Universal Technical Institute Inc. increased revenues for its fiscal first quarter, which ended Dec. 31, 2007, the company reported in a Feb. 6 press release. However, the company’s net income fell for the period compared to the 2007 first quarter.
Net revenues for the first quarter of fiscal 2008 were $90.0 million, a 0.6 percent increase from the same period in the previous year. Net income was $6.5 million, compared with $6.9 million for the first quarter a year ago.
The net revenue increase primarily relates to higher tuition rates and an additional earning day during the quarter which was partially offset by lower average undergraduate student enrollment combined with an increase in need based tuition scholarships, higher military and veteran discounts as well as other reductions to income.
Operating income in the first quarter of fiscal 2008 was $9.3 million compared with $10.5 million for the same period in the previous year. The overall decrease in operating income reflects higher occupancy costs, professional and contract services costs and was partially offset by lower advertising costs during the first quarter. Advertising costs were lower during the first quarter due to our planned decrease in spending related to less audience focus during the holiday and political advertising season.
Student Enrollment Data
Average undergraduate enrollment for the first quarter of fiscal 2008 was 16,576 students, a 4.0 percent decrease compared with the same period a year ago. Undergraduate enrollment at the end of the first quarter of fiscal 2008 was 15,415 students, a 5.2 percent decrease compared with the number of students at the end of the first quarter of fiscal 2007.