Universal Technical Institute(UTI)2024-11-20 23:56Financial Data and Key Metrics Changes - Revenue for fiscal year 2024 grew approximately 21% year-over-year to 42 million with diluted earnings per share of 103 million [9] - Total new student starts increased year-over-year by roughly 19% [10] Business Line Data and Key Metrics Changes - Concorde division saw a revenue increase of 38.3% year-over-year, contributing 486.4 million [42] - Average full-time active students increased by 10% year-over-year across both divisions [38] Market Data and Key Metrics Changes - The demand for skilled trades and healthcare education is increasing, with a notable shift towards skilled collar jobs over traditional college paths [14][15] - The company is experiencing a favorable environment for skilled trades education, as evidenced by rising enrollments and positive media coverage [15][16] Company Strategy and Development Direction - The company is entering Phase Two of its North Star strategy, focusing on launching a minimum of six new programs each year and opening at least two new campuses annually starting in fiscal 2026 [32][33] - The company plans to expand its reach into new geographies and broaden its program offerings to meet growing student demands [58][59] - Strategic acquisitions are being evaluated to enhance the company's presence in healthcare [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable macro environment for skilled trades education, noting improved enrollment trends compared to previous years [69] - The company anticipates continued growth in revenue and adjusted EBITDA for fiscal 2025, with guidance of 815 million in revenue [31][48] - Management highlighted the importance of maintaining strong student outcomes and operational efficiencies to navigate potential regulatory changes [76] Other Important Information - Total available liquidity at the end of the quarter was 69 million of remaining capacity on the revolving credit facility [44] - The company paid down an additional 17 million [44] Q&A Session Summary Question: Can you correlate the macro tailwinds from fall 2024 to previous years? - Management noted that enrollments were down in fall 2022 due to inflation concerns, but recovery began in 2023, leading to improved enrollments in 2024 [69] Question: What is driving the upside guidance for 2025? - The guidance increase is attributed to both stronger than expected Concorde performance and the addition of new programs [75] Question: How do you expect the political landscape to impact UTI? - Management emphasized focusing on operational outcomes rather than political changes, noting potential benefits from a more favorable regulatory environment [76] Question: Any changes expected in SG&A expenses due to the political shift? - Management does not anticipate significant changes in SG&A expenses, as lobbying efforts may shift focus from federal to state levels [81] Question: What are the plans for new program launches and campus openings? - The company plans to launch three new campuses in 2026 and continue expanding program offerings [83] Question: How will marketing and admissions costs evolve? - Management expects to achieve efficiencies in marketing and admissions spend as the company grows and adds more programs [98]