Well today was not a good way to star the week. UTI stock dropped to 1:51 per share and closed at 1:56 per share. They had 805,756 shares moved today.It does not look real positive for the Company.
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Teach out at certain campuses is likely. When you have a 220,000 sq ft facility. under 400 student will not keep it afloat. The curriculum is 10 years dated. The tuition is not worth the value of the education. The students are not ready to work on a 2015 vehicle never mind studying future technologies.
If the fish is rotten, its rotten from the head down. This next earnings call is going to be bad and will take them even further in the tank. How long before the stock is completely worthless?
Sad, I enjoyed working there but it went downhill fast after the financial meltdown and they didnt have the leadership to adjust.
But still they keep Mcwaters that's the very definition of insanity: doing the same thing over and over expecting a different result
Its about time some of those big wigs got shown the door. Hopefully these are not all of them.
The Titanic gets a new crew.
SCOTTSDALE, Ariz., Sept. 26, 2016 /PRNewswire/ -- Universal Technical Institute, Inc. (NYSE: UTI), the nation's leading provider of transportation technician training, today announced a Financial Improvement Plan with the goal of generating operating income and improved levels of EBITDA in 2017.
The Company expects the Plan to better align its corporate structure with its current student population, while better positioning UTI for success and future growth. As a part of the Plan, the Company will flatten the organization, streamline its business processes and implement cost-saving initiatives, without compromising the quality of education and service it provides to students and industry customers. UTI expects the Plan to deliver $25 to $30 million in annualized cost savings coming from a reduction in our workforce consisting primarily of corporate positions, changes to our marketing strategy and admissions structure as previously disclosed and a number of process improvement initiatives. In addition, it expects to record a severance charge of approximately $4 million in the fiscal quarter ending September 30, 2016.
"Ultimately, this Plan is about enabling investment in UTI's strengths - our students, our industry partners that hire them, and our dedicated employees who serve them. Continued challenges in the operating environment have prompted us to reevaluate how we maintain high quality education and strong student outcomes, while returning UTI to profitability and growth. This Plan is intended to drive value for all of the stakeholders in UTI, and in combination with our recently announced financing, we have the financial stability and organizational alignment to be opportunistic in the current environment and position UTI for success," said Kim McWaters, UTI's Chairman and Chief Executive Officer.
As part of the Plan, Eugene Putnam, UTI's President and Chief Financial Officer will leave UTI, effective November 30, 2016. To ensure a seamless transition, Mr. Putnam will continue to support the Company through the 2016 fiscal year-end financial reporting cycle. Bryce Peterson, UTI's Senior Vice President of Information Technology, has been promoted to Chief Financial Officer, effective immediately. Mr. Peterson has served the company in a senior leadership capacity since 2011 and was previously identified as a successor for the company's CFO. Mr. Peterson is a certified public accountant and brings valuable experience as an auditor at KPMG and as the former Vice President of Internal Audit at UTI. Kim McWaters, UTI's Chairman and Chief Executive Officer, will assume the President's role and title.
In addition, Chad Freed, the Company's Executive Vice President and General Counsel, is returning to private practice with a law firm in Phoenix where he will continue to manage the Company's legal needs as its outside General Counsel. Mr. Freed's direct employment with UTI will end November 30, 2016.
"I want to thank those leaving the Company for their significant contributions to UTI," said Kim McWaters. "In particular, I want to recognize Eugene and Chad, not only for their dedication and service to UTI, but also for their willingness to assist the Company as we move through this transition to become a leaner organization. They are true professionals and I greatly appreciate their important contributions to UTI," McWaters concluded.
Email from Kim - RIF tomorrow.
That place is hosed. 1.56? Thats less than 10% of the IPO and 5% of what it once traded for. Investors got screwed. Even the penny stock bottom feeders will loose their a-- on this.
I bet that chump that dumped 70m into this place is kicking himself in the a-- for this bad deal. Like buying a seat on the Titanic isnt it. Seemed like a good idea until your feet got wet. Hope you get a spot in a UTI lifeboat when that ship sinks. Then again, consider the company. I would rather drown that have to float around with those turds.