Last Updated: March 18, 2020
Universal Technical Institute (UTI) Statement on COVID-19
UTI will move to online instruction the week of March 23rd and suspend all in person classes at its 13 campuses nationwide starting tomorrow, March 19th. The well-being of our campus communities is our top priority, and we are taking this step to protect our students and staff and to help slow the spread of this virus. We will continue to offer our students the highest quality educational experience while limiting the risk of spreading COVID-19 on our campuses and in our communities.
Throughout this period, our campuses will remain open, unless circumstances warrant otherwise. Our facilities will be accessible to students who need a computer and internet access, and/or need assistance from student services departments, including Advising, Financial Aid, Housing and Career Services. We will continue to follow strict CDC protocols, including cleaning our campuses thoroughly with disinfectants on a daily basis, high-touch areas cleaned multiple times throughout the day and plenty of hand sanitizer available.
A few key points about the move to an alternative teaching method:
- It protects revenue and cash flow in the current situation by continuing students in the curriculum even if we need to suspend activity at a campus as we initially experienced in NJ and PA.
- The majority of our students are remaining active despite option for them to pause via the “Leave of Absence” process. For any student that does elect LOA, these are short term absences, and they may elect to return sooner given the online option.
- We have a strong balance sheet and significant liquidity. As of December 31st, 2019, our cash balance was $70.5 million. In February 2020, we raised $49.5 million of net proceeds through an equity offering
- We are also focusing on managing costs to minimize impacts in the event of a prolonged disruption.
- Our marketing efforts for future enrollments are continuing with particular emphasis on our fiscal fourth quarter starts. We are heavily leveraging digital media where we have seen significant increases in effectiveness through our transformation efforts.
- It is our intent to return to training in-person and hands-on in our labs as soon as practicable.
- Given the counter cyclical nature of our business, after this current situation, we could see higher demand.
- We are not aware of any material impacts to our February 6, 2020, guidance at this time and are monitoring very closely. We don’t have any further update currently.
We will continue to make decisions about UTI campuses and events as necessary to support the health and wellbeing of our campus and local communities, while also continuing to support our students in training for good jobs and fulfilling careers.
You can find additional UTI updates and related information at www.uti.edu/covid-19.