PHOENIX, Aug. 3, 2022
/PRNewswire/ -- Universal Technical
Institute, Inc. (NYSE: UTI), a leading provider of
transportation and technical training programs, reported
financial results for the fiscal 2022 third quarter ended
June 30, 2022.
- New student starts increased 25.0% from the prior year quarter
and average undergraduate full-time active students increased
11.4%.
- Revenue increased 20.5% to $101.0
million versus the prior year quarter.
- Net income of $0.8 million,
adjusted net income* of $5.7 million,
and adjusted EBITDA* of $11.0
million, with the latter two increasing 71% and 53% versus
the prior year quarter, respectively.
"We delivered another strong quarter with revenue and adjusted
EBITDA exceeding our expectations," said Jerome Grant, UTI's Chief Executive
Officer. "Several elements of our growth and diversification
strategy, which is still in its early stages of deployment,
contributed positively to our performance in the quarter, including
the MIAT College of Technology acquisition and the opening of our
new campus in Austin, TX."
Grant continued, "As always, our focus on delivering strong
student and employment outcomes is central to everything we do at
UTI. The need for our services across a broad array of in-demand
fields in the transportation and skilled trades arenas supports our
strategy of expanding our offerings into areas where the skills gap
remains substantial. Our recent announcement to acquire Concorde
Career Colleges, which will broaden our family of education brands
into sizeable and growing healthcare fields like dental and other
allied health professions, as well as patient care and nursing,
fits perfectly with this strategy. In addition, we are opening our
new campus in Miramar, FL this
month and are executing on our plan for MIAT program expansions
across the UTI campuses over the next two years. We remain
focused and excited for the opportunities ahead of us and
delivering on our longer-term strategic roadmap that we believe
will result in revenue in excess of $700
million and adjusted EBITDA margin of approximately 20% by
fiscal 2025. With our flexible and adaptable business model, we are
prepared to navigate any nearer term challenges affecting the
broader economic environment."
Financial Results for the Three-Month Period Ended
June 30, 2022 Compared to 2021
- Revenues increased 20.5% to $101.0
million compared to $83.8
million primarily due to an increase in average
undergraduate full-time active students and higher revenue earned
per student, as well as the addition of MIAT.
- Operating expenses rose by 22.7% to $99.0 million, compared to $80.7 million. The increase was primarily due to
the incremental cost of delivery associated with growth in the
average student population, the inclusion of MIAT and ongoing
one-time investments in support of our growth and diversification
strategy.
- Operating income was $2.0 million
compared to $3.1 million.
- Net income was $0.8 million
compared to $3.0 million. Adjusted
net income* was $5.7 million compared
to $3.3 million.
- Basic and diluted (loss) income per share (EPS) were
$(0.01) compared to $0.03.
- Adjusted EBITDA* was $11.0
million compared to $7.2
million.
- Average undergraduate full-time active students increased 11.4%
driven by strong new student start growth in the quarter and the
addition of MIAT.
- New student starts increased 25.0% in the period.
*See "Use of Non-GAAP Financial Information" below.
"We delivered 25% new student start growth in the quarter, which
was in line with our expectations, as we benefited from multiple
factors including increased MIAT starts, the first cohorts of
students at our new Austin, TX
campus, as well as benefits from start optimization efforts in our
important high school channel," said UTI Chief Financial Officer,
Troy Anderson. "Our strong financial
results so far this year give us further confidence in meeting the
growth we projected at the beginning of the fiscal year. We expect
to come in towards the higher end of the guidance range for our key
financial metrics, including revenue and adjusted EBITDA. Regarding
new student start growth this year, we now expect full-year
growth of low to mid-single digits, as our efforts to optimize
high school starts will not offset pressure from macroeconomic
factors we are seeing in our adult channel. That said, we are still
seeing strong inquiry volumes and expect accelerated new student
start growth in fiscal 2023 and beyond as we yield the benefits of
our growth and diversification strategy."
Balance Sheet and Liquidity
At June 30, 2022, UTI's total available liquidity was
$70.7 million. In April 2022, the Company completed the financing
of the Lisle campus purchase via a
new term loan of $38 million, with
net proceeds of approximately $20
million after certain fees and the retirement of the
existing debt that transferred with the acquired entity.
Additionally, consistent with UTI's growth and diversification
strategy, year-to-date capital expenditures, excluding the
Lisle campus purchase, were
$41.1 million driven primarily
by the Austin, TX and Miramar, FL new campus build-outs, new welding
programs, and the campus optimization initiatives, all of which
will be mostly completed during fiscal 2022.
Financial Results for the Nine-Month Period Ended
June 30, 2022 Compared to 2021
- Revenues increased 29.7% to $308.1
million compared to $237.6
million. Similar to the three months ended, the increase is
primarily due to higher average undergraduate full-time active
students and higher revenue earned per student, as well as the
addition of MIAT. Revenue per student in the prior year period was
negatively impacted by the pace in which students were progressing
through their programs due to the continuing effects of the
pandemic.
- Operating expenses increased by 22.8% to $289.2 million, compared to $235.4 million. Similar to the three months
ended, the increase was primarily due to the incremental cost of
delivery associated with growth in the average student population,
the inclusion of MIAT and ongoing investments in support of our
growth and diversification strategy.
- Operating income was $18.9
million compared to $2.2
million.
- Net income was $23.0 million and
includes an income tax benefit from the reversal of a majority of
our valuation allowance during the current year, compared to a net
income of $2.5 million. Adjusted net
income* was $27.3 million compared to
$3.6 million.
- Basic and diluted EPS were $0.36
and $0.35, respectively, compared to
$(0.04).
- Adjusted EBITDA* was $41.8
million compared to $14.3
million.
- Operating cash flow provided $7.9
million compared to $14.8
million.
- Adjusted free cash flow* used cash of $3.0 million compared to providing cash of
$5.0 million.
- Average undergraduate full-time active students increased 14.2%
driven by strong new student starts throughout fiscal 2021 and the
addition of MIAT.
- New student starts increased 7.9% in the period.
*See "Use of Non-GAAP Financial Information" below.
Student Metrics
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total new student
starts
|
3,166
|
|
2,532
|
|
7,409
|
|
6,864
|
Average undergraduate
full-time active students
|
12,025
|
|
10,797
|
|
12,881
|
|
11,280
|
End of period
undergraduate full-time active students
|
12,077
|
|
10,583
|
|
12,077
|
|
10,583
|
For UTI's most recent investor presentation and quarterly
financial supplement, please see its investor relations website at
https://investor.uti.edu.
Updated Fiscal 2022 Financial Outlook
|
Updated
|
|
FY
2022
|
($ in
millions)
|
Guidance(2)
|
New student start
growth versus fiscal 2021
|
Low to Mid Single
Digits
|
Revenue
|
Higher end of
range $410.0 - $420.0
|
Adjusted net
income(1)
|
Higher end of
range $32.0 - $35.0
|
Adjusted
EBITDA(1)
|
Higher end of
range $52.0 - $55.0
|
Adjusted free cash
flow(1)(3)
|
$35.0 -
$40.0
|
|
|
(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)
|
Fiscal 2022 reflects
UTI estimated results for the full year and MIAT estimated results
beginning November 1, 2021. Any growth rates shown are
calculated on an "as reported" basis.
|
(3)
|
Assumes $55.0 to $60.0
million of total capex, excluding the Lisle campus purchase, and
including investments for the Austin and Miramar campuses,
MIAT-related program expansion, new welding programs launching
during the fiscal year, campus optimization efforts, and a
consistent level of annual maintenance capex.
|
Conference Call
Management will hold a conference call to discuss the financial
results for the fiscal 2022 third quarter ended June 30, 2022,
on Wednesday, August 3, 2022, 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 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 or the
telephone replay can be accessed August 17,
2022, by dialing (877) 344-7529 (domestic) or (412) 317-0088
(international) and entering passcode 8868532.
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"), UTI 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. UTI 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, UTI
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
UTI defines adjusted EBITDA as net income (loss) before interest
expense, interest income, income taxes, depreciation, amortization
and adjusted for items not considered as part of the company's
normal recurring operations.
Adjusted Free Cash Flow
UTI defines adjusted free cash flow as net cash provided by
(used in) operating activities less capital expenditures, adjusted
for items not considered as part of the company's normal recurring
operations.
Adjusted Net Income (Loss)
UTI defines adjusted net income (loss) as net income (loss),
adjusted for items that affect trends in underlying performance
from year to year and are not considered normal recurring
operations, including the income tax effect on the adjustments
utilizing the effective tax rate.
UTI discloses any campus adjustments as direct costs (net of any
corporate allocations). Management utilizes adjusted figures as
performance measures internally for operating decisions, strategic
planning, annual budgeting and forecasting. For the periods
presented, this includes acquisition-related costs for both
announced and potential acquisitions, integration costs for
completed acquisitions, costs related to the purchase of our
Lisle, Illinois and Avondale, Arizona campuses, start-up costs
associated with the Austin, TX and
Miramar, FL campus openings, lease
accounting adjustments resulting from the purchase of our
Lisle, Illinois campus and our
campus consolidation efforts, the income tax benefit recorded as a
result of the CARES Act, and severance expenses due to the CEO
transition. To obtain a complete understanding of UTI's
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
UTI's 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 UTI's
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
UTI does, 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 UTI's 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) UTI's expectation that it will meet its fiscal year
2022 guidance for new student start growth (decline), revenue
growth, net income, adjusted net income, adjusted EBITDA, and
adjusted free cash flow; (2) 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; (3) UTI's expectation that it will succeed in
new campus launches next year; and (4) UTI's expectation of the
successful integration of the MIAT acquisition. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on UTI'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 UTI's
control. UTI's 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 UTI's actual
results include, among other things, impacts related to the
COVID-19 pandemic, 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 modified campuses or instruction,
potential increased competition, changes in demand for the programs
UTI offers, increased investment in management and capital
resources, failure to comply with the restrictive covenants and
UTI's ability to pay the amounts when due under the Credit
Agreement with Fifth Third Bank, the Credit Agreement with Valley
National Bancorp, National Association, the effectiveness of UTI
student recruiting, advertising and promotional efforts, changes to
interest rates and unemployment, general economic and political
conditions, the adoption of new accounting standards, and other
risks that are described from time to time in UTI'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 SEC. Any forward-looking
statements made by UTI in this press release and the related
conference call are based only on information currently available
to UTI and speak only as of the date on which it is made. UTI
expressly disclaims 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 (UTI) uses its websites
(https://www.uti.edu/ and https://investor.uti.edu/) and LinkedIn
page
(https://www.linkedin.com/school/universal-technical-institute/) 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 UTI 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.
Founded in 1965 and headquartered in Phoenix, Universal
Technical Institute's (NYSE: UTI) mission is to serve our
students, partners, and communities by providing quality education
and support services for in-demand careers. Approximately 250,000
students have graduated from one of UTI's 15 campuses located
across Arizona, California, Florida, Illinois, Michigan, North
Carolina, Pennsylvania,
New Jersey, and Texas. UTI's campuses are accredited by the
Accrediting Commission of Career Schools and Colleges (ACCSC),
while its employer-aligned technical training programs are offered
under four brands: Universal Technical
Institute, Motorcycle Mechanics Institute / Marine Mechanics
Institute, NASCAR Technical Institute, and MIAT College of
Technology. For more information and a complete list of all
programs offered, please visit www.uti.edu or follow on
LinkedIn @UniversalTechnicalInstitute.
Company Contact:
Troy R.
Anderson
Chief Financial Officer
Universal Technical Institute, Inc.
(623) 445-9365
Media Contact:
Mark
Brenner
Vice President, Corporate Affairs & Communications
Universal Technical Institute, Inc.
(623) 445-0872
Investor Relations Contact:
Robert Winters
Alpha IR Group
(312) 445-2870
UTI@alpha-ir.com
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except
per share amounts)
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
$
100,966
|
|
$
83,768
|
|
$
308,127
|
|
$
237,602
|
Operating
expenses:
|
|
|
|
|
|
|
|
Educational services
and facilities
|
53,216
|
|
42,238
|
|
150,326
|
|
122,049
|
Selling, general and
administrative
|
45,796
|
|
38,478
|
|
138,892
|
|
113,387
|
Total operating
expenses
|
99,012
|
|
80,716
|
|
289,218
|
|
235,436
|
Income from
operations
|
1,954
|
|
3,052
|
|
18,909
|
|
2,166
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest expense,
net
|
(484)
|
|
(119)
|
|
(1,163)
|
|
(60)
|
Other (expense)
income, net
|
(291)
|
|
153
|
|
(336)
|
|
508
|
Total other (expense)
income, net
|
(775)
|
|
34
|
|
(1,499)
|
|
448
|
Income before income
taxes
|
1,179
|
|
3,086
|
|
17,410
|
|
2,614
|
Income tax (expense)
benefit
|
(336)
|
|
(86)
|
|
5,609
|
|
(78)
|
Net income
|
$
843
|
|
$
3,000
|
|
$
23,019
|
|
$
2,536
|
Preferred stock
dividends
|
1,296
|
|
1,313
|
|
3,913
|
|
3,938
|
Net (loss) income
available for distribution
|
$
(453)
|
|
$
1,687
|
|
$
19,106
|
|
$
(1,402)
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Net (loss) income per
share - basic
|
$
(0.01)
|
|
$
0.03
|
|
$
0.36
|
|
$
(0.04)
|
Net (loss) income per
share - diluted
|
$
(0.01)
|
|
$
0.03
|
|
$
0.35
|
|
$
(0.04)
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
Basic
|
33,257
|
|
32,821
|
|
33,032
|
|
32,746
|
Diluted
|
33,257
|
|
33,036
|
|
33,550
|
|
32,746
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands, except
par value and per share amounts)
(Unaudited)
|
|
|
June 30,
2022
|
|
September 30,
2021
|
Assets
|
|
Cash and cash
equivalents
|
$
70,713
|
|
$
133,721
|
Restricted
cash
|
2,627
|
|
12,256
|
Receivables,
net
|
26,592
|
|
17,151
|
Notes receivable,
current portion
|
5,506
|
|
5,538
|
Prepaid
expenses
|
7,093
|
|
6,658
|
Other current
assets
|
9,408
|
|
8,068
|
Total current
assets
|
121,939
|
|
183,392
|
Property and equipment,
net
|
207,036
|
|
122,051
|
Goodwill
|
16,859
|
|
8,222
|
Intangible
assets
|
16,244
|
|
124
|
Notes receivable, less
current portion
|
29,662
|
|
30,586
|
Right-of-use assets for
operating leases
|
139,881
|
|
159,075
|
Deferred tax asset,
net
|
3,634
|
|
—
|
Other assets
|
5,027
|
|
9,120
|
Total
assets
|
$
540,282
|
|
$
512,570
|
Liabilities and
Shareholders' Equity
|
|
|
|
Accounts payable and
accrued expenses
|
$
57,131
|
|
$
54,397
|
Dividends
payable
|
1,296
|
|
—
|
Deferred
revenue
|
42,682
|
|
57,648
|
Accrued tool
sets
|
3,615
|
|
3,292
|
Operating lease
liability, current portion
|
13,197
|
|
14,075
|
Long term debt, current
portion
|
929
|
|
876
|
Other current
liabilities
|
2,083
|
|
2,430
|
Total current
liabilities
|
120,933
|
|
132,718
|
Deferred tax
liabilities, net
|
—
|
|
674
|
Operating lease
liability
|
136,824
|
|
153,228
|
Long-term
debt
|
66,832
|
|
29,850
|
Other
liabilities
|
4,049
|
|
7,570
|
Total
liabilities
|
328,638
|
|
324,040
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity:
|
|
|
|
Common stock, $0.0001
par value, 100,000 shares authorized, 33,850 and 32,915 shares
issued
|
3
|
|
3
|
Preferred stock,
$0.0001 par value, 10,000 shares authorized; 676 shares of Series A
Convertible Preferred Stock issued and outstanding, liquidation
preference of $100 per share
|
—
|
|
—
|
Paid-in capital -
common
|
147,326
|
|
142,314
|
Paid-in capital -
preferred
|
66,481
|
|
68,853
|
Treasury stock, at
cost, 82 shares
|
(365)
|
|
(365)
|
Retained
deficit
|
(2,890)
|
|
(21,996)
|
Accumulated other
comprehensive income (loss)
|
1,089
|
|
(279)
|
Total shareholders'
equity
|
211,644
|
|
188,530
|
Total liabilities and
shareholders' equity
|
$
540,282
|
|
$
512,570
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
Nine Months Ended
June 30,
|
|
|
2022
|
|
2021
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
23,019
|
|
$
2,536
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
12,124
|
|
10,470
|
Amortization of
right-of-use assets for operating leases
|
|
12,636
|
|
11,856
|
Bad debt
expense
|
|
2,077
|
|
1,025
|
Stock-based
compensation
|
|
3,273
|
|
1,186
|
Deferred income
taxes
|
|
(6,283)
|
|
—
|
Training equipment
credits earned, net
|
|
(921)
|
|
504
|
Unrealized gain (loss)
on interest rate swap
|
|
1,368
|
|
(352)
|
Other gains (losses),
net
|
|
537
|
|
(330)
|
Changes in assets and
liabilities:
|
|
|
|
|
Receivables
|
|
(8,234)
|
|
6,093
|
Prepaid
expenses
|
|
(1,439)
|
|
(4,906)
|
Other
assets
|
|
(621)
|
|
(773)
|
Notes
receivable
|
|
956
|
|
(956)
|
Accounts payable and
accrued expenses
|
|
384
|
|
(1,693)
|
Deferred
revenue
|
|
(16,809)
|
|
1,299
|
Income tax
receivable
|
|
—
|
|
2,522
|
Accrued tool sets and
other current liabilities
|
|
891
|
|
1,122
|
Operating lease
liability
|
|
(10,778)
|
|
(13,546)
|
Other
liabilities
|
|
(4,274)
|
|
(1,274)
|
Net cash provided by
operating activities
|
|
7,906
|
|
14,783
|
Cash flows from
investing activities:
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
(26,514)
|
|
—
|
Purchase of property
and equipment
|
|
(69,615)
|
|
(54,245)
|
Proceeds from disposal
of property and equipment
|
|
7
|
|
6
|
Proceeds from
maturities of held-to-maturity securities
|
|
—
|
|
37,401
|
Return of capital
contribution from unconsolidated affiliate
|
|
188
|
|
226
|
Net cash used in
investing activities
|
|
(95,934)
|
|
(16,612)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from term
loan
|
|
38,000
|
|
31,150
|
Debt issuance costs
related to the term loan
|
|
(355)
|
|
(272)
|
Payment of preferred
stock cash dividend
|
|
(2,617)
|
|
(2,625)
|
Payments on term loans
and finance leases
|
|
(19,004)
|
|
(162)
|
Payment of payroll
taxes on stock-based compensation through shares
withheld
|
|
(633)
|
|
(401)
|
Net cash provided by
financing activities
|
|
15,391
|
|
27,690
|
Change in cash, cash
equivalents and restricted cash
|
|
(72,637)
|
|
25,861
|
Cash and cash
equivalents, beginning of period
|
|
133,721
|
|
76,803
|
Restricted cash,
beginning of period
|
|
12,256
|
|
12,116
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
145,977
|
|
88,919
|
Cash and cash
equivalents, end of period
|
|
70,713
|
|
102,856
|
Restricted cash, end of
period
|
|
2,627
|
|
11,924
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
73,340
|
|
$
114,780
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION
(In
thousands)
(Unaudited)
|
|
Reconciliation of
Net Income to EBITDA and Adjusted EBITDA
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
$
843
|
|
$
3,000
|
|
$
23,019
|
|
$
2,536
|
Interest expense,
net
|
484
|
|
119
|
|
1,163
|
|
60
|
Income tax (benefit)
expense
|
336
|
|
86
|
|
(5,609)
|
|
78
|
Depreciation and
amortization
|
4,561
|
|
3,619
|
|
12,124
|
|
10,470
|
EBITDA
|
$
6,224
|
|
$
6,824
|
|
$
30,697
|
|
$
13,144
|
Acquisition related
costs
|
314
|
|
251
|
|
3,223
|
|
1,040
|
MIAT integration
costs
|
702
|
|
—
|
|
903
|
|
—
|
Start-up costs
associated with Austin, TX and Miramar, FL campus
openings
|
3,169
|
|
79
|
|
7,466
|
|
79
|
Facility lease
accounting adjustments
|
547
|
|
—
|
|
(461)
|
|
—
|
Adjusted EBITDA,
non-GAAP
|
$
10,956
|
|
$
7,154
|
|
$
41,828
|
|
$
14,263
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow
|
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
Net cash provided by
operating activities, as reported
|
$
7,906
|
|
$
14,783
|
Purchase of property
and equipment
|
(69,615)
|
|
(54,245)
|
Free cash flow,
non-GAAP
|
(61,709)
|
|
(39,462)
|
Adjustments:
|
|
|
|
Purchase of Lisle,
Illinois campus
|
28,479
|
|
—
|
Purchase of Avondale,
Arizona campus
|
—
|
|
45,240
|
Income tax refund
received from CARES tax benefit
|
—
|
|
(2,739)
|
Acquisition related
costs paid
|
3,517
|
|
949
|
MIAT integration costs
paid
|
744
|
|
—
|
Cash outflow for
Austin, TX and Miramar, FL start-up costs
|
4,415
|
|
365
|
Cash outflow for
Austin, TX and Miramar, FL purchase of property and
equipment
|
20,930
|
|
407
|
Facility lease
accounting adjustments
|
575
|
|
—
|
Severance payment due
to CEO transition
|
32
|
|
215
|
Adjusted free cash
flow, non-GAAP
|
$
(3,017)
|
|
$
4,975
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION
(In
thousands)
(Unaudited)
|
|
Reconciliation of
Net Income to Adjusted Net Income
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
$
843
|
|
$
3,000
|
|
$
23,019
|
|
$
2,536
|
Add back: Income tax
(benefit) expense
|
336
|
|
86
|
|
(5,609)
|
|
78
|
Income before income
taxes
|
1,179
|
|
3,086
|
|
17,410
|
|
2,614
|
Adjustments:
|
|
|
|
|
|
|
|
Acquisition related costs
|
314
|
|
251
|
|
3,223
|
|
1,040
|
MIAT integration
costs
|
702
|
|
—
|
|
903
|
|
—
|
Start-up costs
associated with Austin, TX and Miramar, FL campus
openings
|
3,169
|
|
79
|
|
7,466
|
|
79
|
Facility lease
accounting adjustments
|
547
|
|
—
|
|
(461)
|
|
—
|
Adjusted income before
income taxes
|
5,911
|
|
3,416
|
|
28,541
|
|
3,733
|
Income tax effect:
(expense) benefit
|
(248)
|
|
(95)
|
|
(1,199)
|
|
(111)
|
Adjusted net income,
non-GAAP
|
$
5,663
|
|
$
3,321
|
|
$
27,342
|
|
$
3,622
|
|
|
|
|
|
|
|
|
GAAP effective income
tax rate (1)
|
4.2 %
|
|
2.8 %
|
|
4.2 %
|
|
3.0 %
|
|
|
(1)
|
The GAAP effective tax
rate for the nine months ended June 30, 2022 has been adjusted to
remove the impact from the MIAT purchase accounting adjustments for
deferred tax liabilities and the reversal of the valuation
allowance, both of which created a net tax benefit for the
period. The GAAP effective tax rate for the three months
ended June 30, 2022 has been adjusted to reflect the normalized
annual rate excluding the items noted in the nine month
rate.
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
SELECTED
SUPPLEMENTAL INFORMATION
(In
thousands)
(Unaudited)
|
|
Selected
Supplemental Financial Information
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Salaries
expense
|
$
38,576
|
|
$
33,768
|
|
$
111,649
|
|
$
98,484
|
Employee benefits and
tax
|
6,631
|
|
5,700
|
|
21,327
|
|
16,738
|
Bonus
expense
|
4,118
|
|
5,088
|
|
12,983
|
|
12,544
|
Stock-based
compensation
|
1,033
|
|
(596)
|
|
3,348
|
|
1,261
|
Total compensation and
related costs
|
$
50,358
|
|
$
43,960
|
|
$
149,307
|
|
$
129,027
|
|
|
|
|
|
|
|
|
Advertising
expense
|
$
13,382
|
|
$
10,388
|
|
$
38,275
|
|
$
30,010
|
Occupancy expense, net
of subleases
|
9,150
|
|
7,946
|
|
28,231
|
|
24,186
|
Depreciation and
amortization
|
4,561
|
|
3,619
|
|
12,124
|
|
10,470
|
Contract services
expense
|
2,953
|
|
1,874
|
|
7,682
|
|
6,083
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION FOR
FISCAL 2022 GUIDANCE
(In
thousands)
(Unaudited)
|
|
For each of the
non-GAAP reconciliations provided for fiscal 2022 guidance, we are
reconciling to the midpoint of the guidance range. The
adjustments
reflected below for fiscal 2022 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 2022
Guidance
|
|
|
Updated
|
|
Twelve Months
Ended
|
|
September
30,
|
|
2022
|
Net income
|
~ $25,000
|
Interest (income)
expense, net
|
~ 1,600
|
Income tax (benefit)
expense
|
~ (5,500)
|
Depreciation and
amortization
|
~ 17,000
|
EBITDA
|
~ $38,100
|
Acquisition related
costs
|
~ $3,800
|
MIAT integration and
program expansion costs
|
~ 2,600
|
Start-up costs
associated with Austin, TX and Miramar, FL campus
openings
|
~ 9,300
|
Facility lease
accounting adjustments
|
~ (300)
|
Adjusted EBITDA,
non-GAAP
|
~ $53,500
|
FY 2022 Guidance
Range
|
$52,000 -
$55,000
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow for Fiscal 2022 Guidance
|
|
|
Updated
|
|
Twelve Months
Ended
|
|
September
30,
|
|
2022
|
Net cash provided by
operating activities
|
~ $48,000
|
Purchase of property
and equipment
|
~ (84,000)
|
Free cash flow,
non-GAAP
|
~ $(36,000)
|
Adjustments:
|
|
Acquisition related
costs paid
|
~ 5,500
|
MIAT integration and
program expansion costs paid
|
~ 1,000
|
Cash outflow for MIAT
related program expansion purchase of property and
equipment
|
~ 2,000
|
Cash outflow for
Austin, TX and Miramar, FL start-up costs
|
~ 6,500
|
Cash outflow for
Austin, TX and Miramar, FL purchase of property and
equipment
|
~ 29,500
|
Facility lease
accounting adjustments
|
~ 600
|
Purchase of Lisle,
Illinois campus
|
~ 28,400
|
Severance payment due
to CEO transition
|
~ 30
|
Adjusted free cash
flow, non-GAAP
|
~ $37,500
|
FY 2022 Guidance
Range
|
$35,000 -
$40,000
|
UNIVERSAL TECHNICAL
INSTITUTE, INC. AND SUBSIDIARIES
RECONCILIATION OF
GAAP FINANCIAL INFORMATION TO NON-GAAP FINANCIAL
INFORMATION FOR
FISCAL 2022 GUIDANCE
(In
thousands)
(Unaudited)
|
|
Reconciliation of
Net Income to Adjusted Net Income for Fiscal 2022
Guidance
|
|
|
Updated
|
|
Twelve Months
Ended
|
|
September
30,
|
|
2022
|
Net income
|
~ $25,000
|
Add back: Income tax
(benefit) expense(1)
|
~ (5,500)
|
Income before income
taxes
|
~ 19,500
|
Adjustments:
|
|
Acquisition related
costs
|
~ $3,800
|
MIAT integration and
program expansion costs
|
~ 2,600
|
Start-up costs
associated with Austin, TX and Miramar, FL campus
openings
|
~ 9,300
|
Facility lease
accounting adjustments
|
~ (300)
|
Adjusted income before
income taxes
|
~ $34,900
|
Income tax effect:
(expense)(1)
|
~ (1,400)
|
Adjusted net income,
non-GAAP
|
~ $33,500
|
FY 2022 Guidance
Range
|
$32,000 -
$35,000
|
|
|
(1)
|
An estimated GAAP
effective tax rate of 4.0% has been used to compute the adjusted
net income for fiscal 2022 which removes the impact from the MIAT
purchase accounting adjustments for deferred tax liabilities and
the reversal of the valuation allowance.
|
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SOURCE Universal Technical
Institute, Inc.