Safe Harbor. This presentation may contain forwardlooking statements regarding events or

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1 2010 Deutsche Bank Small and Mid Cap Conference UNIVERSAL TECHNICAL INSTITUTE February 9,

2 Safe Harbor This presentation may contain forwardlooking statements regarding events or future financial performance. These statements are only predictions and the actual events or results may differ materially. For important factors that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to the Company s filings with the Securities and Exchange Commission. 2

3 UTI Profile Founded in 1965; IPO 2003 Leading provider of entry level technicians Auto/Diesel Collision Repair Motorcycle/Marine 18,782 avg. enrollment for 3 months ending 12/31/09 FY2010 Q1 net revenues of $103.5 million 10 campuses 20 Manufacturer Specific Advanced Training Programs Student paid elective Manufacturer/Dealer sponsored 3

4 National Presence NORWOOD EXTON SACRAMENTO GLENDALE HEIGHTS RANCHO CUCAMONGA MOORESVILLE AVONDALE PHOENIX DALLAS/FT. WORTH* HOUSTON ORLANDO * The UTI Dallas/Ft. Worth campus is scheduled to open in summer There is opportunity to open new campuses in local markets to supply skilled technicians to local employers and provide opportunities for students unable to relocate. 4

5 Known for our Industry Relationships Harley-Davidson Kawasaki American Honda Honda Marine Suzuki Yamaha Harley-Davidson Kawasaki American Honda Honda Marine Suzuki Yamaha BMW Motorcycle Automotive Marine 2000 Harley-Davidson Kawasaki American Honda Honda Marine Suzuki Yamaha BMW Mercedes-Benz Jaguar Ford Porsche Volkswagen NASCAR Audi Volvo Volvo-Penta Mercury Marine International 2005 Today Harley-Davidson Kawasaki American Honda Honda Marine Suzuki Yamaha BMW Mercedes-Benz Jaguar Ford Porsche Volkswagen NASCAR Audi Volvo Toyota Volvo-Penta Mercury Marine International Diesel The depth and breadth of our industry relationships are unmatched and remain a competitive advantage. Harley-Davidson Kawasaki American Honda Honda Marine Suzuki Yamaha BMW Motorcycle BMW Mercedes-Benz Ford Porsche NASCAR Volvo Toyota Nissan Volvo-Penta Mercury Marine International Cummins Freightliner 5

6 Value of Industry Relationships Benefits to Student Benefits to Manufacturer Benefits to Company Access to proprietary curriculum Higher quality employment Increased earnings potential Develops brand loyalty Lower training costs Efficient hiring source Addresses need for technicians Manufacturer contributes equipment, tools, curriculum and training aids Sales and marketing advantage Improves student outcomes Based on our relationships, UTI is best prepared to serve the needs of OEM s, employers and our students. 6

7 Student Funnel - Lifecycle Inquiry Inquiry Applications Applications New New Students Students Graduates Graduates Over the past two years, we have made significant investments in the front-end of the funnel. During fiscal 2010 we will increase our focus on the placement of graduates. Placement Placement 7

8 Projected Technician Demand Automotive Industry size: 763,700 5% growth by 2018 Annual new openings: 18,170 Diesel Industry size: 263,100 6% growth by 2018 Annual new openings: 7,530 CRRT Industry size: 166,400 1% growth by 2018 Annual new openings: 4,380 Marine/Motorcycle Industry size: 40,900 7% growth by 2018 Annual new openings: 1,140 Key Statistics Overall market growth of 1% 7% by 2018 Annual new job openings of 31,220 Source: BLS Employment Outlook Summary, December 2009 Despite the challenging automotive environment, there is healthy demand for our graduates. 8

9 Graduates & Placement Where Auto Techs Work* 28% Where UTI Graduates Work** 11% 17% 43% 72% 29% Automotive Dealerships Other * BLS Employment Outlook Summary, December 2009 Automotive Dealerships Aftermarket Franchises Diesel Related Other ** UTI automotive graduates FY2008 Employment landscape changing 88% placement rate for FY2008 Wages are stable Our graduation rates remain strong at 70%. Historically placement rates have consistently been approximately 90%. 9

10 2010 Focus 10

11 2010 Business Priorities Revenue growth Margin improvement New campus launch Curriculum transformation We have a high level of focus on improving operational efficiencies which should ultimately drive margin improvement for

12 Fiscal 2010 Q1 Highlights Student start growth 16% Record average students; growth of 15% Record revenues; growth of 15% Record earnings per share of $0.38 Operating income margin improvement to 14.5% The acceleration of start growth during 2009 suggests an ability to sustain double-digit start growth into

13 New Campus Location Dallas/Fort Worth, Texas 95,000 sq. ft. campus in Irving, Texas 750 students Auto and auto/diesel programs Opening Summer 2010 As part of our growth strategy, we think there is significant opportunity to take education closer to our students. 13

14 New Campus Location Invested $9.4M through 12/31/09 on building, land, improvements and equipment Anticipate investing additional $10M to prepare campus for opening Incurred $0.6M in operating expenses during FY10Q1 Anticipate spending $6.6M in operating expenses during fiscal 2010 Breakeven 9-15 months after opening We believe we can achieve similar or better operating margins with the smaller campus. 14

15 Curriculum Transformation Automotive and diesel curricula Blended learning model Update to reflect current technology Launch with new Dallas campus Enables our students to obtain a more convenient and affordable UTI education and creates a competitive advantage for our auto/diesel schools. 15

16 Summary Accelerating improvement in student metrics Technician demand and competitive strengths remain strong Financial results beginning to materialize Extremely strong balance sheet Growth and efficiency to be focus of

17 Appendix 17

18 Financial Performance ($ in millions, except for enrollment data and EPS) Average enrollment Growth (decline) Net revenues Growth (decline) Operating income (loss) Margin Capacity Utilization Diluted EPS 3 Months Ended 12/31/2009 9/30/2009 6/30/2009 3/31/ /31/ ,782 16,905 14,813 15,457 16, % 15.1% 10.1% 2.4% -1.5% $103.5 $99.5 $87.9 $89.1 $ % 17.6% 8.9% 1.1% 0.1% $15.1 $12.3 $3.0 ($0.2) $ % 12.3% 3.4% -0.2% 4.0% 75.2% 68.1% 60.6% 63.1% 66.2% $0.38 $0.32 $0.08 $0.00 $0.09 The investments we have made to the front-end of the funnel are beginning to translate into improved financial results. 18

19 Student Starts 32% 30.0% 25.0% 20% 20.0% 16% 15% 15.0% 10.0% 6% 5% 5.0% 1% 0.0% -5.0% -8% -10.0% FY09Q1 Percent of FY Starts 18.8% FY09Q2 19.2% 1 4 FY09Q3 16.7% Q 10 FY FY FY Q Q Q FY FY Q 4 Q FY FY 08 Q Q 2 1 Q 08 FY 3-12% -15.0% FY Year Over Year Start Growth (Decline) 35.0% FY09Q4 45.3% For seven consecutive quarters, we have achieved year-over-year start growth and expect that trend to continue in future quarters. 19

20 Student Applications 10,000 Total Applications 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Y/Y Change FY08Q1 FY08Q2 FY08Q3 FY08Q4 FY09Q1 FY09Q2 FY08 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY09 Q1 FY09 Q2 (11.3%) (6.1%) 21.2% 28.3% 19.6% 14.7% FY09Q3 FY09 Q3 9.2% FY09Q4 FY09 Q4 4.1% FY10Q1 FY10 Q1 (6.3%) 20

21 End of Period Undergraduate Enrollment 18,802 20,000 End of Period Undergraduate Enrollment 18,000 16,000 17,741 15,415 15,143 16,481 15,391 14,637 14,281 12,478 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q1 FY 2008 FY09Q1 Y/Y Change (272) Q2 FY 2009 FY09Q2 754 Q3 Q4 FY 2010 FY09Q3 1,803 FY09Q4 2,321 FY10Q1 2,598 21

22 Student Sources of Funding FY 2009 Breakdown by % of Students FY 2009 Breakdown by % of Revenue Require Some Discount Alt. Loan 11.7% Fully Funded Through FFELP & PELL 36.6% Private Alt. CTG & Other Revenue Loans Cash / Credit 1.6% 4.1% Cards 13.7% Require Some Private Alt. Loan 26.9% FFELP Federal Loans & Pell Grants 78.0% Meet Gap With Cash Payments 24.8% * As a result of the difference between cash basis and accrual basis accounting, the chart does not add up to 100%. Approximately 90% of our revenues come from Title IV funding or cash payments. 22

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