Universal Technical Institute, Inc. operates as a workforce solutions provider of transportation, skilled trades, and healthcare education programs. The company offers quality education and support services for in-demand careers across a number of highly-skilled fields. The company offer the majority of its programs in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs.
Segments
The company operates through two segments, Universa...
Universal Technical Institute, Inc. operates as a workforce solutions provider of transportation, skilled trades, and healthcare education programs. The company offers quality education and support services for in-demand careers across a number of highly-skilled fields. The company offer the majority of its programs in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs.
Segments
The company operates through two segments, Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde).
Universal Technical Institute (UTI)
UTI operates 16 campuses located in nine states and offers a wide range of degree and non-degree transportation and skilled trades technical training programs under brands, such as Universal Technical Institute, Motorcycle Mechanics Institute and Marine Mechanics Institute (collectively, ‘MMI’), NASCAR Technical Institute (‘NASCAR Tech’), and MIAT College of Technology (‘MIAT’). UTI also offers manufacturer specific advanced training programs, which include student-paid electives at the company’s campuses and manufacturer or dealer sponsored training at certain campuses and dedicated training centers. Lastly, UTI provides dealer technician training or instructor staffing services to manufacturers.
Concorde Career Colleges (Concorde)
Concorde operates 17 campuses located in eight states and online, offering degree, non-degree, certificate, and continuing education programs in the allied health, dental, nursing, patient care, and diagnostic fields. The company has designated campuses that offer degree granting programs Concorde Career College; where allowed by State regulation. The remaining campuses are designated as ‘Concorde Career Institute’. Concorde believes in preparing students for their healthcare careers with practical, hands-on experiences, including opportunities to learn while providing care to real patients. Prior to graduation, students will complete a number of hours in a clinical setting or externship, depending upon their program of study.
Business Model and Industry Partnerships
The company serve students, partners, and communities by providing quality education and training for in-demand careers. The company continue to evolve its business model to provide its students with accessible, affordable training with a focus on bringing education to the students at convenient locations.
Market served by UTI
The market for qualified transportation or skilled trades technicians across the programs that UTI offers is large and growing. The United States Department of Labor Bureau of Labor Statistics (‘U.S. DOL BLS’) estimates that an average of approximately 107,300 new job openings, due to growth and net replacements, will exist annually for newly trained technicians in the automotive, diesel, and collision fields through 2033. Additionally, for skilled trades and other transportation programs, the U.S. DOL BLS estimates that an average of 45,800 new job openings for welders, 43,500 new jobs openings for industrial machinery mechanics, 42,500 new job openings in the HVAC industry, 15,200 new job openings for computer-controlled machine tool operators, 13,400 new job openings for avionic technicians, 6,300 new job openings for robotics, 4,600 new job openings for marine and motorcycle technicians, and 2,100 new job openings for wind turbine service technicians will exist annually for new entrants through 2033 in these fields.
Market served by Concorde
The market for qualified healthcare support occupations across the programs that Concorde offers is growing even faster, with the U.S. DOL BLS estimating an annual average of 1,261,100 new jobs annually through 2033. Specifically, the U.S. DOL BLS estimates that an average of 194,500 new job openings for registered nurses, 119,800 new job openings for medical assistants, 54,900 new job openings for dental assistants, 54,000 new job openings for practical and licensed vocational nurses, 47,400 new job openings for pharmacy technicians, 35,300 new job openings for occupational therapy and physical therapist assistants and aides, 26,500 new job openings for diagnostic related technologists and technicians, 24,200 new job openings for clinical laboratory technologists and technicians, 22,800 new job openings for massage therapists, 19,600 new job openings for phlebotomists, and 16,400 new job openings for dental hygienists will exist annually for new entrants through 2033 in these fields.
Recruitment
The company’s student recruitment efforts begin with its commitment to positive outcomes, both for the company’s students and its industry relationships. The company uses a multi-touch media approach across its admissions channels. For UTI, there are three primary admissions channels (high school, adult, and military) to enroll and start students, which involves national and local outreach to generate a high quality and quantity of prospective students. For Concorde, adults are the primary admissions channel, with an emphasis on those prospective adult students within the local proximity to a Concorde campus. To maximize the likelihood of student retention and graduation, the company’s admissions process is intended to identify students who have the desire and ability to succeed in their chosen program. Prior to enrolling, many potential Concorde students complete a test which helps determine their expected success rate in a given program. In addition, the company has established processes to identify students who may be in need of assistance to succeed in and complete their chosen program. To assist these students in graduating, the company employ student service professionals that provide tutoring, and academic, financial, personal, and employment advisement. Additionally, as the company’s campus locations do not offer housing for students, the company has service professionals who leverage third-party relationships and assist its students in finding affordable housing near its campuses.
Business Strategy
The company’s business strategy has three core tenets: to grow the business by more deeply penetrating existing target markets and adding new markets; to diversify the business by adding new locations, programs, and offerings that maximize the lifetime value of the company’s students; and to continually optimize the business by constantly enhancing operational efficiency.
UTI Schools and Programs
UTI offers certificate, diploma, or degree programs at campuses across the United States under the banner of several well-known brands. The majority of the UTI programs are designed to be completed in 30 to 100 weeks. The UTI advanced training programs range from 8 to 26 weeks in duration and are completed subsequent to satisfying the core UTI program requirements. These programs culminate in a certificate, diploma, associate of occupational studies degree, or associate of applied science degree depending on the program and campus. Tuition rates vary by type and length of the company’s programs and the program level, such as core or advanced training.
UTI Programs Offered
Many of the UTI students receive their training in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs. The blended learning model not only increases access for students, but better prepares them to be life-long learners as technicians today perform many day-to-day tasks and continuing education courses online or on a digital device.
UTI Manufacturer Specific Advanced Training (‘MSAT’) Programs
In addition to the program offerings noted above, UTI also offers advanced training programs in the form of manufacturer-paid post-graduate MSAT programs and in the form of student-paid MSAT courses, which may be added as electives to a student’s core automotive, diesel or motorcycle program.
UTI Manufacturer-Paid MSATs
A select number of UTI students are offered manufacturer-paid MSATs, which are paid for by the manufacturer and/or its dealers in return for a commitment by the student to work for a dealer of that manufacturer for a certain period of time upon completion of the program. UTI students who are high performing graduates of an automotive or diesel program may apply to be selected for these programs. The programs range from 8 to 26 weeks in duration. UTI’s manufacturer-paid MSATs are intended to offer in-depth instruction on specific manufacturers’ products, qualifying a graduate for employment with a dealer seeking highly specialized, entry-level technicians with brand-specific skills.
UTI offers the manufacturer-paid MSAT programs using vehicles, equipment, specialty tools, and curricula provided by its manufacturer brand partners, including Mercedes-Benz DRIVE, Peterbilt Technician Institute (PTI), Porsche Technician Apprenticeship Program (PTAP), and Volvo Tekniker Apprenticeship Program.
UTI Student-Paid MSATs
UTI students may participate in student-paid MSAT programs upon successfully completing the necessary core curriculum prerequisites. UTI offers the following student-paid MSAT programs using vehicles, equipment, specialty tools, and curricula provided by and/or developed in collaboration with its manufacturer brand partners: Advanced Training Programs, such as BMW FastTrack, Cummins Engines, Cummins Power Generation, Daimler Trucks Finish First Program, Ford Accelerated Credential Training (FACT), General Motors Technician Career Training, Mopar TEC by Fiat Chrysler Automobiles US LLC, and Toyota Professional Automotive Technician (TPAT), as well as Manufacturer Specific Training Programs comprising American Honda Motor Company, Inc., BMW Motorrad of North America, LLC, Harley-Davidson Motor Company, Kawasaki Motors Corporation, USA, Mercury Marine, Suzuki Motor of America, Inc., Volvo Penta of the Americas, and Yamaha Motor Corporation, USA.
UTI Military Base Programs
In addition to the MSATs noted above, in partnership with the military and select industry partners, UTI has been developing and implementing advanced training programs for transitioning veterans at select military base locations. Military base programs differ from UTI’s traditional MSATs in that the students do not complete the traditional core programs at a UTI campus before entering these advanced training programs. These programs range from 12 to 16 weeks and are available to all men and women transitioning out of the military. Candidates are interviewed and selected for these programs. Additionally, to be considered, candidates must be within six months of their separation dates from the military. There is no tuition cost to the participating service members.
UTI offers military base programs using vehicles, equipment, specialty tools, and curricula provided by and/or developed in collaboration with certain manufacturer brand partners, such as BMW Military Service Technician Education Program; and Penske Premier Truck Group Technician Skills Program.
UTI Affordability and Accessibility
The company focuses on making its training more affordable and accessible for the UTI students through financing options, proprietary loans, institutional and relocation grants, scholarships based on need and merit, and employer sponsored training and tuition reimbursement. During the year ended September 30, 2024, approximately 35% of active UTI students received a UTI-funded scholarship or grant, approximately 39% of active UTI students participated in an ‘in school’ cash payment plan, and approximately 19% of active UTI students received funding from UTI’s proprietary loan program.
In response to growing demand for trained technicians, UTI industry partners and employers are increasingly willing to participate in the UTI students’ cost of education by providing them with scholarship money and relocation assistance to attend school and by offering UTI graduates tuition reimbursement plans and competitive compensation and benefit packages, including signing bonuses, relocation grants, and tool incentives. There are nearly 7,100 employer location incentive opportunities for UTI students, which when made available make the UTI training programs more affordable for students and may provide them with valuable relationships or employment opportunities following graduation.
Concorde Schools and Programs
Concorde offers certificate, diploma, or degree programs in the healthcare field at campuses across the United States under the Concorde Career Colleges or Concorde Career Institute brands. The majority of Concorde’s short and core programs are 8 to 36 weeks in duration. Clinical programs are 60 to 90 week programs. The programs offered culminate in a diploma, associate of applied science degree or associate of science degree depending on the program and campus. Tuition rates vary by type and length of the company’s programs and the program level, such as core or advanced training.
Concorde Programs Offered
Many of Concorde’s students receive their training in a blended training model that combines instructor-facilitated online teaching and demonstrations with hands-on labs. The blended learning model not only increases access for students, but better prepares them to be life-long learners as students today perform many day-to-day tasks and continuing education courses online or on a digital device.
Concorde Affordability and Accessibility
The company focuses on making the Concorde training more affordable and accessible through financing options, institutional and relocation grants, and scholarships based on need and merit. Concorde currently and historically offers certain students retail installment contracts for payment of their tuition that is not covered by federal student financial aid or other funding sources. During the year ended September 30, 2024, approximately 17% of Concorde’s active students received a Concorde-funded scholarship or grant and approximately 68% of Concorde active students received funding through Concorde sponsored retail installment contracts.
Student Enrollment
UTI enrolls students throughout the year with courses typically starting every three to eleven weeks. Concorde enrolls students throughout the year with core terms starting every month and clinical terms starting every ten weeks.
Graduate Employment
The company’s campus-based staff facilitate several career development processes, including instruction and coaching for interview skills, interview etiquette, and professionalism. Additionally, the career services team provides students with reference materials and assistance with the composition of resumes. Finally, the company place emphasis on and devote significant time to assisting students with part-time and graduate job searches.
The company also has centralized departments for each segment whose focus is to build and maintain relationships with potential and existing national employers and develop graduate job opportunities and, where possible, relocation assistance, sign-on bonuses, tool packages, and tuition reimbursement plans with its manufacturer brand partners and other industry employers. Together, the campuses and centralized departments coordinate and host career fairs, industry awareness presentations, interview days, and employer visits to the company’s campus locations. The company’s graduate career services provide its students with a compelling value proposition and enhance the employment opportunities for its graduates and are a competitive differentiator from other education institutions.
Competitors
Within the for-profit education sector, some of the company’s public company competitors are Adtalem Global Education, Inc., American Public Education, Inc., Lincoln Educational Services Corporation, Perdoceo Education Corporation, and Strategic Education, Inc.
Regulatory Environment
The company’s institutions are subject to extensive regulatory requirements imposed by a wide range of federal and state agencies, as well as by institutional and programmatic accreditors. These regulatory requirements cover the vast majority of the company’s operations, including its educational programs, facilities, instructional and administrative staff, administrative procedures, marketing, recruiting, financial operations, and financial condition. These regulatory requirements also affect the company’s ability to acquire, expand or open additional institutions or campuses, to revise or expand its educational programs, and to change its corporate structure and ownership.
The approvals granted by these entities permit the company’s schools to operate and to participate in a variety of government-sponsored financial aid programs that assist students in paying for their education. The most significant of these is the federal student aid programs administered by ED pursuant to HEA Title IV Programs. Generally, to participate in Title IV Programs, an institution must be licensed or otherwise legally authorized to operate in the state where it is physically located, be accredited by an accreditor recognized by ED, be certified as an eligible institution by ED, offer at least one eligible program of education, and comply with other statutory and regulatory requirements.
The company is also subject to oversight by other federal agencies, including the Consumer Financial Protection Bureau (‘CFPB’), the Securities and Exchange Commission (‘SEC’), the Federal Trade Commission (‘FTC’), the Internal Revenue Service and the Departments of Veterans Affairs (‘VA’), Defense (‘DOD’), Treasury, Labor, and Justice.
To operate and offer postsecondary programs, and to be certified to participate in Title IV Programs, each of the company's institutions must obtain and maintain authorization from the state in which it is physically located (Home State).
Some of the company's students receive financial aid from federal sources other than Title IV or VA Programs, such as from the DOD or under the Workforce Innovation and Opportunity Act.
As a postsecondary educational institution, the company is subject to a broad range of consumer protection and other laws, such as recruiting, marketing, the protection of personal information, student financing, and payment servicing, enforced by federal agencies, such as the FTC and CFPB and various state agencies and state attorneys general.
All of the company's campuses are institutionally accredited and are eligible for federal student financial assistance funds under the Higher Education Act of 1965, as amended (HEA), commonly referred to as Title IV Programs, which are administered by the U.S. Department of Education (ED). Many of the company's programs also are eligible for financial aid from federal sources other than Title IV Programs, such as the programs administered by the U.S. Department of Veterans Affairs (VA) and under the Workforce Innovation and Opportunity Act.
History
Universal Technical Institute, Inc. was founded in 1965. The company was incorporated in 1997.
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