Universal Technical Institute, Inc. (NYSE:UTI) Q4 2019 Earnings Conference Call - Final Transcript

Dec 02, 2019 • 04:30 pm ET

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Universal Technical Institute, Inc. (NYSE:UTI) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the UTI Fiscal Fourth Quarter and Full Year 2019 Earnings Call. [Operator Instructions] A replay of the call will be available for 90 days at www.uti.edu or through January 2nd, by dialing 412-317-0088 or 877-344-7529 and entering the passcode 10136811.

At this time, I'd like to turn the conference over to Ms. Jody Kent, Vice President of Communications and Public Affairs for Universal Technical Institute. Please go ahead.

Executive
Jody Kent

Hello, and thanks for joining us. With me today are our recently appointed CEO and CFO, Jerome Grant; and Troy Anderson. During the call today, we'll update you on our fiscal fourth quarter and full year 2019 business highlights, our financial results and our vision for the future.

Before we begin, we must remind everyone that except for historical information, today's call may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934 and Section 27A 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. As a reminder, UTI operates a fiscal year ending September 30, all references to date herein are on a fiscal year basis, unless otherwise indicated.

During today's call, we'll refer to adjusted operating income or loss, adjusted EBITDA, free cash flow and adjusted free cash flow, which are non-GAAP measures. Adjusted operating income or losses is income or loss from operations, adjusted for items that affect trends in underlying performance from year-to-year and are not considered normal recurring cash operating expenses. Adjusted EBITDA is net income or loss before interest expense, interest income, income taxes, depreciation, amortization and adjusted for items not considered as part of the company's normal recurring operations.

Adjusted free cash flow is net cash provided by or used in operating activities less capital expenditures, adjusted for items not considered as part of the company's normal recurring operations. Management uses adjusted operating income and loss, adjusted EBITDA and adjusted free cash flow as performance measures internally, and those figures will be the figures discussed on today's call.

Starting with the third quarter of fiscal 2019 and through fiscal 2020, we will report operating metrics such as student applications and starts, excluding our Norwood, Massachusetts campus. As we have shared previously, Norwood stopped accepting new student applications in the second quarter of fiscal 2019, and will fully close before the end of fiscal year 2020. So we believe it is appropriate to exclude its impact.

It is now my pleasure to turn the call to Jerome Grant.

Executive
Jerome A. Grant

Thank you, Jody. Good afternoon, everyone, and thank you all for joining us today. Let me start by saying how honored I am to take the helm of this great company. And I want to thank Kim McWaters for her leadership, unwavering confidence and partnership. As Kim will remain on our Board of Directors, I look forward to continuing to work with