Lincoln Educational Services Corporation Completes Sale of West Palm Beach Properties for $15.75 Million
August 16 2017 - 7:00AM
Lincoln Educational Services Corporation (Nasdaq:LINC) announced
today that its wholly-owned subsidiary, New England Institute of
Technology at Palm Beach, Inc. (“NEIT”), has completed the sale of
West Palm Beach, FL properties located at 2400 and 2410 Metrocentre
Boulevard East, West Palm Beach, Florida to Tambone Companies,
LLC. NEIT and Tambone Companies, LLC entered into a
definitive agreement for Tambone to acquire the properties on March
14, 2017. The transaction generated net proceeds to Lincoln
of $15.3 million after transaction costs. As a result,
Lincoln expects to record a non-cash gain on the sale in the amount
of $1.5 million.
The West Palm Beach facilities served as collateral
for a short-term loan in the principal amount of $8.0 million
obtained by Lincoln from its lender, Sterling National Bank, on
April 28, 2017. Lincoln has fully repaid the term loan from the
proceeds generated from the property sale.
NEIT’s remaining campus located at 1126 53rd Court
in Mangonia Park, FL, continues to operate. Lincoln expects to
complete a teach out of all programs at the campus by September
2017.
About Lincoln Educational Services
Corporation
Lincoln Educational Services Corporation is a
provider of diversified career-oriented post-secondary education
and helping to provide solutions to America’s skills gap. Lincoln
offers recent high school graduates and working adults degree and
diploma programs in the Transportation and Skilled Trades
fields. Lincoln also offers skilled training programs through
partnerships with a number of major corporations including Audi,
Fiat Chrysler, Volkswagen, and BMW. Lincoln has provided the
nation’s workforce with skilled technicians since its inception in
1946. For more information, go to www.lincolnedu.com.
Safe Harbor
Statements in this press release and in oral
statements made from time to time by representatives of Lincoln
Educational Services Corporation (“Lincoln” or the “Company”)
regarding Lincoln’s business that are not historical facts 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 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, projected or anticipated benefits
from acquisitions or dispositions to be made by the Company or
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 projections upon which the statements are
based. The events described in forward-looking statements may not
occur at all. Factors which may affect the Company’s results
include, but are not limited to, the risks and uncertainties
discussed in the Company’s Annual Report on Form 10-K, Quarterly
Reports on From 10-Q and Current Reports on Form 8-K filed with the
Securities and Exchange Commission. Any one or more of these
uncertainties, risks and other influences could materially affect
the Company’s results of operations and financial condition and
whether forward-looking statements made by the Company ultimately
prove to be accurate and, as such, the Company’s actual results,
performance and achievements could materially differ from those
expressed or implied in these 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. Important factors
that could cause such differences include, but are not limited to,
our failure to comply with the extensive regulatory framework
applicable to our industry or our failure to obtain timely
regulatory approvals in connection with a change of control of our
Company or acquisitions; 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 changes in applicable federal laws and regulations;
uncertainties regarding our ability to comply with federal laws and
regulations regarding the 90/10 rule and 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 and quarterly
reports. 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.
CONTACT:
Lincoln Educational Services Corporation
Brian Meyers, CFO
973-736-9340
EVC Group, Inc.
Media: Tom Gibson, tom@tomgibsoncommunications.com; 201-476-0322
Investors: Doug Sherk, dsherk@evcgroup.com; 415-652-9100
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