Universal Technical Institute Inc · NYSE:UTI
Universal Technical Institute — Q2 2024 Earnings Presentation
27 slides from Universal Technical Institute's earnings presentation, May 8, 2024
Slide 1: Q2 2024 Investor Presentation
Universal Technical Institute, Inc. Q2 2024 Investor Presentation May 8, 2024
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: Leading Workforce Solutions Education Provider; Strong Financial Outlook
Leading Workforce Solutions Education Provider Strong Financial Outlook* (Updated May 8, 2024) $720-730M Addressing Skills Transportation and Gaps Through Healthcare 2 Skilled Trades FY2024 Revenue Guidance FY2025 Projection – Nearly $800M, In-Demand ~10% growth year over year Industry $37-41M Segme
Slide 4: High-quality, state-of-the-industry technical and healthcare training facilities
High-quality, state-of-the- industry technical and healthcare training facilities supporting successful student outcomes 4
Slide 5: Compelling Ongoing Investment Thesis
Compelling Ongoing Investment Thesis Consistently meeting or exceeding expectations while executing on a repeatable and scalable growth strategy Leading educational Universal Strong student outcomes1 and platforms serving critical, positive regulatory metrics in-demand markets with Technical driven
Slide 6: Diversified Platform of In-Demand Programs
Diversified Platform of In-Demand Programs Auto/Diesel/Motorcycle/Marine Technician Dental Hygienist/Assistant Example Programs Example Programs Welding Medical Assistant Energy Technology and Wind Power Practical/Vocational/Registered Nursing Aviation Maintenance, Airframe and Powerplant Healthcare
Slide 7: Continuing a Multi-Year Transformation Journey
Continuing a Multi-Year Transformation Journey $725.0 Acquisitions and Program Expansions MIAT (Closed FY22), Concorde (Closed FY23) $700.0 Marketing and Admissions Optimization Increased high school and local emphasis New Programs and Curriculum Multiple program expansions, MSATs, On-Base Military
Slide 8: Delivering on Expectations and Creating Shareholder Value
Delivering on Expectations and Creating Shareholder Value Note: Analyst Consensus, Share Price, and Market Capitalization figures as of market close 5/7/2024 Revenue ($M) FY'21 FY'22 FY'23 FY'24E Adj. EBITDA* ($M) FY'21 FY'22 FY'23 FY'24E Early Estimate - - - $700+ Early Estimate - - - ~$100 Origina
Slide 9: In-Demand Offerings Across Transportation, Skilled Trades, and Healthcare
In-Demand Offerings Across Transportation, Skilled Trades, and Healthcare 50% Dental Hygienists & Assistants Healthcare Programs Example Concorde Healthcare Administration Medical Assistants JOB GROWTH 2022-2032 30% Nursing 25% Physical and Occupational Therapy Assistants 20% Energy, & Skilled Trade
Slide 10: Healthcare Platform & Program Expansions Accelerating Growth and Diversification
Healthcare Platform & Program Expansions Accelerating Growth and Diversification Diversified Revenue Mix Healthcare Value Proposition UTI UTI + Concorde Overall employment in healthcare occupations is expected to result in almost Transportation 2 million new jobs annually from 2022- $725M Skilled Tr
Slide 11: Maximizing Program Expansion Opportunities
Maximizing Program Expansion Opportunities Leveraging recent acquisitions and optimized real estate footprint to drive growth through new program offerings within existing campuses. UTI Program Expansions Programs & Locations Aviation Long Beach, CA Avondale, AZ Miramar, FL HVACR Austin, TX
Slide 12: Strategic Initiative Playbook for Continued Accelerated Growth
Strategic Initiative “Playbook” Provides Opportunities for Continued Accelerated Growth Organic Growth + Acquisitions Future Incremental Opportunities1 Strategic and disciplined opportunities New Campus Additions Leverage blended learning and refined program mix formats to expand geographic footprin
Slide 13: Business Outlook
Business Outlook Fiscal 2024 Guidance 13
Slide 14: Fiscal 2024 Guidance
Fiscal 2024 Guidance* $ millions except EPS 1 Beginning in FY23, Net Income and EPS impacted by a significant effective tax rate increase due to the valuation allowance reversal in FY2022, increased interest expense, and higher D&A 2 Beginning in FY23 Adj EBITDA excludes stock-based compensation; pr
Slide 15: Appendix
Appendix 15
Slide 16: Universal Technical Institute Division Overview
Universal Technical Institute Division Overview A leading provider of transportation, energy and skilled trades technical training, driven to change the world one life at a time by helping people achieve their dreams. Summary Statistics Key Metrics Founded 1965 Enrollment ~15K Students Revenue1 $429
Slide 17: UTI Division Programs by Location
UTI Division Programs by Location Rancho Austin, Avondale, Bloomfield, Canton, Dallas, Exton, Houston, Lisle, Long Beach, Miramar, Mooresville, Orlando, Sacramento, Cucamonga, Texas Arizona1 New Jersey Michigan Texas Pennsylvania Texas 2 Illinois California Florida North Carolina Florida3 California
Slide 18: Concorde Career Colleges Division Overview
Concorde Career Colleges Division Overview Healthcare education provider focused on preparing America’s next generation of healthcare professionals for rewarding careers in areas such as dental, patient care, nursing and allied health. Summary Statistics Key Metrics Founded 1968 Enrollment ~8K Stude
Slide 19: Concorde Programs by Location
Concorde Programs by Location Aurora, Dallas, Garden Grove, Grand Prarie, Jacksonville, Kansas City, Memphis, Miramar, North Hollywood, Orlando, Portland, San Antonio, San Bernadino, San Diego, Southaven, Tampa, Online Colorado Texas California Texas Florida Missouri Tennessee Florida California Flo
Slide 20: Illustrative Organic Growth Opportunities
Illustrative Organic Growth Opportunities Growth strategy expected to include additional program expansions and new campuses. Below examples for directional guidance on financial impact. New Campus HVACR Program Dental Hygiene Program UTI Division UTI Division Concorde Division CapEx Requirement ~$1
Slide 21: 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 for both UTI and Concorde, provide unique value propositions and competitive differentiation for our schools and students. 21
Slide 22: History of Preferred Stock
History of Preferred Stock All remaining preferred shares outstanding converted to common on 12/18/2023 • June 2016: Coliseum Holdings purchased 700,000* shares of Series A Convertible Preferred Stock for $70 million – Initial 700,000 shares were convertible into 21,021,021 shares of common stock (~
Slide 23: Non-GAAP Information
Non-GAAP Information 23
Slide 24: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information. These financial measures are not recognized measures und
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in thousands) Guidance Actual Actual Midpoint Fiscal 2023 Fiscal 2022 Fiscal 2024 Net income, as reported ~$39,000 $12,322 $25,848 Interest expense (income), net ~3,500 3,795 1,495 Income tax expense (benefit) ~15,900 5,765 (5,407) Depreciation and amortization ~30,
Slide 26: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation ($ in thousands) Guidance Actual Actual Midpoint Fiscal 2023 Fiscal 2022 Fiscal 2024 Cash flow provided by operating activities, as reported ~$84,900 $49,148 $46,031 Purchase of property and equipment ~(30,500) (56,685) (79,450) Free cash flow, non-GAAP ~54,400
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