LINC 8-K
Lincoln Educational Services Corp (LINC)
8-K
2025-05-12
For: 2025-05-12
View Original
Added on
April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 12, 2025
(Exact name of registrant as specified in its charter)
|
|
|
|
||
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (973 )
736-9340
| Not applicable |
|
(Former name or former address, if changed since last report)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following
provisions:
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule
12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. |
Results of Operations and Financial Condition.
|
On May 12, 2025, Lincoln Educational Services Corporation (the “Company”) issued a press release announcing financial results for the first quarter
ended March 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated in this Item 2.02 by reference.
The information contained under this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be
deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained under this Item 2.02 in this Current Report on
Form 8-K, including Exhibit 99.1, shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, unless specifically identified therein as being
incorporated therein by reference. The furnishing of the information under this Item 2.02 in this Current Report is not intended to, and does not, constitute a determination or admission by the Company that the information contained under this
Item 2.02 in this Current Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
| Item 9.01 |
Financial Statements and Exhibits.
|
(d) Exhibits
|
Press release of Lincoln Educational Services Corporation dated May 12, 2025
|
||
|
104
|
Cover Page Interactive Data File (embedded within the inline XBRL document).
|
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
LINCOLN EDUCATIONAL SERVICES CORPORATION
|
|||
|
Date: May 12, 2025
|
|||
|
By:
|
/s/ Brian K. Meyers
|
||
| Name: |
Brian K. Meyers | ||
| Title: | Executive Vice President, Chief Financial Officer and Treasurer
|
||
Exhibit 99.1
Lincoln Educational Services Reports First Quarter Financial Results;
Double Digit Growth in Revenue and Student Starts,
Increased Outlook for Full Year 2025
Conference Call Today at 10 a.m. Eastern Standard Time
PARSIPPANY, N.J., May 12, 2025 – Lincoln
Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the first quarter ended March 31, 2025, as well as recent business developments.
First Quarter 2025 Financial and Operational Highlights
| • |
Revenue increased by 13.7% to $117.5 million
|
| • |
Student starts grew by 16.2%, starts increased 20.9% excluding the Transitional segment
|
| • |
Quarter-end student population rose by 15.2%, or 18.3% excluding the Transitional segment
|
| • |
Adjusted EBITDA of $10.6 million, compared to $6.5 million
|
| • |
Net income of $1.9 million, compared to $0.2 million net loss
|
| • |
Operating leverage gains across instructional and marketing expenses
|
| • |
Total liquidity of nearly $90 million, with no debt outstanding as of March 31, 2025
|
| • |
2025 financial guidance raised based on strong first quarter results and current trends
|
A complete listing of Lincoln’s non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Developments
| • |
In March, Lincoln successfully completed the transition of all existing programs at its Nashville, Tennessee campus to a new state-of-the-art facility. The new facility is designed for enhanced
operational efficiency through Lincoln’s 10.0 hybrid education delivery model and will also accommodate the launch of two additional high-demand programs this year.
|
| • |
The Company amended its credit agreement in March, increasing the size of its revolving credit facility from $40 million to $60 million and expanding the accordion feature from $20 million to $25
million. This amendment strengthens Lincoln’s financial flexibility and is available to support the Company’s strategic growth initiatives.
|
“We delivered a strong start to 2025 with exceptional student start growth, double digit revenue growth and a 63% increase in adjusted EBITDA”, said Scott Shaw, President
and CEO. “Our growth reflects the continued execution of our expansion strategy, while operational improvements have enhanced the scalability of our platform and improved our profitability.”
1
Given our strong first quarter performance and positive momentum, we are raising our full-year guidance”.
“New campus development and program replications remain central to our growth. We successfully completed the relocation of our Nashville, Tennessee campus in March, and
the Levittown, Pennsylvania campus relocation remains on track for completion in the second half of the year. Our next new campus in Houston, Texas is expected to open its doors to students by year-end, followed by Hicksville, New York by end of
2026. We also launched two new programs at existing campuses this quarter and anticipate rolling out five additional offerings in high demand fields in the coming months”.
“Student interest in Lincoln’s programs and demand for our graduates remains robust, driving our geographic and program expansion. We continue to evaluate expanding to
additional markets with high unmet demand for our career-focused training. Based on our progress to date, we are confident in our ability to achieve our 2027 targets of approximately $550 million in revenue and $90 million in adjusted EBITDA.”
2025 FIRST QUARTER FINANCIAL RESULTS
Quarter ended March 31, 2025, compared to March 31, 2024
| • |
Revenue grew by $14.1 million, or 13.7%
to $117.5 million, marking the sixth consecutive quarter of double-digit growth. The increase was primarily due to a 13.1% increase in average student population driven by strong start growth. For the first quarter, student starts grew
by 16.2%, 20.9% excluding the Transitional segment.
|
| • |
Educational services and facilities
expense increased $4.4 million, or 10.2% to $47.4 million. The increase over the prior year was primarily driven by costs associated with new programs, new campuses and campus relocations, and support for a larger student population.
However, as a percentage of revenue, educational services and facilities expense decreased from the prior year, reflecting continued margin expansion and improved operating efficiency.
|
| • |
Selling, general and administrative
expense increased $6.4 million, or 10.6% to $66.9 million. The increase over the prior year was primarily driven by higher compensation and benefits costs as a result of an expanded workforce to support our larger student population.
Marketing cost per student start was approximately 20% lower compared to the prior year.
|
2025 FIRST QUARTER SEGMENT RESULTS
Campus Operations Segment
Revenue increased $16.2 million, or 16.0% to $117.5 million. Adjusted EBITDA increased $9.2 million, or 50% to $27.5 million, from $18.3 million in the prior year.
2
Transitional Segment
During the prior year, the Company’s Summerlin, Las Vegas campus was classified in the Transitional segment. The sale of the campus was consummated effective January 1,
2025. In the prior year comparable period, the Summerlin campus had revenue of $2.0 million and operating expenses of $2.3 million. As of March 31, 2025, no campuses were classified in the Transitional segment.
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company.
Corporate and other expenses were $18.3 million and $12.8 million for the three months ended March 31, 2025 and 2024, respectively.
FULL YEAR 2025 OUTLOOK
Based on the 2025 first quarter operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its
financial guidance for revenue, adjusted EBITDA, net income and student starts as follows:
|
Previous
|
Updated
|
||||||||||||||||||||
|
(In millions, except for student starts)
|
FY 2025 Guidance
|
FY 2025 Guidance
|
|||||||||||||||||||
|
Revenue
|
$
|
480
|
-
|
$
|
490
|
$
|
485
|
-
|
$
|
495
|
|||||||||||
|
Adjusted EBITDA
|
$
|
55
|
-
|
$
|
60
|
1 | |
$
|
58
|
-
|
$
|
63
|
1 | ||||||||
|
Net income
|
$
|
8
|
-
|
$
|
13
|
$
|
10
|
-
|
$
|
15
|
|||||||||||
|
Capital expenditures
|
$
|
70
|
-
|
$
|
75
|
$
|
70
|
-
|
$
|
75
|
|||||||||||
|
Student Starts
|
8
|
%
|
-
|
12
|
%
|
10
|
%
|
-
|
14
|
%
|
|||||||||||
|
1
|
The 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.
|
As a reminder, to provide a clearer view of the Company’s underlying performance, guidance excludes non-cash stock-based compensation and one-time, non-recurring items.
Additionally, it excludes pre-opening costs, as well as net operating losses from new campuses, up to four quarters after the campus opening, or until the campus becomes profitable, whichever occurs first. In terms of relocating the Nashville and
Levittown campuses, adjustments have been made to exclude pre-opening costs and relocation costs through the end of quarter in which the relocation is completed. And in the case of program replications and expansions, adjustments are made to
exclude net operating losses through the quarter in which the program is launched.
3
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: Q1 2025 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 the
brands Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired
schools including Lincoln Technical Institute, Inc. which opened its first campus in Newark, New Jersey in 1946. 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 and state 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.
4
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
|
March 31,
2025
|
December 31,
2024
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
28,655
|
$
|
59,273
|
||||
|
Accounts receivable, less allowance of $51,023 and $42,615 at March 31, 2025 and December 31, 2024, respectively
|
47,278
|
42,983
|
||||||
|
Inventories
|
2,394
|
3,053
|
||||||
|
Prepaid expenses and other current assets
|
8,051
|
4,793
|
||||||
|
Asset held for sale
|
-
|
1,150
|
||||||
|
Total current assets
|
86,378
|
111,252
|
||||||
|
PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of $144,251 and $141,271 at March 31, 2025
and December 31, 2024, respectively
|
125,646
|
103,533
|
||||||
|
OTHER ASSETS:
|
||||||||
|
Noncurrent receivables, less allowance of $19,634 and $22,957 at March 31, 2025 and December 31, 2024, respectively
|
16,786
|
19,627
|
||||||
|
Deferred finance charges
|
358
|
323
|
||||||
|
Deferred income taxes, net
|
24,812
|
25,359
|
||||||
|
Operating lease right-of-use assets
|
133,462
|
136,034
|
||||||
|
Finance lease right-of-use assets
|
26,327
|
26,745
|
||||||
|
Goodwill
|
10,742
|
10,742
|
||||||
|
Other assets, net
|
1,367
|
1,387
|
||||||
|
Pension plan assets, net
|
1,554
|
1,554
|
||||||
|
Total other assets
|
215,408
|
221,771
|
||||||
|
TOTAL ASSETS
|
$
|
427,432
|
$
|
436,556
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Unearned tuition
|
$
|
28,846
|
$
|
30,631
|
||||
|
Accounts payable
|
34,359
|
37,026
|
||||||
|
Accrued expenses
|
8,849
|
11,986
|
||||||
|
Income taxes payable
|
1,297
|
1,072
|
||||||
|
Current portion of operating lease liabilities
|
9,751
|
9,497
|
||||||
|
Total current liabilities
|
83,102
|
90,212
|
||||||
|
NONCURRENT LIABILITIES:
|
||||||||
|
Long-term portion of operating lease liabilities
|
136,181
|
138,803
|
||||||
|
Long-term portion of finance lease liabilities
|
30,369
|
29,261
|
||||||
|
Other long-term liabilities
|
-
|
16
|
||||||
|
Total liabilities
|
249,652
|
258,292
|
||||||
|
COMMITMENTS AND CONTINGENCIES
|
||||||||
|
STOCKHOLDERS’ EQUITY:
|
||||||||
|
Common stock, no par value - authorized 100,000,000 shares at March 31, 2025 and December 31, 2024, issued and outstanding 31,592,807
shares at March 31, 2025 and 31,462,640 shares at December 31, 2024
|
48,181
|
48,181
|
||||||
|
Additional paid-in capital
|
48,211
|
50,639
|
||||||
|
Retained earnings
|
81,114
|
79,170
|
||||||
|
Accumulated other comprehensive loss
|
274
|
274
|
||||||
|
Total stockholders’ equity
|
177,780
|
178,264
|
||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
427,432
|
$
|
436,556
|
||||
5
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
|
Three Months Ended
March 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
REVENUE
|
$
|
117,506
|
$
|
103,366
|
||||
|
COSTS AND EXPENSES:
|
||||||||
|
Educational services and facilities
|
47,409
|
43,023
|
||||||
|
Selling, general and administrative
|
66,904
|
60,492
|
||||||
|
(Gain) loss on sale of assets
|
(220
|
)
|
309
|
|||||
|
Total costs & expenses
|
114,093
|
103,824
|
||||||
|
OPERATING INCOME (LOSS)
|
3,413
|
(458
|
)
|
|||||
|
OTHER:
|
||||||||
|
Interest income
|
114
|
698
|
||||||
|
Interest expense
|
(701
|
)
|
(567
|
)
|
||||
|
INCOME (LOSS) BEFORE INCOME TAXES
|
2,826
|
(327
|
)
|
|||||
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
882
|
(113
|
)
|
|||||
|
NET INCOME (LOSS)
|
$
|
1,944
|
$
|
(214
|
)
|
|||
|
Basic
|
||||||||
|
Net income (loss) per common share
|
$
|
0.06
|
$
|
(0.01
|
)
|
|||
|
Diluted
|
||||||||
|
Net income (loss) per common share
|
$
|
0.06
|
$
|
(0.01
|
)
|
|||
|
Weighted average number of common shares outstanding:
|
||||||||
|
Basic
|
30,809
|
30,301
|
||||||
|
Diluted
|
31,074
|
30,301
|
||||||
LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
Three Months Ended
March 31,
|
||||||||
| 2025 |
2024 | |||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net income (loss)
|
$
|
1,944
|
$
|
(214
|
)
|
|||
|
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
|
Depreciation and amortization
|
3,345
|
2,599
|
||||||
|
Finance lease amortization
|
418
|
369
|
||||||
|
Amortization of deferred finance charges
|
40
|
18
|
||||||
|
Deferred income taxes
|
547
|
421
|
||||||
|
(Gain) loss on sale of assets
|
(220
|
)
|
309
|
|||||
|
Fixed asset donations
|
(171
|
)
|
(98
|
)
|
||||
|
Provision for credit losses
|
11,835
|
12,213
|
||||||
|
Stock-based compensation expense
|
1,205
|
1,059
|
||||||
|
(Increase) decrease in assets:
|
||||||||
|
Accounts receivable
|
(13,289
|
)
|
(16,860
|
)
|
||||
|
Inventories
|
659
|
529
|
||||||
|
Prepaid income taxes
|
-
|
(545
|
)
|
|||||
|
Prepaid expenses and current assets
|
(3,243
|
)
|
(582
|
)
|
||||
|
Other assets, net
|
1,230
|
967
|
||||||
|
Increase (decrease) in liabilities:
|
||||||||
|
Accounts payable
|
(8,070
|
)
|
(5,561
|
)
|
||||
|
Accrued expenses
|
(3,137
|
)
|
(4,511
|
)
|
||||
|
Unearned tuition
|
(1,785
|
)
|
(4,641
|
)
|
||||
|
Income taxes payable
|
225
|
-
|
||||||
|
Other liabilities
|
89
|
(406
|
)
|
|||||
|
Total adjustments
|
(10,322
|
)
|
(14,720
|
)
|
||||
|
Net cash used in operating activities
|
(8,378
|
)
|
(14,934
|
)
|
||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Capital expenditures
|
(19,889
|
)
|
(1,684
|
)
|
||||
|
Proceeds from sale of property and equipment
|
249
|
9,718
|
||||||
|
Net cash (used in) provided by investing activities
|
(19,640
|
)
|
8,034
|
|||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Payment of deferred finance fees
|
(75
|
)
|
(438
|
)
|
||||
|
Finance lease principal paid
|
(88
|
)
|
-
|
|||||
|
Tenant allowance finance leases
|
1,196
|
|||||||
|
Net share settlement for equity-based compensation
|
(3,633
|
)
|
(3,156
|
)
|
||||
|
Net cash used in financing activities
|
(2,600
|
)
|
(3,594
|
)
|
||||
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(30,618
|
)
|
(10,494
|
)
|
||||
|
CASH AND CASH EQUIVALENTS —Beginning of period
|
59,273
|
80,269
|
||||||
|
CASH AND CASH EQUIVALENTS—End of period
|
$
|
28,655
|
$
|
69,775
|
||||
6
(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, and to enable comparability of operating performance between periods. Additionally, the Company’s
management regularly uses our non-GAAP financial measures to make operating decisions, for planning and forecasting purposes. 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 net interest expense (interest income), provision (benefit) for income taxes, depreciation and amortization.
|
| • |
We define adjusted EBITDA as EBITDA plus stock-based 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 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.
7
The following is a reconciliation of net income (loss) to EBITDA, adjusted EBITDA, adjusted net income, and total liquidity (in thousands):
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
1,944
|
(214
|
)
|
$
|
21,077
|
$
|
12,108
|
$
|
-
|
$
|
(284
|
)
|
$
|
(19,133
|
)
|
$
|
(12,038
|
)
|
|||||||||||||
|
Interest expense (income), net
|
587
|
(131
|
)
|
595
|
501
|
-
|
-
|
(8
|
)
|
(632
|
)
|
|||||||||||||||||||||
|
Provision (benefit) for income taxes
|
882
|
(113
|
)
|
-
|
-
|
-
|
882
|
(113
|
)
|
|||||||||||||||||||||||
|
Depreciation and amortization
|
3,763
|
2,964
|
3,600
|
2,753
|
-
|
20
|
163
|
191
|
||||||||||||||||||||||||
|
EBITDA
|
7,176
|
2,506
|
25,272
|
15,362
|
-
|
(264
|
)
|
(18,096
|
)
|
(12,592
|
)
|
|||||||||||||||||||||
|
Stock-based compensation expense
|
1,205
|
1,059
|
-
|
-
|
-
|
-
|
1,205
|
1,059
|
||||||||||||||||||||||||
|
New campus and campus relocation costs
|
1,884
|
2,802
|
1,884
|
2,802
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Program expansions
|
371
|
89
|
371
|
89
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Severence and other one-time costs
|
-
|
89
|
-
|
89
|
-
|
-
|
-
|
|||||||||||||||||||||||||
|
Adjusted EBITDA
|
$
|
10,636
|
$
|
6,545
|
$
|
27,527
|
$
|
18,342
|
$
|
-
|
$
|
(264
|
)
|
$
|
(16,891
|
)
|
$
|
(11,533
|
)
|
|||||||||||||
|
Three Months Ended March 31,
|
||||||||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||
|
Consolidated
|
Campus Operations
|
Transitional
|
Corporate
|
|||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||||||||||||||
|
Net income (loss)
|
$
|
1,944
|
$
|
(214
|
)
|
$
|
21,077
|
$
|
12,108
|
$
|
-
|
$
|
(284
|
)
|
$
|
(19,133
|
)
|
$
|
(12,038
|
)
|
||||||||||||
|
Adjustments to net income:
|
||||||||||||||||||||||||||||||||
|
New campus and campus relocation costs
|
1,884
|
2,802
|
1,884
|
2,802
|
||||||||||||||||||||||||||||
|
Program expansions
|
371
|
89
|
371
|
89
|
||||||||||||||||||||||||||||
|
Severance and other one time costs
|
-
|
89
|
-
|
89
|
||||||||||||||||||||||||||||
|
Total non-recurring adjustments
|
2,255
|
2,980
|
2,255
|
2,980
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Income tax effect
|
(677
|
)
|
(894
|
)
|
(677
|
)
|
(894
|
)
|
||||||||||||||||||||||||
|
Adjusted net income (loss), non-GAAP
|
$
|
3,522
|
$
|
1,872
|
$
|
23,332
|
$
|
15,088
|
$
|
-
|
$
|
(284
|
)
|
$
|
(19,810
|
)
|
$
|
(12,932
|
)
|
|||||||||||||
|
As of
March 31, 2025
|
||||
|
Cash and cash equivalents
|
$
|
28,655
|
||
|
Credit facility
|
60,000
|
|||
|
Total Liquidity
|
$
|
88,655
|
||
8
The table below presents selected operating metrics for our reportable segments (in thousands, except for student population and starts):
|
Three Months Ended March 31,
|
||||||||||||
|
2025
|
2024
|
% Change
|
||||||||||
|
Revenue:
|
||||||||||||
|
Campus Operations
|
$
|
117,506
|
$
|
101,321
|
16.0
|
%
|
||||||
|
Transitional
|
-
|
2,045
|
-100.0
|
%
|
||||||||
|
Total
|
$
|
117,506
|
$
|
103,366
|
13.7
|
%
|
||||||
|
Operating Income (loss):
|
||||||||||||
|
Campus Operations
|
$
|
21,671
|
$
|
12,609
|
71.9
|
%
|
||||||
|
Transitional
|
-
|
(285
|
)
|
-100.0
|
%
|
|||||||
|
Corporate
|
(18,258
|
)
|
(12,783
|
)
|
-42.8
|
%
|
||||||
|
Total
|
$
|
3,413
|
$
|
(459
|
)
|
843.6
|
%
|
|||||
|
Starts:
|
||||||||||||
|
Campus Operations
|
4,610
|
3,812
|
20.9
|
%
|
||||||||
|
Transitional
|
-
|
155
|
-100.0
|
%
|
||||||||
|
Total
|
4,610
|
3,967
|
16.2
|
%
|
||||||||
|
Average Population:
|
||||||||||||
|
Campus Operations
|
15,469
|
13,311
|
16.2
|
%
|
||||||||
|
Transitional
|
-
|
367
|
-100.0
|
%
|
||||||||
|
Total
|
15,469
|
13,678
|
13.1
|
%
|
||||||||
|
End of Period Population:
|
||||||||||||
|
Campus Operations
|
15,904
|
13,449
|
18.3
|
%
|
||||||||
|
Transitional
|
-
|
352
|
-100.0
|
%
|
||||||||
|
Total
|
15,904
|
13,801
|
15.2
|
%
|
||||||||
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 March 31,
|
||||||||||||
|
2025
|
2024
|
% Change
|
||||||||||
|
Starts:
|
||||||||||||
|
Transportation and Skilled Trades
|
3,551
|
2,682
|
32.4
|
%
|
||||||||
|
Healthcare and Other Professions
|
1,059
|
1,130
|
-6.3
|
%
|
||||||||
|
Total
|
4,610
|
3,812
|
20.9
|
%
|
||||||||
|
Average Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
11,695
|
9,544
|
22.5
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,774
|
3,767
|
0.2
|
%
|
||||||||
|
Total
|
15,469
|
13,311
|
16.2
|
%
|
||||||||
|
End of Period Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
12,130
|
9,639
|
25.8
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,774
|
3,810
|
-0.9
|
%
|
||||||||
|
Total
|
15,904
|
13,449
|
18.3
|
%
|
||||||||
9
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
|
||||||||
|
EBITDA
|
Net Income
|
|||||||
|
Net Income
|
$
|
12,500
|
$
|
12,500
|
||||
|
Interest expense, net
|
2,500
|
-
|
||||||
|
Provision for taxes
|
5,100
|
-
|
||||||
|
Depreciation and amortization1
|
21,300
|
400
|
||||||
|
EBITDA
|
41,400
|
-
|
||||||
|
New campus and campus relocation costs2,3
|
8,900
|
8,900
|
||||||
|
Program expansions
|
2,400
|
2,400
|
||||||
|
Other one time items
|
2,500
|
2,500
|
||||||
|
Stock-based compensation expense
|
5,300
|
-
|
||||||
|
Tax Effect
|
-
|
(4,300
|
)
|
|||||
|
Total
|
$
|
60,500
|
22,400
|
|||||
| 2025 Guidance Range | $58,000 - $63,000 | |||||||
| 1 |
Depreciation expense relates to the new Houston, Texas campus.
|
| 2 |
New campus and campus relocation costs relate to the following locations:
|
Nashville, Tennessee
Levittown, Pennsylvania
Houston, Texas
Hicksville, New York
| 3 |
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.
|
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP LLC
Investor Relations: Michael Polyviou, [email protected], 732-933-2755
Media Relations: Tom Gibson, 201-476-0322
10