Universal Technical Institute (UTI) 20 Nov 242024 Q4 Earnings call transcript

Good day and welcome to the Universal Technical Institute Fourth Quarter and Full Year 2024 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Matt Kempton, Vice President and Corporate Finance. Please go ahead.

Hello, and welcome to Universal Technical Institute's Fiscal Fourth Quarter and Full Year 2024 Earnings Call. our Grant; are Christine Interim today Kline. me CEO, and Jerome CFO, joining

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

Securities These the defined Litigation be upon may statements. new we comments filings. and contain release to, cause in forward-looking performance, and information reliance make and which the but our by to update are results result as to their are statements that Private developments, as law. therefore, not future are differ expectations or statements Act During address include, this call, required may subject beliefs do SEC in discussed actual these to These a by Reform as factors except forward-looking that of guarantee management's XXXX, future of matters statements of placed not current a undue those number uncertain. them. materially that not and those reflect nature, We limited not are earnings and intend These in future do statements from should factors

call non-GAAP today includes for financial measure. substitute directly to our earnings note, period Please U.S. accordance measures a the also call in our this GAAP measures. most of information in company's in today's press unless with addition otherwise reconciled be stated, the in viewed and comparable results results All presented for XXXX. in reported the be against are These release all not will non-GAAP prepared to comparable referenced GAAP. as comparisons fiscal should The financial

our regarding our information measures, of more and presentation. definitions investor earnings financial release, please supplement see non-GAAP For

turn of for prepared CEO will Universal over to the his I remarks. that, Institute Technical Jerome? With call Jerome Grant,

to future-ready everyone. in and no our had year, solutions by a building We which critical afternoon, Matt. you, dedication demand a program was meet strong industries. in provider motivated workforce the part relentless small Good Thank to very offerings enhancing our

to key improvements our and As expectations. or in on exceed diversification fiscal we all continue across continue execute and our delivered metrics to strategy, XXXX optimization we meet growth, our

For accomplishment, sincerely with moment to along and time our our teams, for strong like and time that partners their delivering students and I'd and take efforts to a again. corporate exceptional dedication thank to results, their divisional

year-over-year start of full-time impressive for to to Momentum continues share fiscal for These for as active strong per driven XX% $XXX end million. $XXX year-over-year divisions. year Net Adjusted EBITDA by year-over-year million. start the earnings student guidance starts income improved roughly for roughly an XX% build to students Average year. diluted XX% exceeded increased upper million revenues year for the with increased grew to $X.XX. the Concorde year. our $XX XX% and the increased the both by the of fiscal Total UTI fiscal year-over-year new results were growth and

XXXX expansion And past great program to at programs hygiene aviation the brand-new in at programs current this booths of more the Avondale locations. currently addition of Number due existing of not ongoing launching that campuses X offer. two, Long Beach three, adding portfolio year. to include and to commitment UTI. growth examples as Two our in-demand do were from this campus and our programs number current initiatives, at HVAC on and this achieve was of we such capacity our core welding at number to following: ability Our adding the increasing the dental additional Concorde largely one, which our operatories

of margin optimizing focused In growth operations. our future and support to the program and efficiency facilities on both improve workforce our we're and addition, to

our our also the of across consistently accelerate meaningful board admissions and we our growth to and or guidance. marketing generation delivered to We convert the Overall, and adjusted proud we're ability lead investments achieve inquiries. outperform

pleased industry company outlets. media national the our for and also positive both recognition in with We're continued

that workers to in equipping with schools certainly Concorde For increasing necessary is number students collar choosing stability we UTI environment. a over success collared X role There playing graduates targets. the with industries. is like promise of growing as field us the and fulfilling offer. demand accelerating industry This combined positive in were for and jobs student macro and articles balanced long-term CNBC outcomes Concorde for and a our to featured careers the our skilled the thrive and emphasize in across traditional gives confidence skilled for their pass. excellent blue our of pace. articles published be trades a individuals recently highlighting in for are these UTI reach in-demand This in trend college added a Washington, our stories resource appears example, the Both skills vital of collar Several our call these what who to for financial showcasing sentiment

division for XXXX. our specific to Turning highlights

strong the division first growth. our across cash our full to resulting results investments all from core programs Concorde ramp. growth the shorter as team. certainly under marketing year admissions and to and continues of pay growth In strong continue our in new This Concorde increase fiscal clinical, throughout our division's overall our year has ownership, growth surpassed effectiveness deliver Our programs, is with they year-over-year expectations. We Concorde robust saw including

remains progressing nursing by increase students. fiscal track program Increasing program effort And Concorde's capacity increase our our hygiene nursing XXXX. also Jacksonville, on in Florida as San launch strategies, Diego program program capacity in Dallas is finally, is the begin to XX the in far also well. our capacity As additional anticipated mid This to still dental fiscal new of an expansion XXXX. will in

partnerships. to now Turning

contribute pay for dental lifted, on IV campus will campus. are which not directly serve partnership will expanded and co-branded construction for support. This center Heartland trained for as further than initial as students campus Heartland it As we add is equipment and Concorde's as To X,XXX a assistants, run training over we as construct with expansion look dental anticipate provide assistance margin Concorde's because is a $X satisfy the be durable long-standing cash Dental This including funding mentioned as with growth which also launched updated able this will with last will dental quarter, keeping our will funding million title a partnership well. well IV to more forward launch and campus, non-Title as into ramps. in We X to hygienists this it as feed partnership to only EBITDA of plan next rate years. increasing financial additional restrictions basis and and revenue dental initially Concorde's new supplies Heartland to the together optimizes are as demand we hygienists well to reiterate, more the mid-XXXX, offering targeted cost locations campuses help transition we and we as also the you When significant progresses than a nationwide.

to increasing traction a X growth, expanded fiscal generated and collar increase the this UTI consistent new large division. Reflective Now skilled continue to year-over-year well. double-digit demand starts and The in in on and market market UTI to momentum our first starts increased XXXX UTI division of workers. deliver for steadily programs year-over-year driven growth this by year, also our UTI quite the strategy, XXXX, throughout in year have and with expect this UTI revenue performing continued we

and approvals. the Avondale, with and Beach in expanding the program Houston continuing as campuses energy and HVAC/R and programs to unification trades perform campuses operations on and this XX The well set quarter. launched now across to part synthesizing across the Bloomfield, the pending in we skill the Our be regulatory of aviation, continue the of in UTI Long to UTI nicely are begin programs in to months, ramp Sacramento MIT sourced finalized track are XXXX coming programs MIT

As name help potential UTI. Institute, our NASCAR us will as we Mechanics renowned Houston and and leverage our Institute efficiencies partners. as Institute outreach to as Institute to enhance further Universal by Marine be Canton Technical operational stated, known the Technical students and These previously brand our Mechanics all mid-XXXX, campuses the consolidations will Motorcycle industry campuses, well MIAT

EV of and part commitment are California prepare we in that graduates Avondale X courses recently training core for the X same now the UTI are available hybrid on campuses. our already further industry our our with of These planned. programs curriculum technology is requirements, rollouts ever-changing program The EV campuses to our to with added part and new As Orlando campuses. automotive enhanced

and the all our All campuses include our we Additionally, strategy, Fast program the UTI X with FACT provided both are instances new decades BMW curriculum Ford EV campuses EV manufacturer-specific curriculum. training latest respect Fast BMW offering Track vehicles and offering BMW long. with Ford. Track are the FACT Ford teaching X relationships to and to or to by Ford BMW MSATs, us advanced now EV EV and updated Collectively, program the our using

which years XX,XXX we students Ford more our program. inception. fact, graduated celebrated In its recently XX than since of

communities Accrediting commitment to and of were honor by standards highest and and on the accolades award our dedication to only These named this San accrediting earned Career XX Commission ACCC's reinforce campuses our highest serve. of is Finally, mention Schools Framento I'd we the impact to like and education the This underscoring in XXXX-XXXX the our Excellence period. that Colleges. schools Dallas quality, both of for excellence positive Schools

to just Building to divisions, ranging $XXX like of now detail now student discuss and Star EBITDA to now in between which by to Strategy. fiscal take and our We adjusted introduce Christine Revenue $XXX moment growth. is Phase we be fiscal entails. XXXX in million, anticipate reiterate are XX% a concluded, I'll $XXX multiyear that starts year-over-year officially be we to on North be expected I'd XX,XXX expect our being entering million our great million reflecting work bit. new will $XXX and this from this X XX,XXX. With guidance million, a both of done more to XXXX between

XXXX, to year programs on previously required approvals. the launch plan announced campuses X we that conquered Starting of we in minimum to regulatory subject fiscal UTI new and/or a each

pleased a at in will to are We also point, skilled finalizing next X to the city program open Fort conquered we new UTI planned plan new be campus third launch that with UTI. campus To in an state targeted One in a a X campuses is in that offerings Myers, first that be least XXXX. announce trade optimized the of will locations second a campus our our Florida, and to outlined beginning campus our fiscal Heartland I'm for XXXX. aviation set greenfield in comprehensive and is annually

lined up expansions plan to these more we launch the look campuses footprint short near full-length happy X in forward campus on launch that paid details and to sharing are the to announce and existing programs also are cash to We We our program in future. XXXX. on courses XX campuses very concrete across precise

fuel margin these for company initiatives and compound efforts of the growth of expect further. our rate will XX% serve adjusted fiscal as as an XXXX, EBITDA mature the for annual fiscal approximately with our previously revenue We XX% XXXX by XXXX end optimization between target the approaching announced

and appropriate of You deck is our evaluate if course, pursue longer-term investor these find acquisitions. on We information to can and targets opportunistically continuing We're completed. more as transaction would, strategic website. this also in our the strategy on adjust

I'll to financials. Kline, our review that, over XXXX With our Interim Christine? fiscal the CFO, Christine to turn call

meeting another delivered Thank or we for all you, to fiscal Jerome. pleased strong year, exceeding quarter our that XXXX. expectations I'm metrics across and guidance share

our fourth we the from fiscal performance, total XXXX starts quarter. with our new student recorded starts XX,XXX for XX,XXX operational expectations To coming summarize exceeding

divisions full-time we've our XX.X%. quarter delivered total new previously, across As In seasonally both fourth QX active starts of students XX% start solid high year-over-year, increased and total student mentioned average the grew outcome. is quarter, a while each

program active students yield Concorde. steady from increased the emission new of contributions For expansion marketing increased year-over-year to tuning increased as growth as quarter starts student well reaching from and The and compared year. for full-time and strong year were initiatives the driven the full by XX% spend and new our year, state the XX.X% both average prior full

division students XX.X% the for and fourth drove Concorde full-time The a increase in quarter XX.X% and average full active respectively. year,

QX like pay shorter in well processing full growth the as a programs, increased increases These The and programs across as core for X.X% for in a for clinical student result of starts X year-over-year average growth quarter students New in full-time fiscal large benefited QX. in XXXX. year. are division which XX.X% sterile and the generated cash double-digit and XX.X% a from active phlebotomy UTI X.X% and starts increase increase

in year-over-year collar well UTI throughout fourth the prior and X.X% skilled added optimization our quarter growth current programs full as in campuses year the starts this portfolio. student Notable contributions the and ongoing year. the to New grew of programs X.X% were for the to existing as

quarter $XXX.X prior prior to XX.X% UTI year million. revenue consolidated $XX.X year over division the an Turning million, Concorde increased to our $XXX.X financial XX.X% performance. a quarter. quarter, XX.X% increase contributed contributed Fourth the million, the an increase over while on basis of of

For division million above grew to guidance representing over XX.X% $XXX.X year, the December of Concorde months over an prior additional during given XXXX of revenue date. of X increase the the benefited compared year. our end full year, X, million, XX.X% while from contributed revenue increase $XXX.X our $XXX.X consolidated the the XXXX, contributed a of acquisition to XXXX Concorde inclusion million, the UTI upper range. XX.X% prior

income quarter $X.XX million share middle million our had of for profitability million per $XX.X $XXX.X our fourth $XX.X year. million the in standpoint, income $X.XX per net EBITDA full full share year. and million the fourth was the guidance shares quarter the or end projected was for of we adjusted or the diluted was Adjusted outstanding. a of EBITDA and end EPS and XX.X range. year, for and diluted consolidated range, the At exceeded the $XX Both upper From the for net

Total available our of was end quarter million, liquidity revolving remaining capacity at of credit the including facility. $XXX.X million $XX the on

as our revolving us XXXX. of $XX ended million. in Phase down filed by $XXX lean provides to with positive of previously we the additional the on million Star in September, We fiscal X of million capacity facility an credit feature, in flexibility working in million QX net X-K, into as also North capital additional an our paid the greater accordion $XX Note, which we increased with an financial year with $XX Strategy and revolver

were guidance flow outperformance improved adjusted capital million expenditures exceeded our than spend million below primarily $XX significantly of due net $XX.X and operating $XX.X to due income the $XX timing project million, capital to cash for and full million, range XXXX projections cash slightly was flow was and year Fiscal which procurement million, lower Year-to-date savings. year, projected. earlier free $XX.X to of

equipment and As we've IT investments for and program well includes improvements spending upgrades, refresh and previously as stated, our curriculum divisions across both initiatives facility as expansion CapEx with leasehold and investments. associated

fiscal organic fiscal momentum confident guidance we with throughout detailed the growth ranges into we execution carrying strategy XXXX consistent conjunction our new for and providing Given and we this are in our year, XXXX. formal are in are the

with Starting revenue.

million to We additions between active student increase the expected across XX,XXX average expect students million with $XXX at This XX% midpoint. the divisions year-over-year approximately a program for generate new growth full-time or in and starts strong to $XXX and total range fiscal reflects between $XX,XXX. both XXXX from

growth with with the mid-single and lowest period expect we remaining quarter, the being revenue first double-digit the expected growth to in be growth highest. double-digit quarters, the to For up high QX single low to QX

For somewhat each year, should throughout though higher. the anticipate starts, be QX mid-single-digit quarter growth start we

fiscal a to with coming between million and to For expect $XX QX range low mid-double in $X.XX. quarters will and be in net income share diluted million first growth income, earnings we of $XX the QX. ranging Net per in to growth outsized $X.XX digits the X XXXX

programs and million around We $XXX the each of midpoint. XX% in and maturity the well by in year modest double-digit operations revenue, growth the XXXX in significant thereafter each of in between increase year. driven additional generating with a at is the year-over-year as profitability second the first quarter increase optimized occurring expect division. million full EBITDA launch the range quarter increases largest $XXX and adjusted as growth to We growth The or half anticipate the in

first beginning An underway. year of important for XXXX, campuses gets the Phase item wave that our to we in investments programs Strategy new of fiscal North our highlight is in Star will growth start as X

of them these nature onetime EBITDA our adjustments in projected longer we the no will calculation. adjusted Given ongoing non-GAAP investments, as report

XXXX. to North growth to during our million fiscal Star expect investments incur Strategy We approximately in $X related

range growth adjusted million campuses road our assumes programs free full of anticipate and million, as map. in cash $XX flow is year of This the $XX investments required to North We million which CapEx XXXX approximately increasing incremental and fund $XX spend. to reflective part Star between

given and free EBITDA, investments calculation. adjusted continuous cash and the adjustments no them with As our as these nature ongoing non-GAAP will growth of forward, adjusted we flow longer going report onetime for

generation cash to growth of the and fourth cadence. consistent bulk historical expect materialize year-over-year our quarter, in with We our the

we the to financial is transcript, addition presentation call release, as as as in supplement review earnings investor once filed press always, and As our encourage it to these everyone this XX-K materials most students, results, actual on and current team, map our consolidated Thank our investors for partners our support. strategic information our their include guidance. road to ongoing you the segment and well and

the remarks. closing turn for Jerome call now I'll back over Jerome? to

Thank you, for the Concorde have Technical and Christine. positioned and Career well trades Universal College capitalized divisions are demand education. uniquely already skilled and care health increasing The on both Institute

results Our our and growth, of North and which effectiveness conclusion this both our year phase of the of the optimization. our past tenets successful first Star diversification revolved demonstrate core around Strategy,

the ahead, next look to we our As phase journey. of excited we're begin

focus high the in outcomes. our drive demands on operations new broadening efficiency demand growing optimizing meet expanding our include student scope our to enhance geographies, Our more remains fields programs of and to reach and to

programs offering. expanding first Entering ways, and a organic footprint a and campus. in campus piloting aviation around Two, innovative in-demand and continue greenfield of XXXX, of broadening variety our skilled campus trades initiatives the launching co-branded geographies our revolve our existing to an working towards fiscal reach one, into new as such

programs our And XXXX X to three, deepening at as relationships presence on Concorde. we network partner earlier by health are we with and Heartland As launch my exploring our growing across currently our care noted least campus. divisions. program acquisition have complement opportunistically our preparing in emphasis co-branded XX strategic remain more remarks, in opportunities efforts on an industry modeled in Inorganically, will focused enhancing with that offerings

than and Moving is stands stronger into need We're collar the excited year, and company of the for legacy, The about ever. our robust XXth equally professionals skilled future. proud we're growing. our

or strong in confident is are consistent we growth, to our generation the deliver exceed and road partners. was a momentum a we a to sharing talent. next for ability lasting leader clear more year the expectations, and With will collar progress strong value to for be a in of a and supporting and by our be We our positioned are and building, Our students support meet in uniquely training map skilled shareholders, balance forward sheet to look ahead. of our appreciate the growth ongoing quarters your and about X year our marked agenda. XXXX remission ability exciting

look As pursuing. the host always, to provide at tours closer initiatives happy we're a impactful and campus we're

please Q&A. So visit. you'd call to like over Operator? feel like for I'd to free if out to the the to reach operator now turn

from Our first with comes Grondahl Mike Securities. question Instructions] [Operator Northland

My Jerome. do, successful to a on Congrats first has question just year.

about tailwinds, can the kind just talked fall and way little we seem a a to any there? macro get fall those You 'XX the Is correlate bit or of strength 'XX, picked could sense fall so of to of the of 'XX of there you the have up.

Mike?

Yes.

Okay.

sorry. sorry. You you. can I'm unmuted hear Thank -- --

still. muted Our was line

heard your I So question.

remember in a inflation 'XX, if that had really. of you come we was just 'XX, April of 'XX in And 'XX 'XX, back the of 'XX. fall somewhat big spike and disaster, correlating to So through

very, to were. in going they 'XX, People the all double of I went the recovery in were up. what things weren't seriously what that down invest through and digits period crescendoed thinking started The the they 'XX of we pick way think see 'XX. fall in to very enrollments were about fall versus

think then, on knew they life gone where using was rent move normal. think gas I the a and to were would and new and back gallon up, I was about that the term, lead. People starting $X has

are that as it As seen we what our workers, throughout and a going of we pick our the and to they viable what continue do. school is trades seeing area world, up year, post thinking this and XXXX, collared high we've seen, really moved rates the people is into about about practically our more conversion skilled workers we've they're as in thinking skilled enrollments leads profession which and to

trends out enrollments I the press and it think that if yet of potentially seeing think and meaning continue? you down high this as Will students favorable straight short some that I'm were up. of more of you statistics you'll school see labor fall the are freshmen from saw economist, out that are who saw I this there year. And but popular those a the whole, not environment. in an programs we were benefited fall, certificate we a coming

follow-up. a And it. Got then just

are up. up You mentioned leads conversions

said lead You too. the on a It seems accelerated lot Any you're you in marketing having there, like generation. funnel? update of some investment success

And one leading first think were this the are before really throughout where we of terms they are. they -- the Group of Concorde commented that I behind now. is is on We to the owned where in year wheel year from getting the the things I of

so numbers you got our for we expectations. test And investment to Concorde their of admissions seen. the Concorde shared results were And group. accelerated great what a Concorde, the with some marketing sense we've of In our we've and beyond elasticity into we

marketing, Concorde that continue into a great we year thought some we in we as were pump And to more hadn't little money to QX seeing we're actually both QX. in ourselves noted already invest and and I on UTI in so that QX QX. And adding money in my initially to do. going the throughout comments results, And

the Martinuzzi Street. comes next And Eric question with Lake from

guide about, the FY that of investment what's 'XX? on that of that it 'XX? for this upside a from of to year-end of midpoint at the rolling the this million, that nearly new now sort of $XXX of concerted up I incremental a taking result was $XXX -- Is talked around is Or Yes. result XXXX The you . -- the to driving up the bump in programs guide, primarily think million. it

we as our the bring than looking is further right, both, a more And started to the is we're laid had bit programs actually sort minimum short we up that in full XX of it's X bullish for that length out and then short Well, X bringing that we that. when XXXX. ability courses Concorde you heard, year programs are or on at initially exceeded in that

So if were the to the probably and half, of numbers more I half. few We concord can out the we half starts in anticipated year. in think hundred we cut earlier it's than A programs. then new same drive those and

Got you.

all price maybe then see And definitely quickly the or can share I due in you at thinking in a a time of results here, bump don't your in election. Okay. the But line term think your the is with a benefit medium on mind benefit in what's how here. fundamentals taking Republicans control of But UTI? you recently there to the your for the potential

in getting keep us there around XX% above Washington. control say we situations, is what control on what around goes all, say of The bump which the We And a these them in fray the stock. jobs first continue XX% Yes, year. always I things superior view Washington. the on to of Well, country. outcomes, we're the of campuses graduating don't what our in to focus of kids, was going any of I'll to first in goes Yes. our the on of that XX%

of that like. sentiment the the of and out rhetoric Education potentially the is there dismantling I with think Department

really but the phase some been stock a in that into field, so, institution moving that environment moved primary materializes a direction. there of issue, coming next we'll out playing is mindset sentiment tax for something in continue I the see Washington. which see what are. that over we've of the the was outcomes favorable for that And we're year is talking educational while, where an think about quite where even we Generally looking think the should status to shift I we're isn't if speaking, the or

Riley. question from Sharma B. next the with Raj comes And

more? from the change -- efforts? fiscal lobbying of and I as change caller but Trump on Any on, -- Congratulations expenses? wanted the you up you on on commented on expenses. do know I exceeding SG&A in less any in up corporate pushed oversight 'XX. headwinds your any any expect on administration the -- follow guide Or get And regulatory sort you a your the expect they the already to on earlier do wind push

for I'm anticipating a change in this. our SG&A nor with I have not significant budgeted associated

dynamics is Raj, the the level there tends of in when Democratic be the on. there, the at Party, then the Illinois there states, Republican to blue of of in hands New when the action level, the Education of that One that the Department party, Jersey. state Department right? is California, the of And state especially tends more the action goes hands less is and Education be to at So

emphasis, I government central to And so the think, it really states. lobbying from shifts just

other at? you mentioned potential that? nursing Any looking add? Are I the know to areas any past or the to that in Concorde. And it. you had then to thoughts around Got add

been focus programs the in at both would Well, organic And excuse Allied think at already program Concorde. are market more inorganic dental continuing And areas we have to we I about out things There means, look certificate that what's for looking born people my quickly. the comments, that. be working were what and is that programs continuing opportunity an out some they have processing, to course of get in is The talking we're when short about is Health might explore we're we nursing. phlebotomy in said and and at -- like quick sterile complement Concorde. to notion me, Yes, and there. for

things or launches the care docket. that studying it's home whether health areas outside health nothing other may at on But be to looking them. we are XXXX in we've already we're enter, those for what's We along veterinary planned lines, of got able even and

certain flow on campus you then plan of number next cash on, Jerome the one I same still the of robust and And guidance, at of the earlier guidance in -- again free seems sort adding a it. are Got 'XX programs. new think fiscal year of use that cash

No.

As to campus The I Heartland actually comments, in in previously the campuses in outlined XXXX. co-branded X announced Fort conquered Myers. going launch we're

a skill the our open. one look candidly, least out open to have really. be And in regulatory way We hurdles, side, -- 'XX. only lease is the locations and every the or that's get X a X matter therefore, to trades one basically going months UTI campus we to at on Energy plan lay of sign reason we'll And Aviation didn't and And those. something in able that's should get -- and and of plan at is is it is of happen our the yet X to that of we like to -- campus out -- X weeks, to the cities

then costs early January lines. the we're on that out supply work, spreading one in months. chain, make our sure our our and along in construction summer So to and things those

we've 'XX we'll to campuses. at as concert to I That's opportunity expect we UTI for And And you 'XX, move what is pretty side a we're going pattern think the soon. 'XX forward. all and . opening look both similar see you what do seen the can but equal so in much on in

Christine. is this And Raj,

it turn takes would campus. a to months think into previous warehouse a reiterate, said I in calls I about just that XX we've

have about $XX to the you comes would which where in 'XX, certainly the from. So think in spend that, start CapEx is million

you 'XX guide. in there guide Or robust that? starts you And in quarter? seems a it. seeing that pretty the is that? Or making that's the then Is any little 'XX, the on that Is part change just just you any are change do for conservative. had lastly starch growth Got

sort overpromise full-length -- UTI and dynamic is well, at XX like launched there's But being to of 'XX, 'XX, Well, programs actually That's the also a one late gate. between thing. we out and those Concorde small. shift X in we there one the right top X X, of programs don't

mid until to rate in And increase of late We 'XX. peak pretty with you programs in in launched it year. to programs so much those come the in in won't you start hit And launched can we're 'XX But of most factors fewer 'XX as as reigniting a the those we're come 'XX. see number those the programs in out and the launching. enrollments, decrease of we see, run

a will there couple So of starts. hundred be only

much And equal X campuses then fuel launches again as 'XX and get will sort of boomeranging 'XX programs as number into But upside. in propellent won't be that of and so into there year to be then it previous with the 'XX. we

next from comes with question Our Truist. Jasper Bibb

balance we I about Or at wanted fiscal the should Concorde might fairly the of UTI the all? weighting 'XX even think expansion across . and the shift in segments? do EBITDA guidance think being to margin ask that growth investments you about margin

it's So I think great question. a

the the think because likely campuses little Concorde as you Concorde. in expansion, for investing see a on side new I not margin stronger we're much

Campus the start by well. going to campuses X forward, being in We'll expenditure is UTI hiring the some XXXX the funded Heartland start -- on as late actually spending to you As on the the in way. Heartland know, Heartland take capital we're whereas move likely out people side, of

being the Concorde could year, on started uptake probably see as the Concorde for full slightly really stronger now so Also looking where second well. at the -- expansion margin find we we side. And on

think 'XX we when that approaching can we're said EBITDA mid-teens acquired margin Well, there said, acquired X% what them, them, is we they [ were you we somewhere get we we in within them in to at As an already. see first about and the the months. when we ]

into next did and And QX pay also of lot we go hard work a so going dividends year. is of and a lot through year to we of as that the

wanted the just were follow-up have in the there. confirm then to I And And 'XX I program in prepared many a plans launches new fiscal remarks? how

past, that of some said please So we've We've of the material. investor X of that. it, in et is whether the And to average cetera, look we've what do and at programs. of would start one what around the things what full some costs XXX get out students, XXX can it's it you call to representation got we on so the we sort got length for modeling

right? getting to the at I across the long And But X see to look may Jacksonville tech that non-title tracking and really one of we've this surgical and you we take sometime the the on short Phlebotomy, that it got we're take assisting that, campuses. money, across working to those the or which in program, program. in nursing come proliferate IV into the course of UTI very The sterile a those short on vocational the big of as will are closely students more then think we're longer a is and launch the getting is a short short to of number we're moving and not X want those So move And then So come on they courses. the Concorde X courses into year. metal in a go field, people the and the taking middle in top nursing launching phlebotomy program, again, processing gateway right? one Concorde. then to of side aggressively courses ways

we're people toe in And great that to water dip And terms significant portion the care. moving are the in a seeing so into on of for their it's courses. what health longer way now is a

So it's help as going to well. efforts recruiting our

guess [ than gotten is in X the, restrictions a higher you the that kind I North really was of Star comp least there. like some guess, even and the Right. [ haven't targets expansions of at of bit little ] X into ] with I the

quite depends potentially an this a you do of Star as as you [indiscernible] if bit X than characterize more year as of it you So that North there? and baseline, do kind part investment view or plus a

of the Well, North the Star investment the this is next beginning of plan.

And of the at restrictions. generally the because think, of even period. least UTI speaking, gotten X on growth your haven't on consistently side, pretty the point, into we number similar I over you count to the programs, can

into same right? 'XX, We wouldn't And even comes the as again, until beyond And and launching 'XX But accelerate any of we likely the conquered then late won't we'll to party. 'XX dental pretty Heartland Concorde with when campuses get Concorde the where the at which from hygiene until on programs, 'XX and think even full-size so into in in working a I that with come to likely of campuses. March continue or up on 'XX are focus can a haven't start and see into is their their you'll funding. to the running campus we dental game to launches, standpoint, program gotten more from so assistant right,

Our next question comes from Alex Paris with Barrington Research.

but had have it was in of asked increased fourth just the been Most answered, a quarter. I follow-ups. Marketing, and couple accelerated and

and about the What it X.X% of can comments advertising this kind you year. in the your at for forward? includes admissions think and down it say full costs prepared marketing supplemental rate? bit? just looking Is was of QX which revenue data, come -- little run the does I and XX.X% Or said new peak a going

to out marketing I efficiencies, and continuing think, we're admission Well, our get spend. of

we a we're as so looking more bigger, our the for those areas, in the opportunities still to gathering and you'll to with we and do them programs as One of some campuses, leads. that also varied of starts think that think get right? about get us UTI will leverage a what million the talked There adding is we're that we campus to kids starting people I are at So in numbers campuses, significant on leverage even market, things out have are we've into get lower of for that fact various a right? And I we past more out we're getting to programs X.X doing. already more see XX,XXX now cost UTI, local the marketing -- the said XX,XXX. brand we marketing We're year of in because bring

admission to on marketing so And forward. see think some spend going continue efficiency I and you'll

field and election Great. regulatory The division the or And is put it. XX-XX, UTI follow-ups of the think you then UTI are industry. what That's neighborhood even playing percentage win realize for to a under proprietary I'm XX%. idea a XX-XX I of forward, regulatory. of as helpful. the calculation the framework a military the students previous I in in of going regard With couple handed school wondering level relief was on a huge admin?

it veteran are in and funding, XX% -- XX%, when high Christine. the calculation, end the front About we that flips the in -- XXs. old XX%. When And about population. over flips me Christine About of military military now. federal right we were XX%. Actually into Thanks, over shot in up XX%. funding our

I where the any concern. we're growth don't a and lot in saturation becomes So we with that about it's talk it's radar, not test. safely the seeing think any and rates get under school the -- we We're a adult because frankly, to nonmilitary under so a high of and pass-fail we're that point safely radar,

Absolutely. number to law XX% regulatory. was the so legislation was as is that under that new a really good opposed calculation. And

But for there don't I that doesn't to know have seem lot a least we'd So of short under issue that Trump, relief way. in be order. at UTI again, either an

October January. side, employment there's of was couple couple gainful there There's in been town. to lawsuits X. effective gainful out employment There's of the delays a administration a On and on new and July a

I'm there but a at remain So be any looking At if this were regulation programs. just that risk UTI and both point, bot might Concorde, wondering, programs portfolio across the unchanged? of

a of risk. There Concorde to are side close couple nudge the the programs line. Nothing on are at that

not tips part earnings. where For of or considered -- instance, because the programs

small around line. couple above the of near. a the because massage combined the programs think students didn't it. of anything But tip we where anywhere think, XXX puts, have close X don't they income we are they them, so And I But got between they else line. therapy that really about have in was to still

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

attending of thank first Well, for today. operator. you, I'd all, like Thank to everyone

in available the once share we again forward and be follow-up week. February Matt always we And will results. when forward so next Christine, and always, speaking our over and look look next As analysts, I first doing to investors few our into days questions for to to quarter we

healthy wish all all calling then, you happy very we'd and in. like Thanks until a for to holiday a season. lot So

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

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