Day: November 20, 2024

Company Achieves Record Quarterly Revenue of $1.85MM     

TULSA, Okla., Nov. 20, 2024 /PRNewswire/ — ClearSign Technologies Corporation CLIR (“ClearSign” or the “Company”), an emerging an emerging leader in industrial combustion and sensing technologies that support decarbonization, improve operational and energy efficiency, enable the use of hydrogen as a fuel and enhance safety while dramatically reducing emissions, today provides an update on operations for the quarter ended September 30, 2024.

“We are happy to report a record revenue quarter of almost two million dollars,” said Jim Deller, Ph.D., Chief Executive Officer of ClearSign. “We are very encouraged by our growing pipeline of projects to be shipped, installed and in engineering phases. Our sales channels are expanding through a network of partners, OEM’s and engineering firms, and we believe this is an integral part of expanding our sales operation. From our installed base to third-party testing like the California GET program, our operational performance continues to provide additional compelling data for our products and supports our reputation as a solution provider,” concluded Dr. Deller. 

Recent strategic and operational highlights during, and subsequent to, the end of the third quarter 2024 include:

Reported Record Quarterly Revenue: For the third quarter of 2024, the Company recognized approximately $1.85 million in revenues compared to $85 thousand for the comparable period in 2023. The year-over-year increase in revenues was driven predominantly by the shipment of an order for 20 process burners to a California refinery customer.

Announced Flare Order for Energy Company in California: The order from a prior flare customer  is for the initial engineering for a flare retrofit to be installed at a production facility. The final product is expected to be fabricated and shipped in the second quarter of 2025 and to be installed at the customer’s site in the San Joaquin Valley of California. 

Announced Public Release of California Statewide Gas Emerging Technologies (GET) Report on Boiler Burners: The study, sponsored by Southern California Gas Company (“SoCalGas”), was to test and quantify the emissions improvements and efficiency gains for the ClearSign Core™-Rogue ultra-low NOx boiler burner compared to a conventional (or baseline) ultra-low-NOx burner operating in the same boiler. Specifically, the report concluded that the ClearSign ultra-low NOx burner demonstrates material savings for fuel and electricity while producing ultra-low NOx levels and was capable of NOx levels lower than the baseline burner.

Announced Burner Orders for Power Generation Customers in Oklahoma and Missouri: ClearSign has received two burner orders approximately a month apart from Exotherm Corporation of Houston, Texas (“Exotherm”). The first burner order was for installation in a heater in Oklahoma for use by a power generation company. The second burner order is from a different power generation company for installation and use in Missouri.  

Announced Order for Multi Heater Project for Texas Petrochemical Facility: The Company received the initial engineering order from engineering and heater manufacturer Birwelco USA Inc. (a BIH Group company) as the first phase of a project to retrofit four process heaters with a total of 26 ClearSign Core™ burners to be installed in the Gulf Coast facility of a Fortune 500 global chemical company.    

Cash and cash equivalents were approximately $14.5 million as of September 30, 2024.   

There were 50,234,407 shares of the Company’s common stock issued and outstanding as of September 30, 2024.

The Company will be hosting a call at 5:00 PM ET today. Investors interested in participating on the live call can dial 1-800-836-8184 within the U.S. or 1-646-357-8785 from abroad. Investors can also access the call online through a listen-only webcast at https://app.webinar.net/4grpJ5DdkyV or on the investor relations section of the Company’s website at http://ir.clearsign.com/overview.

The webcast will be archived on the Company’s investor relations website for at least 90 days and a telephonic playback of the conference call will be available by calling 1-888-660-6345 within the U.S. or 1-646-517-4150 from abroad. Conference ID #65937. The telephonic playback will be available for 7 days after the conference call.

About ClearSign Technologies Corporation

ClearSign Technologies Corporation designs and develops products and technologies for the purpose of decarbonization and improving key performance characteristics of industrial and commercial systems, including operational performance, energy efficiency, emission reduction, safety, the use of hydrogen as a fuel and overall cost-effectiveness. Our patented technologies, embedded in established OEM products as ClearSign Core™ and ClearSign Eye™ and other sensing configurations, enhance the performance of combustion systems and fuel safety systems in a broad range of markets, including the energy (upstream oil production and down-stream refining), commercial/industrial boiler, chemical, petrochemical, transport and power industries. For more information, please visit www.clearsign.com.

Cautionary note on forward-looking statements

All statements in this press release that are not based on historical fact are “forward-looking statements.” You can find many (but not all) of these statements by looking for words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “would,” “should,” “could,” “may,” “will” or other similar expressions. While management has based any forward-looking statements included in this press release on its current expectations on the Company’s strategy, plans, intentions, performance, or future occurrences or results, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not limited to, the Company’s ability to successfully deliver, install, and meet the performance obligations of the Company’s burners in the California and Texas market, and any other markets the Company may sell products in; the performance of the Company’s products, including its ultra-low NOx burner and the related fuel and electricity savings; the Company’s ability to timely fabricate and ship its burners; the Company’s ability to further expand the sale of ultra-low NOx process and boiler burners; the Company’s ability to successfully perform engineering orders; the Company’s ability to successfully develop the 100% hydrogen burner with the Phase 2 grant funding; general business and economic conditions; the performance of management and the Company’s employees; the Company’s ability to obtain financing, when needed; the Company’s ability to compete with competitors; whether the Company’s technology will be accepted and adopted and other factors identified in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and available at www.sec.gov and other factors that are detailed in the Company’s periodic and current reports available for review at www.sec.gov. Furthermore, the Company operates in a competitive environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and, except as may be required by law, undertakes no obligation to, update or revise forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter become aware.

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

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SOURCE ClearSign Technologies Corporation

PHOENIX, Nov. 20, 2024 /PRNewswire/ — Universal Technical Institute, Inc. UTI, a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, reported financial results for the fiscal 2024 fourth quarter and the full year ended September 30, 2024. Universal Technical Institute, Inc. operates in two reportable segments, Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde), and together with its segments and subsidiaries is referred to as the “Company,” “we,” “us” or “our.”

• Met or surpassed fiscal year 2024 guidance ranges for all key financial metrics.
• Full year revenue of $732.7 million in 2024, an increase of 20.6% over the prior year, with the UTI division contributing $486.4 million and the Concorde division contributing $246.3 million.
• Full year net income was $42.0 million, an increase of 240.9% over the prior year.
• Full year adjusted EBITDA⁽¹⁾ was $102.9 million, an increase of 60.1% over the prior year.
• Full year total new student starts of 26,885, an increase of 18.9% over the prior year, with UTI contributing 15,138 and Concorde contributing 11,747.
• Established fiscal 2025 full year guidance ranges including revenue of $800–$815 million, net income of $52-56 million and adjusted EBITDA of $120–$124 million.

“We concluded the first stage of our North Star Strategy in fiscal 2024 achieving both strong results and momentum,” said Jerome Grant, CEO of Universal Technical Institute, Inc. “We met or exceeded guidance across all key metrics with full year revenue and adjusted EBITDA increasing over 21% and 60% year-over-year, respectively. These results reflect our consistent execution on the growth, diversification, and optimization tenets of our strategic plan as we continue ramping newly launched programs across both divisions, while further improving margins through workforce and facilities optimization.

“Building on the momentum generated this year, fiscal 2025 is on track to be another year of impressive growth as we enter Phase II of the North Star Strategy. We remain confident in achieving year-over-year revenue and adjusted EBITDA growth of at least 10% and 19%, respectively. We are beginning this next phase of our growth and diversification strategy with the Company positioned stronger than ever to drive long-term value for our shareholders.”

Financial Results for the Three-Month Period Ended September 30, 2024 Compared to 2023

• Revenues increased 15.3% to $196.4 million, compared to $170.3 million.
• Operating expenses increased 6.5% to $170.3 million, compared to $160.0 million. 
• Operating income was $26.0 million compared to $10.3 million.
• Net income was $18.8 million compared to $6.7 million. 
• Basic and diluted earnings per share (EPS) were $0.35 and $0.34, respectively, compared to $0.10.
• Adjusted EBITDA⁽¹⁾ increased 94.6% to $37.3 million, compared to $19.2 million.
• New student starts of 11,492 compared to 10,392.

UTI

• Revenues of $130.5 million, a 13.2% increase from the comparable period revenues of $115.3 million, due primarily to growth in average full-time active students.
• Operating expenses were $100.1 million, compared to $100.8 million. Expenses remained nearly flat despite expenses incurred during the current year for the new program launches. 
• Adjusted EBITDA⁽¹⁾ increased 74.3% to $37.5 million compared to $21.5 million.
• New student starts increased 8.7% to 7,068, while average full-time active students increased 9.2%.

Concorde

• Revenues of $65.8 million, an increase of 19.7% over the comparable period revenues of $55.0 million, due primarily to growth in average full-time active students.
• Operating expenses were $59.1 million, compared to $51.8 million. The increase was primarily due to growth in average full-time active students and additional expenses incurred during the current year related to new program launches.
• Adjusted EBITDA⁽¹⁾ increased 108.0% to $8.3 million compared to $4.0 million.
• New student starts increased 13.7% to 4,424, while average full-time active students increased 13.8%.

Financial Results for the Year Ended September 30, 2024 Compared to 2023⁽²⁾

• Revenues increased 20.6% to $732.7 million, which exceeded our updated full-year guidance range of $720-730 million, compared to $607.4 million primarily due to growth in average full-time active students at both UTI and Concorde and the inclusion of two additional months of revenue for Concorde⁽²⁾.
• Operating expenses increased 15.0% to $673.8 million, compared to $586.0 million, primarily due to the growth in average full-time active students at both UTI and Concorde, costs associated with program expansions and the inclusion of two additional months of expenses for Concorde⁽²⁾.
• Operating income increased 175.2% to $58.9 million compared to $21.4 million.
• Net income was $42.0 million compared to $12.3 million.
• Basic and diluted EPS were $0.77 and $0.75, respectively, compared to $0.13.
• Adjusted EBITDA⁽¹⁾ increased 60.1% to $102.9 million, which was within the updated full year guidance range of $102-104 million, compared to $64.2 million.
• Net cash provided by operating activities increased 74.8% to $85.9 million compared to $49.1 million.
• Adjusted free cash flow⁽¹⁾ was $73.5 million, exceeding the full year guidance range of $62-66 million.
• New student starts of 26,885, exceeding our updated full year guidance range of 25,500-26,500. 

UTI

• Revenues of $486.4 million, an increase of 13.3% over the prior year revenues of $429.3 million due to the growth in average full-time active students.
• Operating expenses were $408.6 million, compared to $386.6 million. The increase was primarily due to the growth in average full-time active students and expenses incurred during the current year for new program launches completed and currently underway.
• Adjusted EBITDA⁽¹⁾ increased 45.4% to $104.1 million compared to $71.6 million.
• New student starts increased 6.7% to 15,138, while average full-time active students increased 9.5%.

Concorde⁽²⁾

• Revenues of $246.3 million, an increase of 38.3% over the prior year revenues of $178.1 million due to the inclusion of two additional months of revenue during the current year, along with growth in average full-time active students.
• Operating expenses were $225.5 million compared to $167.6 million. The increase was due to the inclusion of two additional months of expenses during the current year and additional expenses related to higher average students and program launches.
• Adjusted EBITDA⁽¹⁾ increased 73.8% to $28.3 million compared to $16.3 million.
• New student starts increased 39.3% to 11,747, partially due to the inclusion of two additional months during the current year, while average full-time active students increased 10.7%.

Balance Sheet and Liquidity

At September 30, 2024, our total available liquidity was $230.9 million, including $69.0 million available from the revolving credit facility. Total debt at September 30, 2024 was $125.7 million, including $56.0 million drawn on the revolving credit facility. For fiscal 2024, the Company incurred $24.3 million of cash capital expenditures (“capex”) driven primarily by investments in program expansions for both UTI and Concorde, along with spending associated with curriculum and equipment refresh and upgrades, facility and leasehold improvements, and IT investments.

Fiscal 2025 Financial Outlook

“Our financial performance in fiscal 2024 underscores UTI’s disciplined approach to growth and operational efficiency as we have met or exceeded guidance across all core metrics for both the quarter and full year,” said Christine Kline, Interim CFO of Universal Technical Institute, Inc. “The Concorde division continued to surpass expectations driven by program expansions and newer programs maturing, as well as increased marketing and admissions spend, all of which boosted student growth. The UTI division delivered year-over-year growth in average full-time active students supported by continued growth across the programs launched in the current and prior year.

“Entering fiscal 2025, we are pleased to announce our formal guidance ranges for the fiscal year. With Phase II of our North Star strategy now underway, we’re well positioned to deliver continued sustainable growth through campus and program expansion initiatives, increased workforce and resource optimizations, and enhanced marketing and admissions yield. Furthermore, our balance sheet remains strong, allowing us to actively evaluate all growth opportunities.”

For the Company’s most recent investor presentation and quarterly financial supplement, please see its investor relations website at https://investor.uti.edu.

Conference Call

Management will hold a conference call to discuss the financial results for the fiscal 2024 fourth quarter and full year ended September 30, 2024, on Wednesday, November 20, 2024 at 4:30 pm EST.

To participate in the live call, investors are invited to dial (844) 881-0138 (domestic) or (412) 317-6790 (international). A live webcast of the call will be available via the Universal Technical Institute investor relations website at https://investor.uti.edu. Please go to the website at least 10 minutes early to register, download and install any necessary audio software. The conference call webcast will be archived for fourteen days at https://investor.uti.edu or the telephone replay can be accessed through December 4, 2024, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international) and entering passcode 8876412.

Use of Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses certain non-GAAP financial information in this press release and may similarly disclose non-GAAP financial information on the related conference call. These financial measures are not recognized measures under GAAP and are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company discloses these non-GAAP financial measures because it believes that they provide investors an additional analytical tool to clarify its results of operations and identify underlying trends. Additionally, the Company believes that these measures may also help investors compare its performance on a consistent basis across time periods. Additional details on our non-GAAP measures and the tables reconciling these measures to the most directly comparable GAAP measure are provided below.

Adjusted EBITDA

The Company defines adjusted EBITDA as net income (loss) before interest expense, interest income, income taxes, depreciation and amortization, adjusted for stock-based compensation expense and items not considered normal recurring operations.

Adjusted Free Cash Flow

The Company defines adjusted free cash flow as net cash provided by (used in) operating activities less capital expenditures, adjusted for items not considered normal recurring operations.

Management utilizes adjusted figures as performance measures internally for operating decisions, strategic planning, annual budgeting and forecasting. For the periods presented, our adjustments for items that management does not consider to be normal recurring operations include:

• Acquisition-related costs: We have excluded costs associated with both potential and announced acquisitions to allow for comparable financial results to historical operations and forward-looking guidance.
• Integration-related costs for completed acquisitions: We have excluded integration costs related to business structure realignment and new programs for recent acquisitions to allow for comparable financial results to historical operations and forward-looking guidance. In addition, the nature and amount of such charges vary significantly based on the size and timing of the programs. By excluding the referenced expenses from our non-GAAP financial measures, our management is able to further evaluate our ability to utilize existing assets and estimate their long-term value. Furthermore, our management believes that the adjustment of these items supplements the GAAP information with a measure that can be used to assess the sustainability of our operating performance.
• One-time costs associated with new campus openings: During fiscal 2022, we opened new campus locations in Austin, Texas and Miramar, Florida. We continued to incur one-time costs during fiscal 2023 for the campus opening as we completed the build-out of the remaining programs in the new facilities. We disclose any campus adjustments as direct costs (net of any corporate allocations). Outfitting a new campus requires significant facility improvements and modifications, and the purchase of technical equipment and training aids necessary for teaching our programs, the combination of which requires a significant investment by the Company which would not be considered part of normal recurring operations.
• Restructuring charges: In December 2023, we announced plans to consolidate the two Houston, Texas campus locations to align the curriculum, student facing systems, and support services to better serve students seeking careers in in-demand fields. As part of the transition, the MIAT Houston campus, acquired in November 2021, began a phased teach-out in May 2024, and such campus began operating under the UTI brand. MIAT-Houston students who have not completed their programs before their program’s teach-out date may enroll at UTI-Houston to complete their program. Both facilities will remain in use post-consolidation.
• Facility lease accounting adjustments: During 2022, as part of our facility optimization project, we recorded lease accounting adjustments for lease termination payments associated with our Orlando, Florida and MMI Phoenix, Arizona campuses and a non-cash lease adjustment when we purchased our Lisle, Illinois campus. During 2024, we recorded a lease accounting adjustment for a lease termination payment for the previous Concorde corporate offices. These adjustments are not considered part of normal recurring operations.
• Costs related to the purchase of our campuses: We lease the majority of our campus locations. Over the past three years due to shifts within the real estate environment, we have been presented with the opportunity to purchase three of our campus locations. These purchases are significant capital expenditures and not considered part of normal recurring operations.

To obtain a complete understanding of our performance, these measures should be examined in connection with net income (loss) and net cash provided by (used in) operating activities, determined in accordance with GAAP, as presented in the financial statements and notes thereto included in the annual and quarterly filings with the Securities and Exchange Commission (“SEC”). Because the items excluded from these non-GAAP measures are significant components in understanding and assessing our financial performance under GAAP, these measures should not be considered to be an alternative to net income (loss) or net cash provided by (used in) operating activities as a measure of our operating performance or liquidity. Exclusion of items in the non-GAAP presentation should not be construed as an inference that these items are unusual, infrequent or non-recurring. Other companies, including other companies in the education industry, may define and calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure across similarly titled performance measures presented by other companies. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures is provided below and investors are encouraged to review the reconciliations.

Forward Looking Statements

All statements contained in this press release and the related conference call, other than statements of historical fact, are “forward-looking” statements within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements which address our expected future business and financial performance, may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” “will,” the negative form of these expressions or similar expressions. Examples of forward-looking statements include, among others, statements regarding (1) the Company’s expectation that it will meet its fiscal year 2025 guidance for new student start growth, revenue growth, net income, diluted earnings per share, Adjusted EBITDA and Adjusted Free Cash Flow; (2) the Company’s expectation that it will continue to expand its value proposition and build a business that can grow in double digits with potential upside, regardless of the economic environment; and (3) the Company’s expectation that it will succeed in new program launches next year. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could affect our actual results include, among other things, failure of our schools to comply with the extensive regulatory requirements for school operations; our failure to maintain eligibility for or our ability to process federal student financial assistance funds; the effect of current and future Title IV Program regulations arising out of negotiated rulemakings, including any potential reductions in funding or restrictions on the use of funds received through Title IV Programs; the effect of future legislative or regulatory initiatives related to veterans’ benefit programs; continued Congressional examination of the for-profit education sector; regulatory investigations of, or actions commenced against, us or other companies in our industry; changes in the state regulatory environment or budgetary constraints; our failure to execute on our growth and diversification strategy, including effectively identifying, establishing and operating additional schools, programs or campuses; our failure to realize the expected benefits of our acquisitions, or our failure to successfully integrate our acquisitions.; our failure to improve underutilized capacity at certain of our campuses; enrollment declines or challenges in our students’ ability to find employment as a result of macroeconomic conditions; our failure to maintain and expand existing industry relationships and develop new industry relationships; our ability to update and expand the content of existing programs and develop and integrate new programs in a timely and cost-effective manner while maintaining positive student outcomes; a loss of our senior management or other key employees; failure to comply with the restrictive covenants and our ability to pay the amounts when due under the credit agreement; the effect of our principal stockholder owning a significant percentage of our capital stock, and thus being able to influence certain corporate matters and the potential in the future to gain substantial control over our company; the effect of public health pandemics, epidemics or outbreak, including COVID-19, and other risks that are described from time to time in our public filings. Further information on these and other potential factors that could affect the financial results or condition may be found in the company’s filings with the SEC. Any forward-looking statements made by us in this press release and the related conference call are based only on information currently available to us and speak only as of the date on which it is made. We expressly disclaim any obligation to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, changes in expectations, any changes in events, conditions or circumstances, or otherwise.

Social Media Disclosure

Universal Technical Institute (UTI) uses its websites (https://www.uti.edu/ and https://investor.uti.edu/) and LinkedIn page (https://www.linkedin.com/school/universal-technical-institute/) as channels of distribution of information about its programs, its planned financial and other announcements, its attendance at upcoming investor and industry conferences, and other matters. Such information may be deemed material information, and UTI may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor the company’s website and its social media accounts in addition to following the company’s press releases, SEC filings, public conference calls, and webcasts.

About Universal Technical Institute, Inc.

Universal Technical Institute, Inc. UTI was founded in 1965 and is a leading workforce solutions provider of transportation, skilled trades and healthcare education programs, whose mission is to serve students, partners, and communities by providing quality education and support services for in-demand careers across a number of highly-skilled fields. The Company is comprised of two divisions: Universal Technical Institute (“UTI”) and Concorde Career Colleges (“Concorde”). UTI operates 16 campuses located in nine states and offers a wide range of transportation and skilled trades technical training programs under brands such as UTI, MIAT College of Technology, Motorcycle Mechanics Institute, Marine Mechanics Institute and NASCAR Technical Institute. Concorde operates across 17 campuses in eight states, offering programs in the Allied Health, Dental, Nursing, Patient Care and Diagnostic fields. For more information, visit www.uti.edu or www.concorde.edu, or visit us on LinkedIn at @UniversalTechnicalInstitute and @Concorde Career Colleges or on Twitter @news_UTI or @ConcordeCareer.

Company Contact:
Christine Kline
Interim Chief Financial Officer and Chief Accounting Officer
Universal Technical Institute, Inc.
(623) 445-9464

Media Contact:
Susan Aspey
Vice President, Corporate Affairs & External Communications
Universal Technical Institute, Inc.
(202) 549-0534
saspey@uti.edu

Investor Relations Contact:
Matt Glover or Cody Cree
Gateway Group, Inc.
(949) 574-3860
UTI@gateway-grp.com

(Tables Follow)

 

 

 

 

Financial Summary by Segment and Consolidated

During fiscal 2023, in coordination with the integration of Concorde, we began to reassess our operating model to determine the organizational structure that would best help the Company achieve future growth goals and optimally support the business. Beginning in fiscal 2024, we have executed an internal reorganization to fully transition our operating and reporting model to support a multi-divisional business. As part of the internal reorganization, each of the reportable segments now have dedicated accounting, finance, information technology, and human resources teams. Additionally, human resources and information technology costs that benefit the entire organization are now allocated across UTI, Concorde and Corporate each period based upon relative headcount. As a result, additional costs have moved from Corporate into the UTI segment and to a lesser extent the Concorde segment as resources were redirected to support the segment’s objectives. Due to these changes in allocation methodology, the prior year segment amounts have been recast for comparability to the current year presentation. 

   

   

 

 

   

 

For each of the non-GAAP reconciliations provided for fiscal 2025 guidance, we are reconciling to the midpoint of the guidance range. The adjustments reflected below for fiscal 2025 are illustrative only and may change throughout the year, both in amount or the adjustments themselves.

 

 

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SOURCE Universal Technical Institute, Inc.

• Record quarterly revenue of $35.1 billion, up 17% from Q2 and up 94% from a year ago
• Record quarterly Data Center revenue of $30.8 billion, up 17% from Q2 and up 112% from a year ago

SANTA CLARA, Calif., Nov. 20, 2024 (GLOBE NEWSWIRE) — NVIDIA NVDA today reported revenue for the third quarter ended October 27, 2024, of $35.1 billion, up 17% from the previous quarter and up 94% from a year ago.

For the quarter, GAAP earnings per diluted share was $0.78, up 16% from the previous quarter and up 111% from a year ago. Non-GAAP earnings per diluted share was $0.81, up 19% from the previous quarter and up 103% from a year ago.

“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” said Jensen Huang, founder and CEO of NVIDIA. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.

“AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure,” he said.

NVIDIA will pay its next quarterly cash dividend of $0.01 per share on December 27, 2024, to all shareholders of record on December 5, 2024.

Q3 Fiscal 2025 Summary

GAAP
($ in millions, except earnings per share)	Q3 FY25			Q2 FY25			Q3 FY24			Q/Q	Y/Y
Revenue	$	35,082		$	30,040		$	18,120		Up 17%	Up 94%
Gross margin		74.6	%		75.1	%		74.0	%	Down 0.5 pts	Up 0.6 pts
Operating expenses	$	4,287		$	3,932		$	2,983		Up 9%	Up 44%
Operating income	$	21,869		$	18,642		$	10,417		Up 17%	Up 110%
Net income	$	19,309		$	16,599		$	9,243		Up 16%	Up 109%
Diluted earnings per share*	$	0.78		$	0.67		$	0.37		Up 16%	Up 111%

Non-GAAP
($ in millions, except earnings per share)	Q3 FY25			Q2 FY25			Q3 FY24			Q/Q	Y/Y
Revenue	$	35,082		$	30,040		$	18,120		Up 17%	Up 94%
Gross margin		75.0	%		75.7	%		75.0	%	Down 0.7 pts	—
Operating expenses	$	3,046		$	2,792		$	2,026		Up 9%	Up 50%
Operating income	$	23,276		$	19,937		$	11,557		Up 17%	Up 101%
Net income	$	20,010		$	16,952		$	10,020		Up 18%	Up 100%
Diluted earnings per share*	$	0.81		$	0.68		$	0.40		Up 19%	Up 103%

*All per share amounts presented herein have been retroactively adjusted to reflect the ten-for-one stock split, which was effective June 7, 2024.

Outlook
NVIDIA’s outlook for the fourth quarter of fiscal 2025 is as follows:

• Revenue is expected to be $37.5 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 73.0% and 73.5%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $4.8 billion and $3.4 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-affiliated investments and publicly-held equity securities.
• GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items.

Highlights

NVIDIA achieved progress since its previous earnings announcement in these areas: 

Data Center

• Third-quarter revenue was a record $30.8 billion, up 17% from the previous quarter and up 112% from a year ago.
• Announced the availability of NVIDIA Hopper H200-powered instances in several cloud services, including AWS, CoreWeave and Microsoft Azure, with Google Cloud and Oracle Cloud Infrastructure coming soon.
• Launched Denmark’s largest sovereign AI supercomputer, an NVIDIA® DGX SuperPOD™ driven by 1,528 NVIDIA H100 Tensor Core GPUs and interconnected using NVIDIA Quantum-2 InfiniBand networking.
• Introduced the NVIDIA AI Aerial platform for telecommunications providers and began working with T-Mobile, Ericsson and Nokia to accelerate the commercialization of AI-RAN.
• Announced that SoftBank Corp. is building Japan’s most powerful AI supercomputer with the NVIDIA Blackwell platform and has successfully piloted the world’s first combined AI and 5G telecom network using NVIDIA AI Aerial.
• Revealed that cloud leaders in India, Japan and Indonesia are building AI infrastructure with NVIDIA accelerated computing, while consulting leaders are helping speed AI adoption across industries with NVIDIA AI Enterprise software.
• Accelerated xAI’s Colossus supercomputer cluster, using 100,000 NVIDIA Hopper GPUs, with the NVIDIA Spectrum-X™ Ethernet networking platform.
• Unveiled a partnership with Foxconn to build Taiwan’s fastest AI supercomputer with NVIDIA Blackwell.
• Announced that Blackwell debuted on MLPerf Training, completed all tests and delivered up to 2.2x performance gains on large language model benchmarks.
• Contributed foundational elements of the NVIDIA Blackwell design to the Open Compute Project and broadened NVIDIA Spectrum-X support for OCP standards.
• Revealed that U.S. technology companies including Accenture, Deloitte and Google Cloud are tapping NVIDIA AI software to create custom AI applications, transforming industries worldwide.
• Announced the expansion of a partnership with Lenovo to launch new hybrid AI solutions and systems optimized to run NVIDIA AI Enterprise software.

Gaming and AI PC

• Third-quarter Gaming revenue was $3.3 billion, up 14% from the previous quarter and up 15% from a year ago. 
• Celebrated the 25^th anniversary of GeForce® 256, the world’s first GPU, which marked a breakthrough for gaming and laid the foundation for an AI-driven future.
• Demonstrated NVIDIA ACE and digital human technologies in Mecha BREAK, featuring the Minitron 4B model for better in-game character responses, at Gamescom.
• Introduced 20 GeForce RTX and DLSS titles, including Indiana Jones and the Great Circle and Dragon Age: The Veilguard.
• Began shipping new RTX AI PCs with 321 AI trillion operations per second of performance from ASUS and MSI, with Microsoft Copilot+ capabilities anticipated next quarter.

Professional Visualization

• Third-quarter revenue was $486 million, up 7% from the previous quarter and up 17% from a year ago.
• Announced that Foxconn is using digital twins and industrial AI built on NVIDIA Omniverse™ to bring online faster three factories used to manufacture NVIDIA GB200 Grace Blackwell Superchips.
• Revealed that leading industrial manufacturers in India, including Reliance and Ola Motors, and Japan, including Toyota, Yaskawa, and Seven and I Holdings, are using NVIDIA AI and Omniverse to automate workflows and drive more efficient operations.
• Unveiled NVIDIA Holoscan for Media, an AI-enabled, software-defined platform that allows live media and video pipelines to run on the same infrastructure as AI, enhancing production delivery.

Automotive and Robotics

• Third-quarter Automotive revenue was $449 million, up 30% from the previous quarter and up 72% from a year ago.
• Revealed that Volvo is releasing a new electric SUV built on NVIDIA accelerated computing.
• Introduced Project GR00T AI and simulation tools for robot learning and humanoid development, and new generative AI tools and perception workflows for robotics developers.
• Announced that Japanese and Indian companies including Toyota and Ola Motors are using NVIDIA Isaac™ and Omniverse to build the next wave of physical AI.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2025 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its fourth quarter and fiscal 2025.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains and losses from non-affiliated investments and publicly-held equity securities, net, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
			Three Months Ended								Nine Months Ended
			October 27,				October 29,				October 27,				October 29,
				2024				2023				2024				2023
Revenue			$	35,082			$	18,120			$	91,166			$	38,819
Cost of revenue				8,926				4,720				22,031				11,309
Gross profit				26,156				13,400				69,135				27,510
Operating expenses
	Research and development			3,390				2,294				9,200				6,210
	Sales, general and administrative			897				689				2,516				1,942
		Total operating expenses		4,287				2,983				11,716				8,152
Operating Income				21,869				10,417				57,419				19,358
	Interest income			472				234				1,275				572
	Interest expense			(61	)			(63	)			(186	)			(194	)
	Other, net			36				(66	)			301				(24	)
		Other income (expense), net		447				105				1,390				354
Income before income tax				22,316				10,522				58,809				19,712
Income tax expense				3,007				1,279				8,020				2,237
Net income			$	19,309			$	9,243			$	50,789			$	17,475
Net income per share (A):
	Basic		$	0.79			$	0.37			$	2.07			$	0.71
	Diluted		$	0.78			$	0.37			$	2.04			$	0.70
Weighted average shares used in per share computation (A):
	Basic			24,533				24,680				24,577				24,700
	Diluted			24,774				24,940				24,837				24,940
(A) Reflects a ten-for-one stock split on June 7, 2024.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
				October 27,			January 28,
				2024			2024
ASSETS
Current assets:
	Cash, cash equivalents and marketable securities			$	38,487		$	25,984
	Accounts receivable, net				17,693			9,999
	Inventories				7,654			5,282
	Prepaid expenses and other current assets				3,806			3,080
		Total current assets			67,640			44,345
Property and equipment, net					5,343			3,914
Operating lease assets					1,755			1,346
Goodwill					4,724			4,430
Intangible assets, net					838			1,112
Deferred income tax assets					10,276			6,081
Other assets					5,437			4,500
		Total assets		$	96,013		$	65,728
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable			$	5,353		$	2,699
	Accrued and other current liabilities				11,126			6,682
	Short-term debt				–			1,250
		Total current liabilities			16,479			10,631
Long-term debt					8,462			8,459
Long-term operating lease liabilities					1,490			1,119
Other long-term liabilities					3,683			2,541
		Total liabilities			30,114			22,750
Shareholders’ equity					65,899			42,978
		Total liabilities and shareholders’ equity		$	96,013		$	65,728

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
			Three Months Ended								Nine Months Ended
			October 27,				October 29,				October 27,				October 29,
				2024				2023				2024				2023
Cash flows from operating activities:
Net income			$	19,309			$	9,243			$	50,789			$	17,475
Adjustments to reconcile net income to net cash
provided by operating activities:
	Stock-based compensation expense			1,252				979				3,416				2,555
	Depreciation and amortization			478				372				1,321				1,121
	(Gains) losses on investments in non-affiliated entities and publicly-held equity securities, net			(37	)			69				(302	)			24
	Deferred income taxes			(602	)			(529	)			(3,879	)			(2,411	)
	Other			(79	)			(66	)			(365	)			(170	)
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable			(3,561	)			(1,243	)			(7,694	)			(4,482	)
	Inventories			(978	)			(457	)			(2,357	)			405
	Prepaid expenses and other assets			(714	)			254				(726	)			(337	)
	Accounts payable			1,689				461				2,490				1,250
	Accrued and other current liabilities			606				(1,722	)			3,918				953
	Other long-term liabilities			266				(28	)			849				208
Net cash provided by operating activities				17,629				7,333				47,460				16,591
Cash flows from investing activities:
	Proceeds from maturities of marketable securities			1,386				2,891				9,485				8,001
	Proceeds from sales of marketable securities			154				–				318				–
	Purchases of marketable securities			(4,518	)			(5,345	)			(19,565	)			(10,688	)
	Purchase related to property and equipment and intangible assets			(813	)			(278	)			(2,159	)			(815	)
	Acquisitions, net of cash acquired			(147	)			–				(465	)			(83	)
	Purchases of investments in non-affiliated entities			(473	)			(441	)			(1,008	)			(897	)
	Proceeds from sales of investments in non-affiliated entities			66				–				171				–
	Other			–				4				–				25
Net cash used in investing activities				(4,345	)			(3,169	)			(13,223	)			(4,457	)
Cash flows from financing activities:
	Proceeds related to employee stock plans			204				156				489				403
	Payments related to repurchases of common stock			(10,998	)			(3,806	)			(25,895	)			(6,874	)
	Repayment of debt			–				–				(1,250	)			(1,250	)
	Payments related to tax on restricted stock units			(1,680	)			(764	)			(5,068	)			(1,942	)
	Dividends paid			(245	)			(99	)			(589	)			(296	)
	Principal payments on property and equipment and intangible assets			(29	)			(13	)			(97	)			(44	)
	Other			–				(1	)			–				(1	)
Net cash used in financing activities				(12,748	)			(4,527	)			(32,410	)			(10,004	)
Change in cash, cash equivalents, and restricted cash				536				(363	)			1,827				2,130
Cash, cash equivalents, and restricted cash at beginning of period				8,571				5,882				7,280				3,389
Cash, cash equivalents, and restricted cash at end of period			$	9,107			$	5,519			$	9,107			$	5,519
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net			$	3,540			$	4,348			$	10,989			$	4,676

	NVIDIA CORPORATION
	RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
	(In millions, except per share data)
	(Unaudited)
				Three Months Ended												Nine Months Ended
				October 27,				July 28,				October 29,				October 27,				October 29,
					2024				2024				2023				2024				2023
	GAAP gross profit			$	26,156			$	22,574			$	13,400			$	69,135			$	27,510
	GAAP gross margin				74.6	%			75.1	%			74.0	%			75.8	%			70.9	%
		Acquisition-related and other costs (A)			116				118				119				355				358
		Stock-based compensation expense (B)			50				40				38				125				96
		Other (C)			–				(3	)			26				(4	)			36
	Non-GAAP gross profit			$	26,322			$	22,729			$	13,583			$	69,611			$	28,000
	Non-GAAP gross margin				75.0	%			75.7	%			75.0	%			76.4	%			72.1	%
	GAAP operating expenses			$	4,287			$	3,932			$	2,983			$	11,716			$	8,152
		Stock-based compensation expense (B)			(1,202	)			(1,114	)			(941	)			(3,291	)			(2,459	)
		Acquisition-related and other costs (A)			(39	)			(26	)			(16	)			(86	)			(88	)
		Other (C)			–				–				–				–				10
	Non-GAAP operating expenses			$	3,046			$	2,792			$	2,026			$	8,339			$	5,615
	GAAP operating income			$	21,869			$	18,642			$	10,417			$	57,419			$	19,358
		Total impact of non-GAAP adjustments to operating income			1,407				1,295				1,140				3,853				3,027
	Non-GAAP operating income			$	23,276			$	19,937			$	11,557			$	61,272			$	22,385
	GAAP other income (expense), net			$	447			$	572			$	105			$	1,390			$	354
		(Gains) losses from non-affiliated investments and publicly-held equity securities, net			(37	)			(193	)			69				(302	)			23
		Interest expense related to amortization of debt discount			1				1				1				3				3
	Non-GAAP other income (expense), net			$	411			$	380			$	175			$	1,091			$	380
	GAAP net income			$	19,309			$	16,599			$	9,243			$	50,789			$	17,475
		Total pre-tax impact of non-GAAP adjustments			1,371				1,103				1,210				3,554				3,053
		Income tax impact of non-GAAP adjustments (D)			(670	)			(750	)			(433	)			(2,144	)			(1,055	)
	Non-GAAP net income			$	20,010			$	16,952			$	10,020			$	52,199			$	19,473
	Diluted net income per share (E)
		GAAP		$	0.78			$	0.67			$	0.37			$	2.04			$	0.70
		Non-GAAP		$	0.81			$	0.68			$	0.40			$	2.10			$	0.78
	Weighted average shares used in diluted net income per share computation (E)				24,774				24,848				24,940				24,837				24,940
	GAAP net cash provided by operating activities			$	17,629			$	14,489			$	7,333			$	47,460			$	16,591
		Purchases related to property and equipment and intangible assets			(813	)			(977	)			(278	)			(2,159	)			(815	)
		Principal payments on property and equipment and intangible assets			(29	)			(29	)			(13	)			(97	)			(44	)
	Free cash flow			$	16,787			$	13,483			$	7,042			$	45,204			$	15,732
	(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
				Three Months Ended												Nine Months Ended
				October 27,				July 28,				October 29,				October 27,				October 29,
					2024				2024				2023				2024				2023
		Cost of revenue		$	116			$	118			$	119			$	355			$	358
		Research and development		$	23			$	17			$	12			$	52			$	37
		Sales, general and administrative		$	16			$	9			$	4			$	34			$	51
	(B) Stock-based compensation consists of the following:
				Three Months Ended												Nine Months Ended
				October 27,				July 28,				October 29,				October 27,				October 29,
					2024				2024				2023				2024				2023
		Cost of revenue		$	50			$	40			$	38			$	125			$	96
		Research and development		$	910			$	832			$	701			$	2,469			$	1,826
		Sales, general and administrative		$	292			$	282			$	240			$	822			$	633
	(C) Other consists of IP-related costs and assets held for sale related adjustments
	(D) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09).
	(E) Reflects a ten-for-one stock split on June 7, 2024

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
		Q4 FY2025 Outlook
		($ in millions)
GAAP gross margin			73.0	%
	Impact of stock-based compensation expense, acquisition-related costs, and other costs		0.5	%
Non-GAAP gross margin			73.5	%
GAAP operating expenses		$	4,750
	Stock-based compensation expense, acquisition-related costs, and other costs		(1,350	)
Non-GAAP operating expenses		$	3,400

About NVIDIA
NVIDIA NVDA is the world leader in accelerated computing.

Certain statements in this press release including, but not limited to, statements as to: the age of AI in full steam, propelling a global shift to NVIDIA computing; demand for Hopper and anticipation for Blackwell — in full production — being incredible as foundation model makers scale pretraining, post-training and inference; AI transforming every industry, company and country; enterprises adopting agentic AI to revolutionize workflows; industrial robotics investments surging with breakthroughs in physical AI; countries awakening to the importance of developing their national AI and infrastructure; NVIDIA’s next quarterly cash dividend; and NVIDIA’s financial outlook and expected tax rates for the fourth quarter of fiscal 2025 are risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; and unexpected loss of performance of our products or technologies when integrated into systems, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2024 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, NVIDIA DGX SuperPOD, NVIDIA Isaac, NVIDIA Omniverse and NVIDIA Spectrum-X are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/24a5522e-6258-4e72-9c8a-a57178db4b41