Universal Technical Institute (UTI) saw its loss narrow to $8.94 million, or $0.42 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $9.82 million, or $0.41 a share. Revenue during the quarter dropped 4.12 percent to $86.92 million from $90.65 million in the previous year period. Gross margin for the quarter expanded 84 basis points over the previous year period to 44.86 percent. Operating margin for the quarter stood at negative 5.99 percent as compared to a negative 14.59 percent for the previous year period.
Operating loss for the quarter was $5.21 million, compared with an operating loss of $13.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.94 million compared with $3.98 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.08 percent for the quarter compared to 4.38 percent in the last year period.
"During 2016, UTI made great strides in our effort to return to profitability in 2017. We thoughtfully restructured the business to take out $30 million in annual expense, and raised $70 million in capital, which will help us accelerate the opening of smaller campuses patterned after our successful Dallas and Long Beach facilities, said Kim McWaters, UTI chairman, chief executive officer and president. "We know there is strong demand for our graduates and incremental value for every student we train. So, we are keenly focused on helping more students show to school and graduate. We take great pride in our students’ graduation rates, employability and long-term earnings. We are confident this year that we laid the foundation to create value for all of our key stakeholders in 2017 and beyond."
Operating cash flow declinesUniversal Technical Institute has generated cash of $7.38 million from operating activities during the year, down 10.41 percent or $0.86 million, when compared with the last year. Cash flow from investing activities was $17.35 million from investing activities during the year as against cash outgo of $2.68 million in the last year. It has incurred net capital expenditure of $10.55 million on net basis during the year, down 64.22 percent or $18.93 million from year ago.
Cash flow from financing activities was $64.88 million for the year as against cash outgo of $15.11 million in the last year period.
Cash and cash equivalents stood at $119.04 million as on Sep. 30, 2016, up 304.39 percent or $89.61 million from $29.44 million on Sep. 30, 2015.
Working capital increases sharply
Universal Technical Institute has recorded an increase in the working capital over the last year. It stood at $67.39 million as at Sep. 30, 2016, up 482.80 percent or $55.83 million from $11.56 million on Sep. 30, 2015. Current ratio was at 1.71 as on Sep. 30, 2016, up from 1.12 on Sep. 30, 2015.
Debt comes down marginally
Universal Technical Institute has recorded a decline in total debt over the last one year. It stood at $44.05 million as on Sep. 30, 2016, down 1.64 percent or $0.74 million from $44.79 million on Sep. 30, 2015. Total debt was 14.83 percent of total assets as on Sep. 30, 2016, compared with 16.33 percent on Sep. 30, 2015. Debt to equity ratio was at 0.32 as on Sep. 30, 2016, down from 0.39 as on Sep. 30, 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
