Universal Technical Institute Inc (UTI) saw its loss narrow to $1.73 million, or $0.12 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $32 million, or $1.32 a share.
Revenue during the quarter dropped 6.46 percent to $82.50 million from $88.19 million in the previous year period. Gross margin for the quarter expanded 209 basis points over the previous year period to 45.65 percent. Operating margin for the quarter period stood at positive 0.83 percent as compared to a negative 6.54 percent for the previous year period.
Operating income for the quarter was $0.69 million, compared with an operating loss of $5.77 million in the previous year period.
Kim McWaters, UTI’s chairman and chief executive officer, stated, “During the second quarter, we made progress on our plan to expand our program offerings, advance our smaller campus initiative and enhance our strategic partnerships with industry leading manufacturers such as INFINITI with whom we launched a first-of-its-kind advanced training program in April. In addition, we continued to improve our financial foundation and in fact, now expect to deliver full-year cost savings at the higher end of our $30 million to $40 million estimate. This represents a meaningful step in our goal to return the company to profitability while maintaining our commitments to providing a quality educational experience, meeting our partners' increasing demand for trained technicians, and growing our student population.
Operating cash flow remains negative
Universal Technical Institute Inc has spent $17.63 million cash to meet operating activities during the first half as against cash outgo of $2.48 million in the last year period. The company has spent $9.36 million cash to meet investing activities during the first half as against cash inflow of $15.30 million in the last year period
The company has spent $3.07 million cash to carry out financing activities during the first six months as against cash outgo of $1.82 million in the last year period.
Cash and cash equivalents stood at $88.98 million as on Mar. 31, 2017, up 120.08 percent or $48.55 million from $40.43 million on Mar. 31, 2016.
Working capital increases sharply
Universal Technical Institute Inc has recorded an increase in the working capital over the last year. It stood at $64.51 million as at Mar. 31, 2017, up 913.42 percent or $58.15 million from $6.37 million on Mar. 31, 2016. Current ratio was at 1.82 as on Mar. 31, 2017, up from 1.08 on Mar. 31, 2016.
Days sales outstanding went down to 18 days for the quarter compared with 20 days for the same period last year.
Debt comes down marginally
Universal Technical Institute Inc has recorded a decline in total debt over the last one year. It stood at $43.61 million as on Mar. 31, 2017, down 1.85 percent or $0.82 million from $44.44 million on Mar. 31, 2016. Total debt was 15.88 percent of total assets as on Mar. 31, 2017, compared with 19.33 percent on Mar. 31, 2016. Debt to equity ratio was at 0.33 as on Mar. 31, 2017, down from 0.55 as on Mar. 31, 2016.
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