Universal Technical Institute (NYSE: UTI) reported Q4 EPS of $0.09, versus ($0.49) reported last year. Revenue for the quarter came in at $87.7 million versus the consensus estimate of $78.3 million.

• Fourth quarter revenue increased 9.2% versus the prior year quarter to $87.7 million, driving fiscal 2019 revenue to $331.5 million, up 4.6% versus the prior year.
• New student starts, excluding the Norwood, MA campus, were up 10.4% for the fourth quarter and 11.5% for fiscal 2019 as compared to the respective prior year periods.
• Fourth quarter operating income of $5.4 million improved $16.5 million from the prior year quarter loss, while the full year operating loss of $7.8 million improved $27.5 million year over year.
• UTI expects fiscal 2020 revenue growth of between 2.0% and 4.0% versus fiscal 2019, which, along with continued cost optimization, is expected to position UTI to be profitable for the full year and increase cash flow versus fiscal 2019.

"UTI delivered start growth every quarter of fiscal 2019," said Jerome Grant, UTI's Chief Executive Officer. "Our multi-pronged strategy is delivering results, with enrollments, student starts, revenue, profitability, and cash flow all coming in at or better than our expectations. As we continued to open new campuses, optimize our cost structure and footprint, and reshape our approach to marketing, admissions, operational execution and industry engagement in fiscal 2019, we have built a solid foundation for the business and have set ourselves up for the next phase of profitable growth.

"We are consistently achieving our goal of generating the majority of our inquiries from the highest converting sources, and as a result, a higher percentage of all students who inquire about UTI submit an application and ultimately start school at one of our campuses. Our newest metro campus in Bloomfield, New Jersey is on track to exceed its initial pro forma objectives and, combined with the performance of our Dallas and Long Beach campuses, is proving the metro model\'s power to drive growth and deliver an attractive return on investment. We also continue to optimize our campus footprint with the exiting of our Norwood, Massachusetts campus, reduction of square footage at our Exton, Pennsylvania campus and addition of new, high-demand programs like welding at several campuses.

"Looking ahead to fiscal 2020, we expect to further realize the operational and financial benefits of ongoing transformative strategies, which have the potential to be amplified as we identify new opportunities for growth. As ever, our focus also remains on delivering to UTI students a high-value education that sets them up for success while delivering the highly qualified technicians our industry partners demand and need."

GUIDANCE:

Universal Technical Institute sees FY2020 revenue of $330-335 million, versus the consensus of $354.5 million.

• FY 2020 guidance equates to year over year revenue growth of 2.0% to 4.0%, which includes a 1.0% to 1.5% net negative impact from the Norwood, MA campus exit.

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