44 slides from Universal Technical Institute's investor presentation, Aug 3, 2022
Slide 1: Universal Technical Institute Investor Presentation
Universal Technical Institute Investor Presentation August 3, 2022 2022 Universal Technical Institute, Inc. All rights reserved. For additional financial 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
a Overview
Slide 4: A Leading Provider of Transportation and Technical Training Programs
A Leading Provider of Transportation and Technical Training Programs 1965 ~250K Total Founded Graduates ~12K >5,000 Incentive & Tuition Current Reimbursement Students1 Employer 35+ ~65% Locations2 Manufacturing Brand Graduation Rate3 Partners >80% $70.7M In-Field Cash & Employment Investments1 Rate4
Slide 5: State-of-the-Industry Technology and Training
State-of-the-Industry Technology and Training PAGE 5
Slide 6: Impressive Training Facilities Nationwide
Impressive Training Facilities Nationwide Austin, TX Avondale, AZ (UTI/MMI) Bloomfield, NJ Dallas/Ft. Worth, TX Canton, MI (MIAT) Exton, PA Houston, TX Houston, TX (MIAT) Lisle, IL Long Beach, CA Miramar FL* Mooresville, NC (NTI) Orlando, FL (UTI/MMI) Rancho Cucamonga, CA Sacramento, CA * Miramar, F
Slide 7: Ongoing Company Transformation
Ongoing Company Transformation Concorde Definitive Agreement Signed May 2022 MIAT Closed Nov. 2021 Revenue and Margin Growth Marketing Optimization $415.0 16.0% 3 New Campuses: Bloomfield, NJ 2018 and Increased $400.0 High School 12.9% Austin, TX 2022 $331.5 $335.1 Miramar, FL 2022 and Local $317.0
Slide 8: Investment Thesis Highlights
Investment Thesis Highlights Executing on strategic and transformation plans, and building momentum toward ever-stronger results Attractive student value proposition including Significant industry and OEM expanded programs and partnerships supporting blended learning model student success Business m
Slide 9: Talented and Deeply Experienced Management Team
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 Chief Information Of
Slide 10: Growth & Diversification Strategy
Growth & Diversification Strategy
Slide 11: UTI Growth and Diversification Strategy Recap
UTI Growth and Diversification Strategy Recap Company’s Management and Board are prudently allocating capital to drive its growth and diversification strategy, while continuing to explore incremental opportunities NEW PROGRAM CAMPUSES EXPANSIONS Austin, TX and Miramar, FL opened in 4 welding launche
Slide 12: Accelerated Revenue and Margin Growth
Accelerated Revenue and Margin Growth With the addition of Concorde*, expected growth would accelerate versus our prior view leading to estimated FY2025 revenue in excess of $700 million, with estimated adjusted EBITDA margin of ~20% • Significantly accretive Concorde • Diversification into high-dem
Slide 13: UTI to Acquire Concorde Career Colleges
UTI to Acquire Concorde Career Colleges Universal Technical Institute Takes the Next Step in its Growth and Diversification Strategy with a Definitive Agreement to Acquire Concorde Career Colleges, Inc. Expands Universal Technical Institute’s Career-Focused Education Brand into Growing Healthcare Fi
Slide 14: Concorde Acquisition Rationale
Concorde* Acquisition Rationale Significant acquisition 1 2 3 adds an established Ability to leverage brand in the highly Regulatory metrics and combined scale, attractive healthcare student demographics creating new end-market, expanding meaningfully opportunities for UTI’s role as a leading comple
Slide 15: Pending Addition of High Demand Healthcare Offerings
Pending Addition of High Demand Healthcare Offerings Further Enhances UTI’s Future Growth Opportunity Concorde Program Offerings Dental Hygienists & Assistants Healthcare Administration Medical Assistants JOB GROWTH 2020-2030 30% Nursing 25% Physical and Occupational Therapy Assistants 20% Aircraft
Slide 16: 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: 1.97 (
Slide 17: Growth & Diversification Strategy Alignment: Why Healthcare?
Growth & Diversification Strategy Alignment: Why Healthcare? Ever-increasing demand for healthcare workers continues to far outpace supply, aligning to UTI’s mission as a leading workforce solutions provider for fast-growing fields Demand Drivers for Healthcare Professionals: Benefits to UTI of Ente
Slide 18: Concorde Acquisition Will Accelerate Diversification Across Multiple Dimensions
Concorde* Acquisition Will Accelerate Diversification Across Multiple Dimensions The acquisition of Concorde will diversify UTI across key dimensions further reducing seasonality and supporting a steady growth trajectory Revenue by Product Offering Student Demographics UTI UTI + Concorde UTI UTI + C
Slide 19: MIAT College of Technology Overview
MIAT College of Technology Overview Acquisition closed 11/1/2021 ACCSC-accredited vocational and technical school offering a variety of programs complementary and accretive to UTI offerings accelerates realization of UTI’s growth and diversification strategy SUMMARY FOUNDED: 1969 KEY METRICS2: • Com
Slide 20: Two New Campuses Opening in Fiscal 2022 Optimized Around Blended Learning
Two New Campuses Opening in Fiscal 2022 are Fully Optimized Around the Blended Learning Model Proven new campus model further enhanced by fully integrating blended learning curriculum delivery, providing value for both the student and the Company Benefits to the Student Benefits to the Company • Inc
Slide 21: 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 22: FY2022 Guidance – Updated 8/3/2022
FY2022 Guidance – Updated 8/3/2022 ($ millions) Strong performance projected to continue to drive double-digit expansion on both top and bottom lines New Student Start Growth (Decline)1 Revenue Growth Adjusted EBITDA2 $410-420 $52-55 15.5% 11.5% Low to Mid $32.5 Single Digits $331.5 $335.1 $300.8 $1
Slide 23: Disciplined Execution Driving Strategic Growth
Disciplined Execution Driving Strategic Growth With the Concorde announcement, UTI takes another definitive step to meaningfully and rapidly advance its growth & diversification strategy, with opportunities for future incremental opportunities to drive further growth and shareholder value Announced
Slide 24: Student Value Proposition
Student Value Proposition
Slide 25: UTI Student Lifecycle
UTI Student Lifecycle By continually refining our approach to student outreach and constantly improving our educational delivery model and the overall student experience, UTI produces outstanding success rates for the students we exist to serve ~7K Employed* Field Leads ~9K Media Workable Graduates*
Slide 26: Marketing Approach to Address the Skills Gap in the Labor Force
Marketing Approach to Address the Skills Gap in the Labor Force Targeted, multi-faceted outreach generating more quality leads and optimizing advertising spend Direct Response Drive-to-Campus Direct Mail Manifesto Testimonials Events Landing Page Event Profile Page Bookings Page ✓Focused localized m
Slide 27: Evolving Strategy to Better Reach and Engage Students
Evolving Strategy to Better Reach and Engage Students ADULT LEARNERS FY21 Starts by Channel Optimizing traditional and digital advertising to generate inquiries motivated HIGH SCHOOL GRADS by robust opportunities in Adult the job market 44% HIGH SCHOOL GRADUATES Adding reps and enhanced High marketi
Slide 28: Learning Experience Evolution is Well Underway
Learning Experience Evolution is Well Underway Improving engagement, best practices, and alignment to industry and lifelong learning while also driving efficiencies in our operating model and campus real estate utilization Traditional Model Interim Blended Model Future Blended Model On-campus, in-pe
Slide 29: Well-Positioned National Campus Network
Well-Positioned National Campus Network Available capacity to increase students plus additional market opportunities to add rapidly accretive campuses 16 campuses in 9 states ~2.2M total square feet Located in high-demand job markets Easy access to major populations PAGE 29
Slide 30: Industry Partnerships that Deliver Value
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 Relationships
Slide 31: Industry Leader with a Strong Value Proposition
Industry Leader with a Strong Value Proposition UTI’s position as leading workforce solutions provider, state-of-the-industry campuses & curriculum, and progress in its growth and diversification strategy benefits its students, employees, and shareholders alike PAGE 31
Slide 32: Appendix
APPENDIX
Slide 33: 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 Universal Technical Institute; Executive Officer, of Strategic Development, Principal, Lupine Ventures; Invest Detroit Penske Automotive Forme
Slide 34: 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 $70 million • Shares are convertible into 21,021,021 shares of common stock (~30:1) • Subject to NYSE voting and conversion caps, and certain education regulatory approval
Slide 35: Compliance Statistics
Compliance Statistics
Slide 36: UTI Department of Education Regulatory Metrics Well Within Required Boundaries
UTI Department of Education Regulatory Metrics Well Within Required Boundaries The Department of Education uses the following three regulatory metrics when assessing for-profit school performance: 90/10: Regulation that governs for-profit higher education, capping the percentage of revenue that a sc
Slide 37: Summary of UTI Annual Report Data Submitted to ACCSC
Summary of UTI Annual Report Data Submitted to the Accrediting Commission of Career Schools and Colleges (ACCSC) Total Students Completion Students Available Total Employment Total Grads Avail. For Grad. Percentage for Employment Employed Percentage Avondale, AZ 1,655 1,186 71.7% 1,024 844 82.4% Dal
Slide 38: Department of Education Regulatory Metrics
Department of Education Regulatory Metrics Federal Funding by Classification ($ in millions) Avondale Houston MMI Avondale Houston MMI FY 2021 (10/1/20 – 9/30/21) Consolidated Consolidated OPEID1 OPEID2 OPEID3 OPEID1 OPEID2 OPEID3 Amounts Title IV 97.3 76.8 54.8 229.0 Proportions 83.1% 84.5% 78.8% 8
Slide 39: Non-GAAP Information
Non-GAAP Information
Slide 40: 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 for supplemental informational purposes only, and should not be considered substitutes for the most directly comparable GAAP measures. Managem
Slide 41: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/22 Net income (loss) ~$25,000 $14,581 $8,008 Interest (income) expense, net ~1,600 282 (1,142) Income tax (benefit) expense ~(5,500) 602 (10,602) Depreciation and amortization
Slide 42: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/22 Net income (loss) ~$25,000 $14,581 $8,008 Income tax (benefit) expense(1) ~(5,500) 602 (10,602) Income (Loss) before income taxes ~19,500 15,183 (2,594) Acquisit
Slide 43: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation ($ in thousands) Guidance Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/22 Cash flow provided by (used in) operating activities, as reported ~$48,000 $55,185 $ 11,032 Purchase of property and equipment ~(84,000) (61,586) (9,262) Free Cash
Slide 44: Universal Technical Institute
INIVERSAL TECHNICAL INSTITUTE