Lincoln Educational Services Reports Double Digit Growth in Revenue and Student Starts for the Third Quarter 2024 and Raises 2024 Outlook
Lincoln Educational Services reported strong Q3 2024 results with revenue increasing 15.0% to $114.4 million. Student starts grew 21.1%, with quarter-end student population rising 13.3%. The company achieved net income of $4.0 million and adjusted EBITDA of $10.2 million. The new East Point, Georgia campus outperformed expectations, enrolling approximately 600 students and generating $5.0 million in revenue. Based on strong performance, Lincoln raised its 2024 guidance, projecting revenue of $430-$435 million and adjusted EBITDA of $41-$43 million. The company maintains strong liquidity exceeding $90 million with no debt outstanding.
Lincoln Educational Services ha riportato risultati forti per il terzo trimestre del 2024, con un aumento del fatturato del 15,0% a 114,4 milioni di dollari. Gli ingressi di studenti sono aumentati del 21,1%, con la popolazione studentesca alla fine del trimestre in crescita del 13,3%. L'azienda ha registrato un utile netto di 4,0 milioni di dollari e un EBITDA rettificato di 10,2 milioni di dollari. Il nuovo campus di East Point, in Georgia, ha superato le aspettative, iscrivendo circa 600 studenti e generando 5,0 milioni di dollari di fatturato. Sulla base delle forti performance, Lincoln ha alzato le previsioni per il 2024, prevedendo un fatturato di 430-435 milioni di dollari e un EBITDA rettificato di 41-43 milioni di dollari. L'azienda mantiene una solida liquidità superiore a 90 milioni di dollari senza debiti in sospeso.
Lincoln Educational Services reportó resultados sólidos para el tercer trimestre de 2024, con un incremento del 15,0% en los ingresos, alcanzando $114.4 millones. Las inscripciones de estudiantes crecieron un 21,1%, y la población estudiantil al final del trimestre aumentó un 13,3%. La empresa logró un ingreso neto de $4.0 millones y un EBITDA ajustado de $10.2 millones. El nuevo campus en East Point, Georgia, superó las expectativas, inscribiendo aproximadamente a 600 estudiantes y generando $5.0 millones en ingresos. Basándose en un fuerte desempeño, Lincoln elevó sus proyecciones para 2024, proyectando ingresos de $430-$435 millones y un EBITDA ajustado de $41-$43 millones. La empresa mantiene una liquidez sólida que supera los $90 millones sin deuda pendiente.
링컨 교육 서비스는 2024년 3분기 강력한 실적을 발표했으며, 수익이 15.0% 증가하여 1억 1,440만 달러에 달했습니다. 학생 신규 등록은 21.1% 증가했으며, 분기 말 학생 수는 13.3% 증가했습니다. 회사는 400만 달러의 순이익과 1,020만 달러의 조정 EBITDA를 달성했습니다. 조지아주 이스트 포인트에 새로 개설된 캠퍼스는 예상치를 초과하여 약 600명의 학생을 등록시키고 500만 달러의 수익을 기록했습니다. 강력한 성과를 바탕으로 링컨은 2024년 영업 전망을 상향 조정하여 4억 3천만 ~ 4억 3천 5백만 달러의 수익과 4천 1백만 ~ 4천 3백만 달러의 조정 EBITDA를 예측했습니다. 회사는 9천만 달러가 넘는 높은 유동성을 유지하고 있으며, 추가 부채는 없습니다.
Lincoln Educational Services a annoncé de bons résultats pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 15,0% à 114,4 millions de dollars. Les inscriptions d'étudiants ont augmenté de 21,1%, avec une population d'étudiants à la fin du trimestre en hausse de 13,3%. L'entreprise a réalisé un bénéfice net de 4,0 millions de dollars et un EBITDA ajusté de 10,2 millions de dollars. Le nouveau campus d'East Point, en Géorgie, a dépassé les attentes, inscrivant environ 600 étudiants et générant 5,0 millions de dollars de revenus. Sur la base de ces résultats solides, Lincoln a relevé ses prévisions pour 2024, en projetant un chiffre d'affaires de 430 à 435 millions de dollars et un EBITDA ajusté de 41 à 43 millions de dollars. L'entreprise maintient une solide liquidité dépassant les 90 millions de dollars, sans dettes en cours.
Lincoln Educational Services hat für das 3. Quartal 2024 starke Ergebnisse gemeldet, mit einem Umsatzanstieg von 15,0% auf 114,4 Millionen Dollar. Die Studenteneinschreibungen stiegen um 21,1%, und die Schülerzahl zum Quartalsende erhöhte sich um 13,3%. Das Unternehmen erzielte ein Nettoeinkommen von 4,0 Millionen Dollar und ein bereinigtes EBITDA von 10,2 Millionen Dollar. Der neue Campus in East Point, Georgia, übertraf die Erwartungen, indem er etwa 600 Studierende einwies und 5,0 Millionen Dollar Umsatz generierte. Basierend auf den starken Leistungen hob Lincoln seine Prognose für 2024 an und rechnet mit einem Umsatz von 430-435 Millionen Dollar und einem bereinigten EBITDA von 41-43 Millionen Dollar. Das Unternehmen hält eine starke Liquidität von über 90 Millionen Dollar und hat keine ausstehenden Schulden.
- Revenue grew 15.0% to $114.4 million in Q3 2024
- Student starts increased 21.1% with 13.3% rise in student population
- Net income reached $4.0 million with adjusted EBITDA of $10.2 million
- Strong liquidity position of over $90 million with zero debt
- East Point campus generated $5.0 million revenue with positive EBITDA
- Raised full-year 2024 guidance for revenue and adjusted EBITDA
- Educational services expenses increased 11.4% to $48.0 million
- Selling, general and administrative expenses rose 16.3% to $63.3 million
- Increased marketing investments impacting expenses
Insights
Strong financial performance showcased with
The raised 2024 guidance signals management's confidence, with revenue now projected at
The implementation of Lincoln 10.0 hybrid platform marks a significant operational advancement, projected to serve
The
Conference Call Today at 10 a.m. Eastern Standard Time
PARSIPPANY, N.J., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the third quarter ended September 30, 2024, as well as recent business developments.
Third Quarter 2024 Financial Highlights & Recent Operating Developments*
- Revenue increased by
15.0% to$114.4 million - Student starts grew by
21.1% ; quarter-end student population rose by13.3% - Net income of
$4.0 million and adjusted EBITDA of$10.2 million - Total liquidity in excess of
$90 million , no debt outstanding - Recently opened East Point, Georgia campus outperforming first-year operating plan
- Raised 2024 financial guidance
*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.
“Lincoln’s third quarter performance illustrates how well our team is serving America’s growing interest in educational alternatives to a traditional four-year college degree while helping employers fill their workforce skills gap,” said Scott Shaw, President & CEO. “We grew same-campus student starts
“Our hybrid teaching platform, Lincoln 10.0 continues to improve operating efficiencies while benefiting student experience and outcomes. By the end of the year, Lincoln 10.0 will be used by approximately
“Our goal of creating an additional ten replication programs at existing campuses is still on track to be completed by the first quarter of 2025. During the third quarter, three such programs started and we are on schedule to roll-out an additional three by year-end. We continue to expect each of these programs to generate an additional
“Corporate partnerships continue to be a key contributor to our growth and during the quarter we announced a partnership with Hyundai Motor America and Genesis Motor America offering their training at no added cost to our students at all of our automotive campuses nationwide. In addition, we signed extensions with several corporate partners that in some cases extend our working relationship for an additional five years. And, as corporate America’s interest in Lincoln and our capabilities builds, our discussions with potential new partners are quite robust.“
“Our recent financial performance, as well as the strong start to our fourth quarter, lead us to increase our guidance for the remainder of the year. Demand for Lincoln’s programs, our impressive graduation and placement rates, our new campus development strategy, and improving efficiencies combine to position Lincoln to achieve our stated longer-term objectives of approximately
2024 THIRD QUARTER FINANCIAL RESULTS
(Quarter ended September 30, 2024, compared to September 30, 2023)
- Revenue grew by
$14.8 million , or14.8% to$114.4 million . The increase was primarily due to a10.6% increase in average student population, driven by four consecutive quarters of double-digit start growth, with the most recent third quarter growing by21.1% . Contributing to the nearly$15.0 million increase in revenue was the recently opened East Point, Georgia campus, which generated$3.4 million in revenue in the current quarter. - Educational services and facilities expense increased
$4.9 million , or11.4% to$48.0 million . The increase over the prior year was primarily driven by costs associated with new programs, new campuses and campus relocations. In addition, expenses were up due to the larger student population and depreciation expense driven by expanded capital investments. However, as a percentage of revenue, educational services and facilities costs decreased from the prior year, demonstrating increased operating efficiency. - Selling, general and administrative expense increased
$8.8 million , or16.3% to$63.3 million . The increase over the prior year was primarily driven by costs associated with new programs, new campuses and campus relocations. Remaining expense increases were driven by several factors including costs associated with a larger student population and increased marketing investments, which helped drive the increase in student starts. While marketing investments were up in the quarter, the costs to obtain new students have decreased, demonstrating increased efficiencies per dollar invested.
RECENT BUSINESS DEVELOPMENTS
East Point, Georgia Campus. The recently opened East Point, Georgia campus has made a strong debut since the initial launch of classes in March 2024. Through September 30, 2024, the campus has enrolled approximately 600 students and generated approximately
During the quarter ended September 30, 2024, EBITDA results were positive and we expect to continue to be positive in the fourth quarter exceeding our internal plan for 2024.
THIRD QUARTER SEGMENT RESULTS
Campus Operations Segment
Revenue increased
Transitional Segment
The 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
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company.
Corporate and other expense were
NINE MONTHS FINANCIAL RESULTS
(Period ended September 30, 2024, compared to September 30, 2023)
- Total revenue increased
$45.1 million , or16.4% , to$320.6 million , compared to$275.5 million . - Campus Operations Segment revenue increased
$46.6 million , or17.0% to$320.7 million , compared to$274.1 million . - Transitional Segment revenue decreased
$1.5 million , or100% to zero, compared to$1.5 million .
FULL YEAR 2024 OUTLOOK
Based on third quarter operating and financial results, as well as the outlook for the remainder of the year, the Company is raising financial guidance for revenue, adjusted EBITDA, adjusted net income and student starts. Additionally, the Company has increased the low-end range for capital expenditures. Updated guidance for 2024 is outlined below:
| 2024 Guidance | |||||||||||
| (Amounts in millions except for student starts) | Low | High | |||||||||
| Revenue | $ | 430 | - | $ | 435 | ||||||
| Adjusted EBITDA | $ | 41 | - | $ | 43 | 1 | |||||
| Adjusted net income | $ | 16 | - | $ | 18 | 1 | |||||
| Capital expenditures | $ | 50 | - | $ | 55 | ||||||
| Student Starts | - | ||||||||||
| 1The 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. | |||||||||||
For reference, the Company’s prior 2024 guidance was revenue of
CONFERENCE CALL INFO
Lincoln 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: Q3 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. 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 & Sciences and associated brand names. For more information, please go to www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements 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 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| REVENUE | $ | 114,410 | $ | 99,618 | $ | 320,691 | $ | 275,548 | ||||||||
| COSTS AND EXPENSES: | ||||||||||||||||
| Educational services and facilities | 48,055 | 43,129 | 136,639 | 121,251 | ||||||||||||
| Selling, general and administrative | 63,339 | 54,485 | 181,697 | 156,603 | ||||||||||||
| (Gain) loss on sale of assets | (12 | ) | 8 | 901 | (30,923 | ) | ||||||||||
| Gain on insuarnce proceeds | (2,794 | ) | - | (2,794 | ) | - | ||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | ||||||||||||
| Total costs & expenses | 108,588 | 97,622 | 316,443 | 251,151 | ||||||||||||
| OPERATING INCOME | 5,822 | 1,996 | 4,248 | 24,397 | ||||||||||||
| OTHER: | ||||||||||||||||
| Interest income | 464 | 878 | 1,800 | 1,891 | ||||||||||||
| Interest expense | (659 | ) | (21 | ) | (1,893 | ) | (74 | ) | ||||||||
| INCOME BEFORE INCOME TAXES | 5,627 | 2,853 | 4,155 | 26,214 | ||||||||||||
| PROVISION FOR INCOME TAXES | 1,674 | 789 | 1,098 | 7,009 | ||||||||||||
| NET INCOME | $ | 3,953 | $ | 2,064 | $ | 3,057 | $ | 19,205 | ||||||||
| Basic | ||||||||||||||||
| Net income per common share | $ | 0.13 | $ | 0.07 | $ | 0.10 | $ | 0.64 | ||||||||
| Diluted | ||||||||||||||||
| Net income per common share | $ | 0.13 | $ | 0.07 | $ | 0.10 | $ | 0.63 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 30,682 | 30,164 | 30,547 | 30,115 | ||||||||||||
| Diluted | 31,042 | 30,698 | 30,806 | 30,455 | ||||||||||||
| Other data: | ||||||||||||||||
| Adjusted EBITDA (1) | $ | 10,236 | $ | 6,140 | $ | 23,085 | $ | 10,775 | ||||||||
| Depreciation and amortization | $ | 3,229 | $ | 1,723 | $ | 9,516 | $ | 4,656 | ||||||||
| Number of campuses | 22 | 22 | 22 | 22 | ||||||||||||
| Average enrollment | 14,309 | 12,942 | 13,933 | 12,594 | ||||||||||||
| Net cash provided by (used in) operating activities | $ | 5,606 | $ | (6,791 | ) | $ | (993 | ) | $ | 3,612 | ||||||
| Net cash used in investing activities | $ | (19,192 | ) | $ | (17,784 | ) | $ | (22,199 | ) | $ | (4,961 | ) | ||||
| Net cash provided by (used in) financing activities | $ | 561 | $ | - | $ | (3,115 | ) | $ | (2,945 | ) | ||||||
| Selected Consolidated Balance Sheet Data: | September 30, 2024 | ||
| (Unaudited) | |||
| Cash and cash equivalents | $ | 53,962 | |
| Current assets | 115,438 | ||
| Working capital | 41,983 | ||
| Total assets | 404,022 | ||
| Current liabilities | 73,455 | ||
| Total stockholders' equity | 169,963 | ||
(1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Consolidated Operations | Consolidated Operations | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net income | $ | 3,953 | $ | 2,064 | $ | 3,057 | $ | 19,205 | |||||||||
| Interest expense (income), net | 195 | (857 | ) | 93 | (1,817 | ) | |||||||||||
| Provision for income taxes | 1,674 | 789 | 1,098 | 7,009 | |||||||||||||
| Depreciation and amortization | 3,229 | 1,723 | 9,516 | 4,656 | |||||||||||||
| EBITDA | 9,051 | 3,719 | 13,764 | 29,053 | |||||||||||||
| Stock compensation expense | 1,250 | 662 | 3,354 | 4,050 | |||||||||||||
| New campus and campus relocation costs | 1,398 | 917 | 6,823 | 1,581 | |||||||||||||
| Severance and other one-time costs | 759 | 100 | 1,066 | 1,399 | |||||||||||||
| Program expansions | 572 | - | 872 | - | |||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | (30,939 | ) | ||||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | |||||||||||||
| Transitional segment | - | 742 | - | 1,411 | |||||||||||||
| Gain on insurance proceeds | (2,794 | ) | - | (2,794 | ) | - | |||||||||||
| Adjusted EBITDA | $ | 10,236 | $ | 6,140 | $ | 23,085 | $ | 10,775 | |||||||||
| Three Months Ended September 30, | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Campus Operations | Transitional | Corporate | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income (loss) | $ | 14,297 | $ | 11,890 | $ | - | $ | (745 | ) | $ | (10,344 | ) | $ | (9,081 | ) | ||||||
| Interest expense (income), net | 568 | - | - | - | (373 | ) | (857 | ) | |||||||||||||
| Provision for income taxes | - | - | - | - | 1,674 | 789 | |||||||||||||||
| Depreciation and amortization | 3,060 | 1,552 | - | 3 | 169 | 168 | |||||||||||||||
| EBITDA | 17,925 | 13,442 | - | (742 | ) | (8,874 | ) | (8,981 | ) | ||||||||||||
| Stock compensation expense | - | - | - | - | 1,250 | 662 | |||||||||||||||
| Gain on insurance proceeds | - | - | - | - | (2,794 | ) | - | ||||||||||||||
| New campus and campus relocation costs | 1,398 | 917 | - | - | - | - | |||||||||||||||
| Program expansions | 572 | - | - | - | - | - | |||||||||||||||
| Severance and other one-time costs | - | - | - | - | 759 | 100 | |||||||||||||||
| Transitional segment | - | - | - | 742 | - | - | |||||||||||||||
| Adjusted EBITDA | $ | 19,895 | $ | 14,359 | $ | - | $ | - | $ | (9,659 | ) | $ | (8,219 | ) | |||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Campus Operations | Transitional | Corporate | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Net income (loss) | $ | 35,186 | $ | 26,167 | $ | - | $ | (1,423 | ) | $ | (32,129 | ) | $ | (5,539 | ) | |||||||
| Interest expense (income), net | 1,634 | - | - | - | (1,541 | ) | (1,817 | ) | ||||||||||||||
| Provision for income taxes | - | - | - | - | 1,098 | 7,009 | ||||||||||||||||
| Depreciation and amortization | 8,981 | 4,165 | - | 11 | 535 | 480 | ||||||||||||||||
| EBITDA | 45,801 | 30,332 | - | (1,412 | ) | (32,037 | ) | 133 | ||||||||||||||
| Stock compensation expense | - | - | - | - | 3,354 | 4,050 | ||||||||||||||||
| Gain on insurance proceeds | - | - | - | - | (2,794 | ) | - | |||||||||||||||
| New campus and campus relocation costs | 6,823 | 1,581 | - | - | - | - | ||||||||||||||||
| Program expansions | 872 | - | - | - | - | - | ||||||||||||||||
| Severance and other one-time costs | - | - | - | - | 1,066 | 1,399 | ||||||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | - | - | (30,939 | ) | |||||||||||||||
| Impairment of goodwill and long-lived assets | - | 4,220 | - | - | - | - | ||||||||||||||||
| Transitional segment | - | - | - | 1,411 | - | - | ||||||||||||||||
| Adjusted EBITDA | $ | 53,496 | $ | 36,133 | $ | - | $ | (1 | ) | $ | (30,411 | ) | $ | (25,357 | ) | |||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 3,953 | $ | 2,064 | $ | 3,057 | $ | 19,205 | ||||||||
| Adjustments to net income: | ||||||||||||||||
| New campus and campus relocation costs | 1,398 | 917 | 7,334 | 1,581 | ||||||||||||
| Program expansions | 572 | - | 872 | - | ||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | (30,939 | ) | |||||||||||
| Gain on insurance proceeds | (2,794 | ) | - | (2,794 | ) | - | ||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | ||||||||||||
| Severance and other one time costs | 1,019 | 178 | 1,326 | 2,249 | ||||||||||||
| Performance based catch-up stock compensation | - | - | - | 1,400 | ||||||||||||
| Transitional segment | - | 742 | - | 1,411 | ||||||||||||
| Total non-recurring adjustments | 195 | 1,837 | 6,738 | (20,078 | ) | |||||||||||
| Income tax effect | (57 | ) | (514 | ) | (1,961 | ) | 5,622 | |||||||||
| Adjusted net income, non-GAAP | $ | 4,091 | $ | 3,387 | $ | 7,834 | $ | 4,749 | ||||||||
| As of | ||
| September 30, 2024 | ||
| Cash and cash equivalents | $ | 53,962 |
| Credit facility | 40,000 | |
| Total Liquidity | $ | 93,962 |
| Three Months Ended September 30, | |||||||||||
| 2024 | 2023 | % Change | |||||||||
| Revenue: | |||||||||||
| Campus Operations | $ | 114,410 | $ | 99,527 | 15.0 | % | |||||
| Transitional | - | 91 | -100.0 | % | |||||||
| Total | $ | 114,410 | $ | 99,618 | 14.8 | % | |||||
| Operating Income (loss): | |||||||||||
| Campus Operations | $ | 14,865 | $ | 11,889 | 25.0 | % | |||||
| Transitional | - | (745 | ) | -100.0 | % | ||||||
| Corporate | (9,043 | ) | (9,148 | ) | 1.1 | % | |||||
| Total | $ | 5,822 | $ | 1,996 | 191.7 | % | |||||
| Starts: | |||||||||||
| Campus Operations | 6,243 | 5,157 | 21.1 | % | |||||||
| Total | 6,243 | 5,157 | 21.1 | % | |||||||
| Average Population: | |||||||||||
| Campus Operations | 14,309 | 12,923 | 10.7 | % | |||||||
| Transitional | - | 19 | -100.0 | % | |||||||
| Total | 14,309 | 12,942 | 10.6 | % | |||||||
| End of Period Population: | |||||||||||
| Campus Operations | 15,887 | 14,027 | 13.3 | % | |||||||
| Transitional | - | 4 | -100.0 | % | |||||||
| Total | 15,887 | 14,031 | 13.2 | % | |||||||
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | % Change | |||||||||
| Revenue: | |||||||||||
| Campus Operations | $ | 320,691 | $ | 274,093 | 17.0 | % | |||||
| Transitional | - | 1,455 | -100.0 | % | |||||||
| Total | $ | 320,691 | $ | 275,548 | 16.4 | % | |||||
| Operating Income (loss): | |||||||||||
| Campus Operations | $ | 36,819 | $ | 26,167 | 40.7 | % | |||||
| Transitional | - | (1,423 | ) | -100.0 | % | ||||||
| Corporate | (32,571 | ) | (347 | ) | -9286.5 | % | |||||
| Total | $ | 4,248 | $ | 24,397 | -82.6 | % | |||||
| Starts: | |||||||||||
| Campus Operations | 15,163 | 13,008 | 16.6 | % | |||||||
| Total | 15,163 | 13,008 | 16.6 | % | |||||||
| Average Population: | |||||||||||
| Campus Operations | 13,933 | 12,506 | 11.4 | % | |||||||
| Transitional | - | 88 | -100.0 | % | |||||||
| Total | 13,933 | 12,594 | 10.6 | % | |||||||
| End of Period Population: | |||||||||||
| Campus Operations | 15,887 | 14,027 | 13.3 | % | |||||||
| Transitional | - | 4 | -100.0 | % | |||||||
| Total | 15,887 | 14,031 | 13.2 | % | |||||||
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.
| Population by Program (Campus Operations Segment): | |||||||
| Three Months Ended September 30, | |||||||
| 2024 | 2023 | % Change | |||||
| Starts: | |||||||
| Transportation and Skilled Trades | 4,700 | 3,786 | 24.1 | % | |||
| Healthcare and Other Professions | 1,543 | 1,371 | 12.5 | % | |||
| Total | 6,243 | 5,157 | 21.1 | % | |||
| Average Population: | |||||||
| Transportation and Skilled Trades | 10,449 | 9,029 | 15.7 | % | |||
| Healthcare and Other Professions | 3,860 | 3,894 | -0.9 | % | |||
| Total | 14,309 | 12,923 | 10.7 | % | |||
| End of Period Population: | |||||||
| Transportation and Skilled Trades | 11,672 | 9,842 | 18.6 | % | |||
| Healthcare and Other Professions | 4,215 | 4,185 | 0.7 | % | |||
| Total | 15,887 | 14,027 | 13.3 | % | |||
| Population by Program (Campus Operations Segment): | |||||||
| Nine Months Ended September 30, | |||||||
| 2024 | 2023 | % Change | |||||
| Starts: | |||||||
| Transportation and Skilled Trades | 11,030 | 9,064 | 21.7 | % | |||
| Healthcare and Other Professions | 4,133 | 3,944 | 4.8 | % | |||
| Total | 15,163 | 13,008 | 16.6 | % | |||
| Average Population: | |||||||
| Transportation and Skilled Trades | 9,911 | 8,581 | 15.5 | % | |||
| Healthcare and Other Professions | 4,022 | 3,925 | 2.5 | % | |||
| Total | 13,933 | 12,506 | 11.4 | % | |||
| End of Period Population: | |||||||
| Transportation and Skilled Trades | 11,672 | 9,842 | 18.6 | % | |||
| Healthcare and Other Professions | 4,215 | 4,185 | 0.7 | % | |||
| Total | 15,887 | 14,027 | 13.3 | % | |||
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 | $ | 10,100 | $ | 10,100 | ||||
| Interest expense, net | 600 | - | ||||||
| Provision for taxes | 4,200 | - | ||||||
| Depreciation and amortization1 | 13,400 | 511 | ||||||
| EBITDA | 28,300 | - | ||||||
| New campus and campus relocation costs2 | 8,850 | 8,850 | ||||||
| Program expansions | 1,500 | 1,500 | ||||||
| Other one time items | 1,350 | 1,350 | ||||||
| Gain on insurance proceeds | (2,800 | ) | (2,800 | ) | ||||
| Stock compensation expense | 4,800 | 500 | ||||||
| Tax Effect | - | (3,011 | ) | |||||
| Total | $ | 42,000 | 17,000 | |||||
| 2024 Guidance Range | ||||||||
| 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 (relates to Q1 and Q2 of 2024) | ||||||||
| Nashville, Tennessee | ||||||||
| Levittown, Pennsylvania | ||||||||
| Houston, Texas | ||||||||
| New campus adjustment includes pre-opening costs plus EBITDA losses incurred within the first four quarter after opening. | ||||||||
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP LLC
Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2755
Media Relations: Tom Gibson, 201-476-0322
FAQ
What was Lincoln Educational Services (LINC) revenue growth in Q3 2024?
How much did LINC student starts grow in Q3 2024?
What is LINC's updated revenue guidance for 2024?
How did LINC's East Point, Georgia campus perform in Q3 2024?
