Universal Technical Institute, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2012; Provides Earnings Guidance for the Year 2013
January 01, 2013 at 02:53 am IST
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Universal Technical Institute, Inc. announced unaudited consolidated earnings results for the first quarter ended December 31, 2012. For the quarter, revenues were $98,441,000 against $106,427,000 for the same period a year ago, the decrease in revenues primarily related to a decrease in average undergraduate full-time student enrollment of 9.8%, the decrease was partially offset by an increase in tuition rates. Income from operations was $6,006,000 against $7,327,000 for the same period a year ago, the decrease in operating income was primarily attributable to the decrease in revenues and was partially offset by decreases in compensation and advertising expense. Income before income taxes was $6,172,000 against $7,572,000 for the same period a year ago. Net income was $3,562,000 or $0.14 basic and diluted per share against $4,479,000 or $0.18 basic and diluted per share for the same period a year ago. Net cash used in operating activities was $1,591,000 against net cash provided by $5,571,000 for the same period a year ago. Purchase of property and equipment was $2,756,000 against $1,498,000 for the same period a year ago. EBITDA was $12,110,000 against $14,003,000 for the same period a year ago.
The company expects new student starts to be down for much of 2013, before possibly showing year over year improvement in the fourth quarter. While that trend would prove positive for 2014, the company do anticipate full year new student starts for 2013 to be down mid to high single digits resulting in a lower average student population this year. These lower levels of enrollment will most likely result in a high single digit decline in revenue in 2013 and an overall decline in operating margin and net income compared to 2012.
Universal Technical Institute, Inc. is a workforce solutions provider of transportation, skilled trades and healthcare education programs. Its segments include Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde). UTI segment operates 16 campuses located in nine states and offers a range of degree and non-degree transportation and skilled trades technical training programs under brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute, NASCAR Technical Institute, and MIAT College of Technology. UTI also offers manufacturer specific advanced training programs, including student-paid electives, at its campuses and manufacturer or dealer-sponsored training at certain campuses and dedicated training centers. Concorde segment operates 17 campuses located in eight states and online, offering degree, non-degree, and continuing education programs in the allied health, dental, nursing, patient care and diagnostic fields.
Universal Technical Institute, Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2012; Provides Earnings Guidance for the Year 2013