Universal Technical Institute Inc · NYSE:UTI
Universal Technical Institute — Q4 2023 Earnings Presentation
46 slides from Universal Technical Institute's earnings presentation, Nov 15, 2023
Slide 1: Universal Technical Institute, Inc. Q4 2023 Investor Presentation
Universal Technical Institute, Inc. Q4 2023 Investor Presentation November 15, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Investor Presentation This presentation contains 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 19
Slide 3: Leading Workplace Solutions Education Provider
Leading Workplace Solutions Investor Education Provider Presentation Strong Financial Addressing Skills Outlook Transportation and Gaps Through Healthcare 2 Skilled Trades In-Demand Industry $705-715M Segments 2024 Revenue guidance* 33 35+ 4 / 5 20k+ $98-102M Campuses Program Grads Employed Active S
Slide 4: High-quality technical and healthcare training facilities
Investor Presentation High-quality, state-of-the- industry technical and healthcare training facilities supporting successful student outcomes 4
Slide 5: Diversified Platform of In-Demand Programs
Diversified Platform of In-Demand Programs Investor Presentation Auto/Diesel/Motorcycle/Marine Technician Dental Hygienist/Assistant Example Programs Example Programs Welding Medical Assistant Energy Technology and Wind Power Practical/Vocational/Registered Nursing Aviation Maintenance, Airframe and
Slide 6: Compelling Long-Term Investment Thesis
Compelling Long-Term Investment Thesis Investor Presentation A leading platform in critical, in-demand markets delivered through in-person, hybrid, and online formats Proven education and employment model reflected in consistently strong graduation and in-field employment rates1, and deep partnershi
Slide 7: Universal Technical Institute's Transformation Journey
Universal Technical Institute’s Investor Transformation Journey Presentation Acquisitions $710.0 $700.0 MIAT (FY2022), Concorde (FY2023) Marketing and Admissions Optimization Increased high school and local emphasis New Programs and Curriculum Multiple program expansions, MSATs, On-Base Military Pro
Slide 8: In-Demand Offerings Across Transportation, Skilled Trades, and Healthcare
In-Demand Offerings Across Transportation, Investor Skilled Trades, and Healthcare Presentation Healthcare Program Offerings 50% Dental Hygienists & Assistants Healthcare Administration Medical Assistants JOB GROWTH 2022-2032 30% Nursing 25% Physical and Occupational Therapy Assistants 20% Skilled T
Slide 9: Healthcare Platform & Program Expansions Accelerating Growth and Diversification
Healthcare Platform & Program Expansions Accelerating Growth and Investor Presentation Diversification Diversified Revenue Mix Healthcare Value Proposition UTI UTI + Concorde Overall employment in healthcare occupations is expected to result in almost Transportation 2 million new jobs annually from
Slide 10: Maximizing Program Expansion Opportunities
Maximizing Program Expansion Opportunities Investor Presentation Leveraging recent acquisitions and optimized real estate footprint to drive growth through new program offerings within existing campuses. Announced UTI Program Expansions Program Campus Aviation Avondale, AZ Long Beach, CA Miramar, FL
Slide 11: Disciplined Execution Driving Sustainable Growth
Disciplined Execution Driving Sustainable Growth Investor Presentation 30% Revenue CAGR New Concorde Campuses & UTI Organic Program Organic Concorde Expansions Full Year New Campuses & UTI Program Organic Expansions 1 Adjusted EBITDA, which excludes stock-based compensation beginning with fiscal 202
Slide 12: Future Strategic Initiatives Provide Opportunity For Continued Accelerated Growth
Future Strategic Initiatives Provide Opportunity Investor For Continued Accelerated Growth Presentation Future Incremental Opportunities1 Acquisitions Strategic and disciplined opportunities New Campus Additions Leverage blended learning and refined program mix formats to expand geographic footprint
Slide 13: Business Outlook
Business Outlook Fiscal 2024 Guidance 13
Slide 14: Fiscal 2024 Guidance
Fiscal 2024 Guidance Investor $ millions except EPS Presentation 1 Beginning in FY23 Adj EBITDA excludes stock-based compensation; prior years updated for comparison 2 Beginning in FY23, Net Income and EPS impacted by a significant effective tax rate increase due to the valuation allowance reversal
Slide 15: FY2023 - FY2024 Performance Bridges
FY2023 - FY2024* Performance Bridges Investor Presentation * Fiscal 2024 figures represent the mid-points of the Company’s guidance 15 ranges Note: Bridges are intended to provide indicative year-over-year impacts only and are not necessarily to scale For detailed reconciliations of Non-GAAP measure
Slide 16: Appendix
Appendix 16
Slide 17: Universal Technical Institute Overview
Universal Technical Institute Overview Investor Presentation A leading provider of transportation, energy and skilled trades technical training, driven to change the world one life at a time by helping people achieve their dreams. Summary Statistics Key Metrics Founded 1965 Enrollment ~15K Students
Slide 18: Concorde Career Colleges Overview
Concorde Career Colleges Overview Investor Presentation Healthcare education provider focused on preparing America’s next generation of healthcare professionals for rewarding careers in areas such as nursing, dental, patient care, and allied health. Summary Statistics Key Metrics Founded 1968 Enroll
Slide 19: Industry Partnerships That Deliver Value
Industry Partnerships That Deliver Value Investor Presentation UTI’s relationships with more than 35 leading brands, and other industry and employer partners for both UTI and Concorde, provide unique value propositions and competitive differentiation for our schools and students. 19
Slide 20: Overview of Preferred Shares
Overview of Preferred Shares Investor Presentation • June 2016: Coliseum Holdings purchased 700,000* shares of Series A Convertible Preferred Stock for $70 million – Initial 700,000 shares were convertible into 21,021,021 shares of common stock (~30:1) – Subject to NYSE voting and conversion caps, a
Slide 21: Non-GAAP Information
Non-GAAP Information 21
Slide 22: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Investor Presentation This presentation contains non-GAAP (Generally Accepted Accounting Principles) financial measures, which are intended for supplemental informational purposes only, and should not be considered substitutes for the most directly comparable GA
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Investor ($ in thousands) Presentation Guidance Actual Actual Midpoint Fiscal 2023 Fiscal 2022 Fiscal 2024 Net income (loss) ~$36,000 $12,322 $25,848 Interest (income) expense, net ~4,600 3,795 1,495 Income tax (benefit) expense ~15,400 5,765 (5,407) Depreciation and a
Slide 24: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Investor ($ in thousands) Presentation Guidance Actual Actual Midpoint Fiscal 2023 Fiscal 2022 Fiscal 2024 Cash flow provided by operating activities, as reported ~$84,500 $49,148 $46,031 Purchase of property and equipment ~(30,000) (56,685) (79,450) Free Cash
Slide 25: 25
25
Slide 26: Universal Technical Institute, Inc. Q4 2023 Financial Supplement
Universal Technical Institute, Inc. Q4 2023 Financial Supplement November 15, 2023
Slide 27: Forward-Looking Statements
Forward-Looking Statements Financial Supplement This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 193
Slide 28: Consolidated Q4 and FY 2023 Highlights
Consolidated Q4 and FY 2023 Highlights Financial Supplement Q4 2023 FY 2023 ■ Company delivered Q4 and FY23 financial results ahead of expectations on all financial metrics and in-line with student start guidance Note: See press release and investor presentation for more details on guidance, includi
Slide 29: Consolidated Q4 2023 Summary Results
Consolidated Q4 2023 Summary Results Financial ($ in millions) Supplement ($ in millions, 3 Mos. 3 Mos. YoY 12 Mos. 12 Mos. YoY except for student 9/30/23(3) 9/30/22(3) Change 9/30/23(3) 9/30/22(3) Change data) Revenues $170.3 $110.6 53.9% $607.4 $418.8 45.0% Operating expenses $160.0 $107.2 49.3% $
Slide 30: Consolidated Statements of Operations Trend
Consolidated Statements of Operations Trend Financial ($ in thousands, except EPS) Supplement 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/23 9/30/23 6/30/23 3/31/23 12/31/22(3) 9/30/22 9/30/22 6/30/22 3/31/22 12/31/21(3) Revenues $ 607,408 $ 170,298 $ 153,286 $ 163,8
Slide 31: Consolidated Results of Operations Trend
Consolidated Results of Operations Trend Financial Percent of Revenue Supplement 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. (2) 9/30/23 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 9/30/22 6/30/22 3/31/22 12/31/21(2) Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Slide 32: Quarterly Trend – Segment Key Metrics
Quarterly Trend – Segment Key Metrics Financial ($ in millions, except revenue per student amounts) Supplement ($ in millions, 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 1 Mo. except for student 9/30/23 9/30/23 6/30/23 6/30/23 3/31/23 3/31/23 12/31/22 12/31/22 data) UTI Concorde UTI Concorde U
Slide 33: Segment Results of Operations
Segment Results of Operations Financial ($ in thousands) Supplement UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Three Months Ended Year Ended September 30, 2023 September 30, 2023 Revenues $ 115,332 $ 54,966 $ — $ 170,298 Revenues $ 429,317 $ 178,091 $ — $ 607,408 Ed Serv
Slide 34: Segment Results of Operations - Fourth Quarter
Segment Results of Operations - Fourth Quarter Financial ($ in thousands) Supplement 3 Mos. % of 3 Mos. % of 3 Mos. % of 3 Mos. % of 09/30/2023 Segment 09/30/2023 Segment 09/30/2023 Consolidated 09/30/2023 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL S
Slide 35: Segment Results of Operations - Year to Date
Segment Results of Operations - Year to Date Financial ($ in thousands) Supplement 12 Mos. % of 10 Mos. % of 12 Mos. % of 12 Mos. % of 09/30/2023 Segment 09/30/2023 Segment 09/30/2023 Consolidated 09/30/2023 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL
Slide 36: New Student Starts Details
New Student Starts Details Financial Supplement 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. (1) 9/30/23 6/30/23 3/31/23 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 6/30/21 UTI Segment Total New Student Starts 6,500 3,333 2,374 1,974 5,965 3,166 2,275 1,972 6,165 2,532
Slide 37: Consolidated Balance Sheet and Cash Flow Summary
Consolidated Balance Sheet and Cash Flow Financial Summary ($ in thousands) Supplement 12 Mos. 12 Mos. At: 9/30/23(1) 9/30/22 9/30/23(1) 9/30/22(1) Cash & cash equivalents $ 151,547 $ 66,452 Net cash (used in) provided by operating activities $ 49,148 $ 46,031 Held-to-maturity investments — 28,918 C
Slide 38: Leverage Ratios
Leverage Ratios Financial Supplement Debt as of 9/30/23 Term Loan: Avondale Campus (Fifth Third Bank) Original Note Amount $31.2M Leverage as of 9/30/2023 Inception Date 5/12/2021 Current Loan Balances $157.0 Rate* Fixed/Floating LTM EBITDA $64.2 Maturity 7 years Cash & Cash Equivalents $151.5 Curre
Slide 39: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Financial Supplement This presentation contains non-GAAP (Generally Accepted Accounting Principles) financial measures, which are intended for supplemental informational purposes only, and should not be considered substitutes for the most directly comparable GAA
Slide 40: Consolidated Adjusted EBITDA Reconciliation Trend
Consolidated Adjusted EBITDA Reconciliation Trend Financial ($ in thousands) Supplement 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/23 9/30/23 6/30/23 3/31/23 12/31/22(7) 9/30/22 9/30/22 6/30/22 3/31/22 12/31/21(7) Net income (loss), as reported(1) $ 12,322 $ 6,703 $
Slide 41: Adjusted EBITDA Reconciliation By Segment
Adjusted EBITDA Reconciliation By Segment Financial ($ in thousands) Supplement Quarter to date 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/23 9/30/23(5) 9/30/23 9/30/22(5) 9/30/22 UTI Concorde Corporate UTI Corporate Net income (loss), as reported $ 16,486 $ 3,169 $ (12,952) $ 13,511 $ (10,682) Interes
Slide 42: Adjusted EBITDA Reconciliation Trend By Segment
Adjusted EBITDA Reconciliation Trend By Segment Financial Supplement ($ in thousands) Quarter to date 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 1 Mos. 3 Mos. 9/30/23 9/30/23(5) 6/30/23 6/30/23(5) 3/31/23 3/31/23(5) 12/31/22 12/31/22(5) 9/30/22(5) UTI Concorde UTI Concorde UTI Concorde UTI Con
Slide 43: Adjusted EBITDA Reconciliation By Segment
Adjusted EBITDA Reconciliation By Segment Financial ($ in thousands) Supplement Year to date 12 Mos. 10 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/23 9/30/23(5) 9/30/23 9/30/22(5) 9/30/22 UTI Concorde Corporate UTI Corporate Net income (loss), as reported $ 51,241 $ 10,700 $ (49,619) $ 62,460 $ (36,612) Inte
Slide 44: Consolidated Adjusted Net Income Trend
Consolidated Adjusted Net Income Trend Financial ($ in thousands) Supplement 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/23 9/30/23 6/30/23 3/31/23 12/31/22(1) 9/30/22 9/30/22 6/30/22 3/31/22 12/31/21(1) Net income (loss) $ 12,322 $ 6,703 $ (509) $ 3,480 $ 2,648 $ 25
Slide 45: Consolidated Adjusted Free Cash Flow
Consolidated Adjusted Free Cash Flow Financial ($ in thousands) Supplement 3 Mos. 3 Mos. 3 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/23(8) 9/30/22 9/30/21 9/30/23(8) 9/30/22(8) 9/30/21(8) Cash flow provided by operating activities, as reported $53,881 $38,125 $40,402 $49,148 $46,031 $55,185 Purchase of prop
Slide 46: AN A : N = ———
AN A : N = ——— —_ NA — == \ a — === \ “ « AN SS AY < \S
Universal Technical Institute — Q4 2023 Earnings Presentation on 6ix