Universal Technical Institute, Inc. (NYSE:UTI) Q2 2024 Earnings Call Transcript

And about three to four years to ramp them commented on that earlier. And for your payback or so on the cash investment the programs those are dental hygiene, is a fairly expensive program to implement relatively speaking, because we the model that that we use at Concorde, is that we actually build the clinical lab in our campus versus some of the other programs where they do the clinicals on the providers site. So, we have dentists on staff we actually build out the dental operatories, the chairs and everything. So it is a few million dollars of investment requires about 7,500 square feet and you can see it’s about a $4 million and $5 million run rate revenue. HVACR is about a $2.5 million run rate revenue. Dental hygiene is about a about a 40% margin so $2 million and HVACR is also about a 40% margin or so and but about a $600,000 investment.

So much lower investment, much smaller footprint, 4,000 square feet.

Mike Grondahl: Great. Yes Troy. Thanks for pointing that out. And then just one follow-up question maybe for Jerry you’ve talked about with Concorde some online programs, online effort you know I think you hired someone to head that up how is that progressing. And how should we think about the growth coming out of that?

Jerome Grant: Sure, progressing quite well and again it’s not something, you just hire someone and flip the switch, and suddenly you have a hundred online courses that you didn’t have before or another direction. And so, we’re starting the initial stages of looking at what we consider to be below hanging fruit in terms of marketing the courses that are already there. Courses that are — that may be underrepresented in the market we’re starting to see some uptick there. And then we’re doing a fair amount of the internal work right now, which will bear fruit over the next you know 36 months that redesigning courses, refashioning them to better work in the online environment. And then also thinking about both our admissions marketing and support models to better support a scaled online campus if you would.

Mike Grondahl: Hi. Thank you.

Jerome Grant: Sure.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jerome Grant for any closing remarks.

Jerome Grant: Thank you very much, and thank you very much for joining us today. I know it takes a lot of your schedule, to spend this time with us. We’re looking forward to reporting to you again in three months. A reminder Troy and I are available for questions and answers over the next few days and throughout the quarter. We would like the an air of transparency, we want to make sure that you get everything answered that you can so have a great afternoon. Thanks.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.