Lincoln Educational Services Corporation (Nasdaq: LINC) today
announced financial and operating results for the second quarter
ended June 30, 2024, as well as recent business developments.
Second Quarter 2024 Financial Highlights*
- Revenue grew 16.1% to $102.9 million
- Student starts increased 12.3%; 11.4% increase in quarter-end
student population
- Net loss of $700,000 and Adjusted EBITDA of $6.2 million
- Total liquidity of more than $100 million; no debt
outstanding
- New East Point, Georgia campus student starts to date exceeds
full-year plan
- Raised outlook for full year Revenue; raised lower end of
adjusted EBITDA, adjusted net income and student starts; reduced
2024 capital expenditures due to timing
*Note: The highlighted financial results exclude
the Transitional segment results of the prior year. A
reconciliation of GAAP / non-GAAP measures is included in this
release.
“We continued our strong performance during the
second quarter with revenue growing 16.1%, student starts
increasing 12.3% and adjusted EBITDA more than doubling compared to
last year,“ commented Scott Shaw, President & CEO. “The
transformational growth strategies we have set in place are
enabling Lincoln to capitalize on the American public’s increased
interest in educational alternatives to a traditional four-year
college degree while employers continue to face a workforce skills
gap, which is driving demand for our graduates.”
“We remain focused on improving our efficiency
as we grow, while always striving to improve our student experience
and outcomes. The rollout of our hybrid teaching platform, Lincoln
10.0, which is nearing completion, supports these objectives and
plays a critical role in the key components of our growth strategy,
new campus development and program replication at existing
campuses. The first new campus in East Point, Georgia opened in
March is off to an exceptionally strong start with student starts
during its first four months exceeding our original forecast for
the full year.”
“During the second quarter, we continued the
buildouts of our campus relocations in Nashville, Tennessee and
Levittown, Pennsylvania, which are both expected to open in the
first half of 2025. We are also continuing work on our new
campus in Houston, Texas, which is now anticipated to welcome
students by the end of 2025. We anticipate announcing another new
campus in the upcoming months as we continue to expand our
footprint.”
“We continued to develop our existing corporate partnerships and
are in various stages of negotiations with new partners. The
workforce development partnership with Container Maintenance
Corporation (CMC) began operations in June at CMC’s Charleston,
South Carolina facility. We believe our company has unique
capabilities to expand workforce development programs to capitalize
on this significant opportunity and are executing plans to realize
this potential.”
“Our performance over the first six months of 2024, combined
with our outlook into the second half of the year, leads us to
raise our outlook for our full year revenue and increase the low
end of the range of our adjusted EBITDA, adjusted net income and
student start metrics. We are focused on realizing our full
potential for our students, instructors, partners and shareholders
and the first six months of 2024 position Lincoln to achieve our
growth objectives for 2024 and beyond.”
2024 SECOND QUARTER FINANCIAL RESULTS
(Quarter ended June 30, 2024, compared to June 30,
2023)
- Revenue grew by $14.3 million, or 16.1% to
$102.9 million. The increase was primarily due to an 11.7% increase
in average student population resulting from entering this quarter
with 11.2% more students combined with new student start growth of
12.3%. Revenue per student also helped drive overall growth in
revenue.
- Educational services and facilities expense
increased $5.5 million, or 13.8% to $45.5 million. The
expense increase includes approximately $2.6 million of new campus
and relocation costs related to the recently opened East Point,
Georgia campus, relocation costs associated with the Nashville,
Tennessee and the Levittown, Pennsylvania campuses and costs
associated with the new Houston, Texas campus. Additional expense
increases were due mostly to the higher student population. As a
percentage of revenue, educational services and facilities expense
declined to 44.3% from 45.2%.
- Selling, general and administrative expense
increased $6.1 million, or 11.7% to $57.9 million.
Included in the increase over the prior year are approximately $1.2
million of expenses relating to the recently opened East Point,
Georgia campus. The remaining increase was driven by several
factors including higher salary expense due to merit increases and
new hires, in addition to $2.0 million of marketing investments and
sales expense, which helped drive the 12.3% increase in student
starts. As a percentage of revenue, selling, general and
administrative expense declined to 56.2% from 58.5%.
- Net interest expense was less than $0.1
million, compared to net interest income of $0.5 million in the
prior year comparable period. Interest income in the current year
and prior year remained essentially flat, with an increase in
interest expense in the current year resulting from the addition of
two new finance leases.
- Benefit for income taxes was $0.5 million
resulting from a pre-tax loss and a discrete item, compared to a
tax provision of $6.8 million in the prior year mainly driven by a
$30.9 million gain recognized on the sale of the Nashville,
Tennessee property.
SECOND QUARTER SEGMENT RESULTS
Campus Operations SegmentRevenue increased
$14.7 million, or 16.7% to $102.9 million. Adjusted EBITDA
increased $5.4 million or 52.9% to $15.8 million, from $10.3
million in the prior year.
Transitional SegmentThe Somerville,
Massachusetts campus teach-out was completed in the fourth quarter
of 2023. In the prior year comparable period, the Somerville campus
had revenue of $0.4 million and operating expenses of $0.9
million.
Corporate and OtherThis category includes
unallocated expenses incurred on behalf of the entire
Company. Corporate and other expenses were $10.7 million and
$11.1 million for the three months ended June 30, 2024, and 2023,
respectively, after excluding a $30.9 million gain in the prior
year resulting from the sale of the Nashville, Tennessee
property. The decrease in expense from the prior year was
primarily driven by a reduction in stock-based compensation expense
resulting from last year’s cumulative catch-up of expense due to
meeting financial performance targets, partially offset by
additional salaries and benefits expense resulting in part from
student population growth.
SIX MONTHS FINANCIAL RESULTS (Quarter ended
June 30, 2024, compared to June 30, 2023)
- Total revenue increased $30.4 million, or 17.3%, to $206.3
million, compared to $175.9 million.
- Campus Operations Segment revenue increased $31.7 million, or
18.2% to $206.2 million, compared to $174.5 million.
- Transitional Segment revenue decreased $1.4 million, or 100% to
zero, compared to $1.4 million.
FULL YEAR 2024 OUTLOOKBased on second quarter
operating and financial results, as well as the outlook for the
remainder of the year, the Company is raising the financial
guidance for revenue and raising the lower end range for adjusted
EBITDA, adjusted net income and student starts. Additionally,
the Company is reducing the capital expenditures guidance due
to timing of capital spend from 2024 to 2025 primarily related to
the Company’s new Houston, Texas campus. Also, the campus
relocations in Nashville, Tennessee and Levittown, Pennsylvania
buildouts are slightly ahead of schedule and are expected to open
in the first half of 2025. Updated, guidance for the
full year 2024 is outlined below:
|
|
|
|
|
|
|
|
|
|
2024
Guidance |
|
(Amounts in millions except for student starts) |
|
Low |
|
High |
|
Revenue |
|
$ 423 |
- |
$ 430 |
|
Adjusted EBITDA |
|
$ 39 |
- |
$ 42 |
1 |
Adjusted net income |
|
$ 14 |
- |
$ 17 |
1 |
Capital expenditures |
|
$ 45 |
- |
$ 55 |
|
Starts |
|
9% |
- |
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
The guidance in this release includes references to non-GAAP
operating measures. A reconciliation to the midpoint of our
guidance can be reviewed below in the non-GAAP operating measures
at the end of this release. |
|
|
|
|
|
|
|
CONFERENCE CALL INFOLincoln will host a
conference call today at 10:00 a.m. Eastern Standard Time
to discuss results. To access the live webcast of the conference
call, please go to the Investor Overview section of Lincoln’s
website at http://www.lincolntech.edu. Participants may also
register via teleconference at: Q2 2024 Lincoln Educational
Services Earnings Conference Call. Once registration is completed,
participants will be provided with a dial-in number containing a
personalized PIN to access the call. Participants are
requested to register at least 15 minutes prior to the start of the
call.
An archived version of the webcast will be
accessible for 90 days at http://www.lincolntech.edu.
ABOUT LINCOLN EDUCATIONAL SERVICES
CORPORATION
Lincoln Educational Services Corporation is a
leading provider of diversified career-oriented post-secondary
education helping to provide solutions to America’s skills gap.
Lincoln offers career-oriented programs to recent high school
graduates and working adults in five principal areas of study:
automotive technology, health sciences, skilled trades, business
and information technology, and hospitality services. Lincoln has
provided the workforce with skilled technicians since its inception
in 1946 and currently operates 22 campuses in 13 states under
Lincoln College of Technology, Lincoln Technical Institute, Lincoln
Culinary Institute, Euphoria Institute of Beauty Arts and Sciences
and associated brand names. For more information, please go to
www.lincolntech.edu.
FORWARD-LOOKING
STATEMENTSStatements in this press release and in oral
statements made from time to time by representatives of Lincoln
Educational Services Corporation regarding Lincoln’s business that
are not historical facts, including those made in a conference
call, may be “forward-looking statements” as that term is defined
in the federal securities law. The words “may,” “will,” “expect,”
“believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,”
and “continue,” and their opposites and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are based on information available at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events, and are subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Generally, these statements relate to business plans or strategies
and projections involving anticipated revenues, earnings, or other
aspects of the Company’s operating results. Such forward-looking
statements include the Company’s current belief that it is taking
appropriate steps regarding the pandemic and that student growth
will continue. The Company cautions you that these statements
concern current expectations about the Company’s future performance
or events and are subject to a number of uncertainties, risks, and
other influences, many of which are beyond the Company’s control,
that may influence the accuracy of the statements and the projects
upon which the statements are based including, without limitation,
impacts related to the COVID-19 pandemic or other epidemics or
pandemics; our failure to comply with the extensive regulatory
framework applicable to our industry or our failure to obtain
timely regulatory approvals in connection with acquisitions or a
change of control of our Company; our success in updating and
expanding the content of existing programs and developing new
programs for our students in a cost-effective manner or on a timely
basis; risks associated with cybersecurity; risks associated with
changes in applicable federal laws and regulations; uncertainties
regarding our ability to comply with federal laws and regulations,
such as the 90/10 rule and prescribed cohort default rates; risks
associated with the opening of new campuses; risks associated with
integration of acquired schools; industry competition; our ability
to execute our growth strategies; conditions and trends in our
industry; general economic conditions; and other factors discussed
in the “Risk Factors” section of our Annual Reports and Quarterly
Reports filed with the Securities and Exchange Commission. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and Lincoln undertakes no obligation to
publicly revise or update any forward-looking statements, whether
as a result of new information, future events or otherwise after
the date hereof.
(Tables to Follow)(In Thousands)
|
Three Months
Ended |
|
Six Months
Ended |
|
June
30, |
|
June
30, |
|
(Unaudited) |
|
(Unaudited) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
REVENUE |
$ |
102,914 |
|
|
$ |
88,646 |
|
|
$ |
206,281 |
|
|
$ |
175,929 |
|
COSTS AND
EXPENSES: |
|
|
|
|
|
|
|
Educational services and facilities |
|
45,561 |
|
|
|
40,030 |
|
|
|
88,584 |
|
|
|
78,123 |
|
Selling, general and administrative |
|
57,865 |
|
|
|
51,814 |
|
|
|
118,359 |
|
|
|
102,119 |
|
Loss (gain) on sale of assets |
|
604 |
|
|
|
(30,933 |
) |
|
|
913 |
|
|
|
(30,933 |
) |
Impairment of goodwill and long-lived assets |
|
- |
|
|
|
4,220 |
|
|
|
- |
|
|
|
4,220 |
|
Total costs & expenses |
|
104,030 |
|
|
|
65,131 |
|
|
|
207,856 |
|
|
|
153,529 |
|
OPERATING (
LOSS) INCOME |
|
(1,116 |
) |
|
|
23,515 |
|
|
|
(1,575 |
) |
|
|
22,400 |
|
OTHER: |
|
|
|
|
|
|
|
Interest income |
|
638 |
|
|
|
547 |
|
|
|
1,336 |
|
|
|
1,013 |
|
Interest expense |
|
(667 |
) |
|
|
(28 |
) |
|
|
(1,234 |
) |
|
|
(53 |
) |
(LOSS) INCOME BEFORE INCOME TAXES |
|
(1,145 |
) |
|
|
24,034 |
|
|
|
(1,473 |
) |
|
|
23,360 |
|
(BENEFIT)
PROVISION FOR INCOME TAXES |
|
(463 |
) |
|
|
6,784 |
|
|
|
(577 |
) |
|
|
6,219 |
|
NET (LOSS)
INCOME |
$ |
(682 |
) |
|
$ |
17,250 |
|
|
$ |
(896 |
) |
|
$ |
17,141 |
|
Basic |
|
|
|
|
|
|
|
Net (loss) income per common share |
$ |
(0.02 |
) |
|
$ |
0.57 |
|
|
$ |
(0.03 |
) |
|
$ |
0.57 |
|
Diluted |
|
|
|
|
|
|
|
Net (loss) income per common share |
$ |
(0.02 |
) |
|
$ |
0.57 |
|
|
$ |
(0.03 |
) |
|
$ |
0.57 |
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
30,660 |
|
|
|
30,140 |
|
|
|
30,481 |
|
|
|
30,090 |
|
Diluted |
|
30,660 |
|
|
|
30,397 |
|
|
|
30,481 |
|
|
|
30,333 |
|
|
|
|
|
|
|
|
|
Other data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA (1) |
$ |
6,240 |
|
|
$ |
2,444 |
|
|
$ |
12,784 |
|
|
$ |
4,641 |
|
Depreciation
and amortization |
$ |
3,323 |
|
|
$ |
1,679 |
|
|
$ |
6,288 |
|
|
$ |
2,933 |
|
Number of
campuses |
|
22 |
|
|
|
22 |
|
|
|
22 |
|
|
|
22 |
|
Average
enrollment |
|
13,811 |
|
|
|
12,453 |
|
|
|
13,745 |
|
|
|
12,420 |
|
Net cash
provided by (used in) operating activities |
$ |
8,335 |
|
|
$ |
10,617 |
|
|
$ |
(6,599 |
) |
|
$ |
10,403 |
|
Net cash
(used in) provided by investing activities |
$ |
(11,041 |
) |
|
$ |
16,072 |
|
|
$ |
(3,007 |
) |
|
$ |
12,823 |
|
Net cash
used in financing activities |
$ |
(82 |
) |
|
$ |
(610 |
) |
|
$ |
(3,676 |
) |
|
$ |
(2,945 |
) |
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Data: |
June 30,
2024 |
|
(Unaudited) |
|
|
Cash and cash equivalents |
$ |
66,987 |
Current
assets |
|
119,391 |
Working
capital |
|
52,499 |
Total
assets |
|
366,379 |
Current
liabilities |
|
66,892 |
Total
stockholders' equity |
|
164,856 |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURESIn
addition to disclosing financial results that are determined in
accordance with U.S. generally accepted accounting principles
(“GAAP”), the Company believes it is useful to present non-GAAP
financial measures that exclude certain significant items as a
means to understand the performance of its business. EBITDA,
adjusted EBITDA, adjusted net income and total liquidity are
measures not recognized in financial statements presented in
accordance with GAAP.
- We define EBITDA as income (loss) before interest expense (net
of interest income), provision (benefit) for income taxes,
depreciation and amortization.
- We define adjusted EBITDA as EBITDA plus stock compensation
expense and adjustments for items not considered part of the
Company’s normal recurring operations.
- We define adjusted net income as net income plus adjustments
for items not considered part of the Company’s normal recurring
operations.
- We define total liquidity as the Company’s cash and cash
equivalents, short-term investments and restricted cash.
EBITDA, adjusted EBITDA, adjusted net income, and total
liquidity are presented because we believe they are useful
indicators of the Company’s performance and ability to make
strategic investments and meet capital expenditures and debt
service requirements. However, they are not intended to represent
cash flows from operations as defined by GAAP and should not be
used as an alternative to net income (loss) as indicators of
operating performance or cash flow as a measure of liquidity.
EBITDA, adjusted EBITDA, adjusted net income and total liquidity
are not necessarily comparable to similarly titled measures used by
other companies.
The following is a reconciliation of net income (loss) to
EBITDA, adjusted EBITDA, adjusted net income, and total
liquidity:
|
Three Months
Ended June 30, |
|
Six Months
Ended June 30, |
|
(Unaudited) |
|
(Unaudited) |
|
Consolidated Operations |
|
Consolidated Operations |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(682 |
) |
|
$ |
17,250 |
|
|
$ |
(896 |
) |
|
$ |
17,141 |
|
Interest expense (income), net |
|
29 |
|
|
|
(519 |
) |
|
|
(102 |
) |
|
|
(960 |
) |
(Benefit) provision for income taxes |
|
(463 |
) |
|
|
6,784 |
|
|
|
(577 |
) |
|
|
6,219 |
|
Depreciation and amortization |
|
3,323 |
|
|
|
1,679 |
|
|
|
6,288 |
|
|
|
2,933 |
|
EBITDA |
|
2,207 |
|
|
|
25,194 |
|
|
|
4,713 |
|
|
|
25,333 |
|
Stock compensation expense |
|
1,045 |
|
|
|
2,576 |
|
|
|
2,103 |
|
|
|
3,388 |
|
New campus and campus relocation costs |
|
2,623 |
|
|
|
410 |
|
|
|
5,425 |
|
|
|
670 |
|
Program expansions |
|
365 |
|
|
|
- |
|
|
|
454 |
|
|
|
- |
|
Gain on sale of Nashville, Tennessee |
|
- |
|
|
|
(30,939 |
) |
|
|
- |
|
|
|
(30,939 |
) |
Impairment of goodwill and long-lived assets |
|
- |
|
|
|
4,220 |
|
|
|
- |
|
|
|
4,220 |
|
Severance and other one-time costs |
|
- |
|
|
|
505 |
|
|
|
89 |
|
|
|
1,299 |
|
Transitional segment |
|
- |
|
|
|
478 |
|
|
|
- |
|
|
|
670 |
|
Adjusted
EBITDA |
$ |
6,240 |
|
|
$ |
2,444 |
|
|
$ |
12,784 |
|
|
$ |
4,641 |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30, |
|
(Unaudited) |
|
Campus Operations |
|
Transitional |
|
Corporate |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
9,065 |
|
$ |
4,169 |
|
|
$ |
- |
|
$ |
(482 |
) |
|
$ |
(9,747 |
) |
|
$ |
13,563 |
|
Interest expense (income), net |
|
565 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(536 |
) |
|
|
(519 |
) |
(Benefit) provision for income taxes |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(463 |
) |
|
|
6,784 |
|
Depreciation and amortization |
|
3,148 |
|
|
1,514 |
|
|
|
- |
|
|
4 |
|
|
|
175 |
|
|
|
161 |
|
EBITDA |
|
12,778 |
|
|
5,683 |
|
|
|
- |
|
|
(478 |
) |
|
|
(10,571 |
) |
|
|
19,989 |
|
Stock compensation expense |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
1,045 |
|
|
|
2,576 |
|
New campus and campus relocation costs |
|
2,623 |
|
|
410 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Program expansions |
|
365 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Gain on sale of Nashville, Tennessee |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(30,939 |
) |
Impairment of goodwill and long-lived assets |
|
- |
|
|
4,220 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Severance and other one-time costs |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
505 |
|
Transitional segment |
|
- |
|
|
- |
|
|
|
- |
|
|
478 |
|
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
15,766 |
|
$ |
10,313 |
|
|
$ |
- |
|
$ |
- |
|
|
$ |
(9,526 |
) |
|
$ |
(7,869 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30, |
|
(Unaudited) |
|
Campus Operations |
|
Transitional |
|
Corporate |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
20,888 |
|
$ |
14,278 |
|
|
$ |
- |
|
$ |
(678 |
) |
|
$ |
(21,784 |
) |
|
$ |
3,541 |
|
Interest expense (income), net |
|
1,066 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(1,168 |
) |
|
|
(960 |
) |
(Benefit) provision for income taxes |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(577 |
) |
|
|
6,219 |
|
Depreciation and amortization |
|
5,922 |
|
|
2,612 |
|
|
|
- |
|
|
8 |
|
|
|
366 |
|
|
|
313 |
|
EBITDA |
|
27,876 |
|
|
16,890 |
|
|
|
- |
|
|
(670 |
) |
|
|
(23,163 |
) |
|
|
9,113 |
|
Stock compensation expense |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
2,103 |
|
|
|
3,388 |
|
New campus and campus relocation costs |
|
5,425 |
|
|
670 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Program expansions |
|
454 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Severance and other one-time costs |
|
89 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
1,299 |
|
Gain on sale of Nashville, Tennessee |
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(30,939 |
) |
Impairment of goodwill and long-lived assets |
|
- |
|
|
4,220 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Transitional segment |
|
- |
|
|
- |
|
|
|
- |
|
|
670 |
|
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
33,844 |
|
$ |
21,780 |
|
|
$ |
- |
|
$ |
- |
|
|
$ |
(21,060 |
) |
|
$ |
(17,139 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
June
30, |
|
June
30, |
|
(Unaudited) |
|
(Unaudited) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net (loss) income |
$ |
(682 |
) |
|
$ |
17,250 |
|
|
$ |
(896 |
) |
|
$ |
17,141 |
|
|
|
|
|
|
|
|
|
Adjustments to net (loss) income: |
|
|
|
|
|
|
|
New campus
and campus relocation costs |
|
2,623 |
|
|
|
410 |
|
|
|
5,425 |
|
|
|
670 |
|
East Point,
Georgia depreciation |
|
371 |
|
|
|
- |
|
|
|
511 |
|
|
|
- |
|
Program
expansions |
|
365 |
|
|
|
- |
|
|
|
454 |
|
|
|
- |
|
Gain on sale
of Nashville, Tennessee |
|
- |
|
|
|
(30,939 |
) |
|
|
- |
|
|
|
(30,939 |
) |
Impairment
of goodwill and long-lived assets |
|
- |
|
|
|
4,220 |
|
|
|
- |
|
|
|
4,220 |
|
Severance
and other one time costs |
|
- |
|
|
|
1,098 |
|
|
|
89 |
|
|
|
2,071 |
|
Performance
based catch-up stock compensation |
|
- |
|
|
|
1,400 |
|
|
|
- |
|
|
|
1,400 |
|
Transitional
segment |
|
- |
|
|
|
478 |
|
|
|
- |
|
|
|
670 |
|
Total
non-recurring adjustments |
|
3,359 |
|
|
|
(23,333 |
) |
|
|
6,479 |
|
|
|
(21,908 |
) |
Income tax
effect |
|
(1,008 |
) |
|
|
6,533 |
|
|
|
(1,944 |
) |
|
|
6,134 |
|
Adjusted net
income, non-GAAP |
$ |
1,669 |
|
|
$ |
450 |
|
|
$ |
3,639 |
|
|
$ |
1,367 |
|
|
|
|
|
|
|
|
|
|
As
of |
|
June 30, 2024 |
Cash and cash equivalents |
$ |
66,987 |
Credit
facility |
|
40,000 |
Total
Liquidity |
$ |
106,987 |
|
|
|
Three Months Ended June 30, |
|
2024 |
|
2023 |
|
% Change |
Revenue: |
|
|
|
|
|
Campus Operations |
$ |
102,914 |
|
|
$ |
88,213 |
|
|
16.7 |
% |
Transitional |
|
- |
|
|
|
433 |
|
|
-100.0 |
% |
Total |
$ |
102,914 |
|
|
$ |
88,646 |
|
|
16.1 |
% |
|
|
|
|
|
|
Operating Income (loss): |
|
|
|
|
|
Campus
Operations |
$ |
9,630 |
|
|
$ |
4,169 |
|
|
131.0 |
% |
Transitional |
|
- |
|
|
|
(482 |
) |
|
-100.0 |
% |
Corporate |
|
(10,746 |
) |
|
|
19,828 |
|
|
-154.2 |
% |
Total |
$ |
(1,116 |
) |
|
$ |
23,515 |
|
|
-104.7 |
% |
|
|
|
|
|
|
Starts: |
|
|
|
|
|
Campus
Operations |
|
4,953 |
|
|
|
4,411 |
|
|
12.3 |
% |
Total |
|
4,953 |
|
|
|
4,411 |
|
|
12.3 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Campus
Operations |
|
13,811 |
|
|
|
12,369 |
|
|
11.7 |
% |
Transitional |
|
- |
|
|
|
84 |
|
|
-100.0 |
% |
Total |
|
13,811 |
|
|
|
12,453 |
|
|
10.9 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Campus
Operations |
|
14,481 |
|
|
|
12,959 |
|
|
11.7 |
% |
Transitional |
|
- |
|
|
|
45 |
|
|
-100.0 |
% |
Total |
|
14,481 |
|
|
|
13,004 |
|
|
11.4 |
% |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
% Change |
Revenue: |
|
|
|
|
|
Campus Operations |
$ |
206,281 |
|
|
$ |
174,565 |
|
|
18.2 |
% |
Transitional |
|
- |
|
|
|
1,364 |
|
|
-100.0 |
% |
Total |
$ |
206,281 |
|
|
$ |
175,929 |
|
|
17.3 |
% |
|
|
|
|
|
|
Operating Income (loss): |
|
|
|
|
|
Campus
Operations |
$ |
21,954 |
|
|
$ |
14,278 |
|
|
53.8 |
% |
Transitional |
|
- |
|
|
|
(679 |
) |
|
-100.0 |
% |
Corporate |
|
(23,529 |
) |
|
|
8,801 |
|
|
-367.3 |
% |
Total |
$ |
(1,575 |
) |
|
$ |
22,400 |
|
|
-107.0 |
% |
|
|
|
|
|
|
Starts: |
|
|
|
|
|
Campus
Operations |
|
8,920 |
|
|
|
7,851 |
|
|
13.6 |
% |
Total |
|
8,920 |
|
|
|
7,851 |
|
|
13.6 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Campus
Operations |
|
13,745 |
|
|
|
12,297 |
|
|
11.8 |
% |
Transitional |
|
- |
|
|
|
123 |
|
|
-100.0 |
% |
Total |
|
13,745 |
|
|
|
12,420 |
|
|
10.7 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Campus
Operations |
|
14,481 |
|
|
|
12,959 |
|
|
11.7 |
% |
Transitional |
|
- |
|
|
|
45 |
|
|
-100.0 |
% |
Total |
|
14,481 |
|
|
|
13,004 |
|
|
11.4 |
% |
|
|
|
|
|
|
Information included in the table below provides student starts
and population under the Campus Operations Segment with a breakdown
by Transportation and Skilled Trade programs and Healthcare and
Other Professions programs. This information is not comparable to
the Company’s prior period segment reporting, which was performed
on a campus basis rather than a program basis.
|
|
|
|
|
|
Population
by Program (Campus Operations Segment): |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
2024 |
|
2023 |
|
% Change |
Starts: |
|
|
|
|
|
Transportation and Skilled Trades |
3,648 |
|
3,017 |
|
20.9 |
% |
Healthcare
and Other Professions |
1,305 |
|
1,394 |
|
-6.4 |
% |
Total |
4,953 |
|
4,411 |
|
12.3 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Transportation and Skilled Trades |
9,741 |
|
8,434 |
|
15.5 |
% |
Healthcare
and Other Professions |
4,070 |
|
4,019 |
|
1.3 |
% |
Total |
13,811 |
|
12,453 |
|
10.9 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Transportation and Skilled Trades |
10,482 |
|
9,024 |
|
16.2 |
% |
Healthcare
and Other Professions |
3,999 |
|
3,980 |
|
0.5 |
% |
Total |
14,481 |
|
13,004 |
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Population
by Program (Campus Operations Segment): |
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
% Change |
Starts: |
|
|
|
|
|
Transportation and Skilled Trades |
6,330 |
|
5,280 |
|
19.9 |
% |
Healthcare
and Other Professions |
2,590 |
|
2,571 |
|
0.7 |
% |
Total |
8,920 |
|
7,851 |
|
13.6 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Transportation and Skilled Trades |
9,642 |
|
8,357 |
|
15.4 |
% |
Healthcare
and Other Professions |
4,103 |
|
4,063 |
|
1.0 |
% |
Total |
13,745 |
|
12,420 |
|
10.7 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Transportation and Skilled Trades |
10,482 |
|
9,024 |
|
16.2 |
% |
Healthcare
and Other Professions |
3,999 |
|
3,980 |
|
0.5 |
% |
Total |
14,481 |
|
13,004 |
|
11.4 |
% |
|
|
|
|
|
|
The reconciliations provided below represent
management’s projections of various components included in our
outlook for the full year 2024. These calculations are
for illustrative purposes and will be reviewed as the year
progresses to reflect actual results, our outlook and continued
relevance of specific items. Any revisions or modifications, if
necessary, will be disclosed in future 2024 quarterly results
announcements. Adjusted EBITDA and adjusted net income have been
reconciled to the midpoint of our guidance.
Reconciliation of Net Income to Adjusted EBITDA and
Adjusted Net Income - 2024 Guidance |
|
(Reconciled
to the Mid-Point of 2024 Guidance) |
|
|
|
|
|
|
|
Adjusted |
|
|
EBITDA |
|
Net Income |
Net Income |
$ |
8,000 |
|
$ |
8,000 |
|
Interest expense, net |
|
600 |
|
|
- |
|
Provision for taxes |
|
3,600 |
|
|
- |
|
Depreciation and amortization |
|
12,500 |
|
|
- |
|
Depreciation1 |
|
1,300 |
|
|
1,300 |
|
EBITDA |
|
26,000 |
|
|
- |
|
New campus and campus relocation costs2 |
|
7,100 |
|
|
7,100 |
|
Program expansions |
|
2,600 |
|
|
2,600 |
|
Stock compensation expense |
|
4,800 |
|
|
- |
|
Tax Effect |
|
- |
|
|
(3,500 |
) |
Total |
$ |
40,500 |
|
$ |
15,500 |
|
|
|
|
|
|
|
2024
Guidance Range |
$39,000 -
$42,000 |
|
$14,000 -
$17,000 |
|
|
|
|
|
1 |
Depreciation expense relates to the new East Point Georgia
campus |
|
|
|
|
|
2 |
New campus and campus relocation costs relate to the following
locations: |
|
|
|
East Point, Georgia |
|
|
|
|
Nashville, Tennessee |
|
|
|
|
Levittown, Pennsylvania |
|
|
|
|
Houston, Texas |
|
|
|
|
|
|
|
|
LINCOLN EDUCATIONAL SERVICES
CORPORATION Brian
Meyers, CFO973-736-9340
EVC GROUP LLCInvestor Relations: Michael
Polyviou, mpolyviou@evcgroup.com, 732-933-2755Media Relations: Tom
Gibson, 201-476-0322
Lincoln Educational Serv... (NASDAQ:LINC)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
Lincoln Educational Serv... (NASDAQ:LINC)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024