- Positions Universal Technical
Institute to Seize Opportunity in High-Growth, High-Demand
Healthcare Education Market
- Significantly Accelerates Ongoing Growth and Diversification
Efforts in Conjunction with Existing Initiatives to Meet Increasing
Demand from Employers and Students
- Universal Technical Institute and
Concorde Career Colleges Together Now Serve 20,000+ Students Across
14 States and 33 Locations with Significant
Opportunities to Expand to Meet Varied Workforce-Training
Needs
- Concorde CEO Jami Frazier Joins the Universal Technical Institute Senior Leadership
Team as President of the Healthcare Division
PHOENIX, Dec. 1, 2022
/PRNewswire/ -- Universal Technical
Institute, Inc. (NYSE: UTI), a leading workforce
solutions provider of transportation and skilled trades education
programs, today announced the close of its acquisition of Concorde
Career Colleges, Inc. ("Concorde"), which offers more than 20
programs across the Allied Health, Dental, Nursing, Patient Care,
and Diagnostic fields. The acquisition expands Universal Technical Institute's portfolio of
offerings into the higher-growth healthcare arena and creates the
opportunity to bring workforce educational solutions to a broader
array of students and employers.
The $50 million all-cash
acquisition was previously announced on May
3, 2022, and includes 17 campuses in eight states that
currently serve approximately 8,000 students. For the trailing
twelve months ended September 30,
2022, Concorde reported unaudited revenue of approximately
$200 million and adjusted EBITDA of
approximately $17 million.
"We are pleased to welcome Concorde's leadership team, faculty
and staff, and, most importantly its students, to the Company,"
said Universal Technical Institute
Chief Executive Officer Jerome
Grant. "This transaction marks a major milestone in
executing our strategy as we expand the scope of our skilled
education programs to serve students' varied workforce-training
needs and drive growth for the company."
Mr. Grant continued, "Together with Concorde, we have now more
than doubled the number of campuses in our ecosystem and expanded
into the critical area of healthcare training to help meet the
national shortage of healthcare workers, as part of our mission of
becoming a valued and trusted educational partner for students
across multiple industry verticals."
Universal Technical Institute will
support Concorde's existing efforts to expand the healthcare
opportunities for students and alumni, including adding new
programs (pending regulatory approval), growing existing online
offerings, and optimizing the current campus locations to enhance
the opportunity for past, current and future students to increase
their skills.
"On behalf of the Concorde team, I am excited to be joining
Universal Technical Institute," said
Concorde Chief Executive Officer Jami
Frazier. "Their core focus of delivering strong student and
employment outcomes aligns closely with Concorde's values of being
student-centered, community-based, and achievement-driven. I look
forward to collaborating with Jerome and his team as we work to
help students and employers close the gap between the need for
well-trained and skilled workers and the availability of quality
programs designed to meet the needs of employers across a variety
of industries."
With the acquisition of Concorde complete, the Company will
operate and report as two divisions. One will be comprised of
Concorde and its leading healthcare education programs and
campuses. Jami Frazier will serve as
the Divisional President, reporting to CEO Jerome Grant. The other will continue as
Universal Technical Institute, which
also includes brands such as UTI, MIAT College of Technology,
Motorcycle Mechanics Institute, Marine Mechanics Institute, and
NASCAR Technical Institute. Jerome
Grant will continue to directly lead this division until a
Divisional President is named.
Earnings Call
Universal Technical Institute will discuss the acquisition
in more detail and provide updated investor materials as part of
its previously announced fiscal 2022 full year and fourth quarter
earnings call on December 12,
2022.
About Universal Technical Institute, Inc.
Universal Technical Institute (NYSE: UTI) was founded
in 1965 and is a leading workforce solutions provider of
transportation, skilled trades and healthcare education programs,
whose mission is to serve students, partners, and communities by
providing quality education and support services for in-demand
careers across a number of highly-skilled fields.
The Company is comprised of two divisions: UTI and Concorde
Career Colleges. UTI operates 16 campuses located in 9 states and
offers a wide range of transportation and skilled trades technical
training programs under brands such as UTI, MIAT College of
Technology, Motorcycle Mechanics Institute, Marine Mechanics
Institute, and NASCAR Technical Institute. Concorde Career Colleges
operates across 17 campuses in 8 states, offering programs in the
Allied Health, Dental, Nursing, Patient Care, and Diagnostic
fields.
For more information, visit www.uti.edu or
www.concorde.edu, or visit us on LinkedIn at @Universal Technical Institute and @Concorde Career
Colleges or on Twitter @news_UTI or @ConcordeCareer.
Non-GAAP Measures
For internal reporting purposes, Concorde defines adjusted
EBITDA as net income (loss) before interest expense, interest
income, income taxes, depreciation and amortization, adjusted for
items not considered part of the company's normal recurring
operations. Adjusted EBITDA is a non-GAAP financial measure,
which is provided to supplement, but not substitute for, the most
directly comparable GAAP measure. We choose to disclose this
non-GAAP financial measure for Concorde because it provides an
additional performance measure. Since the items excluded from this
measure are significant components in understanding and assessing
financial performance under GAAP, this measure should not be
considered to be an alternative to net income (loss), or any other
measures derived in accordance with GAAP as a measure of operating
performance or profitability.
Forward-Looking Statements
All statements contained in this press release, other than
statements of historical fact, are "forward-looking" statements
within the meaning of the safe harbor from civil liability provided
for such statements by the Private Securities Litigation Reform Act
of 1995 (set forth in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended). These forward-looking statements which
address Universal Technical Institute, Inc.'s ("UTI") expected
future business and financial performance may contain words such as
"goal," "target," "future," "estimate," "expect," "anticipate,"
"intend," "plan," "believe," "seek," "project," "may," "should,"
"will," the negative form of these expressions or similar
expressions. Examples of forward-looking statements include, among
others, statements regarding (1) UTI's belief that the acquisition
will serve as a cornerstone for its key future growth and
diversification efforts; (2) UTI's ability to integrate Concorde's
healthcare programs into its portfolio of educational offerings;
(3) UTI's anticipated expansion efforts; (4) UTI's expectation of
increasing shareholder value; and (5) UTI's expectation of
accelerating its revenue, profitability and cash flow over the next
several years. Forward-looking statements are neither historical
facts nor assurances of future performance. Instead, they are based
only on UTI's current beliefs, expectations, and assumptions
regarding the future of its business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of UTI's control. UTI's actual results and
financial condition may differ materially from those indicated in
the forward-looking statements. Therefore, you should not rely on
any of these forward-looking statements. Important factors that
could affect UTI's actual results include, among other things,
changes to federal and state educational funding, changes to
regulations or agency interpretation of such regulations affecting
the for-profit education industry, possible failure or inability to
obtain regulatory consents and certifications for new or modified
campuses or instruction, potential increased competition, impacts
related to the COVID-19 pandemic, changes in demand for the
programs UTI offers, increased investment in management and capital
resources, the effectiveness of UTI student recruiting, advertising
and promotional efforts, changes to interest rates and
unemployment, general economic and political conditions, the
adoption of new accounting standards, and other risks that are
described from time to time in UTI's public filings. Further
information on these and other potential factors that could affect
the financial results or condition may be found in the company's
filings with the SEC. Any forward-looking statements made by
UTI in this press release are based only on information currently
available to UTI and speak only as of the date on which it is
made. UTI expressly disclaims any obligation to publicly
update any forward-looking statements, whether written or oral,
that may be made from time to time, whether as a result of new
information, future developments, changes in expectations, any
changes in events, conditions, or circumstances, or otherwise.
Media Contact
Alanna
Vitucci
avitucci@uti.edu
480.710.6843
View original content to download
multimedia:https://www.prnewswire.com/news-releases/universal-technical-institute-expands-platform-of-workforce-solutions-offerings-with-completion-of-concorde-career-colleges-inc-acquisition-301692062.html
SOURCE Universal Technical
Institute, Inc.