Company to Hold Earnings Call on Monday, December 12 to Discuss Fiscal 2022
Results
PHOENIX, Nov. 21,
2022 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE:
UTI), a leading provider of transportation and technical training
programs, today announced select preliminary, unaudited financial
results for the full fiscal year ended September 30, 2022.
Highlights
- Final full-year results expected to be in line with
guidance
- Established new $100 million
revolver agreement to further strengthen capital position
- Continued progress towards closing of Concorde Career Colleges
acquisition
Select Preliminary, Unaudited Financial Results for Full
Fiscal Year 2022
- Revenue of approximately $418.8
million
- Currently anticipate adjusted EBITDA of not less than
$55.0 million (see non-GAAP
information below)
- New student starts of approximately 13,374, or growth of
approximately 2.7% year-over-year
Update on Concorde Career Colleges Acquisition
The Company continues to work towards closing the acquisition of
Concorde Career Colleges, Inc., originally announced on
May 3, 2022. In September 2022, the U.S. Department of Education
(DOE) informed the Company it had completed its Abbreviated
Pre-Acquisition Review (APAR), which was earlier than previously
expected. The transaction is currently expected to close in
December 2022, subject to the
satisfaction of remaining closing conditions.
Management Commentary
"Our preliminary results for the fiscal year reflect the
strength of our financial and operational performance, consistent
with our expectations and most recent guidance," said Jerome Grant, CEO of Universal Technical Institute. "We are also making
good progress towards closing the Concorde acquisition, having
received the DOE's APAR ahead of expectation. The acquisition of
Concorde, when completed, will mark yet another milestone as we
execute our growth and diversification strategy. We are confident
that the Concorde acquisition and our other initiatives will
position us to continue building momentum and delivering positive
performance in fiscal 2023 and beyond."
Financing Agreement
Today, the Company also announced that it has entered into a new
revolving line of credit agreement (the "revolver") with Fifth
Third Bank. The revolver provides $100
million of total capacity and includes a sub-facility of
$20 million for the issuance of
letters of credit. The interest rate on funds drawn on the revolver
is equal to the SOFR-based rate plus an additional margin of 1.75%
to 2.25% based on total company leverage. The facility has a
three-year term. Further details of the agreement are included in
the Company's 8-K, filed today.
The Company expects to use the revolver to support both current
and future business needs, which may include working capital
management, supporting internal initiatives, acquisitions and other
activities related to its growth and diversification strategy.
"Establishing the revolver and having the additional flexibility
it provides is an important component of our long-term capital
structure planning," said Troy
Anderson, CFO of Universal Technical
Institute. "It better positions us to be opportunistic as we
continue to implement our growth and diversification strategy,
including closing the Concorde acquisition and investing in our
MIAT program expansion efforts. We are pleased with the terms of
the agreement and our expanded partnership with Fifth Third Bank.
Including the revolver, we currently have approximately
$190 million of available liquidity,
with which we can easily support our near-term capital needs."
Conference Call
Universal Technical Institute will
release its fiscal 2022 fourth quarter and fiscal year results on
Monday, December 12,
2022, before market open. Jerome
Grant, Chief Executive Officer, and Troy Anderson, Chief Financial Officer, will
host a conference call at 8:30 a.m. Eastern
Time on the same day to discuss the financial results,
operating performance, and will provide guidance for
2023.
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. Alternatively, the telephone replay
can be accessed through December 26, 2022, by dialing (877)
344-7529 (domestic) or (412) 317-0088 (international) and entering
passcode 5134211.
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. 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.
Preliminary,
Unaudited Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
|
|
|
|
Twelve Months
Ended
September
30,
2022
|
Net income,
|
|
$25.2M
|
Interest expense,
net
|
|
$1.5M
|
Income tax expense
(benefit)
|
|
$(5.6)M
|
Depreciation and
amortization
|
|
$16.9M
|
EBITDA
|
|
$38.0M
|
Non-GAAP
Adjustments
|
|
$17.0M
|
Adjusted EBITDA,
non-GAAP
|
|
$55.0M
|
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. More than 250,000
students have graduated from one of UTI's 16 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.
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
2023 guidance for new student start growth (decline), revenue
growth, 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 Concorde 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, 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.
Media Contact:
Alanna Vitucci, Public Relations
Director
Universal Technical
Institute, Inc.
480-710-6843
avitucci@uti.edu
Investor Relations Contact:
Robert Winters
Alpha IR Group
(312) 445-2870
UTI@alpha-ir.com
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SOURCE Universal Technical
Institute, Inc.