Universal Technical Institute Inc (UTI) Surpasses Fiscal Year 2023 Guidance with Strong Revenue ...
Universal Technical Institute Inc (NYSE:UTI) reports significant revenue increase and surpasses key financial metrics for FY 2023.
Full year revenue reached $607.4 million, with a net income of $12.3 million and adjusted net income of $22.3 million.
Fiscal 2024 outlook anticipates revenue between $705 to $715 million and adjusted EBITDA of $98 to $102 million.
On November 15, 2023, Universal Technical Institute Inc (NYSE:UTI) released its 8-K filing, announcing its financial results for the fiscal year 2023 and the fourth quarter ended September 30, 2023. The company, a leading provider of transportation, skilled trades, and healthcare education programs, has reported a robust financial performance, surpassing its fiscal year 2023 guidance ranges across all key financial metrics.
Fiscal Year 2023 Performance Highlights
UTI's full year revenue amounted to $607.4 million, with its segments UTI and Concorde contributing $429.3 million and $178.1 million, respectively. The company achieved a full year net income of $12.3 million, while the adjusted net income stood at $22.3 million. The adjusted EBITDA for the year was reported at $64.2 million. Total new student starts for the year reached 22,613, with UTI's new student starts growing by 6.0% year-over-year.
Fourth Quarter Financials
For the fourth quarter, revenues increased by 53.9% to $170.3 million, primarily due to the contribution from the acquired Concorde segment. Operating expenses rose by 49.3% to $160.0 million, again largely attributed to Concorde. Operating income for the quarter was $10.3 million, and net income was $6.7 million, with adjusted net income at $8.4 million. Basic and diluted earnings per share (EPS) were reported at $0.10.
Balance Sheet and Liquidity
As of September 30, 2023, UTI's total available liquidity was $159.7 million, including $8.2 million available from the revolving credit facility. Total debt stood at $162.1 million, while net debt was $10.6 million. The company incurred $56.7 million of cash capital expenditures for the fiscal year 2023.
Looking Ahead: Fiscal 2024 Outlook
UTI's CEO, Jerome Grant, expressed confidence in the company's growth and diversification strategy, which is expected to continue into fiscal 2024. The company has established fiscal 2024 full year guidance ranges, projecting revenue between $705 to $715 million and adjusted EBITDA of $98 to $102 million. CFO Troy Anderson highlighted the company's strong performance and momentum, which contributed to the success in the fourth quarter and set a solid foundation for the upcoming fiscal year.
Universal Technical Institute Inc (NYSE:UTI) has demonstrated a strong financial performance in fiscal year 2023, with significant growth in revenue and net income. The company's strategic initiatives and diversified business model have positioned it well for continued success in fiscal 2024. Investors and stakeholders can look forward to UTI's sustained growth and profitability as it continues to execute on its growth and diversification strategy.
For more detailed information on Universal Technical Institute Inc (NYSE:UTI)'s financial performance, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Universal Technical Institute Inc for further details.
This article first appeared on GuruFocus.
