Universal Technical Institute, Inc. (UTI) saw its loss widen to $1.72 million, or $0.12 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.68 million, or $0.07 a share.
Revenue during the quarter dropped 6.23 percent to $84.18 million from $89.77 million in the previous year period. Gross margin for the quarter contracted 71 basis points over the previous year period to 43.98 percent. Operating margin for the quarter period stood at positive 1.65 percent as compared to a negative 2.44 percent for the previous year period.
Operating income for the quarter was $1.39 million, compared with an operating loss of $2.19 million in the previous year period.
Kim McWaters, UTI's chairman and chief executive officer, stated: "During the fiscal first quarter, we made significant progress implementing our financial improvement plan and achieving $1.4 million in operating income. We streamlined our cost structure and are currently on track to save over $30 million annually. Additionally, our Long Beach campus continued to meet our performance expectations demonstrating the success of our smaller campus strategy."
Operating cash flow remains negative
Universal Technical Institute, Inc. has spent $17.40 million cash to meet operating activities during the quarter as against cash outgo of $3.55 million in the last year period.
Cash flow from investing activities was $1.43 million for the quarter, down 81.37 percent or $6.26 million, when compared with the last year period.
The company has spent $0.22 million cash to carry out financing activities during the quarter as against cash outgo of $1.14 million in the last year period.
Cash and cash equivalents stood at $102.86 million as on Dec. 31, 2016, up 217.05 percent or $70.42 million from $32.44 million on Dec. 31, 2015.
Working capital increases sharply
Universal Technical Institute, Inc. has recorded an increase in the working capital over the last year. It stood at $66.44 million as at Dec. 31, 2016, up 371.51 percent or $52.35 million from $14.09 million on Dec. 31, 2015. Current ratio was at 1.80 as on Dec. 31, 2016, up from 1.16 on Dec. 31, 2015.
Days sales outstanding went down to 18 days for the quarter compared with 23 days for the same period last year.
Debt comes down marginally
Universal Technical Institute, Inc. has recorded a decline in total debt over the last one year. It stood at $43.84 million as on Dec. 31, 2016, down 1.75 percent or $0.78 million from $44.62 million on Dec. 31, 2015. Total debt was 15.54 percent of total assets as on Dec. 31, 2016, compared with 16.83 percent on Dec. 31, 2015. Debt to equity ratio was at 0.33 as on Dec. 31, 2016, down from 0.40 as on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
