Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2023 | Feb. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-31923 | |
Entity Registrant Name | UNIVERSAL TECHNICAL INSTITUTE, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-0226984 | |
Entity Address, Address Line One | 4225 East Windrose Drive | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85032 | |
City Area Code | 623 | |
Local Phone Number | 445-9500 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | UTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,732,017 | |
Entity Central Index Key | 0001261654 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 143,590 | $ 151,547 |
Restricted cash | 5,233 | 5,377 |
Receivables, net | 22,722 | 25,161 |
Notes receivable, current portion | 6,001 | 5,991 |
Prepaid expenses | 12,117 | 9,412 |
Other current assets | 7,779 | 7,497 |
Total current assets | 197,442 | 204,985 |
Property and equipment, net | 263,922 | 266,346 |
Goodwill | 28,459 | 28,459 |
Intangible assets, net | 18,801 | 18,975 |
Notes receivable, less current portion | 33,393 | 30,672 |
Right-of-use assets for operating leases | 174,973 | 176,657 |
Deferred tax asset, net | 4,855 | 3,768 |
Other assets | 10,568 | 10,823 |
Total assets | 732,413 | 740,685 |
Current | ||
Accounts payable and accrued expenses | 68,498 | 69,941 |
Deferred revenue | 81,474 | 85,738 |
Operating lease liability, current portion | 22,521 | 22,481 |
Long-term debt, current portion | 2,560 | 2,517 |
Other current liabilities | 6,882 | 4,023 |
Total current liabilities | 181,935 | 184,700 |
Deferred tax liabilities, net | 663 | 663 |
Operating lease liability | 164,125 | 165,026 |
Long-term debt | 158,962 | 159,600 |
Other liabilities | 4,543 | 4,729 |
Total liabilities | 510,228 | 514,718 |
Commitments and contingencies (Note 16) | ||
Shareholders’ equity: | ||
Common stock, $0.0001 par value, 100,000 shares authorized, 53,814 and 34,157 shares issued | 5 | 3 |
Preferred stock, $0.0001 par value, 10,000 shares authorized; 0 and 676 shares of Series A Convertible Preferred Stock issued and outstanding, liquidation preference of $100 per share | 0 | 0 |
Paid-in capital - common | 214,071 | 151,439 |
Paid-in capital - preferred | 0 | 66,481 |
Treasury stock, at cost, 82 shares | (365) | (365) |
Retained earnings | 6,897 | 5,946 |
Accumulated other comprehensive income | 1,577 | 2,463 |
Total shareholders’ equity | 222,185 | 225,967 |
Total liabilities and shareholders’ equity | $ 732,413 | $ 740,685 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 53,814,000 | 34,157,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 676,000 |
Preferred stock, shares outstanding (in shares) | 0 | 676,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Treasury stock (in shares) | 82,000 | 82,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 174,695 | $ 120,004 |
Operating expenses: | ||
Educational services and facilities | 92,409 | 61,408 |
Selling, general and administrative | 68,055 | 54,148 |
Total operating expenses | 160,464 | 115,556 |
Income from operations | 14,231 | 4,448 |
Other (expense) income: | ||
Interest income | 1,975 | 823 |
Interest expense | (2,871) | (1,423) |
Other income (expense), net | 214 | 325 |
Total other expense, net | (682) | (275) |
Income before income taxes | 13,549 | 4,173 |
Income tax expense (See Note 14) | (3,160) | (1,525) |
Net income | 10,389 | 2,648 |
Preferred stock dividends | (1,097) | (1,277) |
Income available for distribution | 9,292 | 1,371 |
Income allocated to participating securities | (2,855) | (514) |
Net income available to common shareholders | $ 6,437 | $ 857 |
Earnings per share (See Note 18): | ||
Net income per share - basic (in dollars per share) | $ 0.18 | $ 0.03 |
Net income per share - diluted (in dollars per share) | $ 0.17 | $ 0.02 |
Weighted average number of shares outstanding (See Note 18): | ||
Basic (in shares) | 36,434 | 33,805 |
Diluted (in shares) | 37,439 | 34,408 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10,389 | $ 2,648 |
Unrealized loss on interest rate swaps, net of taxes | (886) | (126) |
Comprehensive income | $ 9,503 | $ 2,522 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income | Common Stock | Common Stock Paid-in Capital | Preferred Stock Paid-in Capital |
Common Stock, Beginning Balance (in shares) at Sep. 30, 2022 | 33,857,000 | ||||||||
Beginning Balance at Sep. 30, 2022 | $ 215,397 | $ 3 | $ 0 | $ (365) | $ (1,307) | $ 2,213 | $ 148,372 | $ 66,481 | |
Preferred Stock, Beginning Balance (in shares) at Sep. 30, 2022 | 676,000 | ||||||||
Treasury Stock, Beginning Balance (in shares) at Sep. 30, 2022 | (82,000) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,648 | 2,648 | |||||||
Issuance of common stock under stock-based compensation plans (in shares) | 223,000 | ||||||||
Shares withheld for payroll taxes (in shares) | (73,000) | ||||||||
Shares withheld for payroll taxes | (525) | (525) | |||||||
Stock-based compensation | 1,169 | 1,169 | |||||||
Preferred stock dividends | $ (1,277) | (1,277) | |||||||
Preferred share repurchase (in shares) | 0 | ||||||||
Unrealized (loss) gain on interest rate swap, net of taxes | $ (126) | (126) | |||||||
Common Stock, Ending Balance (in shares) at Dec. 31, 2022 | 34,007,000 | ||||||||
Ending Balance at Dec. 31, 2022 | 217,286 | $ 3 | $ 0 | $ (365) | 64 | 2,087 | 149,016 | 66,481 | |
Preferred Stock, Ending Balance (in shares) at Dec. 31, 2022 | 676,000 | ||||||||
Treasury Stock, Ending Balance (in shares) at Dec. 31, 2022 | (82,000) | ||||||||
Common Stock, Beginning Balance (in shares) at Sep. 30, 2023 | 34,157,000 | ||||||||
Beginning Balance at Sep. 30, 2023 | $ 225,967 | $ 3 | $ 0 | $ (365) | 5,946 | 2,463 | 151,439 | 66,481 | |
Preferred Stock, Beginning Balance (in shares) at Sep. 30, 2023 | 676,000 | 676,000 | |||||||
Treasury Stock, Beginning Balance (in shares) at Sep. 30, 2023 | (82,000) | (82,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 10,389 | 10,389 | |||||||
Issuance of common stock under stock-based compensation plans (in shares) | 538,000 | ||||||||
Shares withheld for payroll taxes (in shares) | (178,000) | ||||||||
Shares withheld for payroll taxes | (2,054) | (2,054) | |||||||
Stock-based compensation | 1,482 | 1,482 | |||||||
Preferred stock dividends | $ (1,097) | (1,097) | |||||||
Preferred share repurchase (in shares) | 0 | (33,000) | |||||||
Preferred share repurchase | $ (11,616) | (8,341) | (3,275) | ||||||
Preferred Stock Conversion (in shares) | 19,297,000 | (643,000) | |||||||
Preferred Stock Conversion | 0 | $ 2 | 63,204 | (63,206) | |||||
Unrealized (loss) gain on interest rate swap, net of taxes | (886) | (886) | |||||||
Common Stock, Ending Balance (in shares) at Dec. 31, 2023 | 53,814,000 | ||||||||
Ending Balance at Dec. 31, 2023 | $ 222,185 | $ 5 | $ 0 | $ (365) | $ 6,897 | $ 1,577 | $ 214,071 | $ 0 | |
Preferred Stock, Ending Balance (in shares) at Dec. 31, 2023 | 0 | 0 | |||||||
Treasury Stock, Ending Balance (in shares) at Dec. 31, 2023 | (82,000) | (82,000) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 10,389 | $ 2,648 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,984 | 5,248 |
Amortization of right-of-use assets for operating leases | 5,531 | 4,120 |
Bad debt expense | 1,486 | 535 |
Stock-based compensation | 1,482 | 1,169 |
Deferred income taxes | (730) | 1,068 |
Training equipment credits earned, net | 529 | (83) |
Unrealized loss on interest rate swap | (886) | (126) |
Other losses (gains), net | 245 | (143) |
Changes in assets and liabilities: | ||
Receivables | 1,029 | 4,657 |
Prepaid expenses | (4,060) | (1,438) |
Other assets | 408 | 2,079 |
Notes receivable | (2,731) | (622) |
Accounts payable, accrued expenses and other current liabilities | 330 | (15,925) |
Deferred revenue | (4,264) | 4,634 |
Operating lease liability | (4,708) | (4,963) |
Other liabilities | (198) | (46) |
Net cash provided by operating activities | 10,836 | 2,812 |
Cash flows from investing activities: | ||
Cash paid for acquisition, net of cash acquired | 0 | (16,973) |
Purchase of property and equipment | (3,848) | (6,782) |
Proceeds from maturities of held-to-maturity securities | 0 | 29,000 |
Net cash (used in) provided by investing activities | (3,848) | 5,245 |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 0 | 90,000 |
Debt issuance costs related to the revolving credit facility | 0 | (484) |
Payments on term loans and finance leases | (618) | (273) |
Payment of preferred stock cash dividend | (1,097) | 0 |
Preferred share repurchase | (11,320) | 0 |
Payment of payroll taxes on stock-based compensation through shares withheld | (2,054) | (525) |
Net cash (used in) provided by financing activities | (15,089) | 88,718 |
Change in cash, cash equivalents and restricted cash | (8,101) | 96,775 |
Cash and cash equivalents, beginning of period | 151,547 | 66,452 |
Restricted cash, beginning of period | 5,377 | 3,544 |
Cash, cash equivalents and restricted cash, beginning of period | 156,924 | 69,996 |
Cash and cash equivalents, end of period | 143,590 | 162,229 |
Restricted cash, end of period | 5,233 | 4,542 |
Cash, cash equivalents and restricted cash, end of period | 148,823 | 166,771 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid, net of refunds | 62 | 0 |
Interest paid | 2,815 | 1,465 |
Supplemental schedule of noncash investing and financing activities: | ||
Training equipment obtained in exchange for services | 123 | 174 |
Depreciation of training equipment obtained in exchange for services | 134 | 198 |
Change in accrued capital expenditures during the period | (1,207) | 2,837 |
Preferred dividends payable | 0 | 1,277 |
Conversion of Series A Preferred Stock | $ 63,206 | $ 0 |
Nature of the Business
Nature of the Business | 3 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business Universal Technical Institute, Inc., which together with its subsidiaries is referred to as the “Company,” “we,” “us” or “our,” 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. We offer the majority of our programs in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs. We have two reportable segments as follows: Universal Technical Institute (“UTI”): UTI operates 16 campuses located in nine states and offers a wide range of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute (“MMI”), NASCAR Technical Institute, and MIAT College of Technology (“MIAT”). UTI also offers manufacturer specific advanced training programs, which include student-paid electives, at our campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. Lastly, UTI provides dealer technician training or instructor staffing services to manufacturers. UTI works closely with multiple original equipment manufacturers and industry brand partners to understand their needs for qualified service professionals. Concorde Career Colleges (“Concorde”): Concorde operates across 17 campuses in eight states and online, offering degree, non-degree, and continuing education programs in the allied health, dental, nursing, patient care and diagnostic fields. The Company has designated campuses that offer degree granting programs “Concorde Career College;” where allowed by state regulation. The remaining campuses are designated as “Concorde Career Institute.” Concorde believes in preparing students for their healthcare careers with practical, hands-on experiences including opportunities to learn while providing care to real patients. Prior to graduation, students will complete a number of hours in a clinical setting or externship, depending upon their program of study. We acquired Concorde on December 1, 2022. See Note 4 on “Acquisitions” for additional information. “Corporate” includes corporate related expenses that are not allocated to the UTI or Concorde reportable segments. Additional information about our reportable segments is presented in Note 19. Our primary source of revenues is currently tuition and fees paid by students. To pay for a substantial portion of their tuition, the majority of students rely on funds received from federal financial aid programs under Title IV Programs of the Higher Education Act of 1965, as amended (“HEA”), as well as from various veterans’ benefits programs. For further discussion, see Note 2 on “Summary of Significant Accounting Policies - Concentration of Risk” and Note 19 on “Government Regulation and Financial Aid” included in our 202 3 Annual Report on Form 10-K. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, our condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements. Normal and recurring adjustments considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the three months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2024. The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2023 Annual Report on Form 10-K . The unaudited condensed consolidated financial statements include the accounts of Universal Technical Institute, Inc. and our wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Other than described below, there have been no material changes or developments in our significant accounting policies or evaluation of accounting estimates and underlying assumptions or methodologies from those disclosed in Note 2 of our 2023 Annual Report on Form 10-K . Segment Recast |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded the following new accounting standard updates (“ASU”) apply to us. Effective in Fiscal 2025 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. This ASU will be effective for our Form 10-K for fiscal 2025 and our Form 10-Q for the first quarter of fiscal 2026. We are currently evaluating the impact this ASU may have on our financial statement disclosures. Effective in Fiscal 2026 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. This ASU will be effective for our Form 10-K for fiscal 2026. We are currently evaluating the impact this ASU may have on our financial statement disclosures. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Concorde Career Colleges On December 1, 2022, we completed the acquisition of Concorde. Concorde operates 17 campuses across eight states with approximately 7,600 students, and offers its programs via in-person, hybrid and online formats. Concorde offers more than 20 programs across the allied health, dental, nursing, patient care, and diagnostic fields. The acquisition expands our 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. Under the terms of the Stock Purchase Agreement (the “Purchase Agreement”), dated May 3, 2022, by and among the Company, Concorde, Liberty Partners Holdings 28, L.L.C., a Delaware limited liability company, and Liberty Investment IIC, LLC, a Delaware limited liability company (each a “Seller,” and collectively, the “Sellers”); and Liberty Partners L.P., a Delaware limited partnership, in its capacity as a representative of the Sellers, we acquired all of the issued and outstanding shares of capital stock of Concorde for a base purchase price of $50.0 million, less $1.9 million of net adjustments including the post-closing working capital adjustment, for total cash consideration paid of $48.1 million. As a result of the transactions contemplated by the Purchase Agreement, Concorde is now a wholly-owned subsidiary of the Company. We funded the consideration paid for Concorde by the Credit Facility entered into on November 18, 2022. See Note 12 for further details on the Credit Facility. In connection with the acquisition, we incurred total transaction costs of $5.3 million, of which $3.0 million was incurred during the year ended September 30, 2022 and $2.3 million was incurred during the year ended September 30, 2023. These costs are included in “Selling, general and administrative” expenses in the condensed consolidated statements of operations for the applicable period. Allocation of the purchase price Under the acquisition method of accounting, the total purchase price was allocated to the identifiable assets acquired and the liabilities assumed based on our valuation estimates of the fair values as of the acquisition date. As of December 1, 2023, the fair value and purchase price allocation are considered final. The final allocation of the purchase price at December 1, 2022 is summarized as follows: Assets acquired: Cash and cash equivalents $ 30,064 Restricted cash 1,689 Accounts receivable, net 6,800 Prepaid expenses 2,957 Other current assets 827 Property and equipment 23,238 Right-of-use assets for operating leases 71,153 Goodwill 11,600 Intangible assets 5,400 Deferred tax assets 5,112 Other assets 4,997 Total assets acquired $ 163,837 Less: Liabilities assumed Accounts payable and accrued expenses $ 15,482 Deferred revenue 20,145 Operating lease liability, current portion 10,011 Long-term debt, current portion (1) 807 Other current liabilities 208 Long-term debt (1) 5,468 Operating lease liability 63,582 Total liabilities assumed 115,703 Net assets acquired $ 48,134 (1) Long-term debt consists of one lease classified as a finance lease under ASC 842. Since September 30, 2023, we further adjusted the purchase price allocation by approximately $0.1 million for income taxes receivable and approximately $0.6 million for deferred income taxes due to completing and filing the final stub period income tax return for Concorde, which resulted in a $0.7 million adjustment to property and equipment. These adjustments did not have a material impact on the financial statements since the date of acquisition. The amount allocated to goodwill of $11.6 million represents the acquired assembled workforce. None of the goodwill is expected to be deductible for tax purposes. Factors that contributed to a purchase price resulting in the recognition of goodwill include Concorde’s strategic fit into our growth and diversification strategy, which is focused on offering a broader array of high-quality, in-demand workforce education solutions which both prepare students for a variety of careers in fast-growing fields and help close the country's skills gap by leveraging key industry partnerships. The purchase price allocation requires subjective estimates that, if incorrectly estimated, could be material to our condensed consolidated financial statements including the amount of depreciation and amortization expense. The fair value of the property and equipment was estimated using the cost and market approaches as of the valuation date. The fair value of the leases were estimated using the income and market approaches to determine if there was any favorable or unfavorable terms in place. The intangible assets acquired, which primarily consist of the accreditations and regulatory approvals, trademarks and trade names, and curriculum, were valued using different valuation techniques depending upon the nature of the intangible asset acquired, all of which are considered level 3 as defined in Note 6. The accreditations and regulatory approvals were valued using the multi-period excess earnings method (“MPEEM”) under the income approach. The MPEEM is a variation of discounted cash-flow analysis. Rather than focusing on the whole entity, the MPEEM isolates the cash flows that can be associated with a single intangible asset and measures fair value by discounting them to present value. The trademarks and trade names were valued using the relief from royalty method. The value of the trade name encompasses all items necessary to generate revenue utilizing the trade name. The curriculum was valued using the cost approach. The table below presents the final summary of the intangible assets acquired and the useful lives of these assets: Intangible Asset Useful life Amount Accreditations and regulatory approvals Indefinite $ 3,500 Trademarks and trade names 10 years 500 Curriculum 5 years 1,400 Total $ 5,400 See Note 8 and Note 9 and for additional details on goodwill and intangible assets. Student receivables When financial assets are acquired in connection with a business combination, we evaluate whether those acquired financial assets have experienced a more-than-insignificant deterioration in credit quality since origination. Financial assets acquired with evidence of such credit deterioration are referred to as purchased credit deteriorated (“PCD”) assets and reflect the acquirer’s assessment at the acquisition date. The student receivables acquired in the Concorde acquisition were reviewed to determine if any had experienced a more-than-insignificant deterioration in credit quality since origination. Student receivables of approximately $2.3 million met the established criteria to indicate a more-than insignificant deterioration in credit quality and were identified as PCD assets. Using our best estimate of projected losses over the term of the contracts, we calculated an allowance for credit losses on these PCD assets of approximately $1.0 million. Pro forma financial information The following unaudited pro forma financial information summarizes our results of operations as though the acquisition occurred on October 1, 2022: Three Months Ended December 31, 2022 Revenue $ 156,025 Net income 3,234 The unaudited pro forma financial information includes adjustments to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets and the finance lease asset had been applied from October 1, 2022, with the related tax effects. The unaudited pro forma financial information also includes adjustments to reflect the additional interest expense on the new Credit Facility issued to fund the acquisition (see Note 12 for further details on the Credit Facility). Lastly, the unaudited pro forma financial information includes adjustments to reflect the reduction in depreciation expense assuming the fair value adjustments to property and equipment assets had been applied from October 1, 2022. This unaudited pro forma financial information is for informational purposes only. It does not reflect the integration of the business or any synergies or incremental costs that may result from the acquisition. As such, it is not indicative of the results of operations that would have been achieved had the acquisition been consummated on October 1, 2022. In addition, the unaudited pro forma financial information amounts are not indicative of future operating results. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Nature of Goods and Services Revenues across the UTI and Concorde segments consist primarily of student tuition and fees derived from the programs we provide after reductions are made for discounts and scholarships that we sponsor and for refunds for students who withdraw from our programs prior to specified dates. We apply the five-step model outlined in Accounting Standards Codification Topic 606, Revenue from Contracts from Customers . Tuition and fee revenue is recognized ratably over the term of the course or program offered. In addition to revenue from tuition and fees, UTI and Concorde derive supplemental revenues from sales of textbooks and program supplies and other revenues, which includes revenues from dealer technician training and staffing services to manufacturers. All of these revenues are recognized as the transfer of goods or services occurs. Deferred revenue represents the excess of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability in our condensed consolidated balance sheets because it is expected to be earned within the next 12 months. All of our revenues are generated within the United States. The impact of economic factors on the nature, amount, timing and uncertainty of revenue and cash flows is consistent across our various programs for both the UTI and Concorde segments. See Note 19 for disaggregated segment revenue information. The following table provides information about receivables and deferred revenue resulting from our enrollment agreements with students: December 31, 2023 September 30, 2023 Receivables (1) $ 61,057 $ 59,863 Deferred revenue 81,474 85,738 (1) Receivables includes tuition receivables, retail installment contract receivables and notes receivable, both current and long term. During the three months ended December 31, 2023, the deferred revenue balance included decreases for revenues recognized during the period and increases related to new students who started their training programs during the period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers: Level 1: Defined as quoted market prices in active markets for identical assets or liabilities. Level 2: Defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Defined as unobservable inputs that are not corroborated by market data. Any transfers of investments between levels occurs at the end of the reporting period. Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using December 31, 2023 Quoted Prices Significant Significant Money market funds (1) $ 14,569 $ 14,569 $ — $ — Notes receivable (2) 39,394 — — 39,394 Total assets at fair value on a recurring basis $ 53,963 $ 14,569 $ — $ 39,394 Revolving credit facility and term loans (3) 156,575 — 156,575 — Total liabilities at fair value on a recurring basis $ 156,575 $ — $ 156,575 $ — Fair Value Measurements Using September 30, 2023 Quoted Prices Significant Significant Money market funds (1) $ 29,687 $ 29,687 $ — $ — Notes receivable (2) 36,663 — — 36,663 Total assets at fair value on a recurring basis $ 66,350 $ 29,687 $ — $ 36,663 Revolving credit facility and term loans (3) 156,991 — 156,991 — Total liabilities at fair value on a recurring basis $ 156,991 $ — $ 156,991 $ — (1) Money market funds and other highly liquid investments with maturity dates less than 90 days are reflected as “Cash and cash equivalents” in our condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023. (2) Notes receivable relate to UTI’s proprietary loan program and are reflected as “Notes receivable, current portion” and “Notes receivable, less current portion” in our condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023. (3) The Credit Facility and Term Loans bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2). |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consisted of the following: Depreciable December 31, 2023 September 30, 2023 Land — $ 25,601 $ 25,601 Buildings and building improvements 3-30 163,882 160,920 Leasehold improvements 1-20 88,728 87,525 Training equipment 3-10 111,851 110,292 Office and computer equipment 3-10 37,292 37,251 Curriculum development 3-5 3,427 2,478 Software developed for internal use 1-5 13,055 12,573 Vehicles 5 1,406 1,406 Right-of-use assets for finance leases 2-15 5,603 5,603 Construction in progress — 4,689 9,061 455,534 452,710 Less: Accumulated depreciation and amortization (191,612) (186,364) Total $ 263,922 $ 266,346 Depreciation expense related to property and equipment was $6.8 million and $5.1 million for the three months ended December 31, 2023 and 2022, respectively. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Our goodwill balance of $28.5 million as of December 31, 2023 and September 30, 2023, respectively, represents the acquired assembled workforce and the excess of the cost of an acquired business over the estimated fair values of the assets acquired and liabilities assumed. The table below summarizes the goodwill balance by reportable segment: December 31, 2023 September 30, 2023 UTI $ 16,859 $ 16,859 Concorde 11,600 11,600 Total $ 28,459 $ 28,459 Goodwill is reviewed at least annually for impairment, which may result from the deterioration in the operating performance of the acquired businesses, adverse market conditions, adverse changes in applicable laws or regulations and a variety of other circumstances. Our goodwill is tested annually for impairment as of August 1 and more frequently if events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. T here were no indicators of goodwill impairment as of December 31, 2023 . |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table provides the gross carrying value, accumulated amortization, net book value and remaining useful life for those intangible assets that are subject to amortization as of December 31, 2023: Gross Carrying Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (Years) Accreditations and regulatory approvals $ 16,300 $ — $ 16,300 Indefinite Trademarks, trade names and other 1,942 (764) 1,178 5.02 Curriculum 1,800 (477) 1,323 3.73 Total $ 20,042 $ (1,241) $ 18,801 4.34 Amortization expense was $0.2 million and $0.1 million for the three months ended December 31, 2023 and 2022, respectively. Future intangible asset amortization expense is expected to be as follows: Fiscal Year Remainder of 2024 $ 522 2025 677 2026 660 2027 337 2028 97 Thereafter 208 Total $ 2,501 The remaining weighted average useful lives shown are calculated based on the net book value and remaining amortization period of each respective intangible asset. Amortization is computed using the straight-line method based on estimated useful lives of the related assets. Our indefinite-lived intangible assets are reviewed at least annually for impairment as of August 1, or more frequently if there are indicators of impairment. There were no indicators of impairment for our indefinite-lived intangible assets as of December 31, 2023. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2023, we have facility leases at 29 of our 33 campuses and three non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of December 31, 2023, resulted in minimal income. All of the leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. Some of the facility leases are subject to annual changes in the Consumer Price Index (“CPI”). While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Many of our lease agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. There are no early termination with penalties, residual value guarantees, restrictions or covenants imposed by our facility leases. The components of lease expense are included in “Educational services and facilities” and “Selling, general and administrative” on the condensed consolidated statement of operations, with the exception of interest on lease liabilities, which is included in “Interest expense.” The components of lease expense during the three months ended December 31, 2023 and 2022 were as follows: Three Months Ended December 31, Lease Expense 2023 2022 Operating lease expense (1) $ 7,660 $ 5,704 Finance lease expense: Amortization of leased assets 227 198 Interest on lease liabilities 82 87 Variable lease expense 2,362 1,950 Sublease income (33) (32) Total net lease expense $ 10,298 $ 7,907 (1) Excludes the expense for short-term leases not accounted for under ASC 842, which was not significant for the three months ended December 31, 2023 and 2022. Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate): Leases Classification December 31, 2023 September 30, 2023 Assets: Operating lease assets Right-of-use assets for operating leases $ 174,973 $ 176,657 Finance lease assets Property and equipment, net (1) 4,618 4,846 Total leased assets $ 179,591 $ 181,503 Liabilities: Current Operating lease liabilities Operating lease liability, current portion $ 22,521 $ 22,481 Finance lease liabilities Long-term debt, current portion (1) 865 844 Noncurrent Operating lease liabilities Operating lease liability 164,125 165,026 Finance lease liabilities Long-term debt 4,535 4,757 Total lease liabilities $ 192,046 $ 193,108 (1) The finance lease assets and liabilities as of December 31, 2023 and September 30, 2023 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.0 million and $0.8 million as of December 31, 2023 and September 30, 2023, respectively. Lease Term and Discount Rate December 31, 2023 September 30, 2023 Weighted-average remaining lease term (in years): Operating leases 7.78 7.91 Finance lease 5.08 5.33 Weighted average discount rate: Operating leases 4.86 % 4.76 % Finance lease 6.02 % 6.02 % Three Months Ended December 31, Supplemental Disclosure of Cash Flow and Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,708 $ 4,963 Financing cash flows from finance leases 201 115 Non-cash activity related to lease liabilities: Lease assets obtained in exchange for new operating lease liabilities (1) $ 3,847 $ 117 (1) During the three months ended December 31, 2023, Concorde renewed the campus lease for the San Antonio, Texas campus. Maturities of lease liabilities were as follows: As of December 31, 2023 Years ending September 30, Operating Leases Finance Lease Remainder of 2024 $ 21,876 $ 875 2025 30,130 1,193 2026 30,492 1,229 2027 28,873 1,266 2028 26,747 1,304 2029 and thereafter 85,892 439 Total lease payments 224,010 6,306 Less: interest (37,364) (906) Present value of lease liabilities 186,646 5,400 Less: current lease liabilities (22,521) (865) Long-term lease liabilities $ 164,125 $ 4,535 |
Leases | Leases As of December 31, 2023, we have facility leases at 29 of our 33 campuses and three non-campus locations under non-cancelable operating or finance leases, some of which contain escalation clauses and requirements to pay other fees associated with the leases. The facility leases have original lease terms ranging from 5 to 20 years and expire at various dates through 2036. In addition, the leases commonly include lease incentives in the form of rent abatements and tenant improvement allowances. We sublease certain portions of unused building space to third parties, which as of December 31, 2023, resulted in minimal income. All of the leases, other than those that may qualify for the short-term scope exception of 12 months or less, are recorded on our condensed consolidated balance sheets. Some of the facility leases are subject to annual changes in the Consumer Price Index (“CPI”). While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Many of our lease agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. There are no early termination with penalties, residual value guarantees, restrictions or covenants imposed by our facility leases. The components of lease expense are included in “Educational services and facilities” and “Selling, general and administrative” on the condensed consolidated statement of operations, with the exception of interest on lease liabilities, which is included in “Interest expense.” The components of lease expense during the three months ended December 31, 2023 and 2022 were as follows: Three Months Ended December 31, Lease Expense 2023 2022 Operating lease expense (1) $ 7,660 $ 5,704 Finance lease expense: Amortization of leased assets 227 198 Interest on lease liabilities 82 87 Variable lease expense 2,362 1,950 Sublease income (33) (32) Total net lease expense $ 10,298 $ 7,907 (1) Excludes the expense for short-term leases not accounted for under ASC 842, which was not significant for the three months ended December 31, 2023 and 2022. Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate): Leases Classification December 31, 2023 September 30, 2023 Assets: Operating lease assets Right-of-use assets for operating leases $ 174,973 $ 176,657 Finance lease assets Property and equipment, net (1) 4,618 4,846 Total leased assets $ 179,591 $ 181,503 Liabilities: Current Operating lease liabilities Operating lease liability, current portion $ 22,521 $ 22,481 Finance lease liabilities Long-term debt, current portion (1) 865 844 Noncurrent Operating lease liabilities Operating lease liability 164,125 165,026 Finance lease liabilities Long-term debt 4,535 4,757 Total lease liabilities $ 192,046 $ 193,108 (1) The finance lease assets and liabilities as of December 31, 2023 and September 30, 2023 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.0 million and $0.8 million as of December 31, 2023 and September 30, 2023, respectively. Lease Term and Discount Rate December 31, 2023 September 30, 2023 Weighted-average remaining lease term (in years): Operating leases 7.78 7.91 Finance lease 5.08 5.33 Weighted average discount rate: Operating leases 4.86 % 4.76 % Finance lease 6.02 % 6.02 % Three Months Ended December 31, Supplemental Disclosure of Cash Flow and Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,708 $ 4,963 Financing cash flows from finance leases 201 115 Non-cash activity related to lease liabilities: Lease assets obtained in exchange for new operating lease liabilities (1) $ 3,847 $ 117 (1) During the three months ended December 31, 2023, Concorde renewed the campus lease for the San Antonio, Texas campus. Maturities of lease liabilities were as follows: As of December 31, 2023 Years ending September 30, Operating Leases Finance Lease Remainder of 2024 $ 21,876 $ 875 2025 30,130 1,193 2026 30,492 1,229 2027 28,873 1,266 2028 26,747 1,304 2029 and thereafter 85,892 439 Total lease payments 224,010 6,306 Less: interest (37,364) (906) Present value of lease liabilities 186,646 5,400 Less: current lease liabilities (22,521) (865) Long-term lease liabilities $ 164,125 $ 4,535 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: December 31, 2023 September 30, 2023 Accounts payable $ 17,992 $ 14,438 Accrued compensation and benefits 27,605 36,332 Accrued tool sets 4,431 4,096 Other accrued expenses 18,470 15,075 Total accounts payable and accrued expenses $ 68,498 $ 69,941 |
Debt
Debt | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt December 31, 2023 September 30, 2023 Interest Rate Maturity Date Carrying Value of Debt (6) Carrying Value of Debt (6) Revolving Credit Facility (1) 7.45 % Nov 2025 $ 90,000 $ 90,000 Avondale Term Loan (2) 7.39 % May 2028 29,039 29,251 Lisle Term Loan (3) 7.34 % Apr 2029 37,536 37,740 Finance lease (4) 6.02 % Various 5,400 5,601 Total debt 161,975 162,592 Debt issuance costs presented with debt (5) (453) (475) Total debt, net 161,522 162,117 Less: current portion of long-term debt (2,560) (2,517) Long-term debt $ 158,962 $ 159,600 (1) Interest on the Revolving Credit Facility (as defined below) accrues at a rate equal to one-month Term SOFR plus a margin of 2.0% and a lender specific spread of 0.10%. (2) Interest on the Avondale Term Loan (as defined below) accrues at a rate equal to one-month Term SOFR plus 2.0% and a tranche adjustment of 0.046%. (3) Interest on the Lisle Term Loan (as defined below) accrues at a rate equal to one-month Term SOFR plus 2.0%. (4) The finance lease is related to a facility lease with an annual interest rate of 6.02% that matures in 2029. See Note 10 for additional details on our finance lease. (5) The unamortized debt issuance costs as of December 31, 2023 relate to the Avondale Term Loan and the Lisle Term Loan. (6) The Credit Facility, Term Loans and finance leases bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2). Revolving Credit Facility On November 18, 2022, we entered into a $100.0 million senior secured revolving credit facility with Fifth Third Bank, a national banking association (the “Credit Facility” or “Revolving Credit Facility”), which includes a $20.0 million sub facility that is available for letters of credit. The Credit Facility has a term of three years, unless earlier terminated pursuant to the terms and conditions set forth in the credit agreement. This agreement provides that borrowings under the Credit Facility will amortize on an interest-only basis during its term with principal able to be borrowed, re-paid and re-borrowed throughout the term of the Credit Facility and with the outstanding principal due and payable at maturity. In executing the Credit Facility, we incurred $0.5 million in debt issuance costs which are included in “Other assets” on the condensed consolidated balance sheets as of December 31, 2023. On November 28, 2022, we drew $90.0 million from the Credit Facility in support of the closing of the Concorde acquisition at an interest rate of 6.54%. In December 2022, a $1.8 million letter of credit was issued on the Credit Facility. The remaining availability under the Credit Facility as of December 31, 2023 was $8.2 million. In January 2024, we used cash on hand to repay $39.0 million on the Credit Facility, which increased the availability under the Credit Facility to $47.2 million as of January 10, 2024. It is likely that we will re-borrow from the Credit Facility in future periods based on future working capital or other needs. Avondale Term Loan In connection with the Avondale, Arizona building purchase in December 2020, we entered into a credit agreement with Fifth Third Bank, national banking association (the “Avondale Lender”) on May 12, 2021 in the maximum principal amount of $31.2 million with a maturity of seven years (the “Avondale Term Loan”). Originally, the Avondale Term Loan bore interest at the rate of LIBOR plus 2.0%. On April 3, 2023, we executed an amendment for our Avondale Term Loan to convert the stated rate from LIBOR to SOFR. The Avondale Term Loan bears interest at the rate of Term SOFR plus 2.0% and a tranche rate adjustment of 0.046%. Principal and interest payments are due monthly. The Avondale Term Loan is secured by a first priority lien on our Avondale, Arizona property, including all land and improvements. Additionally, we entered into an interest rate swap agreement with the Avondale Lender. See Note 13 for further discussion on the interest rate swap. Lisle Term Loan On April 14, 2022, our consolidated subsidiary, 2611 Corporate West Drive Venture LLC (the “Borrower”), entered into a new Loan Agreement (“Lisle Loan Agreement”) with Valley National Bank (the “Lisle Lender”), to fund the acquisition and retire the prior loan agreement with Western Alliance bank, via a term loan in the original principal amount of $38.0 million with a maturity of seven years (the “Lisle Term Loan” and together with the Avondale Term Loan, the “Term Loans”). The Lisle Term Loan bears interest at a rate of one-month Term SOFR plus 2.0%. The Lisle Term Loan is secured by a mortgage on the Lisle, Illinois campus and is guaranteed by the Company. In connection with the Lisle Term Loan, we entered into an interest rate swap agreement. See Note 13 for further discussion on the interest rate swap. Debt Covenants for our Credit Facility and Term Loans We are subject to certain customary affirmative and negative covenants in connection with our Credit Facility and Term Loans, including, without limitation, certain reporting obligations, certain limitations on restricted payments, limitations on liens, encumbrances and indebtedness and a debt service coverage ratio covenant. Events of default under the Credit Facility, Avondale Term Loan and the Lisle Term Loan include, among others, the failure to make payments when due, breach of covenants, and breach of representations or warranties. For further discussion of our debt covenants, see Note 14 on “Debt” included in our 2023 Annual Report on Form 10-K . As of December 31, 2023, we were in compliance with all Credit Facility and term loan debt covenants. Debt Maturities Scheduled principal payments due on our debt for the remainder of 2024 and for each year through the period ended September 30, 2028, and thereafter were as follows at December 31, 2023: Maturity Revolving Credit Facility & Term Loans Finance Lease Total Remainder of 2024 $ 1,257 $ 865 $ 2,122 2025 1,763 955 2,718 2026 91,836 1,051 92,887 2027 1,909 1,154 3,063 2028 26,610 1,265 27,875 Thereafter 33,200 110 33,310 Subtotal 156,575 5,400 161,975 Debt issuance costs presented with debt (453) — (453) Total $ 156,122 $ 5,400 $ 161,522 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, our operations are exposed to market risks, including the effect of changes in interest rates. We may enter into derivative financial instruments to offset these underlying market risks. On March 31, 2023, we entered into a new interest rate swap agreement, effective April 3, 2023, with the Avondale Lender that effectively fixes the interest rate we pay on 50% of the principal amount of the Avondale Term Loan at 1.45% for the entire loan term (the “Avondale Swap”). The Avondale Swap was designated as an effective cash flow hedge for accounting and tax purposes. On April 14, 2022, in connection with the Lisle Term Loan, we entered into an interest rate swap agreement with the Lisle Lender that effectively fixes the interest rate on 50% of the principal amount of the Lisle Term Loan at 4.69% for the entire loan term, or seven years (the “Lisle Swap”). The Lisle Swap was designated as an effective cash flow hedge for accounting and tax purposes. Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in “Accumulated other comprehensive income” on the condensed consolidated balance sheets. For cash flow hedges, we report the effective portion of the gain or loss as a component of “Accumulated other comprehensive income” and reclassify it to “Interest expense” in the condensed consolidated statements of operations over the corresponding period of the underlying hedged item. The ineffective portion of the change in fair value of a derivative financial instrument is recognized in “Interest expense” at the time the ineffectiveness occurs. To the extent the hedged forecasted interest payments on debt related to our interest rate swap is paid off, the remaining balance in “Accumulated other comprehensive income” is recognized in “Interest expense” in the condensed consolidated statements of operations. Of the net amount of the existing gains that are reported in “Accumulated other comprehensive income” as of December 31, 2023, we estimate that $0.8 million will be reclassified to “Interest expense” within the next twelve months. As of December 31, 2023, the notional amount of the Avondale Swap and Lisle Swap was approximately $14.5 million and $18.8 million, respectively. Fair Value of Derivative Instruments The following table presents the fair value of our Avondale Swap and Lisle Swap (Level 2) which are designated as cash flow hedges and the related classification on the condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023: Interest Rate Swaps December 31, 2023 September 30, 2023 Other current assets $ 768 $ 957 Other assets 1,083 2,075 Total fair value of assets designated as hedging instruments $ 1,851 $ 3,032 Effect of Cash Flow Hedge Accounting on the Consolidated Statements of Operations and Accumulated Other Comprehensive Income The table below presents the effect of cash flow hedge accounting for our Avondale Swap and Lisle Swap on the condensed consolidated statement of operations and “Accumulated other comprehensive income” for the three months ended December 31, 2023 and 2022: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative, net of taxes Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended December 31, 2023 Avondale Swap and Lisle Swap $ 911 $ (271) Three Months Ended December 31, 2022 Avondale Swap and Lisle Swap $ 41 $ (128) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense for the three months ended December 31, 2023 was $3.2 million, or 23.3% of pre-tax income, compared to $1.5 million, or 36.5% of pre-tax income, for the three months ended December 31, 2022. The effective income tax rate for the three months ended December 31, 2023 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, federal research and development tax credits and state and local income and franchise taxes. The effective income tax rate for the three months ended December 31, 2022 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, transaction costs and state and local income and franchise taxes. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of December 31, 2023, we continued to maintain a valuation allowance related to certain federal and state attributes which are not expected to be utilized prior to expiration. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT Houston campus, acquired in November 2021, will begin operating under the UTI brand and implement a phased teach-out agreement starting in May 2024. Both facilities will remain in use post-consolidation. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal In the ordinary conduct of our business, we are periodically subject to lawsuits, demands in arbitration, investigations, regulatory proceedings or other claims, including, but not limited to, claims involving current or former students, routine employment matters, business disputes and regulatory demands. When we are aware of a claim or potential claim, we assess the likelihood of any loss or exposure. If it is probable that a loss will result and the amount of the loss can be reasonably estimated, we accrue a liability for the loss. When a loss is not both probable and estimable, we do not accrue a liability. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders’ Equity Common Stock Holders of our common stock are entitled to receive dividends when and as declared by our Board of Directors and have the right to one vote per share on all matters requiring shareholder approval. On June 9, 2016, our Board of Directors voted to eliminate the quarterly cash dividend on our common stock. Preferred Stock As of September 30, 2023, 675,885 shares of Series A Convertible Preferred Stock with a $0.0001 par value each (“Series A Preferred Stock”) were issued and outstanding, respectively. The liquidation preference associated with the Series A Preferred Stock was $100 per share at September 30, 2023. Under the terms of the Certificate of Designations for the Series A Preferred Stock (the “CoD”), we had the right to convert the outstanding shares of Series A Preferred Stock to common stock when our common stock achieved a stated volume weighted average price per share for a period of 20 consecutive trading days. On December 18, 2023, upon satisfying the stock price condition, we entered into a preferred stock repurchase agreement with Coliseum Capital Partners, L.P. and Blackwell Partners LLC – Series A (collectively the “Selling Stockholders”), pursuant to which we repurchased, directly from the Selling Stockholders, 33,300 shares of Series A Preferred Stock for an aggregate purchase price of $11.3 million. Additionally, we incurred approximately $0.3 million in fees related to excise taxes and other professional services related to the repurchase, which are recorded in equity. Following the repurchase of those shares of Series A Preferred Stock, and in accordance with the terms of the CoD, we issued a notice of conversion causing all remaining outstanding shares of Series A Preferred Stock to be converted into Common Stock. In connection with the conversion, each share of Series A Preferred Stock was cancelled and converted into the right to receive 30.03003 shares of our Common Stock, no par value per share, and we made a final dividend payment of $1.1 million to the Series A Preferred Stockholders of record as of December 18, 2023. As a result of the conversion, the aggregate 642,585 remaining shares of Series A Preferred Stock outstanding were converted into 19,296,843 shares of Common Stock. No shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date. Following the repurchase and subsequent conversion, the Selling Stockholders held less than 25% of our outstanding shares of common stock (a threshold above which we would have been required to seek regulatory approval for the conversion). Share Repurchase Program On December 10, 2020, our Board of Directors authorized a share repurchase plan that would allow for the repurchase of up to $35.0 million of our common stock in the open market or through privately negotiated transactions. This share repurchase plan replaced the previously authorized plan from fiscal 2012. We have not repurchased any shares under the $35.0 million share repurchase program, including during the three months ended December 31, 2023 or 2022. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We calculate basic earnings per common share (“EPS”) pursuant to the two-class method as a result of the issuance of the Series A Preferred Stock on June 24, 2016. The two-class method is an earnings allocation formula that determines EPS for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends. Diluted EPS is calculated using the more dilutive of the two-class method or as-converted method. The two-class method uses net income available to common shareholders and assumes conversion of all potential shares other than the participating securities. The as-converted method uses net income and assumes conversion of all potential shares including the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share units and convertible preferred stock. As noted above in Note 17, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date. The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended December 31, 2023 2022 Basic earnings per common share: Net income $ 10,389 $ 2,648 Less: Preferred stock dividend declared (1,097) (1,277) Net income available for distribution 9,292 1,371 Income allocated to participating securities (2,855) (514) Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Basic income per common share $ 0.18 $ 0.03 Three Months Ended December 31, 2023 2022 Diluted earnings per common share: Method used: Two-class Two-class Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Dilutive effect related to employee stock plans 1,005 603 Weighted average diluted shares outstanding 37,439 34,408 Diluted income per common share $ 0.17 $ 0.02 Anti-dilutive shares excluded: Outstanding stock-based grants 166 506 Convertible preferred stock — 20,297 Total anti-dilutive shares excluded 166 20,803 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate our business in two reportable segments: (i) the UTI segment; and (ii) the Concorde segment. These segments are organized by key market segments to enhance operational alignment within each segment to more effectively execute our strategic plan. Each reportable segment represents a group of post-secondary education providers that offer a variety of degree and non-degree academic programs. “Corporate” includes corporate related expenses that are not allocated to the UTI or Concorde reportable segments and is included to reconcile segment results to the condensed consolidated financial statements. As previously discussed in Note 2, the segment disclosures for the three months ended December 31, 2022 have been recast from the prior year presentation for comparability to the current year presentation. Summary information by reportable segment is as follows: UTI Concorde Corporate Consolidated Three Months Ended December 31, 2023 Revenues $ 115,373 $ 59,322 $ — $ 174,695 Income (loss) from operations 15,090 7,128 (7,987) 14,231 Depreciation and amortization 5,494 1,154 336 6,984 Net income (loss) 13,597 7,173 (10,381) 10,389 Three Months Ended December 31, 2022 Revenues $ 105,573 $ 14,431 $ — $ 120,004 Income (loss) from operations 13,422 (726) (8,248) 4,448 Depreciation and amortization 4,775 457 16 5,248 Net income (loss) 12,732 (734) (9,350) 2,648 UTI Concorde Corporate Consolidated As of December 31, 2023 Total assets $ 449,834 $ 134,697 $ 147,882 $ 732,413 As of September 30, 2023 Total assets $ 442,507 $ 130,813 $ 167,365 $ 740,685 |
Government Regulation and Finan
Government Regulation and Financial Aid | 3 Months Ended |
Dec. 31, 2023 | |
Government Regulation and Financial Aid [Abstract] | |
Government Regulation And Financial Aid | Government Regulation and Financial Aid As discussed at length in our 2023 Annual Report on Form 10-K , our institutions participate in a range of government-sponsored student assistance programs. The most significant of these is the federal student aid programs administered by the U.S. Department of Education (“ED”) pursuant to Title IV of the HEA, commonly referred to as the Title IV Programs. Generally, to participate in the Title IV Programs, an institution must be licensed or otherwise legally authorized to operate in the state where it is physically located, be accredited by an accreditor recognized by ED, be certified as an eligible institution by ED, offer at least one eligible program of education, and comply with other statutory and regulatory requirements. Each of our institutions holds the state or other authorizations required to operate and offer postsecondary education programs, and to recruit in the states in which it engages in recruiting activities. In addition, our institutions are accredited by ED-recognized accreditors: all of the UTI institutions and 14 of the Concorde institutions are accredited by the Accrediting Commission of Career Schools and Colleges, while the remaining two Concorde institutions are accredited by the Council on Occupational Education. ED will certify an institution to participate in the Title IV programs only after the institution has demonstrated compliance with the Higher Education Act and ED’s extensive regulations regarding institutional eligibility. An institution must also demonstrate its compliance to ED on an ongoing basis. As of December 31, 2023, management believes the Company and its institutions are in compliance with the applicable regulations in all material respects. See “Part I, Item 1. Regulatory Environment” and ““Part I, Item 1. State and Accreditor Approvals” in our 2023 Annual Report on Form 10-K for a detailed discussion of the regulatory environment in which the Company operates. Because the Company operates in a highly regulated industry, it, like other industry participants, may be subject from time to time to investigations, claims of non-compliance, or lawsuits by governmental agencies or third parties, which allege statutory violations, regulatory infractions, or common law causes of action. There can be no assurance that regulatory agencies or third parties will not undertake investigations or make claims against the Company, or that such claims, if made, will not have a material adverse effect on the Company’s business, results of operations or financial condition. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 10,389 | $ 2,648 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Segment Recast | Segment Recast |
Recently Accounting Pronouncements | The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. We have reviewed the recently issued pronouncements and concluded the following new accounting standard updates (“ASU”) apply to us. Effective in Fiscal 2025 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. This ASU will be effective for our Form 10-K for fiscal 2025 and our Form 10-Q for the first quarter of fiscal 2026. We are currently evaluating the impact this ASU may have on our financial statement disclosures. Effective in Fiscal 2026 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. This ASU will be effective for our Form 10-K for fiscal 2026. We are currently evaluating the impact this ASU may have on our financial statement disclosures. |
Nature of Goods and Services/Contract Balances | Nature of Goods and Services Revenues across the UTI and Concorde segments consist primarily of student tuition and fees derived from the programs we provide after reductions are made for discounts and scholarships that we sponsor and for refunds for students who withdraw from our programs prior to specified dates. We apply the five-step model outlined in Accounting Standards Codification Topic 606, Revenue from Contracts from Customers . Tuition and fee revenue is recognized ratably over the term of the course or program offered. In addition to revenue from tuition and fees, UTI and Concorde derive supplemental revenues from sales of textbooks and program supplies and other revenues, which includes revenues from dealer technician training and staffing services to manufacturers. All of these revenues are recognized as the transfer of goods or services occurs. Deferred revenue represents the excess of tuition and fee payments received as compared to tuition and fees earned and is reflected as a current liability in our condensed consolidated balance sheets because it is expected to be earned within the next 12 months. All of our revenues are generated within the United States. The impact of economic factors on the nature, amount, timing and uncertainty of revenue and cash flows is consistent across our various programs for both the UTI and Concorde segments. See Note 19 for disaggregated segment revenue information. |
Fair Value Measurements | Fair Value Measurements The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers: Level 1: Defined as quoted market prices in active markets for identical assets or liabilities. Level 2: Defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Defined as unobservable inputs that are not corroborated by market data. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final allocation of the purchase price at December 1, 2022 is summarized as follows: Assets acquired: Cash and cash equivalents $ 30,064 Restricted cash 1,689 Accounts receivable, net 6,800 Prepaid expenses 2,957 Other current assets 827 Property and equipment 23,238 Right-of-use assets for operating leases 71,153 Goodwill 11,600 Intangible assets 5,400 Deferred tax assets 5,112 Other assets 4,997 Total assets acquired $ 163,837 Less: Liabilities assumed Accounts payable and accrued expenses $ 15,482 Deferred revenue 20,145 Operating lease liability, current portion 10,011 Long-term debt, current portion (1) 807 Other current liabilities 208 Long-term debt (1) 5,468 Operating lease liability 63,582 Total liabilities assumed 115,703 Net assets acquired $ 48,134 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The table below presents the final summary of the intangible assets acquired and the useful lives of these assets: Intangible Asset Useful life Amount Accreditations and regulatory approvals Indefinite $ 3,500 Trademarks and trade names 10 years 500 Curriculum 5 years 1,400 Total $ 5,400 |
Schedule of Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information summarizes our results of operations as though the acquisition occurred on October 1, 2022: Three Months Ended December 31, 2022 Revenue $ 156,025 Net income 3,234 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about receivables and deferred revenue resulting from our enrollment agreements with students: December 31, 2023 September 30, 2023 Receivables (1) $ 61,057 $ 59,863 Deferred revenue 81,474 85,738 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets | Assets measured or disclosed at fair value on a recurring basis consisted of the following: Fair Value Measurements Using December 31, 2023 Quoted Prices Significant Significant Money market funds (1) $ 14,569 $ 14,569 $ — $ — Notes receivable (2) 39,394 — — 39,394 Total assets at fair value on a recurring basis $ 53,963 $ 14,569 $ — $ 39,394 Revolving credit facility and term loans (3) 156,575 — 156,575 — Total liabilities at fair value on a recurring basis $ 156,575 $ — $ 156,575 $ — Fair Value Measurements Using September 30, 2023 Quoted Prices Significant Significant Money market funds (1) $ 29,687 $ 29,687 $ — $ — Notes receivable (2) 36,663 — — 36,663 Total assets at fair value on a recurring basis $ 66,350 $ 29,687 $ — $ 36,663 Revolving credit facility and term loans (3) 156,991 — 156,991 — Total liabilities at fair value on a recurring basis $ 156,991 $ — $ 156,991 $ — (1) Money market funds and other highly liquid investments with maturity dates less than 90 days are reflected as “Cash and cash equivalents” in our condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023. (2) Notes receivable relate to UTI’s proprietary loan program and are reflected as “Notes receivable, current portion” and “Notes receivable, less current portion” in our condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023. (3) The Credit Facility and Term Loans bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2). |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: Depreciable December 31, 2023 September 30, 2023 Land — $ 25,601 $ 25,601 Buildings and building improvements 3-30 163,882 160,920 Leasehold improvements 1-20 88,728 87,525 Training equipment 3-10 111,851 110,292 Office and computer equipment 3-10 37,292 37,251 Curriculum development 3-5 3,427 2,478 Software developed for internal use 1-5 13,055 12,573 Vehicles 5 1,406 1,406 Right-of-use assets for finance leases 2-15 5,603 5,603 Construction in progress — 4,689 9,061 455,534 452,710 Less: Accumulated depreciation and amortization (191,612) (186,364) Total $ 263,922 $ 266,346 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below summarizes the goodwill balance by reportable segment: December 31, 2023 September 30, 2023 UTI $ 16,859 $ 16,859 Concorde 11,600 11,600 Total $ 28,459 $ 28,459 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table provides the gross carrying value, accumulated amortization, net book value and remaining useful life for those intangible assets that are subject to amortization as of December 31, 2023: Gross Carrying Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (Years) Accreditations and regulatory approvals $ 16,300 $ — $ 16,300 Indefinite Trademarks, trade names and other 1,942 (764) 1,178 5.02 Curriculum 1,800 (477) 1,323 3.73 Total $ 20,042 $ (1,241) $ 18,801 4.34 |
Schedule of Indefinite-Lived Intangible Assets | The following table provides the gross carrying value, accumulated amortization, net book value and remaining useful life for those intangible assets that are subject to amortization as of December 31, 2023: Gross Carrying Value Accumulated Amortization Net Book Value Weighted Average Remaining Useful Life (Years) Accreditations and regulatory approvals $ 16,300 $ — $ 16,300 Indefinite Trademarks, trade names and other 1,942 (764) 1,178 5.02 Curriculum 1,800 (477) 1,323 3.73 Total $ 20,042 $ (1,241) $ 18,801 4.34 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future intangible asset amortization expense is expected to be as follows: Fiscal Year Remainder of 2024 $ 522 2025 677 2026 660 2027 337 2028 97 Thereafter 208 Total $ 2,501 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense during the three months ended December 31, 2023 and 2022 were as follows: Three Months Ended December 31, Lease Expense 2023 2022 Operating lease expense (1) $ 7,660 $ 5,704 Finance lease expense: Amortization of leased assets 227 198 Interest on lease liabilities 82 87 Variable lease expense 2,362 1,950 Sublease income (33) (32) Total net lease expense $ 10,298 $ 7,907 (1) Excludes the expense for short-term leases not accounted for under ASC 842, which was not significant for the three months ended December 31, 2023 and 2022. |
Schedule of Supplemental Information | Supplemental balance sheet, cash flow and other information related to our leases was as follows (in thousands, except lease term and discount rate): Leases Classification December 31, 2023 September 30, 2023 Assets: Operating lease assets Right-of-use assets for operating leases $ 174,973 $ 176,657 Finance lease assets Property and equipment, net (1) 4,618 4,846 Total leased assets $ 179,591 $ 181,503 Liabilities: Current Operating lease liabilities Operating lease liability, current portion $ 22,521 $ 22,481 Finance lease liabilities Long-term debt, current portion (1) 865 844 Noncurrent Operating lease liabilities Operating lease liability 164,125 165,026 Finance lease liabilities Long-term debt 4,535 4,757 Total lease liabilities $ 192,046 $ 193,108 (1) The finance lease assets and liabilities as of December 31, 2023 and September 30, 2023 consisted of one facility lease. Finance lease assets are recorded net of accumulated amortization of $1.0 million and $0.8 million as of December 31, 2023 and September 30, 2023, respectively. Lease Term and Discount Rate December 31, 2023 September 30, 2023 Weighted-average remaining lease term (in years): Operating leases 7.78 7.91 Finance lease 5.08 5.33 Weighted average discount rate: Operating leases 4.86 % 4.76 % Finance lease 6.02 % 6.02 % Three Months Ended December 31, Supplemental Disclosure of Cash Flow and Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,708 $ 4,963 Financing cash flows from finance leases 201 115 Non-cash activity related to lease liabilities: Lease assets obtained in exchange for new operating lease liabilities (1) $ 3,847 $ 117 |
Schedule Operating Lease Liabilities Maturities | Maturities of lease liabilities were as follows: As of December 31, 2023 Years ending September 30, Operating Leases Finance Lease Remainder of 2024 $ 21,876 $ 875 2025 30,130 1,193 2026 30,492 1,229 2027 28,873 1,266 2028 26,747 1,304 2029 and thereafter 85,892 439 Total lease payments 224,010 6,306 Less: interest (37,364) (906) Present value of lease liabilities 186,646 5,400 Less: current lease liabilities (22,521) (865) Long-term lease liabilities $ 164,125 $ 4,535 |
Schedule of Finance Lease Liabilities Maturities | Maturities of lease liabilities were as follows: As of December 31, 2023 Years ending September 30, Operating Leases Finance Lease Remainder of 2024 $ 21,876 $ 875 2025 30,130 1,193 2026 30,492 1,229 2027 28,873 1,266 2028 26,747 1,304 2029 and thereafter 85,892 439 Total lease payments 224,010 6,306 Less: interest (37,364) (906) Present value of lease liabilities 186,646 5,400 Less: current lease liabilities (22,521) (865) Long-term lease liabilities $ 164,125 $ 4,535 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: December 31, 2023 September 30, 2023 Accounts payable $ 17,992 $ 14,438 Accrued compensation and benefits 27,605 36,332 Accrued tool sets 4,431 4,096 Other accrued expenses 18,470 15,075 Total accounts payable and accrued expenses $ 68,498 $ 69,941 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2023 September 30, 2023 Interest Rate Maturity Date Carrying Value of Debt (6) Carrying Value of Debt (6) Revolving Credit Facility (1) 7.45 % Nov 2025 $ 90,000 $ 90,000 Avondale Term Loan (2) 7.39 % May 2028 29,039 29,251 Lisle Term Loan (3) 7.34 % Apr 2029 37,536 37,740 Finance lease (4) 6.02 % Various 5,400 5,601 Total debt 161,975 162,592 Debt issuance costs presented with debt (5) (453) (475) Total debt, net 161,522 162,117 Less: current portion of long-term debt (2,560) (2,517) Long-term debt $ 158,962 $ 159,600 (1) Interest on the Revolving Credit Facility (as defined below) accrues at a rate equal to one-month Term SOFR plus a margin of 2.0% and a lender specific spread of 0.10%. (2) Interest on the Avondale Term Loan (as defined below) accrues at a rate equal to one-month Term SOFR plus 2.0% and a tranche adjustment of 0.046%. (3) Interest on the Lisle Term Loan (as defined below) accrues at a rate equal to one-month Term SOFR plus 2.0%. (4) The finance lease is related to a facility lease with an annual interest rate of 6.02% that matures in 2029. See Note 10 for additional details on our finance lease. (5) The unamortized debt issuance costs as of December 31, 2023 relate to the Avondale Term Loan and the Lisle Term Loan. (6) The Credit Facility, Term Loans and finance leases bear interest at rates commensurate with market rates, and therefore, the respective carrying values approximate fair value (Level 2). |
Schedule of Maturities of Long-term Debt | Scheduled principal payments due on our debt for the remainder of 2024 and for each year through the period ended September 30, 2028, and thereafter were as follows at December 31, 2023: Maturity Revolving Credit Facility & Term Loans Finance Lease Total Remainder of 2024 $ 1,257 $ 865 $ 2,122 2025 1,763 955 2,718 2026 91,836 1,051 92,887 2027 1,909 1,154 3,063 2028 26,610 1,265 27,875 Thereafter 33,200 110 33,310 Subtotal 156,575 5,400 161,975 Debt issuance costs presented with debt (453) — (453) Total $ 156,122 $ 5,400 $ 161,522 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The following table presents the fair value of our Avondale Swap and Lisle Swap (Level 2) which are designated as cash flow hedges and the related classification on the condensed consolidated balance sheets as of December 31, 2023 and September 30, 2023: Interest Rate Swaps December 31, 2023 September 30, 2023 Other current assets $ 768 $ 957 Other assets 1,083 2,075 Total fair value of assets designated as hedging instruments $ 1,851 $ 3,032 |
Schedule of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of cash flow hedge accounting for our Avondale Swap and Lisle Swap on the condensed consolidated statement of operations and “Accumulated other comprehensive income” for the three months ended December 31, 2023 and 2022: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative, net of taxes Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income Three Months Ended December 31, 2023 Avondale Swap and Lisle Swap $ 911 $ (271) Three Months Ended December 31, 2022 Avondale Swap and Lisle Swap $ 41 $ (128) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Weighted Average Number of Shares Outstanding Used in Computing Basic and Diluted Net Income Loss Per Share | The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended December 31, 2023 2022 Basic earnings per common share: Net income $ 10,389 $ 2,648 Less: Preferred stock dividend declared (1,097) (1,277) Net income available for distribution 9,292 1,371 Income allocated to participating securities (2,855) (514) Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Basic income per common share $ 0.18 $ 0.03 Three Months Ended December 31, 2023 2022 Diluted earnings per common share: Method used: Two-class Two-class Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Dilutive effect related to employee stock plans 1,005 603 Weighted average diluted shares outstanding 37,439 34,408 Diluted income per common share $ 0.17 $ 0.02 Anti-dilutive shares excluded: Outstanding stock-based grants 166 506 Convertible preferred stock — 20,297 Total anti-dilutive shares excluded 166 20,803 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the computation of basic and diluted EPS under the two-class or as-converted method, as well as the anti-dilutive shares excluded: Three Months Ended December 31, 2023 2022 Basic earnings per common share: Net income $ 10,389 $ 2,648 Less: Preferred stock dividend declared (1,097) (1,277) Net income available for distribution 9,292 1,371 Income allocated to participating securities (2,855) (514) Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Basic income per common share $ 0.18 $ 0.03 Three Months Ended December 31, 2023 2022 Diluted earnings per common share: Method used: Two-class Two-class Net income available to common shareholders $ 6,437 $ 857 Weighted average basic shares outstanding 36,434 33,805 Dilutive effect related to employee stock plans 1,005 603 Weighted average diluted shares outstanding 37,439 34,408 Diluted income per common share $ 0.17 $ 0.02 Anti-dilutive shares excluded: Outstanding stock-based grants 166 506 Convertible preferred stock — 20,297 Total anti-dilutive shares excluded 166 20,803 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | Summary information by reportable segment is as follows: UTI Concorde Corporate Consolidated Three Months Ended December 31, 2023 Revenues $ 115,373 $ 59,322 $ — $ 174,695 Income (loss) from operations 15,090 7,128 (7,987) 14,231 Depreciation and amortization 5,494 1,154 336 6,984 Net income (loss) 13,597 7,173 (10,381) 10,389 Three Months Ended December 31, 2022 Revenues $ 105,573 $ 14,431 $ — $ 120,004 Income (loss) from operations 13,422 (726) (8,248) 4,448 Depreciation and amortization 4,775 457 16 5,248 Net income (loss) 12,732 (734) (9,350) 2,648 UTI Concorde Corporate Consolidated As of December 31, 2023 Total assets $ 449,834 $ 134,697 $ 147,882 $ 732,413 As of September 30, 2023 Total assets $ 442,507 $ 130,813 $ 167,365 $ 740,685 |
Nature of the Business (Details
Nature of the Business (Details) | 3 Months Ended | |
Dec. 01, 2022 segment | Dec. 31, 2023 segment campus state | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of reportable segments | segment | 2 | 2 |
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | campus | 16 | |
Number of states | state | 9 | |
Concorde | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | campus | 17 | |
Number of states | state | 8 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 01, 2022 USD ($) campus student program state | Dec. 31, 2023 USD ($) campus state | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Business Combination Segment Allocation [Line Items] | ||||
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | campus | 16 | |||
Number of states | state | 9 | |||
Goodwill | $ 28,459,000 | $ 28,459,000 | ||
Concorde | ||||
Business Combination Segment Allocation [Line Items] | ||||
Number of campuses through which undergraduate degree, diploma and certificate programs are offered | campus | 17 | |||
Number of states | state | 8 | |||
Number of students | student | 7,600 | |||
Number of programs | program | 20 | |||
Base purchase price | $ 50,000,000 | |||
Working capital | 1,900,000 | |||
Purchase consideration | 48,100,000 | |||
Business combination, acquisition related costs | 5,300,000 | $ 2,300,000 | $ 3,000,000 | |
Adjustment to income tax receivable | 100,000 | |||
Adjustment to deferred income taxes | 600,000 | |||
Adjustment to property and equipment | $ 700,000 | |||
Goodwill | 11,600,000 | |||
Goodwill expected to be deductible for tax purposes | 0 | |||
Receivables acquired | 2,300,000 | |||
Allowance for credit losses on PCD assets | $ 1,000,000 |
Acquisitions - Preliminary Allo
Acquisitions - Preliminary Allocation of Purchase Price - Concorde (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 01, 2022 USD ($) lease |
Assets acquired | |||
Goodwill | $ 28,459 | $ 28,459 | |
Concorde | |||
Assets acquired | |||
Cash and cash equivalents | $ 30,064 | ||
Restricted cash | 1,689 | ||
Accounts receivable, net | 6,800 | ||
Prepaid expenses | 2,957 | ||
Other current assets | 827 | ||
Property and equipment | 23,238 | ||
Right-of-use assets for operating leases | 71,153 | ||
Goodwill | 11,600 | ||
Intangible assets | 5,400 | ||
Deferred tax assets | 5,112 | ||
Other assets | 4,997 | ||
Total assets acquired | 163,837 | ||
Less: Liabilities assumed | |||
Accounts payable and accrued expenses | 15,482 | ||
Deferred revenue | 20,145 | ||
Operating lease liability, current portion | 10,011 | ||
Long-term debt, current portion | 807 | ||
Other current liabilities | 208 | ||
Long-term debt | 5,468 | ||
Operating lease liability | 63,582 | ||
Total liabilities assumed | 115,703 | ||
Net assets acquired | $ 48,134 | ||
Number of finance leases acquired | lease | 1 |
Acquisitions - Schedule of Inta
Acquisitions - Schedule of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 01, 2022 |
Asset Acquisition [Line Items] | ||
Finite-lived intangible assets, net book value | $ 2,501 | |
Net Book Value | 18,801 | |
Concorde | ||
Asset Acquisition [Line Items] | ||
Net Book Value | $ 5,400 | |
Trademarks, trade names and other | ||
Asset Acquisition [Line Items] | ||
Finite-lived intangible assets, net book value | 1,178 | |
Trademarks, trade names and other | Concorde | ||
Asset Acquisition [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 10 years | |
Finite-lived intangible assets, net book value | $ 500 | |
Curriculum development | ||
Asset Acquisition [Line Items] | ||
Finite-lived intangible assets, net book value | 1,323 | |
Curriculum development | Concorde | ||
Asset Acquisition [Line Items] | ||
Weighted Average Remaining Useful Life (Years) | 5 years | |
Finite-lived intangible assets, net book value | $ 1,400 | |
Accreditations and regulatory approvals | ||
Asset Acquisition [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 16,300 | |
Accreditations and regulatory approvals | Concorde | ||
Asset Acquisition [Line Items] | ||
Indefinite-lived intangible assets, gross carrying amount | $ 3,500 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - Concorde $ in Thousands | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Revenue | $ 156,025 |
Net income | $ 3,234 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognition period | 12 months | |
Receivables | $ 61,057 | $ 59,863 |
Deferred revenue | $ 81,474 | $ 85,738 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | $ 156,575 | $ 156,991 |
Revolving credit facility and term loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 156,575 | 156,991 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Revolving credit facility and term loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 156,575 | 156,991 |
Significant Other Observable Inputs (Level 2) | Revolving credit facility and term loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 156,575 | 156,991 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Revolving credit facility and term loans | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 53,963 | 66,350 |
Estimate of Fair Value Measurement | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 14,569 | 29,687 |
Estimate of Fair Value Measurement | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 39,394 | 36,663 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 14,569 | 29,687 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 14,569 | 29,687 |
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 39,394 | 36,663 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 0 | 0 |
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Notes receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | $ 39,394 | $ 36,663 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets for finance leases | $ 5,603 | $ 5,603 |
Property and equipment and Right-of-use assets for finance leases, gross | 455,534 | 452,710 |
Less: Accumulated depreciation and amortization | (191,612) | (186,364) |
Property and equipment and Right-of-use assets for finance leases, net | 263,922 | 266,346 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,601 | 25,601 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 163,882 | 160,920 |
Buildings and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 3 years | |
Buildings and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 30 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 88,728 | 87,525 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 20 years | |
Training equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 111,851 | 110,292 |
Training equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 3 years | |
Training equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 10 years | |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 37,292 | 37,251 |
Office and computer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 3 years | |
Office and computer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 10 years | |
Curriculum development | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,427 | 2,478 |
Curriculum development | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 3 years | |
Curriculum development | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 5 years | |
Software developed for internal use | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 13,055 | 12,573 |
Software developed for internal use | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 1 year | |
Software developed for internal use | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 5 years | |
Property and equipment, gross | $ 1,406 | 1,406 |
Right-of-use assets for finance leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 2 years | |
Right-of-use assets for finance leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Lives (in years) | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,689 | $ 9,061 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Deprecation expense | $ 6.8 | $ 5.1 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 28,459 | $ 28,459 |
Goodwill - Goodwill Reportable
Goodwill - Goodwill Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 28,459 | $ 28,459 |
UTI | ||
Goodwill [Line Items] | ||
Goodwill | 16,859 | 16,859 |
Concorde | ||
Goodwill [Line Items] | ||
Goodwill | $ 11,600 | $ 11,600 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Accumulated Amortization | $ (1,241) |
Total | 2,501 |
Gross Carrying Value | 20,042 |
Net Book Value | $ 18,801 |
Weighted Average Remaining Useful Life (Years) | 4 years 4 months 2 days |
Trademarks, trade names and other | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, gross carrying amount | $ 1,942 |
Accumulated Amortization | (764) |
Total | $ 1,178 |
Weighted Average Remaining Useful Life (Years) | 5 years 7 days |
Curriculum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, gross carrying amount | $ 1,800 |
Accumulated Amortization | (477) |
Total | $ 1,323 |
Weighted Average Remaining Useful Life (Years) | 3 years 8 months 23 days |
Accreditations and regulatory approvals | |
Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets, gross carrying amount | $ 16,300 |
Indefinite-lived intangible assets, net book value | $ 16,300 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.2 | $ 0.1 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 522 |
2025 | 677 |
2026 | 660 |
2027 | 337 |
2028 | 97 |
Thereafter | 208 |
Total | $ 2,501 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Dec. 31, 2023 location campus | |
Lessee, Lease, Description [Line Items] | |
Number of lease contracts | 29 |
Number of leasable campuses | 33 |
Number of corporate office locations leased | location | 3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 7,660 | $ 5,704 |
Income and Expenses, Lessee [Abstract] | ||
Amortization of leased assets | 227 | 198 |
Interest on lease liabilities | 82 | 87 |
Variable lease expense | 2,362 | 1,950 |
Sublease income | (33) | (32) |
Total net lease expense | $ 10,298 | $ 7,907 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) lease | |
Assets: | |||
Operating lease assets | $ 174,973 | $ 176,657 | |
Finance lease assets | $ 4,618 | $ 4,846 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net | |
Total leased assets | $ 179,591 | $ 181,503 | |
Current | |||
Operating lease liabilities | 22,521 | 22,481 | |
Finance lease liabilities | $ 865 | $ 844 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Long-term debt, current portion | Long-term debt, current portion | |
Noncurrent | |||
Operating lease liabilities | $ 164,125 | $ 165,026 | |
Finance lease liabilities | $ 4,535 | $ 4,757 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt | |
Total lease liabilities | $ 192,046 | $ 193,108 | |
Number of facilities leased | lease | 1 | 1 | |
Finance lease, accumulated amortization | $ 1,000 | $ 800 | |
Weighted-average remaining lease term (in years): | |||
Operating leases | 7 years 9 months 10 days | 7 years 10 months 28 days | |
Finance lease | 5 years 29 days | 5 years 3 months 29 days | |
Weighted average discount rate: | |||
Operating leases | 4.86% | 4.76% | |
Finance lease | 6.02% | 6.02% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 4,708 | $ 4,963 | |
Financing cash flows from finance leases | 201 | 115 | |
Non-cash activity related to lease liabilities: | |||
Lease assets obtained in exchange for new operating lease liabilities | $ 3,847 | $ 117 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Liabilities Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 21,876 | |
2025 | 30,130 | |
2026 | 30,492 | |
2027 | 28,873 | |
2028 | 26,747 | |
2029 and thereafter | 85,892 | |
Total lease payments | 224,010 | |
Less: interest | (37,364) | |
Present value of lease liabilities | 186,646 | |
Less: current lease liabilities | (22,521) | $ (22,481) |
Long-term lease liabilities | 164,125 | 165,026 |
Finance Lease | ||
Remainder of 2024 | 875 | |
2025 | 1,193 | |
2026 | 1,229 | |
2027 | 1,266 | |
2028 | 1,304 | |
2029 and thereafter | 439 | |
Total lease payments | 6,306 | |
Less: interest | (906) | |
Present value of lease liabilities | 5,400 | |
Less: current lease liabilities | (865) | (844) |
Long-term lease liabilities | $ 4,535 | $ 4,757 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 17,992 | $ 14,438 |
Accrued compensation and benefits | 27,605 | 36,332 |
Accrued tool sets | 4,431 | 4,096 |
Other accrued expenses | 18,470 | 15,075 |
Total accounts payable and accrued expenses | $ 68,498 | $ 69,941 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||
Total debt | $ 161,975 | $ 162,592 |
Debt issuance costs presented with debt | (453) | (475) |
Total debt, net | 161,522 | 162,117 |
Less: current portion of long-term debt | (2,560) | (2,517) |
Long-term debt | $ 158,962 | 159,600 |
Avondale Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.39% | |
Total debt | $ 29,039 | 29,251 |
Avondale Term Loan | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 2% | |
Tranche rate adjustment | 0.046% | |
Lisle Term Loan | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.34% | |
Total debt | $ 37,536 | 37,740 |
Lisle Term Loan | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 2% | |
Finance Lease | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.02% | |
Total debt | $ 5,400 | 5,601 |
Debt issuance costs presented with debt | 0 | |
Total debt, net | $ 5,400 | |
Weighted average interest rate | 6.02% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate | 7.45% | |
Total debt | $ 90,000 | $ 90,000 |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Variable Rate Component One | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 2% | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Variable Rate Component Two | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 0.10% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Nov. 28, 2022 | Nov. 18, 2022 | Apr. 14, 2022 | May 12, 2021 | Jan. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Avondale Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.39% | |||||||
Avondale Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2% | |||||||
Tranche rate adjustment | 0.046% | |||||||
Lisle Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.34% | |||||||
Lisle Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2% | |||||||
Fifth Third Bank, National Association | Secured Debt | Avondale Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity term | 7 years | |||||||
Interest Rate | 1.45% | |||||||
Maximum principal amount | $ 31,200,000 | |||||||
Fifth Third Bank, National Association | Secured Debt | Avondale Term Loan | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2% | |||||||
Fifth Third Bank, National Association | Secured Debt | Avondale Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Tranche rate adjustment | 0.046% | |||||||
Fifth Third Bank, National Association | Secured Debt | Lisle Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity term | 7 years | |||||||
Interest Rate | 4.69% | |||||||
Valley National Bank | Secured Debt | Lisle Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt maturity term | 7 years | |||||||
Maximum principal amount | $ 38,000,000 | |||||||
Valley National Bank | Secured Debt | Lisle Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate | 2% | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.45% | |||||||
Revolving Credit Facility | Fifth Third Bank | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||
Debt maturity term | 3 years | |||||||
Revolving Credit Facility | Fifth Third Bank | Line of Credit | Concorde | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from lines of credit | $ 90,000,000 | |||||||
Interest Rate | 6.54% | |||||||
Revolving Credit Facility | Fifth Third Bank | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issuance costs | $ 500,000 | |||||||
Letter of Credit | Line of Credit | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 47,200,000 | |||||||
Letter of Credit | Fifth Third Bank | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 8,200,000 | ||||||
Maximum principal amount | $ 1,800,000 | |||||||
Letter of Credit | Fifth Third Bank | Line of Credit | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments | $ 39,000,000 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Revolving Credit Facility & Term Loans | ||
Remainder of 2024 | $ 2,122 | |
2025 | 2,718 | |
2026 | 92,887 | |
2027 | 3,063 | |
2028 | 27,875 | |
Thereafter | 33,310 | |
Total debt, net | 161,975 | $ 162,592 |
Debt issuance costs presented with debt | (453) | (475) |
Total debt, net | 161,522 | 162,117 |
Revolving Credit Facility & Term Loans | ||
Revolving Credit Facility & Term Loans | ||
Remainder of 2024 | 1,257 | |
2025 | 1,763 | |
2026 | 91,836 | |
2027 | 1,909 | |
2028 | 26,610 | |
Thereafter | 33,200 | |
Total debt, net | 156,575 | |
Debt issuance costs presented with debt | (453) | |
Total debt, net | 156,122 | |
Finance Lease | ||
Revolving Credit Facility & Term Loans | ||
Remainder of 2024 | 865 | |
2025 | 955 | |
2026 | 1,051 | |
2027 | 1,154 | |
2028 | 1,265 | |
Thereafter | 110 | |
Total debt, net | 5,400 | $ 5,601 |
Debt issuance costs presented with debt | 0 | |
Total debt, net | $ 5,400 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Apr. 14, 2022 | May 12, 2021 | Dec. 31, 2023 | Mar. 31, 2023 |
Interest Rate Swap | Cash Flow Hedging | Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) expected to reclassified to interest expense within the next twelve months | $ 0.8 | |||
Avondale Term Loan | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest Rate | 7.39% | |||
Lisle Term Loan | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest Rate | 7.34% | |||
Lisle Swap | Interest Rate Swap | Cash Flow Hedging | Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | $ 18.8 | |||
Avondale Swap | Interest Rate Swap | Cash Flow Hedging | Hedging Instrument | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative, notional amount | $ 14.5 | |||
Secured Debt | Fifth Third Bank, National Association | Avondale Term Loan | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fixed rate on principal amount | 50% | |||
Interest Rate | 1.45% | |||
Debt maturity term | 7 years | |||
Secured Debt | Fifth Third Bank, National Association | Lisle Term Loan | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fixed rate on principal amount | 50% | |||
Interest Rate | 4.69% | |||
Debt maturity term | 7 years |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Interest Rate Swap - Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total fair value of assets designated as hedging instruments | $ 1,851 | $ 3,032 |
Other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total fair value of assets designated as hedging instruments | 768 | 957 |
Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total fair value of assets designated as hedging instruments | $ 1,083 | $ 2,075 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Accumulated Other Comprehensive Income (Loss) and Statement of Operations (Details) - Interest Rate Swaps - Cash Flow Hedging - Hedging Instrument - Interest Expense - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative, net of taxes | $ 911 | $ 41 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | $ (271) | $ (128) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 3,160 | $ 1,525 |
Effective income tax rate, percent | 23.30% | 36.50% |
Restructuring Costs (Details)
Restructuring Costs (Details) - Campus Location Consolidation - Facility Consolidation $ in Thousands | 3 Months Ended | |||
Dec. 05, 2023 USD ($) plan | Dec. 31, 2023 USD ($) | Sep. 30, 2025 USD ($) | Sep. 30, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of plans consolidated | plan | 2 | |||
Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected estimated costs | $ 800 | $ 600 | ||
UTI | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1,400 | |||
Termination costs | $ 43 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Dec. 18, 2023 USD ($) day $ / shares shares | Dec. 31, 2023 USD ($) vote $ / shares shares | Dec. 31, 2022 USD ($) shares | Sep. 30, 2023 $ / shares shares | Dec. 10, 2020 USD ($) | |
Stockholders Equity Note [Line Items] | |||||
Number of voting rights | vote | 1 | ||||
Preferred stock, shares issued (in shares) | 0 | 676,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | 100 | 100 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Dividends payable | $ | $ 0 | $ 1,277 | |||
Repurchase of common stock authorized by Board of Directors | $ | $ 35,000 | ||||
Stock repurchased (in shares) | 0 | 0 | |||
Common Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | ||||
Series A Preferred Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Preferred stock, shares issued (in shares) | 33,300 | 675,885 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 100 | ||||
Consecutive trading days | day | 20 | ||||
Excise taxes and other professional service fees | $ | $ 300 | ||||
Preferred stock cancelled and converted into the right to receive (in shares) | 30.03003 | ||||
Dividends payable | $ | $ 1,100 | ||||
Preferred stock conversion of stock, shares converted (in shares) | 642,585 | ||||
Preferred stock outstanding shares converted into common stock shares (in shares) | 19,296,843 | ||||
Preferred stock remain outstanding and all rights of the holders receive (in shares) | 0 | ||||
Preferred stock voting cap, percentage | 25% | ||||
Series A Preferred Stock | Preferred Stock Including Additional Paid in Capital | |||||
Stockholders Equity Note [Line Items] | |||||
Purchase price | $ | $ 11,300 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) | Dec. 18, 2023 shares |
Series A Preferred Stock | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Preferred stock remain outstanding and all rights of the holders receive (in shares) | 0 |
Earnings per Share - Calculatio
Earnings per Share - Calculation of earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic earnings per common share: | ||
Net income | $ 10,389 | $ 2,648 |
Less: Preferred stock dividend declared | (1,097) | (1,277) |
Income available for distribution | 9,292 | 1,371 |
Income allocated to participating securities | (2,855) | (514) |
Net income available to common shareholders | $ 6,437 | $ 857 |
Weighted average basic shares outstanding (in shares) | 36,434 | 33,805 |
Basic (loss) income per common share (in dollars per share) | $ 0.18 | $ 0.03 |
Diluted earnings per common share: | ||
Net income available to common shareholders | $ 6,437 | $ 857 |
Weighted average basic shares outstanding (in shares) | 36,434 | 33,805 |
Dilutive effect related to employee stock plans (in shares) | 1,005 | 603 |
Weighted average diluted shares outstanding (in shares) | 37,439 | 34,408 |
Diluted income per common share (in dollars per share) | $ 0.17 | $ 0.02 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of antidilutive securities (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive shares excluded (in shares) | 166 | 20,803 |
Outstanding stock-based grants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive shares excluded (in shares) | 166 | 506 |
Convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive shares excluded (in shares) | 0 | 20,297 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |||
Dec. 01, 2022 segment | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | 2 | ||
Revenues | $ 174,695 | $ 120,004 | ||
Income (loss) from operations | 14,231 | 4,448 | ||
Depreciation and amortization | 6,984 | 5,248 | ||
Net income (loss) | 10,389 | 2,648 | ||
Total assets | 732,413 | $ 740,685 | ||
Operating Segments | UTI | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 115,373 | 105,573 | ||
Income (loss) from operations | 15,090 | 13,422 | ||
Depreciation and amortization | 5,494 | 4,775 | ||
Net income (loss) | 13,597 | 12,732 | ||
Total assets | 449,834 | 442,507 | ||
Operating Segments | Concorde | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 59,322 | 14,431 | ||
Income (loss) from operations | 7,128 | (726) | ||
Depreciation and amortization | 1,154 | 457 | ||
Net income (loss) | 7,173 | (734) | ||
Total assets | 134,697 | 130,813 | ||
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Income (loss) from operations | (7,987) | (8,248) | ||
Depreciation and amortization | 336 | 16 | ||
Net income (loss) | (10,381) | $ (9,350) | ||
Total assets | $ 147,882 | $ 167,365 |
Government Regulation and Fin_2
Government Regulation and Financial Aid (Details) - Concorde | Dec. 31, 2023 institution |
ACCSC | |
Unusual or Infrequent Item, or Both [Line Items] | |
Number of accredited institutions | 14 |
COE | |
Unusual or Infrequent Item, or Both [Line Items] | |
Number of accredited institutions | 2 |