SCOTTSDALE, Ariz., April 30, 2015 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of automotive technician training, today reported revenues for the second quarter ended March 31, 2015 of $91.2 million, a 3.7 percent decrease from $94.7 million for the second quarter of the prior year. Net income for the second quarter ended March 31, 2015 increased to $0.6 million, or 2 cents per diluted share, compared to net loss of $1.6 million, or a loss of 7 cents per diluted share, for the second quarter ended March 31, 2014.

Revenues for the six months ended March 31, 2015 were $186.9 million, a 2.5 percent decrease from $191.8 million for the six months ended March 31, 2014. Net income for the six months ended March 31, 2015 was $3.6 million, or 15 cents per diluted share, compared to $0.1 million, or 0 cents per diluted share, for the six months ended March 31, 2014.

"We are pleased to report continued improved financial results largely driven by operating efficiencies," said Kim McWaters, chairman and CEO. "Our focus on rebuilding our student population remains a top priority. While down relative to last year, starts in the quarter were slightly better than our expectation. Preparations necessary to open our new campus in Long Beach are on track and our work to increasingly engage with employers in our technician recruitment efforts is accelerating. We continue to believe these initiatives will positively impact student enrollment in the future."

Student Metrics

Second Quarter Operating Performance

Revenues for the second quarter of 2015 were $91.2 million, a 3.7 percent decrease from $94.7 million for last year's second quarter. Tuition excluded $5.7 million and $6.6 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating income and margin for the second quarter of 2015 were $2.4 million and 2.6% percent, respectively, compared to operating loss and margin of $1.6 million and 1.7 percent, respectively, in the same period last year. The increases in operating income and margin were related to decreases in compensation costs, advertising expense and bad debt expense, partially offset by the decrease in revenues.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2015 was $7.8 million compared to $4.2 million in the same period last year. See "Use of Non-GAAP Financial Information" below.

Six Month Operating Performance

Revenues for the six months ended March 31, 2015 were $186.9 million, a 2.5 percent decrease from $191.8 million for the six months ended March 31, 2014. Tuition excluded $11.4 million and $12.8 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating income and margin for the six months ended March 31, 2015 were $8.0 million and 4.3 percent, respectively, compared to $1.4 million and 0.8 percent, respectively, for the six months ended March 31, 2014. The increases in operating income and margin were related to decreases in compensation costs, contract services expense and bad debt expense, partially offset by the decrease in revenues and an increase in advertising expense.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the six months ended March 31, 2015 was $18.9 million compared to $13.1 million for the six months ended March 31, 2014. See "Use of Non-GAAP Financial Information" below.

Liquidity

Cash, cash equivalents and investments totaled $74.6 million at March 31, 2015, compared to $96.1 million at September 30, 2014. At March 31, 2015, shareholders' equity totaled $128.0 million as compared to $133.2 million at September 30, 2014. We paid cash dividends of $0.10 per common share on December 19, 2014 and March 31, 2015 totaling approximately $4.9 million.

Pursuant to the previously announced share repurchase plan, we purchased 748,000 shares during the six months ended March 31, 2015 at an average price per share of $8.15 and a total cost of approximately $6.1 million.

Cash provided by operating activities was $8.7 million for the six months ended March 31, 2015 compared to $16.1 million for the six months ended March 31, 2014.

2015 Outlook

Although we have had a strong first half, our guidance for the full year ending September 30, 2015 remains relatively unchanged. We expect revenue to decline approximately 3 to 4%, however, excluding the impact of pre-opening costs of our new campus, we expect to see year over year growth in operating income. We expect new student starts as well as our average student population to be down for the full year in the mid-single digits. We expect to see year over year growth in both new student applications and starts in the second half with all of that growth occurring in the fourth quarter. Capital expenditures are expected to be approximately $35.0 million in 2015. Due to the seasonality of our business and normal fluctuations in student populations, we would expect volatility in our quarterly results.

Conference Call

Management will hold a conference call to discuss the 2015 second quarter results on Friday, May 1 at 10:00 a.m. PDT (1:00 p.m. EDT). This call can be accessed by dialing 412-858-4600 or 800-860-2442. Investors are invited to listen to the call live at http://uti.investorroom.com/. Please access the website at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will be available on the Investor Relations section of UTI's website for 60 days or the replay can be accessed through May 13, 2015 by dialing 412-317-0088 or 877-344-7529 and entering pass code 10064029.

Use of Non-GAAP Financial Information

This press release and the related conference call 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 financial measures because they provide an additional analytical tool to clarify the results from operations and helps to identify underlying trends. Additionally, such measures help compare the Company's performance on a consistent basis across time periods. To obtain a complete understanding of the Company's performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission. Since the items excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be an alternative to net income as a measure of the Company's operating performance or profitability. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may calculate non-GAAP financial measures differently than UTI does, limiting their usefulness as a comparative measure across companies. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures are included below.

Safe Harbor Statement

All statements contained herein, other than statements of historical fact, are "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933, as amended. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the Company's actual results include, among other things, changes to federal and state educational funding, changes to regulations or agency interpretation of such regulations affecting the for-profit education industry, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by UTI, increased investment in management and capital resources, the effectiveness of the recruiting, advertising and promotional efforts, changes to interest rates and unemployment, general economic conditions of the Company and other risks that are described from time to time in the Company's public filings. Further information on these and other potential factors that could affect the financial results or condition may be found in the Company's filings with the Securities and Exchange Commission. The forward-looking statements speak only as of the date of this press release. Except as required by law, the Company expressly disclaims any obligation to publicly update any forward-looking statements whether as a result of new information, future events, changes in expectations, any changes in events, conditions or circumstances, or otherwise.

About Universal Technical Institute, Inc.

Headquartered in Scottsdale, Arizona, Universal Technical Institute, Inc. (NYSE: UTI) is the leading provider of post-secondary education for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. With more than 190,000 graduates in its 50-year history, UTI offers undergraduate degree and diploma programs at 11 campuses across the United States, as well as manufacturer-specific training programs at dedicated training centers. Through its campus-based school system, UTI provides specialized post-secondary education programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NASCAR Tech). For more information visit www.uti.edu.

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SOURCE Universal Technical Institute, Inc.