Universal Technical Institute Inc · NYSE:UTI
Universal Technical Institute — Investor Presentation (November 2021)
40 slides from Universal Technical Institute's investor presentation, Nov 17, 2021
Slide 1: Universal Technical Institute Investor Presentation
Universal Technical Institute Investor Presentation November 17, 2021 2021 Universal Technical Institute, Inc. All rights reserved.
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 225K+ FOUNDED TOTAL GRADUATES 35+ ~14K MANUFACTURING CURRENT STUDENTS1 BRAND PARTNERS 4,800+ INCENTIVE & TUITION >80% IN-FIELD REIMBURSEMENT EMPLOYMENT RATE2 EMPLOYER LOCATIONS $335.1M ~$100M TTM REVENUE1 CASH AND INVESTMENTS3
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: Ongoing Company Transformation
Ongoing Company Transformation Actions Completed or In-Process Progress Achieved To Date MIAT Acquisition Closed 11/1/2021 Revenue and Margin Growth Marketing 3 New Campuses: Optimization Bloomfield, NJ 2018 and Increased Austin, TX 2022 High School Miramar, FL 2022 and Local Emphasis Transformation
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: Growth & Diversification Strategy
Growth & Diversification Strategy
Slide 10: 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 11: 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 12: 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 • Higher
Slide 13: MIAT College of Technology – Overview
MIAT College of Technology – Overview ACCSC-accredited vocational and technical school offering a variety of programs complementary to UTI offerings accelerates realization of UTI’s growth and diversification strategy SUMMARY FOUNDED: 1969 KEY METRICS2: • Composite Score: 3.0 (of 3.0) FY21 REV1: $29
Slide 14: MIAT College of Technology – Key Metrics
MIAT College of Technology – Key Metrics Strong growth and margin improvement trajectory supported by a diversified program mix $30.0 Financials1 20% 16.0% Student Starts1 20% CAGR 14.0% CAGR $25.0 12.0% $20.0 10.0% $15.0 8.0% 6.0% $10.0 4.0% $5.0 2.0% $0.0 0.0% 2017 2018 2019 2020 2021 2017 2018 20
Slide 15: Optimizing Real Estate Footprint for Efficiency
Optimizing Real Estate Footprint for Efficiency Transformation across UTI’s Real Estate portfolio yielding significant cost and utilization improvements Rationalize Sq Ft Welding Other Programs Keys to Real Estate Campus In Process Complete In Process Complete In Process Complete Total Sq. Ft Transf
Slide 16: FY2022 Guidance
FY2022 Guidance ($ 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 17: FY 2022 Starts and Revenue Bridges
FY 2022 Starts and Revenue Bridges PAGE17 Note: Bridges are intended to provide indicative year-over-year impacts only
Slide 18: 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 19: Student Value Proposition
Student Value Proposition
Slide 20: 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 ~8K Media Workable Graduates*
Slide 21: Demand for Our Technicians Far Exceeds Industry Supply
Demand for Our Technicians Far Exceeds Industry Supply 100,000 ~1.2M ~0.6M TOTAL EMPLOYED TRANSPORTATION TOTAL EMPLOYED WELDING & TECHNICIANS BY 20291 CNC MACHINISTS BY 20291 44,000 275M+ 1.3B+ VEHICLES IN THE VEHICLES ON THE UNITED STATES2 ROAD WORLDWIDE3 Auto/Diesel/CRRT technicians 2020 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 32% by robust opportunities in the job market Adult Learners HIGH SCHOOL GRADUATES 52% Adding reps and enhanced
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 ~2.3M total square feet Located in high-demand job markets Easy access to major populations MIAT Canton, MI Houston, TX Intro
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, cutting-edge campuses & curriculum, and progress in its growth and diversification strategy benefit its students, shareholders, and employees alike PAGE 27
Slide 28: Appendix
APPENDIX
Slide 29: Talented and Deeply Experienced Management Team
Talented and Deeply Experienced Management Team Chief Executive Officer EVP & Chief Financial Officer EVP Campus Operations & Services Jerome Grant Troy Anderson Sherrell Smith SVP Chief Commercial Officer SVP Chief Information Officer SVP Chief Strategy & Transformation Officer Bart Fesperman Lori
Slide 30: 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 31: Compliance Statistics
Compliance Statistics
Slide 32: UTI Department of Education Regulatory Metrics
UTI Department of Education Regulatory Metrics 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 school can receive from federal fin
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 54.8 228.9 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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