The Universal Technical Institute (UTI) reported a revenue decrease of 5.3 percent to $80.6 million for its third quarter, down from the prior year period at $85.2 million, stated a UTI press release.
A decline in average undergraduate student enrollment and an increase in need-based tuition scholarships contributed to UTI’s loss in revenue. The company saw an operating loss of $1.4 million compared to an operating income of $5.7 million during the same period last year.
Kimberly McWaters, president and CEO of UTI, says the institute is optimistic despite third-quarter results.
“Our key leading indicators of lead generation, student contracts and show rate continued to improve throughout this quarter, building upon the positive momentum gained last quarter,” she said in the release. “Our investment to drive this growth during a quarter in which our student population is traditionally at its lowest, adversely affected our financial results. We remain committed to our strategic plan that has led to these improvements. However, it will take time to fully realize the positive impact to our business.”