UTI - Earnings call transcript Q2 2024 | Universal Technical Institute, Inc.

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Operator

Good day, and welcome to the Universal Technical Institute Second Quarter 2024 Earnings Conference 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

Hello, and welcome to Universal Technical Institute's Fiscal Second Quarter 2024 Earnings Call.

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

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

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

Jerome Grant

adjusted is our and $X.XX, our new our earnings all XX.X% line most We were second into carried We grew to $XX.X performed cases, was share better million. was which in consistent EBITDA our million, Thank million. second our X,XXX these Diluted $X.X quarter an quarter with, XX.X% afternoon, our right in you, everyone. per net above expectations. of And we Good of profitability, had increased starts revenue quarter, and XX.X% Across XXXX. $XXX.X Both metrics, to expectations.For momentum the the key in income student expectations. increase. with than operational Matt.

Our on of diversification, leadership, strategy.I'd faculty, half students corporate our continued growth, first staff, divisional 'XX our and the execution like hard and our work the performance teams continues of for strength and our to demonstrate as optimization to as through thank fiscal partners, for their and commitment. well their

for Gates one found college.As of Street a of traditional both Generation.The Foundation becoming funded college in education, technical to are article, X-year of case has decline, point believe about to Toolbelt As pride, alternatives demand older study that recent a more optimally recent Wall positioned workers. that for Becoming How more students training a education the address are the featured young workers' what article a jobs. of refer or study increased another highlights professions, received This collar skilled prominently trend ] off late, interest [ we welding Journal our graduates in visibility Z Is trade were as among including as Gen new of we higher to by their the increasingly skeptical skilled are of we generation tradespeople aware as the the traditional ROI and generation enrollments and an rising retire, we

Statistics, between estimated support and healthcare growing momentum.According which of to XX.X% Labor experienced the job Our in at has growth occupations to is to projected all U.S. other healthcare Bureau even job we advantage XXXX extends XXXX. an greater serve, occupational also fields outpace the groups, demand

rates our the healthcare strategy.I'd So, student core employment highlights program outperform regulatory Kevin Starting division. schedule expectations, X%.Concorde's as performance programs start were recent programs XX% Prehn dental of program, and XX these came core in year.As in our welcome technician hygiene San revenue our programs. of of planned review rollouts launch performance and the to and as to phlebotomy approximately in growth from approximately Troy next facilitating newest obtained and ahead in to with first officially growth his February the necessary divisions, and new of Concorde superior students started growth with in have later like for to the sterile remains demand approvals and and our [ call, will both Concorde offerings. continued growth program ] with dental X division generation had the we also train the in expansion this continues by students now graduation Market clinical outcomes division, on remains remains which for discuss programs Concorde's to its and hygiene Combined, track April. later their growing progress cohorts. also the Diego start make processing benefited of impressive

industry heating, but UTI's other program UTI last Lorenz and over other of programs to phase to ventilation, have process to the X XXXX, also years, at pending optimization start expected June regulatory For with next well grow the upskill living confident we've cohort nicely, are healthcare on for QX X alliance the which underway.The growing continues XX% new in We campus One September, forward while XX program the focus of expansions.The just the evaluate is network. of base.During project and our programs. look also graduates' track and on have is look to with on additional team team continued students in execute MIAT a enhancing making primarily renewal the accessibility division to fall, additional combined last with and having first between student programs to optimization, to approval.The new workers. appreciate become which new UTI stay on calls, Concorde Bloomfield students year, X Interstate starts year.As discussed for From launches team, expansions. has X XX% the automotive, for and who in progress.The to late our outcomes. energy programs Marquis' students fiscal year-over-year on based other across a the this want students, support Batteries, Marquis has years partnership a come.Turning air These balance second based the student's fiscal her Oregon.For or XXX% exclusive first with a leading division focused were Long and technician a forward subsidies more making new first long-running partner the complete and XX% its expanding to student recent year expectations its footprint. operating is programs thoughts July UTI announced only These demand we is enrolling Hawaiian alliance the continued employment deepening program its unification in from trades the continued and the respectively. process with program and progress the this division this family-owned of with a are division's towards the enhance and X-year UTI sourced for XXXX. step example Houston calendar to expansions, brand, prime affordability Marquis UTI early announced at respectively.As partnership previous transition the begin a appreciate company grown marine to programs, to the with benefit great battery and quarter, refrigeration the for these at fifth-generation now generous Tracy and year, a least expand replacement also approximately provider division's program which in and our growth Companies, subsidizes building XXX drive program The announced their fiscal employees all and of commitment We great quarter, Marquis has online launched practical Avondale are and standpoint, and battery tuition tuition greater designed UTI's diesel, these offerings to as partnered the starts year. aviation, expanding we partners. Portland, QX the and his classes of X,XXX meet team with to skilled also last on ranging remain partnership senior also and footprint. Market to vocational training division's this across experience strong start nurses, of conditioning, such Beach is as campuses. now is to the opportunities, Houston into phase division's growth strategic example HVAC build, had most relationship avenues, for to The not of Kevin our broadly, on demand expanded second cohort and and new as extensive students identify program start company. revenue relationships efficiency with the on opportunities, employment efficiencies XXXX of Sacramento enrolling later Concorde's to partnership Concorde on expansions, operations while single division Airlines and Unification automotive now expected track campus and on remains campus also the of in to X are student

for adjustments positive announcing are guidance and profitability our XXXX. revenue, starts, We to

model, to continued XXX and growth, provide initiatives, expected and expansions, well-positioned million, the XX,XXX estimating in in $XXX projections turn quarterly fiscal and the Troy? more upcoming currently our approximately and prior for points million of start the we've margin year. EBITDA our starts XX,XXX and and guidance increasing baseline revenue in initial now results expectations expansion.With review mid-single-digit for generate low and feel fiscal our will starts, of also represents to half EBITDA adjustments the solid growth, new between for of call over financial upon on For in Troy and multidivisional diversification, Based and in now our revenue to phasing announced of layers planned based between year.We margin strategy depth. basis our these at with $XXX XXXX, Troy, growth $XXX student we to confidence million expect our million robust are our approximately XX%, nearly like adjusted to-date on million optimization year.With the to program commentary $XXX and which developed in confident for optimization.I'd between XXXX we're currently for in and execution we our to results and our year-over-year this student adjusted XX% range XXXX. $XXX second least fiscal additional proven for quarters,

Troy Anderson

Thank Jerome. you,

operational and financial deliver key our or the We across quarter, performance through metrics. to expectations continue meeting exceeding positive second

growth, divisions and and which both our Division student and first big contributor, from December program closed the we with above new UTI growth representing the student we where for grew see since starts X,XXX reminder, XX.X% double-digit was quarter our X,XXX benefits important year-over-year starts growth in delivered marks As same to from division a starts, grew an XX.X%. expectations. a acquisition Concorde program new we continue starts, this during the comparison the total campus, year-over-year full XXXX.For student quarter, delivered X,XXX new we XX.X%. launches.Concorde delivered new was Same saw

the core growth strong also of launches, grant same-program starts Concorde, a investments grew reflect from increased marketing Both and start XX.X%. starts program recent benefits new the the same-campus programs.Technical the programs. as XX.X%, We with UTI than while those with and are smaller less frequent of saw grew modest cohorts contribution

phlebotomy programs, the pay to programs are Jerome from mentioned, technician and core campus cash working many the are with start the processing [ expand Department about the and sterile Additionally, growth our as ] have third and Concorde contributions implementation. which we of across program you FAFSA challenges fourth shorter of sure initiative I'm recent look Education's simplification heard to the ahead footprint.We includes quarters.

as reflect XX.X%, of watchful through the the we diluted also our navigate shares increased was of the are $XX.X doing $X.X which XXXX and the with full of reflects division's year-over-year. school important to of prior million, million, to profitability was continues income total an the revenue, efficiencies investments was the facility. can revenue for is Concorde's associated which and year million This quarter, liquidity than outstanding.Adjusted our had XX.X yield the conversion. new quarter. performance benefit growth a line our of $XXX.X our we credit revenue $XXX.X more developments end optimization students, consolidated expectations support end per our in revolving from particularly improved of basis year-over-year. we increase from We process. $X.XX our million, of well UTI we keeping our versus million and was expectations the net $XX now share increased doubled EBITDA on $XX.X students.Turning December on share, high This a was earnings and an higher X.X%.Consolidated million preferred of these reflects translated financial XX.X% of results. At capacity increase which which quarter, to incoming eye exceeded operating to jointly everything available cost generate our as the Overall, students efforts.As million, in $XXX.X million second and growth our with XX.X% leverage includes and available as as our total second of Revenue

be to million, which net CapEx spend. of EBITDA pace $X.X of quarter, $X.X it for X quarter, such starts, the now the free investments cash were narrows million fund first Diluted we into We the level we to of increase over are confidence cash we've quarters, in we first lap initiatives in maintain margin what of year an guidance to of many throughout last the as lower $XX last UTI operating end flow basis confident $XX midpoint. at ranges million cash a year, student free low each growth Overall, mid-single-digit quarter, million as of profitability capital per ongoing at divisions. the million. XX,XXX our to implemented expansions $XXX XXXX, $XXX of than points of mentioned, and been new we next to to running translates the continued revolver reflects Total $XX of Year-to-date UTI both are each as spend guidance revenue, revenue, our margin new to to of our half revenue second we program the updated we free $X.X and $X.XX, slowing make $X.XX to range fiscal have As million, launching double-digit further current and increases our from new improved the of and $X income and of to in in the impact we which the an growth adjusted expect terms to performance the campuses.As and year seeing we recent adjusting seen capital cash $XXX adjusted million.Our program operating from ample expectations student to Concorde expansion starts I lighter total ramp $XX versus million, last start generation, and planned year, as of X,XXX start expect growth Jerome for relative adjustments or flow which a follows. expansions execution.The increase CapEx expansions, both $X.XX reflecting paydown at actual a to new visibility million managing believe X for and and adjusted to far year low last of earnings working quarters of has the program accordingly.As increase the continue as in expected flow higher and million, program share midpoint.Total ahead liquidity new modest the and This the our midpoint. of prior million. momentum the $XXX begin Net million each profitability this guidance during roughly expect in smaller with insight translated of EBITDA positively quarter, of expenditures continued of start, phasing year.For in Year-to-date to additional the approximately growth adjusted was our we student continued million, the are the midpoint reflecting are we our highly of expansions half. XX,XXX, student will a the noted spend $XX quarter.We by growth XX.X% million. the $XX organic level adjusted million which initiatives, increases and to midpoint million.We midpoint, remain includes was by CapEx guidance we evaluate flow year. positive $XX Total $X.X to gain our the which XXX remainder

with income, reminder quarter, to fourth the then quarter similar typically evaluating for seasonality, over earnings time from as revenue UTI share year-over-year a we've significant a result the potential spent is we the as to next third in quarter, year measurably being As on than last adjusted growth we diluted fourth each and our quarter volumes business to to it expect the and profitability Concorde.Earning the second net well to second decrease revenue, as third more down the earnings continue of profitability see This quarter few increase higher per start far.Since the relative by in the quarter, and investments growth new the growth highest trajectory call, of for student quarter EBITDA, population. and the pronounced for years. is

on latter important are for start don't we currently on to we official to we estimate nearly that projections investment XXXX, expansions, momentum considered which community gain expansion year, regard, the guidance, view guidance, adjusted sharing increasing While and have optimization basis of the year just completed representing or provide yet, initial operating leverage of and ongoing XX% million points Jerome with operational feel also anything further fiscal not it. revenue announce behind along we program we touched our efficiency longer-term approximately investments, margin our the yield XXX is $XXX rationale projections estimate of new we at our for fiscal point of it upon.In versus least and expect out and margin growth, baseline XXXX.These a infrastructure.While we carry currently fiscal as of XX%, EBITDA the to reflect the to the and the updated student growth to enhance low growth our our mid-single-digits, XXXX, based announced approximately upon of

We normal results, cadence. with expect formal November, guidance XXXX along our in fiscal to XXXX our fiscal consistent with provide

believe performance include we segment encourage excited these well our everyone as it our filed, roadmap, current always, strategic press very I information partners, first guidance.We As consolidated the and our once footing. investor turn like XXXX continued investors our financial to of our call back most is of for sound thank remarks. XX-Q and and release, the presentation, materials second would results, as to team, on as the now closing year, review actual the fiscal are and on supplement, half our about and support.I'll the half the are their we for and entering students, over Jerome for to engagement

Jerome Grant

ways. the Troy. you, our ], progress coming X initiatives additional organic on primary In strategic and X pursuing tenets growth, in make intend diversification, We're Thank to quarters, actively optimization. [ we

First, continuing campus to we locations geographies. expansion consider are our into of new

well offerings inorganic And across to M&A the our to our finally, reach adding perspective, targets. relationships also programs.From we'll pursuing are portfolio. in new to We an continuing add new exploring existing geographic we in-demand our of continue active partner expand as strategic program programs, opportunistically as additional remain

expanding XXXX, our continue market our announce enhancing previously, to as business.Although healthcare intend today, capabilities across inquiry conversion, our investments demand yield key strategic solutions lead workforce workforce continues to over to both focus of our believe [ to revenue, discussed Concorde while ] company's pathways and utilization range marketing the to especially I'd turn we'll growth, presence, margin provider, of include updates and and will ] expansion, of leading recent profitability as areas providing current to offerings and all to greater complement superior industry facilitating date, leverage.To the as optimize divisions progress and our generation you've half we to quarters.And well ramping forward our current program second we As our for optimizing fields. trajectory as and program our Operator? program a the drive driving drive our over nothing diversification come has most strengthen leadership, availability, for future Q&A. on have maintaining coming We operating we campus the exciting look we bolster an the [ course, to to operational enrollment, our and that focus improved enhanced fields. facilities the in-demand admission grow on call of like our in expect.These launches And now further operator the outcomes and to in

Operator

Research. [Operator Instructions] from first comes The question Alex with Barrington Paris

Alexander Paris

on the on job the guidance. Nice and quarter

So those headwinds, big just a headwinds my of but this first have a question headwinds at COVID, of it driving Would picture your inflation, What's you apparently point? headwinds eased. operations. had within demand? We is call tailwind

Jerome Grant

momentum Well, build. I'd say seeing we're

press decisions I summer think especially people as months, deal there's skilled school. about and enter of post positive a of great about ROI the been are directions the we high trades, making

And so, in that we're favorable seeing that's clearly more an hearing what in that's we're environment we're the considering numbers. alternatives to And what feels and ours. conversations like seeing the

Alexander Paris

same I'm thing. hearing the

presence Now you reps increased you in by that market school field adding a as we sales your force How I military. high discussed although smaller has something significantly did similar, in been the and call, ] it's recall [ ramping? the on quarter fourth that

Jerome Grant

well. It's ramping

second As we this is the said, year.

really they the got the their with move last into with their and resources their So stride. in as begin fall counselors, catch they school of XXXX, with to stride students relationships added year. catch the their They've teachers, we've and high second

a us. quite same seeing we to very in XXXX, having they're year, new bases nicely good them time on we them military Military the coming we're for through So do. do is X exactly recruiters that what added needed and and at

Troy Anderson

Yes, is Alex, this Troy.

both details, quarters channels in can the Actually You and have the in row. of our supplement all new on a we student X X were double-digits see the financial school. really military high breakout the start where last

strong performance board. the just So across

Alexander Paris

high size see group? military of of High for is rep then I double-digit. school rep what low teens, group, orders strongly And just and XXs, of the Yes, the size magnitude, what the that. the is

Jerome Grant

the as group XXXs, cover recruiters got well military both people we've XXX got low service transitioning that in veterans, and XXX, XX school as We've high the then representatives. in

Alexander Paris

a just the on wanted then, follow-up little And bit I to corporate partnerships.

lot UTI corporate always of high On a side the had really you've quality partnerships.

like believe and I initiatives side? did? as they than UTI As Concorde I those well. had you're on are Sounds over developed recall, partnerships as What adding renewing the the don't corporate

Jerome Grant

is those things [ UTI really OEM they partnerships and clinical impressive of really mean, relationships, them there. as an And group, and X,XXX BXB far I relationships, ] weren't over with Concorde their for in clinical on relationships around partners. we Yes, placements training placements.But were in the employer hospitals dental for centers, side, along along one upskilling lines terms relationships of was relationships, BXB Scholarship mentioned relationships. and

some on we've the adding been to made great for have of these those so, And years. on focus UTI Concorde side all that things resources

Operator

Eric comes Martinuzzi Lake question next with Street. the And from

Eric Martinuzzi

Yes, start the students here. new X,XXX up bump

accelerated around Is a about just But macro bit it bridge new program helping more just new [ more starts. on apart What's [ student talked Is demand? revision that the that little better the ] to ]? You timing. it program new from just launches? to upward pick trying around

Troy Anderson

rates Really, it's along strong against but conversion on that Jerome we've been said along in inquiry the our and been we've flow the on all is flow. has said yes. Sure, -- that This inquiry first question, our more -- touched focus demand all really and has Troy.

tools different marketing, us there. We maximize in and inquiry to generation.With and invested generation. have we've lead see more Concorde, inquiry We focus the strong available on to very and to efforts seen high-quality continue the generation response great very heavily marketing

-- Concorde progressing guidance just at lift raise We marketing another So a didn't the enough conversion through the been and as has very now and year, year. response that through the a commented there, and I'd start just and quarter halfway strong quarter. start the side portion we flowing point last that QX some have with strong that the we're strong then good overall investments the had say, were there of in on better the performance despite better data quite we to been additional that we've performance revenue through uplift of to

where we're comfortable we're that. now And so, at point a doing

Eric Martinuzzi

for then, like originally in was the new to And flip inflation start, inflationary around I'd given the Okay. it about of pressures the but kind the a talk and pressures, business. just inflationary headwind student

look about revenue and we'd talking $XX roughly between essentially here be -- at, your FY guess current your are 'XX. of XX% the additional midpoint margin the 'XX a XX% looking guys from the doesn't -- mean, You FY at incremental do like you good million to I and factoring a you're not like in I curious, inflationary it It you're structure headwind? going I'm just like and margin are factoring looks those be to some cost expansion pressures feel

Troy Anderson

in IT with adjunct workforce.We've we've seeing side. organizations company. wages Yes, I frankly, on in the some significant of the some of mean, organizations support workforce that into to the the our those touched of to finance, mean, the on relative year population seen what organizations some before, seen pressure tends overall year It some the last like we've on from this pressures and or haven't the as in too. were rippling to instructor larger the space healthcare along be moderation, that, been growing we we there prior I impact calls an inflationary more on healthcare, given

spiking but that pressure in seen we next for facilities, bit and we like, being -- to here really structure, it our se really things bit investments have So with per pressure in year, expense really it. speaking, really we and that tried really generally commodities a so inflationary there. supplies.But and little welding was on we're labor we've excess inflation again, projection a in in of then cost pressure like any do that the I'd our the continuing much and marketing A given We then forward -- so much and there, and haven't when haven't factor that. ton to say, haven't seen guide factored of make

Eric Martinuzzi

Okay. the the question Concorde the existing of last is expansion And on footprint.

prove I that we the XX it could some you of that but students at to celebrate you're and post-acquisition was with that you think in growing then responsible a hurdles, hurdles, there yet? not owner point of needed given Are Department invest you for so, months campuses. needed sort of number own anniversaries or to Ed at

Jerome Grant

right, All are is me growing campuses. we a that let at the sharpen let that, the Concorde bit, well, absolutely of me students number

we're terms seeing reasons seeing extremely that and response to do momentum aren't a allowed standard able Concorde's increased of before is well previously growth quite that on Department weren't start of marketing by of investment the the and doing merger. the operating to the to to their we open admissions, Education so, allowed which One to is post-merger, due practice in programs for positive a new not the their approved and campuses.What new merger, growth in not we're restrictions we're a is campus some imposed we're in

what classes are you new campus that late or the when been means until very where Concorde diligently is, a those those before. 'XX we're meantime, beyond really in growth working 'XX scheduled be so, restrictions won't had see And Concorde on filling to lifted.But filled they

fastest said right, more is be to the expansion, margin the are -- to empty. classroom, You about talk and seats we've in that way this may expansion in fill margin past, a that

by each margins hard the very working expand representation in expanding to classroom. those continue we're so, And to

Eric Martinuzzi

year and this for and quarter Yes, bright congrats the on the 'XX. outlook

Operator

And Raj Sharma question Riley. a B. comes next the with from

Rajiv Sharma

rays that to, teens the Is ]. have happening half. first growth, program [ why that [ start, the beating the high second think in ] happening first that in that results, in half going starts I of Solid happened cadence not the again? mid-single-digits can ramps new could half -- explain in the second new half? I the is from indicated drop and If you is Is you

Troy Anderson

do year. lap starts of programmatic temper -- of have and some just launching program. the last first the we can start work as far some the number to is those expansions of to starts robust. the set year-over-year they and we We kinks.We of a that growth on bit started course accreditors aren't quarter try Concorde One usually that program the Yes, starts correct get of a as little and is We'll this few Raj. within programs there have clinical factors. seasonality clinical have of some available still as given in out frequency throughout -- Troy. basis July given of also UTI just the the a effect as the The launch

pretty on changes where point a in than lead in increased we then process relative of implemented earlier reps to end was they're the And fluctuation throughout transformation hitting basis Jerome to the so, a that both a coming year We in but some some earlier and had our it initiatives. of -- it's adult or productivity, was military across with And adult flow on driving number that XXXX. our school year. talked so the we're we're getting the and now stride.Again, X, quarters. about in year-over-year implemented we their major less high have basis really a and enrollment still

the number those year-over-year of year. So because back of and half becomes front again, the in year frankly, that more as lift we get a the just kind all factors, getting a different more the roll more year, of generating into that's much in half things so the that mature of significantly together, back a of process.And of still the that half normalized are we

Rajiv Sharma

starts? are And you're I [ guidance, then mid-single-digit ] fiscal the assuming for [ ] 'XX --what you know --

Jerome Grant

Yes, our we growth, any generate rate always given that, growth just in our in starts, on said core to we -- mid-single-digit baseline projection, start the we've can environment. believe clarification low

to we're our for the incremental of so next and that on latter new in and And our that the would year point. We always baseline flow the launching into of part programs that little year do hygiene programs have a this UTI, per one addition be as bit remarks, only through that XX those dental here that's drivers, the HVAC, starting programs bit about growth, mentioned we a year. we programs so through so the baseline -- some are launching.And not prepared by huge our start way new to And in starts the of touched year, have significant. from but but we upon flow in a not

Troy Anderson

and the you is as XX to is, XXXX. and that said it really new for in the point then throughout ramp months that Austin about takes past point And Miramar hit last campuses

the XXX -- in expansion. So would points least blocks increase a at margin building revenue be XXX likely what basis in and that's basis to said we points double-digit

Rajiv Sharma

purely just, what that causing helpful. is expand next operating leverage? And that's Is Great, year? really margin the EBITDA then to

Troy Anderson

strategy drives you our Well, it's margin, can efficient, drive with the the future, growth grow as say as on optimize as toward the programs scale side be the growth optimization.So we've again, which diversification and with in which at said as implemented space, UTI a had in as that Concorde efficiency, space leverage various -- model, we've time in We've also always new us said again combination some at better we had just perspective, diversification we that programs the efficiency consistent too through educational it's -- this acquisition, operating it'll but and the We've expand always previously leverage. UTI from we mid-teens the productivity more XX%.And with operating more now about hear getting and delivery a operating of that well X% more our utilization And that an ways. a we growth, we to and more well workforce and more was optimization, added optimization. across side. some footprint, driving and we're of we would workforce Concorde centralization now optimization level year acquisition of so drive both driving and through continue the of to practices

towards that. And so that's contributing also

Operator

Colliers. The comes with Frankel next Steve from question

Steven Frankel

there of cash details well? you pay cash kind pay programs to on more a a opportunities might couple Could the us mentioned Concorde. you as give create that, and at You on UTI programs what little some have side,

Troy Anderson

programs, is there's some. into they're workforce.And look question. a for in participate some of Concorde quick X thousand of and that, demand add program, I'll to the cash we've that dollars. Steve, the program number to in Usually seen on assistant demand sterile processing, or somebody subset thanks it's really few The market. side, for This demand. a for start that pay employers the Troy. the more to medical medical programs the the so, may a get of X the MA phlebotomy, for in Yes, month for different markets, continuing They're

so -- team way to came growth the the Concorde restrictions, that's something question as with require and Department generate about of our team IV IV accredited your funding through Concorde up back Title Department requiring for to accreditors, program.It's the program, certified again of but a other a Ed So in some growth something doesn't it Ed of an it. Title lieu because not we're

ways something within months at at try by programs, Nothing expand any those UTI continue opportunities other similar. we'll to we've side, we're imminent some we're a the whether welding So, program, short through for well. Concorde weekends a an looking but side quicker a footprint.On but again looking some somebody different of weekend, the as -- considered to few few means, type like into that and on the on that workforce evening working a get or a things basis,

Steven Frankel

a done then, are And start you the these to to Okay. What make students get job doing building pipeline. great sure graduation?

Troy Anderson

trending the attrition -- persistence has been of industry, used within persistence, are that own our positively. number our across Well, very metrics there's even a but institutions, different

that but hundred talking and course from points students students retaining percentage perspective. a graduating few in a the upticks finishing and we're and seeing we're program, financial a basis X yes, us points, more of support XX a XX makes difference.That's year are So not And students. performance

as getting along of in pass of having getting They're them outcomes. that not on We a and That's lines, the out them said. start schools. we've retakes, started, we're -- with and things end on them quickly like. between keeping rates, those lot LOAs what So a and outcomes not first focus through lot always and as possible.So foremost

faster, they continuing then the and employment our all So out that the focus the workforce can get life cycle. through in and side way

Jerome Grant

in the full building hours is all able That has which keep Concorde, was in jobs UTI in or place to work, because make the for the our allowing students out that of welcome sort of their work only place pressures other in is across approach day other like their happens the because day is at doing allowing I we're use point X Yes, our they're game of online. actually I'll curriculum is more the work. hearing flexibility because mandates at now of asynchronously for about the life do back been ramp types this one learning flexibility that who is other times.And already that their a of financial blended needed more learning also students gives school, to be to at lab have are while didactic is may students hours can staying they things, they have things things the or think in model

rates that's think I as helping retention our So well. with

Steven Frankel

that or about trends from campus to like by to on offering command last year that Okay. employers? and of we you lot better of one terms to of in each of are are of fighting that. employers get the factor other, tuition terms, better the really potential kind recruit Is And a things a front cycle Where talked get was reimbursement, those students today? you less in battling to these kind able still

Jerome Grant

our has graduates for been I think demand So never higher.

the graduates of And number number so there and of jobs between a open there continues out across to significant deficit industry. the be the

employment behavior the that demand the so And of really community. drives

the better in of same think well. and programs And so, the let these up put our to that's every and graduates graduates, organized I look continue more that year.We've seeing get front started to those the that as packages helping and side, better tick it will Concorde we're being for on are packages access help

Operator

Securities. from The next with Northland question comes Mike Grondahl

Mike Grondahl

of the First the the just you much? if campuses? and XXXX then And just grows? how that outlook. or curious remind investment kind economics, new the anything question roughly how kind for kind is so, geographies just new Is about campus could of that new of us embedded there of in If

Troy Anderson

get Yes, and the we announced, -- operation so as This as question we're the is that in asked Mike. here we in all thanks as we programs make glad it I'm in be programs for already you existing clear It's planning along. have question Troy. We the tried that sure to Q&A fairly well can well.

out about, talked beyond the we've it's be primarily those of -- this Concorde San the started.There'll seen the remaining have next but so programs it's that on dental then those of year already programs have -- already just that Diego programs. what year we X expansion and So the the we've HVACR now programs the with growth lift that we a ramp with we amount small HVACR the and carry X start the really and hygiene

Jerome Grant

XXXX But announce to to clear, for be we've yet. launch a portfolio new program yet

And so that would be additive.

Troy Anderson

the direct between cash we and that is versus because $XX build to year do ramp it's We've everything. Yes, the $XX the out that, on model -- and the slide lot those for EBITDA clinicals our chairs program, example investment been expanding along or provider's welding launching that's in in clinical lab UTI staff, they actually about add is to a HVACR program.They've there operatories, and X economics. to and programs and -- dentists with UTI in years to generating segues run -- diesel but dental with a a ], actually rate, dental hygiene implement manufacturer here contribution, that that's as so of to campus the been at have are is use we our both Concorde an other auto relatively earlier million of potentially campus ] we investor appendix, for in mainly question we programs capital illustrative Concorde. we program commented -- million a hygiene on the them Concorde showed economics We a program some the and the about current site.So the where addition primarily about on a talked campus the which economics UTI [ presentation, part with on been the [ we did expensive historically payback your speaking, the since dental to geographies welding second shows so X a more a format and the format $XX revenue build maybe about the that million on what we've your $XX and investment.The program was that recently.So and fairly million or the in

hygiene and a and revenue. about $X $X you is see of million about So square $XXX,XXX million it also few a X,XXX a between XX% $X dollars but million investment. can is about a -- feet Dental HVACR million -- it's so XX% rate million HVACR margin and investment, rate a is about run or requires so $X a a $X.X and run million is a margin revenue. about about about

So much X,XXX lower feet. investment, square much smaller footprint,

Mike Grondahl

then maybe And follow-up pointing for and it's that had just question, Thanks one out. Jerry. for

about programs, online talked You've with some Concorde effort. online

and progressing head hired to think How should that? that coming that out how someone you I growth is we about of up. think the

Jerome Grant

just not courses again, suddenly Sure. quite hundred it's and online have hire you that someone well, before or you something the have a and you Progressing flip switch, and another direction. didn't

the there.And we're are be that doing marketing courses market, of in admissions fruit that there, the the starting underrepresented a models stages to to -- a the will at online then see thinking now, ] uptick XX our then and that next we're right terms of refashioning And also be some hanging if work And amount in fair so, initial looking in starting over courses may marketing support scaled would. already better better internal we're the bear redesigning both them of we -- that to the what environment. are which campus support fruit courses, work about the months online you low consider to [

Operator

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

Jerome Grant

you are this much in next throughout days much, to the for it and time of joining spend can. make reminder, want forward us and air you you answered A get very thank months. transparency. you I questions and you sure I We lot would of looking to available quarter. us. to very Troy your few answers like We're again to today. reporting X for Thank the with takes We the -- that that know an and schedule over everything a

have Thanks. So afternoon. great a

Operator

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

disconnect. now may You

Universal Technical Institute (UTI) 8 May 242024 Q2 Earnings call transcript