Universal Technical Institute, Inc. posted decreased revenue, profits and enrollment for the second quarter of its 2008 fiscal year, according to a May 6 press release from the company.
Net revenues for the quarter were $88.2 million, a 3.8 percent decrease from the second quarter of fiscal 2007. Net income for the past period was $1.9 million compared to $6.1 million for the quarter in 2007.
The decrease in net revenues primarily relates to a decline in average undergraduate student enrollment, partially offset by higher tuition prices.
Operating income for the 2008 second quarter was $2.3 million, compared with $9.5 million for the same period a year ago. The decrease reflects increased professional and contract services costs, occupancy costs, advertising costs and bad debt expense. These higher costs were partially offset by a decrease in compensation and benefits.
“Our financial results reflect the accumulation of several quarters of insufficient student contracts and starts,” said Kimberly McWaters, UTI president and CEO. “This shortfall negatively impacted our average student population, revenue and income.
Average undergraduate full-time student enrollment for the second quarter 2008 was 15,092, a decrease from the 16,389 that were enrolled during the same period in 2007. End of period undergraduate full-time student enrollment was 14,637 in this year’s second quarter, down compared to 16,026 enrolled at the end of the 2007 quarter.
Lower starts were the primary contributor to declines in the second quarter full-time student enrollment statistics, the company said.