May 1, 2013—Universal Technical Institute (UTI), a provider of automotive technician training, reported that student enrollment was down nearly 12 percent in the second quarter of 2013, according to new figures released yesterday.
For the six months ending on March 31, 2013, undergraduate full-time student enrollment was reported at 14,400. This was down from 16,300 students for the second quarter of 2012.
New student starts for the second quarter of 2013 were 5,600, down from 6,700 during the same period in 2013.
UTI says that given the time required for new initiatives to take hold and the increasing lag between students applying for school and starting school, they expect new student starts to be down by mid-to-high single digits in the third quarter of 2013, resulting in a lower average student population for the year.
UTI says these lower levels of enrollment will likely result in a high single digit decline in revenue, operating margin and net income for the company in 2013.
"Due to current conditions, we have made choices that balance cost containment with 'return to growth' initiatives which negatively impacted second quarter financial results," said Kim McWaters, CEO, Universal Technical Institute. "While the next few quarters will continue to be challenging, I am encouraged that we have seen some early indications of improved student interest and internal efficiencies. Our manufacturer partners continue to increase their demand for graduates and as their demand increases, supply of students should follow."
