Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock is listed on the NYSE under the symbol “UTI.”
The closing price of our common stock as reported by the NYSE on November 30, 2020 was $6.56 per share. As of November 30, 2020, there were 25 holders of record of our common stock.
Dividends
On June 9, 2016, our board of directors voted to eliminate the quarterly cash dividend on our common stock. Any future common stock dividends require the approval of a majority of the voting power of the Series A Preferred Stock.
We continuously evaluate our cash position in light of growth opportunities, operating results and general market conditions.
Repurchase of Securities
On December 20, 2011, our board of directors authorized the repurchase of up to $25.0 million of our common stock in the open market or through privately negotiated transactions. As of September 30, 2020, we have purchased an aggregate of 1,677,570 shares of our common stock for an aggregate purchase price of $15.3 million under this stock repurchase program. During the year ended September 30, 2020, we made no purchases under this stock repurchase program. The last stock repurchase under this stock repurchase program was during fiscal 2015. Any future repurchases under this stock repurchase program require the approval of a majority of the voting power of our Series A Preferred Stock.
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Stock Performance Graph
The following Stock Performance Graph and related information shall not be deemed “soliciting material” or “filed” with the SEC, nor should such information be incorporated by reference into any future filings under the Securities Act or the Exchange Act except to the extent that we specifically incorporate it by reference in such filing.
This graph compares total cumulative stockholder return on our common stock during the period from September 30, 2015 through September 30, 2020 with the cumulative return on the NYSE Stock Market Index (U.S. Companies) and a Peer Issuer Group Index. The peer issuer group consists of the companies identified below, which were selected on the basis of the similar nature of their business. The graph assumes that $100 was invested on September 30, 2015, and any dividends were reinvested on the date on which they were paid.
Symbol CRSP Total Returns Index for: 09/2015 09/2016 09/2017 09/2018 09/2019 09/2020
u Universal Technical Institute, Inc. $ 100.00 $ 51.18 $ 99.76 $ 76.48 $ 156.40 $ 146.05
n NYSE Stock Market (US Companies) 100.00 114.41 133.27 150.92 156.20 156.86
p Peer Group 100.00 99.90 185.53 244.09 216.13 163.86
Companies in the Self-Determined Peer Group:
Adtalem Global Education, Inc. Career Education Corporation
Grand Canyon Education, Inc. Lincoln Educational Services Corporation
Strategic Education, Inc. Zovio, Inc.
Notes:
A. The lines represent quarterly index levels derived from compounded daily returns that include all dividends.
B. Peer group indices use beginning of period market capitalization weighting.
C. If the quarterly interval, based on the fiscal year-end, is not a trading day, the preceding trading day is used.
D. The index level for all series was set to $100 on September 30, 2015.
Prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved.
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ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth our selected consolidated financial and operating data as of and for the periods indicated. You should read the selected financial data set forth below together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. The selected consolidated statement of operations data and the selected consolidated balance sheet data as of and for the years ended September 30, 2020, 2019, 2018, 2017 and 2016 have been derived from our consolidated financial statements.
Year Ended September 30,
2020 (1)
2019 (2)
2018 (3)
2017 2016 (4)
Statement of Operations Data: (In thousands, except per share amounts, number of campuses and average enrollments)
Revenues $ 300,761 $ 331,504 $ 316,965 $ 324,263 $ 347,146
Operating expenses:
Educational services and facilities 155,932 178,317 182,589 181,027 194,395
Selling, general and administrative 148,700 160,989 169,651 145,060 171,374
Total operating expenses 304,632 339,306 352,240 326,087 365,769
Loss from operations (3,871) (7,802) (35,275) (1,824) (18,623)
Net income (loss) $ 8,008 $ (7,868) $ (32,682) $ (8,128) $ (47,696)
Earnings per share:
Net income (loss) per share - basic $ 0.05 $ (0.52) $ (1.51) $ (0.54) $ (2.02)
Net income (loss) per share - diluted $ 0.05 $ (0.52) $ (1.51) $ (0.54) $ (2.02)
Weighted average number of shares outstanding:
Basic 29,812 25,438 25,115 24,712 24,313
Diluted 30,113 25,438 25,115 24,712 24,313
Cash dividends declared per common share (5)
$ — $ — $ — $ — $ 0.04
Other Data:
Depreciation and amortization (6)
$ 11,804 $ 15,904 $ 15,688 $ 16,886 $ 17,749
Number of campuses
12 13 13 12 12
Average enrollments 10,462 10,674 10,418 10,889 12,026
Balance Sheet Data:
Cash, cash equivalents and short-term investments $ 114,858 $ 65,442 $ 58,104 $ 97,917 $ 120,736
Current assets 180,179 118,104 116,795 146,826 161,949
Working capital 58,539 21,260 24,333 60,437 67,389
Total assets 441,981 270,526 282,278 274,102 297,159
Total shareholders’ equity
176,522 114,288 126,645 125,776 136,614
(1) Our results of operations for the year ended September 30, 2020 were impacted by the COVID-19 pandemic. More students took a leave of absence in fiscal 2020 due to the COVID-19 pandemic and our campuses suspended operations for a period of time. While we have transitioned to a blended learning model, the COVID-19 pandemic has impacted the pace in which students are progressing through their programs. As a result, our total graduates in fiscal 2020 decreased by 19% as compared to the prior year due to these delays. We recorded $6.1 million in deferred revenue during the year ended September 30, 2020.
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In February 2020, we raised $49.5 million of net proceeds through an equity offering which was focused on supporting our longer-term strategy of growth, diversification and scale. We invested a portion of the proceeds from the equity offering in held-to-maturity securities.
Additionally, we adopted ASC 842, Leases , at the beginning of fiscal 2020 using the modified retrospective method without the recasting of comparative periods’ financial information which resulted in recording an operating lease liability of $163.0 million and an operating lease right-of-use asset of $148.6 million on October 1, 2019.
(2) In February 2019, we announced that the Norwood, Massachusetts campus is no longer accepting new student applications. The last group of students started in March 2019, and the campus closed on July 31, 2020. We recorded a $1.4 million restructuring charge for the Norwood campus exit during fiscal 2019, which impacted operating expenses and the loss from operations.
(3) In fiscal 2018, we opened a campus in Bloomfield, New Jersey. The implementation spanned most of fiscal 2018 and we commenced teaching at this campus in August 2018, which contributed to the fluctuations in operations and financial position during fiscal 2018. Additionally, we adopted ASC 606, Revenue from Contracts from Customers , at the beginning of fiscal 2018 using the modified retrospective method. The adoption of this standard resulted in the change in the timing of revenue recognition as it relates to our proprietary loan program.
(4) In fiscal 2016, we sold 700,000 shares of Series A Preferred Stock for $70.0 million in cash. Additionally, during fiscal 2016 we recorded a full valuation allowance on our deferred tax assets which impacted income tax expense by $34.2 million for the year ended September 30, 2016.
(5) In fiscal 2016, we paid common stock cash dividends of $0.02 per share in December and March totaling $1.0 million. On June 9, 2016, our board of directors voted to eliminate the quarterly cash dividend on our common stock.
(6) Excludes depreciation of training equipment obtained in exchange for services of $1.3 million, $1.4 million, $1.4 million, $1.3 million and $1.3 million for the years ended September 30, 2020, 2019, 2018, 2017 and 2016, respectively.
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