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Mar 31, 2021
UTI Q2 2021 Earnings Report
Reported a decrease in revenue but an increase in new student starts.
Key Takeaways
Universal Technical Institute reported a decrease in revenue of 6.1% to $77.7 million for the second quarter of 2021, while new student starts increased by 14.9%. The company reaffirmed its fiscal year 2021 guidance and announced plans to launch two new campuses and acquire MIAT College of Technology.
New student starts increased 14.9% year-over-year.
Revenue decreased 6.1% to $77.7 million compared to the prior year quarter.
Announced plans to launch two new campuses and acquire MIAT College of Technology.
Management reaffirms fiscal year 2021 guidance.
Forward Guidance
Assuming the successful execution of the MIAT acquisition and launch of our two new campuses within the planned timelines, we estimate average annual revenue growth should exceed 10% over the next several years, resulting in revenue solidly over $500 million by fiscal 2025, with adjusted EBITDA margin in excess of 20%.
Positive Outlook
- Expected accretive effects of announced initiatives and potential additional opportunities for growth.
- Successful closing of the MIAT acquisition.
- Successfully integration of MIAT with UTI.
- Launch of two new campuses within the planned timeframe.
- New campuses will allow for higher margins.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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