Universal Technical Institute Inc · NYSE:UTI
Universal Technical Institute — Investor Presentation (December 2022)
32 slides from Universal Technical Institute's investor presentation, Dec 12, 2022
Slide 1: Universal Technical Institute Investor Presentation
Universal Technical Institute Investor Presentation December 12, 2022 2022 Universal Technical Institute, Inc. All rights reserved. For additional information please see Company public filings and the Financials section of our investor website
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 1933, as amended, and Se
Slide 3: Overview
, Overview
Slide 4: A Leading Provider of Transportation and Skilled Trades Technical Training Programs, and Healthcare Education
A Leading Provider of Transportation and Skilled Trades Technical Training Programs, and Healthcare Education UTI Concorde $95.4M Cash & Acquired Investments1 December 2022 1965 $418.8M ~$200M Founded TTM Revenue1 TTM Revenue3 35+ $60.2M TTM Adj EBITDA1,2 + 1968 Founded ~250K Manufacturing Total ~$1
Slide 5: UTI Enters Healthcare Education with Concorde Career Colleges
UTI Enters Healthcare Education with Concorde Career Colleges Universal Technical Institute Expands Platform of Workforce Solutions Offerings with Completion of Why Healthcare: Concorde Career Colleges, Inc. Acquisition Expands UTI’s addressable market in high-growth PHOENIX, Dec. 1, 2022 -- Unive
Slide 6: Example Program Offerings
A Leading Workforce Solutions Provider of Transportation, Energy, Skilled Trades, and Healthcare Education Auto/Diesel/Motorcycle/Marine Technician Dental Hygienist/Assistant Example Program Offerings Example Program Offerings Welding Medical Assistant Energy Technology and Wind Power Practical/Voca
Slide 7: Multi-Year Company Transformation
Multi-Year Company Transformation Purchase Price: $50M Purchase Price: $26M TTM Revenue: $200M1 Acquisitions TTM Revenue: $29M1 Concorde Closed Dec.2022 $602.5 $600.0 Revenue and Adjusted EBITDA2 MIAT Closed Nov.2021 Marketing and $550.0 $60.2 $60.0 New Campuses Admissions Optimization Bloomfield, N
Slide 8: Investment Thesis
Investment Thesis A leading platform of 35+ education programs in critical, in-demand transportation, skilled trade and healthcare markets delivered through in-person, hybrid, and online formats Proven education and employment model reflected in consistently strong graduation and in-field employment
Slide 9: Growth & Diversification Strategy
Growth & Diversification Strategy
Slide 10: Focused Growth Drivers
Focused Growth Drivers Organic Investments Inorganic Growth Opportunities • Concorde acquisition provides diversified • Continued go-to-market and business healthcare platform Baseline model optimization Healthcare • Opportunity for future expansion into • Pursuing additional B2B and non-Title- Busi
Slide 11: Impressive Growth Trajectory
Impressive Growth Trajectory Current initiatives along with the addition of Concorde significantly accelerate growth leading to estimated FY2024 revenue in excess of $700 million and estimated adjusted EBITDA* approaching $100 million, with opportunity for further growth in both measures in subseque
Slide 12: Addition of In-Demand Healthcare Offerings Further Enhances Future Growth Opportunities
Addition of In-Demand Healthcare Offerings Further Enhances UTI’s Future Growth Opportunities Concorde Program Offerings 50% Dental Hygienists & Assistants Healthcare Administration Medical Assistants JOB GROWTH 2021-2031 30% Nursing 25% Physical and Occupational Therapy Assistants 20% Aircraft Mech
Slide 13: Concorde Acquisition Accelerates Diversification Across Multiple Dimensions
Concorde Acquisition Accelerates Diversification Across Multiple Dimensions The acquisition of Concorde diversifies UTI across key dimensions supporting a steady growth trajectory and expanding future growth and diversification opportunities Revenue by Product Offering Student Demographics UTI UTI +
Slide 14: Disciplined Execution Driving Strategic Growth
Disciplined Execution Driving Strategic Growth With the acquisition of Concorde, UTI is strategically positioned to not only execute on its previously established longer-term targets for the growth and diversification strategy, but also expand the scope of the strategy going forward. Announced Futur
Slide 15: Fiscal 2023 Guidance
Fiscal 2023 Guidance
Slide 16: FY2023 Guidance
FY2023 Guidance ($ millions) New Student Starts Revenue Growth Adjusted EBITDA1 22k-23.5k $595-$610 $58-$62 $60.2 13,028 13,374 $418.8 $34.2 11,283 $335.1 $300.8 $16.0 2020 2021 2022 2023* 2020 2021 2022 2023* 2020 2021 2022 2023* Adjusted Net Income2 Adjusted Free Cash Flow3 Expected Segment** Cont
Slide 17: FY2022 - FY2023 Performance Bridges
FY2022 - FY2023* Performance Bridges MIAT New Program Base & Campuses Expansions MIAT (net) MIAT New Program Base & Campuses Expansions MIAT (net) Base & MIAT (net) Adjusted EBITDA New Campuses Base & MIAT (net) includes the revenue impact of FY22 new student starts shortfall, partially Base & offse
Slide 18: Appendix
APPENDIX
Slide 19: Talented and Deeply Experienced Management Team Driving Company's Pivot to Growth
Talented and Deeply Experienced Management Team Driving Company’s Pivot to Growth Chief Executive Officer EVP & Chief Financial Officer EVP Campus Operations & Services Jerome Grant Troy Anderson Sherrell Smith joined 2017 joined 2019 joined 1986 SVP Chief Commercial Officer SVP Healthcare Division
Slide 20: Highly Qualified Board of Directors
Highly Qualified Board of Directors Robert DeVincenzi David Blaszkiewicz George Brochick Non-Executive Chairman President and Chief Executive Vice President Executive Officer, of Strategic Development, Principal, Lupine Ventures; Invest Detroit Penske Automotive Former President and CEO of Group Red
Slide 21: UTI Overview
UTI Overview Leading provider of transportation and energy and skilled trades technical training, driven to change the world one life at a time by helping people achieve their dreams. SUMMARY STATISTICS FOUNDED: 1965 KEY METRICS2: • Composite Score: 2.3 (of 3.0) REVENUE1: $419M Adj. EBITDA1: $60M •
Slide 22: Concorde Career Colleges Overview
Concorde Career Colleges Overview 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 FOUNDED: 1968 KEY METRICS2: • Composite Score: 2.0 (of
Slide 23: Transportation Industry Partnerships that Deliver Value
Transportation Industry Partnerships that Deliver Value UTI’s relationships with more than 35 leading brands and other industry and employer partners provide a unique value proposition and competitive differentiation for the school and its students Established New and Expanded Partners Relationships
Slide 24: Optimizing Real Estate Footprint for Efficiency
Optimizing Real Estate Footprint for Efficiency Transformation across UTI’s Real Estate portfolio yielding significant cost and utilization improvements Rationalize Welding Other Programs Keys to Real Estate Campus In Process Complete In Process Complete In Process Complete Total Sq. Ft Transformati
Slide 25: Overview of UTI Preferred Shares
Overview of UTI Preferred Shares • June 2016: Sold Coliseum Holdings 700,000* shares of Series A Convertible Preferred Stock for $70 million • Shares are convertible into 21,021,021 shares of common stock (~30:1) • Subject to NYSE voting and conversion caps, and certain education regulatory approval
Slide 26: Overview of UTI Leverage and Debt Obligations
Overview of UTI Leverage and Debt Obligations As of 9/30/2022 Proforma 9/30/2023 Debt Debt Term Loan: Fifth Third Bank Term Loans Collateral: Avondale Campus Original Note Amounts $69.2M Original Note Amount $31.2M LTM Mandatory Amortization on Loans $1.1M Inception Date 5/12/2021 Projected Note Bal
Slide 27: Non-GAAP Information
Non-GAAP Information
Slide 28: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information This presentation contains non-GAAP (Generally Accepted Accounting Principles) financial measures, which are intended to supplement, but not substitute for, the most directly comparable GAAP measures. Management chooses to disclose to investors these non-GAAP fi
Slide 29: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 9/30/22 9/30/21 9/30/23 Net income (loss) ~$9,000 $25,848 $14,581 Interest (income) expense, net ~4,500 1,495 282 Income tax (benefit) expense ~3,000 (5,407) 602 Depreciation and amortization ~27,
Slide 30: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 9/30/23 9/30/22 9/30/21 Net income (loss) ~$9,000 $25, 848 $14,581 Income tax (benefit) expense(1) ~3,000 (5,407) 602 Income (Loss) before income taxes ~12,000 20,441 15,183 Acquisition-related
Slide 31: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 9/30/22 9/30/21 9/30/23 Cash flow provided by (used in) operating activities, as reported ~$51,750 $46,031 $55,185 Purchase of property and equipment ~(38,000) (79,457) (61,586) Free Cash
Slide 32: Universal Technical Institute
INIVERSAL TECHNICAL INSTITUTE
Universal Technical Institute — Investor Presentation (December 2022) on 6ix