Strategy expected to deliver approximately 10
percent revenue CAGR and expand Adjusted EBITDA margin to nearly 20
percent through fiscal 2029
PHOENIX, Aug. 5, 2024
/PRNewswire/ -- Universal Technical
Institute, Inc., a leading workforce solutions provider,
today announced the next phase of its "North Star Strategy" to
accelerate the company's mission to close the skilled workforce gap
in America. The core tenets of the strategy—growth, diversification
and optimization—are the foundation for initiatives across the
company's two divisions of Universal Technical
Institute (UTI), which offers transportation, skilled trades
and energy education programs; and Concorde Career Colleges, which
specializes in the dental, nursing, and allied health
professions.
The second phase of the North Star Strategy is expected to
deliver approximately 10% revenue CAGR and expand its Adjusted
EBITDA margin to nearly 20 percent through fiscal 2029.
"Five years ago, we launched the first phase of the North Star
Strategy with a singular vision: to realize the company's fullest
potential as a partner in solving the country's shortage of skilled
collar workers," said Jerome Grant,
CEO, Universal Technical Institute. "We
achieved significant milestones in the years since, including
nearly tripling the number of campus locations and more than
doubling the number of students we serve; more than doubling our
revenue; and a more than five times increase in our
profitability."
Grant continued, "As we near the successful implementation of
the first phase of the strategy, our company is stronger, more
diverse and resilient. We are now prepared to embrace the ambitious
agenda we have set for the strategy's second phase, which we
believe will significantly increase the company's value through
impressive revenue growth and expanded profitability."
Added Todd Hitchcock, EVP and
Chief Strategy and Transformation Officer, "As we realize the
success of this first phase, we are strongly positioned to explore
additional opportunities to support the critical need for highly
trained, skilled collar workers in the
United States. Pending regulatory approval, we expect to
launch a minimum of six programs annually at our existing campuses
beginning in fiscal year 2025 and open at least two new campuses
each year between fiscal years 2026 and 2029, which includes
expanding Concorde's campus offerings and footprint."
Under the leadership of CEO Grant and his senior management
team, the company completed the acquisitions of MIAT College of
Technology and Concorde to expand its education offerings and
geographic reach; established two new UTI campuses in Austin, Texas and Miramar, Fla.; substantially increased the
number of employer partnerships; and received multiple awards
honoring its curriculum and student outcomes. As a result, revenue
and adjusted EBITDA have grown from $331
million and $17 million,
respectively, in fiscal year 2019 to $725
million and $103 million,
respectively, in fiscal year 2024, per the midpoint of the
company's last published guidance.
"As we implement the second phase of our strategy, we will
opportunistically explore additional strategic acquisitions that
are consistent with our mission, which would further enhance our
planned growth trajectory," said Grant. "Taken together, the three
tenets of our strategy will allow us to reach even more students
with industry-aligned workforce programs that demonstrate strong
student outcomes, while also increasing the financial strength of
the company."
On Tuesday, August 6, CEO Grant
and CFO Troy Anderson will host a
conference call to discuss the financial and operational results
for the fiscal third quarter that ended on June 30, 2024. They also will discuss the key
elements of the North Star Strategy and related expectations over
the next five years. More information about the call is available
here.
For more information about Universal
Technical Institute, Inc., visit investor.uti.edu.
About Universal Technical
Institute, Inc.
Universal
Technical Institute, Inc. (NYSE: UTI) provides students with
the practical skills and knowledge required by employers. Founded
in 1965, the company has grown into a national network of campuses
offering programs through its two divisions of UTI and Concorde
Career Colleges. The UTI division focuses on transportation,
skilled trades and energy education programs. The Concorde division
specializes in nursing, dental and allied health professions. Under
the leadership of CEO Jerome
Grant, UTI is recognized for its excellence in career
education and its impact on workforce development. For more
information, visit www.uti.edu or www.concorde.edu,
visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde
Career Colleges, or on X (formerly Twitter) @news_UTI or
@ConcordeCareer.
Media Contact:
Susan
Aspey
saspey@uti.edu
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SOURCE Universal Technical
Institute, Inc.