Universal Technical Institute, Inc. (NYSE:UTI) Q1 2016 Earnings Conference Call - Final Transcript
Feb 04, 2016 • 04:30 pm ET
Hello, and welcome to Universal Technical Institute's First Quarter 2016 Conference Call. [Operator Instructions] A replay of the call will be available for 60 days at www.uti.edu or through February 15, 2016 by dialing 412-317-0088 or 877-344-7529 and entering the passcode 10079751.
At this time, I would like to turn the conference over to Mr. John Jenson, Vice President and Corporate Controller of Universal Technical Institute. Please go ahead.
Hello, and thanks for joining us. With me today are Kim McWaters, Chairman and CEO; and Eugene Putnam, President and CFO. During today's call, we will review the results of our first quarter and then we'll take your questions.
Before we begin, we must remind everyone that except for historical information, today's call may contain forward-looking statements as defined by Section 21-E of the Securities Exchange Act of 1934 and Section 27-A of the Amended Securities Act of 1933. I'll refer you to today's news release for UTI's comments on that topic. The Safe Harbor statement in the release also applies to everything discussed during this conference call, including initial comments by management, as well as answers to your questions.
During today's call, we'll make reference to adjusted EBITDA, which is a non-GAAP measure representing net income, exclusive of interest, income taxes, depreciation and amortization. The schedule provided in the earnings release reconciles EBITDA to the nearest corresponding GAAP measure, net income or loss.
And now, I'd like to turn the call over to Kim McWaters, our Chairman and Chief Executive. Kim?
Thank you, John. Hello everyone, and thanks for joining us on the call today. In a moment, Eugene will walk you through the details of our first quarter results, but first, I'd like to provide a bit of context for the quarter. As we mentioned on our last earnings call, we operate in a very difficult environment with continued economic and regulatory headwinds. This is clearly apparent in our enrollment trends and business results for the past several years as external forces have proved stronger than our internal forces. While we know that 2016 financial results will reflect the cumulative effect of these negative forces from prior years, it also reflects our belief in our future and the essential investments required to create it.
For the quarter, we have an operating loss of $2.2 million, driven by lower student populations at our campuses as well as the opening of our new Long Beach campus, which accounted for $1.4 million of the loss. Clearly, our financial results were not what any of us would like, but they were in line with our expectations given our commitment to invest in the business and grow our student population despite depressed student enrollment and revenues at this time. Against that backdrop, we are focused on implementing the strategies we believe can return us to growth, while managing the business as cost efficiently as possible without negative consequence to our educational quality, our student outcomes and new student growth.
To that end, we continue to