Universal Technical Institute, Inc. News
Universal Technical Institute Reports Second Quarter Results for Fiscal 2008
Second Quarter Operating Performance
Net revenues for the second quarter of fiscal 2008 were
The decrease in net revenues primarily relates to a decline in average undergraduate student enrollment partially offset by higher tuition prices.
Operating income for the second quarter of fiscal 2008 was
Operating margin for the second quarter of fiscal 2008 decreased to 2.6 percent from 10.3 percent for the second quarter of fiscal 2007. Net income margin for the second quarter of fiscal 2008 decreased to 2.2 percent from 6.7 percent for the second quarter of fiscal 2007 for the same reasons previously described, partially offset by higher interest income in the current period.
"Our financial results reflect the accumulation of several quarters of insufficient student contracts and starts. This shortfall negatively impacted our average student population, revenue and income. At the same time, the quarter marked an inflection point for steady improvement in a number of leading indicators. And, the trend continues. While it will take time for the progress to be fully reflected in our business results, I am excited about the positive momentum on which we can build," said
Six Month Operating Performance
Net revenues for the first six months of fiscal 2008 were
Operating income in the first six months of fiscal 2008 was
Net income for the first six months of fiscal 2008 declined to
Balance Sheet and Cash Flow
At
Cash flow provided by operations was
Student Enrollment Data and Capacity Utilization Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 Average undergraduate full-time student enrollment 15,092 16,389 15,759 16,827 Total seats available 25,090 25,410 25,090 25,410 Average capacity utilization 60.2% 64.5% 62.8% 66.2% End of period undergraduate full-time student enrollment 14,637 16,026 14,637 16,026
Lower starts were the primary contributor to declines in the second quarter and six month full-time student enrollment statistics.
Conference Call
Management of
About
Safe Harbor Statement
Statements in this news release concerning the future business, operating results and financial condition of the company are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations and are subject to a number of uncertainties that could cause actual performance and results to differ materially from the results discussed in the forward-looking statements. Factors that could affect the company's actual results include changes to federal and state educational funding, possible failure or inability to obtain regulatory consents and certifications for new or expanding campuses, potential increased competition, changes in demand for the programs offered by the company, increased investment in management and capital resources, the effectiveness of the company's recruiting, advertising and promotional efforts, changes to interest rates and low unemployment. Further information on these and other potential factors that could affect the company's financial results or condition may be found in the company's filings with the Securities and Exchange Commission, all of which are incorporated herein by reference. The company undertakes no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
(Tables Follow) UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED) ($'s in thousands, except per share amounts) Three Months Ended Six Months Ended March 31, March 31, 2008 2007 2008 2007 Net revenues $88,157 $91,651 $178,192 $181,185 Operating expenses: Educational services and facilities 46,822 45,854 93,008 90,049 Selling, general and administrative 39,060 36,347 73,605 71,161 Total operating expenses 85,882 82,201 166,613 161,210 Income from operations 2,275 9,450 11,579 19,975 Other expense (income): Interest income (866) (606) (2,237) (1,278) Interest expense 9 11 19 22 Total other income (857) (595) (2,218) (1,256) Income before income taxes 3,132 10,045 13,797 21,231 Income tax expense 1,226 3,926 5,408 8,202 Net income $1,906 $6,119 $8,389 $13,029 Earnings per share: Net income per share - basic $0.08 $0.23 $0.32 $0.49 Net income per share - diluted $0.07 $0.22 $0.32 $0.48 Weighted average number of common shares outstanding: Basic 25,349 26,763 26,072 26,754 Diluted 25,593 27,257 26,476 27,186 UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) ($'s in thousands, except per share amounts) March 31, September 30, 2008 2007 Assets Current assets: Cash and cash equivalents $75,037 $75,594 Receivables, net 17,137 14,504 Deferred tax assets 6,007 5,656 Prepaid expenses and other current assets 8,199 7,380 Total current assets 106,380 103,134 Property and equipment, net 69,522 104,595 Goodwill 20,579 20,579 Other assets 3,821 4,514 Total assets $200,302 $232,822 Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued expenses $38,545 $42,068 Deferred revenue 37,734 49,389 Income tax payable 416 - Accrued tool sets 3,817 4,009 Other current liabilities 175 416 Total current liabilities 80,687 95,882 Deferred tax liabilities 2,291 2,025 Other liabilities 11,066 10,410 Total liabilities 94,044 108,317 Commitments and contingencies Shareholders' equity: Common stock, $0.0001 par value, 100,000,000 shares authorized, 28,368,134 shares issued and 25,050,889 shares outstanding at March 31, 2008 and 28,259,893 shares issued and 26,828,948 shares outstanding at September 30, 2007 3 3 Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding - - Paid-in capital 134,998 132,131 Treasury stock, at cost, 3,317,245 shares at March 31, 2008 and 1,430,945 shares September 30, 2007 (59,571) (30,029) Retained earnings 30,828 22,400 Total shareholders' equity 106,258 124,505 Total liabilities and shareholders' equity $200,302 $232,822 UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ($'s in thousands) For the Six Months Ended March 31, 2008 2007 Cash flows from operating activities: Net income $8,389 $13,029 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,791 8,552 Bad debt expense 2,236 1,311 Stock-based compensation 2,820 3,376 Deferred income taxes (408) (838) Loss on sale of property and equipment 530 97 Changes in assets and liabilities: Receivables (6,227) 2,273 Prepaid expenses and other current assets (838) (252) Other assets 464 82 Accounts payable and accrued expenses 787 (8,240) Deferred revenue (11,655) (4,445) Income tax payable 1,550 1,823 Accrued tool sets and other current liabilities (433) (146) Other liabilities 138 32 Net cash provided by operating activities 6,144 16,654 Cash flows from investing activities: Purchase of property and equipment (10,430) (18,088) Proceeds from sale of property and equipment 32,661 9 Net cash provided by (used in) investing activities 22,231 (18,079) Cash flows from financing activities: Excess tax benefit from stock-based compensation 224 - Purchase of treasury stock (29,542) - Proceeds from issuance of common stock under employee plans 386 400 Net cash (used in) provided by financing activities (28,932) 400 Net decrease in cash and cash equivalents (557) (1,025) Cash and cash equivalents, beginning of period 75,594 41,431 Cash and cash equivalents, end of period $75,037 $40,406
SOURCE
Search Our News Using Google Search
Can't find what you want? Try using Google:
