SCOTTSDALE, Ariz., April 28, 2016 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of automotive technician training, today reported revenues for the second quarter ended March 31, 2016 of $88.2 million, a 3.3 percent decrease from $91.2 million for the second quarter of the prior year. Including $27.9 million in income tax expense related to a full valuation allowance on our deferred tax assets, net loss for the second quarter ended March 31, 2016 was $32.0 million, or a loss of $1.32 per diluted share, compared to net income of $0.6 million, or 2 cents earnings per diluted share, for the second quarter ended March 31, 2015.

Revenues for the six months ended March 31, 2016 were $178.0 million, a 4.8 percent decrease from $186.9 million for the six months ended March 31, 2015. Including $27.9 million in income tax expense related to a valuation allowance on our deferred tax assets, net loss for the six months ended March 31, 2016 was $33.7 million, or a loss of $1.39 per diluted share, compared to net income of $3.6 million, or 15 cents per diluted share, for the six months ended March 31, 2015.

During the quarter ended March 31, 2016, we determined that it was necessary to record a full valuation allowance on our deferred tax assets. The income tax expense related to the valuation allowance was recorded in the current period and impacted diluted loss per share by approximately $1.15 for each of the three and six months ended March 31, 2016. In addition, our new campus in Long Beach, California, which opened during the fourth quarter of fiscal 2015, impacted earnings by $1.1 million (pre-tax) or 3 cents per diluted share for the second quarter and $2.8 million (pre-tax) or 7 cents per diluted share for the six months ended March 31, 2016.

"We continue to be positive about our business in the long term," said Kim McWaters, chairman and CEO. "Our second quarter results, however, did not reflect our work to counter negative market trends and new student recruitment challenges. In this complex environment, we are focused on attracting new students while operating as efficiently as possible, on giving students a quality education that can lead to good jobs and on partnering with employers, who are increasingly engaged in helping us meet the strong and consistently growing demand for our graduates."

Student Metrics

Second Quarter Operating Performance

Revenues for the second quarter of 2016 were $88.2 million, a 3.3 percent decrease from $91.2 million for last year's second quarter. Tuition excluded $4.6 million and $5.7 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating loss and margin for the second quarter of 2016 were $5.8 million and 6.5 percent, respectively, compared to operating income and margin of $2.4 million and 2.6 percent, respectively, in the same period last year. The decreases in operating income and margin were related to the decrease in revenues and the impact of our Long Beach, California campus. Excluding the operating loss of $0.8 million at our Long Beach, California campus, operating loss and margin were $5.0 million and 5.9% for the second quarter of 2016. See "Use of Non-GAAP Financial Information" below.

Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2016 was $(0.6) million compared to $7.8 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, 2016 were $178.0 million, a 4.8 percent decrease from $186.9 million for the six months ended March 31, 2015. Tuition excluded $10.3 million and $11.4 million, respectively, related to students participating in the Company's proprietary loan program which will be recognized as revenues when payments are received.

Operating loss and margin for the six months ended March 31, 2016 were $8.0 million and 4.5 percent, respectively, compared to operating income and margin of $8.0 million and 4.3 percent, respectively, for the six months ended March 31, 2015. The decreases in operating income and margin were related to the decrease in revenues and the impact of our Long Beach, California campus. Excluding the operating loss of $2.2 million at our Long Beach, California campus, operating loss and margin were $5.8 million and 3.3 percent for the six months ended March 31, 2016. See "Use of Non-GAAP Financial Information" below.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the six months ended March 31, 2016 was $2.3 million compared to $18.9 million for the six months ended March 31, 2015. See "Use of Non-GAAP Financial Information" below.

Liquidity

Cash, cash equivalents and investments totaled $50.6 million at March 31, 2016, compared to $59.2 million at September 30, 2015. At March 31, 2016, shareholders' equity totaled $81.1 million as compared to $113.5 million at September 30, 2015. We paid cash dividends of $0.02 per common share on October 5, 2015, December 18, 2015 and March 31, 2016 totaling approximately $1.5 million.

Cash used in operating activities was $2.5 million for the six months ended March 31, 2016 compared to cash provided by operating activities of $8.7 million for the six months ended March 31, 2015.

2016 Outlook

For the year ending September 30, 2016, we expect new student starts and our average student population to be down in the mid to high single digits as a percentage compared with the year ended September 30, 2015. While annual tuition increases will slightly offset the decline in average students, we expect revenue to decline approximately 5 - 6% leading to minimal levels of EBITDA. Accordingly, we have modified certain project timelines resulting in lower anticipated capital expenditures which are now expected to be in the range of $9.0 to $10.0 million in 2016. 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 2016 second quarter results on Thursday, April 28 at 1:30 p.m. PDT (4:30 p.m. EDT). This call can be accessed by dialing 412-317-6790 or 844-881-0138. Investors are invited to listen to the call live at http://uti.investorroom.com/. Please access the website at least 10 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 12, 2016 by dialing 412-317-0088 or 877-344-7529 and entering pass code 10085599.

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 200,000 graduates in its 51-year history, UTI offers undergraduate degree and diploma programs at 12 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.