Universal Technical Institute (UTI) Misses Q1 EPS by 1c, Slight Beat on Revenues

Universal Technical Institute (NYSE: UTI) reported Q1 EPS of ($0.10), $0.01 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $81.2 million versus the consensus estimate of $80 million.

Financial Results for the Three-Month Period Ended December 31: 2017 Compared to 2016

• Revenues for the quarter were $81.2 million, compared to $84.2 million for the prior year period. The year-over-year revenue variance was attributable to a 5.8% decrease in UTI\'s average student population.
• Operating expenses for the quarter were $84.8 million, compared to $82.8 million for the prior year period.
• Operating loss for the quarter was $3.6 million compared to operating income of $1.4 million for the prior year period. The decline reflects the $3.0 million decrease in revenues as well as increases in advertising, contract services and professional services expenses, partially offset by a decrease in compensation expense.
• Income tax benefit was $2.8 million for the quarter, compared to an income tax expense of $2.6 million for the prior year period. The current period benefit was primarily a result of the Tax Cuts and Jobs Act, which was enacted in December 2017, as well as the loss before taxes during the quarter.
• Net loss for the quarter was $1.1 million, compared to $1.7 million for the prior year period.
• Net loss available for distribution to common shareholders was $2.5 million, or $0.10 per diluted share, compared to $3.0 million, or $0.12 per diluted share for the prior year period.
• Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended December 31, 2017 was $0.8 million, compared to $6.3 million for the prior year period. (See \"Use of Non-GAAP Financial Information\" below.)
• Our early adoption of the new accounting standard on revenue recognition resulted in a non-cash increase to equity of approximately $37.2 million as of October 1, 2018.

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

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