Universal Technical Institute Inc. posted a slight revenue increase but a sharp drop in net income in its fiscal year, according to a Nov. 27 release from the company.
Revenue for the year were $353.4 million, a 1.8 percent increase, compared with $347.1 million in the previous year. The increase primarily relates to higher tuition prices combined with a previously disclosed change in the company’s retake policy as compared to the prior year. These were partially offset with a decrease in average undergraduate student enrollment and an increase in need-based tuition scholarships, higher military and veteran discounts and other reductions to net income.
Net income for the year ended Sept. 30 declined 43.2 percent to $15.6 million compared with $27.4 million in the same period last year.
Operating income in the year ended Sept. 30, 2007 was $23.8 million, a decrease of 41.7 percent, and includes costs associated with a reduction in force for both years. The decrease reflects higher operating costs primarily related to increases in employee compensation and benefits, advertising, depreciation, occupancy costs and contract services expense, which were partially offset with a decrease in bad debt expense. The just-ended fiscal year included approximately $4.5 million in costs associated with a reduction in force and reorganization of the sales team, compared to $1.1 million in costs related to a reduction in force in the fourth quarter of fiscal 2006.