Universal Technical Institute (UTI) 7 Feb 242024 Q1 Earnings call transcript

Good day, and welcome to the Universal Technical Institute's First Quarter 2024 Earnings Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [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. ahead. go Please

to Earnings welcome Institute's First Fiscal Hello, Universal XXXX Call. Quarter and Technical

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

your SEC. of investor release and presentation Following the be our archived this we earnings remarks, Investor will at its questions. Relations furnished investor.uti.edu, the for with section call, our our today of website A to issued and will transcript earlier on the replay our prepared call open along

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

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

Thank you, Matt. Good afternoon, everyone.

into revenue These quarter deeper some exceed XXXX which financial Troy was and line expectations. impressive these EBITDA. in continued several first momentum promises million just of to numbers. $XXX.X the XX were performance the the on past in consistency time with we Student our in which company's million into Our We in the going as $XX.X continued a our achieved results expectations. starts has over adjusted will financial right years. a with spend underscore delivered bit few minutes have XX,

objectives. this outcomes. and our growth with have diversification graduation progress made growth fiscal We company record rapid each on as we themselves also rates priding entered a maintaining superior student track year of a for robust and on division strong continued multidivisional and have employment And poised

expanding our corporate across from students commitment Concord we like is dedication the continue as division, on performance provide them faculty, support objectives and the we with excellent possible and students tireless executing Our our their teams. employment growth made thank UTI of for training industries. our by across our along staff to and opportunities and I'd the in-demand

and XXXX, with In the transaction, fully when update, allowed like Series into will the Coliseum connection A that that to effective review December I'd their Chris us to partner, Management's but director needed Capital in milestones the satisfied their continued our to appointed stock. as corporate in we support key a later investment and preferred thank for common was it Co-Founder our the would Shackelton, III to call, Troy more a outstanding fully convert partnership. we Class we Board. conditions like most Chris Coliseum stock and As highlight managing

strengthen We also corporate divisional to have continued and our leadership teams.

corporate Gild As the has both tremendous announce Concorde our Mortgage Colleges. to has Prane York to been that the this and I'm appointed I'm Exchange building last Chief leadership managing our Resource experience Human first President in our Stock listed Kevin to will she we Concorde's Company, Frank company. We month, company. the Since including Kevin continued both her contribute progressing Carolyn human the to Career reach With made and Kevin work its of goals. Kevin appointed mission, quickly very will to high division corporate and happy in the of divisional to Officer. announced Concorde potential. at confident contributions look division also and with forward that resounding team. at as helm, Carolyn appointment confident brings our a and September, I'm accepting I'm we New Finance resource proud recently organizations, America that level welcome interim fullest

quarter, care Let's both turn the In of to notable with program for our and rollouts. the our highlights continued Concorde. make each we first starting with progress performance divisions, to attention new health

in announced launched programs a respiratory sonography program first as cardiovascular past new Concorde care launched Bernardino. in Jacksonville in San and This five quarter. months to December, through demand we late sonography program health Market sonography the X in us program our and an dental Orlando online diagnostic a medical we we in launched another program hygiene in previously and As a brings program remained XXXX. therapy strong had for the programs cardiovascular fiscal

programs by we their two approvals. We regulatory other where necessary our completing hygiene also year, this progress work to have maintained launching continue towards dental

process in program Diego hygiene the our of we're our the in dental capacity San campus. addition, expanding of In

along on driving focused current remain and optimally on health also while We supporting synergy operational care and opportunities, integration and within incoming Concorde, efficiencies additional further organizational with executing students. our

have just and this The division, In our programs. starts newest and source most continued aviation, UTI campus accelerate last these for student anticipate to program starts fiscal divisional aviation XXX by now two quarters. care early UTI's QX we start offerings newest from gives with year. We're returns remained we've these the UTI planned was programs last ramp our more programs and the the the for which to in enrollments greater our XX an has steps over the from the fine-tune encouraged Demand almost the launched launch work campus, across programs student good across expanding trades recent final year. platform year-over-year We programs, combined new the Our Miramar growing the infrastructure strong progress new first health the footprint. our launches growth with making broadly in our XX towards program even programs are Significantly, growth. skilled X,XXX in we're MIIT division's pipeline. at least energy these programs

continue evaluate additional expansion We opportunities to the program in division. UTI

in help students this consolidation a brand operations support This delivery the our to Houston position track future The transition, will campuses of in through and in we campus. operating as students process of operated ventilation recently the launch the career campus in-demand that to experience beginning have and student-facing seeking UTI to over better to market through a we're conditioning also another and acquisition, education more aligning UTI a current implementing MIAT provider program transition, phase program we fiscal our early educational a to at MIAT XXXX. fully Through their expected dominant fourth early XXXX.In the be complete on the is transition year the which fiscal additional into career division's In and single educational operations fact, a streamline heating, XX in students meant started Houston We're curriculum, and we've May. transition seamless expansions for serve launch and will and in air to systems years. MIT solutions start working technical phase APAC the the fields. and our the the Houston UTI's model market, to already present, related process announced and in services to a X programs and this under expect ensure second Houston strategic plans we've programs quickly certain this careers with consolidate strengthen step standardize positive completed

outcomes core industry through prioritizing level on division program commitment diversified through our not driving industry but expanding divisions, to only and superior to quality all our in-demand also deliver our students. this our instruction. invest across We and support campuses, fields. both student Our top initiatives our offerings commitment partnerships in programs partners optimizing and In continue

allowance per its partner at SMP, products our to portion or a S&P into recently and is division automotive automotive UTI year. to premium manufactures partnership deeply campuses long-time up bark. For UTI S&P's a and and of Motor investment programs. of provide product hands-on extended the truck integrated $XX,XXX distributes that with example, our diesel are UTI and Products, Standard

the addition, will renewable In aviation a as energy, military the partnership with training recently USO. motor sports, transition known help secured careers transportation, we their to This resources personnel commonly and Service civilian to and partnership offer programs and life with in United industries. specialized Organizations,

and to will partnerships, of scanners with iTero a their experiences. the dental provide dedication their access of to scanners Converge students. our dental Jefferson week students visualization recently won Jefferson Heartland organizations Also intraoral invested future year This deep seconds. Through San the of the quality cutting-edge clinical Dental dental commitment is donated last at partners than scanners capture that announced enhanced terms XD extend hygiene one two third in patients In our for images Heartland partners Dallas at care our use enables higher nationwide, We of scholarship dentistry. the campuses.iTero handheld our state-of-the-industry innovative offerings X,XXX we our students. them And extended practices and at service the our supported patient to has technology dental nation to in this dental generous top gratitude and recently to work, of in Concorde, Dental mouth hygiene program. in health students just orthodontics that for Antonio our thousands in their XD prepares Dental, donation services and more that to using

include we and million. adjusted which revenue profitability just our and to confidence the ahead first and we XXXX raising Notably, starts broader million we also said, key trajectory program in starts. cash few from generation to and cover $XXX increasing looking set profitability these year drive guidance detail XX,XXX fiscal strategies, EBITDA expect have the expansion. focus profit to XX,XXX divisions.And more revenue revenue progress to yield launches, 'XX student conversion to between That revenue full guidance of optimization our $XXX and growth, objectives, inquiry enrollment quarter both million capital our the generation and on and in are program our optimize of and investments a growth we support in we XXXX. annual areas workforce moments. $XXX with which 'XX million operational our and XXXX, To continue and practices the our now greater strength for in cost optimize marketing will November margin continuing of strategy, continued fiscal high efficiencies, results of on and our to $XXX and facility our Now to to admissions further utilization operating both and Troy our diversification and hiring ramping continue for drive of of generate between lead our propel and updates and in

over laid financial these much from to expect progress like throughout which XXXX. make also strong drive give us past an additional call of even our to greater Our already the Troy review results. Troy? over quarter and foundation outcomes. foundation to areas student to focus turn X fiscal years, now the first I'd we to will We've the in

starts divisions. XXXX. last X, We operational our only student as as starts, as both contribution Jerome. include full month In expectations in includes as-reported again you, year's period our and growth expectations well was both total reflecting acquisition student growth pro highly grew of summarize starts unallocated costs. a improved of the Jerome most a a the performance, consistent start in Concorde division, core and continue and Concorde the few growth also the divisional in to quarters. first total an recent we basis as across XX.X% commented On see X implemented contributions XX.X%. on start past with with the program basis, the forma Concorde with same remain and year increased both our growth marketing program year-over-year new Thank growth program a can the start and lengths to results ago programs presentation, divisions. outperformed UTI be otherwise, core revenue To robust already comparisons accreditation corporate both contributions date year-over-year, The and once same-campus healthy on. from basis X,XXX from reflects consolidated we line reflects last from our year-over-year recorded with which varying expansions, with our XX.X% quarter-over-quarter No stated starts additional success quarter, views December by profitability on and standards. continued limited quarter rates segment grant year-over-year The new which are growing Consistent Unless starts, available start starts year. reflected due clinical investments variable programmatic a and

to Moving performance. our financial

for division of X.X% revenue $XX.X million exceeded full The prior leverage our year. the versus basis or all increasing investments and campus prior EBITDA start-up we for $XX.X along consolidated was our net from UTI million, per quarter million. Note, saw occur. growth growth an be impact impact Versus and year-over-year $XXX.X yields related operating period increased quarter million item contributed with costs. last as XX.X% fiscal program new measurable with a are year share, our largely reflect limited while diluted which the costs full improved MIAT to Our From Concorde we versus income first on of quarter will the contribution recognized acquisition-related first the $X.XX extent consistent new are while year-over-year year. A from quarter there profitability efforts. growth. adjusted adjustments generate optimization standpoint, they million due the to efforts. year, of These EBITDA expectations, efficiencies Houston the consolidation costs cost the in last a the year, from potential $XX.X less consolidated they Concorde $XX.X is campus this expect and and costs To this, restructuring of and UTI was

Series allowed stock. This by outstanding we outstanding shares. is the repurchase, conversion us in common XX,XXX conversion, Immediately convert A into ownership preferred purchased below increased regulatory million common XX.X the post mentioned, affiliate fully preferred our the total Jerome to for of stock shares December, that satisfied Through A Coliseum further convertible by million. their shares and As eliminating conditions XX%, owned approval. Series the into for common combined stock of stock percentage to prior $XX.X need X shares million the we thus

given with stock quarter $XX.X first in XX, per partial shares participating common we our with December allocation the million the XXXX, the the associated preferred of dividend of As method had earnings to place, the used earnings preferred shares share outstanding. note, for effects of previously X-class securities. Of the the the and calculation quarter reflects we've

discrete of saw diluted reflect the quarters the and forward, remaining items. We will versus ago full quarters EPS due effective X-class more the to year-to-date Going reflect period EPS calculations. various depots, the recent traditional calculations the and impact will in also while rate the basic and our a year more tax favorable year quarter

year, these versus initial of of the $XX credit capital. million which the the We expectation. now the year at Total working our going of full our facility. a level rate includes we million, forward excess approximately of revolving benefits ended is while drawdown available was quarter working $XXX.X to net with net modest maintain the target capital, our Following expect liquidity XX% through effective the tax quarter XX% end full

debt against while managing Total the As interest was we much $XX target such, of million, we the was approximately revolver minimize net possible. will this as expense amount million. approximately debt and draw the be actively achieve $XXX as have to

was cash $XX.X $XX.X quarter adjusted first million. Our flow was operating and flow million free cash

our than full free of of to still of ranges remainder XXXX generate $XX and strong to recent due timing, quarter the guidance Consistent have to our visibility we spin continue and $X.X we for expected year, currently planned first revenue million cash guidance, our performance was a approximately activity of XXXX. the expect and into prior the the cash years. expect the for positive investment levels are for current quarter fiscal bit we Thus, we million fiscal having to fiscal CapEx but Our relative flow for growth profitability new lighter year. adjustments raising for CapEx with unadjusted fewer lower we With year. anticipate

the range follows: an to ranges and guidance as million, the $X impact $XXX million, the with million, bottom million $X to conversion share by $X.XX updated the driven $XXX of earnings narrows net of and to an was million, of and are by income million million increase million. Revenue repurchase of combined of increases Our to $X.XX, $X.XX $XX million increase by $XXX approximately adjusted increase $X.XX, million, of $X diluted $XX of which end EBITDA an preferred $X $XXX per

to student cash in We $XX $XX our XX,XXX of have adjusted million to start as guidance to million of flow well free prior continue high as confidence XX,XXX. our new prior guidance

expect As throughout a make expected revenue we always, of These in evaluate growth will insight quarters. and performance terms actual are recent start the continue divisions. driven guidance by gain remaining student our as upper we ramp ongoing double-digit we single-digit into of both to program.In expansions the further phasing, revenue adjustments year and program growth low our the as momentum and over to expectations our

in grain starts, second the continue growth prior initial expect the phase complete other we student in put as mature quarter proactive and XXXX. we new and to the place enhancements double-digit in and year to half of we ramp fiscal the investments low digits program in our new then For the initiatives in of and mid-single stabilization second

Moving EBITDA. to adjusted

revenue half investments of and second leverage our and expect and continue higher costs. the in operating with year, each growth SG&A to our greater quarter fixed solid growth expansion from from the given yield the growth, profitability We program higher

we with given preferred significant growth income EPS, of expect in numbers the smaller conversion. prior profitability benefits overall the and GAAP share diluted each year-over-year the For along net in the improvement and the quarter, year, relatively

look growth focused facility investments we we will on resource driving As divisions, the ahead years. have we from increased structures and the utilization be across in and made few optimizing our both cost in past yields

to most continue capital on encourage review release, efficiently segment and where and our and objectives. additional We growth guidance. for consolidated the and continued presentation to XXXX. and our call We opportunities progress to our I'd turn our further like current further will to our students deploy financial as partners into supplement these team, their over also We actual road our investor materials include thank press diversification can and the strategic map everyone results, support I'll we information back growth Jerome closing we for working remarks. as identify now

Thank you, Troy.

students performance As first across while exceed demonstrates, for we and opportunities expectations our quarter high-growth key top our career metrics, expanding markets. facilitate on to the training our in deliver we've and quality financial continued

Our us strong and runway targets. updated several execution past giving much fiscal our to has over remained XXXX year the years, consistent of achieve the needed

ahead career even a and are continue students, refine. long-term at are caliber. originally even in at diversified to to testament we revised continue view. least They scale our pathways of plan multidivisional for providing this Upon greater a our premier exceed year our but have a targets foundation foundation, we We and stated will this the built robust

facilities overall platform. that past of reemphasize of admission and Over over in of our of as and margin endpoint I'd is operating as and we both working ramp growing well to workforce the expansion the greater the the and quarters, strength closing, trajectory. efficiency yield the not we recent to utilization our this our drive the launches our benefits growth coming into year This most the In initiatives enhance investments will enhances divisions, put marketing program and leverage. improved place to be optimize work the like

and for program We areas partnerships towards operations both our industry diversifying have make growing evaluate offerings Concorde positioned care and the deepening our us corporate cornerstone offerings health as focused as across ramping to as expanding and focus businesses. remain footprint. of on presence further well pathways our rapidly well and These of our our this

look the for proud now and of forward the Inc. continuing Operator? fiscal are to We in over to like our on for call momentum we operator and Q&A. building progress, our and I'd to UTI beyond. XXXX turn

Instructions]. [Operator

Our Securities. first question Grondahl comes with from Northland Mike

school, the bit? the people Jerome, could what made, expand is a investments side on of kind Like what's of you've that working maybe little that's maybe on just military, and on working getting you marketing those marketing side highlight school. whether and high some into

things. of couple a Well, Sure.

population, Google that's isolate which with more demand AI And adult begun interested vendors is social driven to along be digital that's where the most we Our doing new military, job are. our we've a media use of sophisticated better to to means. much population likely and tools includes through in tools utilizing

also it's the lines and great see. helps likely helping So convert geographically likely to interest to spend better which age, actually more us giving are social discern convert, between way lead, those by by convert. come and that things are those us time is to just more are with media we whether that preferences And less is those quality that along more to nowadays, a our those which likely reps

care seeing those into presence at the we're of in about an schools. that out our or in ability health that look so significantly conversion this the increased based things and identify fields. one likely of the our is to more And of to we trades year year beginning uptick skilled high the then talked the are we transportation better And in

interest of lot four off I into driven. by demand high schools doing the a our think the And the actually organizations, the that. presentations driven career so three, presentations, of days week, high of demand in school a five, going day and Most a six is is and generating reps

be and a significantly more is seeing faculty added second know more know lot the relationships the year. those high they doing more presentations, their a XX about the generating stride leads. They they're lot we're in reps effective so stronger. school are about frankly, we more and administration them channel more their XXXX, which the schools, of Their and hitting in And and, schools, about in

I in from generation the are things probably direction turning are So lead standpoint. things those that think a our possibly

And it. question. Got then more just one

Concorde You've each has bunch each or done color that well? done just there? of Is at one at UTI. at that really sticks out two Any maybe so there at expansions one or a

of think Technical Yes. what of the HVAC be Universal I there's way -- think division up less actually the operating about which the about a aisle, And side what HVAC Institute again, in technicians. much There's there's and does. to in therefore, -- career knowledge traditionally programs lot needs is that right of well, less People pretty demand is. filling for is And welding, market the out way has there I that technician happen on the talked put HVAC understand an are that. the terms they're to we've learning teaching

really need very, think we're -- place, the In that's the with I accelerate on second why aviation campus. so And HVAC them more see also implementations. happened aviation first we happy is very the what's And for to UTI to strong. of tax decided

so aviation that and started well the our our for cases, very, exceeded cohorts initial very have in And the in expectations most group. programs have done

side, fields. On very in Concorde the the is health care strong dental very, -- the

ahead and to quite a hygiene going seats. for are then limited campuses have it's the to why implementing we coming is to we aggressively of them that get that cohorts move had programs acquisition on we so forward that with because reason have put into in approved is along. next be been some the And that therefore, actually demo who creating number out invest and in a decided start sell prior hygiene waiting very selective And them lists programs we dental quickly.We

think, that Dental star and are Not They're well. are like programs cases, there, aviation other the right what a mill wind at two those not the some discipline lot say market because the so just we smaller, on there's more letting far. this time behind, up They in that don't and inside. and shiny is that wind to that people So I really with someone the who robotics energy, climbs realize HVAC closely are. or doing fixes spend know

hope question. I So answered your that

Rosenblatt. Next question from Frankel comes with Steve

for So like battling reimbursement. terms you of employers has been as one that's benefiting these of tuition going students and upping that in their the been on trends really things a while offers for

higher are do the getting has at get we where for that someone table the UTM? employment in you Given see battle other to turn Or the of the terms overall still to market, way? stakes

question. in many the It's equation, the is growing. UTI of a of areas great If been anything, the side on the demand

you over If projections BLS transportation that in for even is or demand at look energy growing. and skill people next years the trades the

going those -- these allow commented are to prior reimbursement. putting the order the that employment can of it, to some because and what are what occupancies of make their in cases, rank we're of students. into how one us these access right, help public employers things put our landscape how on the or much we the agreements we not bonuses compelling this of so an people understand you to trip pay, private offering. And community organized are way proud suits. And competitors to are have didn't that much tuition really They any the in benefits trip of we've also place.We see that sort of registering that so the along what employment are other Are the place something that would like past sign-on most that too, all be lines? things there autos program is those of the students or offering into nature is to and gained agreements, community And

that's them the more order possibly more them high for is very together education, get then a our to do to want we best that graduates. see position so competitive industry-aligned and give graduates are in putting get of And we favorable want to jobs we people we quality We what what want to offers. our accessing And can.

graduates. an trip aisle. year, last they good on cultivating in our very, to And local care what of their are who of access heightening This opportunities out Concorde the about magnitude of those health great they very the been that of these owning them did transportation because upside opportunities is example need so agreements, job a I you know, for for between as the from are are talking dwarf we've us prior there students energy of that gaining competition market. and think, in to terms things side And actually a trades

of And of that. that now the evolve Concorde organization starting organization, see the results of that expect with we we're we'll so to same some some and same out

And was when fantastic. of changed especially campuses convincing and big was at offering its students like incentives situation another kind inflation to you were the capacity Orlando. then the that relocate? challenge, those work that's at Have And peak,

still been moderated this few is Steve, I we're seeing say would the Yes. quarters. last Troy. Look, -- it's

haven't we turn. it seen So

still making we're new the with the possible We're bring stabilized, really continuing in to the local side, the helping things there. much I concentration. of think progress. to strong the space, relocation, And in trying right we deeply to most the program students where higher to work good students relocation the to but So offerings, with find penetrate campuses on still more progress seeing of have generating a again, it's we're local some those drive that especially leads. We're mix

to relative led to a anything lower there head And per the least I UTI then CI would out? legacy than revenue the modeled it, thought. at one, that or little that, the I business that you was last way the Was call core the at

for holidays have because closed dips we were the QX a week of traditionally December. in a Well,

a and it if traditional didn't trajectory, apologies tuition -- based that growth conversations, of growth your see may our a few kind that do prior but escalations. in of see then points bounces any dip up we of we convey and you back upon So

to want just in sure place those rest the still were year. I of make the Perfect. for

with The comes next Raj question from Sharma B. Riley.

And my second I the solid great for slightly the of you starts wanted expected. are the in the the performance They to than higher understand understanding that most gain year half? starts. is expect quarter. better Is in

Still.

that then we double would half the our of year, November Raj, -- remarks year. we in my that back still the commented So first that and guidance would back the Troy. the gave have is so yes, this on I see in very growth moderate of The in we prepared was half strong is digits, expectation.

and new was course, for the pro commented This About a in that I half of programs XX%, where basis. basis. a on be will a that forma forma quarter, half but there's partial XX% the -- then, XX% over getting pro campus and programs same a Concorde, that quarter. quarter of on UTI same little of So last

the some we programs, back improvements there year, So as of last we the we'll our course, into some side. for expansions anniversarying of over over well. the marketing good of on or start as as growth program lapping But UTI year grant initiatives of implemented the half get the the and

back year. to why to we that's expect more the mid-single-digit range So see something in half the low of in the

small And Military Great. high usual. board, is the student consistent. anomaly? that pretty higher then just numbers [indiscernible]. starts, the were than that coming and across was just the school adults Or Is an

small of bit a is it numbers. yes, Yes,

It's XX%, previously, improvements We also two the almost school military. had from team, about including staffing school. We seen about on same that smaller smaller some increased we over it's last now. in head a have of the that high a attrition the had the or by two. We high much year in talked team. done thing But of the some dozen

fully staffed team. So pretty a that's

for aid military and our efficient. prospective that We to make streamlined also our centralized much more students process support financial

prospective the have core again, the been military bit of the last students, we quarters. across actions and very It So in group from benefits you of quarter-to-quarter, around will those bounce representatives certainly reps with we're the pleased smaller several in numbers, a working but growth, have of [indiscernible] the the rate. portfolio growth seeing because and together a whole military of

Great. And second line half, then in but EBITDA big just and know the jump would numbers, on half. be the I is starts the in a the low also there mid second in especially top to the

-- Most is there in EBITDA coming XXX leverage big a to where last the that of The first I on operating basis and quarter see gains -- about was beat then? lower these than points EBITDA year. expenses from are are operating QX,

the the going were later the we didn't mostly expense in thought Yes, start had came that we some and About half and as half fast our to was quite versus we than timing, ramp thinking expectations. would. year. half was was year the other benefit we're half revenue it expenses we we about when We as of initiatives into

that guidance associated again, bit keep some we there's why the push able tail. to in little we'll So ramp, of a a net side a there's some of were year. benefit through flow which that increase on for of with the because top line, The and expense our was timing is mind, just

quarter a year. with in a We that students start have school this for

normalize half top growth, -- And strong we the the whereas exited the digit to in year, of that in year to revenue differential line things to have that first just on all any benefit last based say, the rate so with guide the X% X% general rate next have we once that in say, starts the low strong to we'll range, mid-single over occur. tuition type quarters, seeing we then, the being few would this a are of we growth growth escalations equal, that continue start that let's and plus

And seems big given the it seems it. the year the the for conservative in guidance EBITDA like -- QX. in just beat increase overall Got

moving timing the And Yes. some the around some just of of again, year. the that of is expenses

the first bit and for re-project the quarter. second and third we're we're it's based QX continue look, start that, make doing have other able would normally some update to being year year, given the given portion the and around -- We see of through we beat we'll we the it of little our on flow beat cadence frankly, But year or a -- of would a our quarter. We in the in Normally, as of and through appropriate. shuffling the to be so early year. monitor outlook strong just the comfortable just as guidance, adjustments revenue

number? composite stand my you'd number into specific And And about that And now? play regulatory and allocation that of then -- is front always guess, target capital any you and does does the where to attempts in financing the how improve score on that it. the last question is what scores of to just is there acquisition to Got think of try are a a the does [indiscernible]. that would future. the achieve? I And kind like compound

Sure. Yes, we focus heavily on regulatory metrics.

cause of We are creditors. terms our Department any of thresholds any Education reporting purposeful of about that very staying and issues any our of with in the above

outcomes student are also important. So very

What's -- get just know scale as is, you out It's to X, X.X X.X a score. that for X. relative of a about about you above listening, X.XX you're basically composite general interesting story. maybe those As and benefit just education end no for and is of you're sale.There's period, X as far to -- it's of pass but

comfortably of managing lot of So we're into the to the to Again, to around about a if Concorde. dip X. get of X, score. the mean, that the lot we that. manage relative because a get did We acquisition the X.X, and of not drives a we'll go to there's year a X.X. We're math that's above continue variables great. that prior I X.X. elements and We're composite equation math to There's above

would there's with the the above temporary of no above of Ed. at because you're the above So be X% last But X.X were X.X any blip. again clear this year potential kind we year. impact -- We we were a implications likely as again, of most Department X, this is

we we the we're and really that's take delivering very that. ensure but at, it metric that primary to our manage seriously that look So business we

again. Congratulations

next Martinuzzi comes from The question with Eric Street. Lake

the understood of wanted of fiscal sort Obviously, with students is I I new to to down the make base starts, change Yes, in outperforming. 'XX. the student upward sure revision the this coming no to installed

was just new the or better you than better maybe student originally change student the per population? revenue the little a driver starts? this in is thinking on the So curious, bit What's without revenue in retention I student

on Eric. Starts This were better is a of Troy. expectations. the pretty I line The Sure, with bit Yes. our little performance more it's population, Yes, much population. in think the

given said, X,XXX you in starts we're comfortable of range year with again, the full early year, we've previously, out guidance midpoint. XX,XXX As a the

to XX,XXX lay confident of to lot do starts in a have in for other we the that. work feel we very year, the So but

you around And feel QX lower the monetization so bit about just out base, the QX, better little attrition -- a coming good of said, persistence, that. to installed of bit the performance into as a out and year better we on of remainder and for the the continue

of the then use priorities. And cash

do has go you M&A preferred have rank? of you the new if Obviously, Help in. ability but know guys have You lot even got stack a programs, you new understand key me of I convertible conversion been rank a you've a the driver business. share there. the can the where repurchases, of campuses, M&A, stack But directions different don't buyback, post

Yes.

campuses at tail continue down Our done et expansion bias the diversification work growth last initiatives the years. and the we've with path of in last in few program end the the to new We're upon is the years of we've the few cetera. embarking been

this and We Keep his opportunities said our in the journey. of is end inorganic might place, have of We're round we're we're cash initiatives. remarks, a most be, on few next what And to and which as a flow more in grow a in on for at a the year. program and be combination in we're cash fourth for decisions expansions, prepared foundation, building to plans as Jerome continue could mind, Jerome of playbook working of and quarter. of earlier a the commented lot we our have flow, looking generated expand, going organic our not

flow fourth $XXmillion cash to majority the of guidance. million The coming free quarter. that is that adjusted $XX So in

have actually the don't today. cash we So

but year building position even around have start year up commented our I be managing still we revolver to and from expect the my cash, absent through in -- $XX that. as and have progress down revolver we'll We as the the the we draw organic prepared and exit any some new decisions remarks working capital on the million on the

strategy. they of new would we what plan what our flow continue year, materially allocation return really beyond, on year. cash more that strong towards nothing investing would impact be have executing that diversification and flow around we'll some bleed need a other and and might to business, for is and probably we're we growth we now, capital into that At this beyond this and nothing definitely $XX at steady cash consistent in and look right CapEx we'll in our the next So stream shareholders probably have year would any continuing on the point, broader aspects. policy cash above about Probably in and -- to million make bias and decisions -- plan

on it. Got a Congrats strong outlook. good quarter and

The next Research. Barrington Alex question with Paris comes from

beat my answered. so I'll dive of raise. Most Concord my and little -- kind to a questions on Congrats time the more. into use asked But bit been of have and

more than a year December now, You've X, on it owned it for XXXX. you bought

first You have no integration said months. do is to the before, during were harm. first acquisition X the XX activities And there some step in

were think at First question, the margins the around of terms go what, that integration. then And where time now acquisition, can second is, I business? margins in X%. related and question on of

is Al. Troy. Thanks, This Yes.

and -- being So Concorde official President commented the Kevin a on Jerome progress missed the named there. we President, great a team pleased made of we're Division haven't We're Division beat a with performance still the year. acquisition and and last super Crane

like organizational, some So and performance really and see associated Q into now really, with in things other payroll organizationally some the with of you'll the we've and realignments the excited reference press the benefits get the team. and release The integration the and this starting of our about allocations we're pleased systems some and done financial are that. of year in expense to

and of some the HR, we're type organization, functions. the central So organization, the more IT organization really really plumbing now getting support of the more into those finance

but point. that of background at more doing we're that's work this kind So work,

maybe an them which into part question, they the which be table, team approaching which and X% optimization This or is year, helping we as ideas the last year. are that X% drive now to mindset we'll embracing we organization, margin are believe bought the tubs bringing second and mindset then that to feeds continue growth XX% that of a does XX%, business. can was before be them to wholeheartedly in a it's really, so well and mid-teens that, wholeheartedly throughout And really your great

the next they advantage X, readily previously maybe, continue have get higher there. didn't teens really the expansion a change in believe expansions modest in there's growth growth leverage of really we're dollars perspective. so But just And opportunities we market from business years, marketing, and solidly and the are X profile, a to so which growth, optimizations, combination there But taking there's we'll with look available growth. marketing into the to program the forward, a drive from and that of and from over around really strategy additional some and levers -- now margin available drive a both to that

selling couple growth the Yes, on I'll comments are cetera. during Troy potential was things usually because of there tons of which your et couple of process, on really just the Concorde, marketing, of don't that mentioned, unlocking money a make you hit Troy a think of spend about most you When it.

team we're we put like something is with programs next the and really year. the taking which that places with to speech we've unleashing beginning upside from into demand relationships partnerships, in collaboratively that very the programs deeper place Heartland, their we're two, lines. the strong weren't during this on to about beginning very not alignment their where very, in we is strong the campus itself to each embedding training now a place really believe But that in the the standpoint UTI the two local do forward that year. and other work that and job the a individual outcomes, them so great acquisition, relationships is a excited months, strong upside online. really as deep differentiated at And being would industry those and differentiator XX believe campuses point reimbursement that's to is I'd we're into marketing the tuition and process. did and upside and And relationships, programs, the into that things to on community then really place the them Those areas: moving things online the on where BXB of next connections, things going control. market, that of BXB six within from Concorde things last focused along mentioned and employer but a taught over selling Number were we is scholarship well. are program we generation has programs the the UTI, to that and last particularly is leadership Those community, year relationships, that the for that off think in focus in prior unlocking taken have one, accelerated acceleration filling The the really amount of the like folks We kind be couple of and with well power of next amount as Concorde we significant growth going well. of expansions. over were XX will a And significant a of Concorde I invested

M&A, what's in anyway. your regard to much prepared have a my And things Didn't M&A? the Great. assume the guess it these I comments. you with been inorganic MIAT thoughts you've last would then and while talk my color. I years, M&A appreciate of a That's in where additional But few about M&A? close take runs, the acquisition with very growth. opinion. And I over last answer. would Concorde been be target successful the very thorough question to

in because prepared right. talk We our today. nothing got you're about speech announce we've lot didn't Well, to a

talk therefore, And about to so going a it. lot not

we're made done. that clear past in have the it not We

-- areas, whether area, Health example and small program in Allied geographies We health Dental are a are it's M&A of nursing. actually one but think we blessed the incredibly the well. were of in in very small looking or in number care and Concorde as just places number students accomplish with through we campuses that can we acquisition, And their

look we of health care in research so And can where at therefore, that's an the participating area deeply arena. more

space. likely aggressive cornerstone that So about concern be will are we to health in excited in care, acquisition as and more a look we

campus equation, when in that side at teaching new the programs we or also we a also don't look at campus. very a said UTI from -- we've inorganic so of locations, as It we're to XX market the we past get months start-up On means the in the have look location, not beginning. for the entering a warehouse from is about to takes that we a

so to in look now. we to in-demand be of announce, also have you proliferate broader and new something to geography program a of band And guys we'll continue areas when to skills. And first terms will the

That's great. again, new year. strong Well, the in to fiscal on congrats a start

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

Dave. to who everyone lot, like I'd thank a attended today. Thanks

And always, when to the to our period. forward do your few audience are for many to be again, over follow-up next of again forward in with We second over As speaking you I Troy fiscal days. time questions that going available look and once once we we results. May quarter look

So thanks.

Thanks, everybody...

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

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