Universal Technical Institute, Inc. Q4 2024 Financial Supplement
Financial Supplement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. These statements are based on our management’s current beliefs, expectations and assumptions about future events, conditions and results and on information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Discussions containing these forward-looking statements may be found, among other places, in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” incorporated by reference from our most recent Annual Report on Form 10-K, in our subsequent Quarterly Reports on Form 10-Q and certain of our Current Reports on Form 8-K, as well as any amendments thereto, filed with the Securities and Exchange Commission (the “SEC”). In addition, statements that refer to projections of earnings, revenue, costs or other financial items in future periods; anticipated growth and trends in our business or key markets; cost synergies, growth opportunities and other potential financial and operating benefits; future growth and revenues; future economic conditions and performance; anticipated performance of curriculum; plans, objectives and strategies for future operations; and other characterizations of future events or circumstances, and all other statements that are not statements of historical fact are forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated or implied in our forward-looking statements due to a number of factors, including, but not limited to, those set forth under the section entitled “Risk Factors” in our filings with the SEC. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans’ benefit programs; continued Congressional examination of the for-profit education sector; our failure to maintain eligibility for or the ability to process federal student financial assistance; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; failure to comply with private education loan requirements; the effect of "borrower defense to repayment" regulation; the effect of postsecondary education regulatory environment as a results of U.S. federal elections; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students’ ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the Credit Agreement; increased scrutiny and changing expectations regarding our environmental, social and governance practices; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Given these risks, uncertainties and other factors, many of which are beyond our control, you should not place undue reliance on these forward-looking statements. Neither we nor any other person makes any representation as to the accuracy or completeness of these forward-looking statements and, except as required by law, we assume no obligation to update these forward-looking statements publicly, or to revise any forward-looking statements, even if new information becomes available in the future. This presentation also contains estimates and other statistical data made by independent parties, and by us, relating to market size and growth and other data about our industry and our business. This data involves several assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. PAGE 2
Financial Supplement Consolidated Q4 and FY 2024 Highlights Q4 2024 FY 2024 Revenue Revenue $196.4 million $732.7 million Net Income Net Income $18.8 million $42.0 million Adjusted EBITDA Adjusted EBITDA $37.3 million $102.9 million Diluted Earnings Per Share Diluted Earnings Per Share $0.34 $0.75 PAGE 3 ■ Company delivered Q4 and FY 2024 financial results ahead of expectations on all financial metrics and in-line with student start guidance. Q4 2024 • Segment revenue contribution in the quarter was $130.5 million for UTI (13.2% Y/Y growth) and $65.8 million for Concorde (19.7% Y/Y growth). • Total new student starts of 11,492, with UTI delivering 7,068 (8.7% Y/Y growth) and Concorde delivering 4,424 (13.7% Y/Y growth). FY 2024 • Segment revenue contribution was $486.4 million for UTI (13.3% Y/Y growth) and $246.3 million for Concorde (38.3% Y/Y growth). • Total new student starts of 26,885, with UTI delivering 15,138 (6.7% Y/Y growth) and Concorde delivering 11,747 (39.3% Y/Y growth). ■ Total available liquidity of $230.9 million, including $69.0 million of remaining capacity under Company’s revolving credit facility, which provides ample liquidity for any potential business needs or new opportunities that may arise. ■ The Company remains confident in its previously announced 5-year strategic targets with a Revenue CAGR of ~10% and Adjusted EBITDA margin approaching 20% by FY 2029. Note: See Company Press Release and Investor Presentation dated November 20, 2024 for more details on guidance, including non-GAAP reconciliations.
Financial Supplement Consolidated Q4 2024 Summary Results ($ in millions) ($ in millions, except for student data) 3 Mos. 9/30/24 3 Mos. 9/30/23 YoY Change 12 Mos. 9/30/24 12 Mos. 9/30/23(1) YoY Change Revenues $196.4 $170.3 15.3% $732.7 $607.4 20.6% Operating expenses $170.3 $160.0 6.5% $673.8 $586.0 15.0% Ed Services $99.4 $93.2 6.7% $384.5 $329.9 16.6% SG&A $71.0 $66.8 6.3% $289.3 $256.1 12.9% Income from operations $26.0 $10.3 151.7% $58.9 $21.4 175.2% Net interest and other expense $(0.7) $(1.1) (40.5)% $(2.7) $(3.3) (19.7)% Income tax (expense) benefit $(6.5) $(2.5) 157.0% $(14.2) $(5.8) 146.8% Net income $18.8 $6.7 181.1% $42.0 $12.3 240.9% Adjusted EBITDA(2) $37.3 $19.2 94.6% $102.9 $64.2 60.1% Operating cash flow $67.5 $53.9 25.3% $85.9 $49.1 74.8% Adjusted free cash flow(2) $62.6 $50.7 23.5% $73.5 $49.1 49.6% Capital expenditures $7.5 $7.8 (3.9)% $24.3 $56.7 (57.1)% PAGE 4 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 2. For a detailed reconciliation of Non-GAAP measures, see slides 16-22.
Financial Supplement Consolidated Statements of Operations Trend ($ in thousands, except EPS) 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(1) 3 Mos. 9/30/23 3 Mos. 6/30/23 3 Mos. 3/31/23 3 Mos. 12/31/22(1) Revenues $ 732,687 $ 196,358 $ 177,458 $ 184,176 $ 174,695 $ 607,408 $ 170,298 $ 153,286 $ 163,820 $ 120,004 Operating expenses: Educational services and facilities 384,529 99,355 95,277 97,488 92,409 329,870 93,155 88,377 86,930 61,408 SG&A 289,267 70,981 74,735 75,496 68,055 256,139 66,804 64,246 70,941 54,148 Total operating expenses 673,796 170,336 170,012 172,984 160,464 586,009 159,959 152,623 157,871 115,556 Income from operations 58,891 26,022 7,446 11,192 14,231 21,399 10,339 663 5,949 4,448 Total other (expense) income, net (2,661) (652) (689) (638) (682) (3,312) (1,095) (1,236) (706) (275) Income tax (expense) benefit (14,229) (6,530) (1,772) (2,767) (3,160) (5,765) (2,541) 64 (1,763) (1,525) Net income (loss) $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 $ 12,322 $ 6,703 $ (509) $ 3,480 $ 2,648 Preferred stock dividends (1,097) — — — (1,097) (5,069) (1,278) (1,263) (1,251) (1,277) Income (loss) available for distribution 40,904 $ 18,840 $ 4,985 $ 7,787 $ 9,292 7,253 $ 5,425 $ (1,772) $ 2,229 $ 1,371 Income allocated to participating securities (2,855) $ — $ — $ — $ (2,855) (2,712) $ (2,025) $ — $ (833) $ (514) Net income (loss) available to common shareholders 38,049 $ 18,840 $ 4,985 $ 7,787 $ 6,437 4,541 $ 3,400 $ (1,772) $ 1,396 $ 857 Net income (loss) per share, diluted 0.75 $ 0.34 $ 0.09 $ 0.14 $ 0.17 0.13 $ 0.10 $ (0.05) $ 0.04 $ 0.02 EBITDA(2) 88,711 $ 33,927 $ 14,842 $ 18,513 $ 21,429 47,097 $ 16,848 $ 7,407 $ 12,821 $ 10,021 Total Shares Outstanding (Period End) 53,817 53,817 53,812 53,801 53,732 34,075 34,075 34,151 34,149 33,925 Diluted Shares Outstanding (Period End) 50,851 55,404 54,951 54,770 37,439 34,479 34,824 34,067 34,553 34,408 PAGE 5 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 2. For a detailed reconciliation of Non-GAAP measures, see slides 16-22.
Financial Supplement Consolidated Results of Operations Trend Percent of Revenue 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 12 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/24 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23(1) 9/30/23 6/30/23 3/31/23 12/31/22(1) Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Operating Expenses: Educational services and facilities 52.5% 50.6% 53.7% 52.9% 52.9% 54.3% 54.7% 57.7% 53.1% 51.2% SG&A 39.5% 36.1% 42.1% 41.0% 39.0% 42.2% 39.2% 41.9% 43.3% 45.1% Total operating expenses 92.0% 86.7% 95.8% 93.9% 91.9% 96.5% 93.9% 99.6% 96.4% 96.3% Income from operations 8.0% 13.3% 4.2% 6.1% 8.1% 3.5% 6.1% 0.4% 3.6% 3.7% Total other (expense) income, net (0.4)% (0.3)% (0.4)% (0.3)% (0.4)% (0.5)% (0.6)% (0.7)% (0.4)% (0.2)% Income tax (expense) benefit (1.9)% (3.3)% (1.0)% (1.5)% (1.8)% (0.9)% (1.5)% 0.0% (1.1)% (1.3)% Net income (loss) 5.7% 9.6% 2.8% 4.2% 5.9% 2.0% 3.9% (0.3)% 2.1% 2.2% Preferred stock dividends (0.1)% —% —% —% (0.6)% (0.8)% (0.8)% (0.8)% (0.8)% (1.1)% Income (loss) available for distribution 5.6% 9.6% 2.8% 4.2% 5.3% 1.2% 3.2% (1.2)% 1.4% 1.1% Income allocated to participating securities (0.4)% —% —% —% (1.6)% (0.4)% (1.2)% —% (0.5)% (0.4)% Net income (loss) available to common shareholders 5.2% 9.6% 2.8% 4.2% 3.7% 0.7% 2.0% (1.2)% 0.9% 0.7% EBITDA margin(2) 12.1% 17.3% 8.4% 10.1% 12.3% 7.8% 9.9% 4.8% 7.8% 8.4% PAGE 6 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 2. For a detailed reconciliation of Non-GAAP measures, see slides 16-22.
Financial Supplement Quarterly Trend – Segment Key Metrics ($ in millions, except revenue per student amounts) ($ in millions, except for student data) 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 UTI UTI UTI UTI UTI Concorde Concorde Concorde Concorde Concorde New student starts 7,068 2,916 2,840 2,314 6,500 4,424 2,651 2,640 2,032 3,892 Y/Y growth/(decline) 8.7% (12.5)% 19.6% 17.2% 9.0% 13.7% 34.8% 17.2% 533.0% —% Average undergraduate full-time active students 14,067 13,041 13,810 14,321 12,883 9,113 8,038 8,506 8,244 8,008 Average student Y/Y growth/ (decline) 9.2% 13.0% 10.3% 6.0% 1.4% 13.8% 14.0% 8.9% 6.6% —% Revenue per student $9,300 $9,000 $8,900 $8,100 $8,900 $7,200 $7,500 $7,200 $7,200 $6,900 Y/Y growth/(decline) 4.5% 3.4% 3.5% 3.8% 2.3% 4.3% 1.4% 0.0% 28.6% N/A Revenues $130.5 $117.1 $123.3 $115.4 $115.3 $65.8 $60.3 $60.9 $59.3 $55.0 Y/Y growth/(decline) 13.2% 16.1% 14.7% 9.3% 4.2% 19.6% 15.0% 8.2% 311.8% —% Income from operations $30.4 $14.1 $18.1 $15.1 $14.5 $6.7 $3.7 $3.2 $7.1 $3.1 Margin 23.3% 12.0% 14.7% 13.1% 12.6% 10.2% 6.1% 5.3% 12.0% 5.6% Adjusted EBITDA(1) $37.5 $20.7 $24.4 $21.6 $21.5 $8.3 $5.9 $5.4 $8.8 $4.0 Adjusted EBITDA margin 28.7% 17.7% 19.8% 18.7% 18.6% 12.6% 9.8% 8.9% 14.8% 7.3% PAGE 7 1. For a detailed reconciliation of Non-GAAP measures, see slides 16-22. Note: Corporate results are not included within these metrics as they do not have any student data.
Financial Supplement Segment Results of Operations - Fourth Quarter ($ in thousands) PAGE 8 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/24 9/30/24 9/30/24 9/30/24 9/30/23 9/30/23 9/30/23 9/30/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 130,545 $ 65,813 $ — $ 196,358 $ 115,332 $ 54,966 $ — $ 170,298 Ed Services 59,029 40,326 — 99,355 58,185 34,970 — 93,155 SG&A 41,072 18,773 11,136 70,981 42,658 16,867 7,279 66,804 Total operating expenses 100,101 59,099 11,136 170,336 100,843 51,837 7,279 159,959 Income (loss) from operations 30,444 6,714 (11,136) 26,022 14,489 3,129 (7,279) 10,339 Net income (loss) 28,760 6,777 (16,697) 18,840 13,048 3,169 (9,514) 6,703 EBITDA(1) 36,445 8,133 (10,651) 33,927 20,640 3,568 (7,360) 16,848 Adjusted EBITDA(1) 37,454 8,294 (8,439) 37,309 21,488 3,987 (6,306) 19,169 Adjusted EBITDA margin 28.7% 12.6% —% 19.0% 18.6% 7.3% —% 11.3% 1. For a detailed reconciliation of Non-GAAP measures, see slides 16-22.
Financial Supplement Segment Results of Operations - YTD ($ in thousands) PAGE 9 12 Mos. 12 Mos. 12 Mos. 12 Mos. 12 Mos. 12 Mos. 12 Mos. 12 Mos. 9/30/24 9/30/24 9/30/24 9/30/24 9/30/23 9/30/23 9/30/23 9/30/23 UTI Concorde Corporate Consolidated UTI Concorde Corporate Consolidated Revenues $ 486,376 $ 246,311 $ — $ 732,687 $ 429,317 $ 178,091 $ — $ 607,408 Ed Services 234,022 150,507 — 384,529 216,571 113,299 — 329,870 SG&A 174,598 75,000 39,669 289,267 169,984 54,259 31,896 256,139 Total operating expenses 408,620 225,507 39,669 673,796 386,555 167,558 31,896 586,009 Income (loss) from operations 77,756 20,804 (39,669) 58,891 42,762 10,533 (31,896) 21,399 Net income (loss) 71,646 21,048 (50,693) 42,001 38,324 10,700 (36,702) 12,322 EBITDA(1) 100,698 25,962 (37,949) 88,711 64,119 14,610 (31,632) 47,097 Adjusted EBITDA(1) 104,113 28,327 (29,585) 102,855 71,590 16,296 (23,641) 64,245 Adjusted EBITDA margin 21.4% 11.5% —% 14.0% 16.7% 9.2% —% 10.6% 1. For a detailed reconciliation of Non-GAAP measures, see slides 16-22.
Financial Supplement Segment Results of Operations - Fourth Quarter ($ in thousands) 3 Mos. % of 3 Mos. % of 3 Mos. % of 3 Mos. % of 09/30/2024 Segment 09/30/2024 Segment 09/30/2024 Consolidated 09/30/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPENSES: Compensation and related costs $ 30,810 23.6 % $ 25,109 38.2 % $ — — % $ 55,919 28.5 % Occupancy Costs 7,917 6.1 % 5,316 8.1 % — — % 13,233 6.7 % Supplies, maintenance and student expense 7,483 5.7 % 5,192 7.9 % — — % 12,675 6.5 % Depreciation and amortization expense 5,828 4.5 % 1,167 1.8 % — — % 6,995 3.6 % Contract service expense 878 0.7 % 596 0.9 % — — % 1,474 0.8 % Other educational services and facilities expense 6,113 4.7 % 2,946 4.5 % — — % 9,059 4.6 % Total $ 59,029 45.2 % $ 40,326 61.3 % $ — — % $ 99,355 50.6 % SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: Compensation and related costs $ 22,000 16.9 % $ 7,492 11.4 % $ 6,750 3.4 % $ 36,242 18.5 % Advertising and marketing costs 11,518 8.8 % 6,545 9.9 % 180 0.1 % 18,243 9.3 % Professional and contract service expense 1,727 1.3 % 2,108 3.2 % 3,286 1.7 % 7,121 3.6 % Other selling general and administrative expense 5,827 4.5 % 2,628 4.0 % 920 0.5 % 9,375 4.8 % Total $ 41,072 31.5 % $ 18,773 28.5 % $ 11,136 5.7 % $ 70,981 36.1 % COMPENSATION AND RELATED COST SUMMARY: Salaries, employee benefit and tax expense $ 51,261 39.3 % $ 31,799 48.3 % $ 4,387 2.2 % $ 87,447 44.5 % Bonus expense 771 0.6 % 721 1.1 % 360 0.2 % 1,852 0.9 % Stock based compensation 778 0.6 % 81 0.1 % 2,003 1.0 % 2,862 1.5 % Total compensation and related costs: $ 52,810 40.5 % $ 32,601 49.5 % $ 6,750 3.4 % $ 92,161 46.9 % PAGE 10
Financial Supplement Segment Results of Operations - Year to Date ($ in thousands) 12 Mos. % of 12 Mos. % of 12 Mos. % of 12 Mos. % of 09/30/2024 Segment 09/30/2024 Segment 09/30/2024 Consolidated 09/30/2024 Consolidated UTI Revenue Concorde Revenue Corporate Revenue Consolidated Revenue EDUCATIONAL SERVICES AND FACILITIES EXPENSES: Compensation and related costs $ 121,073 24.9 % $ 94,826 38.5 % $ — — % $ 215,899 29.5 % Occupancy Costs 30,519 6.3 % 21,847 8.9 % — — % 52,366 7.1 % Supplies, maintenance and student expense 33,204 6.8 % 17,479 7.1 % — — % 50,683 6.9 % Depreciation and amortization expense 22,456 4.6 % 4,346 1.8 % — — % 26,802 3.7 % Contract service expense 3,611 0.7 % 2,126 0.9 % — — % 5,737 0.8 % Other educational services and facilities expense 23,159 4.8 % 9,883 4.0 % — — % 33,042 4.5 % Total $ 234,022 48.1 % $ 150,507 61.1 % $ — — % $ 384,529 52.5 % SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: Compensation and related costs $ 90,348 18.6 % $ 30,253 12.3 % $ 27,101 3.7 % $ 147,702 20.2 % Advertising and marketing costs 51,940 10.7 % 25,744 10.5 % 577 0.1 % 78,261 10.7 % Professional and contract service expense 6,810 1.4 % 7,557 3.1 % 11,861 1.6 % 26,228 3.6 % Other selling general and administrative expense 25,500 5.2 % 11,446 4.6 % 130 — % 37,076 5.1 % Total $ 174,598 35.9 % $ 75,000 30.4 % $ 39,669 5.4 % $ 289,267 39.5 % COMPENSATION AND RELATED COST SUMMARY: Salaries, employee benefit and tax expense $ 197,538 40.6 % $ 121,359 49.3 % $ 15,857 2.2 % $ 334,754 45.7 % Bonus expense 11,803 2.4 % 3,507 1.4 % 4,977 0.7 % 20,287 2.8 % Stock based compensation 2,080 0.4 % 213 0.1 % 6,267 0.9 % 8,560 1.2 % Total compensation and related costs: $ 211,421 43.5 % $ 125,079 50.8 % $ 27,101 3.7 % $ 363,601 49.6 % PAGE 11
Financial SupplementNew Student Starts Details 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 3 Mos. 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23 12/31/22 UTI Segment Total New Student Starts 7,068 2,916 2,840 2,314 6,500 3,333 2,374 1,974 Y/Y growth/(decline)(1) 8.7% (12.5)% 19.6% 17.2% 9.0% 5.3% 4.4% 0.1% High School New Student Starts 4,436 708 631 640 4,044 1,195 539 560 Y/Y growth/(decline) 9.7% (40.8)% 17.1% 14.3% 6.8% 15.8% 0.2% 15.9% Adult New Student Starts 1,974 1,586 1,579 1,154 1,919 1,613 1,320 1,013 Y/Y growth/(decline) 2.9% (1.7)% 19.6% 13.9% 11.0% (2.9)% 3.7% 0.2% Military New Student Starts 658 622 630 520 537 525 515 401 Y/Y growth/(decline) 22.5% 18.5% 22.3% 29.7% 19.3% 11.0% 11.0% (16.1)% Concorde Segment Total New Student Starts 4,424 2,651 2,640 2,032 3,892 1,967 2,252 321 Y/Y growth/(decline)(2) 13.7% 34.8% 17.2% —% —% —% —% —% Core New Student Starts 2,391 1,598 1,556 1,375 1,986 1,325 1,384 321 Y/Y growth/(decline)(2) 20.4% 20.6% 12.4% —% —% —% —% —% Clinical New Student Starts 2,033 1,053 1,084 657 1,906 642 868 — Y/Y growth/(decline)(2) 6.7% 64.0% 24.9% —% —% —% —% —% PAGE 12 1. UTI is seeing the impact of timing shifts between June and July which resulted in a 12.5% decline year over year, and Concorde benefiting from timing shifts of clinical start opportunities between the third and fourth quarters, resulting in an increase of 34.8% year over year. 2. The acquisition of Concorde closed on December 1, 2022. Therefore, there is no year-over-year comparability for the Total segment and Concorde segment during the earlier periods.
Financial Supplement Note: On December 18, 2023, the Company exercised in full its right of conversion of the Company’s Series A Preferred Stock which resulted in the conversion of all outstanding Series A Preferred shares into19,296,843 shares of Common Stock. Consolidated Balance Sheet and Cash Flow Summary ($ in thousands) At: 9/30/24 9/30/23(1) Cash & cash equivalents $ 161,900 $ 151,547 Total current assets 221,951 204,985 PP&E (net) 264,797 266,346 Right-of-use assets for operating leases 158,778 176,657 Total assets 744,575 740,685 Operating lease liability – current 22,210 22,481 Long term debt, current portion 2,697 2,517 Total current liabilities 204,963 184,700 Operating lease liability – LT 146,831 165,026 Long term debt 123,007 159,600 Total liabilities 484,344 514,718 Stockholders’ equity 260,231 225,967 Total liabilities & equity $ 744,575 $ 740,685 12 Mos. 9/30/24 12 Mos. 9/30/23(1) Net cash (used in) provided by operating activities $ 85,895 $ 49,148 Cash paid for acquisition, net of cash acquired(1) — (16,381) Net (purchases) proceeds from held-to-maturity securities — 29,000 Purchase of property and equipment, excluding Lisle, Orlando, new campus purchases and program expansion (24,298) (30,529) Purchase of Orlando, Florida campus buildings and associated land — (26,156) Other Investing Activities 296 — Net cash used in investing activities (24,002) (44,066) Proceeds from revolving credit facility 41,000 90,000 Payment on revolving credit facility (75,000) — Payment of preferred stock cash dividend (1,097) (5,069) Preferred share repurchase (11,503) — Payments on term loans and finance leases (2,518) (1,788) Payment of payroll taxes on stock-based compensation through shares withheld (2,227) (781) Net cash provided by financing activities (51,345) 81,846 Change in cash and restricted cash 10,548 86,928 Ending balance of cash and restricted cash $ 167,472 $ 156,924 PAGE 13 1. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods.
Financial Supplement Earnings Per Share Trend and Guidance ($ in thousands, except EPS) Fiscal 2025 Midpoint 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(1) 3 Mos. 9/30/23 3 Mos. 6/30/23 3 Mos. 3/31/23 Net Income (loss) ~$52,000-56,000 $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 $ 12,322 $ 6,702 $ (509) $ 3,480 Less: Preferred stock dividend declared — (1,097) $ — — — (1,097) (5,069) (1,278) (1,263) (1,251) Net income (loss) available for distribution ~$54,000 40,904 18,840 4,985 7,787 9,292 7,253 5,424 (1,772) 2,229 Income allocated to participating securities — (2,855) — — — (2,855) (2,712) (2,025) — (833) Net income (loss) available to common shareholders ~$54,000 $ 38,049 $ 18,840 $ 4,985 $ 7,787 $ 6,437 $ 4,541 $ 3,399 $ (1,772) $ 1,396 Weighted average basic shares outstanding ~54,000 49,429 53,813 53,805 53,757 36,434 33,985 34,070 34,067 33,999 Basic income (loss) per common share ~$0.96-1.04 $ 0.77 $ 0.35 $ 0.09 $ 0.14 $ 0.18 $ 0.13 $ 0.10 $ (0.05) $ 0.04 Weighted average basic shares outstanding ~54,000 49,429 53,813 53,805 53,757 36,434 33,985 34,070 34,067 33,999 Dilutive effect related to employee stock plans ~1,400 1,422 1,591 1,146 1,013 1,005 494 754 — 554 Weighted average diluted shares outstanding ~55,400 50,851 55,404 54,951 54,770 37,439 34,479 34,824 34,067 34,553 Diluted income (loss) per common share ~$0.93-1.01 $ 0.75 $ 0.34 $ 0.09 $ 0.14 $ 0.17 $ 0.13 $ 0.10 $ (0.05) $ 0.04 PAGE 14 1. The acquisition of Concorde closed on December 1, 2022. As such, the twelve months ended September 30, 2023 only includes ten months of Concorde activity. Note: With the December 18, 2023 conversion of all remaining Series A preferred shares into common shares, the two-class EPS calculation method the Company has employed previously will no longer be applicable. While it was used for Q1 FY2024 and remained in place for year-to-date FY 2024 calculations to account for the Preferred shares before conversion, the remaining quarters in FY 2024 and all quarters in FY 2025 and beyond will employ the more traditional basic and diluted EPS methodology.
Financial Supplement Leverage as of 9/30/2024 Current Loan Balances $125.7M LTM EBITDA $102.8M Cash & Cash Equivalents $161.9M Gross Leverage Ratio 1.22x Net Leverage Ratio -0.35x Debt as of 9/30/2024 Term Loan: Avondale Campus (Fifth Third Bank) Original Note Amount $31.2M Inception Date 5/12/2021 Rate* Fixed/Floating Maturity 7 years Current Note Balance $28.4M Term Loan: Lisle Campus (Valley National Bank) Original Note Amount $38.0M Inception Date 4/14/2022 Rate** Fixed/Floating Maturity 7 years Current Note Balance $36.9M Revolver (Fifth Third Bank) Total Capacity $125.0M Inception Date 11/21/2022 Rate*** Floating Maturity 3 years Current Loan Balance $56M 9/30/2025 proforma leverage calculation is based upon midpoint of the adjusted EBITDA guidance range and projected year-end cash balance, both of which will depend on actual company performance Note: FY 2025 proforma cash and debt balances assume no revolver paydown, though that will continue to be evaluated throughout the year. Any reduction to the outstanding revolver balance would benefit gross leverage but have no impact on net leverage. Leverage Ratios PAGE 15 *Avondale rate is 50% fixed at 3.50% + 50% Floating @ SOFR plus 2% Margin **Lisle rate is 50% fixed at 4.69% + 50% Floating @ SOFR plus 2% Margin ***Revolver rate is SOFR plus 1.75% to 2.25% Margin based on UTI's Total Leverage Proforma Leverage 9/30/2025 Note Balances (Projected) $93M LTM EBITDA - FY 2025 Guidance midpoint ~$122M Cash & Cash Equivalents (Projected) ~$200M Gross Leverage Ratio 0.76x Net Leverage Ratio -0.88x
Financial SupplementUse of Non-GAAP Financial Information PAGE 16 In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also discloses certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations. The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations. Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include: • Acquisition-related costs: We have excluded costs associated with both potential and announced acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. • Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non- GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance. • One-time costs associated with new campus openings: During fiscal 2022, we opened new campus locations in Austin, Texas and Miramar, Florida. We continued to incur one-time costs during fiscal 2023 for the campus opening as we completed the build-out of the remaining programs in the new facilities. We disclose any campus adjustments as direct costs (net of any corporate allocations). Outfitting a new campus requires significant facility improvements and modifications, and the purchase of technical equipment and training aids necessary for teaching our programs, the combination of which requires a significant investment by the Company which would not be considered part of normal recurring operations. • Restructuring charges: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT-Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. MIAT- Houston students who have not completed their programs before their program’s teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use, operated by UTI-Houston post- consolidation. • Facility lease accounting adjustments: During 2022, as part of our facility optimization project, we recorded lease accounting adjustments for lease termination payments associated with our Orlando, Florida and MMI Phoenix, Arizona campuses and a non-cash lease adjustment when we purchased our Lisle, Illinois campus. During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations. • Costs related to the purchase of our campuses: We lease the majority of our campus locations. Over the past three years due to shifts within the real estate environment, we have been presented with the opportunity to purchase three of our campus locations. These purchases are significant capital expenditures and not considered part of normal recurring operations. To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the SEC. Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is included in the following slides and investors are encouraged to review the reconciliations. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow to the most directly comparable GAAP financial measure is unavailable to the company without unreasonable effort. The company is not able to provide a quantitative reconciliation of forward-looking adjusted EBITDA or adjusted free cash flow to the most directly comparable GAAP financial measure because certain items required for such reconciliation are uncertain, outside of the company’s control and/or cannot be reasonably predicted, including but not limited to the provision for (benefit from) income taxes. Preparation of such reconciliation would require a forward-looking statement of income and statement of cash flows prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort.
Financial Supplement Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) 1. Costs related to both announced and potential acquisition targets. 2. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 3. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando campus and our Concorde corporate facility. 4. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 5. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 6. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. 12 Mos. 9/30/24 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(5) 3 Mos. 9/30/23 3 Mos. 6/30/23 3 Mos. 3/31/23 3 Mos. 12/31/22(4) Net income (loss), as reported $ 42,001 $ 18,840 $ 4,985 $ 7,787 $ 10,389 $ 12,322 $ 6,703 $ (509) $ 3,480 $ 2,648 Interest expense (income), net 3,157 795 709 757 896 3,795 1,038 1,325 832 600 Income tax expense (benefit) 14,229 6,530 1,772 2,767 3,160 5,765 2,541 (64) 1,763 1,525 Depreciation and amortization 29,324 7,762 7,376 7,202 6,984 25,215 6,566 6,655 6,746 5,248 EBITDA $ 88,711 $ 33,927 $ 14,842 $ 18,513 $ 21,429 $ 47,097 $ 16,848 $ 7,407 $ 12,821 $ 10,021 Acquisition related costs(1) — — — — — 2,374 56 221 1,322 775 Integration related costs for completed acquisitions(6) 6,049 1,126 1,653 1,696 1,574 8,585 2,200 2,950 1,951 1,484 Start-up costs for new campuses and program expansion(2) — — — — — 2,341 32 335 984 990 Stock-based compensation expense 8,560 2,862 1,863 2,353 1,482 3,848 33 533 2,113 1,169 Facility lease accounting adjustments(3) (650) (650) — — — — — — — — Restructuring Costs(5) 185 44 53 45 43 — — — — — Adjusted EBITDA, non-GAAP $ 102,855 $ 37,309 $ 18,411 $ 22,607 $ 24,528 $ 64,245 $ 19,169 $ 11,446 $ 19,191 $ 14,439 PAGE 17
Financial Supplement Consolidated Adjusted EBITDA Reconciliation Trend ($ in thousands) 12 Mos. 9/30/24 9 Mos. 6/30/24 6 Mos. 3/31/24 3 Mos. 12/31/23 12 Mos. 9/30/23(5) 9 Mos. 6/30/23 6 Mos. 3/31/23 3 Mos. 12/31/22(4) Net income, as reported $ 42,001 $ 23,161 $ 18,176 $ 10,389 $ 12,322 $ 5,619 $ 6,128 $ 2,648 Interest expense (income), net 3,157 2,362 1,653 896 3,795 2,757 1,432 600 Income tax expense (benefit) 14,229 7,699 5,927 3,160 5,765 3,224 3,288 1,525 Depreciation and amortization 29,324 21,562 14,186 6,984 25,215 18,649 11,994 5,248 EBITDA $ 88,711 $ 54,784 $ 39,942 $ 21,429 $ 47,097 $ 30,249 $ 22,842 $ 10,021 Acquisition related costs(1) — — — — 2,374 2,318 2,097 775 Integration related costs for completed acquisitions(6) 6,049 4,924 3,271 1,574 8,585 6,385 3,435 1,484 Start-up costs for new campuses and program expansion(2) — — — — 2,341 2,309 1,974 990 Stock-based compensation expense 8,560 5,698 3,835 1,482 3,848 3,815 3,282 1,169 Facility lease accounting adjustments(3) (650) — — — — — — — Restructuring Costs(5) 185 141 88 43 — — — — Adjusted EBITDA, non-GAAP $ 102,855 $ 65,547 $ 47,136 $ 24,528 $ 64,245 $ 45,076 $ 33,630 $ 14,439 PAGE 18 1. Costs related to both announced and potential acquisition targets. 2. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 3. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando campus and our Concorde corporate facility. 4. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 5. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 6. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. Year to date
Financial Supplement Adjusted EBITDA Reconciliation By Segment ($ in thousands) 3 Mos. 9/30/24 3 Mos. 9/30/23 3 Mos. 9/30/24 3 Mos. 9/30/23 3 Mos. 9/30/24 3 Mos. 9/30/23 UTI UTI Concorde Concorde Corporate Corporate Net income (loss), as reported $ 28,760 $ 13,048 $ 6,777 $ 3,169 $ (16,697) $ (9,514) Interest expense (income), net 1,689 1,468 (63) (40) (831) (390) Income tax expense (benefit) — — — — 6,530 2,541 Depreciation and amortization 5,996 6,124 1,419 439 347 3 EBITDA $ 36,445 $ 20,640 $ 8,133 $ 3,568 $ (10,651) $ (7,360) Acquisition related costs(1) — — — — — 56 Integration related costs for completed acquisitions(5) 187 923 730 419 209 858 Start-up costs for new campuses and program expansion(2) — 32 — — — — Stock-based compensation expense 778 (107) 81 — 2,003 140 Facility lease accounting adjustments(3) — — (650) — — — Restructuring Costs(4) 44 — — — — — Adjusted EBITDA, non-GAAP $ 37,454 $ 21,488 $ 8,294 $ 3,987 $ (8,439) $ (6,306) PAGE 19 1. Costs related to both announced and potential acquisition targets. 2. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 3. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando campus and our Concorde corporate facility. 4. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 5. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability. Quarter to date
Financial Supplement Adjusted EBITDA Reconciliation By Segment ($ in thousands) 12 Mos. 9/30/24 12 Mos. 9/30/23(5) 12 Mos. 9/30/24 10 Mos. 9/30/23(4) 12 Mos. 9/30/24 12 Mos. 9/30/23 UTI UTI Concorde Concorde Corporate Corporate Net income (loss), as reported $ 71,646 $ 38,324 $ 21,048 $ 10,700 $ (50,693) $ (36,702) Interest expense (income), net 6,135 4,682 (244) (167) (2,734) (720) Income tax expense (benefit) — — — — 14,229 5,765 Depreciation and amortization 22,917 21,113 5,158 4,077 1,249 25 EBITDA $ 100,698 $ 64,119 $ 25,962 $ 14,610 $ (37,949) $ (31,632) Acquisition related costs(1) — — — — — 2,374 Integration related costs for completed acquisitions(6) 1,150 4,061 2,802 1,686 2,097 2,838 Start-up costs for new campuses and program expansion(2) — 2,341 — — — — Stock-based compensation expense 2,080 1,069 213 — 6,267 2,779 Facility lease accounting adjustments(3) — — (650) — — — Restructuring Costs(5) 185 — — — — — Adjusted EBITDA, non-GAAP $ 104,113 $ 71,590 $ 28,327 $ 16,296 $ (29,585) $ (23,641) PAGE 20 Year to date 1. Costs related to both announced and potential acquisition targets. 2. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 3. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando campus and Concorde corporate facility. 4. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 5. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 6. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability.
Financial Supplement Adjusted EBITDA Reconciliation Trend By Segment ($ in thousands) 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23 3 Mos. 9/30/23 3 Mos. 9/30/24 3 Mos. 6/30/24 3 Mos. 3/31/24 3 Mos. 12/31/23(4) 3 Mos. 9/30/23 UTI UTI UTI UTI UTI Concorde Concorde Concorde Concorde Concorde Net income (loss), as reported $ 28,760 $ 12,673 $ 16,616 $ 13,597 $ 13,048 $ 6,777 $ 3,778 $ 3,320 $ 7,173 $ 3,169 Interest expense (income), net 1,689 1,469 1,471 1,506 1,468 (63) (62) (74) (45) (40) Depreciation and amortization 5,996 5,743 5,684 5,494 6,124 1,419 1,367 1,217 1,154 439 EBITDA $ 36,445 $ 19,885 $ 23,771 $ 20,597 $ 20,640 $ 8,133 $ 5,083 $ 4,463 $ 8,282 $ 3,568 Acquisition related costs(1) — — — — — — — — — — Integration related costs for completed acquisitions(6) 187 237 226 500 923 730 726 884 462 419 Start-up costs for new campuses and program expansion(2) — — — — 32 — — — — — Stock-based compensation expense 778 518 313 471 (107) 81 56 68 8 — Facility lease accounting adjustments(3) — — — — — (650) — — — — Restructuring Costs(5) 44 53 45 43 — — — — — — Adjusted EBITDA, non-GAAP $ 37,454 $ 20,693 $ 24,355 $ 21,611 $ 21,488 $ 8,294 $ 5,865 $ 5,415 $ 8,752 $ 3,987 PAGE 21 Quarter to date Note: Corporate results are not included within these metrics. 1. Costs related to both announced and potential acquisition targets. 2. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects one-time opening costs incurred for both campuses. 3. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando campus and our Concorde corporate facility. 4. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 5. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy. 6. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability.
Financial Supplement Consolidated Adjusted Free Cash Flow ($ in thousands) 3 Mos. 9/30/24 3 Mos. 9/30/23 3 Mos. 9/30/22 12 Mos. 9/30/24 12 Mos. 9/30/23(8) 12 Mos. 9/30/22(8) Cash flow provided by operating activities, as reported $67,534 $53,881 $38,125 $85,895 $49,148 $46,031 Purchase of property and equipment (7,529) (7,838) (9,842) (24,298) (56,685) (79,450) Free cash flow, non-GAAP 60,005 46,043 28,283 61,597 (7,537) (33,419) Adjustments: Purchase of Lisle, Illinois campus(1) — — 201 — — 28,680 Purchase of Orlando, Florida campus(2) — — — — 26,156 — Acquisition related costs paid(4) — 61 406 — 2,347 3,923 Integration related costs for completed acquisitions(9) 992 2,007 692 6,196 7,768 1,436 Facility lease accounting adjustments(5) 700 — — 700 — 575 Cash outflow for acquisition integration property and equipment 795 1,727 — 4,330 10,530 — Cash outflow for start-up costs for new campuses and program expansion(6) — 32 721 — 2,341 5,136 Cash outflow for property and equipment for new campuses and program expansion(6) — 795 7,649 — 7,484 28,579 Cash outflow for restructuring costs and property and equipment(3) 92 — — 632 — — Severance payment for CEO transition(7) — — — — — 32 Adjusted free cash flow, non-GAAP $62,584 $50,665 $37,952 $73,455 $49,089 $34,942 1. In February 2022, we purchased our Lisle, Illinois campus for approximately $28.7 million in cash consideration. 2. In March 2023, we purchased the three primary buildings and the associated land at our UTI Orlando, Florida campus for approximately $26.2 million. 3. On December 5, 2023, UTI announced plans to consolidate the two Houston, Texas campus locations to better align with our business strategy 4. Costs related to both announced and potential acquisition targets. 5. Lease accounting adjustments from our campus optimization efforts. These are primarily non-cash except for a lease termination payment related to our Orlando and MMI Phoenix campuses and our Concorde corporate facility. 6. The Austin, TX and Miramar, FL campuses opened during FY2022. The adjustment reflects opening costs incurred for both campuses and the costs incurred related to other program expansions. 7. Adjustments reflect the cash paid in accordance with previous CEO Kimberly J. McWaters' Retirement Agreement and Release of Claims, dated October 31, 2019. 8. The acquisition of Concorde closed on December 1, 2022 impacting comparability for all future periods. 9. Costs related to integrating the MIAT programs at the UTI campuses and launching Concorde programs that were previously approved by regulatory bodies prior to the acquisition are presented in “Integration related costs for completed acquisitions.” In prior quarters, these costs were presented in a line labeled “Start-up costs for new campuses and program expansion.” As the nature of the spend and activity are more aligned to integration, we have updated our presentation and recast the prior year for comparability.PAGE 22
