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Universal Technical (UTI) Q1 Earnings Miss, Enrollment Down


Universal Technical Institute, Inc. UTI reported adjusted loss of 21 cents per share in the first quarter of fiscal 2018, wider than the Zacks Consensus Estimate of a loss of 9 cents. The reported loss was also wider than the year-ago loss of 9 cents.

Revenues & Enrollment

Revenues of $81.2 million in the first quarter decreased 3.6% from $84.2 million in the prior-year quarter. The decline was caused by a 5.8% drop in average student enrollment.

Total starts fell 7.1% year over year during the quarter.

Operating Highlights

The company reported operating loss of $3.6 million compared with an operating loss of $1.4 million in the prior-year quarter. The downside was primarily a result of reduced revenues and increased in advertising, contract services and professional services expenses, partially offset by lower compensation expenses.

Operating expenses rose 2.4% to $84.8 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $0.8 million compared with $6.3 million in the prior-year quarter.


The company had cash and cash equivalents, and investments of $86.5 million as of Dec 31, 2017, compared with $50.1 million as of Sep 30, 2017.

Fiscal 2018 Guidance Reaffirmed

Universal Technical expects new student starts growth in low-single digits. The average student population is likely to decline mid-single digits.

Revenues are expected in the $310-$320 million range for the year.

Operating expenses is projected in the range of $340 million to $345 million, reflecting an increase of $14-$19 million from fiscal 2017.

Universal Technical expects to incur operating loss between $20 million and $25 million and negative EBITDA.

Capital expenditures are expected between $24 million and $25 million for the year ending Sep 30, 2018. This includes approximately $11 million from New Jersey campus that is expected to open in the fall of 2018; and approximately $4 million to expand welding program to two additional campuses, $7 million for new and replacement equipment for existing campuses; and approximately $2.5 million for real estate consolidation.

Universal Technical Institute Inc Price, Consensus and EPS Surprise

Zacks Rank & Upcoming Peer Releases

Universal Technical carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Public Education APEI is scheduled to report fourth-quarter 2017 results on Feb 27. The Zacks Consensus Estimate for earnings is pegged at 33 cents, down 21.4% year over year.

Strayer Education STRA is expected to report fourth-quarter 2017 results on Feb 15. The Zacks Consensus Estimate for earnings is pegged at $1.28, up 34.7% year over year.

Capella Education CPLA is slated to report fourth-quarter 2017 results on Feb 13. The Zacks Consensus Estimate for earnings is pegged at $1.03, up 6.2% year over year.

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