Press Release: Universal Technical Institute Reports Fiscal Year 2021 First Quarter Results
Universal Technical Institute Reports Fiscal Year 2021 First Quarter Results
PHOENIX, Feb. 4, 2021
PHOENIX, Feb. 4, 2021 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of transportation technician training, reported financial results for the fiscal 2021 first quarter ended December 31, 2020.
"This quarter marks another important step as we continue to build on UTI's superior track-record of preparing our students for careers in fields where the demand far outstrips the supply of credentialed candidates. Our strategy is focused in three key areas: student outcomes, innovation, and the accelerated growth and diversification of UTI," said Jerome Grant, UTI's Chief Executive Officer. "We have made deliberate shifts in our marketing and admissions functions that are already allowing us to reach record numbers of potential students who, now more than ever, can benefit from our programs. Our blended learning approach continues to advance and is being recognized by industry and employer partners as an essential platform upon which crucial digital skills for lifelong learning are built."
Grant continued, "Our growth and diversification strategy continues to move forward, with the intention to expand and diversify our offerings and capacity to best serve and meet America's growing need for highly trained middle-skills professionals. Driven by our vision for the future of our organization, we will continue to evolve and innovate to support student success and enhance outcomes."
Financial Results for the Three-Month Period Ended December 31, 2020 Compared to 2019
*See "Use of Non-GAAP Financial Information" below.
"The leading indicators for our business continue to show substantial and growing momentum, and at the same time we remain focused on driving increased efficiency within our operations. We expanded our pool of partnership programs with industry leaders and deployed capital to pursue ongoing optimization efforts within our real estate footprint," said UTI Chief Financial Officer Troy Anderson. "While the current environment has presented some near-term challenges, I continue to be impressed by the resiliency our students and employees have demonstrated, and by our progress as an organization. I am optimistic about what we can accomplish going forward," Anderson added.
Balance Sheet and Liquidity
At December 31, 2020, UTI's total available liquidity was $72.1 million consisting of $44.2 million of cash and cash equivalents and $27.9 million of short-term, held-to-maturity securities. The company had no line of credit or other long-term debt as of the end of the fiscal first quarter. Available liquidity reflects the net cash outflow of $45.2 million for the purchase of the Avondale, Arizona campus, which occurred on December 23, 2020.
Management will hold a conference call to discuss the financial results for the fiscal 2021 third quarter ended December 31, 2020, on Thursday, February 4, 2021, at 4:30 p.m. ET.
To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu or the telephone replay can be accessed through February 18, 2021, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 10150977.
Use of Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), UTI also discloses certain non-GAAP financial information in this press release and may similarly disclose non-GAAP financial information on the related conference call. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. UTI discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, UTI believes that these measures may also help investors compare its performance on a consistent basis across time periods.
UTI defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation, amortization and adjusted for items not considered as part of the company's normal recurring operations.
Adjusted Operating Income (Loss)
UTI defines adjusted operating income (loss) as income (loss) from operations, adjusted for items that affect trends in underlying performance from year to year and are not considered normal recurring cash operating expenses.
Adjusted Free Cash Flow
UTI defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered as part of the company's normal recurring operations.
UTI discloses any campus adjustments as direct costs (net of any corporate allocations). Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, this includes severance expenses due to the CEO transition, costs related to the teach-out and closure of the Norwood, MA campus, and costs related to the purchase of our Avondale, Arizona campus. To obtain a complete understanding of UTI's performance, these measures should be examined in connection with net income (loss), operating income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission ("SEC"). Because the items excluded from these non-GAAP measures are significant components in understanding and assessing UTI's financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss), operating income (loss) or net cash provided by (used in) operating activities as a measure of UTI's operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than UTI does, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is provided below and investors are encouraged to review the reconciliations.
Forward Looking Statements
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