Universal Technical Institute Inc · NYSE:UTI

Universal Technical Institute — Q3 FY2024 Earnings Presentation

22 slides from Universal Technical Institute's earnings presentation, Aug 6, 2024

  1. Slide 1: Q3 FY24 Financial Supplement

    August 6, 2024 Universal Technical Institute, Inc. Q3 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 Q3 2024 Highlights

    Consolidated Q3 2024 Highlights Q3 2024 Revenue $177.5 million Net Income $5.0 million Adjusted EBITDA $18.4 million Diluted Earnings Per Share $0.09 PAGE 3 ■ Delivered Q3 results that met or exceeded expectations for all key metrics. ■ New student starts of 5,567 representing 5.0% growth versus the

  4. Slide 4: Q3 2024 Summary Results

    Consolidated Q3 2024 Summary Results ($ in millions) ($ in millions, except for student data) 3 Mos. 6/30/24 3 Mos. 6/30/23 YoY Change 9 Mos. 6/30/24 9 Mos. 6/30/23(2) YoY Change Revenues $177.5 $153.3 15.8% $536.3 $437.1 22.7% Operating expenses $170.0 $152.6 11.4% $503.5 $426.1 18.2% Ed Services $

  5. Slide 5: Statements of Operations Trend

    Consolidated Statements of Operations Trend ($ in thousands, except EPS) 3 Mos. 6/30/24 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 $ 177,458 $ 184,176 $ 174,695 $ 607,408 $ 170,298 $ 153,286 $ 163,820 $ 1

  6. Slide 6: Results of Operations Trend

    Consolidated Results of Operations Trend Percent of Revenue 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 6/30/24 3/31/24 12/31/23 9/30/23(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% 100.0% Operating Expenses: Edu

  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. 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 UTI UTI UTI UTI U

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

    3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 6/30/24 6/30/24 6/30/24 6/30/24 6/30/23 6/30/23 6/30/23 6/30/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 117,134 $ 60,324 $ — $ 177,458 $ 100,852 $ 52,434 $ — $ 153,286 Ed Services 57,525 37,752 — 95,27

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

    9 Mos. 9 Mos. 9 Mos. 9 Mos. 9 Mos. 9 Mos. 9 Mos. 9 Mos. 6/30/24 6/30/24 6/30/24 6/30/24 6/30/23 6/30/23 6/30/23 6/30/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 355,831 $ 180,498 $ — $ 536,329 $ 313,985 $ 123,125 $ — $ 437,110 Ed Services 174,993 110,181 — 2

  10. Slide 10: Segment Expense Details: Third Quarter

    Segment Expense Details: Third Quarter ($ in thousands) 3 Mos. % of 3 Mos. % of 3 Mos. % of 3 Mos. % of 06/30/2024 Segment 06/30/2024 Segment 06/30/2024 Consolidated 06/30/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPENS

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

    Segment Expense Details: Year-to-Date ($ in thousands) 9 Mos. % of 9 Mos. % of 9 Mos. % of 9 Mos. % of 06/30/2024 Segment 06/30/2024 Segment 06/30/2024 Consolidated 06/30/2024 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. 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Total Segment Total New Student Starts 5,567 5,480 4,346 10,392 5,300 4,626 Y/Y growth/(decline)(1) 5.0% 18.5% —% —% —% —% UTI Segment Total New Student Starts 2,916 2,84

  13. Slide 13: Balance Sheet and Cash Flow Summary

    Consolidated Balance Sheet and Cash Flow Summary ($ in thousands) At: 6/30/24 9/30/23 Cash & cash equivalents $ 115,505 $ 151,547 Restricted cash 3,611 5,377 Total current assets 176,565 204,985 PP&E (net) 263,252 266,346 Right-of-use assets for operating leases 164,170 176,657 Goodwill and intangib

  14. Slide 14: Earnings Per Share Trend and Guidance

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

  15. Slide 15: Leverage as of 6/30/2024

    Leverage as of 6/30/2024 Current Loan Balances $137.3M LTM EBITDA $84.7 Cash & Cash Equivalents $115.5 Gross Leverage Ratio 1.62x Net Leverage Ratio 0.26x 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. 6/30/24 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) $ 4,985 $ 7,787 $ 10,389 $ 12,322 $ 6,

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

    Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) YEAR-TO-DATE 9 Mos. 6/30/24 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) $ 23,161 $ 18,176 $ 10,389 $ 12,322 $ 5,619 $ 6,128 $ 2,6

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

    Adjusted EBITDA Reconciliation By Segment ($ in thousands) QUARTER-TO-DATE 3 Mos. 6/30/24 3 Mos. 6/30/24 3 Mos. 6/30/24 3 Mos. 6/30/23 3 Mos. 6/30/23 3 Mos. 6/30/23 UTI Concorde Corporate UTI Concorde Corporate Net income (loss), as reported $ 12,673 $ 3,778 $ (11,466) $ 3,752 $ 2,028 $ (6,289) Inte

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

    Adjusted EBITDA Reconciliation By Segment ($ in thousands) YEAR-TO-DATE 9 Mos. 6/30/24 9 Mos. 6/30/24 9 Mos. 6/30/24 9 Mos. 6/30/23 9 Mos. 6/30/23(1) 9 Mos. 6/30/23 UTI Concorde Corporate UTI Concorde Corporate Net income (loss), as reported $ 42,886 $ 14,271 $ (33,996) $ 25,277 $ 7,531 $ (27,189) I

  21. Slide 21: Adjusted Free Cash Flow

    Consolidated Adjusted Free Cash Flow ($ in thousands) 9 Mos. 6/30/24(4) 9 Mos. 6/30/23(5) Cash flow provided by operating activities, as reported $18,361 $(4,733) Purchase of property and equipment (16,769) (48,847) Free cash flow, non-GAAP 1,592 (53,580) Adjustments: Cash outflow to purchase the Or

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