SCOTTSDALE, Ariz., Nov. 29, 2016 /PRNewswire/ -- Universal
Technical Institute, Inc. (NYSE: UTI), the leading provider of
automotive technician training, today reported revenues for the
fourth quarter ended September 30, 2016 of $86.9 million, a 4.1% percent decrease from
$90.7 million for the fourth quarter
of the prior year. Net loss for the fourth quarter ended
September 30, 2016 was $8.9
million compared to $9.8
million for the fourth quarter of the prior year. Loss
available for distribution, which is calculated as net loss less
preferred stock dividends, was $10.3
million for the fourth quarter ended September 30, 2016. We did not pay preferred
stock dividends during the fourth quarter of the prior year. Net
loss per diluted share was 42 cents
for the fourth quarter ended September 30,
2016, compared to 41 cents
loss per diluted share for the fourth quarter of the prior
year.
Revenues for the year ended September 30,
2016 were $347.1 million, a
4.3% percent decrease from $362.7
million for the year ended September
30, 2015. Net loss for the year ended September 30,
2016 was $47.7 million compared to
$9.1 million for the prior year. Loss
available for distribution was $49.1
million for the year ended September
30, 2016. We did not pay preferred stock dividends during
the prior year. Net loss per diluted share was $2.02 for the year ended September 30, 2016, compared to 38 cents loss per diluted share for the prior
year.
During the quarter ended March 31,
2016, we determined that it was necessary to record a full
valuation allowance on our deferred tax assets. The income tax
expense related to the valuation allowance impacted diluted loss
per share by approximately 20 cents
and $1.41 for the fourth quarter and
year ended September 30, 2016,
respectively. In September 2016, we
implemented a Financial Improvement Plan, the first step of which
was a reduction in workforce impacting approximately 70 employees,
primarily at our corporate office. The severance expense related to
the reduction in workforce negatively impacted earnings by
$3.9 million (pre-tax) or
10 cents per diluted share for the
fourth quarter and year ended September 30,
2016. Additionally, our new campus in Long Beach, California, which opened during
the fourth quarter of fiscal 2015, negatively impacted earnings by
$2.7 million (pre-tax) or
7 cents per diluted share for the
year ended September 30, 2016. This
campus contributed $0.4 million
(pre-tax) or 1 cent per diluted share
for the fourth quarter ended September 30,
2016.
"During 2016, UTI made great strides in our effort to return to
profitability in 2017. We thoughtfully restructured the
business to take out $30 million in
annual expense, and raised $70
million in capital, which will help us accelerate the
opening of smaller campuses patterned after our successful
Dallas and Long Beach facilities, said Kim McWaters, UTI Chairman, CEO and President.
"We know there is strong demand for our graduates and
incremental value for every student we train. So, we are keenly
focused on helping more students show to school and graduate. We
take great pride in our students' graduation rates, employability
and long-term earnings. We are confident this year that we laid the
foundation to create value for all of our key stakeholders in 2017
and beyond."
Student Metrics
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Rounded to
hundreds)
|
Total
starts
|
5,600
|
|
|
6,000
|
|
|
11,300
|
|
|
12,400
|
|
Average undergraduate
full-time student enrollment
|
11,700
|
|
|
12,800
|
|
|
12,000
|
|
|
13,200
|
|
End of period
undergraduate full-time student enrollment
|
12,900
|
|
|
14,200
|
|
|
12,900
|
|
|
14,200
|
|
Fourth Quarter Operating Performance
For the fourth quarter of 2016, revenues were $86.9 million, a 4.1% percent decrease from
$90.7 million for last year's fourth
quarter. During the fourth quarter of 2016 and 2015, tuition
excluded $4.2 million and
$4.6 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 fourth quarter of 2016 were
$5.2 million and 6.0 percent,
respectively, compared to $13.2
million and 14.6 percent, respectively, in the same period
last year. The improvements to operating loss and margin were
primarily attributable to the goodwill impairment expense recorded
in the fourth quarter of 2015, as well as a decrease in supplies
and maintenance and tools and training aids expenses. Partially
offsetting these decreases was an increase in compensation expense.
Our new campus in Long Beach,
California contributed $0.7
million of operating income for the fourth quarter of 2016,
compared to an operating loss of $2.7
million for the fourth quarter of 2015. Excluding the impact
of the Long Beach, California
campus and the severance charges recorded for the September 2016 reduction in workforce, operating
loss and margin were $2.0 million and
2.3%, respectively, for the fourth quarter of 2016. See "Use of
Non-GAAP Financial Information" below.
Earnings (loss) before interest, taxes, depreciation and
amortization and prior year goodwill impairment (adjusted EBITDA)
for the fourth quarter was a loss of $0.9
million in 2016 compared to earnings of $4.0 million in the same period last year.
See "Use of Non-GAAP Financial Information" below.
Year Operating Performance
Revenues for the year ended September 30,
2016 were $347.1 million, a
4.3% percent decrease from $362.7
million for the year ended September
30, 2015. Tuition excluded $18.7
million and $21.1 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 year ended September 30, 2016 were $18.6 million and 5.4 percent, respectively,
compared to $9.2 million and
2.5 percent, respectively, for the year ended September 30, 2015. The declines in operating
loss and margin were primarily attributable to the decline in
revenues and an increase in compensation expense. The decline was
partially offset by decreases in advertising, depreciation and
amortization, supplies and maintenance and tools and training aids
expenses. Additionally, the prior year operating loss was impacted
by a goodwill impairment charge of $12.4
million recorded in the fourth quarter of 2015. Operating
losses at our Long Beach,
California campus were $1.4
million and $4.4 million for
the years ended September 30, 2016
and 2015, respectively. Excluding the impact of the Long Beach, California campus and the
severance charges recorded for the September
2016 reduction in workforce, operating loss and margin were
$13.3 million and 3.8% for the year
ended September 30, 2016. See "Use of
Non-GAAP Financial Information" below.
Adjusted EBITDA for the year ended September 30, 2016 was $0.8 million compared to $24.1 million for the year ended September 30, 2015. See "Use of Non-GAAP
Financial Information" below.
Liquidity
Cash, cash equivalents and investments totaled $120.7 million at September 30, 2016,
compared to $59.2 million at
September 30, 2015. At
September 30, 2016, shareholders' equity totaled $136.6 million as compared to $113.5 million at September 30, 2015. On June 24, 2016, we entered into a Securities
Purchase Agreement with Coliseum Holdings I, LLC to sell 700,000
shares of Series A Convertible Preferred Stock for a total purchase
price of $70.0 million. The proceeds
from the offering are intended to be used to fund strategic
long-term growth initiatives, including the expansion to new
markets of campuses on a scale similar to our Long Beach, California and Dallas/Ft. Worth, Texas campuses and the
creation of new programs in existing markets with under-utilized
campus facilities. Additionally, we may use the proceeds to fund
strategic acquisitions that complement our core business. On
September 28, 2016, we paid a cash
dividend on our preferred stock of $1.4
million.
We paid cash dividends of $0.02
per common share on October 5, 2015,
December 18, 2015 and March 31, 2016 totaling approximately
$1.5 million. On June 9, 2016, our Board of Directors voted to
eliminate the quarterly cash dividend on our common stock.
Cash flow provided by operating activities was $18.2 million for the three months ended
September 30, 2016, compared to
$8.4 million for the three months
ended September 30, 2015. Cash
flow provided by operating activities was $7.4 million for the year ended September 30, 2016 compared to $8.2 million for the year ended September 30, 2015.
2017 Outlook
For the year ending September 30,
2017, we expect new student starts to be down in the low
single digits. Combined with the number of students currently in
school and the timing of the anticipated start growth, we expect
our average student population to be down in the mid to high single
digits as a percentage compared with the year ended September 30, 2016. While annual tuition
increases will slightly offset the decline in average students, we
expect revenue to be down in the low to mid single digits. We
implemented a Financial Improvement Plan in September 2016, which we expect to deliver
$25 million to $30 million in
annualized cost savings. We anticipate the Financial Improvement
Plan will result in approximately breakeven operating income and
positive EBITDA despite the decline in revenue. Capital
expenditures are expected to be approximately $12.5 million to $13.5 million for the year
ending September 30, 2017. Due to the
seasonality of our business and normal fluctuations in student
populations, we would expect volatility in our quarterly
results.
Conference Call
Management will hold a conference call to discuss the 2016
fourth quarter results today at 2:30 p.m.
MST (4:30 p.m. EST). This call
can be accessed by dialing 412-858-4600 or 800-860-2442.
Investors are invited to listen to the call live at
http://uti.investorroom.com/. Please access the website at
least 15 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 December 9, 2016 by dialing 412-317-0088 or
877-344-7529 and entering pass code 10096553.
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, 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 to be 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 51-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.
(Tables Follow)
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF LOSS
|
(UNAUDITED)
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In thousands, except per share amounts)
|
Revenues
|
|
$
|
86,915
|
|
|
$
|
90,653
|
|
|
$
|
347,146
|
|
|
$
|
362,674
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Educational services
and facilities
|
|
47,929
|
|
|
50,753
|
|
|
194,395
|
|
|
194,416
|
|
Selling, general and
administrative
|
|
44,196
|
|
|
40,772
|
|
|
171,374
|
|
|
165,124
|
|
Goodwill
impairment
|
|
—
|
|
|
12,357
|
|
|
—
|
|
|
12,357
|
|
Total operating expenses
|
|
92,125
|
|
|
103,882
|
|
|
365,769
|
|
|
371,897
|
|
Loss from
operations
|
|
(5,210)
|
|
|
(13,229)
|
|
|
(18,623)
|
|
|
(9,223)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(780)
|
|
|
(661)
|
|
|
(3,196)
|
|
|
(2,125)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
52
|
|
|
134
|
|
|
342
|
|
|
527
|
|
Other income
(expense)
|
|
(504)
|
|
|
(159)
|
|
|
(49)
|
|
|
140
|
|
Total other expense, net
|
|
(1,232)
|
|
|
(686)
|
|
|
(2,903)
|
|
|
(1,458)
|
|
Loss before income
taxes
|
|
(6,442)
|
|
|
(13,915)
|
|
|
(21,526)
|
|
|
(10,681)
|
|
Income tax expense
(benefit)
|
|
2,503
|
|
|
(4,092)
|
|
|
26,170
|
|
|
(1,532)
|
|
Net loss
|
|
$
|
(8,945)
|
|
|
$
|
(9,823)
|
|
|
$
|
(47,696)
|
|
|
$
|
(9,149)
|
|
Preferred stock
dividends
|
|
1,323
|
|
|
—
|
|
|
1,424
|
|
|
—
|
|
Loss available for
distribution
|
|
$
|
(10,268)
|
|
|
$
|
(9,823)
|
|
|
$
|
(49,120)
|
|
|
$
|
(9,149)
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
|
Net loss per share -
basic
|
|
$
|
(0.42)
|
|
|
$
|
(0.41)
|
|
|
$
|
(2.02)
|
|
|
$
|
(0.38)
|
|
Net loss per share -
diluted
|
|
$
|
(0.42)
|
|
|
$
|
(0.41)
|
|
|
$
|
(2.02)
|
|
|
$
|
(0.38)
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
24,403
|
|
|
24,134
|
|
|
24,313
|
|
|
24,391
|
|
Diluted
|
|
24,403
|
|
|
24,134
|
|
|
24,313
|
|
|
24,391
|
|
Cash dividends
declared per common share
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.32
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
(UNAUDITED)
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In thousands)
|
Net loss
|
|
$
|
(8,945)
|
|
|
$
|
(9,823)
|
|
|
$
|
(47,696)
|
|
|
$
|
(9,149)
|
|
Other comprehensive
income (loss) (net of tax):
|
|
|
|
|
|
|
|
|
Equity
interest in investee's unrealized gains (losses) on hedging
derivatives, net of taxes
|
|
(1)
|
|
|
1
|
|
|
(2)
|
|
|
20
|
|
Comprehensive
loss
|
|
$
|
(8,946)
|
|
|
$
|
(9,822)
|
|
|
$
|
(47,698)
|
|
|
$
|
(9,129)
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
Sept. 30,
2016
|
|
Sept. 30,
2015
|
Assets
|
|
(In
thousands)
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
119,045
|
|
|
$
|
29,438
|
|
Restricted
cash
|
|
5,956
|
|
|
5,824
|
|
Investments, current
portion
|
|
1,691
|
|
|
28,086
|
|
Receivables,
net
|
|
15,253
|
|
|
22,409
|
|
Deferred tax assets,
net
|
|
—
|
|
|
4,539
|
|
Prepaid expenses and
other current assets
|
|
20,004
|
|
|
17,761
|
|
Total current assets
|
|
161,949
|
|
|
108,057
|
|
Investments, less
current portion
|
|
—
|
|
|
1,719
|
|
Property and
equipment, net
|
|
114,033
|
|
|
124,144
|
|
Goodwill
|
|
9,005
|
|
|
8,222
|
|
Deferred tax assets,
net
|
|
—
|
|
|
20,248
|
|
Other
assets
|
|
12,172
|
|
|
11,912
|
|
Total assets
|
|
$
|
297,159
|
|
|
$
|
274,302
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
42,545
|
|
|
$
|
42,620
|
|
Dividends
payable
|
|
—
|
|
|
485
|
|
Deferred
revenue
|
|
44,491
|
|
|
44,693
|
|
Accrued tool
sets
|
|
2,938
|
|
|
3,624
|
|
Financing obligation,
current
|
|
913
|
|
|
737
|
|
Income tax
payable
|
|
—
|
|
|
1,187
|
|
Other current
liabilities
|
|
3,673
|
|
|
3,148
|
|
Total current liabilities
|
|
94,560
|
|
|
96,494
|
|
Deferred tax
liabilities, net
|
|
3,141
|
|
|
—
|
|
Deferred rent
liability
|
|
8,987
|
|
|
10,822
|
|
Financing
obligation
|
|
43,141
|
|
|
44,053
|
|
Other
liabilities
|
|
10,716
|
|
|
9,458
|
|
Total liabilities
|
|
160,545
|
|
|
160,827
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock, $0.0001
par value, 100,000,000 shares authorized, 31,489,331 shares issued
and 24,624,434 shares outstanding as of September 30, 2016 and
31,098,193 shares issued and 24,233,296 shares outstanding as of
September 30, 2015
|
|
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
September 30, 2016, liquidation preference of $100 per share, and 0
shares issued and outstanding as of September 30, 2015
|
|
—
|
|
|
—
|
|
Paid-in capital -
common
|
|
182,615
|
|
|
178,202
|
|
Paid-in capital -
preferred
|
|
68,820
|
|
|
—
|
|
Treasury stock, at
cost, 6,864,897 shares as of September 30, 2016 and
September 30, 2015
|
|
(97,388)
|
|
|
(97,388)
|
|
Retained earnings
(deficit)
|
|
(17,454)
|
|
|
32,638
|
|
Accumulated other
comprehensive income
|
|
18
|
|
|
20
|
|
Total shareholders' equity
|
|
136,614
|
|
|
113,475
|
|
Total liabilities and
shareholders' equity
|
|
$
|
297,159
|
|
|
$
|
274,302
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
Twelve Months
Ended Sept.
30,
|
|
|
2016
|
|
2015
|
|
|
(In
thousands)
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(47,696)
|
|
|
$
|
(9,149)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
15,067
|
|
|
17,294
|
|
Amortization of
assets subject to financing obligation
|
|
2,682
|
|
|
1,861
|
|
Amortization of
held-to-maturity investments
|
|
405
|
|
|
1,627
|
|
Goodwill
impairment
|
|
—
|
|
|
12,357
|
|
Impairment of
investment in unconsolidated affiliate
|
|
815
|
|
|
—
|
|
Bad debt
expense
|
|
1,153
|
|
|
1,589
|
|
Stock-based
compensation
|
|
4,904
|
|
|
4,265
|
|
Excess tax benefit
from stock-based compensation
|
|
—
|
|
|
—
|
|
Deferred income
taxes
|
|
27,928
|
|
|
(5,394)
|
|
Equity in earnings of
unconsolidated affiliates
|
|
(342)
|
|
|
(527)
|
|
Training equipment
credits earned, net
|
|
(1,176)
|
|
|
(899)
|
|
Other (gains) and
losses, net
|
|
24
|
|
|
24
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Restricted cash:
Title IV credit balances
|
|
165
|
|
|
60
|
|
Receivables
|
|
8,202
|
|
|
(11,443)
|
|
Prepaid expenses and
other current assets
|
|
(2,009)
|
|
|
(1,065)
|
|
Other
assets
|
|
(127)
|
|
|
(677)
|
|
Accounts payable and
accrued expenses
|
|
1,855
|
|
|
2,705
|
|
Deferred
revenue
|
|
(202)
|
|
|
(1,672)
|
|
Income tax
payable/receivable
|
|
(3,394)
|
|
|
(3,149)
|
|
Accrued tool sets and
other current liabilities
|
|
489
|
|
|
1,678
|
|
Deferred rent
liability
|
|
(1,835)
|
|
|
(753)
|
|
Other
liabilities
|
|
476
|
|
|
(490)
|
|
Net cash provided by
operating activities
|
|
7,384
|
|
|
8,242
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchase of property
and equipment
|
|
(7,495)
|
|
|
(29,030)
|
|
Proceeds from
disposal of property and equipment
|
|
22
|
|
|
3
|
|
Purchase of
investments
|
|
—
|
|
|
(26,061)
|
|
Proceeds received
upon maturity of investments
|
|
27,709
|
|
|
51,792
|
|
Acquisitions
|
|
(1,500)
|
|
|
—
|
|
Investment in joint
venture
|
|
(1,000)
|
|
|
—
|
|
Capitalized costs for
intangible assets
|
|
(575)
|
|
|
(453)
|
|
Return of capital
contribution from unconsolidated affiliate
|
|
475
|
|
|
464
|
|
Restricted cash:
proprietary loan program
|
|
(289)
|
|
|
607
|
|
Net cash provided by
(used in) investing activities
|
|
17,347
|
|
|
(2,678)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from sale of
preferred stock, net of issuance costs paid
|
|
68,886
|
|
|
—
|
|
Payment of preferred
stock dividend
|
|
(1,424)
|
|
|
—
|
|
Payment of common
stock dividends
|
|
(1,457)
|
|
|
(7,310)
|
|
Repayment of
financing obligation
|
|
(736)
|
|
|
(663)
|
|
Payment of payroll
taxes on stock-based compensation through shares
withheld
|
|
(393)
|
|
|
(519)
|
|
Purchase of treasury
stock
|
|
—
|
|
|
(6,619)
|
|
Net cash provided by
(used in) financing activities
|
|
64,876
|
|
|
(15,111)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
89,607
|
|
|
(9,547)
|
|
Cash and cash
equivalents, beginning of period
|
|
29,438
|
|
|
38,985
|
|
Cash and cash
equivalents, end of period
|
|
$
|
119,045
|
|
|
$
|
29,438
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION
|
(UNAUDITED)
|
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA
|
|
|
|
Three Months Ended
Sept. 30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands)
|
Net income
(loss)
|
|
$
|
(8,945)
|
|
|
$
|
(9,823)
|
|
|
$
|
(47,696)
|
|
|
$
|
(9,149)
|
|
Interest expense,
net
|
|
780
|
|
|
661
|
|
|
3,196
|
|
|
2,125
|
|
Income tax expense
(benefit)
|
|
2,503
|
|
|
(4,092)
|
|
|
26,170
|
|
|
(1,532)
|
|
Depreciation and
amortization
|
|
4,721
|
|
|
4,872
|
|
|
19,091
|
|
|
20,323
|
|
Goodwill impairment
expense
|
|
—
|
|
|
12,357
|
|
|
—
|
|
|
12,357
|
|
Adjusted
EBITDA
|
|
$
|
(941)
|
|
|
$
|
3,975
|
|
|
$
|
761
|
|
|
$
|
24,124
|
|
Reconciliation of
Income (Loss) from Operations Impact of Severance Costs, and Long
Beach, California Campus and Prior Year Goodwill
Impairment
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands)
|
Loss from operations,
as reported
|
|
$
|
(5,210)
|
|
|
$
|
(13,229)
|
|
|
$
|
(18,623)
|
|
|
$
|
(9,223)
|
Severance
costs
|
|
3,911
|
|
|
—
|
|
|
3,911
|
|
|
—
|
Long Beach,
California campus (income) loss from operations
|
|
(692)
|
|
|
2,666
|
|
|
1,435
|
|
|
4,433
|
Goodwill impairment
expense
|
|
—
|
|
|
12,357
|
|
|
—
|
|
|
12,357
|
Income (loss) from
operations, adjusted for severance costs, Long Beach, California
campus and prior year goodwill impairment
|
|
$
|
(1,991)
|
|
|
$
|
1,794
|
|
|
$
|
(13,277)
|
|
|
$
|
7,567
|
Operating margin,
adjusted for severance costs, Long Beach, California campus and
prior year goodwill impairment
|
|
(2.3)%
|
|
|
2.0%
|
|
|
(3.8)%
|
|
|
2.1%
|
Reconciliation of
Earnings (Loss) Per Share Impact of Severance Costs
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands, except per share amounts)
|
Loss available for
distribution - diluted
|
|
$
|
(10,268)
|
|
|
$
|
(9,823)
|
|
|
$
|
(49,120)
|
|
|
$
|
(9,149)
|
|
Severance costs
related to September 2016 reduction in workforce
|
|
3,911
|
|
|
—
|
|
|
3,911
|
|
|
—
|
|
Less: tax effect of
severance costs
|
|
(1,494)
|
|
|
—
|
|
|
(1,494)
|
|
|
—
|
|
Loss available for
distribution - diluted, adjusted for severance costs
|
|
$
|
(7,851)
|
|
|
$
|
(9,823)
|
|
|
$
|
(46,703)
|
|
|
$
|
(9,149)
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share, as reported
|
|
$
|
(0.42)
|
|
|
$
|
(0.41)
|
|
|
$
|
(2.02)
|
|
|
$
|
(0.38)
|
|
Diluted loss per
share, adjusted for severance costs
|
|
$
|
(0.32)
|
|
|
$
|
(0.41)
|
|
|
$
|
(1.92)
|
|
|
$
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
24,403
|
|
|
24,134
|
|
|
24,313
|
|
|
24,391
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION
|
(UNAUDITED)
|
|
Reconciliation of
Earnings (Loss) Per Share Impact of Long Beach, California
Campus
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands, except per share amounts)
|
Loss available for
distribution - diluted
|
|
$
|
(10,268)
|
|
|
$
|
(9,823)
|
|
|
$
|
(49,120)
|
|
|
$
|
(9,149)
|
|
Long Beach,
California campus (income) loss before income taxes
|
|
(362)
|
|
|
2,829
|
|
|
2,711
|
|
|
4,597
|
|
Less: tax
effects of Long Beach income or loss before income taxes
|
|
138
|
|
|
(1,081)
|
|
|
(1,036)
|
|
|
(1,756)
|
|
Loss available for
distribution - diluted, adjusted for Long Beach, California
campus
|
|
$
|
(10,492)
|
|
|
$
|
(8,075)
|
|
|
$
|
(47,445)
|
|
|
$
|
(6,308)
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share, as reported
|
|
$
|
(0.42)
|
|
|
$
|
(0.41)
|
|
|
$
|
(2.02)
|
|
|
$
|
(0.38)
|
|
Diluted loss per
share, adjusted for Long Beach campus opening
|
|
$
|
(0.43)
|
|
|
$
|
(0.33)
|
|
|
$
|
(1.95)
|
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
24,403
|
|
|
24,134
|
|
|
24,313
|
|
|
24,391
|
|
Reconciliation of
Earnings (Loss) Per Share Impact of Deferred Tax Valuation
Allowance
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands, except per share amounts)
|
Loss available for
distribution - diluted
|
|
$
|
(10,268)
|
|
|
$
|
(9,823)
|
|
|
$
|
(49,120)
|
|
|
$
|
(9,149)
|
|
Income tax expense
related to increase in deferred tax asset valuation
allowance
|
|
4,828
|
|
|
—
|
|
|
34,184
|
|
|
—
|
|
Loss available for
distribution - diluted, adjusted for deferred tax asset valuation
allowance
|
|
$
|
(5,440)
|
|
|
$
|
(9,823)
|
|
|
$
|
(14,936)
|
|
|
$
|
(9,149)
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share, as reported
|
|
$
|
(0.42)
|
|
|
$
|
(0.41)
|
|
|
$
|
(2.02)
|
|
|
$
|
(0.38)
|
|
Diluted loss per
share, adjusted for deferred tax asset valuation
allowance
|
|
$
|
(0.22)
|
|
|
$
|
(0.41)
|
|
|
$
|
(0.61)
|
|
|
$
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
|
24,403
|
|
|
24,134
|
|
|
24,313
|
|
|
24,391
|
|
UNIVERSAL
TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
|
SELECTED
SUPPLEMENTAL INFORMATION
|
(UNAUDITED)
|
|
Selected
Supplemental Financial Information
|
|
|
|
Three Months Ended Sept.
30,
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(In
thousands)
|
Salaries
expense
|
|
$
|
41,033
|
|
|
$
|
38,810
|
|
|
$
|
159,393
|
|
|
$
|
152,595
|
|
Employee benefits and
tax
|
|
8,127
|
|
|
6,810
|
|
|
33,580
|
|
|
28,864
|
|
Bonus
expense
|
|
1,047
|
|
|
5
|
|
|
5,938
|
|
|
5,241
|
|
Stock-based
compensation
|
|
1,697
|
|
|
1,291
|
|
|
4,904
|
|
|
4,265
|
|
Total compensation
and related costs
|
|
$
|
51,904
|
|
|
$
|
46,916
|
|
|
$
|
203,815
|
|
|
$
|
190,965
|
|
|
|
|
|
|
|
|
|
|
Occupancy
expense
|
|
$
|
9,903
|
|
|
$
|
9,965
|
|
|
$
|
38,722
|
|
|
$
|
38,540
|
|
Depreciation and
amortization expense
|
|
$
|
4,721
|
|
|
$
|
4,872
|
|
|
$
|
19,091
|
|
|
$
|
20,323
|
|
Bad debt
expense
|
|
$
|
222
|
|
|
$
|
840
|
|
|
$
|
1,153
|
|
|
$
|
1,589
|
|
Graduate
Employment Rate
|
|
|
|
Twelve Months
Ended Sept. 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Graduate employment
rate
|
|
88%
|
|
|
88%
|
|
Graduates
|
|
9,700
|
|
|
9,900
|
|
Graduates available
for employment
|
|
9,100
|
|
|
9,200
|
|
Graduates
employed
|
|
8,000
|
|
|
8,100
|
|
The employment calculation is based on all graduates, including
those that completed manufacturer specific advanced training
programs, from October 1, 2014 to
September 30, 2015 and October 1, 2013 to September 30, 2014, respectively, excluding
graduates not available for employment because of continuing
education, military service, health, incarceration, death or
international student status.
Contact:
Bryce Peterson
Chief Financial Officer
Universal Technical Institute, Inc.
(623) 445-0977
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-technical-institute-reports-fiscal-year-2016-fourth-quarter-and-year-end-results-300369973.html
SOURCE Universal Technical
Institute, Inc.