In real life, I assure you, there is no such thing as algebra. -- Fran Lebowitz

Universal Technical Institute (NASDAQ:UTI) makes its money the blue-collar way -- providing technical training for automotive, diesel, collision repair, motorcycle, and marine technicians.

It's a good business. For the latest quarter, revenue and earnings increased 27%. The company's 17% operating margins are healthy, although they lag the 24% margins at white-collar degree-granting kingpin Apollo Group (NYSE:APOL).

The company lures students with brand-name training. Like the throaty sound of a Harley-Davidson (NYSE:HDI) or the range of bikes offered by Honda (NYSE:HMC)? Universal's training comes with support and endorsement from all five major motorcycle manufacturers.

The scene is similar on the automotive front. Ford (NYSE:F) provides Ford, Lincoln, and Mercury vehicles plus specialty equipment to Universal for a 15-week elective course that leads to Ford certifications. DaimlerChrysler's (NYSE:DCX) Mercedes-Benz-sponsored automotive technician training includes collision repair.

Universal expects to grow revenue 20% to 22% next year -- and hit net income margins of 10.5% to 11%. The company, currently with eight campuses, will add a Boston campus in 2005 and a Sacramento California campus in 2006.

There is even enough confidence that the company provides 2006 guidance -- a rarity in this day of "the future is too uncertain." Maybe to the givens of death and taxes should be added vehicle repair! For 2006, Universal sees 20% to 25% revenue growth and a return to the 11% to 11.5% net income margins of 2004. That's one finely tuned engine.

The balance sheet is healthy because of the company's December initial public offering of stock at $20.50 a share. The $59 million in proceeds allowed the company to virtually wipe out its total debt and, with the aide of its free cash flow, grow cash reserves from $9 million last year to $43 million now.

Such a fine running operation comes at a price. The stock trades for a premium 34 times earnings. But, there is a substantial opportunity to grow campuses and the company's close relationship with big-name manufacturers is a plus at finding students. Up 70% since the IPO, the stock is a growth vehicle with excellent long-term prospects in blue-collar education.

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Fool contributor W.D. Crotty does not own stock in any of the companies mentioned but could use training in maintaining anything mechanical.