Lincoln Educational Services Reports Strong Results for Fourth Quarter and Full Year 2024; Provides Outlook for Continued Strong Growth in 2025
Lincoln Educational Services (NASDAQ: LINC) reported strong Q4 and full-year 2024 results, with significant growth across key metrics. Q4 revenue increased 16.4% to $119.4 million, with student starts up 9.6% and quarter-end population rising 14.1%. The company achieved net income of $6.8 million and adjusted EBITDA of $19.2 million.
Full-year 2024 performance showed revenue growth of 16.4% to $440.1 million, with student starts up 15.2%. The company maintained strong financial position with nearly $100 million in total liquidity and no debt. Recent developments include a new campus lease in Hicksville, NY, and completion of the Summerlin, Las Vegas campus sale.
Looking ahead, Lincoln has established growth-focused guidance for 2025, targeting approximately $550 million in revenue and $90 million in adjusted EBITDA by 2027. The company is expanding through new campus developments in Nashville, Levittown, Houston, and Hicksville, while implementing its hybrid teaching platform, Lincoln 10.0.
Lincoln Educational Services (NASDAQ: LINC) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con una crescita significativa in tutti i principali indicatori. I ricavi del quarto trimestre sono aumentati del 16,4% a 119,4 milioni di dollari, con un incremento del 9,6% negli avvii degli studenti e una popolazione a fine trimestre in crescita del 14,1%. L'azienda ha raggiunto un utile netto di 6,8 milioni di dollari e un EBITDA rettificato di 19,2 milioni di dollari.
Le prestazioni dell'intero anno 2024 hanno mostrato una crescita dei ricavi del 16,4% a 440,1 milioni di dollari, con un aumento del 15,2% negli avvii degli studenti. L'azienda ha mantenuto una posizione finanziaria solida con quasi 100 milioni di dollari di liquidità totale e senza debiti. Gli sviluppi recenti includono un nuovo contratto di locazione per un campus a Hicksville, NY, e il completamento della vendita del campus di Summerlin, Las Vegas.
Guardando al futuro, Lincoln ha stabilito una guida focalizzata sulla crescita per il 2025, puntando a circa 550 milioni di dollari di ricavi e 90 milioni di dollari di EBITDA rettificato entro il 2027. L'azienda si sta espandendo attraverso nuovi sviluppi di campus a Nashville, Levittown, Houston e Hicksville, mentre implementa la sua piattaforma di insegnamento ibrido, Lincoln 10.0.
Lincoln Educational Services (NASDAQ: LINC) reportó resultados sólidos para el cuarto trimestre y para todo el año 2024, con un crecimiento significativo en todas las métricas clave. Los ingresos del cuarto trimestre aumentaron un 16,4% a 119,4 millones de dólares, con un incremento del 9,6% en los inicios de estudiantes y una población al final del trimestre en aumento del 14,1%. La compañía logró un ingreso neto de 6,8 millones de dólares y un EBITDA ajustado de 19,2 millones de dólares.
El rendimiento de todo el año 2024 mostró un crecimiento de ingresos del 16,4% a 440,1 millones de dólares, con un aumento del 15,2% en los inicios de estudiantes. La compañía mantuvo una sólida posición financiera con casi 100 millones de dólares en liquidez total y sin deudas. Los desarrollos recientes incluyen un nuevo contrato de arrendamiento de campus en Hicksville, NY, y la finalización de la venta del campus de Summerlin, Las Vegas.
De cara al futuro, Lincoln ha establecido una guía enfocada en el crecimiento para 2025, con un objetivo de aproximadamente 550 millones de dólares en ingresos y 90 millones de dólares en EBITDA ajustado para 2027. La compañía se está expandiendo a través de nuevos desarrollos de campus en Nashville, Levittown, Houston y Hicksville, mientras implementa su plataforma de enseñanza híbrida, Lincoln 10.0.
링컨 교육 서비스 (NASDAQ: LINC)는 2024년 4분기 및 연간 실적이 강력하게 나타났으며, 주요 지표에서 상당한 성장을 기록했습니다. 4분기 수익은 16.4% 증가하여 1억 1,940만 달러에 달했으며, 학생 시작 수는 9.6% 증가하고 분기 말 인원 수는 14.1% 증가했습니다. 회사는 680만 달러의 순이익과 1,920만 달러의 조정 EBITDA를 달성했습니다.
2024년 전체 실적은 수익이 16.4% 증가하여 4억 4,010만 달러에 달했으며, 학생 시작 수는 15.2% 증가했습니다. 회사는 총 유동성이 거의 1억 달러에 달하고 부채가 없는 강력한 재무 상태를 유지했습니다. 최근 개발 사항으로는 뉴욕 힉스빌에 새로운 캠퍼스 임대 계약 체결과 라스베가스 서머린 캠퍼스 매각 완료가 포함됩니다.
앞으로 링컨은 2025년 성장 중심의 가이드를 설정하여 2027년까지 약 5억 5천만 달러의 수익과 9천만 달러의 조정 EBITDA를 목표로 하고 있습니다. 회사는 내슈빌, 레빗타운, 휴스턴, 힉스빌에 새로운 캠퍼스 개발을 통해 확장하고 있으며, 하이브리드 교육 플랫폼인 링컨 10.0을 구현하고 있습니다.
Lincoln Educational Services (NASDAQ: LINC) a annoncé des résultats solides pour le quatrième trimestre et l'année complète 2024, avec une croissance significative dans tous les indicateurs clés. Les revenus du quatrième trimestre ont augmenté de 16,4 % pour atteindre 119,4 millions de dollars, avec une augmentation de 9,6 % des nouveaux étudiants et une population à la fin du trimestre en hausse de 14,1 %. L'entreprise a réalisé un bénéfice net de 6,8 millions de dollars et un EBITDA ajusté de 19,2 millions de dollars.
Les performances de l'année complète 2024 ont montré une croissance des revenus de 16,4 % à 440,1 millions de dollars, avec une augmentation de 15,2 % des nouveaux étudiants. L'entreprise a maintenu une solide position financière avec près de 100 millions de dollars de liquidités totales et aucune dette. Les développements récents incluent un nouveau bail de campus à Hicksville, NY, et l'achèvement de la vente du campus de Summerlin, Las Vegas.
En regardant vers l'avenir, Lincoln a établi des prévisions axées sur la croissance pour 2025, visant environ 550 millions de dollars de revenus et 90 millions de dollars d'EBITDA ajusté d'ici 2027. L'entreprise s'agrandit grâce à de nouveaux développements de campus à Nashville, Levittown, Houston et Hicksville, tout en mettant en œuvre sa plateforme d'enseignement hybride, Lincoln 10.0.
Lincoln Educational Services (NASDAQ: LINC) hat starke Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet, mit einem signifikanten Wachstum in allen wichtigen Kennzahlen. Der Umsatz im vierten Quartal stieg um 16,4% auf 119,4 Millionen Dollar, während die Studienanfänger um 9,6% zunahmen und die Gesamtzahl der Studierenden zum Quartalsende um 14,1% anstieg. Das Unternehmen erzielte einen Nettogewinn von 6,8 Millionen Dollar und ein bereinigtes EBITDA von 19,2 Millionen Dollar.
Die Leistung für das gesamte Jahr 2024 zeigte ein Umsatzwachstum von 16,4% auf 440,1 Millionen Dollar, mit einem Anstieg der Studienanfänger um 15,2%. Das Unternehmen hielt eine starke Finanzlage mit fast 100 Millionen Dollar an liquiden Mitteln und ohne Schulden aufrecht. Zu den jüngsten Entwicklungen gehören ein neuer Mietvertrag für einen Campus in Hicksville, NY, sowie der Abschluss des Verkaufs des Campus in Summerlin, Las Vegas.
Für die Zukunft hat Lincoln eine wachstumsorientierte Prognose für 2025 aufgestellt, mit dem Ziel, bis 2027 etwa 550 Millionen Dollar Umsatz und 90 Millionen Dollar bereinigtes EBITDA zu erreichen. Das Unternehmen expandiert durch neue Campusentwicklungen in Nashville, Levittown, Houston und Hicksville und implementiert seine hybride Lehrplattform, Lincoln 10.0.
- Q4 revenue increased 16.4% to $119.4 million
- Full-year revenue grew 16.4% to $440.1 million
- Student starts increased 15.2% for full-year 2024
- Strong liquidity position with nearly $100 million and zero debt
- Operating cash flow of $30.3 million in Q4
- Expansion with four new campus locations
- Loss of $1.2 million on sale of Summerlin, Las Vegas campus
- Increased operating expenses with SG&A up 18.2% to $62.1 million
- Transitional segment revenue declined 34.5% to $7.1 million
Insights
Lincoln Educational Services' Q4 and FY2024 results demonstrate exceptional execution of their growth strategy, with revenue surging 16.4% to $119.4M in Q4 and $440.1M for the full year. The 14.1% increase in student population reflects growing market recognition of vocational education's value proposition in addressing the skilled workforce shortage.
The company's strategic expansion through new campuses in high-demand markets (Nashville, Levittown, Houston, and Hicksville) represents a calculated approach to geographic diversification. The successful implementation of their Lincoln 10.0 hybrid teaching platform is particularly noteworthy, as it enhances operational efficiency while improving student outcomes - a important differentiator in the competitive education sector.
The decision to divest the Summerlin cosmetology campus while investing in technical education facilities aligns with workforce demands and higher-margin opportunities. The replication of seven high-demand programs at existing campuses in 2025 demonstrates a capital-efficient growth strategy, leveraging existing infrastructure to expand program offerings.
The company's robust financial health, evidenced by $30.3M in operating cash flow and nearly $100M in total liquidity, provides ample resources for executing their expansion plans without diluting shareholders or taking on debt. The planned timing shift of approximately 2,300 student starts from Q2 to Q3 2025 appears to be a one-time operational adjustment that shouldn't materially impact annual results.
Their focus on corporate partnerships and workforce development positions Lincoln advantageously in the evolving education landscape, where employers increasingly value practical skills over traditional degrees. The strong demand from both students and corporate partners suggests sustainable growth potential beyond their stated 2027 objectives of $550M revenue and $90M adjusted EBITDA.
Conference Call Today at 10 a.m. Eastern Standard Time
PARSIPPANY, N.J., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the fourth quarter and fiscal year ended December 31, 2024, as well as recent business developments.
Fourth Quarter 2024 Financial Highlights
- Revenue increased by
16.4% to$119.4 million - Student starts grew by
9.6% ; quarter-end student population rose by14.1% - Net income of
$6.8 million and adjusted EBITDA of$19.2 million - Total liquidity of nearly
$100 million , no debt outstanding - Cashflow from operations of
$30.3 million
Full Year 2024 Financial and Operational Highlights
- Achieved or surpassed fiscal year 2024 guidance ranges for all key financial metrics
- Revenue increased
16.4% to$440.1 million - Student starts grew by
15.2% - Net income of
$9.9 million and adjusted EBITDA of$42.3 million
Recent Developments
- Entered into a lease agreement for a new campus in Hicksville, New York
- Completed sale of Summerlin, Las Vegas campus
- Established full year 2025 guidance ranges that reflect continued strong growth
“We had a very strong finish to 2024, achieving or exceeding all of our guidance metrics while we continued to invest in our growth strategies,” said Scott Shaw, President & CEO. “By focusing on providing high value training to our students and corporate partners, we are meeting the rising demand for educational alternatives to a traditional four-year college degree while expanding employers’ abilities to fill their workforce skills gap. Successful execution of our business plan resulted in strong double-digit growth across all our key financial metrics including revenue, student starts, end of quarter student population, adjusted net income, adjusted EBITDA and cash generation from operations. While we continued to invest in our expansion, we maintained our financial strength and finished the year with nearly
“We’ve completed implementation of the first phase of our hybrid teaching platform, Lincoln 10.0, which continues to improve operating efficiencies while benefiting student experience and outcomes. At the same time, we continue to execute our new campus development efforts in Nashville, TN, Levittown, PA, Houston, TX and, most recently, our new campus in Hicksville, New York. Nashville is opening its doors to its first welding class in the new facility this week and we have a steady opening schedule at all three campuses as the year progresses. In addition, we expect to replicate seven high in demand programs at existing campus during 2025 after launching five such programs during 2024.
“Demand for our core programs by both high school and adult students is at an all-time high, as is the demand from corporate partners for our graduates. In 2025, as we open three new campus locations and replicate programs, we expect to make marked progress toward achieving our objectives of approximately
2024 FOURTH QUARTER FINANCIAL RESULTS
(Quarter ended December 31, 2024, compared to Quarter ended December 31, 2023)
- Revenue grew by
$16.9 million , or16.4% to$119.4 million . The increase was primarily due to a13.7% increase in average student population, driven by continued start growth of9.6% , in addition to tuition increases quarter over quarter. Included in the increase was$4.4 million of revenue generated by the East Point, Georgia campus, which opened late in the first quarter of 2024. - Educational services and facilities expenses increased
$4.1 million , or10.0% to$45.1 million . The increase over the prior year period includes approximately$1.0 million in preopening costs for new and relocating campuses as well as new program costs. The East Point, Georgia campus which opened late in the first quarter of 2024 added costs of$1.4 million . The remaining cost increases were associated with higher student population and higher depreciation expense resulting from our capital expenditures. Partially offsetting these increases was a$0.5 million reduction in costs from the Transitional segment. - Selling, general and administrative expenses increased
$9.6 million , or18.2% to$62.1 million . The increase includes approximately$1.3 million of costs resulting from the new East Point, Georgia campus. Remaining cost increases were driven mainly by additional personnel resulting from our higher student population. - Loss on sale of assets of
$1.2 million was due to the sale of the Summerlin, Las Vegas campus.
FOURTH QUARTER SEGMENT RESULTS
Campus Operations Segment
Revenue increased
Transitional Segment
As of December 31, 2024, the Summerlin, Las Vegas campus operations were classified within the Transitional segment. Additionally, as previously reported, the Company closed the Somerville, Massachusetts campus in the prior year, which was fully taught out as of December 31, 2023. This campus is classified in the Transitional segment in the prior year’s statement of operations.
Revenue decreased
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company.
Corporate and other expenses were
YEAR END FINANCIAL RESULTS
(Fiscal Year Ended December 31, 2024, compared to Fiscal Year Ended December 31, 2023)
- Total revenue increased
$62.0 million , or16.4% , to$440.1 million , compared to$378.1 million . - Campus Operations Segment revenue increased
$65.7 million , or17.9% to$432.9 million , compared to$367.2 million . - Transitional Segment revenue decreased
$3.7 million , or34.5% to$7.1 million , compared to$10.8 million .
RECENT BUSINESS DEVELOPMENTS
New Hicksville, New York Campus. On December 12, 2024, the Company entered into a lease for approximately 65,000 square feet of space to serve as the Company’s new campus in Hicksville, New York. The Hicksville campus will serve as the Company’s second campus in the New York City metro area and will offer programs in the automotive, welding, HVAC and electrical and electronic fields. The lease term is currently scheduled to commence on or about May 1, 2025, with an initial lease term of 15 years and 9 months. The lease contains a renewal option allowing for either a 10-year renewal or two five-year renewals.
Sale of Summerlin, Las Vegas (“Euphoria”). Effective on January 1, 2025, we completed the sale of our Summerlin, Las Vegas campus, from which our cosmetology program was taught. As a result of the sale, the fourth quarter financial results included a loss on sale of assets of
FULL YEAR 2025 OUTLOOK
The Company ended 2024 in a position of strength with significant liquidity to fund our expansion plans and will begin 2025 with over 14,800 students, an increase of
| 2025 Guidance | |||||||||||
| (Amounts in millions except for student starts) | Low | High | |||||||||
| Revenue | $ | 480 | - | $ | 490 | ||||||
| Adjusted EBITDA1 | $ | 55 | - | $ | 60 | ||||||
| Net Income | $ | 8 | - | $ | 13 | ||||||
| Capital expenditures | $ | 70 | - | $ | 75 | ||||||
| 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. | |||||||||||
While the Company anticipates overall student start growth throughout 2025, there is a planned timing shift in student starts in 2025 compared to 2024 due to a June start date shifting to July in the Company’s standardized Lincoln 10.0 start calendar. As a result of this start date move approximately 2,300 student starts are expected to shift from the second quarter to the third quarter. This shift is not expected to have a material impact on revenue between quarters.
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: Q4 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 21 campuses in 12 states under Lincoln College of Technology, Lincoln Technical Institute, Lincoln Culinary Institute, 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. 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 | Year-Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| REVENUE | $ | 119,374 | $ | 102,522 | $ | 440,064 | $ | 378,070 | ||||||||
| COSTS AND EXPENSES: | ||||||||||||||||
| Educational services and facilities | 45,122 | 41,024 | 181,759 | 162,275 | ||||||||||||
| Selling, general and administrative | 62,105 | 52,530 | 243,803 | 209,135 | ||||||||||||
| Loss (gain) on sale of assets | 1,218 | 6 | 2,119 | (30,918 | ) | |||||||||||
| Gain on insurance proceeds | - | - | (2,794 | ) | - | |||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | ||||||||||||
| Total costs & expenses | 108,445 | 93,560 | 424,887 | 344,712 | ||||||||||||
| OPERATING INCOME | 10,929 | 8,962 | 15,177 | 33,358 | ||||||||||||
| OTHER: | ||||||||||||||||
| Interest income | 299 | 736 | 2,099 | 2,628 | ||||||||||||
| Interest expense | (672 | ) | (273 | ) | (2,565 | ) | (347 | ) | ||||||||
| INCOME BEFORE INCOME TAXES | 10,556 | 9,425 | 14,711 | 35,639 | ||||||||||||
| PROVISION FOR INCOME TAXES | 3,722 | 2,633 | 4,820 | 9,642 | ||||||||||||
| NET INCOME | $ | 6,834 | $ | 6,792 | $ | 9,891 | $ | 25,997 | ||||||||
| Basic | ||||||||||||||||
| Net income per common share | $ | 0.22 | $ | 0.23 | $ | 0.32 | $ | 0.86 | ||||||||
| Diluted | ||||||||||||||||
| Net income per common share | $ | 0.22 | $ | 0.22 | $ | 0.32 | $ | 0.85 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 30,679 | 30,126 | 30,580 | 30,105 | ||||||||||||
| Diluted | 31,144 | 30,847 | 30,891 | 30,541 | ||||||||||||
| Other data: | ||||||||||||||||
| Adjusted EBITDA (1) | $ | 19,227 | $ | 15,730 | $ | 42,312 | $ | 26,500 | ||||||||
| Depreciation and amortization | $ | 3,440 | $ | 2,114 | $ | 12,956 | $ | 6,770 | ||||||||
| Number of campuses | 21 | 21 | 21 | 21 | ||||||||||||
| Average enrollment | 15,904 | 13,983 | 14,426 | 12,941 | ||||||||||||
| Net cash provided by operating activities | $ | 30,299 | $ | 21,946 | $ | 29,306 | $ | 25,558 | ||||||||
| Net cash (used in) provided by investing activities | $ | (24,772 | ) | $ | 12,330 | $ | (46,971 | ) | $ | 7,369 | ||||||
| Net cash used in financing activities | $ | (216 | ) | $ | - | $ | (3,331 | ) | $ | (2,945 | ) | |||||
| Selected Consolidated Balance Sheet Data: | December 31, 2024 | ||
| (Unaudited) | |||
| Cash and cash equivalents | $ | 59,273 | |
| Current assets | 111,252 | ||
| Working capital | 21,040 | ||
| Total assets | 436,556 | ||
| Current liabilities | 90,212 | ||
| Total stockholders' equity | 178,264 | ||
(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, restricted cash and available borrowings under our credit facility.
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 December 31, | Year-Ended December 31, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Consolidated Operations | Consolidated Operations | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 6,834 | $ | 6,792 | $ | 9,891 | $ | 25,997 | ||||||||
| Interest expense (income), net | 373 | (463 | ) | 466 | (2,281 | ) | ||||||||||
| Provision for income taxes | 3,722 | 2,633 | 4,820 | 9,642 | ||||||||||||
| Depreciation and amortization | 3,440 | 2,114 | 12,956 | 6,770 | ||||||||||||
| EBITDA | 14,369 | 11,076 | 28,133 | 40,128 | ||||||||||||
| Stock compensation expense | 1,275 | 1,845 | 4,629 | 5,894 | ||||||||||||
| New campus and campus relocation costs | 1,970 | 1,885 | 8,793 | 3,466 | ||||||||||||
| Severance and other one-time costs | 257 | 437 | 1,323 | 1,831 | ||||||||||||
| Program expansions | 178 | - | 1,050 | - | ||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | (30,939 | ) | |||||||||||
| Loss on sale of Summerlin Las Vegas | 1,178 | - | 1,178 | - | ||||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | ||||||||||||
| Somerville closure | - | 487 | - | 1,900 | ||||||||||||
| Gain on insurance proceeds | - | - | (2,794 | ) | - | |||||||||||
| Adjusted EBITDA | $ | 19,227 | $ | 15,730 | $ | 42,312 | $ | 26,500 | ||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Campus Operations | Transitional | Corporate | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Net income (loss) | $ | 24,730 | $ | 21,371 | $ | (604 | ) | $ | (682 | ) | $ | (17,292 | ) | $ | (13,897 | ) | ||||||
| Interest expense (income), net | 574 | 233 | - | - | (201 | ) | (696 | ) | ||||||||||||||
| Provision for income taxes | - | - | - | - | 3,722 | 2,633 | ||||||||||||||||
| Depreciation and amortization | 3,274 | 1,945 | - | 20 | 166 | 149 | ||||||||||||||||
| EBITDA | 28,578 | 23,549 | (604 | ) | (662 | ) | (13,605 | ) | (11,811 | ) | ||||||||||||
| Stock compensation expense | - | - | - | - | 1,275 | 1,845 | ||||||||||||||||
| New campus and campus relocation costs | 1,970 | 1,885 | - | - | - | - | ||||||||||||||||
| Program expansions | 178 | - | - | - | - | - | ||||||||||||||||
| Loss on sale of Summerlin, Las Vegas | - | - | - | - | 1,178 | - | ||||||||||||||||
| Severance and other one-time costs | - | 437 | - | - | 257 | - | ||||||||||||||||
| Somerville closure | - | - | - | 487 | - | - | ||||||||||||||||
| Adjusted EBITDA | $ | 30,726 | $ | 25,871 | $ | (604 | ) | $ | (175 | ) | $ | (10,895 | ) | $ | (9,966 | ) | ||||||
| Year-Ended December 31, | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Campus Operations | Transitional | Corporate | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Net income (loss) | $ | 61,350 | $ | 47,798 | $ | (2,038 | ) | $ | (2,365 | ) | $ | (49,421 | ) | $ | (19,436 | ) | ||||||
| Interest expense (income), net | 2,208 | 233 | - | - | (1,742 | ) | (2,514 | ) | ||||||||||||||
| Provision for income taxes | - | - | - | - | 4,820 | 9,642 | ||||||||||||||||
| Depreciation and amortization | 12,200 | 6,030 | 56 | 110 | 700 | 630 | ||||||||||||||||
| EBITDA | 75,758 | 54,061 | (1,982 | ) | (2,255 | ) | (45,643 | ) | (11,678 | ) | ||||||||||||
| Stock compensation expense | - | - | - | - | 4,629 | 5,894 | ||||||||||||||||
| Gain on insurance proceeds | - | - | - | - | (2,794 | ) | - | |||||||||||||||
| New campus and campus relocation costs | 8,793 | 3,466 | - | - | - | - | ||||||||||||||||
| Program expansions | 1,050 | - | - | - | - | - | ||||||||||||||||
| Loss on sale of Summerlin, Las Vegas | - | - | - | - | 1,178 | - | ||||||||||||||||
| Severance and other one-time costs | - | - | - | - | 1,323 | 1,831 | ||||||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | - | - | (30,939 | ) | |||||||||||||||
| Impairment of goodwill and long-lived assets | - | 4,220 | - | - | - | - | ||||||||||||||||
| Somerville closure | - | - | - | 1,900 | - | - | ||||||||||||||||
| Adjusted EBITDA | $ | 85,601 | $ | 61,747 | $ | (1,982 | ) | $ | (355 | ) | $ | (41,307 | ) | $ | (34,892 | ) | ||||||
| Three Months Ended | Year-Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 6,834 | $ | 6,792 | $ | 9,891 | $ | 25,997 | ||||||||
| Adjustments to net income: | ||||||||||||||||
| New campus and campus relocation costs | 1,970 | 2,299 | 9,304 | 3,890 | ||||||||||||
| Program expansions | 178 | - | 1,050 | - | ||||||||||||
| Gain on sale of Nashville, Tennessee | - | - | - | (30,939 | ) | |||||||||||
| Loss on sale of Summerlin, Las Vegas | 1,178 | 1,178 | - | |||||||||||||
| Gain on insurance proceeds | - | - | (2,794 | ) | - | |||||||||||
| Impairment of goodwill and long-lived assets | - | - | - | 4,220 | ||||||||||||
| Severance and other one time costs | 507 | 437 | 1,833 | 2,608 | ||||||||||||
| Performance based catch-up stock compensation | - | 1,264 | - | 2,742 | ||||||||||||
| Somerville closure | - | 487 | - | 1,900 | ||||||||||||
| Total non-recurring adjustments | 3,833 | 4,487 | 10,571 | (15,579 | ) | |||||||||||
| Income tax effect | (1,150 | ) | (1,256 | ) | (3,171 | ) | 4,362 | |||||||||
| Adjusted net income, non-GAAP | $ | 9,517 | $ | 10,023 | $ | 17,291 | $ | 14,780 | ||||||||
| As of | ||
| December 31, 2024 | ||
| Cash and cash equivalents | $ | 59,273 |
| Credit facility | 38,844 | |
| Total Liquidity | $ | 98,117 |
| Three Months Ended December 31, | |||||||||||
| 2024 | 2023 | % Change | |||||||||
| Revenue: | |||||||||||
| Campus Operations | $ | 117,666 | $ | 100,371 | 17.2 | % | |||||
| Transitional | 1,708 | 2,151 | -20.6 | % | |||||||
| Total | $ | 119,374 | $ | 102,522 | 16.4 | % | |||||
| Operating Income (loss): | |||||||||||
| Campus Operations | $ | 25,304 | $ | 21,604 | 17.1 | % | |||||
| Transitional | (604 | ) | (682 | ) | 11.4 | % | |||||
| Corporate | (13,771 | ) | (11,960 | ) | -15.1 | % | |||||
| Total | $ | 10,929 | $ | 8,962 | 21.9 | % | |||||
| Starts: | |||||||||||
| Campus Operations | 3,397 | 3,058 | 11.1 | % | |||||||
| Transitional | 100 | 133 | -24.8 | % | |||||||
| Total | 3,497 | 3,191 | 9.6 | % | |||||||
| Average Population: | |||||||||||
| Campus Operations | 15,586 | 13,581 | 14.8 | % | |||||||
| Transitional | 318 | 402 | -20.9 | % | |||||||
| Total | 15,904 | 13,983 | 13.7 | % | |||||||
| End of Period Population: | |||||||||||
| Campus Operations | 14,838 | 12,900 | 15.0 | % | |||||||
| Transitional | 300 | 370 | -18.9 | % | |||||||
| Total | 15,138 | 13,270 | 14.1 | % | |||||||
| Year Ended December 31, | |||||||||||
| 2024 | 2023 | % Change | |||||||||
| Revenue: | |||||||||||
| Campus Operations | $ | 432,966 | $ | 367,233 | 17.9 | % | |||||
| Transitional | 7,098 | 10,837 | -34.5 | % | |||||||
| Total | $ | 440,064 | $ | 378,070 | 16.4 | % | |||||
| Operating Income (loss): | |||||||||||
| Campus Operations | $ | 63,558 | $ | 48,031 | 32.3 | % | |||||
| Transitional | (2,039 | ) | (2,366 | ) | 13.8 | % | |||||
| Corporate | (46,342 | ) | (12,307 | ) | -276.5 | % | |||||
| Total | $ | 15,177 | $ | 33,358 | -54.5 | % | |||||
| Starts: | |||||||||||
| Campus Operations | 18,153 | 15,526 | 16.9 | % | |||||||
| Transitional | 507 | 673 | -24.7 | % | |||||||
| Total | 18,660 | 16,199 | 15.2 | % | |||||||
| Average Population: | |||||||||||
| Campus Operations | 14,100 | 12,436 | 13.4 | % | |||||||
| Transitional | 326 | 505 | -35.4 | % | |||||||
| Total | 14,426 | 12,941 | 11.5 | % | |||||||
| End of Period Population: | |||||||||||
| Campus Operations | 14,838 | 12,900 | 15.0 | % | |||||||
| Transitional | 300 | 370 | -18.9 | % | |||||||
| Total | 15,138 | 13,270 | 14.1 | % | |||||||
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 December 31, | ||||||
| 2024 | 2023 | % Change | ||||
| Starts: | ||||||
| Transportation and Skilled Trades | 2,366 | 1,810 | 30.7 | % | ||
| Healthcare and Other Professions | 1,031 | 1,248 | -17.4 | % | ||
| Total | 3,397 | 3,058 | 11.1 | % | ||
| Average Population: | ||||||
| Transportation and Skilled Trades | 11,654 | 9,741 | 19.6 | % | ||
| Healthcare and Other Professions | 3,932 | 3,840 | 2.4 | % | ||
| Total | 15,586 | 13,581 | 14.8 | % | ||
| End of Period Population: | ||||||
| Transportation and Skilled Trades | 11,081 | 9,170 | 20.8 | % | ||
| Healthcare and Other Professions | 3,757 | 3,730 | 0.7 | % | ||
| Total | 14,838 | 12,900 | 15.0 | % | ||
| Population by Program (Campus Operations Segment): | ||||||
| Year-Ended December 31, | ||||||
| 2024 | 2023 | % Change | ||||
| Starts: | ||||||
| Transportation and Skilled Trades | 13,396 | 10,876 | 23.2 | % | ||
| Healthcare and Other Professions | 4,757 | 4,650 | 2.3 | % | ||
| Total | 18,153 | 15,526 | 16.9 | % | ||
| Average Population: | ||||||
| Transportation and Skilled Trades | 10,347 | 8,871 | 16.6 | % | ||
| Healthcare and Other Professions | 3,753 | 3,565 | 5.3 | % | ||
| Total | 14,100 | 12,436 | 13.4 | % | ||
| End of Period Population: | ||||||
| Transportation and Skilled Trades | 11,081 | 9,170 | 20.8 | % | ||
| Healthcare and Other Professions | 3,757 | 3,730 | 0.7 | % | ||
| Total | 14,838 | 12,900 | 15.0 | % | ||
The reconciliations provided below represent management’s projections of various components included in our outlook for the full year 2025. 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 announcements of 2025 quarterly results. 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 - 2025 Guidance | ||||||||
| (Reconciled to the Mid-Point of 2025 Guidance) | ||||||||
| Adjusted | Adjusted | |||||||
| EBITDA | Net Income | |||||||
| Net Income | $ | 10,500 | $ | 10,500 | ||||
| Interest expense, net | 2,500 | - | ||||||
| Provision for taxes | 4,500 | - | ||||||
| Depreciation and amortization | 21,500 | 200 | ||||||
| EBITDA | 39,000 | - | ||||||
| New campus and campus relocation costs1 2 | 8,800 | 8,800 | ||||||
| Program expansions | 2,500 | 2,500 | ||||||
| Other one time items | 3,200 | 3,200 | ||||||
| Stock compensation expense | 4,000 | - | ||||||
| Tax Effect | - | (4,400 | ) | |||||
| Total | $ | 57,500 | 20,800 | |||||
| 2025 Guidance Range | ||||||||
| 1 | New campus and campus relocation costs relate to the following locations: | |||||||
| Nashville, Tennessee (relocation) | ||||||||
| Levittown, Pennsylvania (relocation) | ||||||||
| Houston, Texas (new) | ||||||||
| Hicksville, New York (new) | ||||||||
| 2 | New campus adjustment includes pre-opening costs, as well as net operating losses up to four quarters after the campus opens, or until the campus becomes profitable, whichever comes first. Relocating campus adjustment includes pre-opening costs and relocation-related costs through the end of the quarter in which the relocation is complete. | |||||||
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 Q4 2024?
How much did LINC's student enrollment grow in Q4 2024?
What are LINC's revenue and EBITDA targets for 2027?
Which new campus locations is LINC developing in 2025?
What was LINC's full-year 2024 net income?
