PHOENIX, Feb. 6 /PRNewswire-FirstCall/ -- Universal Technical Institute, Inc. (NYSE:UTI), a provider of technical education training, today announced financial results for the first quarter of fiscal 2008, ended December 31, 2007.
First Quarter Performance Net revenues for the first quarter of fiscal 2008 were $90.0 million, a 0.6% increase, compared with $89.5 million for the same period in the previous year. Net income was $6.5 million, or 24 cents per diluted share, compared with net income of $6.9 million, or 26 cents per diluted share, for the first quarter a year ago.
The net revenue increase primarily relates to higher tuition rates and an additional earning day during the quarter which was partially offset by lower average undergraduate student enrollment combined with an increase in need based tuition scholarships, higher military and veteran discounts as well as other reductions to income.
Operating income in the first quarter of fiscal 2008 was $9.3 million compared with $10.5 million for the same period in the previous year. The overall decrease in operating income reflects higher occupancy costs, professional and contract services costs and was partially offset by lower advertising costs during the first quarter. Advertising costs were lower during the first quarter due to our planned decrease in spending related to less audience focus during the holiday and political advertising season. First quarter student capacity utilization also declined by 270 basis points to 66.1% as compared to 68.8% the same quarter a year ago.
Net income for the first quarter of fiscal 2008 was $6.5 million, or 24 cents per diluted share, compared with $6.9 million, or 26 cents per diluted share, in the prior year period. Net income margin for the first quarter of fiscal 2008 was 7.2% compared with 7.7% a year ago for the same reasons previously described and was partially offset by higher interest income in the current period.
"This quarter marks the first time in three years, that our show rate stabilized year over year. Our show rate during November and December showed solid improvement of more than 400 basis points compared to last year. We are optimistic that our process improvement efforts in combination with a more favorable macro-environment will begin to build positive momentum for the business," said Kimberly McWaters, president and chief executive officer of UTI.
Balance Sheet and Cash Flow At December 31, 2007, the company had $99.6 million in cash and cash equivalents, compared with $75.6 million at the end of fiscal 2007. The increase in cash during the first quarter of fiscal 2008 primarily related to the sale and leaseback transaction that was completed at the Norwood, Massachusetts campus which increased cash by $32.6 million. At December 31, 2007, the company had shareholders' equity of $125.6 million, compared with $124.5 million at September 30, 2007. Pursuant to the previously announced share repurchase plan, the company purchased 1,835,300 shares of its stock from December 17, 2007 through February 5, 2008 at an average cost of $15.65 per share or 57% of the $50.0 million program. This includes 237,400 shares and $3,567,007 that have not been settled.
Cash flow provided by operations was $4.5 million for the first quarter of fiscal 2008 compared with $10.7 million for the first quarter of fiscal 2007.
Student Enrollment Data Average undergraduate enrollment for the first quarter of fiscal 2008 was 16,576 students, a decrease of 4.0%, compared with 17,265 students for the same period a year ago. Undergraduate enrollment at the end of the first quarter of fiscal 2008 was 15,415 students, a decrease of approximately 5.2%, compared with 16,263 students at the end of the first quarter of fiscal 2007.
Conference Call Management of Universal Technical Institute will hold a conference call to discuss its fiscal 2008 first quarter results today at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time). This call can be accessed by dialing 800-240-5318 or 303-262-2138. Investors are also invited to listen to this call live at http://www.uti.edu/. Please access the web site at least 15 minutes early to register, download and install any necessary audio software. A replay of the call will be available on the Investor Relations section of UTI's website and will be archived for 60 days.
About Universal Technical Institute Universal Technical Institute is a provider of technical education training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians. The company offers undergraduate degree, diploma and certificate programs at 10 campuses across the United States, and manufacturer-sponsored advanced programs at 18 dedicated training centers. Through its campus-based school system, Universal Technical Institute offers specialized technical education programs under the banner of several well-known brands, including Universal Technical Institute (UTI), Motorcycle Mechanics Institute and Marine Mechanics Institute (MMI) and NASCAR Technical Institute (NTI).
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, construction delays for new or expanding campuses, 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.
Note with respect to non-GAAP financial measures included within Balance Sheet and Cash Flow discussion In addition to using results under accounting principles generally accepted in the United States, management also disclosed commitments that were not settled related to the company's share repurchase program in an effort to provide greater transparency to financial statement users.
(Table Follows) UNIVERSAL TECHNICAL INSTITUTE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts and student related data) Three Months Ended
December 31,
2007 2006 Net Revenues $90,035 $89,534 Operating expenses:
Educational services and facilities 46,186 44,195
Selling, general and administrative 34,545 34,814
Total operating expenses 80,731 79,009
Income from operations 9,304 10,525 Other (income) expense:
Interest income (1,371) (672)
Interest expense 10 11
Total other income (1,361) (661)
Income before income taxes 10,665 11,186
Income tax expense 4,182 4,276 Net income available to common shareholders $6,483 $6,910
Earnings per share:
Net income per share - basic $0.24 $0.26
Net income per share - diluted $0.24 $0.26 Weighted average number of common
shares outstanding:
Basic 26,788 26,744
Diluted 27,423 27,092 Other Data:
Depreciation and amortization $4,381 $4,124
Number of campuses 10 10
Average undergraduate enrollment 16,576 17,265
As of
December 31, September 30,
Balance Sheet Data: 2007 2007
Cash and cash equivalents $99,645 $75,594
Current assets $129,198 $103,134
Working capital $43,780 $7,252
Total assets $223,915 $232,822
Total shareholders' equity $125,610 $124,505
DATASOURCE: Universal Technical Institute, Inc.
CONTACT: Jennifer L. Haslip, Senior Vice President and CFO, +1-623-445-9402, or Kimberly J. McWaters, Chief Executive Officer and President, +1-623-445-9450, both of Universal Technical Institute, Inc.
Web site: http://www.uticorp.com/
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