SCOTTSDALE, Ariz., Nov. 30, 2017 /PRNewswire/ — Universal Technical Institute, Inc. (NYSE: UTI), the leading provider of transportation technician training, reported financial results for the fiscal 2017 fourth quarter and full year ended September 30, 2017.
Kim McWaters, UTI’s President and Chief Executive Officer, stated, “Fiscal 2017 marked a year of significant progress and change as UTI continues its transformation effort. As forecasted, we grew student starts in the second half of fiscal 2017. Despite the Florida, Texas, and Puerto Rico hurricanes negatively impacting starts in the fourth quarter, we started as many new students this quarter as we did in the same period last year. We continue working to build our new student pipeline going into fiscal 2018, both in our traditional programs as well as in our newly launched Welding and CNC machining programs. These new offerings address the growing demand for skilled technicians while serving as an integral element of our footprint rationalization efforts. Finally, we successfully implemented our Financial Improvement Plan, which resulted in $39.7 million in cost savings for fiscal 2017 compared to fiscal 2016, substantially reduced our net loss, and drove EBITDA to $17.9 million compared to $0.8 million for fiscal 2016.”
Financial Results for the Three-Month Period Ended September 30: 2017 Compared to 2016
Revenues for the quarter were $81.3 million, compared to $86.9 million for the prior year period. Revenues exclude tuition related to students participating in the company’s proprietary loan program, which were $2.9 million and $4.2 million for the fourth fiscal quarter of 2017 and 2016, respectively. The year-over-year revenue variance was attributable to an 8.5% decrease in UTI’s average student population. Operating expenses for the quarter were $82.4 million, compared to $92.1 million for the prior year period. Operating loss for the quarter was $1.1 million, compared to $5.2 million for the prior year period. The improvement reflects the aforementioned significant cost reductions and incremental operating income of $0.9 million from the Long Beach campus, which opened in August 2015. Income tax benefit was $0.3 million for the quarter, compared to an income tax expense of $2.5 million for the prior year period. Net loss for the quarter was $0.8 million, compared to a net loss of $8.9 million for the prior year period. Net loss available for distribution to common shareholders was $2.1 million, or $0.08 per diluted share, compared to $10.3 million, or