UTI - Earnings call 4 2023 | Universal Technical Institute, Inc.

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Operator

Good day, and welcome to the Universal Technical Institute Q4 and Full Year 2023 Earnings Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Matt Kempton, Vice President of Corporate Finance. Please go ahead.

Matthew Kempton

Universal Earnings Fiscal Call. to Full Quarter welcome XXXX Year and Technical Fourth Institute's and Hello,

Joining Grant; Anderson. and today CFO, me are Troy our CEO, Jerome

Following Relations and our earlier our call presentation will along open replay we with on earnings this our investor our today the website archived to questions. investor.uti.edu, Investor of transcript issued your the of and A the its call, be prepared remarks, section release SEC. for furnished will at

contain referenced are our GAAP. that that release All the The substitute the comparable to of discussed update comments results new number in statements statements make filings. statements. their accordance U.S. for to to prepared unless upon the not the financial may most may comparable uncertain. except from results to our intend those but press presented includes measures statements company's we not results in of be not and result measure. measures. all also call, reflect forward-looking non-GAAP information comparisons and not XXXX. of today current stated, otherwise factors Securities do in those Act this in We be These required by do financial them. a for defined will limited earnings Reform call undue nature, in as information are management's guarantee against reconciled to, a subject Private performance, be a should as GAAP cause are beliefs placed XXXX, forward-looking the developments, future release addition that materially future SEC to note, These call viewed or with actual During directly these These as in as law. Please in by earnings fiscal and differ this today's and include, non-GAAP therefore, period and reported the statements are future are reliance These address expectations should not Litigation our of matters which in factors and

our information of For the his that, more please Technical non-GAAP to CEO Jerome? prepared Grant, Institute I earnings release measures, investor remarks. regarding for definitions see presentation. With will Jerome turn Universal of call and over our

Jerome Grant

Thank Fiscal you, Matt. Good with company. you. was that afternoon, to the the you very time year several grateful share for afternoon we out are your XXXX a that of everyone. take strong We're can able so highlights

the comment strategy. First, the I'll diversification briefly for go growth progress and results our on year and our multiyear over of

our XXXX. performance Following and I'll share focus divisional of conquered and UTI in highlights that,

and for I'd ongoing fiscal We dedication outperformed ability execute results. throughout ongoing operating as their At like now demonstrating our over in Anderson, Next, the spend since in to to From hard outline year there, performance superior of dig for share and student and we XXXX. conclusion both model this the sharing bit I'll our everything we'll employment turn to my deeper both I'll strength numbers multidivisional faculties, the for to accomplishments comments, and the students the have some expectations strategy, moments few XXXX. our of of a delivering effectiveness team's diversification staff Troy and XXXX begin areas and we this company. and a thank flexibility achieved with past and fiscal our on outcomes let's and the we fine to guidance focus. that, the the are our to ahead of formal recognitions of central our metrics. With will our work. the I call year. look a do, CFO, year, growth

and revenue and we we across performed key $XXX.X starts adjusted EBITDA, all guidance high financial with new XX,XXX as expectations million our million For year. student for metrics exceeded delivering the line the reaching as the in of our in ambitious full in year, far end $XX.X

several on solutions goals delivered workforce years, Over our the we've the past consistently financial we for platform. established diversified

in multiyear from the growth As accelerator we the goals. XXXX, our diversification on pandemic and hit we emerge

divisional when with maintain on our year X space our to announced we first already areas. will well demand our into momentum we and UTI As acquisition acquisition collaboration as results about high for over trajectory, and the overall With performance and we year the our in entering underway, in the and building news our financial and shared fiscal a are our when execution forward for past teams leadership core and robust years foundation our outlined, we again student and commend diversification skilled the trades Concorde ago MIAT offering both believe our of while Concorde in health initiatives May, broadening outcomes employment last year the like and as and then the and care growth focus significantly well maintaining supporting to propel this their strong positioned XXXX. I'd future all transportation efficient efforts achieving growth.

highlights this Florida. years business remained And has program ahead. year. all that one programs, we we've to the work throughout strong critical organizational the of grow. Demand turn functions students in model and those Concorde's fine supporting began behind to integrated and Concorde's in on of XXXX. to It's related ensuring seamlessly to of and important cardiovascular majority optimize continues execute in this process a of us, requirements programs integration September, few in we'll the public the to Starting additional all sonography the from divisions while Let's underscore in with new occurred for key starting opportunities each now continue with company Concorde, the a synergy

diligently launched to fiscal new programs launching online on program These with remaining respiratory regulatory therapy look track the programs program we as approvals. are making for dental progress towards program at synography rapidly and well opportunities programs. dental planned expand are as recently another the XXXX to continue first online cardiovascular We're launch the planned X further hydogiene to an fiscal November. launches programming. and program year also during completing as respective X sonography medical good the We of other year division's Concorde's in diagnostic the the very working include hygiene new

efforts. quick Operating leadership. I'd a appointed fiscal entering we Kevin Concorde's of to a Prehn, to Concorde's support like the former Officer, wish initial role. thank and Chief Fraser, sincerely and year well. team Concorde We the Concorde's CEO, XXXX, Interim the I've President in her had update, efforts leading through Jamie change As for the in integration Divisional closing him the acquisition

on they have Kevin to leadership momentum the established Concorde confidence XXXX goals in the to their divisional's ability team, fiscal and have tremendous beyond. We and capitalize and achieve and operational their financial ability the for

the to accelerating quarter. year, in Moving in the the start fourth growth culminating year-over-year experienced division. throughout X% growth UTI We

delivered year. our planned campus across the XXXX. We and new our the program expect This we continue fact XX XX beyond. in Austin, that Florida. X not main for performance at campuses newest our to scaling planned launched growth that least trend first launches for We reflects the drivers of if X X XXXX, the of in Miramar, new on and half Texas UTI programs

UTI aviation, airframe Miramar at and power We program expect remaining plant launch to the campus the very soon. technician

certification our unfortunately delayed Following been Federal process. Administration Aviation has the beyond completion the control. which of

the We demand will XXX approximately high new portfolio. quarter in program demand overall We students across XXXX. well strong these started the and in these or student X,XXX have continued seen programs believe for across more starts see as fourth as programs we fiscal

in-demand MIAT bringing merely through we these the first launches the program UTI during aviation, skilled that past programs to us energy acquisition are calls, have wave footprint. the came As outlined of these trades and initial to

launch We early in have in a fiscal XXXX. fiscal ventilation more initiated and new HVAC fourth programs efforts X heating, and conditioning to air program XXXX

Based Austin remain to campuses, their campuses which that campuses confident on and or long-term continuing nearly with the XXXX, to continue and above respect markets. line are perform X,XXX the ramp to students Miramar this Turning we trajectory, view to both in in they our launched highly have will combined, now X nicely.

extremely quite graduates. Open students attendance Miramar, of our that and recent and the strong are example an is robust local signals alike. both Day from employers at market As Career in we This this, House values job recorded most

identify programs. available each to new as scaling expansion in our location well considering these We and locations capacity future in-demand continue will opportunities, offer leveraging as campuses

Now the are center at outcomes of superior our schools missions.

and a programs example the our received partnerships, and As schools employment top quality states. partners recently Concorde X of great of distinction in industry

proud School Concorde's Dallas and named of And Postsecondary the schools Year was success of Concorde's Further, excellence of same coaches, the received Concorde of the member the the they award training of Innovator and Connie. CCST. or distinction Dallas campus We're awards, Congratulations student First, very of colleges XXX CCST schools Texas, Association from Tiffido awarded Texas the early California Association, commitment Concorde's in and Connie ]. online Private [ to also outcomes. these career to in the October. in recognized one by Year

partners these opportunities California in Dental offer same part partnerships associations, and over Heartland network closely alongside various expanding as and partners, time. the will and of These ongoing Both partnerships Concorde's Texas Concorde of from relationships Services with our the continue professionals. worked received long-time with our X Dental Services and dental have division, have and Now and students historically to Pacific collaborations Dental, on-the-job health UTI to employment Dental careers Year innovative dental the care leveraged designed as recognitions, scholarships we of awards respectively. Pacific Employer Heartland help mirror industry of us we achieve these their

XXXX. to Moving

on execution has confident XXXX XXXX to strong throughout enter year the allowed Our footing. fiscal us

pleased As guidance million full we ahead, will you we're today targets. Revenue fiscal the $XXX with $XXX formal between be million. look to share and to year our year

starts We an will $XX and to and X% growth which represents expect rate impressive $XXX of million, between XX,XXX million between EBITDA between new be adjusted be and and XX,XXX, XX%. student

over that past foundation introduce the we reemphasize years. has much been like to to ranges, of these targets laid As these the X achieve I'd required

strategic involves in and made. work sustainable of Our execution, building us objectives year delivering against upon the the we've continued ahead progress these

and conversion to launches support and from and outcomes. inquiry XXXX the and newest Our new further potential, driving their ramping expectations. yield also These which greater for continued and hiring broader of execution fullest the efficiencies, our generation strategies, our practices over facilities workforce in expansion. XXXX turn XXXX both now as margin our enrollment, greater over operating our the generation include year quarter and revenue optimizing key strong past on year enhancing and utilization continuing fourth revenue, and for profitability costs continue them our year campuses divisions, maximize Troy? student our and areas review XXXX drive reach positioning XXXX provide proud profit call cash lead while to our UTI in to to objectives, to in to as ahead. I'd growth I'm additional growth like both detail Troy focus all the our help continuing program will and admissions our investment turn of capital well and full results to optimize to financial program marketing support

Troy Anderson

and for another both in you, expectations positive our a Thank happy flow the report We from the the full quarter fourth Jerome. versus that exceeded areas including year. contributions drove revenue, Concorde cash saw team. I'm that expectations, the number strong from to and performance performance of upside profitability our quarter

otherwise, summarize reminder, from corporate of new guidance our our and as comparisons consolidated unless recorded the date an forward. To only the and a performance, December as quarter basis, student the and on contributions full middle total total are Please acquisition of stated both that from for year-over-year our also XX,XXX Concorde reflected XX,XXX starts year, reported costs. well starts note in are As unallocated segment include results X, as-reported views range. solidly the as during operational student the XXXX new we

their previously seasonally Concorde quarter X shared, has in programs the versus number in other of our QX for large clinical is high starts of we quarters, a is starting core and for both the also start higher. students X programs As divisions.

for the the quarter occur On were contributed school the quarter and UTI fourth side, in division overall UTI of school and high full year. the the year. X% starts in XX% UTI total channel approximately starts the the fourth year-over-year X% starts up the high for majority of

in UTI second every the growth overall same program, the driven [indiscernible]. start during growth, the division's year-over-year we same year. In campus pleased Within are quarter quarter of consecutive to have

engage momentum this see fiscal programs our designed XXXX, and students. offerings we initiatives by better with proactive grant divisions, into to program both other and new support prospective continuing For supported year

UTI revenue a financial XX.X% million to division. year-over-year Moving basis increased driven consolidated from by $XXX.X for Concorde our the performance. to Fourth on growth the million, and quarter X.X% contribution $XX

or range. million for end per million, acquisition. From X.X% share, $XXX.X million contributed which increased and the income the Concorde net For XX for above the or was consolidated XX% million of range. for XX.X the diluted previously we of the was The and above was the Adjusted outstanding. year, division the the was $X.XX for diluted which of standpoint, quarter, revised $XXX.X quarter the and of profitability year the $XXX.X fourth UTI $XX.X million a was end quarter shares per million, year-over-year $X.X $X.XX growth, revenue $XX.X end million year previously share. was At our contributed fourth full raised our following guidance income while net $X.X to for had high the closing the high consolidated months million guidance

previously of operating focus impact from last $XXX.X year, fourth net discrete our in million is the $XXX driving was Total million remaining of XXXX. Adjusted $XX was at in expense levels, end which approximately our valuation on million, $XX.X our million was Our and expect the we EBITDA capacity. profitability XXXX reflects approximately the see the divisional tax the during while of the quarter a reversal. performance similar rate with effective to efficiencies effective Total fiscal liquidity the was $X.X revolver higher debt certain $XX.X resulted exceeded net continuous and raised top for debt performance. that and items for reflected including overall guidance Along year's allowance rate income year, On full million. was available of quarter tax end both million the corporate range. the management

million, year. our decrease Austin [ year full CapEx relative manage overachieved drivers important capital maintenance of we flow seasonally our is and operating of facilities, previously for both Orlando and fourth modest the UTI the of cash us improvement relatively to expenditures at were cash adjusted revenue. respectively. The cash associated $XX buildings guidance for a It the outs and exceed flow maintenance fiscal flow CapEx Our Total year for land amount. and The generation, XX% XXXX. million, $XX.X of and quarter we a quarter of note strong representing ] UTI adjusted million our free and the million. completion end campus, the expectations and associated free million the the were primary a high to $XX.X of year-over-year the is helped include the year which $XX.X campus the and the build purchase $X.X primary raised UTI for X cash Miramar program equipment, CapEx items. to Concorde with is X% curriculum consistently expansion other our approximately which a

XXXX of we have visibility I'll throughout the current strength degree of XXXX. the fiscal carrying communicated, as as guidance execution into underscoring projections business a high and that XXXX building visibility our we highlight providing of momentum the our adjusted several and the the the for fiscal predictability been on Given forward, not we well with, over years. confidence have consistent are ranges we in formal are the ranges upside revenue the have are we and model if past EBITDA previously

revenue, $XXX start from expect growth from generate fiscal between for student and year Concorde and by million new during contribution performance recent For driven year student strong the growth both of forthcoming million along XX% divisions. expansions, year we greater is with The from to the $XXX XX% and program contributions to organic full new start year past this year-over-year or growth. the the

revenue of a strong Concorde. we are we quarter full quarter the particular contribution we record first anticipating from expect While in generate as each growth strength quarter, to year-over-year

growth revenue ramping by double upper driven For the XXXX. quarters, into the low expansion student the in to and digits digits single throughout momentum expect in divisions XXXX the both program and start remaining across continuing we growth

We fixed including current of significant program from which revenue reflects range XX% administrative to $XXX the margins year we from growth ultimately year-over-year adjusted million, million increase year to EBITDA expect leverage contribution, and overall the yields in more and in between improved our campus into investments have intent our and full growth our announced Concorde adjusted first expansion operating Comfort EBITDA is full general with new increased costs. $XX The With the solid profitability in overall growth. strongest outlined quarter, and the we expand of year. [indiscernible] selling, acquisition we anticipate the half growth each generating the our visibility, the mid-teens. the their second than

public additional drive from company we related Following to fiscal expect division investment double-digit and expansion for XXXX approach and our there. integration initial margin margins and the readiness, in to focus

a replacing believe guidance earnings share our and to adjusted introducing are income and guidance profitability net net suited GAAP we per better XXXX, metric these income we profile. as are GAAP fiscal as sustained expanding For are and metrics

quarterly range For a perspective, driven diluted for of in expect the a year, $X.XX we both both anticipate earnings million, tripling From measurable in $XX quarter divisions. half $X.XX fiscal a growth particularly $XX net currently net fourth the the every our we income the per by of metrics million income, to and we year-over-year overall phasing of expect for strength seasonal GAAP share. quarter, XXXX back to range per in share, and

We bulk Consistent million currently historical to expect cash year in $XX also the to free growth year-over-year activity planned to fewer million. fourth for lower the unadjusted of range generation strong. this cash full thus and given expect quarter. come between with the will we year flow adjusted very $XX adjustments expect Note, the year, investment flow be the cadence, our growth free cash we

of to XX,XXX alongside XX,XXX we X% financial expectations, student to total these between or starts new XX%. growth year-over-year to range Finally, approximately total expect

strong quarter in same as UTI Concorde's and benefit program the from start we expansions start continued from complemented program growth. full by robust growth expect both We contribution, in QX performance same-campus

expect and we in we quarters enhancements second the investments. Included stabilization the our third so. double-digit mature as then we the been or over well ramping the digits past in continued the of other fourth low prior growth complete and growth Thereafter, mid-single refining and each as Concorde campus XXXX. To performance as year comments, fronts in seasonality implementing XXXX and program quarter the place. grants is to certain initial over have in fiscal in in or expectations execution ramping programs these continuing clinical the start have annual fiscal we have is upon solid operational opportunities largely within on earlier fewer already and these Jerome's did than on our they next the in built expand of year and initiatives programs our

expect driving We rolling divisions, the the the programs, Further, to we reach programs within offerings continue both launched UGI out scaling greater division they during divisions year. newly to newest and growth launch as expanded both in additional campuses maturity. aim

and We facilities margin also operating labor our on are across expansion specific through both utilization targeting focus with force our increasing leverage optimizing divisions.

the and turn remarks. team, bridges our strength continue the our our from support ranges support and of we current to further to of tables we consolidated years, in these the over back and investments strategic now partners closing actual on performance between everyone include encourage flexible non-GAAP commitment for and the of yield diversification XXXX identifying results today. we to much Jerome and current supplement implementation executing investments our presentation ramping press as and strategy. I'll capital most map materials We strategic various ongoing call the and We With XXXX these over guidance balance very and beyond. as growth our and growth the focused few release, to investor XXXX growth remain and segment reconciliation the the and on on deploy announced guidance, areas information road financial our our our our including students review in sheet staying past appreciate

Jerome Grant

Troy. Thank you,

successful division. our As serve model extensions. fiscal UTI our highlight In more we acquired XXXX if yield ramped of alone, we included review be new new programs The inorganic X our swiftly fiscal our adjusted close new campuses, fiscal guidance, care division and revenue past health expansions, want call, Career But program and didn't achieving that and than XX XXXX X and the campuses, I and EBITDA. I'd Colleges, launched progress first, I growth tripled have today's this diversification for nearly programs we integrated strategy X newest pillars growth as from briefly a to the double year newly which against Concorde by strategy. will and division formed cornerstone our business UTI Healthcare remiss

growth our Our growth robust exceeding divisions, strategy key By diversification, by execution our delivery set and execute outperformance throughout strategy on the to propelling we several will have financial leverage. to To foundational expansion, we program strong and across and overall the optimization for momentum with we greater UTI workforce optimize generated as company well launching on XXXX focus divisions. demonstrates the past on targets, the aim a against we facilities continue as student for over XXXX. years. will both operating both objectives and utilization In of our expansions key and Concorde new improve XXXX, drive along to of our margin our consistency

expectations will growth the we in full advantage strengthened take Our XXXX. platform of

divisions. I'd will continue launched not our as emphasizing UTI is well strategy. Austin the ramping division, Concorde the newly our and that We our forthcoming Miramar like by for UTI the campuses growth our growth to of as across company's endpoint newest programs conclude position and start current and in X

sectors. As care workforce high-growth our we've health into Concorde, opportunities expanded acquiring demonstrated entry space, solution our new in deliver the through to ability

plans fiscal partnership our like Operator? call and the now growth footprint shareholders and we operator the student turn flexibility growth. We'd phases our beyond. I'd Our like of to in to XXXX corporate to further and Q&A. program over to extensive support for forward their and commitment to pursue the and thank executing on us our next team look our pathways for to diversification positive gives network and the outcomes deepen for

Operator

[Operator Instructions].

Martinuzzi Eric from comes Lake question first Street. Our with

Eric Martinuzzi

UTI It of different full get deck, understanding I Concorde the a drivers wanted program kind X you expansions, a to just looks there. outlined drivers, ask slide and the of year about then XXXX better the organic. growth in for organic Concorde the like and of outlook

of parsing if Just rank are the is for delta. could you What that kind million $XXX stack kind it of me? bigger them drivers,

Troy Anderson

Sure, no Yes. those joining to midpoint. the numbers to the make tried Obviously, Thanks the on is call. and This the page. proportional. bridging for question Eric. Troy. for We've there's They're

from but approximate only you Concorde, contribution they're the a start perspective, categories of said nailed X year. the year the side, last had the You December we certainly, on full month

So last plus we get clinical start, didn't a core year X in more we get November, we which get starts.

smaller program side. So or more are X,XXX number minus 'XX, their around then UTI programs that's or in cohorts. a pretty -- in in year. good on sized And the again, the in expansion, the remarks, their them XXX in extended have on so program the actually smaller we're between Concorde of organic on dates out did much plus contributor expecting we'll get his there. And the expansions, then and contribution Jerome a start UTI the Concorde approximately UTI commented the in expansions starts maybe much his equivalent program roughly that we prepared

low-ish, that driving you of UTI fairly the out EBITDA, So differentiation see to type mainly the start then the probably we've 'XX And Concorde. On flows modest year. consistently. get as of bit XXX on, plus and we commented XX some we in I side, performance, the and leverage the low Jerome both with given been pretty opposite then mid-single-digit of those. is, impact, pressure that because efficiencies 'XX And in 'XX, frankly, had know, coming revenue into of out organic kind growth our the start and on leverage you of to this operations our there some both a operating operating

leverage much upside see we growth from profile. the more the So on

Eric Martinuzzi

it. Got

a then not I the guess, here. And on macro X% the picture, less unemployment Jerome, supportive about employment it's still on Okay. we're environment, than talking still numbers

neutral kind macro kind You still outperforming, to kind you so powering guys Or do interest are the of kind are and you you supportive? inflation of consider are is despite rates? returning of through guys and of not there

Jerome Grant

not any growth think to yet the we've too just et I It's starting durable as past, as But as of really along to Troy our looking a I've predict quarterly numbers a may really as the anything in a saying new lines. are strong think macroeconomic that or numbers, path people about from career the it you, some that for to into settling we've cetera, the in tailwinds be before, last updates, they a we're organic soon standpoint. as headwind think, for a combination posture Well, said seen not we're a inflation move what's forward. point of of, in seeing said those recession I and outlined normal big proof

year. neither think rational, we've are we claim as any about that Troy And big But the numbers so also in I said, exuberant economy -- overly or but put economists, we throughout don't the and be. to repair out, not are the throughout the

Operator

Raj next with Riley. B. question The Sharma from comes

Rajiv Sharma

answered. already Some questions of were my

bit could geographic of fiscal adults, student I same schoolers versus know give performance broken the the little give me young down starts in expect adults terms do us you've -- but programs. color to you young in more sort a you If [indiscernible] on continue 'XX high of

Jerome Grant

Yes.

give being also health XXXX, Troy demographic on I the can care color XX-year-old little Concorde opportunities making we've Yes. rational came into you some side -- the of sort think UTI on growth thematically think business, of the numbers. in second the But we the on as more and I tide the a half there that on the of through following turn XX- been to seen are a a pretty the some out steady is side. decision has decisions, those made in extraordinary. who's growth world, the of person

what very, half and quarter the we're quarter, turn the first feeling terms XXXX. of into we're growth. a in So we November the second continued steady seeing saw good of we're first in on in very about

of that's I I us tailwind last but on something 'XX. beyond the now, through in we're we're as quarter don't fourth based to now put in we the the the exponential us think would what very what numbers give comfortable with what said quarter, numbers I we the we're projecting see behind quarter Eric the and third any seeing as on first call, saw right that in

Troy Anderson

XX% Yes. XX% mix, comment might Raj, on that for any specifically, XX-ish, year, have always In the in Troy. The Military did is XX-ish high given I this total. This school the difference. is is to UTI. we adult and makes a between from up of throughout swing, anything year we resource don't year in about and high frankly, there. coming expect a of plus/minus adult, rep we school investments last points dramatic a made field mainly and talked out high few of but We school perspective. range the

new some well. there leadership as have We

an high are we side as the school the the stronger performance been in We leveraging shorter in so more. about talked talked adult 'XX expecting [indiscernible] center call start had we've well. times. about capabilities We've 'XX, and than versus local even and transforming we And in

And have coming but good in I we some probably 'XX. channels, tailwinds think of different the net-net, material things different not mix, out going from a on so perspective a change and into capability in overall performance again, the 'XX

Rajiv Sharma

you're Got Concorde in of and the it. also comment gainful numbers XX-XX, on employment would any could the just UTI with there maybe updates. impact regulatory on be what on, exiting Great. And then you and impact or moving

Troy Anderson

the have high it XXs. basis, they in again, at military XX-XX of level. the the the The aggregate an on high some you in XXs is campuses don't But and a in school the Sure. measured OPEID Yes. up, but percentage. Concorde aggregate or very high This XXs when we're -- Troy. are the all We it's

side, for of rule X, will XX 'XXs, where for the 'XX, XXs. So touch but and into now the on X our the Concorde contribution count or the military to the again, even the effect new upper again, in on in expect fiscal any we being don't us schools only it's switching from wire goes

ACCSC those we're there gain the So in side, at been the summer we're XX/XX the will small profile. The anything start we're rates and it's have reporting think gainful any industry. to seeing rules creditor strong and and And be about cycle, very strong, -- XXX% we've done consistently we which stands on we rates, anybody just full, program, risk consistently always all. again, Concorde first performance reporting kind perfect, Concorde the is, both or, see we're we don't record comfortable just or in that probably on is If very we side. concerned once never niche finalized the period primary across on not of a we really but material UTI any graduation again, frankly, employment have the risk next mainly there, against and but focus continue

Operator

with next Paris Research. Barrington The comes from question Alex

Alexander Paris

have lot been a previous of answered, and have So but I from follow-ups questions. of my a asked couple questions

rising been unemployment But to it starts much at hasn't to really to to a that's of students revenue, press. this what attribute regard it's at point trend been I'm that lift with growth getting noted alternatives seeing evaluating to you're has a to wondering extent your strong said good less not prospective a do yet colleges. because you hear. from you So enrollment the some X-year point. headwind. significantly risen in tailwind This this from you Are of It's that?

Jerome Grant

prospect really more socioeconomic us between chosen a we qualification not evidence to to track have to et engage for when X-year Anecdotally, can that trying inclined press backgrounds, a tough they're are give than we so students talking the have But in decide everyone. other thrilled may out to, from as hard sense, that something people backgrounds, permission we're down talking traditional something or try the tech a strongly on as faster X-year a the or get to It's not a that to degree move to see path. and notion isn't school. that X-year mean, you're traditionally cetera. we if profile about to because to don't a going college seeing message it's anecdotally I standpoint, choose school school, we Well, you're a

a little So for there's seeing be starting of are solid really areas out skills what there bit to is these demand high long-term career. are, a hint which they people that

good it's starting to message see is that flow the through. So to

Troy Anderson

very only portfolio. thing hundreds to offer broad of said, add, UTI talking students programs always brought we we've the as of offering And now again, to has of we're that a in lead other would year, had portfolio historically, that handful UTI -- every them. The a I prospective thousands but Alex, we in generation brought Concorde is and

a more trajectory. that to for growth us about we supports portfolio, Now as to and prospective broaden talk students there's

Alexander Paris

counselor Are Or does UTI or enrollment one the at enrollment the together? they have other? other Concorde are cross-sell to and the counselors and brought an separate the institution between ability

Jerome Grant

That's a great question.

them not together. brought have We

regulatory back-end, benefits, would Last along were heard of being I of last are you've disrupt engaged for business Concorde things not we the things the the integration lines think one that the we collaboration few controls, quarters explored strategies issues, trajectory year, is those on in and operational from us HR, not last something XXXX. over UTI that or that engaged on our year.

out we represent may care take a serious has That's schools way look represent think, to a I As taking enrollments counselors you of are for we're because There's them we've right in the great in wouldn't how enrollment look course, be people XXXX, a want separate. But campus, of them reasons. of we touring about a as military, would care many collaboration aggressive turned at more high significantly the military. the we us for the the spending keep specifically the look significantly something professions the a local specific the time more population you on admissions campuses people that that that health page know rotate as that at to that got of ideas. military. large now, in who very into collaboration specific And or are opportunity very at health we're taking talking which

Alexander Paris

with helpful. salaries, is Concorde bind impact in experience looks and on it That like That's and on inflationary makes inflation that has I inflation within XXXX, sense. receding. fiscal color. instructors, peaked, pressures, its to ability a appreciate et the UTI What's cetera? then your and And question

Jerome Grant

been the two has sort the news down and One, were to Phoenix, about few normal years morning, they this peaking posture the the subside things sort a $X.XX is, gone out here. to they of that and each gallon ago, think here watching do. beginning you something we've is I created a one of where of the were think and comment talking inflationary and of a other on about Well, didn't to new pressures have things. of it, commented on just would I how high-fiving in gas continue has

really in really is out think, our I we're and listen, to And a demand. seeing normal, new there. great people being really that prospects like the an want where that's at I pay, are good something So durable, Amazon look driver isn't career,

to with for understand I on my more paying but And in that so get is life. this things, I of these something want all I'm

just it, certainly what so in seen But we've we were we this, really haven't. have with on, changed I huge no, saying it's rush, no, saying 'XX and get prospects. to past, love seen now people to I'd And meaning so right? is do time who, but more have can't afford us, the the 'XX the And to a conversations

Troy Anderson

they're the from workers active health and it's of a of health and think more also calls. Yes. just demand And perspective. a care supply Concorde But about in it the you're in teaching -- workers, care our mean, just particular, comment and [indiscernible] adjuncts cost there. many we are again, the dynamic quick health on a side, maybe asking of structure. on I commented prior care instructors The

that's a side So are staffing. pressure that generally Concorde does the having But not side. little extra we speaking, different of bit than on the trouble UTI put

year functions, in cetera. some the some We definitely more IT, seen of pullback. as bit a enterprise seen less well type as have actually little pressure have this et finance, past

the of fact, of here resumes we're lot posting In a recently. we're for some positions seeing

the direction So moving right there. in

Alexander Paris

hear. And related question then preferred the to Great A stock. last to Series is your

if expect don't you VWAP a get this would -- there quite any you there. have recall, $X stand you're do or backtrack. be get you Where share XX equals but to preferred I be seems force don't think that, There'll As for would the once consecutive million course, conversion so able the When was longer. almost just are And like XX we converted, of we we report, a now? It to shares, then the going what's exceeds days. repeatedly great earnings and that thought? I don't dividend dilution more

Troy Anderson

of -- and last Sure. certainly, the into optimistic release in mean, trading And between saw into earnings hopefully, this throughout window this I the momentum the and carrying the next is exiting Troy. we're period given we here above. out opens Monday, we're which average company window, consecutive It window, -- price is we're XX above that And will wood. or an within open days. the share volume-weighted trading knock achieve we trigger. on on $X.XX

X-class in though, -- The converted way already we don't an common shares our of portioning The the there dynamics basically converted the overall we doing and method. already. are between shares perspective, it because the this are income unconverted get window. shares unconverted and on on shares or we're EPS EPS, we We the calculate will net

from other there's it go preferred you than different to XX will dividend. and shares, on same an in So a impact over get but outstanding -- to would really really no meaningful number a doesn't in -- formula EPS It total million conversely change different the that EPS million the shares little be $XX perspective.

Operator

Grant over This remarks. concludes call session. closing Mr. the our like for turn question-and-answer to to would any I

Jerome Grant

for healthy of many us, with wish happy I to to up if February. and quarter. forward much very This everyone concludes joining And everyone. we for couple Thank you and of this to want call talk in thank not, look safe, again holiday you next Well, the you. season, over following days. we our late you a will

Operator

concluded. for conference today's now presentation. The attending has Thank you

You may disconnect. now

Universal Technical Institute (UTI) 15 Nov 232023 Q4 Earnings call transcript