UTI revenue up, net income down
Universal Technical Institute Inc. reported its second quarter financial results Tuesday.
The technical education provider saw a 3.3 percent increase in net revenues in its fiscal 2007 second quarter to $91.7 million, up from $88.7 million for the same period in the previous year.
Net income was $6.1 million, down 26.4 percent from $8.3 million in the second quarter a year ago.
The net revenue increase primarily relates to higher tuition prices combined with the previously disclosed change in retake policy and a greater number of students taking two courses at the same time as compared to the prior year. These increases were partially offset by a decrease in average undergraduate student enrollment and an increase in tuition discounts.
UTI’s operating income in the second quarter of fiscal 2007 was $9.5 million, a 24.5 percent decrease, compared with $12.5 million in the same period in the previous year. This decrease reflects higher operating costs, primarily related to increases in employee compensation and benefits, advertising and depreciation expense. These increases were partially offset by a decrease in bad debt expense.
