Universal Technical Institute (UTI) has reported financial results for the fiscal 2019 third quarter ended June 30, 2019.
New student starts, excluding at its Norwood, Massachusetts, campus, are up 11.9% for the quarter and 13% year-to-date.
Full year 2019 guidance raised, including expected operating cash flow of $12 million or greater and expected adjusted free cash flow of $10 million or greater.
“During the third quarter of 2019, we generated strong revenue growth, delivered our fourth consecutive quarter of year-on-year start growth and, for the second quarter in a row, our average student population was up compared to the prior year,” said Kim McWaters, UTI’s president and CEO. “We are making consistent progress toward building a profitable business, and our significant momentum is the direct result of UTI’s multi-year Transformation Plan.
“Over the past 18 months, we have redesigned core business processes, leveraged technology and analytics to efficiently attract more qualified potential students, successfully opened a new campus, expanded our welding programs, and further differentiated our industry-leading student value proposition,” McWaters said. “Even in a time of historically low unemployment, when people are far less likely to consider post-secondary education, these initiatives are producing results. We do not know when the macro trends will turn, but it is clear that we are building a business that can thrive in any market environment.
“We had 5.1% more students in school at the end of the third quarter of 2019 compared to the prior year, driving revenues 5.5% higher. Our focus on durable changes to our cost structure reduced operating expenses by 8.3%.
“Based on our top- and bottom-line performance, we are raising 2019 guidance across the board. We believe revenue will continue to increase –driven by new student starts and a higher average student population – and also expect to deliver further additional operating efficiencies. The combination should generate significant improvement to cash flow and operating results in 2020,” McWaters concluded.
Revenues increased 5.5% to $79 million in the quarter, compared to $74.9 million in the prior year period, driven by higher average full-time enrollment.
Net loss was $0.4 million, compared to $11.7 million.
Adjusted EBITDA gain was $4.5 million, compared to an adjusted EBITDA loss of $4 million.
