UTI earnings out November 29. Gainful employment

UTI's earnings conference call is November 29. Developments since the last quarterly call are:

(1) removal of the CFO

(2) resignation of a Director on the Auditing committee

(3) information from ED regarding programs that are failing or close to failing gainful employment rules

Look for any words about "gainful employment." Apollo Education Group last week reported that they were having to cut 16% of their programs due to the new ED rules. If students cannot repay their federal loans, programs are in trouble. From the numbers I'm looking at from ProPublica, UTI's numbers don't look great, but they may be able to avoid penalties. You can find particular schools at the below URL:

https://projects.propublica.org/colleges/?sector=6&cc=1

Also:

UTI has had a private lending program. I wonder what kind of shape that program is in. The Genesis Loan program at Corinthian Colleges and the PEAKS and CUSO loans at ITT Educational Services were short-term fixes for those companies, but led to their downfalls.

UTI also claimed that 88% of its graduates were "gainfully employed," that is, working in their fields of study. This is what got Devry in trouble with the Federal Trade Commission.

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Half full is being generous.

So,

More new campuses to accent their half full campuses. Very nice.

It will take them a while to piss away their bank roll but piss it away they will.

Kim has turned into a charlatan and will soon depart this sinking ship.

Tick, tock.

Your employees are pissed and scared. Do you care? No.

Kim McWaters mentioned "pressure points" at least twice in the conference call. This sounds like the "pain funnel" that ITT Tech used. What kind of students will UTI get if "pressure points" are used to recruit students? It sounds like coercion. Then when you get students to borrow money with high interest proprietary loans for jobs that may be there, what do you expect?

The near term enrollment and revenue numbers sound horrible. In terms of gainful employment, all of the programs have passed (diesel is very strong), though three programs are in the zone (motorcycle). UTI is attempting to change their business model, to smaller campuses and local and digital marketing (versus tv). Some of the existing space may be repurposed to fill existing building space (e.g. welding programs awaiting approval from ED). UTI's current financial composite score has been 1.4 since October (which has previously been mentioned here). The proprietary loan program also continues to lose money.

Screwed is the word I would use to describe this situation. Too much debt load and no ability to pay it back. We (UTI) know it but dont really care so long as we are still getting a paycheck.

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UTI earnings out November 29. Gainful employment

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