Universal Technical Institute (UTI) Misses Q2 EPS by 31c, Revenues Miss

Universal Technical Institute (NYSE: UTI) reported Q2 EPS of ($0.45), $0.31 worse than the analyst estimate of ($0.14). Revenue for the quarter came in at $54.48 million versus the consensus estimate of $69.13 million.

• New student starts increased 8.4% from the prior year quarter.
• 91% of enrolled students are now active, and 87% of active students have completed or are in-process with their make-up labs.
• Third quarter revenue of $54.5 million decreased 31% from the prior year quarter reflecting timing of students returning from leave of absence (LOA) and overall student progression through make-up labs.
• Net loss of $13.3 million in the third quarter compared to net loss of $0.4 million in the prior year quarter.
• All campuses are currently open with in-person labs operating according to CDC and local jurisdiction guidelines.

"The COVID-19 pandemic and resulting economic downturn continue to present our organization with challenges, but also unique opportunities which will leave us well positioned to continue to significantly strengthen our business," said Jerome Grant, UTI's Chief Executive Officer. "We are seeing growing interest in a UTI education, which prepares students for good jobs and rewarding careers in stable industries. Our team will remain focused on investing in our students, their safety and well-being, as well as evolving the industry leading education experience we are known for by creating new digital and hands on pathways and programs for our students. Our company's reputation for integrity and superior execution, the demonstrated flexibility of our business model and our solid financial position provide the critical foundation as we continue to pursue investments in new programs and growth initiatives to move our business forward," Grant said.

"Throughout the third quarter we saw a significant increase in media driven inquiries and accelerating future student enrollments. While our results in the quarter reflected impacts from COVID-19, primarily from the timing of student LOA returns and the progression of students through their make-up labs, our team is working hard to provide students with the support and resources they need," said Troy Anderson, UTI's Chief Financial Officer. "Our fourth quarter new student enrollments are outpacing the expectations we had prior to the pandemic, and while we are early in the enrollment process for 2021, these figures are also trending positively. We maintained our strong balance sheet and are focused on making the necessary investments to support our students and enhance our learning platform, while uncovering new efficiencies that will contribute to the long-term success of our organization," Anderson said.

For earnings history and earnings-related data on Universal Technical Institute (UTI) click here.

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