Lincoln Educational Services Corporation (Nasdaq:LINC) today
reported financial results for the first quarter ended March 31,
2017. The recent financial and operational highlights were as
follows:
- The Board of Directors agreed to abandon the Company’s efforts
to divest its Healthcare and Other Professions segment (“HOPS”).
As a result, Lincoln no longer reports HOPS as discontinued
operations and has resumed its three segment reporting;
Transportation & Skilled Trades, HOPS and Transitional.
- The Transportation and Skilled Trades segment performed to plan
during the quarter with student starts up 3.9% and revenues of
$42.2 Million. The segment generated operating income of $2.0
million. Operating income was impacted by planned marketing
investments designed to continue positive trends in student starts
and the segment is on track to meet management’s financial guidance
for the full year.
- Lincoln continued implementation of its Transportation and
Skilled Trades segment corporate partnerships during the quarter,
which are seen as contributing to the segment’s student start
growth. The previously announced MINI Step program is
scheduled to begin in June 2017.
- Revenue from the HOPS segment during the first quarter was
$18.8 million and the segment generated operating income of $0.2
million. Student starts declined 10% as compared to the first
quarter of 2016 after increasing 6% in the fourth quarter of
2016. Transitional segment revenue was $4.3 million.
- In order to promote operating improvement for the HOPS segment,
the Company has decided not to renew leases for two of its three
Massachusetts campuses, one in Brockton and one in Lowell, both of
which have experienced historical losses and have forecasted
losses. The Company will teach-out these campuses by the end
of 2017, which coincides with the lease expirations for these
campuses. Meanwhile, the Company will continue to operate its
Somerville, Massachusetts campus offering HOPS programs.
- Lincoln replaced its term loan facility from a prior lender
with a new up-to-$55.0 million secured revolving credit facility
from Sterling National Bank. The new credit facility contains
more favorable terms than the prior term loan.
- After the quarter close, the Company entered into a short-term
secured term loan in the principal amount of $8.0 million, which
provides Lincoln with additional flexibility to undertake certain
strategic initiatives. The new term loan is secured by a
mortgage on the Company’s West Palm Beach, Florida property, which
is currently under contract for sale for a purchase price of $16.3
million. Upon the consummation of the sale, which is expected
to close in the third quarter, the term loan will be
repaid.
“The first quarter’s financial performance was
as we had planned and we are on track to achieve our original
guidance provided back in March,” said Scott Shaw, President &
CEO. “Based on the lack of potential value creation for our
shareholders obtained from a HOPS divestiture transaction, as well
as the improvements our team has implemented in the HOPS operations
and the potential for an improved federal regulatory environment
for our industry, our Board has decided to abandon the divesture
strategy for our HOPS operations. Given the positive impact of the
various strategies our team executed while the divesture plan was
in process, we believe that this segment can be a positive
financial contributor to our overall results while we continue to
enhance the student experience and education at the HOPS
campuses. To promote this goal, we have decided not to renew
leases for two Massachusetts campuses and will direct potential
students of these two locations to our Somerville, Massachusetts
campus.
“Turning to the Transportation and Skilled
Trades segment, our strategies to grow student starts are
generating success,” continued Mr. Shaw. “Starts for this segment
were up 3.9% and we started the year with higher carry-in
population as compared to one year ago. Revenue for this
segment remained essentially flat and was impacted by the
underperformance of one campus. We addressed this
underperformance during the fourth quarter of 2016 and we have seen
an increase in student starts at this campus. As planned, we
did increase investment in marketing programs for the segment
during the quarter, which impacted our bottom line
performance. However, in addition to reiterating our guidance
for the segment today, we now expect that we will report net income
for the entire corporation for the final nine months of 2017, which
would be a positive step forward for this Company.”
REVISED HOPS SEGMENT
STRATEGY
Following the decision by the Board of Directors
in November 2015 to divest HOPS due to a strategic shift in our
business strategy, the Company underwent an exhaustive process to
divest the HOPS schools. This process proved successful in
attracting various purchasers but, ultimately, did not result in a
proposed transaction that the Board believed would enhance
shareholder value. When the decision was first made by the
Board to divest HOPS, 18 campuses were operating in this
segment. By the end of 2017, the Company will have
strategically closed seven underperforming campuses, leaving a
total of 11 campuses remaining under HOPS. Management
believes that the closures and planned closures of the
aforementioned campuses has positioned this segment and the Company
to be more profitable going forward as well as maximizing returns
for Lincoln’s shareholders. The combination of several
factors, including the inability of a prospective buyer of HOPS to
close on the purchase, the change in Federal government
administration, the closure of seven underperforming campuses and
the improvement Lincoln’s team has implemented in the HOPS
operations also led to the Board’s decision to abandon the
divestiture plan and to continue to operate the HOPS segment as
revitalized.
FIRST QUARTER RESULTS:
The results of operations of the campuses included in the HOPS
business segment are reflected as continuing operations in the
consolidated financial statements. In addition, in March
2017, the Board of Directors approved a plan to cease operations at
campuses in Brockton, Massachusetts and Lowell, Massachusetts, both
of which have experienced historical losses and have forecasted
losses. These campuses are being taught-out and are expected
to close in December 2017, which coincides with the expiration of
the leases for these campuses. Both the Brockton and Lowell
campuses are included in the Transitional segment as of March 31,
2017.
Revenue decreased by $5.4 million, or 7.6%, to $65.3 million for
the three months ended March 31, 2017 from $70.6 million for the
prior year comparable period. The decrease in revenue is
mainly attributable to three factors, including: (a) the suspension
of new student enrollments at campuses in the Transitional segment,
which accounted for approximately 80% of the total revenue decline;
(b) lower carry-in population, which was down by approximately 90
fewer students than Lincoln had on January 1, 2016 in its HOPS
segment; and (c) slight changes in program mix in the HOPS
segment.
Total student starts decreased by 11.6% to approximately 2,900
from 3,200 for the three months ended March 31, 2017 as compared to
the prior year comparable period largely due to the Transitional
segment’s 71.2% decline. The Transportation and Skilled
Trades segment starts were up 3.9% quarter over quarter and HOPS
segment starts were down 10.1% as compared to the first quarter of
2016 after increasing 6% in the fourth quarter of 2016.
Educational services and facilities expenses decreased by $4.4
million, or 11.9%, to $32.7 million from $37.1 million in the prior
year comparable quarter. Facilities expense decreased by $3.3
million, or 21.3%, primarily due to $2.9 million in savings from
the closure of several campuses in the Transitional segment.
Instructional expenses decreased by $0.9 million, or 5.3%, due
to the reduction in the number of instructors and other related
costs resulting from the teach-out of several campuses in the
Transitional segment.
Educational services and facilities expenses, as a percentage of
revenue, decreased to 50.1% from 52.5% in the prior year comparable
period.
Selling, general and administrative expenses decreased by $1.8
million, or 4.6%, to $38.3 million for the three months ended March
31, 2017 from $40.2 million in the comparable quarter of
2016. The decrease in selling, general and administrative
expenses was primarily due to the Transitional segment, which
accounted for approximately $3.3 million in costs savings as
campuses in the segment prepare to close during this fiscal
year. Partially offsetting these costs savings were increased
spending in marketing of $0.8 million and a $0.3 million increase
in bad debt expense. Bad debt expense as a percentage of
revenue was 4.8% for the three months ended March 31, 2017 as
compared to 5.0% in the prior year comparable period. This
decrease in bad debt was primarily attributable to the suspension
of student starts and closures of campuses relating to the
Transitional segment. Excluding this segment, the Company’s
bad debt as a percentage of revenue would have increased slightly
quarter over quarter due to the timing of the collection of Title
IV funds received during the three months ended March 31, 2017.
Sales and marketing expense decreased by $0.1 million, or 0.8%,
primarily as a result of $0.4 million in reduced sales expense,
partially offset by an increase in marketing spending of $0.3
million. The decrease in sales expense is primarily the
result of the suspension of new students at several campuses in the
Transitional segment. Increases in marketing expense
are largely the result of additional spending in a strategic effort
to reach more potential students, expand brand awareness and
increase enrollments for the Transportation and Skilled Trades
segment in addition to the HOPS segment.
Student services expense decreased by $0.3 million, or 10.2%,
due to the re-alignment of support services with lower levels of
population.
As a percentage of revenues, selling, general and administrative
expense increased to 58.7% for the three months ended March 31,
2017 from 56.8% in the comparable prior year period.
Interest expense for the quarter increased to $5.2 million, from
$1.6 million in the prior year comparable period. The $3.6
million increase was mainly due to the $2.2 million non-cash
write-off of previously capitalized deferred finance fees related
to the Company’s prior term loan facility. Additional costs
of $1.7 million pertaining to the early termination of the prior
term loan were paid which contributed to the increase in interest
expense.
The net loss in the first quarter of 2017 was
$10.9 million, or $0.46 per share, compared to a net loss of $6.1
million, or $0.26 per share, in the prior year comparable
period.
FIRST QUARTER SEGMENT FINANCIAL
PERFORMANCE
Transportation and Skilled
Trades
Transportation and Skilled Trades segment
revenue was $42.2 million for the three months ended March 31,
2017, as compared to $42.3 million in the prior year comparable
quarter. Student starts for the three months ended March 31,
2017 were up 3.9% and this segment started 2017 with approximately
100 more students than it had on January 1, 2016. Revenue has
remained essentially flat quarter over quarter mainly due to the
underperformance of one campus. This campus started 2017 with
approximately 100 fewer students than on January 1, 2016. The
lower carry-in population has adversely impacted average population
and ultimately revenue at this campus. After management
implemented changes during the fourth quarter of 2016, student
starts for this campus are up quarter over quarter.
Management believes the changes implemented will continue to yield
positive results throughout 2017.
Student start results increased by 3.9% to 1,724 from 1,660 for
the three months ended March 31, 2017 as compared to the prior year
comparable period. The increase in student starts is a
positive sign in terms of industry stabilization and management
believes it is a direct result of increased marketing initiatives.
Operating income for the three months ended
March 31, 2017 declined to $2.1 million from $3.4 million in the
prior year comparable period primarily as a result of selling,
general and administrative expenses, which increased by $1.5
million. The increase in selling, general and administrative
expenses was due to a (a) $0.8 million increase in marketing
expense which was largely the result of additional spending in a
strategic effort to reach more potential students, expand brand
awareness and increase enrollments; (b) a $0.3 million increase in
bad debt expense due to the timing of the collection of Title IV
funds received during the quarter; and (c) a $0.3 million increase
in salaries and benefits expense.
Partially offsetting the decline in operating
income was reduced spending in educational services and facilities
expenses, which decreased by $0.3 million for the three months
ended March 31, 2017. The change quarter over quarter was
mainly the result of a $0.7 million, or 7.9%, reduction in
facilities expense due to lower depreciation caused by reduced
spending on capital expenditures in combination with assets that
have fully depreciated during the three months ended March 31, 2017
as compared to the prior year comparable period. Partially
offsetting the reductions were increased spending on books and
tools expenses and instruction expenses.
Healthcare and Other
Professions
HOPS segment revenue was $18.8 million for the
three months ended March 31, 2017, as compared to $19.8 million in
the prior year comparable quarter. The decrease in revenue is
mainly attributable to starting 2017 with approximately 100 fewer
students than on January 1, 2016. The lower carry-in
population has resulted in lower average student population, which
was down 3.0% to 3,633 for the three months ended March 31, 2017
from 3,745 in the prior year comparable period. Additionally,
student starts were down 10.1% for the three months ended March 31,
2017 and average revenue per student was down 2.0% quarter over
quarter. The decrease in the revenue per student adversely
impacted revenue and was primarily attributable to a shift in
program mix.
Operating income for the three months ended
March 31, 2017 declined to $0.2 million from $1.8 million in the
prior year comparable period. The decline was the result of
several factors including (a) a decrease in revenue of $1.0 million
quarter over quarter; (b) a $0.5 million increase in marketing
expenses; and (c) a $0.2 million increase in administrative
expenses primarily the result of increased bad debt.
Educational services and facilities expense
remained essentially flat for the three months ended March 31, 2017
as compared to the prior year comparable period.
Transitional
The Transitional segment revenue was $4.3
million for the three months ended March 31, 2017 as compared to
$8.6 million in the prior year comparable period mainly
attributable to the closing of campuses within this segment.
Operating loss decreased by $3.1 million to $0.6 million for the
three months ended March 31, 2017 from $3.6 million in the prior
year comparable period. The decrease is primarily
attributable to a decrease in salaries and benefits as a result of
the suspension of new student enrollments and a declining student
population.
Corporate and Other
This category includes unallocated expenses incurred on behalf
of the entire Company. Corporate and Other costs decreased by
$0.3 million, or 4.6%, to $7.4 million from $7.7 million,
respectively, as compared to the prior year comparable
period. The decrease in costs is mainly attributable to a
decline in salaries and benefits as the Company continues to align
its cost structure with changing need. Additionally,
included in the expenses for the three months ended March 31, 2017
are approximately $0.3 million of additional dormitory costs
directly relating to the closure of the Hartford, Connecticut
campus on December 31, 2016. The Hartford campus
included a lease for apartments utilized for student housing.
The costs associated with the complex were offset by students
taking classes at the Hartford, Connecticut campus. In
December of 2016 when the Hartford, Connecticut campus completed
its teach-out, the Company was left with the lease which extends
into 2019. Currently, costs associated with this lease are
being partially offset by rents received from students attending a
neighboring campus in East Windsor, Connecticut. Any
additional costs incurred under this lease which cannot be offset
by student population are being included in Corporate
overhead.
BALANCE SHEET INFORMATION
The Company had $19.9 million of cash, cash equivalents and
restricted cash at March 31, 2017 (which includes $11.2 million of
restricted cash) as compared to $47.7 million of cash, cash
equivalents and restricted cash as of December 31, 2016 (which
includes $22.6 million of restricted cash). This
decrease is primarily the result of a net loss during the three
months ended March 31, 2017 in combination with the repayment of
$44.3 million under the Company’s previous credit facility.
In addition, on March 31, 2017, the Company entered into a
secured credit agreement with Sterling National Bank pursuant to
which the Company obtained a revolving credit facility in the
aggregate principal amount of up to $55.0 million. The new
revolving credit facility will provide the Company increased
liquidity and is expected to yield approximately $3.0 million in
cost savings in 2018 resulting from more favorable interest rates
as compared to the previous credit facility.
Also, on March 14, 2017, the Company entered into a purchase and
sale agreement with Tambone Companies, LLC, pursuant to which the
Company has agreed to sell two of its three properties located in
West Palm Beach Florida for a cash purchase price of $16.3
million. After the quarter close, the Company entered into a
short term secured term loan in the amount of $8.0 million which
provides the Company with additional financial flexibility to
undertake certain strategic initiatives. The loan, which is
secured by a mortgage on the Company’s West Palm Beach, Florida
property, must be repaid upon the consummation of the sale of the
West Palm Beach, Florida property. The Company expects to
close on the sale of the West Palm Beach, Florida property in the
third quarter of 2017.
2017 OUTLOOK
The Company reaffirms the guidance provided on
March 1st, 2017 as follows:
- For the full year, the Company expects to achieve operating
income companywide, with the exception of closed campuses.
- For the full year, the Company expects to achieve low single
digit revenue growth in the Transportation and Skilled Trades
segment.
- In addition, the Company anticipates completing the previously
disclosed teach-out of the Northeast Philadelphia, Center City
Philadelphia, and West Palm Beach campuses, as well as the Brockton
and Lowell campuses which are new to the Transitional Segment in
the first quarter of 2017.
In addition, to reflect the revised HOPS segment
strategy, the Company is introducing the following guidance:
- Net income for the final nine months of the year.
- For the full year, the Company expects revenue to range from
essentially flat to low single digit declines for the HOPS
segment.
CONFERENCE CALL INFO
Lincoln will host a conference call today at
10:00 a.m. Eastern Daylight Time. The conference call can be
accessed by going to the IR portion of our website at
www.lincolnedu.com. To access the live webcast of the conference
call, please go to the investor relations section of Lincoln’s
website at http://www.lincolnedu.com. Participants can also
listen to the conference call by dialing 844-413-0946 (domestic) or
216-562-0456 (international) and providing access code 4091553.
Please log in or dial into the call at least 10 minutes prior to
the start time.
An archived version of the webcast will be
accessible for 90 days at http://www.lincolnedu.com. A replay
of the call will also be available for seven days by calling
855-859-2056 (domestic) or 404-537-3406 (international) and
providing access code 4091553.
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. The Company operates under three reportable
segments: Transportation and Skilled Trades, Healthcare and Other
Professions and Transitional. 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 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
projects 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.
(Tables to Follow)
|
|
|
Three Months
Ended |
|
March
31, |
|
(Unaudited) |
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
REVENUE |
$ |
65,279 |
|
|
$ |
70,644 |
|
COSTS AND
EXPENSES: |
|
|
|
Educational services and facilities |
|
32,709 |
|
|
|
37,122 |
|
Selling,
general and administrative |
|
38,324 |
|
|
|
40,155 |
|
Gain on
sale of assets |
|
(26 |
) |
|
|
(389 |
) |
Total
costs & expenses |
|
71,007 |
|
|
|
76,888 |
|
OPERATING LOSS |
|
(5,728 |
) |
|
|
(6,244 |
) |
OTHER: |
|
|
|
Interest
income |
|
31 |
|
|
|
64 |
|
Interest
expense |
|
(5,182 |
) |
|
|
(1,591 |
) |
Other
income |
|
- |
|
|
|
1,753 |
|
LOSS
BEFORE INCOME TAXES |
|
(10,879 |
) |
|
|
(6,018 |
) |
PROVISION FOR INCOME
TAXES |
|
50 |
|
|
|
50 |
|
NET LOSS |
$ |
(10,929 |
) |
|
$ |
(6,068 |
) |
Basic |
|
|
|
Net loss per
share |
$ |
(0.46 |
) |
|
$ |
(0.26 |
) |
Diluted |
|
|
|
Net loss per
share |
$ |
(0.46 |
) |
|
$ |
(0.26 |
) |
Weighted average number
of common shares outstanding:
|
|
|
|
Basic |
|
23,609 |
|
|
|
23,351 |
|
Diluted |
|
23,609 |
|
|
|
23,351 |
|
|
|
|
|
Other
data: |
|
|
|
|
|
|
|
EBITDA |
$ |
(3,576 |
) |
|
$ |
(1,064 |
) |
Depreciation and
amortization |
$ |
2,152 |
|
|
$ |
3,427 |
|
Number of campuses |
|
28 |
|
|
|
30 |
|
Average enrollment |
|
11,090 |
|
|
|
11,891 |
|
Stock-based
compensation |
$ |
361 |
|
|
$ |
373 |
|
Net cash used in
operating activities |
$ |
(11,474 |
) |
|
$ |
(9,169 |
) |
Net cash used in
investing activities |
$ |
(596 |
) |
|
$ |
(73 |
) |
Net cash used in
financing activities |
$ |
(287 |
) |
|
$ |
(9,012 |
) |
|
|
|
|
Selected
Consolidated Balance Sheet Data: |
March 31, 2017 |
|
(In thousands) |
|
|
|
|
|
Cash and
cash equivalents |
$ |
8,707 |
|
Current
assets |
|
59,336 |
|
Working
capital |
|
2,243 |
|
Total
assets |
|
136,909 |
|
Current
liabilities |
|
57,093 |
|
Long-term debt obligations, including current portion
|
|
29,156 |
|
Total
stockholders' equity |
|
44,149 |
|
|
|
|
(1) Reconciliation of Non-GAAP Financial
Measures
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 measurements not recognized in financial statements
presented in accordance with accounting principles generally
accepted in the United States of America (“GAAP”). We define
EBITDA as income (loss) from continuing operations before interest
expense (net of interest income), provision for income taxes and
depreciation and amortization. EBITDA is presented because we
believe it is a useful indicator of our performance and our ability
to make strategic acquisitions and meet capital expenditure and
debt service requirements. It is not, however, intended to
represent cash flows from operations as defined by GAAP and should
not be used as an alternative to net income (loss) as an indicator
of operating performance or to cash flow as a measure of
liquidity. EBITDA is not necessarily comparable to similarly
titled measures used by other companies.
Following is a reconciliation of net loss to
EBITDA:
|
|
|
Three Months Ended March
31, |
|
(Unaudited) |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
Net loss |
$ |
(10,929 |
) |
|
$ |
(6,068 |
) |
Interest
expense, net |
|
5,151 |
|
|
|
1,527 |
|
Provision
for income taxes |
|
50 |
|
|
|
50 |
|
Depreciation and amortization
|
|
2,152 |
|
|
|
3,427 |
|
EBITDA |
$ |
(3,576 |
) |
|
$ |
(1,064 |
) |
|
|
|
|
|
|
Three Months Ended
March 31, |
|
(Unaudited) |
|
Transportation and Skilled Trades |
|
Healthcare and Other Professions |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
2,068 |
|
|
$ |
3,369 |
|
|
$ |
163 |
|
|
$ |
1,737 |
|
Interest
expense, net |
|
(18 |
) |
|
|
(4 |
) |
|
|
- |
|
|
|
20 |
|
Provision
for income taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization
|
|
1,966 |
|
|
|
2,532 |
|
|
|
1 |
|
|
|
3 |
|
EBITDA |
$ |
4,016 |
|
|
$ |
5,897 |
|
|
$ |
164 |
|
|
$ |
1,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
(Unaudited) |
|
Transitional |
|
Corporate |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(569 |
) |
|
$ |
(3,642 |
) |
|
$ |
(12,591 |
) |
|
$ |
(7,532 |
) |
Interest
expense, net |
|
- |
|
|
|
77 |
|
|
|
5,169 |
|
|
|
1,434 |
|
Provision
for income taxes |
|
- |
|
|
|
- |
|
|
|
50 |
|
|
|
50 |
|
Depreciation and amortization |
|
27 |
|
|
|
706 |
|
|
|
158 |
|
|
|
186 |
|
EBITDA |
$ |
(542 |
) |
|
$ |
(2,859 |
) |
|
$ |
(7,214 |
) |
|
$ |
(5,862 |
) |
|
|
Three Months Ended March
31, |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
% Change |
|
|
Revenue: |
|
|
|
|
|
|
|
Transportation and
Skilled Trades |
$ |
42,168 |
|
|
$ |
42,271 |
|
|
-0.2 |
% |
|
|
Healthcare and Other
Professions |
$ |
18,836 |
|
|
$ |
19,809 |
|
|
-4.9 |
% |
|
|
Transitional |
|
4,275 |
|
|
|
8,564 |
|
|
-50.1 |
% |
|
|
Total |
$ |
65,279 |
|
|
$ |
70,644 |
|
|
-7.6 |
% |
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss): |
|
|
|
|
|
|
|
Transportation and
Skilled Trades |
$ |
2,051 |
|
|
$ |
3,367 |
|
|
-39.1 |
% |
|
|
Healthcare and Other
Professions |
$ |
162 |
|
|
$ |
1,755 |
|
|
-90.8 |
% |
|
|
Transitional |
|
(569 |
) |
|
|
(3,640 |
) |
|
84.4 |
% |
|
|
Corporate |
|
(7,372 |
) |
|
|
(7,726 |
) |
|
4.6 |
% |
|
|
Total |
$ |
(5,728 |
) |
|
$ |
(6,244 |
) |
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
Starts: |
|
|
|
|
|
|
|
Transportation and
Skilled Trades |
|
1,724 |
|
|
|
1,660 |
|
|
3.9 |
% |
|
|
Healthcare and Other
Professions |
|
1,001 |
|
|
|
1,113 |
|
|
-10.1 |
% |
|
|
Transitional |
|
132 |
|
|
|
458 |
|
|
-71.2 |
% |
|
|
Total |
|
2,857 |
|
|
|
3,231 |
|
|
-11.6 |
% |
|
|
|
|
|
|
|
|
|
|
Average
Population: |
|
|
|
|
|
|
|
Transportation and
Skilled Trades |
|
6,573 |
|
|
|
6,553 |
|
|
0.3 |
% |
|
|
Healthcare and Other
Professions |
|
3,633 |
|
|
|
3,745 |
|
|
-3.0 |
% |
|
|
Transitional |
|
884 |
|
|
|
1,593 |
|
|
-44.5 |
% |
|
|
Total |
|
11,090 |
|
|
|
11,891 |
|
|
-6.7 |
% |
|
|
|
|
|
|
|
|
|
|
End of Period
Population: |
|
|
|
|
|
|
|
Transportation and
Skilled Trades |
|
6,729 |
|
|
|
6,684 |
|
|
0.7 |
% |
|
|
Healthcare and Other
Professions |
|
3,755 |
|
|
|
3,858 |
|
|
-2.7 |
% |
|
|
Transitional |
|
774 |
|
|
|
1,560 |
|
|
-50.4 |
% |
|
|
Total |
|
11,258 |
|
|
|
12,102 |
|
|
-7.0 |
% |
|
|
|
|
|
|
|
|
|
|
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP, INVESTOR RELATIONS:
Doug Sherk, dsherk@evcgroup.com; 415-652-9100
Amanda Prior, aprior@evcgroup.com; 646-445-4800
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