Lincoln Educational Services to Open New Campus in Atlanta; Expands Nationally to 23 Campuses

Rhea-AI Summary

Lincoln Educational Services Corporation (NASDAQ: LINC) has announced plans for a new 55,000 square foot campus in the Atlanta area, aimed at addressing the country's skills gap. The campus, expected to enroll around 700 students, will focus on training in Auto Technology, HVAC, and other skilled trades. Projected to generate $20 million in revenue and $5 million in EBITDA within four years, this campus marks the first of five planned under a strategic growth initiative. The anticipated opening is set for Q3 2023, depending on regulatory approvals.

Positive

• New Atlanta campus to generate approximately $20 million in revenue within four years.
• Projected EBITDA of $5 million from the new campus.
• Expansion aligns with a five-year strategic growth plan to address skills gap.
• Curricula in high-demand fields expected to support job growth of 84,000 positions in Georgia by 2028.

Negative

• None.

•Second Georgia Location is First New Campus to be Developed Under Company’s Five-Year Strategic Growth Plan and Continues Lincoln’s Effort to Close the Country’s Skills Gap•New Campus Projected to Generate Revenue of Approximately $20 Million and EBITDA of $5 Million Within Four Years of Opening

Parsippany, NJ, July 13, 2022 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ: LINC), a national leader in specialized technical training for more than 75 years, today announced plans to open the Company’s second campus in the metropolitan Atlanta area. The new 55,000 square foot campus, with capacity for approximately 700 students, will be located near Interstate 85 to conveniently offer training programs in Auto Technology, Electrical & Electronic Systems Technology, Welding, and Heating, Ventilation & Air Conditioning (HVAC) to students from Atlanta as well as south of the city. It will complement Lincoln’s existing Marietta, GA campus to the north which provides career training in healthcare support fields along with skilled trades programs. The new campus is projected to open in the third quarter of 2023, subject to obtaining necessary regulatory approvals and timely build-out.

Lincoln will deploy its new hybrid education delivery model providing greater flexibility for students and faculty. The planned curricula at the new campus are in industries that are anticipated to add a combined 84,000 jobs across Georgia by 2028*. The Company believes the new campus will play a major role in expanding career opportunities for graduates as well as building the state’s workforce for these vital, growing fields. This new campus is the first of five new campuses the Company plans to open nationwide within the next five years. The Company projects the new campus will generate approximately $20 million in revenue and $5 million in earnings before interest, taxes, depreciation and amortization (EBITDA) within four years of opening. The Company also believes, based on employer demand for skilled employees and job growth projections, that it may be able to open as many as 20 new campuses as part of its long-term strategic plan.

“Our knowledge of the local market has been gained from years of being a valued member of the community through our first campus, combined with conversations with industry partners across the state and throughout the region. There’s a demonstrated need for skilled, trained professionals in these industries,” commented Scott Shaw, Lincoln’s President and Chief Executive Officer. “As a result of our in-depth market analysis, we’re confident that this market represents a tremendous growth opportunity for Lincoln, area students, and the employers who will seek to hire them upon graduation to ensure their organizations continue to grow. We believe successfully executing our five-year expansion plan will demonstrate our commitment to helping students gain the skills required to achieve rewarding careers and to close the nation’s skills gap.”

“The U.S. is currently facing a severe shortage of middle skilled workers, and by working with our industry partners, we will identify and enter significant markets of opportunity to expand our footprint and grow our business through new campus openings and acquisitions. The availability of quality training programs will have a direct impact on hiring markets and be a benefit to students, employers, and entire communities, particularly in the southern and western parts of the country,” added Shaw.

“We are well aware that our partners are, and will continue to be, challenged to hire and retain talent across a wide range of hands-on fields,” commented Susan English, Lincoln Educational Services’ Senior Vice President of Career Services and Industry Partnerships. “I believe our network of campuses and variety of programs are distinct and provide companies with a diverse talent pool and local campus contacts who can assist them in addressing their hiring needs in specific locations.”

“The commitment to growing our network and filling the skills gap will further embed us with our industry partners and will foster closer working relationships with the country’s leaders in the auto, healthcare, and skilled trade industries. These relationships are key drivers of career opportunities for our graduates and represent a win-win for all constituents as it enhances the value proposition of investing in a Lincoln Educational Services career training program,” concluded Shaw.

 

* Career growth projections can be found at onetonline.org for the years 2018-2028 and are current as of July 4, 2022.

  

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About Lincoln Educational Services Corporation

Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education. Lincoln offers recent high school graduates and working adults career-oriented programs 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. 

Lincoln currently operates 22 campuses in 14 states under four brands: Lincoln Technical Institute, Lincoln College of Technology and Euphoria Institute of Beauty Arts and Sciences.  Lincoln also operates Lincoln Culinary Institutes in both Maryland and Connecticut.

For more information, go to lincolntech.edu.

FAQ

What is Lincoln Educational Services' new campus in Atlanta expected to generate in revenue?

The new Atlanta campus is projected to generate approximately $20 million in revenue within four years.

What EBITDA is expected from Lincoln Educational Services' new campus?

The new campus is anticipated to generate about $5 million in EBITDA within four years of opening.

When will Lincoln Educational Services open its Atlanta campus?

The new Atlanta campus is expected to open in the third quarter of 2023, pending necessary regulatory approvals.

How many new campuses does Lincoln plan to open in the next five years?

Lincoln plans to open five new campuses nationwide within the next five years.

What training programs will be offered at Lincoln's new Atlanta campus?

The new campus will offer training programs in Auto Technology, Electrical & Electronic Systems, Welding, and HVAC.