Universal Technical Institute Reports Fiscal Year 2024 Second Quarter Results
Raised Fiscal 2024 Guidance for New Student Starts, Revenue and Profitability
Introducing Initial Revenue and Profitability Projections for Fiscal 2025
- Revenue of
$184.2 million representing 12.4% growth versus the prior year period, with UTI and Concorde achieving 14.7% and 8.2% growth versus the prior year period, respectively. - Total new student starts of 5,480 representing 18.5% growth versus the prior year period, with UTI and Concorde achieving 19.6% and 17.2% growth versus the prior year period, respectively.
- Net income of
$7.8 million and adjusted EBITDA(1) of$22.6 million , both increasing considerably versus the prior year period. - Full year guidance raised for new student starts, revenue, net income, diluted earnings per share and adjusted EBITDA(1).
- Initial projections for fiscal 2025 indicate revenue of nearly
$800 million and adjusted EBITDA margin of approximately 15%, representing at least 100 basis points of adjusted EBITDA(1) margin expansion versus fiscal 2024.
"We maintained our momentum in the second quarter, demonstrating strong market demand across our growing program footprint," said
"In addition to our progress with growth and optimization, we expect to continue advancing our organic diversification initiatives in the second half of fiscal 2024 and beyond. This work includes the consideration of expanding our campus footprint into new geographies; continuing to expand the reach of our existing programs and explore the addition of new program offerings to our portfolio; and continuing to add new industry relationships to our partner base. In addition, we continue to evaluate potential inorganic growth opportunities to enhance our multi-divisional foundation. Leveraging these strategic pathways, we aim to continually strengthen our position as a leading workforce solutions provider."
Financial Results for the Three-Month Period Ended
- Revenues increased 12.4% to
$184.2 million compared to$163.8 million primarily due to the growth in both UTI and Concorde new student starts. - Operating expenses rose by 9.6% to
$173.0 million , compared to$157.9 million primarily due to an increase in expenses associated with new program launches at both UTI and Concorde. - Operating income increased 88.1% to
$11.2 million , compared to$5.9 million . - Net income increased 123.8% to
$7.8 million , compared to$3.5 million . - Basic and diluted EPS were
$0.14 , both compared to$0.04 . - Adjusted EBITDA(1) increased 17.8% to
$22.6 million , compared to$19.2 million .
UTI
- Revenues of
$123.3 million , an increase of$15.8 million , or 14.7%, from the prior period revenues of$107.6 million , due to growth in new student starts. - Operating expenses were
$105.2 million compared to$97.8 million . The increase was primarily due to expenses incurred during the current year for new program launches during the last two fiscal quarters in 2023 and in 2024. - Adjusted EBITDA(1) was
$24.4 million compared to$17.4 million . - New student starts increased from the prior year by 19.6%, and average undergraduate full-time active students increased by 10.3%.
Concorde
- Revenues of
$60.9 million , an increase of$4.6 million , or 8.2%, from the prior period revenues of$56.3 million due to growth in new student starts. - Operating expenses were
$57.6 million compared to$50.1 million . The increase was primarily due to higher revenues from higher student starts and additional expenses incurred during the current year related to new program launches. - Adjusted EBITDA(1) was
$5.4 million compared to$8.4 million . - New student starts increased from the prior year by 17.2%, and average undergraduate full-time active students increased by 8.9%.
"During the second quarter, we performed at or above our expectations across our key metrics, delivering double-digit year-over-year growth in revenue, profitability, and new student starts," said
"Based on our current momentum and strategic execution, we are raising our fiscal year 2024 new student start, revenue and profitability guidance. Additionally, given the visibility we have into the remainder of the year and the strength of our underlying operating model, we are introducing initial projections for fiscal year 2025, where we are estimating revenue of nearly
Financial Results for the Six-Month Period Ended
- Revenues increased 26.4% to
$358.9 million compared to$283.8 million primarily due to the growth in UTI new student starts and the inclusion of two additional months of revenue for Concorde(2). - Operating expenses rose by 22.0% to
$333.4 million , compared to$273.4 million primarily due to the inclusion of two additional months of expenses for Concorde(2). - Operating income increased 144.5% to
$25.4 million , compared to$10.4 million . - Net income increased 196.6% to
$18.2 million compared to$6.1 million . - Basic and diluted EPS were
$0.32 and$0.31 compared to$0.07 and$0.07 , respectively. - Adjusted EBITDA(1) increased 40.2% to
$47.1 million compared to$33.6 million .
UTI
- Revenues of
$238.7 million , an increase of$25.6 million , or 12.0%, from the prior period revenues of$213.1 million , due to higher student starts. - Operating expenses were
$205.5 million compared to$189.9 million . The increase was primarily due to expenses incurred during the current year for new program launches during the last two fiscal quarters of 2023 and in 2024. - Adjusted EBITDA(1) was
$46.0 million compared to$37.6 million . - New student starts increased from the prior year by 18.5%, and average undergraduate full-time active students increased by 8.1%.
Concorde(2)
- Revenues of
$120.2 million , an increase of$49.5 million , or 70.0%, from the prior period revenues of$70.7 million due to the inclusion of two additional months of revenue during the current year, along with growth in new student starts. - Operating expenses were
$109.8 million compared to$65.2 million . The increase was due to the inclusion of two additional months of expenses during the current year and additional expenses related to higher average undergraduate students and program launches. - Adjusted EBITDA(1) was
$14.2 million compared to$8.3 million . - New student starts increased from the prior year by 81.6%, and average undergraduate full-time active students increased by 7.7%.
(1) |
See the "Use of Non-GAAP Financial Information" below. For a detailed reconciliation of the non-GAAP measures, see the tables following the earnings release. |
(2) |
The six-months ended |
Balance Sheet and Liquidity
At
For the Company's most recent investor presentation and quarterly financial supplement, please see its investor relations website at https://investor.uti.edu.
Updated Fiscal 2024 Financial Outlook
|
Previous |
|
Updated |
|
FY 2024 |
|
FY 2024 |
($ in millions, except EPS) |
Guidance |
|
Guidance |
New student starts |
24,500 - 25,500 |
|
25,500 - 26,500 |
Revenue |
|
|
|
Net Income |
|
|
|
Diluted EPS |
|
|
|
Adjusted EBITDA(3) |
|
|
|
Adjusted free cash flow(3)(4) |
|
|
|
(3) |
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. |
(4) |
For FY 2024, assumes |
Conference Call
Management will hold a conference call to discuss the financial results for the fiscal 2024 second quarter ended
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
Use of Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with
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:
- 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 andMiramar, 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 twoHouston, 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 inNovember 2021 , will begin operating under the UTI brand and implement a phased teach-out agreement starting inMay 2024 . Both facilities will remain in use post-consolidation. - Costs related to the purchase of our campuses: We lease the majority of our campus locations. Over the past three years due to shifts within the real estate environment, we have been presented with the opportunity to purchase three of our campus locations. These purchases are significant capital expenditures and 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
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 2024 guidance for new student start growth (decline), 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 low-to-mid single 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 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; 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
Social Media Disclosure
About
Company Contact:
Chief Financial Officer
(623) 445-9365
Media Contact:
Vice President,
(202) 549-0534
saspey@uti.edu
Investor Relations Contact:
(949) 574-3860
UTI@gateway-grp.com
(Tables Follow)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Six Months Ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues |
$ 184,176 |
|
$ 163,820 |
|
$ 358,871 |
|
$ 283,824 |
Operating expenses: |
|
|
|
|
|
|
|
Educational services and facilities |
97,488 |
|
86,930 |
|
189,897 |
|
148,338 |
Selling, general and administrative |
75,496 |
|
70,941 |
|
143,551 |
|
125,089 |
Total operating expenses |
172,984 |
|
157,871 |
|
333,448 |
|
273,427 |
Income from operations |
11,192 |
|
5,949 |
|
25,423 |
|
10,397 |
Other (expense) income: |
|
|
|
|
|
|
|
Interest income |
1,427 |
|
1,805 |
|
3,402 |
|
2,628 |
Interest expense |
(2,184) |
|
(2,637) |
|
(5,055) |
|
(4,060) |
Other income (expense), net |
119 |
|
126 |
|
333 |
|
451 |
Total other expense, net |
(638) |
|
(706) |
|
(1,320) |
|
(981) |
Income before income taxes |
10,554 |
|
5,243 |
|
24,103 |
|
9,416 |
Income tax expense |
(2,767) |
|
(1,763) |
|
(5,927) |
|
(3,288) |
Net income |
$ 7,787 |
|
$ 3,480 |
|
$ 18,176 |
|
$ 6,128 |
Preferred stock dividends |
— |
|
(1,251) |
|
(1,097) |
|
(2,528) |
Income available for distribution |
7,787 |
|
2,229 |
|
17,079 |
|
3,600 |
Income allocated to participating securities |
— |
|
(833) |
|
(2,855) |
|
(1,348) |
Net income available to common shareholders |
$ 7,787 |
|
$ 1,396 |
|
$ 14,224 |
|
$ 2,252 |
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
Net income per share - basic |
$ 0.14 |
|
$ 0.04 |
|
$ 0.32 |
|
$ 0.07 |
Net income per share - diluted |
$ 0.14 |
|
$ 0.04 |
|
$ 0.31 |
|
$ 0.07 |
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding(1): |
|
|
|
|
|
|
|
Basic |
53,757 |
|
33,999 |
|
45,048 |
|
33,901 |
Diluted |
54,770 |
|
34,553 |
|
46,050 |
|
34,477 |
(1) |
On |
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value and per share amounts) (Unaudited) |
|||
|
|||
|
|
|
|
Assets |
|
||
Cash and cash equivalents |
$ 116,099 |
|
$ 151,547 |
Restricted cash |
4,446 |
|
5,377 |
Receivables, net |
24,294 |
|
25,161 |
Notes receivable, current portion |
6,163 |
|
5,991 |
Prepaid expenses |
12,200 |
|
9,412 |
Other current assets |
7,032 |
|
7,497 |
Total current assets |
170,234 |
|
204,985 |
Property and equipment, net |
263,538 |
|
266,346 |
|
28,459 |
|
28,459 |
Intangible assets, net |
18,627 |
|
18,975 |
Notes receivable, less current portion |
34,909 |
|
30,672 |
Right-of-use assets for operating leases |
169,626 |
|
176,657 |
Deferred tax asset, net |
4,556 |
|
3,768 |
Other assets |
12,139 |
|
10,823 |
Total assets |
$ 702,088 |
|
$ 740,685 |
Liabilities and Shareholders' Equity |
|
|
|
Accounts payable and accrued expenses |
$ 70,079 |
|
$ 69,941 |
Deferred revenue |
67,599 |
|
85,738 |
Operating lease liability, current portion |
22,841 |
|
22,481 |
Long-term debt, current portion |
2,600 |
|
2,517 |
Other current liabilities |
3,323 |
|
4,023 |
Total current liabilities |
166,442 |
|
184,700 |
Deferred tax liabilities, net |
663 |
|
663 |
Operating lease liability |
158,448 |
|
165,026 |
Long-term debt |
139,317 |
|
159,600 |
Other liabilities |
4,605 |
|
4,729 |
Total liabilities |
469,475 |
|
514,718 |
Commitments and contingencies |
|
|
|
Shareholders' equity: |
|
|
|
Common stock, |
5 |
|
3 |
Preferred stock, |
— |
|
— |
Paid-in capital - common |
216,359 |
|
151,439 |
Paid-in capital - preferred |
— |
|
66,481 |
|
(365) |
|
(365) |
Retained earnings |
14,684 |
|
5,946 |
Accumulated other comprehensive income |
1,930 |
|
2,463 |
Total shareholders' equity |
232,613 |
|
225,967 |
Total liabilities and shareholders' equity |
$ 702,088 |
|
$ 740,685 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||
|
||||
|
|
Six Months Ended |
||
|
|
2024 |
|
2023 |
Cash flows from operating activities: |
|
|
|
|
Net income |
|
$ 18,176 |
|
$ 6,128 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
Depreciation and amortization |
|
14,186 |
|
11,994 |
Amortization of right-of-use assets for operating leases |
|
10,952 |
|
10,073 |
Bad debt expense |
|
3,189 |
|
2,071 |
Stock-based compensation |
|
3,835 |
|
3,282 |
Deferred income taxes |
|
(314) |
|
2,479 |
Training equipment credits earned, net |
|
962 |
|
47 |
Unrealized loss on interest rate swap |
|
(533) |
|
(664) |
Other (gains) losses, net |
|
83 |
|
(196) |
Changes in assets and liabilities: |
|
|
|
|
Receivables |
|
(1,533) |
|
(3,895) |
Prepaid expenses |
|
(4,469) |
|
(898) |
Other assets |
|
(1,088) |
|
2,709 |
Notes receivable |
|
(4,409) |
|
(579) |
Accounts payable, accrued expenses and other current liabilities |
|
(2,140) |
|
(16,446) |
Deferred revenue |
|
(18,139) |
|
(9,554) |
Operating lease liability |
|
(10,139) |
|
(10,745) |
Other liabilities |
|
(274) |
|
(121) |
Net cash provided by (used in) operating activities |
|
8,345 |
|
(4,315) |
Cash flows from investing activities: |
|
|
|
|
Cash paid for acquisitions, net of cash acquired |
|
— |
|
(16,973) |
Purchase of property and equipment |
|
(9,759) |
|
(38,641) |
Proceeds from maturities of held-to-maturity securities |
|
— |
|
29,000 |
Net cash used in investing activities |
|
(9,759) |
|
(26,614) |
Cash flows from financing activities: |
|
|
|
|
Proceeds from revolving credit facility |
|
20,000 |
|
90,000 |
Payments on revolving credit facility |
|
(39,000) |
|
— |
Debt issuance costs for long-term debt |
|
— |
|
(484) |
Payment of preferred stock cash dividend |
|
(1,097) |
|
(2,528) |
Payments on term loans and finance leases |
|
(1,246) |
|
(715) |
Payment of payroll taxes on stock-based compensation through shares withheld |
|
(2,119) |
|
(748) |
Preferred share repurchase |
|
(11,503) |
|
— |
Net cash (used in) provided by financing activities |
|
(34,965) |
|
85,525 |
Change in cash, cash equivalents and restricted cash |
|
(36,379) |
|
54,596 |
Cash and cash equivalents, beginning of period |
|
151,547 |
|
66,452 |
Restricted cash, beginning of period |
|
5,377 |
|
3,544 |
Cash, cash equivalents and restricted cash, beginning of period |
|
156,924 |
|
69,996 |
Cash and cash equivalents, end of period |
|
116,099 |
|
120,579 |
Restricted cash, end of period |
|
4,446 |
|
4,013 |
Cash, cash equivalents and restricted cash, end of period |
|
$ 120,545 |
|
$ 124,592 |
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT (In thousands, except for Student Metrics) (Unaudited) |
||||||||||||
|
||||||||||||
Student Metrics |
||||||||||||
|
||||||||||||
|
Three Months Ended |
|
|
Three Months Ended |
||||||||
|
UTI |
|
Concorde |
|
Total |
|
|
UTI |
|
Concorde |
|
Total |
Total new student starts |
2,840 |
|
2,640 |
|
5,480 |
|
|
2,374 |
|
2,252 |
|
4,626 |
Year-over-year growth (decline) |
19.6 % |
|
17.2 % |
|
18.5 % |
|
|
4.4 % |
|
— % |
|
— % |
Average undergraduate full-time active students |
13,810 |
|
8,506 |
|
22,316 |
|
|
12,516 |
|
7,808 |
|
20,324 |
Year-over-year growth (decline) |
10.3 % |
|
8.9 % |
|
9.8 % |
|
|
(3.0) % |
|
— % |
|
— % |
End of period undergraduate full-time active students |
13,590 |
|
8,487 |
|
22,077 |
|
|
12,104 |
|
7,708 |
|
19,812 |
Year-over-year growth (decline) |
12.3 % |
|
10.1 % |
|
11.4 % |
|
|
(2.9) % |
|
— % |
|
— % |
|
Six Months Ended |
|
|
Six Months Ended |
||||||||
|
UTI |
|
Concorde |
|
Total |
|
|
UTI |
|
Concorde |
|
Total |
Total new student starts |
5,154 |
|
4,672 |
|
9,826 |
|
|
4,348 |
|
2,573 |
|
6,921 |
Year-over-year growth (decline) |
18.5 % |
|
81.6 % |
|
42.0 % |
|
|
2.4 % |
|
— % |
|
— % |
Average undergraduate full-time active students |
14,065 |
|
8,375 |
|
22,440 |
|
|
13,014 |
|
7,773 |
|
20,787 |
Year-over-year growth (decline) |
8.1 % |
|
7.7 % |
|
8.0 % |
|
|
(2.3) % |
|
— % |
|
— % |
End of period undergraduate full-time active students |
13,590 |
|
8,487 |
|
22,077 |
|
|
12,104 |
|
7,708 |
|
19,812 |
Year-over-year growth (decline) |
12.3 % |
|
10.1 % |
|
11.4 % |
|
|
(2.9) % |
|
— % |
|
— % |
Financial Summary by Segment and Consolidated
During fiscal 2023, in coordination with the integration of Concorde, we began to reassess our operating model to determine the organizational structure that would best help the Company achieve future growth goals and optimally support the business. Beginning in fiscal 2024, we have executed an internal reorganization to fully transition our operating and reporting model to support a multi-divisional business. As part of the internal reorganization, each of the reportable segments now have dedicated accounting, finance, information technology, and human resources teams. Additionally, human resources and information technology costs that benefit the entire organization are now allocated across UTI, Concorde and Corporate each period based upon relative headcount. As a result, additional costs have moved from Corporate into the UTI segment and to a lesser extent the Concorde segment as resources were redirected to support the segment's objectives. Due to these changes in allocation methodology, the prior year segment amounts have been recast for comparability to the current year presentation.
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT (In thousands) (Unaudited) |
|||||||||||||||||
|
|||||||||||||||||
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||
|
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
|
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Revenue |
|
$ 123,323 |
|
$ 60,853 |
|
$ — |
|
$ 184,176 |
|
|
$ 107,560 |
|
$ 56,260 |
|
$ — |
|
$ 163,820 |
Educational services and facilities |
|
60,100 |
|
37,388 |
|
— |
|
97,488 |
|
|
53,321 |
|
33,609 |
|
— |
|
86,930 |
Selling, general and administrative |
|
45,137 |
|
20,219 |
|
10,140 |
|
75,496 |
|
|
44,451 |
|
16,462 |
|
10,028 |
|
70,941 |
Total operating expenses |
|
105,237 |
|
57,607 |
|
10,140 |
|
172,984 |
|
|
97,772 |
|
50,071 |
|
10,028 |
|
157,871 |
Net income (loss) |
|
16,616 |
|
3,320 |
|
(12,149) |
|
7,787 |
|
|
8,821 |
|
6,237 |
|
(11,578) |
|
3,480 |
|
|
Six Months Ended |
|
|
Six Months Ended |
||||||||||||
|
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
|
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Revenue |
|
$ 238,697 |
|
$ 120,174 |
|
$ — |
|
$ 358,871 |
|
|
$ 213,133 |
|
$ 70,691 |
|
$ — |
|
$ 283,824 |
Educational services and facilities |
|
117,468 |
|
72,429 |
|
— |
|
189,897 |
|
|
104,198 |
|
44,140 |
|
— |
|
148,338 |
Selling, general and administrative |
|
88,053 |
|
37,371 |
|
18,127 |
|
143,551 |
|
|
85,725 |
|
21,088 |
|
18,276 |
|
125,089 |
Total operating expenses |
|
205,521 |
|
109,800 |
|
18,127 |
|
333,448 |
|
|
189,923 |
|
65,228 |
|
18,276 |
|
273,427 |
Net income (loss) |
|
30,213 |
|
10,493 |
|
(22,530) |
|
18,176 |
|
|
21,553 |
|
5,503 |
|
(20,928) |
|
6,128 |
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT (In thousands) (Unaudited) |
|||||||
|
|||||||
Major Expense Categories by Segment and Consolidated |
|||||||
|
|||||||
|
Three Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Salaries, benefits and tax expense |
$ 50,760 |
|
$ 30,941 |
|
$ 3,862 |
|
$ 85,563 |
Bonus expense |
3,423 |
|
829 |
|
1,128 |
|
5,380 |
Stock-based compensation expense |
313 |
|
68 |
|
1,972 |
|
2,353 |
Total compensation and related costs |
$ 54,496 |
|
$ 31,838 |
|
$ 6,962 |
|
$ 93,296 |
|
|
|
|
|
|
|
|
Advertising expense |
$ 13,900 |
|
$ 7,040 |
|
$ 211 |
|
$ 21,151 |
Occupancy expense, net of subleases |
7,735 |
|
5,626 |
|
172 |
|
13,533 |
Depreciation and amortization |
5,684 |
|
1,217 |
|
301 |
|
7,202 |
Professional and contract services expense |
2,771 |
|
2,758 |
|
3,014 |
|
8,543 |
|
Three Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Salaries, benefits and tax expense |
$ 47,388 |
|
$ 26,503 |
|
$ 3,841 |
|
$ 77,732 |
Bonus expense |
3,991 |
|
480 |
|
984 |
|
5,455 |
Stock-based compensation expense |
644 |
|
— |
|
1,469 |
|
2,113 |
Total compensation and related costs |
$ 52,023 |
|
$ 26,983 |
|
$ 6,294 |
|
$ 85,300 |
|
|
|
|
|
|
|
|
Advertising expense |
$ 14,179 |
|
$ 6,502 |
|
$ — |
|
$ 20,681 |
Occupancy expense, net of subleases |
8,071 |
|
5,946 |
|
158 |
|
14,175 |
Depreciation and amortization |
5,096 |
|
1,649 |
|
3 |
|
6,748 |
Professional and contract services expense |
2,918 |
|
1,446 |
|
3,051 |
|
7,415 |
SELECTED SUPPLEMENTAL NON-FINANCIAL AND FINANCIAL INFORMATION BY SEGMENT (In thousands) (Unaudited) |
|||||||
|
|||||||
Major Expense Categories by Segment and Consolidated |
|||||||
|
|||||||
|
Six Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Salaries, benefits and tax expense |
$ 96,129 |
|
$ 59,133 |
|
$ 7,425 |
|
$ 162,687 |
Bonus expense |
6,917 |
|
1,686 |
|
2,150 |
|
10,753 |
Stock-based compensation expense |
783 |
|
77 |
|
2,975 |
|
3,835 |
Total compensation and related costs |
$ 103,829 |
|
$ 60,896 |
|
$ 12,550 |
|
$ 177,275 |
|
|
|
|
|
|
|
|
Advertising expense |
$ 27,253 |
|
$ 13,132 |
|
$ 211 |
|
$ 40,596 |
Occupancy expense, net of subleases |
15,342 |
|
11,424 |
|
322 |
|
27,088 |
Depreciation and amortization |
11,178 |
|
2,371 |
|
637 |
|
14,186 |
Professional and contract services expense |
5,358 |
|
4,628 |
|
5,521 |
|
15,507 |
|
Six Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Salaries, benefits and tax expense |
$ 90,871 |
|
$ 34,979 |
|
$ 7,715 |
|
$ 133,565 |
Bonus expense |
7,534 |
|
668 |
|
2,118 |
|
10,320 |
Stock-based compensation expense |
896 |
|
— |
|
2,386 |
|
3,282 |
Total compensation and related costs |
$ 99,301 |
|
$ 35,647 |
|
$ 12,219 |
|
$ 147,167 |
|
|
|
|
|
|
|
|
Advertising expense |
$ 27,528 |
|
$ 7,782 |
|
$ — |
|
$ 35,310 |
Occupancy expense, net of subleases |
16,097 |
|
7,828 |
|
283 |
|
24,208 |
Depreciation and amortization |
9,871 |
|
2,106 |
|
19 |
|
11,996 |
Professional and contract services expense |
5,983 |
|
2,020 |
|
5,226 |
|
13,229 |
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 |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Net income (loss) |
$ 16,616 |
|
$ 3,320 |
|
$ (12,149) |
|
$ 7,787 |
Interest income |
(4) |
|
(154) |
|
(1,269) |
|
(1,427) |
Interest expense |
1,475 |
|
80 |
|
629 |
|
2,184 |
Income tax expense |
— |
|
— |
|
2,767 |
|
2,767 |
Depreciation and amortization |
5,684 |
|
1,217 |
|
301 |
|
7,202 |
EBITDA |
23,771 |
|
4,463 |
|
(9,721) |
|
18,513 |
Stock-based compensation expense |
313 |
|
68 |
|
1,972 |
|
2,353 |
Integration-related costs for completed acquisitions (1) |
226 |
|
884 |
|
586 |
|
1,696 |
Restructuring costs |
45 |
|
— |
|
— |
|
45 |
Adjusted EBITDA, non-GAAP |
$ 24,355 |
|
$ 5,415 |
|
$ (7,163) |
|
$ 22,607 |
|
Three Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Net income (loss) |
$ 8,821 |
|
$ 6,237 |
|
$ (11,578) |
|
$ 3,480 |
Interest income |
(4) |
|
(128) |
|
(1,673) |
|
(1,805) |
Interest expense |
979 |
|
79 |
|
1,579 |
|
2,637 |
Income tax expense |
— |
|
— |
|
1,763 |
|
1,763 |
Depreciation and amortization |
5,094 |
|
1,649 |
|
3 |
|
6,746 |
EBITDA |
14,890 |
|
7,837 |
|
(9,906) |
|
12,821 |
Stock-based compensation expense |
644 |
|
— |
|
1,469 |
|
2,113 |
Acquisition-related costs |
— |
|
— |
|
1,322 |
|
1,322 |
Integration-related costs for completed acquisitions (1) |
864 |
|
544 |
|
543 |
|
1,951 |
One-time costs associated with new campus openings |
984 |
|
|
|
— |
|
984 |
Adjusted EBITDA, non-GAAP |
$ 17,382 |
|
$ 8,381 |
|
$ (6,572) |
|
$ 19,191 |
(1) |
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. |
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION (In thousands) (Unaudited) |
|||||||
|
|||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA |
|||||||
|
|||||||
|
Six Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Net income (loss) |
$ 30,213 |
|
$ 10,493 |
|
$ (22,530) |
|
$ 18,176 |
Interest income |
(10) |
|
(282) |
|
(3,110) |
|
(3,402) |
Interest expense |
2,987 |
|
163 |
|
1,905 |
|
5,055 |
Income tax expense |
— |
|
— |
|
5,927 |
|
5,927 |
Depreciation and amortization |
11,178 |
|
2,371 |
|
637 |
|
14,186 |
EBITDA |
44,368 |
|
12,745 |
|
(17,171) |
|
39,942 |
Stock-based compensation expense |
783 |
|
77 |
|
2,975 |
|
3,835 |
Integration-related costs for completed acquisitions (1) |
726 |
|
1,347 |
|
1,198 |
|
3,271 |
Restructuring costs |
88 |
|
— |
|
— |
|
88 |
Adjusted EBITDA, non-GAAP |
$ 45,965 |
|
$ 14,169 |
|
$ (12,998) |
|
$ 47,136 |
|
Six Months Ended |
||||||
|
UTI |
|
Concorde |
|
Corporate |
|
Consolidated |
Net income (loss) |
$ 21,553 |
|
$ 5,503 |
|
$ (20,928) |
|
$ 6,128 |
Interest income |
(7) |
|
(164) |
|
(2,457) |
|
(2,628) |
Interest expense |
1,860 |
|
123 |
|
2,077 |
|
4,060 |
Income tax expense |
— |
|
— |
|
3,288 |
|
3,288 |
Depreciation and amortization |
9,869 |
|
2,106 |
|
19 |
|
11,994 |
EBITDA |
33,275 |
|
7,568 |
|
(18,001) |
|
22,842 |
Stock-based compensation expense |
896 |
|
— |
|
2,386 |
|
3,282 |
Acquisition-related costs |
— |
|
— |
|
2,097 |
|
2,097 |
Integration-related costs for completed acquisitions (1) |
316 |
|
749 |
|
1,269 |
|
2,334 |
One-time costs associated with new campus openings |
3,075 |
|
— |
|
— |
|
3,075 |
Adjusted EBITDA, non-GAAP |
$ 37,562 |
|
$ 8,317 |
|
$ (12,249) |
|
$ 33,630 |
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION (In thousands) (Unaudited) |
|||
|
|||
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Adjusted Free Cash Flow |
|||
|
|||
|
Six Months Ended |
||
|
2024 |
|
2023 |
Net cash provided by (used in) operating activities, as reported |
$ 8,345 |
|
$ (4,315) |
Purchase of property and equipment |
(9,759) |
|
(38,641) |
Free cash flow, non-GAAP |
(1,414) |
|
(42,956) |
Adjustments: |
|
|
|
Cash outflow to purchase the |
— |
|
26,156 |
Cash outflow for acquisition-related costs |
— |
|
1,367 |
Cash outflow for integration-related costs for completed acquisitions(2) |
2,622 |
|
3,176 |
Cash outflow for integration-related property and equipment(2) |
2,331 |
|
2,990 |
Cash outflow for restructuring costs and property and equipment |
164 |
|
— |
Cash outflow for one-time costs associated with new campus openings |
— |
|
1,974 |
Cash outflow for property and equipment associated with new campus openings |
— |
|
5,281 |
Adjusted free cash flow, non-GAAP |
$ 3,703 |
|
$ (2,012) |
(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. |
RECONCILIATION OF GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL INFORMATION FOR FISCAL 2024 GUIDANCE (In thousands) (Unaudited) |
|
|
|
For each of the non-GAAP reconciliations provided for fiscal 2024 guidance, we are reconciling to |
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted EBITDA for Fiscal 2024 Guidance |
|
|
|
|
Updated |
|
Twelve Months Ended |
|
|
|
2024 |
Net income |
~ |
Interest (income) expense, net |
~ 3,500 |
Income tax expense |
~ 15,900 |
Depreciation and amortization |
~ 30,500 |
EBITDA |
~ |
Stock-based compensation expense |
~ 7,400 |
Integration-related costs for completed acquisitions |
~ 6,100 |
Restructuring costs |
~600 |
Adjusted EBITDA, non-GAAP |
~ |
FY 2024 |
|
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow for |
|
|
|
|
Updated |
|
Twelve Months Ended |
|
|
|
2024 |
Net cash provided by operating activities |
~ |
Purchase of property and equipment |
~ (30,500) |
Free cash flow, non-GAAP |
~ |
Adjustments: |
|
Cash outflow for integration-related costs for completed acquisitions |
~ 6,100 |
Cash outflow for integration-related property and equipment |
~ 2,500 |
Cash outflow for restructuring costs and property and equipment |
~1,000 |
Adjusted free cash flow, non-GAAP |
~ |
FY 2024 |
|
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