Universal Technical Institute Inc · NYSE:UTI
Universal Technical Institute — Investor Presentation (February 2022)
40 slides from Universal Technical Institute's investor presentation, Feb 3, 2022
Slide 1: Universal Technical Institute Investor Presentation
Universal Technical Institute Investor Presentation February 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: Introduction
, Introduction
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 ~13K ~5,000 Incentive & Tuition Current Reimbursement Students1 Employer 35+ ~65% Locations2 Manufacturing Brand Graduation Rate3 Partners >80% $99.5M 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 MIAT: Canton, MI MIAT: Houston, TX PAGE 6
Slide 7: Strong Demand for Our Technicians
Strong Demand for Our Technicians Aircraft Mechanics & Techs Auto/Diesel Technicians JOB GROWTH 2020-2030 15% Auto Body Repairers HVACR Mechanics & Installers 10% Welding Wind Turbine Service Techs 5% 0% ANNUAL JOB OPENINGS 2020-2030 PAGE 7 Projections as per the U.S. Bureau of Labor Statistics www.
Slide 8: Ongoing Company Transformation
Ongoing Company Transformation MIAT Acquisition Closed Revenue and Margin Growth Nov. 2021 $450.0 Marketing 15.0% 3 New Campuses: Optimization and Increased 13.0% Bloomfield, NJ 2018 $400.0 12.7% Austin, TX 2022 High School 11.0% Miramar, FL 2022 and Local Emphasis 9.7% 9.0% $350.0 7.0% 5.1% RESULTS
Slide 9: 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 10: 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 Chief Information Of
Slide 11: Growth & Diversification Strategy
Growth & Diversification Strategy
Slide 12: Near-Term Capital Allocation Priorities
Near-Term Capital Allocation Priorities Management and Board are prudently allocating capital in support of the initial steps of the Company’s growth and diversification strategy, while continuing to explore incremental opportunities NEW PROGRAM CAMPUSES EXPANSIONS Austin, TX and Miramar, FL on trac
Slide 13: Double-Digit Revenue & Adjusted EBITDA Margin Growth
Double-Digit Revenue & Adjusted EBITDA Margin Growth Current initiatives expected to drive >10% Revenue CAGR and Adjusted EBITDA margin expansion; Actively evaluating additional opportunities to drive incremental growth and shareholder value FY2020-2025 Outlook Including Announced Initiatives Baseli
Slide 14: New Campuses Leverage Blended Learning Model
New Campuses Leverage 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 • Increased Program & Scheduling Flexibility • Real Es
Slide 15: MIAT College of Technology Overview
MIAT College of Technology Overview 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: • Composite Score: 3.0 (of 3.0) FY
Slide 16: 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 17: FY2022 Guidance
FY2022 Guidance ($ millions) Strong performance projected to continue to drive double-digit expansion on both top and bottom lines New Student Start Growth Revenue Adjusted EBITDA2 (Decline)1 $405-$420 $50-$55 14%-19% 15.5% $331.5 $335.1 $32.5 11.5% $300.8 $17.0 $14.0 (2.4)% 2019 2020 2021 2022E 201
Slide 18: FY 2022 Starts and Revenue Bridges
FY 2022 Starts and Revenue Bridges PAGE 18 Note: Bridges are intended to provide indicative year-over-year impacts only
Slide 19: Disciplined Execution Driving Strategic Growth
Disciplined Execution Driving Strategic Growth UTI has taken the initial definitive steps to meaningfully and rapidly advance its growth & diversification strategy, and will continue to evaluate all opportunities available to drive additional expansion and shareholder value Announced Targeted Increm
Slide 20: Student Value Proposition
Student Value Proposition
Slide 21: 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 22: 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 23: 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 24: Learning Experience Evolution
Learning Experience Evolution 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-person, On-line asy
Slide 25: Well-Positioned National Campus Network
Well-Positioned National Campus Network Available capacity to increase students plus additional market opportunities to add rapidly accretive campuses 14 campuses in 9 states, with 2 more campuses opening in 2022 ~2.3M total square feet Located in high-demand job markets Easy access to major populat
Slide 26: Industry Partnerships that Deliver Value
Industry Partnerships that Deliver Value UTI’s relationships with more than 35 leading brands and other industry partners provide a unique value proposition and competitive differentiation for the school and its students Established New and Expanded Partners Relationships Relationships • Efficient h
Slide 27: Industry Leader with a Strong Value Proposition
Industry Leader with a Strong Value Proposition UTI’s position as an industry leader in technical education, state-of-the-industry campuses & curriculum, and progress in its growth and diversification strategy benefit its students, employees, and shareholders alike PAGE 27
Slide 28: Appendix
APPENDIX
Slide 29: 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 30: 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 $70 million • Shares are convertible into 21,021,021 shares of common stock (~30:1) • Subject to NYSE voting and conversion caps, and certain education regulatory approval
Slide 31: Compliance Statistics
Compliance Statistics
Slide 32: UTI Department of Education Regulatory Metrics Well Within Required Boundaries
UTI Department of Education Regulatory Metrics Well Within Required Boundaries The Department of Education uses the following three regulatory metrics when assessing for-profit school performance: 90/10: Regulation that governs for-profit higher education capping the percentage of revenue that a sch
Slide 33: Summary of UTI Annual Report Data Submitted to ACCSC
Summary of UTI Annual Report Data Submitted to the Accrediting Commission of Career Schools and Colleges (ACCSC) Total Students Completion Students Available Total Employment Total Grads Avail. For Grad. Percentage for Employment Employed Percentage Avondale, AZ 1,655 1,186 71.7% 1,024 844 82.4% Dal
Slide 34: Department of Education Regulatory Metrics
Department of Education Regulatory Metrics Federal Funding by Classification ($ 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 35: Non-GAAP Information
Non-GAAP Information
Slide 36: 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 37: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Guidance Actual Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/19 9/30/22 Net income (loss) ~$23,000 $14,581 $8,008 ($7,868) Interest (income) expense, net ~800 282 (1,142) 1,729 Income tax (benefit) expense ~1000 602 (10,6
Slide 38: Adjusted Net Income (Loss) Reconciliation
Adjusted Net Income (Loss) Reconciliation ($ in thousands) Guidance Actual Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/19 9/30/22 Net income (loss) ~$23,000 $14,581 $8,008 $ (7,868) Income tax (benefit) expense ~1,000 602 (10,602) 203 Income (Loss) before income taxes
Slide 39: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation ($ in thousands) Guidance Actual Actual Actual Midpoint 12 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/21 9/30/20 9/30/19 9/30/22 Cash flow provided by (used in) operating activities, as reported ~$60,000 $55,185 $ 11,032 $ 21,746 Purchase of property and equipment ~(62,
Slide 40: Universal Technical Institute
INIVERSAL TECHNICAL INSTITUTE
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