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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Universal Technical Institute Inc | NYSE:UTI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.20 | 1.30% | 15.61 | 16.03 | 15.41 | 15.59 | 1,280,545 | 21:00:03 |
SCOTTSDALE, Ariz., May 4, 2017 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of automotive technician training, reported financial results for the fiscal 2017 second quarter ended March 31, 2017.
Kim McWaters, UTI's Chairman and Chief Executive Officer, stated, "During the second quarter, we made progress on our plan to expand our program offerings, advance our smaller campus initiative and enhance our strategic partnerships with industry leading manufacturers such as INFINITI with whom we launched a first-of-its-kind advanced training program in April. In addition, we continued to improve our financial foundation and in fact, now expect to deliver full-year cost savings at the higher end of our $30 million to $40 million estimate. This represents a meaningful step in our goal to return the company to profitability while maintaining our commitments to providing a quality educational experience, meeting our partners' increasing demand for trained technicians, and growing our student population.
"While student starts were softer than expected during the first half of the year, we have adjusted our marketing strategy and further enhanced our student support services to achieve our goal of generating new start growth in the second half of the year. We are encouraged by the initial results from these efforts. Looking ahead, we will continue to balance maintaining efficient operations with investing in the business to drive long-term growth."
Financial Results for the Three-Month Period Ended March 31: 2017 Compared to 2016
Financial Results for the Six-Month Period Ended March 31: 2017 Compared to 2016
Student Metrics
Three Months Ended March 31, |
Six Months Ended March 31, |
|||||||
2017 |
2016 |
2017 |
2016 |
|||||
(Rounded to hundreds) |
||||||||
Total starts |
1,900 |
2,300 |
3,200 |
4,100 |
||||
Average undergraduate full-time student enrollment |
10,900 |
12,200 |
11,400 |
12,700 |
||||
End of period undergraduate full-time student enrollment |
10,300 |
11,700 |
10,300 |
11,700 |
||||
Updated Fiscal 2017 Outlook
Conference Call
Management will hold a conference call to discuss the 2017 second quarter results on Thursday, May 4th at 1:30 p.m. PDT (4:30 p.m. EDT). This call can be accessed by dialing 412-317-6790 or 844-881-0138. Investors are invited to listen to the call live at http://uti.investorroom.com/. Please access the website at least 10 minutes early to register, download and install any necessary audio software. A replay of the call will be available on the Investor Relations section of UTI's website for 60 days or the replay can be accessed through May 15, 2017 by dialing 412-317-0088 or 877-344-7529 and entering pass code 10106031.
Use of Non-GAAP Financial Information
This press release and the related conference call contains non-GAAP (Generally Accepted Accounting Principles) financial measures, which are intended to supplement, but not substitute for, the most directly comparable GAAP measures. Management chooses to disclose to investors, these non-GAAP financial measures because they provide an additional analytical tool to clarify the results from operations and helps to identify underlying trends. Additionally, such measures help compare the Company's performance on a consistent basis across time periods. To obtain a complete understanding of the Company's performance these measures should be examined in connection with net income (loss), 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. Since the items excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered an alternative to net income as a measure of the Company's operating performance or profitability. 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 calculate non-GAAP financial measures differently than UTI does, limiting their usefulness as a comparative measure across companies. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures are included below.
Safe Harbor Statement
All statements contained herein, other than statements of historical fact, are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, as amended. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the Company's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by UTI, increased investment in management and capital resources, the effectiveness of the recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic conditions of the Company and other risks that are described from time to time in the Company's 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 Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. Except as required by law, the Company expressly disclaims any obligation to publicly update any forward-looking statements whether as a result of new information, future events, changes in expectations, any changes in events, conditions or circumstances, or otherwise.
About Universal Technical Institute, Inc.
Headquartered in Scottsdale, Arizona, Universal Technical Institute, Inc. (NYSE: UTI) is the leading provider of post-secondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. With more than 200,000 graduates in its 52-year history, UTI offers undergraduate degree and diploma programs at 12 campuses across the United States, as well as manufacturer-specific training programs at dedicated training centers. Through its campus-based school system, UTI provides specialized post-secondary education programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NASCAR Tech). For more information visit www.uti.edu.
Company Contact:
Bryce Peterson
Chief Financial Officer
Universal Technical Institute, Inc.
(623) 445-0993
Investor Relations Contact:
Becky Herrick/Kirsten Chapman
LHA Investor Relations
(415) 433-3777
UTI@lhai.com
(Tables Follow)
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED) | ||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenues |
$ |
82,497 |
$ |
88,192 |
$ |
166,676 |
$ |
177,965 |
||||||||
Operating expenses: |
||||||||||||||||
Educational services and facilities |
44,834 |
49,770 |
91,988 |
99,422 |
||||||||||||
Selling, general and administrative |
36,976 |
44,192 |
72,614 |
86,506 |
||||||||||||
Total operating expenses |
81,810 |
93,962 |
164,602 |
185,928 |
||||||||||||
Income (loss) from operations |
687 |
(5,770) |
2,074 |
(7,963) |
||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense, net |
(712) |
(797) |
(1,461) |
(1,614) |
||||||||||||
Equity in earnings of unconsolidated affiliates |
125 |
104 |
253 |
239 |
||||||||||||
Other income |
315 |
124 |
435 |
378 |
||||||||||||
Total other expense, net |
(272) |
(569) |
(773) |
(997) |
||||||||||||
Income (loss) before income taxes |
415 |
(6,339) |
1,301 |
(8,960) |
||||||||||||
Income tax expense |
2,145 |
25,663 |
4,755 |
24,722 |
||||||||||||
Net loss |
$ |
(1,730) |
$ |
(32,002) |
$ |
(3,454) |
$ |
(33,682) |
||||||||
Preferred stock dividends |
1,295 |
— |
2,618 |
— |
||||||||||||
Loss available for distribution |
$ |
(3,025) |
$ |
(32,002) |
$ |
(6,072) |
$ |
(33,682) |
||||||||
Loss per share: |
||||||||||||||||
Net loss per share - basic |
$ |
(0.12) |
$ |
(1.32) |
$ |
(0.25) |
$ |
(1.39) |
||||||||
Net loss per share - diluted |
$ |
(0.12) |
$ |
(1.32) |
$ |
(0.25) |
$ |
(1.39) |
||||||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic |
24,666 |
24,270 |
24,645 |
24,252 |
||||||||||||
Diluted |
24,666 |
24,270 |
24,645 |
24,252 |
||||||||||||
Cash dividends declared per common share |
$ |
— |
$ |
0.02 |
$ |
— |
$ |
0.04 |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) | ||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Net loss |
$ |
(1,730) |
$ |
(32,002) |
$ |
(3,454) |
$ |
(33,682) |
||||||||
Other comprehensive loss (net of tax): |
||||||||||||||||
Equity interest in investee's unrealized losses on hedging derivatives, net of taxes |
(6) |
— |
(9) |
(1) |
||||||||||||
Comprehensive loss |
$ |
(1,736) |
$ |
(32,002) |
$ |
(3,463) |
$ |
(33,683) |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
March 31, 2017 |
Sept. 30, 2016 | |||||||
Assets |
(In thousands) | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
88,984 |
$ |
119,045 |
||||
Restricted cash |
14,702 |
5,956 |
||||||
Investments, current portion |
8,984 |
1,691 |
||||||
Receivables, net |
9,972 |
15,253 |
||||||
Prepaid expenses and other current assets |
20,347 |
20,004 |
||||||
Total current assets |
142,989 |
161,949 |
||||||
Investments, less current portion |
724 |
— |
||||||
Property and equipment, net |
109,877 |
114,033 |
||||||
Goodwill |
9,005 |
9,005 |
||||||
Other assets |
12,058 |
12,172 |
||||||
Total assets |
$ |
274,653 |
$ |
297,159 |
||||
Liabilities and Shareholders' Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ |
34,719 |
$ |
42,545 |
||||
Deferred revenue |
35,347 |
44,491 |
||||||
Accrued tool sets |
2,972 |
2,938 |
||||||
Financing obligation, current |
1,007 |
913 |
||||||
Income tax payable |
427 |
— |
||||||
Other current liabilities |
4,003 |
3,673 |
||||||
Total current liabilities |
78,475 |
94,560 |
||||||
Deferred tax liabilities, net |
3,141 |
3,141 |
||||||
Deferred rent liability |
8,014 |
8,987 |
||||||
Financing obligation |
42,606 |
43,141 |
||||||
Other liabilities |
10,423 |
10,716 |
||||||
Total liabilities |
142,659 |
160,545 |
||||||
Commitments and contingencies |
||||||||
Shareholders' equity: |
||||||||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,609,900 shares issued and 24,745,003 shares outstanding as of March 31, 2017 and 31,489,331 shares issued and 24,624,434 shares outstanding as of September 30, 2016 |
3 |
3 |
||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 700,000 shares of Series A Convertible Preferred Stock issued and outstanding as of March 31, 2017 and September 30, 2016, liquidation preference of $100 per share |
— |
— |
||||||
Paid-in capital - common |
184,043 |
182,615 |
||||||
Paid-in capital - preferred |
68,853 |
68,820 |
||||||
Treasury stock, at cost, 6,864,897 shares as of March 31, 2017 and September 30, 2016 |
(97,388) |
(97,388) |
||||||
Retained deficit |
(23,526) |
(17,454) |
||||||
Accumulated other comprehensive income |
9 |
18 |
||||||
Total shareholders' equity |
131,994 |
136,614 |
||||||
Total liabilities and shareholders' equity |
$ |
274,653 |
$ |
297,159 |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Six Months Ended March 31, | ||||||||
2017 |
2016 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ |
(3,454) |
$ |
(33,682) |
||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
7,172 |
7,682 |
||||||
Amortization of assets subject to financing obligation |
1,341 |
1,341 |
||||||
Amortization of discount on held-to-maturity investments |
12 |
336 |
||||||
Bad debt expense |
327 |
752 |
||||||
Stock-based compensation |
1,435 |
2,286 |
||||||
Deferred income taxes |
— |
27,928 |
||||||
Equity in earnings of unconsolidated affiliates |
(253) |
(239) |
||||||
Training equipment credits earned, net |
(409) |
(348) |
||||||
(Gain) loss on disposal of property and equipment |
(6) |
100 |
||||||
Changes in assets and liabilities: |
||||||||
Restricted cash |
(11,102) |
34 |
||||||
Receivables |
2,748 |
9,000 |
||||||
Prepaid expenses and other current assets |
(265) |
(957) |
||||||
Other assets |
(161) |
(68) |
||||||
Accounts payable and accrued expenses |
(7,881) |
(6,135) |
||||||
Deferred revenue |
(9,144) |
(5,263) |
||||||
Income tax payable/receivable |
2,634 |
(4,648) |
||||||
Accrued tool sets and other current liabilities |
574 |
(184) |
||||||
Deferred rent liability |
(973) |
(910) |
||||||
Other liabilities |
(229) |
490 |
||||||
Net cash used in operating activities |
(17,634) |
(2,485) |
||||||
Cash flows from investing activities: |
||||||||
Purchase of property and equipment |
(3,929) |
(4,905) |
||||||
Proceeds from disposal of property and equipment |
1 |
— |
||||||
Purchase of investments |
(9,671) |
— |
||||||
Proceeds received upon maturity of investments |
1,642 |
19,320 |
||||||
Acquisitions |
— |
(1,500) |
||||||
Investment in unconsolidated affiliates |
— |
(1,000) |
||||||
Capitalized costs for intangible assets |
— |
(250) |
||||||
Return of capital contribution from unconsolidated affiliate |
241 |
240 |
||||||
Restricted cash: proprietary loan program |
2,355 |
3,393 |
||||||
Net cash provided by (used in) investing activities |
(9,361) |
15,298 |
||||||
Cash flows from financing activities: |
||||||||
Payment of common stock cash dividends |
— |
(1,457) |
||||||
Payment of preferred stock cash dividend |
(2,618) |
— |
||||||
Payment of financing obligation |
(441) |
(354) |
||||||
Payment of payroll taxes on stock-based compensation through shares withheld |
(7) |
(7) |
||||||
Net cash used in financing activities |
(3,066) |
(1,818) |
||||||
Net increase (decrease) in cash and cash equivalents |
(30,061) |
10,995 |
||||||
Cash and cash equivalents, beginning of period |
119,045 |
29,438 |
||||||
Cash and cash equivalents, end of period |
$ |
88,984 |
$ |
40,433 |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||
Reconciliation of Net Loss to EBITDA | ||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Net loss |
$ |
(1,730) |
$ |
(32,002) |
$ |
(3,454) |
$ |
(33,682) |
||||||||
Interest expense, net |
712 |
797 |
1,461 |
1,614 |
||||||||||||
Income tax expense |
2,145 |
25,663 |
4,755 |
24,722 |
||||||||||||
Depreciation and amortization |
4,522 |
4,940 |
9,161 |
9,625 |
||||||||||||
EBITDA |
$ |
5,649 |
$ |
(602) |
$ |
11,923 |
$ |
2,279 |
Reconciliation of Loss Per Share Impact of Deferred Tax Valuation Allowance | ||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Loss available for distribution |
$ |
(3,025) |
$ |
(32,002) |
$ |
(6,072) |
$ |
(33,682) |
||||||||
Income tax expense related to increase in deferred tax asset valuation allowance |
1,874 |
27,949 |
4,013 |
27,949 |
||||||||||||
Loss available for distribution, adjusted for deferred tax asset valuation allowance |
$ |
(1,151) |
$ |
(4,053) |
$ |
(2,059) |
$ |
(5,733) |
||||||||
Diluted loss per share, as reported |
$ |
(0.12) |
$ |
(1.32) |
$ |
(0.25) |
$ |
(1.39) |
||||||||
Diluted loss per share, adjusted for deferred tax asset valuation allowance |
$ |
(0.05) |
$ |
(0.17) |
$ |
(0.08) |
$ |
(0.24) |
||||||||
Diluted weighted average shares outstanding |
24,666 |
24,270 |
24,645 |
24,252 |
UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES SELECTED SUPPLEMENTAL INFORMATION (UNAUDITED) | ||||||||||||||||
Selected Supplemental Financial Information | ||||||||||||||||
Three Months Ended March 31, |
Six Months Ended March 31, | |||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
(In thousands) | ||||||||||||||||
Salaries expense |
$ |
34,928 |
$ |
39,997 |
$ |
70,724 |
$ |
79,178 |
||||||||
Employee benefits and tax |
7,264 |
8,583 |
14,768 |
17,022 |
||||||||||||
Bonus expense |
295 |
1,371 |
2,081 |
2,667 |
||||||||||||
Stock-based compensation |
937 |
1,375 |
1,485 |
2,286 |
||||||||||||
Total compensation and related costs |
$ |
43,424 |
$ |
51,326 |
$ |
89,058 |
$ |
101,153 |
||||||||
Occupancy expense |
$ |
9,484 |
$ |
9,593 |
$ |
19,032 |
$ |
19,322 |
||||||||
Depreciation and amortization expense |
$ |
4,522 |
$ |
4,940 |
$ |
9,161 |
$ |
9,625 |
||||||||
Bad debt expense |
$ |
78 |
$ |
270 |
$ |
327 |
$ |
752 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/universal-technical-institute-reports-fiscal-year-2017-second-quarter-results-300451900.html
SOURCE Universal Technical Institute, Inc.
Copyright 2017 PR Newswire
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