UNIVERSAL TECHNICAL INSTITUTE INC
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
UTI$19.93+1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-06.
0001261654-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001261654-25-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 117 previous paragraphs and 165 current paragraphs.
55 unchanged; 62 reworded; 35 added; 0 removed; 0 previous and 13 current paragraphs rearranged.
Tables are not compared: 8 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
•UTI announced the division’s second new campus will be in San Antonio, Texas (“UTI San Antonio”). This new campus, once open, will be our first skilled trades and energy education focused campus. Similar to above, pending regulatory approvals, UTI San Antonio will open in 2026, bringing the total number of UTI campuses nationwide to 17.
Current report
Compensation and related costs increased by $2.2 million for the three months ended March 31, 2025, primarily due to instructors and other personnel hired to support the newly launched programs and overall growth in the student population.
Current report
Advertising and marketing expense increased year over year by $1.9 million. UTI advertising and marketing expense as a percentage of revenues increased to 11.8% for the three months ended March 31, 2025 as compared to 11.3% in the prior year.
Current report
Other selling, general and administrative expenses decreased by $1.5 million for the three months ended March 31, 2025 primarily due to $2.4 million higher corporate expenses related to human resources and information technology allocated to the UTI and Concorde segments due to overall increase in expenses compared to the prior period. This decrease is partially offset by a $0.5 million increase in software expense and a $0.3 million increase in employment advertising.
Current report
There was no preferred stock cash dividend for the three months ended March 31, 2024.
Current report
Results of Operations: Six Months Ended March 31, 2025 Compared to Six Months Ended March 31, 2024
Current report
Revenues
Current report
Revenues for the six months ended March 31, 2025 were $408.9 million, an increase of $50.0 million, or 13.9%, as compared to revenues of $358.9 million for the six months ended March 31, 2024.
Current report
UTI
Current report
Revenues for UTI for the six months ended March 31, 2025 were $265.7 million compared to $238.7 million in the prior year period. Revenue increased primarily due to a 23.1% increase in new student starts and a 7.5% increase in average full-time active students from the prior period. This increase in revenue is also related to an overall increase in average revenue per student.
Current report
Revenues for Concorde for the six months ended March 31, 2025 were $143.2 million compared to $120.2 million in the prior year period. Revenues increased primarily due to an 20.3% increase in new student starts and a 16.0% increase in average full-time active students from the prior period.
Current report
Educational services and facilities expenses
Current report
UTI
Current report
Depreciation and amortization expense increased by $0.9 million for the six months ended March 31, 2025 primarily due to increased capital expenditures related to the new program launches and expansions.
Current report
Compensation and related costs increased by $7.4 million for the six months ended March 31, 2025 primarily due to increased instructors and other personnel hired to support overall growth in the student population and new program expansions.
Current report
Depreciation and amortization expense increased by $1.0 million during the six months ended March 31, 2025, primarily due to capital expenditures related to new equipment and leasehold improvements to support a higher volume of students.
Current report
Other educational services and facilities expense increased by $1.4 million during the six months ended March 31, 2025, primarily due to higher expense for training aids and insurance.
Current report
Selling, general and administrative expenses
Current report
Selling, general and administrative expenses for the six months ended March 31, 2025 were $161.9 million. This represents an increase of $18.4 million, as compared to $143.6 million for the six months ended March 31, 2024, which is primarily due to costs associated with our business strategies.
Current report
UTI
Current report
Compensation and related costs increased by $2.9 million for the six months ended March 31, 2025 primarily due to an increase in headcount to support the UTI segment and execution of our business strategies.
Current report
Other selling, general and administrative expenses increased by $4.5 million for the six months ended March 31, 2025 primarily due to a $3.2 million increase in allocated corporate expenses related to human resources and information technology due to growth in headcount to support the UTI segment and our business strategies. Additionally, the provision for credit losses increased by $2.1 million over the prior year as a result of higher revenue and student volumes.
Current report
Concorde compensation and related costs decreased by $0.5 million for the six months ended March 31, 2025 primarily due to continued integration activities and the centralization of more processes within the Corporate division.
Current report
Advertising and marketing expense increased by $2.1 million for the six months ended March 31, 2025. Advertising and marketing expense as a percentage of revenues decreased to 10.7% for the six months ended March 31, 2025 as compared to 10.9% in the prior year period.
Current report
Other selling, general and administrative expense increased by $4.2 million for the six months ended March 31, 2025 primarily related to an increase in the provision for credit losses of $2.8 million, an increase in software expenses of $0.8 million, and an increase in allocated corporate expenses related to human resources of $0.4 million. These increases are aligned with higher revenue and higher capital expenditures to support larger student volumes.
Current report
Corporate
Current report
Corporate compensation and related costs for increased by $4.8 million for the six months ended March 31, 2025 primarily due to additional headcount hired to support the execution of our business strategies.
Current report
Professional and contract services expense increased by $2.3 million for the six months ended March 31, 2025 due to an increase in consulting expenses of $1.0 million and an increase in legal expenses of $1.3 million.
Current report
Income taxes
Current report
Preferred stock dividends
Current report
Income available for distribution
Current report
Income allocated to participating securities
Current report
After allocating the income to the participating securities, we had $33.6 million and $14.2 million of net income available to common shareholders for the six months ended March 31, 2025 and 2024, respectively.
Current report
•The change in receivables used cash of $11.3 million and was primarily due to the timing of Title IV disbursements and other cash receipts on behalf of our students.
Current report
•The increase in notes receivable used cash of $4.4 million primarily due to higher utilization of the Tuition Loan Program.
Reworded paragraphs (62)
Previous wording
Concorde Career Colleges (“Concorde”): Concorde operates across 17 campuses in eight states, 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 as “Concorde Career College” where allowed by state regulation. The remaining campuses are designated as “Concorde Career Institute.” Concorde believes in preparing students for their health care 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.
Current wording
Concorde Career Colleges (“Concorde”): Concorde operates across 17 campuses 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 as “Concorde Career College” where allowed by state regulation. The remaining campuses are designated as “Concorde Career Institute.” Concorde believes in preparing students for their health care 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.
Previous wording
All of our campuses are accredited and are eligible for federal student financial assistance funds under the Higher Education Act of 1965, as amended, commonly referred to as Title IV Programs, which are administered by the U.S. Department of Education. Our programs are also 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 and under the Workforce Innovation and Opportunity Act.
Current wording
All of our campuses are accredited and are eligible for federal student financial assistance funds under the Higher Education Act of 1965, as amended, commonly referred to as Title IV Programs, which are administered by the U.S. Department of Education (“ED”). Our programs are also 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 and under the Workforce Innovation and Opportunity Act.
Previous wording
Overview of the Three Months Ended December 31, 2024
Current wording
Overview of the Three and Six Months Ended March 31, 2025
Previous wording
For the three months ended December 31, 2024, the increase in consolidated total and segment new student starts, average full-time active students and end of period full-time active students was primarily due to new program rollouts and increased student demand for existing programs across both segments as compared to the prior year. In the UTI segment, increases to our student population during the three months ended December 31, 2024 were driven by the successful launch of three new HVAC and refrigeration programs launched in the second half of fiscal 2024. The Concorde segment benefited from the launch of five new programs at three campuses during fiscal 2024, and the introduction of new cash pay “short programs” at a number of campuses.
Current wording
For the three and six months ended March 31, 2025, the increase in consolidated and segment new student starts, average full-time active students and end of period full-time active students was primarily due to new program rollouts and increased student demand for existing programs across both segments as compared to the prior year. In the UTI segment, increases to our student population during the three and six months ended March 31, 2025 were driven by the successful launch of three new HVAC and refrigeration programs launched in the second half of fiscal 2024 and two new HVACR programs in fiscal 2025. The Concorde segment benefited from the launch of five new programs at three campuses during fiscal 2024, and the introduction of new cash pay “short programs” at a number of campuses.
Previous wording
Revenues for the three months ended December 31, 2024 were $201.4 million, an increase of $26.7 million, or 15.3%, from the comparable period in the prior year. UTI revenues increased by approximately $16.1 million, or 14.0%, and Concorde revenues increased by approximately $10.6 million, or 17.9%. Both segment increases were primarily driven by the higher average full-time active students.
Current wording
Revenues for the three months ended March 31, 2025 were $207.4 million, an increase of $23.3 million, or 12.6%, from the comparable period in the prior year. UTI revenues increased by approximately $10.9 million, or 8.8%, and Concorde revenues increased by approximately $12.4 million, or 20.3%. Both segment increases were primarily driven by the higher average full-time active students.
Previous wording
Total income from operations was $27.5 million during the three months ended December 31, 2024, compared to $14.2 million for the three months ended December 31, 2023. The increase for the three months ended December 31, 2024 was primarily driven by the increased revenues from the larger student population. Additionally, productivity improvements and proactive cost reductions have been a key part of our operating model for the past several years, and we continue to identify and execute on optimization opportunities throughout our operations in both segments.
Current wording
Total income from operations was $16.9 million and $44.3 million during the three and six months ended March 31, 2025, compared to $11.2 million and $25.4 million for the three and six months ended March 31, 2024. The increase for the three and six months ended March 31, 2025 was primarily driven by the increased revenues from the larger student population. Additionally, productivity improvements and proactive cost reductions have been a key part of our operating model for the past several years, and we continue to identify and execute on optimization opportunities throughout our operations in both segments.
Previous wording
During the three months ended December 31, 2024, we executed the following as part of our business strategy:
Current wording
During the six months ended March 31, 2025, we executed the following as part of our business strategy:
Previous wording
•UTI has announced Atlanta, Georgia as the location of its next UTI division campus, continuing the company's execution of its North Star strategy. Pending regulatory approvals, the UTI-Atlanta campus will open in 2026, bringing the total number of UTI campuses nationwide to 16.
Current wording
•UTI announced Atlanta, Georgia as the location of its next UTI division campus (“UTI Atlanta”), continuing the company's execution of its North Star strategy. Pending regulatory approvals, UTI Atlanta will open in 2026.
Previous wording
•Concorde signed a new lease agreement related to our partnership with Heartland Dental to construct a new co-branded campus in Fort Myers, Florida, which is expected to open in early fiscal 2026.
Current wording
•Concorde signed a new facility lease agreement related to our partnership with Heartland Dental to construct a new co-branded campus in Fort Myers, Florida, which is expected to open in early fiscal 2026. Construction began during the second quarter of 2025.
Previous wording
•UTI has announced the expansion of its successful Manufacturer Specific Advanced Training program by adding Tesla's START Collision Repair program. Tesla's START program is an intensive training program that prepares workers for successful careers at Tesla and will be will be available at the Long Beach, California campus beginning in Spring 2025.
Current wording
•UTI has announced the expansion of its successful Manufacturer Specific Advanced Training program by adding Tesla's START Collision Repair program. Tesla's START program is an intensive training program that prepares workers for successful careers at Tesla and will be will be available at the Long Beach, California campus beginning in the third quarter of 2025.
Previous wording
•UTI announced plans to launch its HVACR program at the Sacramento, California and Orlando, Florida campuses with the first cohort of students expected to start during the second quarter of 2025. The program will cover topics such as air handling, AC and DC circuits, sheet metal ductwork, and troubleshooting.
Current wording
•UTI launched its HVACR program at the Sacramento, California and Orlando, Florida campuses in March 2025. The program covers topics such as air handling, AC and DC circuits, sheet metal ductwork, and troubleshooting.
Previous wording
•UTI announced the expansion of its core automotive program to include new Battery Hybrid Electric Vehicle and Electric Vehicle (“EV”) courses with roll out completed during the first quarter of 2025 at the Avondale, Arizona and Orlando, Florida campuses. Further rollout at five additional campuses is expected during the second and third quarters of 2025. This expansion builds on existing EV training at UTI's California campuses and covers topics such as high-voltage vehicle operation, electric vehicle components, diagnosis, and service.
Current wording
•UTI announced the expansion of its core automotive program to include new Battery Hybrid Electric Vehicle and Electric Vehicle (“EV”) courses with roll out completed during the first quarter of 2025 at the Avondale, Arizona and Orlando, Florida campuses. Further rollout was completed during the second quarter of 2025 at the following campuses: Bloomfield, New Jersey; Dallas, Texas; Austin, Texas; and Houston, Texas. The program is expected to launch at the Miramar, Florida campus during the third quarter of 2025. This expansion builds on existing EV training at UTI's California campuses and covers topics such as high-voltage vehicle operation, electric vehicle components, diagnosis, and service.
Previous wording
Revenues for the three months ended December 31, 2024 were $201.4 million, an increase of $26.7 million, or 15.3%, as compared to revenues of $174.7 million for the three months ended December 31, 2023.
Current wording
Revenues for the three months ended March 31, 2025 were $207.4 million, an increase of $23.3 million, or 12.6%, as compared to revenues of $184.2 million for the three months ended March 31, 2024.
Previous wording
Revenues for UTI for the three months ended December 31, 2024 were $131.5 million compared to $115.4 million in the prior period. Revenue increased primarily due to a 19.0% increase in new student starts and an 8.0% increase in average full-time active students from the prior period.
Current wording
Revenues for UTI for the three months ended March 31, 2025 were $134.2 million compared to $123.3 million in the prior period. Revenue increased primarily due to a 26.4% increase in new student starts and an 7.0% increase in average full-time active students from the prior period.
Previous wording
Revenues for Concorde for the three months ended December 31, 2024 were $70.0 million compared to $59.3 million in the prior period. Revenues increased primarily due to a 26.0% increase new student starts and a 16.4% increase in average full-time active students from the prior period.
Current wording
Revenues for Concorde for the three months ended March 31, 2025 were $73.2 million compared to $60.9 million in the prior period. Revenues increased primarily due to a 15.9% increase new student starts and a 15.5% increase in average full-time active students from the prior period.
Previous wording
Educational services and facilities expenses were $100.1 million for the three months ended December 31, 2024, as compared to $92.4 million for the three months ended December 31, 2023. This increase was primarily due to the increased student volumes during the period and costs associated with execution of our business strategies, partially offset by cost savings from our operational initiatives.
Current wording
Educational services and facilities expenses were $102.5 million for the three months ended March 31, 2025, as compared to $97.5 million for the three months ended March 31, 2024. This increase was primarily due to the increased student volumes during the period and costs associated with execution of our business strategies, partially offset by cost savings from our operational initiatives.
Previous wording
Supplies, maintenance and student expense decreased by $2.7 million for the three months ended December 31, 2024, primarily due to a decrease of $2.9 million in student housing expenses.
Current wording
Supplies, maintenance and student expense decreased by $1.6 million for the three months ended March 31, 2025, primarily due to a decrease of $1.6 million in student housing expenses.
Previous wording
Compensation and related costs increased by $4.4 million for the three months ended December 31, 2024, primarily due to instructors and other personnel hired to support overall student growth and the launch of additional programs.
Current wording
Compensation and related costs increased by $2.9 million for the three months ended March 31, 2025, primarily due to instructors and other personnel hired to support overall student growth and the launch of additional programs.
Previous wording
Depreciation and amortization expense increased by $0.5 million for the three months ended December 31, 2024, primarily due to capital expenditures related to new equipment for the program expansions.
Current wording
Depreciation and amortization expense increased by $0.8 million during the three months ended March 31, 2025, primarily due to capital expenditures related to new equipment, leasehold improvements, and program expansions to support a higher volume of students.
Previous wording
Other educational services and facilities expense increased during the three months ended December 31, 2024 by $0.6 million primarily due to higher expense for teaching aids in the current period.
Current wording
Other educational services and facilities expense increased by $0.8 million during the three months ended March 31, 2025, primarily due to higher expenses for training aids and insurance.
Previous wording
Selling, general and administrative expenses for the three months ended December 31, 2024 were $73.8 million, as compared to $68.1 million for the three months ended December 31, 2023. This increase was primarily due to costs associated with our business strategies.
Current wording
Selling, general and administrative expenses for the three months ended March 31, 2025 were $88.1 million, as compared to $75.5 million for the three months ended March 31, 2024. This increase was primarily due to costs associated with our business strategies.
Previous wording
Compensation and related costs increased by $1.7 million for the three months ended December 31, 2024 primarily due to additional headcount hired to support the UTI segment and execution of our business strategies.
Current wording
Compensation and related costs increased by $1.2 million for the three months ended March 31, 2025 primarily due to additional headcount hired to support the UTI segment and execution of our business strategies.
Previous wording
Other selling, general and administrative expenses increased by $1.3 million primarily due to higher allocated corporate expenses related to human resources and information technology. This increase is aligned with the growth in headcount to support the UTI segment and our business strategies.
Current wording
Other selling, general and administrative expenses increased by $3.2 million primarily due to a $2.1 million increase in allocated corporate expenses related to human resources and information technology due to growth in headcount to support the UTI segment and our business strategies. Additionally, the provision for credit losses increased by $1.6 million over the prior year as a result of higher revenue and student volumes.
Previous wording
Compensation and related costs decreased by $0.5 million for the three months ended December 31, 2024 primarily due to the centralization of more processes at Corporate.
Current wording
Compensation and related costs decreased by $0.1 million for the three months ended March 31, 2025 primarily due to continued integration activities and the centralization of more processes within the Corporate division.
Previous wording
Advertising and marketing increased year over year by $1.3 million. Concorde advertising and marketing expense as a percentage of revenues for the three months ended December 31, 2024 and 2023 was 10.5% and 10.3%, respectively.
Current wording
Advertising and marketing increased year over year by $0.9 million. Concorde advertising and marketing expense as a percentage of revenues for the three months ended March 31, 2025 and 2024 was 10.8% and 11.6%, respectively.
Previous wording
Professional and contract services expense decreased by $0.6 million for the three months ended December 31, 2024 primarily due to a reduction of outside service expenses as much of the integration activities were completed in the prior year.
Current wording
Professional and contract services expense decreased by $1.5 million for the three months ended March 31, 2025 primarily due to a reduction of legal and outside service expenses as several of the integration activities were completed in the prior year.
Previous wording
Other selling, general and administrative expenses increased by $1.0 million for the three months ended December 31, 2024 primarily related to an increase in software expenses of $0.3 million and an increase in depreciation of $0.4 million due to capital expenditures for integration related items in the prior year.
Current wording
Other selling, general and administrative expenses increased by $3.2 million for the three months ended March 31, 2025 primarily related to an increase in the provision for credit losses of $2.7 million and an increase in software expenses of $0.4 million. These increases are aligned with higher revenue and higher capital expenditures to support larger student volumes.
Previous wording
Compensation and related costs increased by $1.1 million three months ended December 31, 2024 primarily due to additional headcount hired to support the execution of our business strategies.
Current wording
Compensation and related costs increased by $3.7 million three months ended March 31, 2025 primarily due to additional headcount hired to support the execution of our business strategies.
Previous wording
Professional fees and contract services increased by $1.2 million for the three months ended December 31, 2024 primarily due to higher legal expenses of $1.1 million.
Current wording
Professional fees and contract services increased by $1.1 million for the three months ended March 31, 2025 primarily due to consulting costs incurred for a potential acquisition of $0.9 million.
Previous wording
Income tax expense for the three months ended December 31, 2024 was $5.4 million, or 19.5% of pre-tax income, compared to $3.2 million, or 23.3% of pre-tax income, for the three months ended December 31, 2023. The effective income tax rate for the three months ended December 31, 2024 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, stock-based compensation expense, federal research and development tax credits and state and local income and franchise taxes. The effective income tax rate for the three months ended December 31, 2023 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, federal research and development tax credits and state and local income and franchise taxes. See Note 11 of the notes to the condensed consolidated financial statements herein for additional details.
Current wording
Income tax expense for the three months ended March 31, 2025 was $5.4 million, or 32.0% of pre-tax income, compared to $2.8 million, or 26.2% of pre-tax income, for the three months ended March 31, 2024. The effective income tax rate for the three months ended March 31, 2025 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, stock-based compensation expense, refinements to the federal research and development tax credits and state and local income and franchise taxes. The effective income tax rate for the three months ended March 31, 2024 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, federal research and development tax credits and state and local income and franchise taxes. See Note 12 of the notes to the condensed consolidated financial statements herein for additional details.
Previous wording
Income available for distribution refers to net income reduced by dividends on our Series A Preferred Stock. As a result of the foregoing, we reported income available for distribution of $22.2 million for the three months ended December 31, 2024 and income available for distribution of $9.3 million for three months ended December 31, 2023.
Current wording
Income available for distribution refers to net income reduced by dividends on our Series A Preferred Stock. As a result of the foregoing, we reported income available for distribution of $11.4 million for the three months ended March 31, 2025 and income available for distribution of $7.8 million for three months ended March 31, 2024.
Previous wording
We had net income of $22.2 million and $6.4 million available to common shareholders for the three months ended December 31, 2024 and 2023, respectively.
Current wording
We had net income of $11.4 million and $7.8 million available to common shareholders for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
Compensation and related costs increased by $4.0 million for the three months ended December 31, 2024, primarily due to instructors and other personnel hired to support the new programs added and overall growth in the student population.
Current wording
Compensation and related costs increased by $6.2 million for the six months ended March 31, 2025 primarily due to instructors and other personnel hired to support the new programs added and overall growth in the student population.
Previous wording
Advertising and marketing expense remained relatively flat year over year. UTI advertising and marketing expense as a percentage of revenues decreased to 10.4% for the three months ended December 31, 2024 as compared to 11.6% in the prior year.
Current wording
Advertising and marketing expense increased by $2.3 million for the six months ended March 31, 2025. Advertising and marketing expense as a percentage of revenues decreased to 11.1% for the six months ended March 31, 2025 as compared to 11.4% in the prior year.
Previous wording
Other selling, general and administrative expenses decreased by $1.3 million for the three months ended December 31, 2024 primarily due to higher corporate expenses allocated to the UTI and Concorde segments due to overall increase in expenses compared to the prior period.
Current wording
Other selling, general and administrative expenses decreased by $2.8 million for the six months ended March 31, 2025 primarily due to $3.6 million higher corporate expenses related to human resources and information technology allocated to the UTI and Concorde segments due to an overall increase in expenses compared to the prior period. This decrease is partially offset by a $0.7 million increase in software expense.
Previous wording
Pursuant to the Certificate of Designations of the Series A Preferred Stock, we recorded a preferred stock cash dividend of $1.1 million for the three months ended December 31, 2023.
Current wording
Pursuant to the Certificate of Designations, we recorded a preferred stock cash dividend of $1.1 million for the six months ended March 31, 2024.
Previous wording
As noted above, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date. As such, there was no income allocated to participating securities for the three months ended December 31, 2024. For the three months ended December 31, 2023, there was $2.9 million of income allocated to participating securities.
Current wording
As noted above, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date. There was no income allocated to participating securities for the six months ended March 31, 2025. The amount of income allocated to the participating securities for the six months ended March 31, 2024 was $2.9 million.
Previous wording
Our earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the three months ended December 31, 2024 were $35.4 million, compared to $21.4 million for the three months ended December 31, 2023. We define EBITDA as net income (loss), before interest (income) expense, income tax expense (benefit), and depreciation and amortization.
Current wording
Our earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the three and six months ended March 31, 2025 were $25.0 million and $60.4 million, respectively, compared to $18.5 million and $39.9 million for the three and six months ended March 31, 2024. We define EBITDA as net income (loss), before interest (income) expense, income tax expense (benefit), and depreciation and amortization.
Previous wording
Our aggregate cash and cash equivalents were $172.0 million as of December 31, 2024, an increase of $10.1 million from September 30, 2024 due primarily to cash provided by operating activities of $23.0 million, offset by cash used for purchases of property and equipment of $3.3 million, net repayments of $5.0 million to the revolving credit facility and payment of payroll taxes on stock-based compensation of $4.3 million. We also had available liquidity under the Revolving Credit Facility of $74.0 million as of December 31, 2024.
Current wording
Our aggregate cash and cash equivalents were $96.0 million as of March 31, 2025, a decrease of $65.9 million from September 30, 2024 due primarily to cash used for purchases of held-to-maturity investments of $39.7 million and repayments of $31.3 million to the Revolving Credit Facility, term loans and finance leases. Our available liquidity under the Revolving Credit Facility was $99.0 million as of March 31, 2025.
Previous wording
As of December 31, 2024, we had $120.4 million of long-term debt outstanding, which is comprised of two term loans, a finance lease and a revolving credit facility. Of the $120.4 million outstanding, $28.2 million relates to a term loan that bears interest at the rate of Term SOFR plus 2.0% and a tranche rate adjustment of 0.046% over the seven-year term secured in connection with the Avondale, Arizona campus property purchased in December 2020. Approximately $36.7 million relates to a term loan that bears interest at the rate of Term SOFR plus 2.0% over the seven-year term, secured in connection with the Lisle, Illinois campus property. For each of the term loans, a derivative interest rate swap is in place that fixes the interest rate on 50% of the loan at a market rate at the time the derivative was initiated. Approximately $4.5 million relates to a finance lease for a campus within our Concorde segment. The remaining $51.0 million relates to funds drawn from the $125.0 million revolving credit facility that was initially secured in connection with the Concorde acquisition. See Note 9 of the notes to the condensed consolidated financial statements herein for additional details on the term loans and the Revolving Credit Facility.
Current wording
As of March 31, 2025, we had $94.8 million of long-term debt outstanding, which is comprised of two term loans, a finance lease and our Revolving Credit Facility. Of the $94.8 million outstanding, $27.9 million relates to a term loan that bears interest at the rate of Term SOFR plus 2.0% and a tranche rate adjustment of 0.046% over the seven-year term secured in connection with the Avondale, Arizona campus property purchased in December 2020. Approximately $36.5 million relates to a term loan that bears interest at the rate of Term SOFR plus 2.0% over the seven-year term, secured in connection with the Lisle, Illinois campus property. For each of the term loans, a derivative interest rate swap is in place that fixes the interest rate on 50% of the loan at a market rate at the time the derivative was initiated. Approximately $4.3 million relates to a finance lease for a campus within our Concorde segment. The remaining $26.0 million relates to funds drawn from the $125.0 million Revolving Credit Facility that was initially secured in connection with the Concorde acquisition. See Note 10 of the notes to the condensed consolidated financial statements herein for additional details on the term loans and the Revolving Credit Facility.
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Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
Revenues for the six months ended March 31, 2025 were $408.9 million, an increase of $50.0 million, or 13.9%, from the comparable period in the prior year. UTI revenues increased by approximately $27.0 million, or 11.3%, and Concorde revenues increased by approximately $23.0 million, or 19.1%. Both segment increases were primarily driven by the higher average full-time active students.
Current report — wording carried from elsewhere
As noted above, no shares of the Series A Preferred Stock remain outstanding and all rights of the holders to receive future dividends have been terminated as of the December 18, 2023 conversion date. As such, there was no income allocated to participating securities for the three months ended March 31, 2025 and 2024.
Current report — wording carried from elsewhere
The following table sets forth selected statements of operations data as a percentage of revenues for each of the periods indicated.
Current report — wording carried from elsewhere
The following table presents revenue by segment (in thousands):
Current report — wording carried from elsewhere
Educational services and facilities expenses were $202.6 million for the six months ended March 31, 2025, as compared to $189.9 million for the six months ended March 31, 2024, which was primarily due to the increased student volumes during the period and costs associated with execution of our business strategies, partially offset by cost savings from our operational initiatives.
Current report — wording carried from elsewhere
The following table sets forth the significant components of our educational services and facilities expenses by segment (in thousands):
Current report — wording carried from elsewhere
Supplies, maintenance and student expense decreased by $4.4 million for the six months ended March 31, 2025 primarily due to a decrease in student housing expenses.
Current report — wording carried from elsewhere
The following table sets forth the significant components of our selling, general and administrative expenses by segment (in thousands):
Current report — wording carried from elsewhere
Our income tax expense for the six months ended March 31, 2025 was $10.8 million, or 24.3% of pre-tax income, compared to $5.9 million, or 24.6% of pre-tax income, for the six months ended March 31, 2024. The effective income tax rate for the six months ended March 31, 2025 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, stock-based compensation expense, refinements to the federal research and development tax credits and state and local income and franchise taxes. The effective income tax rate for the six months ended March 31, 2024 differed from the federal statutory rate of 21% primarily due to non-deductible executive compensation, federal research and development tax credits and state and local income and franchise taxes. See Note 12 of the notes to the condensed consolidated financial statements herein for additional details.
Current report — wording carried from elsewhere
As of March 31, 2025, no shares of the Series A Preferred Stock remained outstanding and all rights of the holders to receive future dividends have been terminated due to the combination of the repurchase and conversion of all outstanding preferred shares as of December 18, 2023. See Note 15 of the notes to the condensed consolidated financial statements herein for additional details on the conversion of our Series A Preferred Stock.
Current report — wording carried from elsewhere
Income available for distribution refers to net income reduced by dividends on our Series A Preferred Stock. As a result of the foregoing, we reported income available for distribution of $33.6 million and $17.1 million for the six months ended March 31, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Our previously outstanding Series A Preferred Stock was considered a participating security because, in the event that we paid a dividend or made a distribution on the outstanding common stock, we were required to pay each holder of the Series A Preferred Stock a dividend on an as-converted basis. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends.
Current report — wording carried from elsewhere
Net income available to common shareholders