Universal Technical Institute Inc · NYSE:UTI

Universal Technical Institute — Q2 2024 Earnings Presentation

22 slides from Universal Technical Institute's earnings presentation, May 8, 2024

  1. Slide 1: Q2 FY24 Financial Supplement

    May 8, 2024 Universal Technical Institute, Inc. Q2 FY24 Financial Supplement

  2. 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

  3. Slide 3: Consolidated Q2 2024 Highlights

    Consolidated Q2 2024 Highlights Q2 2024 Revenue $184.2 million Net Income $7.8 million Adjusted EBITDA $22.6 million Diluted Earnings Per Share $0.14 PAGE 3 ■ Company delivered Q2 financial results ahead of expectations and revised fiscal 2024 guidance follows: ■ New Student Starts – Raised range to

  4. Slide 4: Q2 2024 Summary Results

    Consolidated Q2 2024 Summary Results ($ in millions) ($ in millions, except for student data) 3 Mos. 3/31/24 3 Mos. 3/31/23 YoY Change 6 Mos. 3/31/24 6 Mos. 3/31/23(2) YoY Change Revenues $184.2 $163.8 12.4% $358.9 $283.8 26.4% Operating expenses $173.0 $157.9 9.6% $333.4 $273.4 22.0% Ed Services $9

  5. Slide 5: Statements of Operations Trend

    Consolidated Statements of Operations Trend ($ in thousands, except EPS) 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(3) 3 Mos. 9/30/23 3 Mos. 6/30/23 3 Mos. 3/31/23 3 Mos. 12/31/22(3) 12 Mos. 9/30/22 Revenues $ 184,176 $ 174,695 $ 607,408 $ 170,298 $ 153,286 $ 163,820 $ 120,004 $ 418,765 Operatin

  6. Slide 6: Results of Operations Trend

    Consolidated Results of Operations Trend Percent of Revenue 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3/31/24 12/31/23 9/30/2023(2) 9/30/23 6/30/23 3/31/23 12/31/22(2) 9/30/22 Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating Expenses: Educational services an

  7. Slide 7: Quarterly Trend – Segment Key Metrics

    Quarterly Trend – Segment Key Metrics ($ in millions, except revenue per student amounts) ($ in millions, except for student data) 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 UTI UTI UTI UTI U

  8. Slide 8: Segment Results of Operations: Second Quarter

    3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3/31/24 3/31/24 3/31/24 3/31/24 3/31/23 3/31/23 3/31/23 3/31/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 123,323 $ 60,853 $ — $ 184,176 $ 107,560 $ 56,260 $ — $ 163,820 Ed Services 60,100 37,388 — 97,48

  9. Slide 9: Segment Results of Operations: Year-to-Date

    6 Mos. 6 Mos. 6 Mos. 6 Mos. 6 Mos. 6 Mos. 6 Mos. 6 Mos. 3/31/24 3/31/24 3/31/24 3/31/24 3/31/23 3/31/23 3/31/23 3/31/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 238,697 $ 120,174 $ — $ 358,871 $ 213,133 $ 70,691 $ — $ 283,824 Ed Services 117,468 72,429 — 189

  10. Slide 10: Segment Expense Details: Second Quarter

    Segment Expense Details: Second Quarter ($ in thousands) 3 Mos. % of 3 Mos. % of 3 Mos. % of 3 Mos. % of 03/31/2024 Segment 03/31/2024 Segment 03/31/2024 Consolidated 03/31/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPEN

  11. Slide 11: Segment Expense Details: Year-to-Date

    Segment Expense Details: Year-to-Date ($ in thousands) 6 Mos. % of 6 Mos. % of 6 Mos. % of 6 Mos. % of 03/31/2024 Segment 03/31/2024 Segment 03/31/2024 Consolidated 03/31/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPENSE

  12. Slide 12: New Student Starts Details

    New Student Starts Details 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 Total Segment Total New Student Starts 5,480 4,346 10,392 5,300 4,626 2,295 Y/Y growth/(decline)(1) 18.5% —% —% —% —% —% UTI Segment Total New Student Starts 2,840 2,314 6,500 3,333

  13. Slide 13: Balance Sheet and Cash Flow Summary

    Consolidated Balance Sheet and Cash Flow Summary ($ in thousands) At: 03/31/24 9/30/23 Cash & cash equivalents $ 116,099 $ 151,547 Total current assets 170,234 204,985 PP&E (net) 263,538 266,346 Right-of-use assets for operating leases 169,626 176,657 Total assets 702,088 740,685 Operating lease lia

  14. Slide 14: Earnings Per Share Trend and Guidance

    Earnings Per Share Trend and Guidance ($ in thousands, except EPS) Guidance Fiscal 2024 Midpoint Actual 3 Mos. 3/31/24 Actual 3 Mos. 12/31/23 Actual 12 Mos. 9/30/23(1) Actual 3 Mos. 9/30/23 Actual 3 Mos. 6/30/23 Actual 3 Mos. 3/31/23 Actual 3 Mos. 12/31/22(1) Net Income (loss) ~$37,000-41,000 $ 7,78

  15. Slide 15: Leverage as of 3/31/2024

    Leverage as of 3/31/2024 Current Loan Balances $141.8M LTM EBITDA $77.8 Cash & Cash Equivalents $116.1 Gross Leverage Ratio 1.82x Net Leverage Ratio 0.33x Debt Term Loan: Avondale Campus (Fifth Third Bank) Original Note Amount $31.2M Inception Date 5/12/2021 Rate* Fixed/Float Maturity 7 years Curren

  16. Slide 16: Use of Non-GAAP Financial Information

    Use of Non-GAAP Financial Information PAGE 16 In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information. These financial measures are not recognized meas

  17. Slide 17: Adjusted EBITDA Reconciliation Trend: Quarter-to-Date

    Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) QUARTER-TO-DATE 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(9) 3 Mos. 9/30/23 3 Mos. 6/30/23 3 Mos. 3/31/23 3 Mos. 12/31/22(9) 12 Mos. 9/30/22 Net income (loss), as reported(1) $ 7,787 $ 10,389 $ 12,322 $ 6,703 $ (509) $ 3,480 $ 2

  18. Slide 18: Adjusted EBITDA Reconciliation Trend: Year-to-Date

    Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) YEAR-TO-DATE 6 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(9) 9 Mos. 6/30/23(9) 6 Mos. 3/31/23(9) 3 Mos. 12/31/22(9) 12 Mos. 9/30/22 Net income, as reported(1) $ 18,176 $ 10,389 $ 12,322 $ 5,619 $ 6,128 $ 2,648 $ 25,848 Interest exp

  19. Slide 19: Adjusted EBITDA Reconciliation By Segment: Quarter-to-Date

    Adjusted EBITDA Reconciliation By Segment ($ in thousands) QUARTER-TO-DATE 3 Mos. 3/31/24 3 Mos. 3/31/24 3 Mos. 3/31/24 3 Mos. 3/31/23 3 Mos. 3/31/23 3 Mos. 3/31/23 UTI Concorde Corporate UTI Concorde Corporate Net income (loss), as reported $ 16,616 $ 3,320 $ (12,149) $ 8,821 $ 6,237 $ (11,578) Int

  20. Slide 20: Adjusted EBITDA Reconciliation By Segment: Year-to-Date

    Adjusted EBITDA Reconciliation By Segment ($ in thousands) YEAR-TO-DATE 6 Mos. 3/31/24 6 Mos. 3/31/24 6 Mos. 3/31/24 6 Mos. 3/31/23 6 Mos. 3/31/23(1) 6 Mos. 3/31/23 UTI Concorde Corporate UTI Concorde Corporate Net income (loss), as reported $ 30,213 $ 10,493 $ (22,530) $ 21,553 $ 5,503 $ (20,928) I

  21. Slide 21: Adjusted Free Cash Flow

    Consolidated Adjusted Free Cash Flow ($ in thousands) 6 Mos. 3/31/24(4) 6 Mos. 3/31/23(5) Cash flow provided by operating activities, as reported $8,345 $(4,315) Purchase of property and equipment (9,759) (38,641) Free cash flow, non-GAAP (1,414) (42,956) Adjustments: Cash outflow to purchase the Or

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