From yesterday's earnings call: "As a result, we've started to selectively scale back on our spending and marketing in admissions and this work will continue. At the same time we remain focused on operating our campuses efficiently as possible and making the appropriate adjustments to our cost structure to better align with student populations."
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Admissions has already been hit in June 2016- field and campus have been let go. There were about 45 good people who served UTI let go with only a few weeks of severance. Shame on UTI for burning the good people and giving them a joke of a severance. Where is the media on all this?
Talking to a few friends that are still there, its a nervous situation. People know the next RIF is coming. They love to anounce a reduction in force, get everyone worried then overwork the people left over. The ones that dont get laid off are easy to manuiplate because they are happy to still have jobs.
@H9EOaSs-9hmq, UTI has been on my list of zombie colleges for awhile. There are some schools in front of it (like Everest) and many others behind it in this crash................................https://www.linkedin.com/pulse/for-profit-zombie-college-crash-dahn-shaulis-5980844737412763648?trk=mp-author-card
The stock is in the tank. It will only get worse from here.
They may not go out of business but they will continue to hemorage cash as their campuses remain underutilized. They will not be able to fill seats and operating costs when it comes to the locations can only be controled by cutting payroll costs. Layoffs will happen soon. Maybe after the next earnings call, maybe before.
The race to the bottom has started.
@H9EOaSs-5wkd, I didn't say they wouldn't go out of business. I said that I didn't think it would be soon. They continue to bleed cash and other assets, but they still have some in reserve ($35M in cash and $124M in property as of 12-2015). It will be interesting to see how UTI survives the new gainful employment regulations.............................http://finance.yahoo.com/q/bs?s=UTI+Balance+Sheet&annual
It's not just UTI, the entire career school industry is dead. Every career school out there is down 70% in population from what it was in 2010. WyoTech is down to 2 automotive schools and may soon be down to 1. These 2 schools had 3500 students in 2010 and are now down to 600 students. Many things have caused this downturn in enrollment at career schools. The largest cause is the millennial generation. This has become the entitlement generation that feels everything should be handed to them.
You feel they wont go out of business?
They can and have been replaced by community colleges. In fact, community colleges actually produce a better student because they also require some general education classes. UTI does not require any GEN Ed classes therefore whatever loser student they start with they end with as well. They need to teach their students to not only be pseudo technicians that demand exorbitantly high Pay rates but also you act, speak and present themselves as professionals. Until UTI does that it will never be able to compete with a community college offering a similar program.
UTI has had many chances to correct itself. It's not likely to go out of business soon. What niche does UTI have that cannot be replaced by community colleges?
Well, the stock is in the tank this week. How low will it go?
Will they get kicked off the exchange?
Could UTI be delisted?
Could there be a consolidation?
How long will this drag on before someone tries to save this company from its self? You would think the investors would be pissed. they have lost alot of money.
You are a di----ad.
Please dont blow the excutives cover. There is still time to milk the company for money and give themselves raises.
"Making the appropriate adjustments". Yeah right. Like rearranging the furniture on the Titanic. What difference does it make? Its all downhill from here. There will be a money grab and the VP's will start to run.
POOR, POOR, POOR, U.T.I. No more PROFIT, PROFIT, PROFIT, now its LAYOFF, LAYOFF, LAYOFF, because you know its the staffs fault and not the managements or the VP's or even the P.O.S. CEO that runs the company, once again its the little guy that takes it in the rear, that would be the peon instructors. KIM you suck, you should resign and let the instructors run the school, they couldn't do any worse than your doing.
sincerely, Mr. dic---ad
What happens next?
They still have some money to burn. 50 million in the bank and a worthless stock. What move will they make next? Will a campus close to save money? Norwood is losing big and so is Lisle. To huge campuses is major metropolitan areas they cant even fill to half. That is pretty bad.
Read between the lines. Layoffs are coming.
Its sad that the greed has pushed them to this. They are on a slippery slide.