5) — (650) (650) — — — — Restructuring Costs(6) 43 185 44 53 45 43 — Adjusted EBITDA, non-GAAP $ 35,505 $ 102,855 $ 37,309 $ 18,411 $ 22,607 $ 24,528 $ 64,245 PAGE 15 1. Costs related to both announced and potential acquisition targets. 2. During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022. 3. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. 4. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 5. During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. 6. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 7. The acquisition of Concorde closed on December 1, 2022 impacting comparability for the twelve months ended September 30, 2023 against all future periods.
Adjusted EBITDA Reconciliation By Segment ($ in thousands) QUARTER-TO-DATE 3 Mos. 12/31/24 3 Mos. 12/31/23 3 Mos. 12/31/24 3 Mos. 12/31/23 3 Mos. 12/31/24 3 Mos. 12/31/23 UTI UTI Concorde Concorde Corporate Corporate Net income (loss), as reported $ 24,328 $ 13,597 $ 11,165 $ 7,173 $ (13,340) $ (10,381) Interest expense (income), net 1,132 1,506 30 (45) (1,248) (565) Income tax expense — — — — 5,376 3,160 Depreciation and amortization 5,971 5,494 1,709 1,154 319 336 EBITDA $ 31,431 $ 20,597 $ 12,904 $ 8,282 $ (8,893) $ (7,450) Integration related costs for completed acquisitions(1) (2) — 500 — 462 (700) 612 Stock-based compensation expense 382 471 79 8 259 1,003 Restructuring Costs(3) 43 43 — — — — Adjusted EBITDA, non-GAAP $ 31,856 $ 21,611 $ 12,983 $ 8,752 $ (9,334) $ (5,835) PAGE 16 1. During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022. 2. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” These costs were previously presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. 3. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy.
Consolidated Adjusted Free Cash Flow ($ in thousands) 3 Mos. 12/31/24 3 Mos. 12/31/23 Cash flow provided by operating activities, as reported $22,962 $10,836 Purchase of property and equipment (3,345) (3,848) Free cash flow, non-GAAP $19,617 $6,988 Adjustments: Cash (inflow) outflow for integration-related costs for completed acquisitions(1) (2) (700) 1,652 Cash outflow for integration-related property and equipment(2) — 1,592 Cash outflow for restructuring costs and property and equipment(3) 28 5 Adjusted free cash flow, non-GAAP $18,945 $10,237 1. During the three months ended December 31, 2024, the Company received $0.7 million in funds in final settlement of the outstanding escrow accounts affiliated with the purchase of Concorde on December 1, 2022. 2. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Cash outflow for integration-related costs for completed acquisitions” and “Cash outflow for integration-related property and equipment.” In prior quarters, these costs were presented in the lines labeled “Cash outflow for start-up costs for new campuses and programs expansion” and “Cash outflow for property and equipment for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. 3. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. PAGE 17
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Feb. 05, 2025 |
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Feb. 05, 2025
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- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 2 such as Street or Suite number
| Name: |
dei_EntityAddressAddressLine2 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
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