Lincoln Educational Services Corporation (Nasdaq: LINC) today
announced operating and financial results for the fourth quarter
and full year ended December 31, 2022. In addition to providing its
financial outlook for 2023, the Company introduced three-year
growth objectives for financial performance driven by its business
transformation investments and campus program expansions.
Fourth Quarter 2022 Financial Highlights and Recent Operating
Developments
- Total Revenue of $91.8 million, up 4.5%; same school revenue up
4.8%
- Total student starts up 2.4%; same school student starts up
4.7%
- Adjusted EBITDA* of $15.7 million, up 7.4%
- Adjusted net income* of $9.9 million, up 20.7%
- Total liquidity* of $65 million and debt-free
- Repurchased an additional 489 thousand shares of common stock
for $2.7 million
- Converted the Series A preferred stock into common stock
thereby eliminating annual dividend payments of $1.2 million
- Launched first class under our Tesla partnership
- Entered into new corporate partnerships with Peterbilt,
Marriott Hotels International and Johnson Controls
*See Use of “Non-GAAP Financial Information” below.
“Lincoln returned to student start growth during our fourth
quarter and achieved strong financial results in its most
profitable quarter with both revenues and Adjusted EBITDA growing
in comparison to last year. In addition, student retention and
placement rates continued their positive trends and our graduation
rates reached a new company high. Over the past three years, we
have transformed Lincoln’s profitability and balance sheet. Now
with the success achieved to date with our hybrid teaching model,
centralized financial aid and program expansions, we have the
opportunity to accelerate our investment to build a more scalable
and higher return business,” said Scott Shaw, President &
CEO.
“Key to this strategy is our new hybrid teaching model which we
began to implement at our campuses in 2022. This model delivers our
programs with all of the hands-on learning on our campuses with a
greater component of classroom work delivered through online
instruction. The model also standardizes our programs across
campuses, on-campus timeslots (morning, afternoon, & evening)
with consistent start dates which provides greater flexibility and
efficiencies. The roll-out of our hybrid model creates the
opportunity to efficiently add over ten new program replications
across our existing campuses over the next two years. This results
in organic growth with the fastest and highest return on investment
as we leverage our existing infrastructure, campus management and
market knowledge. Upon reaching their full run-rate after
approximately three years of operation, each of these ten programs
is expected to provide an average of one million dollars in added
profitability annually.”
“Pursuing this strategy requires a higher level of investment
during 2023 in terms of both operating and capital expenditures,”
continued Mr. Shaw. “Completing the transition to our hybrid
teaching model by the end of 2023 will result in increased
instructional costs over the short term, but is expected to lead to
greater efficiency beginning in 2024. Our investment in
centralizing our financial aid process is extending into 2023 and
we will also incur expenses associated with the initial launch of
our new programs. We are forecasting modest revenue
growth for the full year based on our forecast for an increase in
new student starts and higher revenue per student. Our efforts to
roll-out our hybrid teaching model, complete the centralization of
our financial aid process, and launch eight new programs including
program expansions across our campuses will depress our
profitability resulting in a forecast for Adjusted EBITDA of $19 -
$24 million for 2023. We will also significantly increase our
capital expenditures to $35 - $40 million to advance our growth
plans, including our new campus in Atlanta. The anticipated closing
of the sale of our Nashville campus in the second quarter will
result in approximately $35 million in gross proceeds and generate
a significant net gain.”
“We expect successful execution of these plans will lead to
significantly higher profit margins beginning in 2024 with a more
efficient and scalable platform to drive sustainable growth
thereafter. Continued strong demand for our programs combined with
the efficiency and growth from these investments, including the
early contribution from our new Atlanta, GA location, enable us to
forecast that our Adjusted EBITDA will approximately double from
2022 levels by 2025. We also continue to evaluate additional
locations as part of the plan to open five new campuses optimized
for our new hybrid delivery model in the next five years, which may
include the relocation of current Lincoln campuses such as
Nashville.”
The Company also announced that the Board of Directors has
authorized the continuation of the share repurchase program
originally established on May 24, 2022. To date, the Company has
made repurchases of approximately $9.4 million of its common stock.
The Board has extended the share repurchase program for an
additional twelve months and has authorized the repurchase of an
additional $10.0 million of the Company’s common stock, which
provides us with the ability to repurchase an additional $30.6
million going forward through May 2024.
Purchases may be made in open-market transactions, in block
transactions on or off an exchange, in privately negotiated
transactions or by other means as determined by the Company’s
management and in accordance with the regulations of the Securities
and Exchange Commission. The Company retains the right to limit,
terminate or extend the share repurchase program at any time
without prior notice.
“Our Board of Directors’ decision to continue the share
repurchase program reflects our continued commitment to return
value to our shareholders,” Mr. Shaw said. “Given the strength of
our balance sheet, we are able to utilize this program to enhance
shareholder value without compromising our ability to continue to
invest in high growth opportunities while maintaining significant
financial flexibility.”
2022 FOURTH QUARTER FINANCIAL
RESULTS(Quarter ended December 31, 2022 compared
to December 31, 2021)
- Revenue increased
$4.0 million, or 4.5% to $91.8 million from $87.8 million in the
prior year. Excluding Transitional segment revenue of $1.6 million
in the current quarter and $1.8 million in the prior comparable
period, revenues would have increased $4.2 million. The revenue
increase was driven by a 6.8% increase in average revenue per
student which more than offset the 2.3% decline in the average
student population. Additionally, during the quarter, we
experienced a 4.7% increase in student starts further contributing
to the growth. The higher revenue per student resulted from tuition
increases along with the newly-implemented hybrid teaching model
which delivers higher daily revenue rates in certain programs as
these programs overall duration can be shortened.
- Educational services and
facilities expense increased $1.7 million, or 5.0% to
$36.5 million from $34.8 million in the prior year. The
Transitional segment educational services and facilities expense
were $0.7 million for the current and prior quarter. Increased
costs were primarily concentrated in instructional and facilities
expense, the main drivers of which were higher instructional
staffing levels as the Company transitions to the new hybrid
teaching model, combined with higher costs in consumables and books
and tools due to rising inflation. Facilities expense increased
mainly due to additional rent of $0.3 million associated with the
leasing of the Denver, CO and Grand Prairie, TX campuses as a
result of the sale leaseback transaction executed in the fourth
quarter of 2021, in addition to an increase in repairs and
maintenance expense quarter over quarter.
- Selling, general and administrative expense
increased $2.1 million, or 5.2% to $42.9 million from $40.8 million
in the prior year. Excluding Transitional segment selling, general
and administrative expense of $1.0 million in the current quarter
and $0.8 million in the prior quarter, the selling, general and
administrative expense would have increased $1.9 million. The
increase was driven by several factors including bad debt expense,
medical costs driven by higher claims, severance expense incurred
to better align the Company’s cost structure in certain functions,
costs incurred for the new Atlanta, Georgia campus and one-time
costs incurred for teaching the remaining students at the
Somerville, Massachusetts campus. Partially offsetting these costs
was a decrease in incentive compensation.
- Impairment of long-lived assets resulted in a
pre-tax non-cash charge of $1.0 million determined by annual
testing, which examined current market value as compared to the
current carrying value. In the prior year there was an impairment
charge of $0.7 million, resulting from a one-time non-cash
impairment charge triggered by an adjustment to fair market value
for a campus sold during the second quarter of 2022.
RECENT BUSINESS DEVELOPMENTS
Opening of New Atlanta, Georgia Campus. On June
30, 2022, the Company executed a lease for a 55,000 square foot
facility to house its second Metro-Atlanta area campus and during
the year-ended December 31, 2022, the Company incurred
approximately $0.4 million in start-up costs. While the
build-out of the campus is advancing according to the Company’s
plan, regulatory approval timelines have changed and the new campus
is now expected to open by the end of the first quarter of
2024.
Share Repurchase Program. During the fourth
quarter, the Company repurchased 489,011 shares of its common stock
for approximately $2.7 million. Since the adoption of the plan in
May 2022, the Company has repurchased a total of 1,572,414 shares
of its common stock for a total investment of approximately $9.4
million. As reported above, the Company’s Board of
Directors has authorized continuation of the repurchase
program.
Closing of Somerville, Massachusetts Campus. As
previously reported, on November 3, 2022, the Board of Directors
approved a plan to close the Somerville, Massachusetts campus. The
owner of the Somerville property has exercised an option to
terminate the lease on December 8, 2023 and the Company has since
determined not to pursue relocating the campus in this geographic
region. For the year ended December 31, 2022, campus revenues were
$6.8 million, representing 2.0% of total revenues, with an
operating loss of $0.4 million. The Company is no longer admitting
new students at this campus and has developed a plan to deliver
instruction for the approximately 200 students still remaining at
this campus through the end of their programs. Total costs to close
the campus including the teach-out will be approximately $2.0
million and currently the Company is on track to complete the
teach-out before the end of 2023. As of December 31, 2022, the
Somerville, Massachusetts campus is the only campus included in the
Transitional segment.
Series A convertible preferred stock. In
November, the Company converted the aggregate 12,700 shares of
Series A preferred stock outstanding into 5,381,356 shares of
common stock thereby eliminating the obligation to pay quarterly
dividends generating annual savings of $1.2 million.
FOURTH QUARTER SEGMENT RESULTS
Transportation and Skilled Trades
SegmentRevenue increased $2.9 million, or 4.6% to $65.8
million from $62.9 million in the prior year. Revenue increased due
to the 6.0% increase in average revenue per student, which
more than offset a 1.7% decline in average student population for
the quarter. Additionally, during the quarter, the Company
experienced a 1.2% increase in student starts further contributing
to the growth. The higher revenue per student was driven by tuition
increases and the greater efficiency through the newly-implemented
hybrid teaching model as previously described in the overall
Company results.
Adjusted EBITDA was $18.0 million compared to $17.9 million in
the prior year. The current quarter includes $0.5 million of
severance and stock compensation related to severance.
Healthcare and Other Professions SegmentRevenue
increased by $1.3 million, or 5.6% to $24.4 million from $23.1
million in the prior year. Revenue increased due to the 8.8%
increase in average revenue per student, which more than offset a
3.7% decline in average student population for the quarter.
Additionally, during the quarter, student starts increased 9.1%
further contributing to the growth. The higher revenue per student
was driven by tuition increases and the greater efficiency
through the newly-implemented hybrid teaching model as previously
described in the overall Company results.
Adjusted EBITDA was $4.2 million compared to $4.1 million in the
prior year. The current quarter includes a one-time non-cash
long-lived asset impairment of $1.0 million.
Transitional Segment
Revenue was $1.6 million compared to $1.8 million in the prior
year.
Corporate and OtherThis category includes
unallocated expenses incurred on behalf of the entire Company.
Corporate and other expenses were $7.6 million and $8.5 million in
the prior year after excluding a $22.5 million gain from
the sale-leaseback transactions, partially offset by a one-time
non-cash impairment charge of $0.7 million. The decrease in
the current quarter was driven by a reduction in incentive
compensation, partially offset by increased medical costs due to
additional claims and an uptick in rent expense relating to the new
Atlanta, Georgia campus.
YEAR-END FINANCIAL RESULTS(Period
ended December 31, 2022 compared to December
31, 2021)
- Total revenue
increased $13.0 million, or 3.9%, to $348.3 million, compared
to $335.3 million.
- Transportation and
Skilled Trades segment revenue increased $9.4 million, or 3.9%,
to $249.9 million, compared to $240.5 million.
- The Healthcare and
Other Professions segment revenue increased $3.5 million, or 4.0%,
to $91.5 million, compared to $88.0 million.
- Transitional segment
revenue remained essentially flat at $6.8 million year over
year.
FULL YEAR 2023 OUTLOOK
Lincoln enters 2023 with a strong balance sheet including total
cash and cash equivalents, restricted cash and short-term
investments of $65.0 million. The Company is also anticipating
increasing its cash position through the contemplated consummation
of the sale of the Nashville, Tennessee campus, which is
currently expected to close in the second quarter of 2023. In
addition to Lincoln’s increased liquidity on hand, the Company is
also looking to enter into a new credit facility to further
increase its overall available liquidity. Lincoln will utilize this
strong balance sheet to increase its level of investment in growth
strategies and operating efficiencies as well as to return capital
to shareholders through the ongoing repurchase of shares in
accordance with the expansion of the share repurchase program
authorization to $40.0 million.
Specific operating and financial guidance for the coming year is
as follows:
- Revenue in the range of $345 million to $360 million
- Student start growth in the range of 5% to 10%
- Adjusted EBITDA* in the range of $19 million to $24
million
- Adjusted Net income* in the range of $7 million to $11
million
- Capital expenditures in the range of $35 million to $40
million
*See Use of “Non-GAAP Financial Information” below
The 2023 guidance excludes the impact of the new Atlanta,
Georgia campus, with the exception of capital expenditures. In
addition, guidance further excludes costs associated with the
Company’s Transitional segment, one-time expenses not considered
part of the Company’s normal business operations, and gain realized
on the sale of the Nashville, TN property.
The Company is also providing additional information as to the
progress of operations through 2023. This information represents
management’s current expectations for the upcoming year and may be
revised in-line with the developing business environment.
RevenueIn line with historic seasonality, which
typically yields better results in the second half of the year, we
expect revenue growth in the first half of the year to be in the
low single digits, with slightly higher growth in the second half
of the year.
Operating ExpensesOperating expenses are
expected to be in the mid to low $80 million range with the
exception occurring in third quarter, where we expect an increase
into the mid to low $90 million range in line with historic
seasonality.
OtherInterest income, stock-based compensation
and depreciation and amortization are expected to be approximately
$1.0 million, $2.5 million and $9.0 million, respectively. Interest
income and stock-based compensation expense are expected to be
spread evenly throughout the year, with 60% of the depreciation
expense occurring in the second half of the year. The effective tax
rate for the year is projected to be 28.5%.
CONFERENCE CALL INFOLincoln 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 relations section of Lincoln’s
website at http://www.lincolntech.edu. Participants may also
register via teleconference at: Q4 2022 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 a minimum 15 minutes before 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 recent high school graduates and working adult’s
degree and diploma programs in five principal areas of study:
health sciences, automotive technology, skilled trades, hospitality
services and business and information technology. Lincoln has
provided the nation’s workforce with skilled technicians since its
inception in 1946 and currently operates 22 campuses in 14 states
under 4 brands: Lincoln College of Technology, Lincoln Technical
Institute, Lincoln Culinary Institute and Euphoria Institute of
Beauty Arts and Sciences. For more information, please go to
www.lincolntech.edu.
FORWARD-LOOKING
STATEMENTSStatements 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 the COVID-19 pandemic or other epidemics or
pandemics, our inability to close on the sale of our Nashville
campus; 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 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) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
REVENUE |
$ |
91,778 |
|
|
$ |
87,816 |
|
|
$ |
348,287 |
|
|
$ |
335,336 |
|
COSTS AND
EXPENSES: |
|
|
|
|
|
|
|
Educational services and facilities |
|
36,513 |
|
|
|
34,788 |
|
|
|
148,746 |
|
|
|
138,931 |
|
Selling, general and administrative |
|
42,888 |
|
|
|
40,762 |
|
|
|
182,391 |
|
|
|
168,923 |
|
Gain on disposition of assets |
|
- |
|
|
|
(22,479 |
) |
|
|
(177 |
) |
|
|
(22,479 |
) |
Impairment of long-lived assets |
|
1,049 |
|
|
|
700 |
|
|
|
1,049 |
|
|
|
700 |
|
Total costs & expenses |
|
80,450 |
|
|
|
53,771 |
|
|
|
332,009 |
|
|
|
286,075 |
|
OPERATING INCOME |
|
11,328 |
|
|
|
34,045 |
|
|
|
16,278 |
|
|
|
49,261 |
|
OTHER: |
|
|
|
|
|
|
|
Interest income |
|
318 |
|
|
|
- |
|
|
|
318 |
|
|
|
- |
|
Interest expense |
|
(47 |
) |
|
|
(1,142 |
) |
|
|
(160 |
) |
|
|
(2,015 |
) |
INCOME BEFORE INCOME TAXES |
|
11,599 |
|
|
|
32,903 |
|
|
|
16,436 |
|
|
|
47,246 |
|
PROVISION FOR INCOME TAXES |
|
3,041 |
|
|
|
8,939 |
|
|
|
3,802 |
|
|
|
12,528 |
|
NET
INCOME |
$ |
8,558 |
|
|
$ |
23,964 |
|
|
$ |
12,634 |
|
|
$ |
34,718 |
|
PREFERRED
STOCK DIVIDENDS |
|
196 |
|
|
|
304 |
|
|
|
1,111 |
|
|
|
1,219 |
|
INCOME
AVAILABLE TO COMMON SHAREHOLDERS |
$ |
8,362 |
|
|
$ |
23,660 |
|
|
$ |
11,523 |
|
|
$ |
33,499 |
|
Basic and
diluted |
|
|
|
|
|
|
|
Net income per common share |
$ |
0.27 |
|
|
$ |
0.73 |
|
|
$ |
0.36 |
|
|
$ |
1.04 |
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
26,436 |
|
|
|
25,180 |
|
|
|
25,879 |
|
|
|
25,081 |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA (1) |
$ |
15,659 |
|
|
$ |
14,582 |
|
|
$ |
28,167 |
|
|
$ |
37,511 |
|
Depreciation
and amortization |
$ |
1,745 |
|
|
$ |
1,520 |
|
|
$ |
6,364 |
|
|
$ |
7,140 |
|
Number of
campuses |
|
22 |
|
|
|
22 |
|
|
|
22 |
|
|
|
22 |
|
Average
enrollment |
|
13,230 |
|
|
|
13,599 |
|
|
|
12,894 |
|
|
|
12,899 |
|
Stock-based
compensation |
$ |
745 |
|
|
$ |
796 |
|
|
$ |
3,111 |
|
|
$ |
2,889 |
|
Net cash
provided by operating activities |
$ |
270 |
|
|
$ |
9,697 |
|
|
$ |
882 |
|
|
$ |
27,447 |
|
Net cash
(used in) provided by investing activities |
$ |
(16,691 |
) |
|
$ |
43,100 |
|
|
$ |
(21,354 |
) |
|
$ |
37,848 |
|
Net cash
used in financing activities |
$ |
(2,911 |
) |
|
$ |
(16,640 |
) |
|
$ |
(12,548 |
) |
|
$ |
(20,014 |
) |
|
|
|
|
|
|
|
|
Selected Consolidated Balance Sheet Data: |
December 31,
2022 |
|
|
(Unaudited) |
|
|
|
|
Cash and cash equivalents |
$ |
46,074 |
|
Restricted
Cash |
|
4,213 |
|
Short-term
investments |
|
14,758 |
|
Current
assets |
|
114,135 |
|
Working
capital |
|
59,115 |
|
Total
assets |
|
291,566 |
|
Current
liabilities |
|
55,020 |
|
Total
stockholders' equity |
|
144,877 |
|
|
|
|
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, same school revenue 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 same school revenue as Total Company revenue less
Transitional segment revenue.
- We define Total liquidity as the Company’s cash and cash
equivalents, short-term investments and restricted cash.
EBITDA, Adjusted EBITDA, Adjusted net income, same school
revenue and total liquidity are presented because we believe they
are useful indicators of our performance and our 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, same school revenue
and total liquidity are not necessarily comparable to similarly
titled measures used by other companies.
Following is a reconciliation of net income (loss) to EBITDA,
Adjusted EBITDA, Adjusted net income, same school revenue and total
liquidity:
|
Three Months
Ended December 31, |
|
Year-Ended
December 31, |
|
(Unaudited) |
|
(Unaudited) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
8,558 |
|
|
$ |
23,964 |
|
|
$ |
12,634 |
|
|
$ |
34,718 |
|
Interest (income) expense, net |
|
(271 |
) |
|
|
1,142 |
|
|
|
(158 |
) |
|
|
2,015 |
|
Provision for income taxes |
|
3,041 |
|
|
|
8,939 |
|
|
|
3,802 |
|
|
|
12,528 |
|
Depreciation and amortization |
|
1,745 |
|
|
|
1,520 |
|
|
|
6,364 |
|
|
|
7,140 |
|
EBITDA |
|
13,073 |
|
|
|
35,565 |
|
|
|
22,642 |
|
|
|
56,401 |
|
Stock compensation expense |
|
745 |
|
|
|
796 |
|
|
|
3,111 |
|
|
|
2,889 |
|
Gain on sale of asset |
|
- |
|
|
|
(22,479 |
) |
|
|
(177 |
) |
|
|
(22,479 |
) |
Severance |
|
364 |
|
|
|
- |
|
|
|
765 |
|
|
|
- |
|
New campus start-up costs |
|
230 |
|
|
|
- |
|
|
|
369 |
|
|
|
- |
|
Impairment of long-lived assets |
|
1,049 |
|
|
|
700 |
|
|
|
1,049 |
|
|
|
700 |
|
Transitional segment |
|
198 |
|
|
|
- |
|
|
|
408 |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
15,659 |
|
|
$ |
14,582 |
|
|
$ |
28,167 |
|
|
$ |
37,511 |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
|
(Unaudited) |
|
Transportation and Skilled Trades |
|
Healthcare and Other Professions |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
16,227 |
|
|
$ |
16,632 |
|
$ |
2,865 |
|
|
$ |
3,941 |
|
Interest expense, net |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
1,336 |
|
|
|
1,238 |
|
|
243 |
|
|
|
135 |
|
EBITDA |
|
17,563 |
|
|
|
17,870 |
|
|
3,108 |
|
|
|
4,076 |
|
Stock compensation expense |
|
108 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Loss on sale of asset |
|
22 |
|
|
|
1 |
|
|
6 |
|
|
|
1 |
|
Severance |
|
364 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
New campus start-up costs |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
1,049 |
|
|
|
- |
|
Transitional segment |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
18,035 |
|
|
$ |
17,870 |
|
$ |
4,157 |
|
|
$ |
4,076 |
|
|
|
|
|
|
|
|
|
|
Transitional |
|
Corporate |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(202 |
) |
|
$ |
160 |
|
$ |
(10,332 |
) |
|
$ |
3,231 |
|
Interest (income) expense, net |
|
- |
|
|
|
- |
|
|
(271 |
) |
|
|
1,142 |
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
3,041 |
|
|
|
8,939 |
|
Depreciation and amortization |
|
4 |
|
|
|
8 |
|
|
162 |
|
|
|
139 |
|
EBITDA |
|
(198 |
) |
|
|
168 |
|
|
(7,400 |
) |
|
|
13,451 |
|
Stock compensation expense |
|
- |
|
|
|
- |
|
|
637 |
|
|
|
796 |
|
Gain on sale of asset |
|
- |
|
|
|
- |
|
|
- |
|
|
|
(22,479 |
) |
Severance |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
New campus start-up costs |
|
- |
|
|
|
- |
|
|
230 |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
- |
|
|
|
700 |
|
Transitional segment |
|
198 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
- |
|
|
$ |
168 |
|
$ |
(6,533 |
) |
|
$ |
(7,532 |
) |
|
|
|
|
|
|
|
|
|
Year-Ended
December 31, |
|
(Unaudited) |
|
Transportation and Skilled Trades |
|
Healthcare and Other Professions |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
42,335 |
|
|
$ |
52,055 |
|
$ |
7,189 |
|
|
$ |
11,739 |
|
Interest expense, net |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
5,069 |
|
|
|
6,155 |
|
|
685 |
|
|
|
464 |
|
EBITDA |
|
47,404 |
|
|
|
58,210 |
|
|
7,874 |
|
|
|
12,203 |
|
Stock compensation expense |
|
116 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Loss on sale of asset |
|
22 |
|
|
|
1 |
|
|
6 |
|
|
|
1 |
|
Severance |
|
364 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
New campus start-up costs |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
1,049 |
|
|
|
- |
|
Transitional segment |
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
47,906 |
|
|
$ |
58,211 |
|
$ |
8,929 |
|
|
$ |
12,204 |
|
|
|
|
|
|
|
|
|
|
Transitional |
|
Corporate |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(430 |
) |
|
$ |
105 |
|
$ |
(36,460 |
) |
|
$ |
(29,181 |
) |
Interest (income) expense, net |
|
- |
|
|
|
- |
|
|
(158 |
) |
|
|
2,015 |
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
3,802 |
|
|
|
12,528 |
|
Depreciation and amortization |
|
22 |
|
|
|
36 |
|
|
588 |
|
|
|
485 |
|
EBITDA |
|
(408 |
) |
|
|
141 |
|
|
(32,228 |
) |
|
|
(14,153 |
) |
Stock compensation expense |
|
- |
|
|
|
- |
|
|
2,995 |
|
|
|
2,889 |
|
Gain on sale of asset |
|
- |
|
|
|
- |
|
|
(205 |
) |
|
|
(22,481 |
) |
Severance |
|
- |
|
|
|
- |
|
|
401 |
|
|
|
- |
|
New campus start-up costs |
|
- |
|
|
|
- |
|
|
369 |
|
|
|
- |
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
- |
|
|
|
700 |
|
Transitional segment |
|
408 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Adjusted
EBITDA |
$ |
- |
|
|
$ |
141 |
|
$ |
(28,668 |
) |
|
$ |
(33,045 |
) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year-Ended |
|
December
31, |
|
December
31, |
|
(Unaudited) |
|
(Unaudited) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net
income |
$ |
8,558 |
|
|
$ |
23,964 |
|
|
$ |
12,634 |
|
|
$ |
34,718 |
|
|
|
|
|
|
|
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
Gain on
sale of asset |
|
- |
|
|
|
(22,479 |
) |
|
|
(177 |
) |
|
|
(22,479 |
) |
Impairment
of long-lived assets |
|
1,049 |
|
|
|
700 |
|
|
|
1,049 |
|
|
|
700 |
|
Severance
and accelerated stock vesting |
|
472 |
|
|
|
- |
|
|
|
1,263 |
|
|
|
- |
|
New campus start-up costs |
|
230 |
|
|
|
- |
|
|
|
369 |
|
|
|
- |
|
Transitional
segment |
|
198 |
|
|
|
- |
|
|
|
408 |
|
|
|
- |
|
Total
adjustments |
|
1,949 |
|
|
|
(21,779 |
) |
|
|
2,912 |
|
|
|
(21,779 |
) |
Income tax
effect |
|
(561 |
) |
|
|
6,055 |
|
|
|
(839 |
) |
|
|
6,055 |
|
Adjusted net
income, non-GAAP |
$ |
9,946 |
|
|
$ |
8,240 |
|
|
$ |
14,707 |
|
|
$ |
18,994 |
|
|
|
|
|
|
|
|
|
GAAP
effective income tax rate |
|
28.8 |
% |
|
|
27.8 |
% |
|
|
28.8 |
% |
|
|
27.8 |
% |
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
|
(Unaudited) |
|
Total |
|
Total |
|
%
Change |
|
Company |
|
Company |
|
Same School Basis |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
Total
Company Revenue |
$ |
91,778 |
|
|
$ |
87,816 |
|
|
|
Less:
Transitional Revenue |
|
(1,553 |
) |
|
|
(1,762 |
) |
|
|
Same school revenue |
$ |
90,225 |
|
|
$ |
86,054 |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-Ended
December 31, |
|
(Unaudited) |
|
Total |
|
Total |
|
%
Change |
|
Company |
|
Company |
|
Same School Basis |
|
|
2022 |
|
|
|
2021 |
|
|
2022 |
|
Total
Company Revenue |
$ |
348,287 |
|
|
$ |
335,336 |
|
|
|
Less:
Transitional Revenue |
|
(6,847 |
) |
|
|
(6,807 |
) |
|
|
Same school revenue |
$ |
341,440 |
|
|
$ |
328,529 |
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
As
of |
|
|
|
|
|
December 31, 2022 |
Cash and cash equivalents |
|
|
|
|
$ |
46,074 |
Restricted
cash |
|
|
|
|
|
4,213 |
Short-term
investments |
|
|
|
|
|
14,758 |
Total Liquidity |
|
|
|
|
$ |
65,045 |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
% Change |
Revenue: |
|
|
|
|
|
Transportation and Skilled Trades |
$ |
65,817 |
|
|
$ |
62,945 |
|
4.6 |
% |
Healthcare
and Other Professions |
|
24,408 |
|
|
|
23,109 |
|
5.6 |
% |
Transitional |
|
1,553 |
|
|
|
1,762 |
|
-11.9 |
% |
Total |
$ |
91,778 |
|
|
$ |
87,816 |
|
4.5 |
% |
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
Transportation and Skilled Trades |
$ |
16,227 |
|
|
$ |
16,632 |
|
-2.4 |
% |
Healthcare
and Other Professions |
|
2,865 |
|
|
|
3,941 |
|
-27.3 |
% |
Transitional |
|
(202 |
) |
|
|
160 |
|
-226.3 |
% |
Corporate |
|
(7,562 |
) |
|
|
13,312 |
|
-156.8 |
% |
Total |
$ |
11,328 |
|
|
$ |
34,045 |
|
-66.7 |
% |
|
|
|
|
|
|
Starts: |
|
|
|
|
|
Transportation and Skilled Trades |
|
1,485 |
|
|
|
1,467 |
|
1.2 |
% |
Healthcare
and Other Professions |
|
1,265 |
|
|
|
1,160 |
|
9.1 |
% |
Transitional |
|
36 |
|
|
|
94 |
|
-61.7 |
% |
Total |
|
2,786 |
|
|
|
2,721 |
|
2.4 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Transportation and Skilled Trades |
|
8,934 |
|
|
|
9,087 |
|
-1.7 |
% |
Healthcare
and Other Professions |
|
4,037 |
|
|
|
4,191 |
|
-3.7 |
% |
Transitional |
|
259 |
|
|
|
321 |
|
-19.3 |
% |
Total |
|
13,230 |
|
|
|
13,599 |
|
-2.7 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Transportation and Skilled Trades |
|
8,237 |
|
|
|
8,648 |
|
-4.8 |
% |
Healthcare
and Other Professions |
|
3,959 |
|
|
|
4,093 |
|
-3.3 |
% |
Transportation |
|
192 |
|
|
|
318 |
|
-39.6 |
% |
Total |
|
12,388 |
|
|
|
13,059 |
|
-5.1 |
% |
|
|
|
|
|
|
|
Year-Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
% Change |
Revenue: |
|
|
|
|
|
Transportation and Skilled Trades |
$ |
249,905 |
|
|
$ |
240,531 |
|
|
3.9 |
% |
Healthcare
and Other Professions |
|
91,535 |
|
|
|
87,998 |
|
|
4.0 |
% |
Transitional |
|
6,847 |
|
|
|
6,807 |
|
|
0.6 |
% |
Total |
$ |
348,287 |
|
|
$ |
335,336 |
|
|
3.9 |
% |
|
|
|
|
|
|
Operating Income (Loss): |
|
|
|
|
|
Transportation and Skilled Trades |
$ |
42,335 |
|
|
$ |
52,055 |
|
|
-18.7 |
% |
Healthcare
and Other Professions |
|
7,189 |
|
|
|
11,740 |
|
|
-38.8 |
% |
Transitional |
|
(430 |
) |
|
|
105 |
|
|
-509.5 |
% |
Corporate |
|
(32,816 |
) |
|
|
(14,639 |
) |
|
-124.2 |
% |
Total |
$ |
16,278 |
|
|
$ |
49,261 |
|
|
-67.0 |
% |
|
|
|
|
|
|
Starts: |
|
|
|
|
|
Transportation and Skilled Trades |
|
9,831 |
|
|
|
10,291 |
|
|
-4.5 |
% |
Healthcare
and Other Professions |
|
4,710 |
|
|
|
4,666 |
|
|
0.9 |
% |
Transitional |
|
379 |
|
|
|
445 |
|
|
-14.8 |
% |
Total |
|
14,920 |
|
|
|
15,402 |
|
|
-3.1 |
% |
|
|
|
|
|
|
Average Population: |
|
|
|
|
|
Transportation and Skilled Trades |
|
8,629 |
|
|
|
8,505 |
|
|
1.5 |
% |
Leave of
Absence - COVID-19 |
|
- |
|
|
|
(12 |
) |
|
100.0 |
% |
Transportation and Skilled Trades Excluding Leave of Absence -
COVID-19 |
|
8,629 |
|
|
|
8,493 |
|
|
1.6 |
% |
|
|
|
|
|
|
Healthcare
and Other Professions |
|
3,973 |
|
|
|
4,123 |
|
|
-3.6 |
% |
Leave of
Absence - COVID-19 |
|
- |
|
|
|
(33 |
) |
|
100.0 |
% |
Healthcare
and Other Professions Excluding Leave of Absence - COVID-19 |
|
3,973 |
|
|
|
4,090 |
|
|
-2.9 |
% |
|
|
|
|
|
|
Transitional |
|
292 |
|
|
|
316 |
|
|
-7.6 |
% |
Leave of
Absence - COVID-19 |
|
- |
|
|
|
- |
|
|
0.0 |
% |
Transitional
Excluding Leave of Absence - COVID-19 |
|
292 |
|
|
|
316 |
|
|
-7.6 |
% |
|
|
|
|
|
|
Total |
|
12,894 |
|
|
|
12,944 |
|
|
-0.4 |
% |
Total Excluding Leave of Absense - COVID-19 |
|
12,894 |
|
|
|
12,899 |
|
|
-0.0 |
% |
|
|
|
|
|
|
End
of Period Population: |
|
|
|
|
|
Transportation and Skilled Trades |
|
8,237 |
|
|
|
8,648 |
|
|
-4.8 |
% |
Healthcare
and Other Professions |
|
3,959 |
|
|
|
4,093 |
|
|
-3.3 |
% |
Transportation |
|
192 |
|
|
|
318 |
|
|
-39.6 |
% |
Total |
|
12,388 |
|
|
|
13,059 |
|
|
-5.1 |
% |
|
|
|
|
|
|
LINCOLN EDUCATIONAL SERVICES
CORPORATIONBrian Meyers, CFO973-736-9340
EVC GROUP LLCInvestor Relations: Michael
Polyviou, mpolyviou@evcgroup.com, 732-933-2755Media Relations: Tom
Gibson, 201-476-0322
Lincoln Educational Serv... (NASDAQ:LINC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Lincoln Educational Serv... (NASDAQ:LINC)
Historical Stock Chart
From Sep 2023 to Sep 2024