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Universal Technical Institute to Open a Campus in Austin

| March 23, 2021

Blended learning model enables optimization of campus footprint and instructional delivery

Universal Technical Institute Inc. provider of transportation technician training, plans to expand its presence in two states in fiscal year 2022, the first being in the state of Texas with a new campus in Austin – its thirteenth nationwide and third in the state. The company opened its Houston campus in 1983 and its Dallas-Fort Worth campus in 2010. Additional details on the second planned new campus will be provided at a later date.

Expanding to Austin is part of UTI’s growth and diversification strategy, which consists of both organic and inorganic initiatives, including developing more efficient, commuter-friendly campuses in high-demand markets and broadening program offerings. UTI has a proven model for launching new campuses, which contribute incremental revenue growth and positive adjusted EBITDA in their first full year of operation. With the anticipated efficiencies from blended learning and planned higher campus utilization, the company expects the economic returns to be even more favorable than for its traditional metro campuses. The Austin campus will continue UTI’s commitment to provide convenient, flexible and industry-aligned training opportunities to more students – and to deliver the skilled technicians UTI’s industry and employer partners need.

UTI has leased approximately 100,000 square feet in the CM Techridge facility in North Austin, a critical first step in the development of the campus. The campus will be designed with an innovative and more efficient layout to support UTI’s new blended-learning curriculum, providing both digital and hands-on training elements. The expected initial offerings at the campus include UTI’s Automotive, Diesel and Welding Technology programs, with capacity for additional programs to be added in the future. The company is targeting to open the Austin campus during the second quarter of fiscal 2022, subject to obtaining necessary regulatory approvals and completion of the campus build-out. Implementation will begin during the second half of fiscal 2021.

“We are excited to be expanding in Texas where UTI has a 38-year history of supporting students and graduating them with the skills employers want so they can be employed in good jobs,” said Jerome Grant, chief executive officer of UTI. “An Austin campus will offer a convenient solution for students to train while living and working at home in a market where our proven evaluation criteria shows extremely strong prospective student interest in our programs and employer demand for skilled technicians.

“In today’s high-tech world, our students must graduate with the skills to be lifelong digital learners, and our blended learning model has many benefits,” Grant said. “It provides our students more flexibility and convenience while at the same time leveraging a modality that our employer partners tell us aligns with how technicians learn new technologies and skills once in the workforce. Blended learning also enables us to reduce our physical footprint and enhance our overall operating efficiency, while supporting our students in being ready to train and succeed on their career paths,” Grant said.

“We could not be more excited to welcome UTI,” said Jamie Konrady, president of CM Techridge. “We have a long history of supporting companies with an educational mission and believe Austin will greatly benefit from the opportunities that UTI will create for students, employers and the community.”

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