Universal Technical Institute, Inc. (UTI), a provider of technical education training, says net income for its second quarter of fiscal 2005, ended March 31, was $9.2 million, or $0.32 per diluted share, a 13.6% increase from $8.1 million, or $0.28 per diluted share, for the same quarter in fiscal 2004.
UTI's net revenues for the second quarter were $77.5 million, a 21.7% increase from $63.7 million for the same quarter last year. Income from operations for the second quarter of fiscal 2005 was $14.4 million, a 6.9% increase from $13.5 million for the second quarter of fiscal 2004.
Net income for the six months ended March 31, 2005 was $19.0 or $0.67 per diluted share, a 22.4% increase from net income of $15.5 million or $0.58 per diluted share, for the same period in fiscal 2004. Net income margin for the first six months of fiscal 2005 and fiscal 2004 was 12.6%.
Net revenues for the first half of 2005 were $150.8 million, a 22.9% increase from $122.7 million for the same period in the previous year. Income from operations was $29.9 million, an increase of 8.7% as compared to the same period in the previous year.
Operating margin for the first six months of fiscal 2005 was 19.8% down from 22.4% for the first six months of fiscal 2004. Expansion costs related to occupancy, advertising and sales representative compensation costs for the first half of fiscal 2005 were higher as a percentage of revenue as compared to the same period last year, company leaders said.
"During our second fiscal quarter we closed on our Norwood facility near Boston (planned to open in the fourth quarter) and have begun the retrofit of the existing building,” said Kimberly McWaters, UTI president and CEO. “We are focused on meeting the needs of our customers in the geographic regions that support strong placement opportunities for our students and expanding our national footprint."
McWaters says UTI has amended the firm's lease in Exton, Penn., to allow for the expansion of a Diesel program, and said construction has started at the Collision Repair and Refinish program in Houston, Texas. Furthermore, the company plans yet another campus in Sacramento, Calif., to open during the first half of fiscal 2006.
UTI's average undergraduate enrollment for the three months ended March 31, 2005 was 15,517 students, representing an increase of 19.3% from 13,006 students for the same period a year ago. Average undergraduate enrollment for the six months ended March 31, 2005 was 15,521, an increase of 20.0% from 12,931 for the same period a year ago.
UTI is targeting a 21% to 23% increase in net revenue for the fiscal year ending September 30, 2005, unchanged from the company's prior guidance. Fiscal 2005 net income margins are expected to range from 11.0% to 11.5%.
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