[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, detailing significant revenue and net income growth driven by UTI and Concorde segments Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $95,998 | $161,900 | | Total current assets | $198,452 | $221,951 | | Total assets | $720,443 | $744,575 | | Total current liabilities | $185,100 | $204,963 | | Long-term debt | $91,642 | $123,007 | | Total liabilities | $426,530 | $484,344 | | Total shareholders' equity | $293,913 | $260,231 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $207,447 | $184,176 | $408,876 | $358,871 | | Income from operations | $16,853 | $11,192 | $44,331 | $25,423 | | Net income | $11,446 | $7,787 | $33,599 | $18,176 | | Diluted EPS | $0.21 | $0.14 | $0.61 | $0.31 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,173 | $8,345 | | Net cash used in investing activities | ($53,983) | ($9,759) | | Net cash used in financing activities | ($35,149) | ($34,965) | | Change in cash, cash equivalents and restricted cash | ($66,959) | ($36,379) | - The company operates in two reportable segments: **Universal Technical Institute (UTI)**, focused on transportation and skilled trades, and **Concorde Career Colleges (Concorde)**, focused on healthcare education programs[30](index=30&type=chunk)[31](index=31&type=chunk) - In December 2023, all remaining outstanding shares of Series A Preferred Stock were converted into Common Stock, and all rights of preferred holders to receive future dividends were terminated[87](index=87&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting significant revenue and student growth, 'North Star' strategy execution, and strong liquidity [Overview of Operations](index=27&type=section&id=Overview%20of%20the%20Three%20and%20Six%20Months%20Ended%20March%2031%2C%202025) The company experienced robust growth in student metrics and revenue for the three and six months ended March 31, 2025, driven by new program rollouts and strong demand Consolidated Student Metrics (% Change YoY) | Metric | Q2 2025 vs Q2 2024 | Six Months 2025 vs Six Months 2024 | | :--- | :--- | :--- | | Total new student starts | +21.4% | +21.7% | | Average full-time active students | +10.3% | +10.7% | | End of period full-time active students | +12.6% | +12.6% | - Revenue for Q2 2025 increased **12.6% to $207.4 million**, and for the six months ended March 31, 2025, revenue increased **13.9% to $408.9 million** compared to the prior year periods[110](index=110&type=chunk)[111](index=111&type=chunk) - The increase in student population was driven by the launch of new HVAC and refrigeration programs in the UTI segment and five new programs along with new cash-pay 'short programs' in the Concorde segment[108](index=108&type=chunk) [Business Strategy](index=28&type=section&id=Business%20Strategy) The company is actively executing its 'North Star' strategy, focusing on growth, diversification, and optimization through new campus announcements and program expansions - Announced plans for new UTI division campuses in Atlanta, GA, and San Antonio, TX, both expected to open in 2026, pending regulatory approvals[116](index=116&type=chunk) - Signed a new facility lease for a co-branded Concorde and Heartland Dental campus in Fort Myers, Florida, expected to open in early fiscal 2026[116](index=116&type=chunk) - Expanded program offerings by adding Tesla's START Collision Repair program at the Long Beach campus and launching new Battery Hybrid Electric Vehicle (EV) courses across multiple campuses[116](index=116&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenues grew significantly for both the quarter and six-month period, driven by higher student volumes across UTI and Concorde segments, leading to improved operating margins Revenue by Segment (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | UTI | $134,228 | $123,323 | 8.8% | | Concorde | $73,219 | $60,853 | 20.3% | | **Total** | **$207,447** | **$184,176** | **12.6%** | Revenue by Segment - Six Months (in thousands) | Segment | Six Months 2025 Revenue | Six Months 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | UTI | $265,706 | $238,697 | 11.3% | | Concorde | $143,170 | $120,174 | 19.1% | | **Total** | **$408,876** | **$358,871** | **13.9%** | - For Q2 2025, educational services and facilities expenses decreased as a percentage of revenue to **49.4%** from **52.9%** in the prior year, despite a dollar increase, indicating improved efficiency[118](index=118&type=chunk)[122](index=122&type=chunk) - For the six months ended March 31, 2025, selling, general and administrative (SG&A) expenses increased by **$18.4 million**, primarily due to higher compensation, advertising, and provision for credit losses to support strategic growth initiatives[155](index=155&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and credit availability, sufficient to fund operations and strategic initiatives, and significantly increased operating cash flow - As of March 31, 2025, the company had **$96.0 million** in cash and cash equivalents and **$99.0 million** available under its Revolving Credit Facility[174](index=174&type=chunk) - Net cash provided by operating activities for the six months ended March 31, 2025, was **$22.2 million**, a substantial increase from **$8.3 million** in the prior-year period[181](index=181&type=chunk) - Significant cash outflows included **$39.7 million** for the purchase of held-to-maturity investments, **$14.3 million** for property and equipment, and **$30.0 million** in payments on the Revolving Credit Facility[184](index=184&type=chunk)[186](index=186&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes EBITDA as a non-GAAP measure to analyze operational results, showing significant increases for both the three and six-month periods EBITDA Reconciliation (in thousands) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $11,446 | $7,787 | $33,599 | $18,176 | | **EBITDA** | **$25,000** | **$18,513** | **$60,442** | **$39,942** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk exposure during the six months ended March 31, 2025, compared to prior disclosures - There have been no material changes in the company's market risk exposure during the six months ended March 31, 2025[193](index=193&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025[194](index=194&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[195](index=195&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings, though it is periodically subject to various claims in the ordinary course of business - The company is not currently a party to any material legal proceedings[84](index=84&type=chunk)[198](index=198&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K[199](index=199&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None reported for the period[200](index=200&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[203](index=203&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, including an offer letter, CEO and CFO certifications, and XBRL data files - Exhibits filed include an offer letter with Bruce Schuman, CEO/CFO certifications (302 and 906), and XBRL data files[204](index=204&type=chunk)

Company Performance - Universal Technical Institute (UTI) reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and up from $0.14 per share a year ago [1][2] - The earnings surprise for this quarter was 75%, following a previous quarter where the company reported earnings of $0.40 per share against an expectation of $0.18, resulting in a surprise of 122.22% [2] - UTI's revenues for the quarter ended March 2025 were $207.45 million, surpassing the Zacks Consensus Estimate by 5.28%, and an increase from $184.18 million year-over-year [3] Stock Performance - UTI shares have increased approximately 14.4% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [4] - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $196.02 million, and for the current fiscal year, it is $1 on revenues of $815.07 million [8] Industry Outlook - The Zacks Schools industry, to which UTI belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, American Public Education (APEI), is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year increase of +350% [10]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased nearly 13% year over year to $207.4 million [11][26] - Average full-time active students grew over 10% year over year to 24,604 students [11][25] - New student starts grew more than 21% year over year to 6,650 starts [11][25] - Net income increased 47% to $11.4 million with diluted earnings per share of $0.21 [11][27] - Adjusted EBITDA grew approximately 28% year over year to $28.9 million [11][27] Business Line Data and Key Metrics Changes - Concord division saw a 15.5% increase in average full-time active students and a 15.9% rise in new student starts year over year [25] - UTI division generated a 7% increase in average full-time active students and a 26.4% growth in new student starts year over year [26] Market Data and Key Metrics Changes - Demand for skilled labor, particularly in trades and healthcare, continues to strengthen, creating a favorable environment for the company [10][60] - The ongoing supply and demand imbalance in critical sectors is generating additional tailwinds for the business [10] Company Strategy and Development Direction - The company is committed to growth, diversification, and optimization as part of its North Star strategy [34] - Plans to launch at least six new programs each year and open at least two new campuses annually starting in fiscal 2026 [22] - The company is raising its fiscal 2025 guidance, anticipating consolidated revenue between $825 million and $835 million [19][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite regulatory changes and macroeconomic uncertainties [9][10] - The company is well-positioned to accelerate growth in its Concord and UTI divisions [9] - Management highlighted the importance of maintaining strong communication with the Department of Education [9][84] Other Important Information - The company is expanding its program offerings, including new nursing programs and skilled trades programs [13][18] - The company has recently appointed a new CFO and COO to support its growth strategy [20][21] Q&A Session Summary Question: Any campuses or programs to highlight for strong new starts? - Management noted increased marketing investment in healthcare and strong performance in clinical courses, as well as growth in skilled trades programs [41][42] Question: How does enrollment growth break out for UTI and Concord in Q3 and Q4? - Management indicated that growth rates may become challenging for Concord due to capacity limits, while UTI is focusing on high school populations [46][47] Question: Can you comment on trends in employer demand for graduates? - Management reported steady demand for transportation graduates and increasing demand for skilled trades and healthcare professionals [56][59] Question: What are the plans for marketing spend? - Management plans to continue investing in marketing, particularly in areas showing good ROI [68] Question: What could go wrong in achieving the low end of guidance? - Management expressed confidence in the guidance but acknowledged potential challenges in maintaining double-digit growth rates in the upcoming quarters [86]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased nearly 13% year over year to $207.4 million [10][24] - Average full-time active students grew over 10% year over year to 24,604 students [10][22] - New student starts grew more than 21% year over year to 6,650 starts [10][22] - Net income increased 47% to $11.4 million with diluted earnings per share of $0.21 [10][24] - Adjusted EBITDA grew approximately 28% year over year to $28.9 million [10][24] Business Line Data and Key Metrics Changes - Concord division revenue increased 20.3% year over year to $73.2 million, with average full-time active students up 15.5% [23] - UTI division revenue increased 8.8% year over year to $134.2 million, with average full-time active students up 7% [23] Market Data and Key Metrics Changes - Demand for skilled labor, particularly in trades and healthcare, continues to strengthen, creating a favorable environment for the company's growth [8][9] - The ongoing supply and demand imbalance in critical sectors is generating additional tailwinds for the business [8] Company Strategy and Development Direction - The company is committed to growth, diversification, and optimization as part of its North Star strategy, with plans to launch at least six new programs each year and open at least two new campuses annually starting in fiscal 2026 [20][31] - The company is raising its fiscal 2025 guidance, expecting consolidated revenue between $825 million and $835 million, reflecting approximately 13% year-over-year growth [17][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite regulatory uncertainties and macroeconomic conditions [7][10] - The company is well-positioned to capitalize on the increasing demand for skilled trades and healthcare professionals [18][31] Other Important Information - The company has recently appointed a new CFO and COO to support its growth strategy [18][19] - The company is actively pursuing strategic acquisitions to enhance its educational reach and complement its portfolio, particularly in healthcare [31] Q&A Session Summary Question: Any campuses or programs to highlight for strong new starts? - Management noted that increased marketing investment in healthcare and strong performance in clinical courses contributed to new starts [36][37] Question: How does enrollment growth break out for UTI and Concord? - Management indicated that Concord is approaching capacity in clinical courses, while UTI is seeing strong demand in skilled trades [42][43] Question: What trends are observed in employer demand for graduates? - Management reported steady demand for transportation graduates and increasing demand for skilled trades and healthcare graduates [53][56] Question: What could go wrong in achieving the low end of guidance? - Management expressed confidence in the guidance but acknowledged potential challenges in maintaining double-digit growth rates in the upcoming periods [81][83]

Financial Performance & Guidance - The company projects FY2025 revenue between $825 million and $835 million[7] - The company anticipates FY2025 net income between $56 million and $60 million[7] - The company expects FY2025 adjusted EBITDA between $124 million and $128 million[7] - The company is targeting an average annual revenue growth of approximately 10% through FY29, with an adjusted EBITDA margin approaching 20% by FY29[7] Strategic Initiatives - The company is implementing a "North Star Strategy" to accelerate growth, diversification, and optimization[45] - The company plans to launch a minimum of six new programs annually at existing campuses starting in FY2025[45] - The company intends to open at least two new campuses each year between FY2026 and FY2029[45] Division Performance (FY2024) - The UTI Division generated $486 million in revenue with approximately 14,000 average students[12] - The Concorde Division generated $246 million in revenue with approximately 8,000 average students[12]

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Universal Technical Institute (UTI) , which belongs to the Zacks Schools industry.This school for auto, motorcycle and marine technicians has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 67.78%.For the last reported quarter, Univers ...

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported breakeven adjusted earnings per share for Q1 2025, outperforming the Zacks Consensus Estimate of a loss of 4 cents, driven by an 11.2% year-over-year reduction in costs and expenses, although the bottom line declined from 15 cents in the prior year [1] - Total revenues of $1.3 billion exceeded the Zacks Consensus Estimate by 7.7%, attributed to higher-than-expected revenues from Drilling Services and Completion Services, despite a 15.2% year-over-year decline [1] Segmental Performances - **Drilling Services**: Revenues totaled $412.9 million, down 9.8% from $457.6 million in the prior year, but beat the estimate of $405.7 million. Operating income was $76.3 million compared to $89.6 million in Q1 2024, exceeding the estimate of $63.2 million [3] - **Completion Services**: Revenues were $766.1 million, a decrease of 18.9% from $945 million in the previous year, yet surpassed the estimate of $690.7 million. Operating loss was $18.8 million compared to a profit of $49.6 million in Q1 2024, but was narrower than the estimated loss of $31.4 million [4] - **Drilling Products**: Revenues declined 4.8% to $85.7 million from $90 million in the prior year, missing the estimate of $86 million. Operating profit increased 3.5% to $6.7 million, beating the estimate of $4.3 million [5] - **Other Services**: Revenues were $15.9 million, down 10.6% from $17.8 million in the previous year, missing the estimate of $16.5 million. Operating income was $0.2 million compared to $1 million in Q1 2024, also missing the estimate of $0.5 million [6] Financial Position - PTEN spent $161.8 million on capital programs in the reported quarter, down from $226.9 million in the prior year. As of March 31, 2025, the company had cash and cash equivalents of $225.2 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26% [7] - The company returned $51 million to shareholders in Q1 2025, including $20 million in share repurchases, with $741 million remaining under its share repurchase authorization [8] Q2 Outlook - **Drilling Services**: Rig activity is expected to remain steady, with a slight decline in adjusted gross profit anticipated due to lower average contracted revenues from older contracts and seasonal cost increases [10] - **Completion Services**: Activity is expected to stay stable, with a potential decline in adjusted gross profit depending on oil prices later in the quarter [11] - **Drilling Products**: Adjusted gross profit is expected to remain flat, with steady activity in the U.S. and a seasonal slowdown in Canada balanced by higher international revenues [11] - **Other Services**: A proportional decline in adjusted gross profit is expected due to the absorption and sale of parts of the Great Plains Oilfield Rental business [12]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...

Core Insights - Universal Technical Institute, Inc. (UTI) is opening its first skilled trades campus in San Antonio as part of its North Star strategy to enhance workforce education in the U.S. [1][2] - The San Antonio campus is one of three planned for Fiscal 2026, pending regulatory approvals, and will focus on transportation, skilled trades, and energy education [2][6] - The new campus is expected to open in Spring 2026 and will offer programs in aviation, welding, HVACR, and electrical training [3][4] Company Strategy - UTI's North Star strategy emphasizes growth, diversification, and optimization, aiming for approximately 10% revenue CAGR and an Adjusted EBITDA margin of nearly 20% by fiscal 2029 [6] - The company reported strong financial results for Q1 of fiscal 2025, with improvements in revenue, Adjusted EBITDA, and new student starts, leading to increased guidance for the fiscal year [6] Community Impact - Local officials, including San Antonio's Mayor Ron Nirenberg, have expressed support for UTI's presence, highlighting its role in enhancing economic mobility for the community [5] - The San Antonio campus will occupy over 50,000 square feet and is strategically located to meet the growing demand for skilled workers in the area [4][5]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Company Summary - Universal Technical Institute (UTI) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 43.1%, with projected EPS growth of 34% this year, surpassing the industry average of 23.8% [4] - UTI's year-over-year cash flow growth stands at 60.3%, significantly higher than the industry average of 3.2% [5] - The annualized cash flow growth rate over the past 3-5 years is 63.3%, compared to the industry average of 7.4% [6] - There have been upward revisions in current-year earnings estimates for UTI, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8] - UTI has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9][10]