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Actionable news in UTI: UNIVERSAL TECHNICAL INSTITUTE Inc,

Universal Technical Institute: Vice President, Corporate Controller Universal Technical Institute, Inc.

The following excerpt is from the company's SEC filing.

(623) 445-0821

Universal Technical Institute Reports Fiscal Year 2015

Third Quarter

Results

SCOTTSDALE, ARIZ. - August 6, 2015 - Universal Technical Institute, Inc. (NYSE: UTI)

, the leading provider of automotive technician training, today reported revenues for the

third quarter

ended

June 30, 2015

$85.1 million

percent decrease from

$91.3 million

of the prior year. Net loss for the

was $3.0 million, or a loss of 12 cents per diluted share, compared to net income of

$0.4 million

1 cent

per diluted share, for the

June 30, 2014

. Pre-opening costs for our Long Beach, California campus impacted operating loss by approximately $1.4 million for the quarter.

Revenues for the nine months ended

were

$272.0 million

$283.1 million

. Net income for the nine months ended

$0.7 million

3 cent

s per diluted share, compared to

$0.5 million

s per diluted share, for the nine months ended

. Pre-opening costs for the Long Beach campus impacted operating income by approximately $2.0 million for the nine month period.

“Our focus on attracting new students to meet the increasingly growing demand from industry for technicians remains a top priority,” said Kim McWaters, chairman and CEO. “New student starts in the quarter were flat to last year, in line with our expectation. Engagement with industry employers to assist us in helping prospective new students understand the opportunities afforded by a UTI education continues to grow, which we believe will positively impact future enrollment."

Student Metrics

Three Months Ended June 30,

Nine Months Ended June 30,

(Rounded to hundreds)

Total starts

Average undergraduate full-time student enrollment

12,100

13,400

14,500

End of period undergraduate full-time student enrollment

11,500

12,600

Operating Performance

of 2015 were

percent decrease from

for last year's

. Tuition excluded $5.1 million and $5.6 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating loss and margin for the

of 2015 were $4.0 million and 4.7 percent, respectively, compared to operating income and margin of

$1.0 million

percent, respectively, in the same period last year. The decreases in operating income and margin were related to the decrease in revenues and an increase in advertising expenses, partially offset by a decrease in compensation costs. Additionally, pre-opening costs for our Long Beach, California campus impacted operating loss by approximately $1.4 million for the quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the

of 2015 was

$1.3 million

$6.7 million

in the same period last year. See “Use of Non-GAAP Financial Information” below.

nine months ended June 30, 2014

. Tuition excluded $16.5 million and $18.4 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating income and margin for the

$2.5 million

percent, respectively, for the

. The increases in operating income and margin were related to decreases in compensation costs, contract services expense and bad debt expense, partially offset by the decrease in revenues, an increase in advertising expense and pre-opening costs for the Long Beach campus of approximately $2.0 million.

$20.1 million

$19.8 million

Liquidity

Cash, cash equivalents and investments totaled

$60.4 million

$96.1 million

at September 30, 2014. At

, shareholders' equity totaled

$123.4 million

as compared to

$133.2 million

at September 30, 2014. We paid cash dividends of $0.10 per common share on December 19, 2014 and March 31 and June 30, 2015 totaling approximately $7.3 million.

Pursuant to the previously announced share repurchase plan, we purchased 748,000 shares during the nine months ended June 30, 2015 at an average price per share of $8.15 and a total cost of approximately $6.1 million. We did not purchase any shares during the three months ended June 30, 2015.

Cash used in operating activities was

$0.2 million

compared to cash provided by operating activities of

$9.8 million

2015 Outlook

Based on the results for the nine months ended June 30, 2015, our guidance for the full year ending September 30, 2015 remains relatively unchanged. We expect revenue to decline approximately 3 to 4%, however, excluding the impact of pre-opening costs of our new campus, we expect to see

year over year growth in operating income. We expect new student starts as well as our average student population to be down for the full year in the mid-single digits. We are cautiously...


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