What changed in this filing

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Item 1. Business

2024-12-05 compared with 2023-12-01 · 200 added, 166 removed, 694 unchanged (35% of the section changed)

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We offer the majority of our programs in a blended learning model that combines instructor-facilitated online teaching and demonstrations with hands-on labs.

In conjunction with the Concorde Career Colleges, Inc.

acquisition on December 1, 2022 (the “Concorde Acquisition”), we redefined our reporting structure into two reportable segments (also referred to as “divisions”) as follows:

Our reporting structure has two reportable segments (also referred to as “divisions”) as follows:

Universal Technical Institute (“UTI”):

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Concorde Career Colleges (“Concorde”):

Concorde operates 17 campuses located in eight states and online, offering degree, non-degree, and continuing education programs in the allied health, dental, nursing, patient care and diagnostic fields.

Concorde operates 17 campuses located 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 “Concorde Career College;” where allowed by State regulation.

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“ Corporate ” includes corporate related expenses that are not allocated to the UTI or Concorde reportable segments.

In prior years, these costs were allocated across our former “Postsecondary Education” reportable segment and “Other” category based upon compensation expense.

All of our campuses are institutionally accredited and are eligible for federal student financial assistance funds under the Higher Education Act of 1965, as amended (“HEA”), commonly referred to as Title IV Programs, which are administered by the U.S.

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Additionally, for skilled trades and other transportation programs, the U.S.

DOL BLS estimates that an average of 39,200 new jobs openings for industrial machinery mechanics, 42,600 new job openings for welders, 37,700 new job openings in the HVAC industry, 14,300 new job openings for computer-controlled machine tool operators, 12,800 new job openings for avionic technicians, 5,700 new job openings for robotics, 4,800 new job openings for marine and motorcycle technicians and 1,800 new job openings for wind turbine service technicians will exist annually for new entrants through 2032 in these fields.

DOL BLS estimates that an average of 45,800 new job openings for welders, 43,500 new jobs openings for industrial machinery mechanics, 42,500 new job openings in the HVAC industry, 15,200 new job openings for computer-controlled machine tool operators, 13,400 new job openings for avionic technicians, 6,300 new job openings for robotics, 4,600 new job openings for marine and motorcycle technicians and 2,100 new job openings for wind turbine service technicians will exist annually for new entrants through 2033 in these fields.

Market served by Concorde

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Specifically, the U.S.

DOL BLS estimates that an average of 193,100 new job openings for registered nurses, 114,600 new job openings for medical assistants, 55,100 new job openings for dental assistants, 44,900 new job openings for pharmacy technicians, 32,900 new job openings for occupational therapy and physical therapist assistants and aides, 26,300 new job openings for diagnostic related technologists and technicians, 24,000 new job openings for clinical laboratory technologists and technicians, 22,000 new job openings for massage therapists and 19,500 new job openings for phlebotomists will exist annually for new entrants through 2032 in these fields.

DOL BLS estimates that an average of 194,500 new job openings for registered nurses, 119,800 new job openings for

medical assistants, 54,900 new job openings for dental assistants, 54,000 new job openings for practical and licensed vocational nurses, 47,400 new job openings for pharmacy technicians, 35,300 new job openings for occupational therapy and physical therapist assistants and aides, 26,500 new job openings for diagnostic related technologists and technicians, 24,200 new job openings for clinical laboratory technologists and technicians, 22,800 new job openings for massage therapists, 19,600 new job openings for phlebotomists and 16,400 new job openings for dental hygienists will exist annually for new entrants through 2033 in these fields.

Our student recruitment efforts begin with our commitment to positive outcomes, both for our students and our industry relationships.

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Business Strategy

Our business strategy has three key tenets:

Our business strategy, internally known as our “North Star strategy,” has three core tenets:

to grow the business by more deeply penetrating existing target markets and adding new markets;

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and to continually optimize the business by constantly enhancing operational efficiency.

Company Growth, Diversification and Optimization

Growth, Diversification and Optimization

Our organization has a number of key levers to grow, diversify, and optimize the business.

Organically, we have been successful by adding new locations and new programs.

In 2022, UTI launched new transportation & skilled trades campuses in Austin, Texas and Miramar, Florida, further expanding its geographical footprint and opening access to highly populated locations in growing economies.

Inorganically, in November 2021, we acquired MIAT College of Technology which has served both as a growth strategy by adding two new locations and a diversification strategy by adding additional program areas in rapidly expanding skilled trades professions.

This acquisition also has allowed us to extrapolate these in-demand programs from MIAT and imbue them into existing UTI campuses which increases the offerings and addressable markets at existing locations.

Continually optimizing program offerings and operations serves to further enhance overall operating margins and is a foundational element of our strategy.

In the last two years, UTI has launched fourteen new programs throughout existing campuses and opened two new transportation and skilled trades campuses, further expanding its geographical footprint and opening access to highly populated locations in growing economies.

Inorganically, in November

2021, we acquired MIAT College of Technology which has served both as a growth strategy by expanding into the Canton, Michigan market and a diversification strategy by adding additional program areas in rapidly expanding skilled trades professions.

This acquisition also has allowed us to expand and diversify our existing UTI campus offerings to include aviation, energy, HVACR and other skilled trade options.

In December 2022, we continued to diversify by expanding into healthcare education through the acquisition of Concorde.

This acquisition enabled us to expand our program offerings into the high-growth and high-demand healthcare education market.

Integration of core functions across education groups allows us to continue to optimize from an operational perspective.

Return on Education

Throughout 2024, we have expanded partnerships in the healthcare market and completed five program expansions within Concorde’s existing campuses.

Continually optimizing program offerings and operations serves to further enhance overall operating margins and is a foundational element of our strategy.

Since acquiring Concorde, we have built a multi-division and corporate operating model that provides transparency, accountability, the ability to be nimble and adapt as we continue to evolve, while also serving as a platform for expansion into new areas.

As we look towards the second phase of our North Star strategy, we are continuing to focus on these core tenets.

Pending regulatory approval, we expect to launch a minimum of six programs annually at our existing campuses beginning in fiscal year 2025 and open at least two new campuses each year between fiscal years 2026 and 2029, which includes expanding both UTI’s and Concorde’s campus offerings and footprint.

We believe this strategy will allow us to reach even more students with industry-aligned workforce and professional programs that demonstrate strong student outcomes, while also increasing the financial strength of the company.

Return on Education Investment

We provide an excellent return on our students’ education investment by working with corporate partners and local communities to offer educational programs that are tailored to professional and industry standards.

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In addition, we provide relevant services to assist students with possible tuition financing options, educational and career counseling, opportunities for part-time work while attending school, and ultimately graduate employment.

Our career services teams develop job opportunities and outreach, advise active students on employment search and interviewing skills, facilitate employer visits to campuses, provide access to reference materials, assist with the composition of resumes, and help students prepare for applicable certification or licensure exams.

Our career services teams identify job opportunities and outreach, advise active students on employment search and interviewing skills, facilitate employer visits to campuses, provide access to reference materials, assist with the composition of resumes, and help students prepare for applicable certification or licensure exams.

Shared Success Model

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The UTI advanced training programs range from 8 to 26 weeks in duration and are completed subsequent to satisfying the core UTI program requirements.

These programs culminate in a certificate, diploma, associate of occupational studies degree, or associate of applied science degree depending on the program and campus.

These programs culminate in a certificate, diploma, associate of occupational studies degree, or associate of

applied science degree depending on the program and campus.

Tuition rates vary by type and length of our programs and the program level, such as core or advanced training.

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California (Sacramento) UTI 2005 Automotive;

Florida (Miramar) UTI 2022 Automotive;

Florida (Miramar) UTI 2022 Airframe & Powerplant;

Florida (Orlando) UTI/MMI 1986 Automotive;

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New Jersey (Bloomfield) UTI 2018 Automotive;

North Carolina (Mooresville) NASCAR Tech 2002 Automotive;

North Carolina (Mooresville)

NASCAR Tech 2002 Automotive;

CNC Machining;

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Worth) UTI 2010 Automotive;

Texas (Houston) UTI 1983 Automotive;

Texas (Houston) 1

UTI 1983 Automotive;

Collision Repair and Refinishing;

Texas (Houston) MIAT 2010 Airframe and Powerplant;

Texas (Houston) 1

MIAT 2010 Airframe and Powerplant;

Aviation Maintenance;

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Robotics & Automation;

(1) During 2024, we began efforts to consolidate the MIAT Houston campus into the previously existing UTI Houston campus.

This consolidation is expected to be complete in fiscal 2025.

Description of Current UTI Programs Offered

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Automotive 1965 Diagnose, service and repair automobiles Entry-level service technicians in automotive dealer service departments or automotive repair facilities

UTI Program Year Established Program Focus Target Job Placement (1)

Diesel 1968 Diagnose, service and repair diesel systems and industrial equipment Entry-level service technicians in medium and heavy truck facilities, truck dealerships, or in service and repair facilities

Airframe and Powerplant 1969 Aircraft troubleshooting, hydraulics and pneumatics, powerplant lubrication systems and turbine engine operation Entry-level opportunities in various areas of the aviation industry

UTI Program Year Established Program Focus Target Job Placement (1)

Automotive/Diesel 1970 Diagnose, service and repair automobiles and diesel systems Entry-level service technicians in automotive repair facilities, automotive dealer service departments, diesel engine repair facilities, medium and heavy truck facilities, truck dealerships, or in service and repair facilities

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Entry-level CNC operators in the manufacturing and mechanical fabrication industries

UTI Program Year Established Program Focus Target Job Placement (1)

Robotics & Automation 2018 Robotics is the process of creating and using robots to complete certain tasks.

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UTI Manufacturer-Paid MSAT Programs Offered Location

Fendt Technician Academy by AGCO Lisle, Illinois

Mercedes-Benz DRIVE Mercedes-Benz facilities in Long Beach, California;

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and Grapevine, Texas

Peterbilt Technician Institute Lisle, Illinois;

Peterbilt Technician Institute (PTI) Lisle, Illinois;

Porsche Technician Apprenticeship Program (PTAP) Porsche facilities in Eastvale, California;

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UTI Student-Paid MSAT Programs Offered Location

UTI and NASCAR Tech Brand Campuses

Advanced Training

BMW FastTrack Avondale, Exton, Houston, Long Beach, Orlando, Lisle, Miramar

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Ford Accelerated Credential Training (FACT) Avondale, Rancho Cucamonga, Sacramento, Orlando, Lisle, Mooresville, Bloomfield, Exton, Houston

UTI Student-Paid MSAT Programs Offered Location

General Motors Technician Career Training Avondale

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Toyota Professional Automotive Technician (TPAT) Lisle, Rancho Cucamonga

UTI Student-Paid MSAT Programs Offered Location

MMI Brand Campuses

Manufacturer Specific Training

American Honda Motor Company, Inc.

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UTI Affordability and Accessibility

During the year ended September 30, 2023, tuition for UTI programs ranged from approximately $19,000 for the Industrial Maintenance Technician or Wind Turbine Technician programs (lasting 30 weeks) to $65,000 for the Automotive and Diesel program with one specialized elective program (lasting 90 weeks).

During the year ended September 30, 2024, tuition for UTI programs ranged from approximately $20,000 for the Industrial Maintenance Technician or Wind Turbine Technician programs (lasting 30 weeks) to $67,000 for the Automotive and Diesel program (lasting 90 weeks).

During the year ended September 30, 2024, the average annual revenue per UTI student was approximately $34,000, net of scholarships or grants funded by the institution.

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During the year ended September 30, 2024, approximately 35% of active UTI students received a UTI-funded scholarship or grant, approximately 39% of active UTI students participated in an “in school” cash payment plan, and approximately 19% of active UTI students received funding from UTI’s proprietary loan program.

To maximize student affordability and speed to completion, UTI works with high schools across the nation to implement Technical Education Institutional Grant (“TEIG”) agreements.

The TEIG agreements allow students who have completed course(s) related to their selected program of study to receive a corresponding tuition credit for up to six courses.

UTI students may opt out of the courses provided they pass an Advanced Placement Opportunities Test for each selected course.

UTI has approximately 4,300 curriculum-specific TEIG agreements in place across the country.

This represents approximately 9% of the high schools covered by the UTI admissions teams.

UTI continues to identify new opportunities to expand the volume of these curriculum specific TEIG agreements.

In response to growing demand for trained technicians, UTI industry partners and employers are increasingly willing to participate in the UTI students’ cost of education by providing them with scholarship money and relocation assistance to attend school and by offering UTI graduates tuition reimbursement plans and competitive compensation and benefit packages, including signing bonuses, relocation grants and tool incentives.

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Concorde offers certificate, diploma or degree programs in the healthcare field at campuses across the United States under the Concorde Career Colleges or Concorde Career Institute brands.

The majority of Concorde’s core programs are eight to ten months in duration.

Clinical programs are 12 to 24 month programs.

Clinical programs may have up to nine academic terms that last two to three months.

The majority of Concorde’s short and core programs are 8 to

36 weeks in duration.

Clinical programs are 60 to 90 week programs.

The programs offered culminate in a diploma, associate of applied science degree or associate of science degree depending on the program and campus.

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Respiratory Therapy;

Sterile Processing Technician

California (North Hollywood) 1968 Dental Assistant;

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Respiratory Therapy;

Sterile Processing Technician;

Surgical Technology

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Neurodiagnostic Technology;

Diagnostic Medical Sonography

California (San Diego) 1968 Dental Assistant;

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Florida (Miramar) 1987 Dental Assistant;

Dental Hygiene;

Medical Assistant;

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Surgical Technology;

Diagnostic Medical Sonography

Florida (Tampa) 1987 Dental Assistant;

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Surgical Technology

Mississippi (Southaven) 2013 Dental Assisting;

Mississippi (Southaven) 2013 Dental Assistant;

Massage Therapy;

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Medical Office Professional;

Dental Assisting;

Medical Assisting;

Medical Office Professional;

Phlebotomy Technician;

Sterile Processing Technician

Missouri (Kansas City) 1986 Dental Assistant;

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Oregon (Portland) 1969 Dental Assistant;

Dental Hygiene;

Medical Assistant;

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Surgical Technology

Tennessee (Memphis) 1981 Dental Assisting;

Tennessee (Memphis) 1981 Dental Assistant;

Massage Therapy;

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Respiratory Therapy;

Sterile Processing Technician;

Surgical Technology

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Diagnostic Medical Sonography;

Phlebotomy Technician;

Physical Therapist Assistant;

Respiratory Therapy;

Sterile Processing Technician;

Surgical Technology

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Diagnostic Medical Sonography;

Phlebotomy Technician;

Physical Therapist Assistant;

Respiratory Therapy;

Sterile Processing Technician;

Surgical Technology

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Concorde Program Year Established Program Focus Target Job Placement (1)

Short Programs

Phlebotomy Technician 2021 Phlebotomists prepare patients, collect blood samples, and transport specimens for analysis.

Entry-level phlebotomist in clinical laboratories, physician offices, blood donation centers, and hospitals.

Sterile Processing Technician 2021 Sterile Processing Technicians clean and sterilize medical instruments and durable equipment to ensure the safety of patients and medical staff.

Entry-level sterile processing technicians in dental offices, physician offices, outpatient health centers, and hospitals.

Core Programs

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Pharmacy Technician 1999 Pharmacy Technician acts as an intermediary between the doctor and the pharmacist and between the pharmacist and the patient Entry-level pharmacy technician in hospital, home healthcare, and retail environments

Phlebotomy Technician 2021 The Phlebotomy Tech facilitates the collection and transportation of laboratory specimens Entry-level phlebotomy technician in hospitals, laboratories, blood centers, or other healthcare facilities

Clinical Programs

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Dental Hygiene 2011 Qualifications for licensure as a Registered Dental Hygienist Entry-level dental hygienist

Diagnostic Medical Sonography 2021 Use special imaging equipment that directs sound waves into a patient’s body to assess and diagnose various medical conditions Entry-level obstetrics and gynecology sonographer or entry-level abdominal sonographer

Concorde Program Year Established Program Focus Target Job Placement (1)

Neurodiagnostic Technology 2012 Advanced diagnostic procedures including EEGs, PSGs and others.

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Physical Therapist Assistant 2011 Physical Therapist Assistants provide physical therapy services under the direction and supervision of a licensed Physical Therapist Entry-level physical therapist assistant in a variety of settings, including hospitals, inpatient rehabilitation facilities, private practices, outpatient clinics, home health, skilled nursing facilities, schools, sports facilities, and more

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Concorde Affordability and Accessibility

During the year ended September 30, 2023, tuition for Concorde programs ranged from approximately $14,000 for the Pharmacy Technician program (lasting 24 weeks) to $96,000 for the Dental Hygiene program in California (lasting 90 weeks).

During the year ended September 30, 2023, the average annual revenue per Concorde student was approximately

$23,000, net of scholarships or grants funded by the institution.

During the year ended September 30, 2024, tuition for Concorde programs ranged from approximately $1,000 for the Phlebotomy program (lasting approximately 8 weeks) to $96,000 for the Dental Hygiene program in California (lasting approximately 90 weeks).

During the year ended September 30, 2024, the average annual revenue per Concorde student was

approximately $29,000, net of scholarships or grants funded by the institution.

We are focused on making the Concorde training more affordable and accessible through financing options, institutional and relocation grants, and scholarships based on need and merit.

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Student Enrollment

UTI enrolls students throughout the year with courses typically starting every three to six weeks.

UTI enrolls students throughout the year with courses typically starting every three to eleven weeks.

Concorde enrolls students throughout the year with core terms starting every month and clinical terms starting every ten weeks.

The table below outlines our new student starts, average undergraduate full-time students, and end of period undergraduate full-time students for both UTI and Concorde.

The table below outlines our new student starts, average full-time students, and end of period full-time students for both UTI and Concorde.

Year Ended September 30, %

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Total new student starts 15,138 14,181 6.7 %

Average undergraduate full-time active students 12,614 12,838 (1.7) %

End of period undergraduate full-time active students 14,833 14,380 3.2 %

Average full-time active students 13,810 12,614 9.5 %

End of period full-time active students 15,873 14,833 7.0 %

Total new student starts 11,747 8,432 39.3 %

Average undergraduate full-time active students 7,654 — 100.0 %

End of period undergraduate full-time active students 8,369 — 100.0 %

Average full-time active students 8,475 7,654 10.7 %

End of period full-time active students 9,747 8,369 16.5 %

Total new student starts 26,885 22,613 18.9 %

Average undergraduate full-time active students 20,268 12,838 57.9 %

End of period undergraduate full-time active students 23,202 14,380 61.3 %

Average full-time active students 22,285 20,268 10.0 %

End of period full-time active students 25,620 23,202 10.4 %

(1) Student data for Concorde presented in the year ended September 30, 2023 column represents the period of UTI’s ownership, or December 1, 2022 through September 30, 2023.

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We provide intensive instructional training and continuing education to our faculty members to maintain the quality of instruction in all fields of study.

A majority of our existing instructors have a minimum of five years’ experience in the industry and an average of seven years of experience teaching at UTI and four years of experience teaching at Concorde.

A majority of our existing instructors have a minimum of five years’ experience in the industry and an average of six years of experience teaching at UTI and four years of experience teaching at Concorde.

We employ field, military and campus-based admissions representatives who work directly with prospective students to facilitate the enrollment process.

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UTI uses hazardous materials at its training facilities and campuses and generates small quantities of regulated waste, including, but not limited to, used oil, antifreeze, transmission fluid, paint, solvents, car batteries and aircraft batteries.

As a result, the UTI facilities and operations are subject to a variety of environmental laws and regulations governing, among other things, the use, storage and disposal of solid and hazardous substances and waste, and the clean-up of contamination at UTI facilities or off-site locations to which UTI sends or has sent waste for disposal.

result, the UTI facilities and operations are subject to a variety of environmental laws and regulations governing, among other things, the use, storage and disposal of solid and hazardous substances and waste, and the clean-up of contamination at UTI facilities or off-site locations to which UTI sends or has sent waste for disposal.

Certain of the UTI campuses are required to obtain permits for air emissions.

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States can and often do revisit, revise, and expand their regulations governing postsecondary education and recruiting.

Institutions that offer instruction outside of their Home State must comply with federal regulations governing state authorization for distance education in order to participate in the Title IV student financial aid programs.

All UTI institutions and the Concorde Kansas City and Memphis institutions are authorized to participate in the State Authorization Reciprocity Agreement (“SARA”).

Institutions that offer distance education instruction outside of their Home State must comply with federal regulations governing state authorization for distance education in order to participate in the Title IV student financial aid programs.

All UTI institutions and the Concorde Jacksonville, Florida, Kansas City, Missouri, and Memphis, Tennessee institutions are

authorized to participate in the State Authorization Reciprocity Agreement (“SARA”).

SARA is an agreement among member states, districts and territories of the United States of America that establishes comparable national standards for interstate offering of post-secondary distance education courses and programs.

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Each of our institutions holds the state or SARA authorizations required to operate and offer postsecondary education programs, and to recruit in the states in which it engages in recruiting activities.

We also have received approval from the Accrediting Commission of Career Schools and Colleges (“ACCSC”) and the Council on Occupational Education (“COE”) to permanently offer blended format programs that utilize both distance and on-ground education.

Additionally, we have received permanent approvals from all state education authorizing agencies to offer blended format programs.

We also have received approval from the Accrediting Commission of Career Schools and Colleges (“ACCSC”) and the Council on Occupational Education (“COE”) to offer blended format programs that utilize both distance and on-ground education.

Additionally, we have received approvals from all required state education authorizing agencies to offer blended format programs.

We continue to work to ensure that we comply with applicable distance education rules and standards.

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UTI Campus Accreditation Expiration Renewal Status

Miramar, Florida (3)

September 2024 In Process

Houston, Texas (MIAT) (1)

December 2022 In Process

Worth, Texas (2)

March 2023 In Process

Sacramento, California (2)

December 2023 In Process

Mooresville, North Carolina;

NASCAR Technical Institute (NASCAR Tech) (2)

December 2024 Renewed

October 2024 Renewed

Avondale, Arizona (2)

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October 2028 Renewed

Austin, Texas (3)

May 2024 Approved

Miramar, Florida (3)

September 2024 Approved

Worth, Texas (2)

March 2029 Renewed

Austin, Texas May 2029 Renewed

Sacramento, California (2)

December 2029 Renewed

Mooresville, North Carolina;

NASCAR Technical Institute (NASCAR Tech) (2)

December 2029 Renewed

(1) Indicates a school that has achieved School of Distinction status during its most recent renewal of accreditation, which recognizes accredited member schools that demonstrated a commitment to the expectations and rigors of ACCSC accreditation, as well as a commitment to delivering quality educational programs to students.

(2) Indicates a school that has achieved School of Excellence status during its most recent renewal of accreditation, which recognizes ACCSC-accredited institutions for their commitment to the expectations and rigors of ACCSC accreditation, as well as the efforts made by the institution in maintaining high levels of achievement among their students.

(3) New schools are initially accredited for a two-year term after which they are then eligible to renew for the longer five or six year renewal cycle.

(3) Due to scheduling and resource limitations, an institution’s grant of accreditation at times may expire on its face prior to the completion of a renewal cycle.

In such cases, the institution’s accreditation remains in place until the renewal cycle is complete, and a new grant of accreditation is issued.

Concorde Campus Accreditor Accreditation Expiration Renewal Status

Portland, Oregon ACCSC February 2017 In Process

North Hollywood, California ACCSC June 2023 In Process

Tampa, Florida ACCSC May 2024 In Process

Jacksonville, Florida ACCSC August 2024 In Process

Garden Grove, California ACCSC May 2025 Renewed

Miramar, Florida ACCSC May 2025 Renewed

San Bernardino, California ACCSC November 2025 Renewed

Grand Prairie, Texas ACCSC December 2025 Renewed

Tampa, Florida (5)

ACCSC May 2024 In Process

Jacksonville, Florida (5)

ACCSC August 2024 In Process

Garden Grove, California ACCSC May 2025 In Process

Miramar, Florida ACCSC May 2025 In Process

San Bernardino, California ACCSC November 2025 In Process

Grand Prairie, Texas ACCSC December 2025 In Process

Aurora, Colorado ACCSC February 2026 Renewed

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ACCSC December 2026 Renewed

Portland, Oregon ACCSC February 2027 Renewed

Dallas, Texas ACCSC April 2027 Renewed

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Memphis, Tennessee COE September 2027 Renewed

Concorde Campus Accreditor Accreditation Expiration Renewal Status

Southaven, Mississippi COE September 2027 Renewed

North Hollywood, California ACCSC June 2028 Renewed

(4) Indicates a school that has achieved School of Excellence status during its most recent renewal of accreditation, which recognizes ACCSC-accredited institutions for their commitment to the expectations and rigors of ACCSC accreditation, as well as the efforts made by the institution in maintaining high levels of achievement among their students.

(5) Due to scheduling and resource limitations, an institution’s grant of accreditation at times may expire on its face prior to the completion of a renewal cycle.

In such cases, the institution’s accreditation remains in place until the renewal cycle is complete, and a new grant of accreditation is issued.

Programmatic Accreditation

In addition to institutional accreditation, programmatic accreditation may be required for particular educational programs.

Programmatic accreditors review specialized and professional programs in a range of fields and disciplines within an institution to ensure the public that an academic program has undergone a rigorous review process and found to meet high standards for educational quality.

Certain Concorde healthcare programs, including the Physical Therapist Assistant, Dental Hygiene, Neurodiagnostic Technology, Polysomnographic Technology, Respiratory Therapy, Surgical Technology, Radiologic Technology, Diagnostic Medical Sonography, Cardiovascular Sonography, Occupational Therapy Assistant, Pharmacy Technician, and Occupational Therapy Assistant programs, have obtained programmatic accreditation.

Programmatic accreditors review specialized and professional programs in a range of fields and disciplines within an institution to ensure the public that an academic program has undergone a rigorous review process and been found to meet high standards for educational quality.

Certain Concorde healthcare programs, including the Physical Therapist Assistant, Dental Hygiene, Neurodiagnostic Technology, Polysomnographic Technology, Respiratory Therapy, Surgical Technology, Radiologic Technology, Diagnostic Medical Sonography, Cardiovascular Sonography, Practical Nursing, Pharmacy Technician, and Occupational Therapy Assistant programs, have obtained programmatic accreditation.

Such programs are required to meet the standards of their programmatic accreditor and Concorde must periodically renew these accreditations by completing a comprehensive programmatic accreditation renewal process.

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Title IV grants include Federal Pell Grants (the “Pell Grants”) and Federal Supplemental Education Opportunity Grants (“FSEOG”).

Pell Grants are available to eligible undergraduate students who demonstrate financial need and who have not already received a baccalaureate degree and do not need to be repaid.

Pell Grants are available to eligible undergraduate students who demonstrate financial need and who have not already received a baccalaureate degree.

FSEOG grants are designed to supplement Pell Grants for students with the greatest financial need.

Institutions must provide matching funding equal to 25% of all awards made under the FSEOG program.

Pell Grants generally do not need to be repaid.

Title IV loans include Direct Subsidized loans, Direct Unsubsidized loans, and Direct Parent PLUS loans.

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At this time, we cannot predict all or any of the changes that Congress may ultimately make, and any of those changes could potentially have a material adverse effect on our business and operations.

Overall, in fiscal year 2023, across our institutions, we derived approximately 67% of our revenues, on a cash basis as defined by ED, from Title IV Programs.

Overall, in fiscal year 2024, across our institutions, we derived approximately 78% of our revenues, on a cash basis, from Title IV Programs and various veterans’ programs.

We derived approximately 45% of our revenues, on a cash basis, from the Direct Loan program, pursuant to which ED makes loans to students or their parents.

We derived approximately 21% of our revenues, on a cash basis, from the Pell Program.

We derived approximately 11% of our revenues, on a cash basis, from veterans’ programs.

And we derived less than 1% of our revenues, on a cash basis, from FSEOG.

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Concorde Career College, Grand Prairie, Texas Concorde Career College, Grand Prairie, Texas

To obtain and maintain certification as eligible to participate in Title IV Programs, institutions must demonstrate ongoing compliance with the HEA and its extensive and complex implementing regulations;

regulations that ED frequently revisits, revises, and expands.

Because all of our institutions are certified to participate in Title IV Programs, they must all comply with this complex framework of statutes, regulations, and guidance, and undergo detailed oversight and review.

Because all of our institutions are certified to participate in Title IV Programs, they must comply with this complex framework of statutes, regulations, and guidance, and undergo detailed oversight and review.

Below, we discuss the core components of the Title IV Programs’ regulatory framework.

Eligibility and Recertification

All institutions participating in the Title IV Programs must first establish their eligibility to do so.

The Program Participation Agreement (“PPA”) document serves as ED’s formal recognition that an institution and its associated additional locations

have satisfied this requirement and are authorized to participate in Title IV Programs for a specified period of time.

All institutions seeking to participate in the Title IV Programs must first establish their eligibility to do so.

The Program Participation Agreement (“PPA”) document serves as ED’s formal recognition that an institution and its associated additional locations have satisfied this requirement and are authorized to participate in Title IV Programs for a specified period of time.

An institution seeking to expand its activities in certain ways, such as opening an additional location or raising the highest academic credential it offers, must obtain approval from ED.

Every institution is also required to periodically renew its certification by applying for continued certification before its current term of certification expires.

Every participating institution is also required to periodically renew its certification by applying for continued certification before its current term of certification expires.

Terms of certification are typically six years but can be three years or shorter.

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Those institutions that recently have been acquired (MIAT and Concorde) participate pursuant to a provisional PPA, which is standard for institutions that have recently undergone a change in ownership or control.

ED may, in certain circumstances, also place an institution on a provisional PPA if it finds that the institution does not fully satisfy all of the eligibility and certification standards.

A provisional PPA attaches additional requirements and limitations to participation for the duration of the provisional period, which typically is three years.

If ED determines that a provisionally certified institution is unable to meet its responsibilities under its PPA, it may impose additional limitations and restrictions, up to and including revoking the institution’s certification to participate in Title IV Programs.

The 90/10 Rule

As a condition of participation in Title IV Programs, proprietary institutions must agree when they sign their PPA to comply with the 90/10 rule.

Under the 90/10 rule, to remain eligible to participate in the federal student aid programs, a proprietary institution must derive at least 10% of their revenue from sources other than “Federal education assistance funds.” “Federal education assistance funds” are defined as “federal funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution.”

We regularly monitor compliance with the 90/10 requirement to minimize the risk that any of our institutions would derive more than the allowable maximum percentage of its revenue from Title IV Programs for any fiscal year.

As of September 30, 2023, our institutions’ annual Title IV percentages as calculated under the current 90/10 rule ranged from approximately 57% to approximately 86%.

Under the 90/10 rule, to remain eligible to participate in the federal student aid programs, a proprietary institution must derive at least 10% of its revenue from sources other than “Federal education assistance funds.” “Federal education assistance funds” are defined as “federal funds that are disbursed or delivered to or on behalf of a student to be used to attend such institution.”

As of September 30, 2024, our institutions’ annual percentages of Federal education assistance funds, as calculated under the current 90/10 rule, ranged from approximately 65% to approximately 88%.

Administrative Capability

To continue its participation in Title IV Programs, an institution must demonstrate that it remains administratively capable of providing the education it promises and of properly managing its Title IV Programs.

ED assesses the administrative capability of each institution that participates in Title IV Programs under a series of standards listed in the regulations, which cover a wide range of operational and administrative topics, including the designation of capable and qualified individuals, the quality and scope of written procedures, the adequacy of institutional communication and processes, the timely resolution of issues, the sufficiency of recordkeeping, and the frequency of findings of noncompliance.

ED’s administrative capability standards also include thresholds and expectations for federal student loan cohort default rates (discussed below), satisfactory academic progress, and loan counseling.

Failure to satisfy any of the standards may lead ED to find the institution ineligible to participate in Title IV Programs, require the institution to repay Title IV Program funds, change the method of payment of Title IV Program funds, place the institution on provisional certification as a condition of its continued participation in Title IV Programs, or take other actions against the institution.

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This represents a three-year measuring period.

The following tables set forth the most recent three-year cohort default rates for our institutions:

Three-Year Cohort Default Rates for

Cohort Years Ended September 30, (1)

Universal Technical Institute of Arizona 0% 3.1% 11.9%

Universal Technical Institute of Phoenix 0% 3.7% 11.9%

Universal Technical Institute of Texas 0% 2.7% 12.1%

MIAT College of Technology (3)(4)

0% 1.9% 15.4%

Concorde Career College - North Hollywood, California 0% 3.6% 8.8%

Concorde Career College - San Diego, California 0% 3.7% 11.2%

Concorde Career College - Garden Grove, California 0% 3.7% 10.6%

Concorde Career College - San Bernardino, California 0% 4.9% 12.2%

Concorde Career College - Aurora, Colorado and Dallas, Texas 0% 2.9% 14.2%

Concorde Career College - Grand Prairie, Texas (3)

0% 6.7% 17.2%

Concorde Career College - Kansas City, Missouri and San Antonio, Texas (3)

0% 4.2% 19.2%

Concorde Career College - Memphis, Tennessee and Southaven, Mississippi (3)

0% 4.7% 16.8%

Concorde Career Institute - Jacksonville, Florida and Orlando, Florida 0% 4.0% 13.6%

Concorde Career Institute - Miramar, Florida (3)

0% 5.3% 18.0%

Concorde Career Institute - Tampa, Florida 0% 3.7% 13.4%

Concorde Career College - Portland, Oregon 0% 2.9% 9.3%

All proprietary postsecondary institutions (5)

0% 3.1% 11.2%

(1) Based on information published by ED.

Due to the COVID-19 pandemic, ED paused all loan payments from March 13, 2020 through October 1, 2023.

This has significantly decreased the default rates starting with the 2019 Cohort and resulted in 0% for the 2020 Cohort.

(3) As of September 30, 2023, these institutions were subject to a 30-day delay in receiving the first disbursement on federal student loans for first-time borrowers due to a three-year cohort default rate that was 15% or greater for one of the three most recent years.

(4) We completed the acquisition of MIAT on November 1, 2021 and Concorde on December 1, 2022.

As a result, the cohort default rates presented here relate to periods prior to our ownership.

However, because these rates affect our current collection timing on disbursements of federal student loans, we have included the rates within the table.

(5) Includes other proprietary institutions beyond the Company.

This has significantly decreased the default rates starting with the 2019 Cohort, and resulted in a 0% default rate for the 2020 and 2021 Cohort Rate for all UTI institutions.

An institution whose cohort default rate exceeds 30% in consecutive fiscal years may be subject to conditions and restrictions and will lose eligibility if the rate remains above 30% three years in a row.

An institution also will lose eligibility if its rate exceeds 40% for any fiscal year.

As demonstrated in the table above, none of our institutions had a three-year cohort default rate of 30% or greater for 2020, 2019, or 2018, which are the three most recent FFYs with published rates.

An institution also will lose eligibility if its rate

exceeds 40% for any fiscal year.

An institution whose three-year cohort default rate is 15% or greater for any one of the three preceding years is subject to a 30-day delay in receiving the first disbursement on federal student loans for first-time borrowers.

None of our institutions had a three-year cohort default rate of 7% or greater for 2021, 2020, or 2019, which are the three most recent FFYs with published rates.

Financial Responsibility

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The composite score utilizes information provided in the institutions’ annual audited financial statements and is based on three ratios:

(1) the equity ratio which measures the institution’s capital resources, ability to borrow and financial

(1) the equity ratio which measures the institution’s capital resources, ability to borrow and financial viability;

(2) the primary reserve ratio which measures the institution’s ability to support current operations from expendable resources;

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ED’s regulations permit ED to examine the financial statements of Universal Technical Institute, Inc., the financial statements of each institution and the financial statements of any related party.

ED has required us to provide certain information on a regular basis following our issuance of preferred stock on June 24, 2016, and we continue to provide monthly reports to ED pursuant to such direction.

For our year ended September 30, 2024, we calculated our composite score to be 2.3.

However, the composite score calculations and resulting requirements imposed on our institutions are subject to determination by ED once it receives and reviews our audited financial statements.

Between composite score calculations, ED also will reevaluate the financial responsibility of an institution following the occurrence of certain “triggering events,” which must be timely reported to the agency.

ED may determine that an institution is not able to meet its financial or administrative obligations if a triggering event occurs.

On October 31, 2023, ED published new regulations on financial responsibility that became effective July 1, 2024.

Among other things, the new financial responsibility regulations significantly modify and expand the mandatory and discretionary triggering events that require an institution to post a letter of credit or other form of financial protection with ED.

The rules provide that a separate letter of credit of not less than 10% of the institution’s prior year Title IV receipts is required for each mandatory or discretionary triggering event, such that multiple triggering events could subject an institution to substantial cumulative financial protection obligations.

Examples of mandatory triggering events in the new regulations include an action by ED to recoup adjudicated borrower defense to repayment claims where the potential amount of recovery would cause the institution’s recalculated composite score to drop below 1.0.

Specified discretionary triggers, which provide ED flexibility on whether to require a letter of credit based on the financial impact the triggering event would have on the institution, include the existence of pending group-process borrower defense to repayment claims.

We did not have any triggering events for our year ended September 30, 2024.

Borrower Defense to Repayment

Under the HEA and its implementing regulations, students may file a claim with ED to discharge their federal Direct Loans (or Direct Consolidated Loans) if, generally, their institution misled them or engaged in other misconduct related to the making of their federal loans or the provision of their educational services.

Under the HEA and its implementing regulations, students may file a claim with ED to discharge their federal Direct Loans (or Direct Consolidated Loans) if, generally, they believe their institution misled them or engaged in other misconduct related

to the making of their federal loans or the provision of their educational services.

This is referred to as a “borrower defense to repayment” or “BDR” claim.

The regulations governing the standards and processes pursuant to which BDR claims are adjudicated have been revised multiple times since their introduction in 1994, with the result that the current regulatory framework is extraordinarily complex.

It is generally the case that an individual BDR claim would be adjudicated by an ED staff member and any subsequent recoupment process initiated by ED would be overseen by a hearing official.

But the specific standards and processes that apply vary depending on when the underlying loan was made, and certain versions of the law permit the formation of a group claims process by ED.

On November 1, 2022, the Biden administration promulgated a revised version of the BDR rule, which took effect on July 1, 2023.

On August 7, 2023, the U.S.

Court of Appeals for the Fifth Circuit issued a nationwide injunction, postponing the implementation of the borrower defense and closed school provisions of the new rule.

The stay on the borrower defense and closed school provisions will remain in effect at least until the Fifth Circuit issues an order as to the pending motions that are on appeal.

Until that time, the previous versions of the borrower defense and closed school provisions are in effect.

On June 22, 2022, ED reached a settlement in the case titled Sweet v.

Court of Appeals for the Fifth Circuit issued a nationwide preliminary injunction, enjoining the implementation of the borrower defense and closed school provisions of that rule.

While this case is decided, the previous versions of the borrower defense and closed school provisions are in effect.

According to data released by ED in response to Freedom of Information Act requests, over 600,000 BDR claims had been filed against 4,900 institutions of higher education (or about 83% of Title IV-eligible institutions of higher education) by December 31, 2022.

Frustrated with ED’s inability to process BDR claims, a group of former borrowers sued ED in federal district court in California.

On June 22, 2022, the parties in Sweet, et al.

Miguel Cardona and the United States Department of Education reached a settlement agreement which generally provided that all BDR claims filed prior to June 22, 2022 would be discharged with no or minimal adjudication by July 28, 2025.

Also, because these discharges would be managed without input from the schools alleged to have engaged in misconduct, such claims could not serve as the basis of a recoupment action against a school.

For any borrower who attended Concorde, as well as 152 other named schools, and had a BDR claim pending as of June 22, 2022, the borrower will receive “Full Settlement Relief.” Full Settlement Relief means that the federal student loan(s) associated with the borrower’s attendance at the school will be discharged, ED will refund any amounts paid to ED on those loans, and the credit tradeline for those loans will be deleted from the borrower’s credit report.

Concorde’s inclusion as a named institution in the Sweet settlement is not a finding of misconduct and does not constitute evidence that could or would be considered in an action by ED against Concorde.

The Sweet settlement also provided that BDR claims filed between June 22, 2022 and November 15, 2022 would be adjudicated no later than January 28, 2026, or would be automatically discharged.

Schools would have the opportunity to review and respond to this group of claims, and also could be subject to recoupment actions for any loan amounts discharged.

In fall 2023, ED began providing institutions with BDR claims filed in the June to November 2022 period.

In doing so, ED acknowledged that it was not conducting any substantive review of the applications ( e.g ., determining whether an application asserts a valid basis for a BDR claim) before sending them to institutions.

In late 2023, ED provided us with a de minimis number of BDR claims that had been filed by former UTI and MIAT students.

Then, in late February 2024, ED began providing us with approximately 2,500 BDR claims from former students of our Concorde institutions.

While these BDR claims were filed with ED during the June 22, 2022 to November 15, 2022 time period noted above, the borrowers filing the claims may have been in attendance many years prior to that date, including, in some instances, more than 20 years ago.

With regard to Concorde, all the claims were made by students who attended Concorde prior to the Company’s acquisition of the Concorde schools in December 2022.

We have reviewed and responded to every BDR complaint received.

All BDR claims made against MIAT have been denied by ED.

Claims made against UTI or Concorde have yet to be adjudicated.

If ED were to discharge some amount of loans, ED will, at a later date, determine whether to engage in a separate proceeding to recoup such amount from the applicable school.

This process would take place before a hearing official, and the school would have an opportunity to contest the recoupment.

Substantial Misrepresentation

The regulatory definitions of “misrepresentation” and “substantial misrepresentation” enforced by ED are exceptionally broad and do not require intent by the institution to misrepresent, or actual reliance by the person to whom the alleged

misrepresentation was made.

Therefore, it is possible that a statement made by the institution or one of its service providers or representatives could be construed by ED to constitute a substantial misrepresentation, even if the statement was made in error, without intent to misrepresent, and the person to whom it was made did not actually rely upon it.

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The “incentive compensation” prohibition forbids institutions from providing any commission, bonus, or other incentive payment based in any part, directly or indirectly, on success in securing enrollments or the award of financial aid to any person or entity engaged in any student recruiting or admission activities or in making decisions regarding the awarding of Title IV Program funds.

We believe our compensation practices for our admissions representatives comply with the current regulations and ED’s guidance.

We believe our compensation practices for our admissions representatives comply with the current

regulations and ED’s guidance.

We will continue to evaluate other compensation options under these regulations and guidance.

Gainful Employment/Financial Value Transparency

The HEA requires all programs offered by proprietary institutions, and all non-degree programs offered by public and private non-profit institutions, to “prepare students for gainful employment in a recognized occupation.” On October 10, 2023, ED published its Financial Value Transparency and Gainful Employment Rule (the “GE Rule”), effective July 1, 2024.

This rule covers all Title IV-participating programs at all Title IV-participating institutions of higher education.

Under the GE Rule, all institutions will be required to report to ED an extraordinary array of data for their Title IV-participating programs and students.

Utilizing the reported data, ED will calculate and disclose debt-to-earnings (“D/E”) rates and an “Earnings Premium” for every Title IV-participating program on a new “program information website.” Upon finalizing the D/E rates and Earnings Premium, ED will issue a notice of determination to the institution informing it of the D/E rates and Earnings Premium measure for each program, as well as whether each program is passing or failing, and the consequences of that determination.

Failing programs will be subject to a range of sanctions.

Most significantly, a GE Program, meaning Title IV non-degree programs offered by public and private non-profit institutions and all Title IV programs offered by proprietary institutions, becomes ineligible for federal financial aid if the program (1) fails the D/E rates test in two out of any three consecutive award years for which the program’s D/E rates are calculated, or (2) fails the Earnings Premium test in two out of any three consecutive award years for which the program’s Earnings Premium is calculated.

D/E rates and an Earnings Premium for each program also will be calculated and disclosed to prospective and current students and will be labeled “low-earning” or “high-debt-burden,” per ED determination.

As of September 30, 2024, ED has pushed back twice the reporting by schools of this information:

first from July 31, 2024 to October 1, 2024, and then from October 1, 2024 to January 15, 2025.

Title IV Program Rulemakings

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ED has recently undertaken, or proposed to undertake, rulemakings on the following topics:

• Between October and December of 2021, the Affordability and Student Loans committee negotiated new rules relating to nine issue areas:

(1) borrower defense to repayment, (2) closed school loan discharges, (3) total and permanent disability discharges, (4) false certification discharges, (5) income-driven loan repayment plans, (6) interest capitalization on Federal student loans, (7) pre-dispute arbitration and class action waiver clauses, (8) Pell Grants for prison education programs, and (9) Public Service Loan Forgiveness.

Shortly thereafter, between January and March 2022, the Institutional and Programmatic Eligibility committee considered new rules relating to seven issue areas:

(1) the 90/10 rule, (2) ability to benefit, (3) certification procedures for participation in Title IV Programs, (4) change of ownership and control, (5) financial responsibility, (6) gainful employment, and (7) standards of administrative capability.

• On October 28, 2022, ED published a final rule amending regulations governing Pell Grants for prison education programs, the 90/10 rule, and changes in ownership and control, effective July 1, 2023.

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• On October 10, 2023, ED published a final rule related to financial value transparency and gainful employment, effective July 1, 2024.

On October 31, 2023, ED published final rules relating to (1) financial responsibility, (2) administrative capability, (3) certification procedures;

and (4) ability to benefit, effective July 1, 2024

• ED has announced plans to convene another round of negotiated rulemaking in the coming months.

Potential topics for these rulemaking sessions include:

(1) accreditation and related issues;

On October 31, 2023, ED published final rules relating to (1) financial responsibility, (2) administrative capability, (3) certification procedures, and (4) ability to benefit, effective July 1, 2024.

• ED established a Student Loan Relief Committee to consider revisions to sections of 34 C.F.R.

Parts 30, 682 and 685 addressing provisions related to the modification, waiver, release or compromise of Federal student loans.

The Student Loan Relief Committee completed four negotiating sessions in October, November and December 2023 and February 2024.

On April 17, 2024, ED issued a Notice of Proposed Rulemaking announcing proposed regulatory changes addressing the Secretary’s discretionary authority to waive loan repayment obligations.

ED has collected comments on the proposed regulatory changes but has not yet issued final regulatory updates.

• ED established a Program Integrity and Institutional Quality Committee to consider proposed changes to regulations addressing (1) the Secretary’s recognition of accrediting agencies;

(2) institutional eligibility, including State authorization;

(3) third-party servicers and related issues;

(4) distance learning;

(3) distance education;

(4) return of Title IV funds;

(5) cash management;

(7) the use of deferments and forbearances;

(8) the Federal TRIO programs;

and (9) student loan debt relief.

and (6) the Federal TRIO Programs.

ED also announced a Federal TRIO Programs Subcommittee to include additional expertise and to make recommendations to the full committee on the subject.

The full Committee met for three negotiating sessions in January, February and March 2024, and the Subcommittee met twice in January and February 2024.

On July 24, 2024, ED issued a Notice of Proposed Rulemaking announcing proposed regulatory changes addressing (1) distance education;

(2) return of Title IV funds;

and (3) the Federal TRIO Programs.

ED has collected comments on the proposed regulatory changes but has not yet issued final regulatory updates.

ED also has not yet announced any

proposed regulatory changes addressing (1) the Secretary’s recognition of accrediting agencies;

(2) institutional eligibility, including State authorization;

and (3) cash management.

ED Non-Discrimination Rulemakings

As a condition of receiving federal financial assistance, we are responsible for complying with applicable laws and regulations promulgated by ED regarding non-discrimination.

On July 12, 2022, ED published a proposed rule to amend the regulations implementing Title IX of the Education Amendments of 1972.

This proposed rule, which represents a significant revision of the current rules, is expected to arrive in final form in late 2023.

ED also has indicated that it will be proposing a rule to amend regulations related to nondiscrimination on the basis of disability.

On April 29, 2024, ED published a final rule (the “2024 Title IX Rule”) amending the regulations implementing Title IX of the Education Amendments of 1972, effective August 1, 2024 (the “Title IX Rules”).

This rule represents a significant revision of the Title IX Rules.

As of September 30, 2024, pursuant to various Federal court orders, ED enjoined from enforcing the 2024 Title IX Rule in 26 states, including Florida, Missouri, Mississippi, Tennessee, and Texas, and at schools of a list of institutions identified by a federal district court in Kansas, including Universal Technical Institute of Arizona Inc.

As of September 30, 2024, ED also has indicated that it will be proposing a rule to amend regulations related to nondiscrimination on the basis of disability.

Other Benefit or Aid Programs

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however, some installations will not provide MOUs to institutions that do not teach at the installation.

We continue to strengthen and develop relationships with our existing contacts and with new contacts in order to maintain and rebuild our access to military installations.

We continue to strengthen and

develop relationships with our existing contacts and with new contacts in order to maintain and rebuild our access to military installations.

State Financial Aid Programs

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These agencies have varying processes and criteria for evaluating a change of control and may elect to attach conditions to the continued approval of the acquired school following the closing of the transaction.

The approvals granted by ED after completing the acquisition of both MIAT and Concorde, for example, include increased reporting and notification obligations, as well as requirements that neither school group may add new programs or locations, or change existing programs.

The approvals granted by ED after completing the acquisitions of both MIAT and Concorde, for example, include increased reporting and notification obligations, as well as requirements that neither school group may add new programs or locations, or change existing programs.

Existing program content at each school group may be changed so long as the credit and contact hours reported to ED do not change.

And existing campuses may be moved to new locations in the area.

This allows schools to keep program content current and to relocate to improved facilities.

Existing campuses may be moved to new locations in the area, which allows schools to keep program content current and to relocate to improved facilities.

Such restrictions on new campuses and programs typically remain in place for the time required for ED to review two years of audited financials for the acquired school under the new ownership.

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As a postsecondary educational institution, we are subject to a broad range of consumer protection and other laws, such as those that relate to recruiting, marketing, the protection of personal information, student financing and payment servicing.

Such laws and regulations are enforced by federal agencies including the Federal Trade Commission (“FTC”) and the Consumer Financial Protection Bureau (“CFPB”) and various state agencies and state attorneys general.

Such laws and regulations are enforced by federal agencies including the Federal Trade Commission (“FTC”) and the Consumer Financial Protection Bureau (“CFPB”) and by various state agencies and state attorneys general.

We received a January 18, 2022 letter from the CFPB explaining that it was assessing whether UTI “is subject to the CFPB’s supervisory authority based on its activities related to student lending.” The CFPB’s letter then requested certain information about extensions of credit to our students;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business