New Jersey
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000-51371
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57-1150621
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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200 Executive Drive, Suite 340
West Orange, New Jersey 07052
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07052
(Zip Code)
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(Address of principal executive offices)
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o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
(d) | Exhibits |
99.1 | Press release of Lincoln Educational Services Corporation dated August 7, 2013. |
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LINCOLN EDUCATIONAL SERVICES CORPORATION
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Date: August 7, 2013
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By:
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/s/ Cesar Ribeiro
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Name:
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Cesar Ribeiro
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Title:
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Executive Vice President, Chief Financial
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Officer and Treasurer
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· | Revenue from continuing operations of $85.2 million for the second quarter of 2013, representing a decrease of 12.2% from $97.0 million for the second quarter of 2012. |
· | Loss per share for the second quarter of 2013 of ($0.42) compared to loss per share of ($0.62) for the second quarter of 2012. Loss per share for the three months ended June 30, 2013 and 2012 is comprised of the following: |
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Quarter Ended
June 30, 2013
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Quarter Ended
June 30, 2012
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||||||
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||||||||
Continuing Schools
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$
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(0.20
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)
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$
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(0.08
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)
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Announced Campus Closures
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$
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(0.12
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)
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$
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(0.16
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)
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Impairment Charges
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$
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(0.10
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)
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$
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(0.38
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)
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||||||||
Loss Per Share
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$
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(0.42
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)
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$
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(0.62
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)
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· | We are updating our previously issued 2013 guidance to give effect to the impact of the announced campus closures on June 18, 2013 and the continuing softness in our student starts. For 2013, we now expect revenue of approximately $355 million and a diluted loss per share of ($1.00). The full year diluted loss per share includes approximately ($0.60) to ($0.65) per share loss related to the announced campus closures. We now expect student starts from continuing operations to be essentially flat for the year as compared to 2012. |
· | For the third quarter of 2013, we expect revenue of $86.0 million to $88.0 million, representing a decrease of approximately 15% over the third quarter of 2012, and a loss per share of ($0.20) to ($0.25). Loss per share includes a ($0.12) to ($0.14) loss related to the announced campus closures. Guidance for the third quarter of 2013 is based on our expectation that student starts will be essentially flat on a continuing operations basis as compared to the third quarter of 2012. |
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June 30,
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|||||||||||
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2013
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2012
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Change
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|||||||||
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||||||||||||
Average population - excluding short programs
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15,132
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17,896
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-15.4
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%
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||||||||
End of period population - excluding short programs
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14,460
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17,535
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-17.5
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%
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Three Months Ended
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|||||||||||
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June 30,
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|||||||||||
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2013
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2012
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Change
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|||||||||
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||||||||||||
Student Starts
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||||||||||||
Ability to Benefit (ATB)
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0
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483
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-100.0
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%
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||||||||
Online
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2
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23
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-91.3
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%
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||||||||
SWC
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171
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617
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-72.3
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%
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||||||||
All Other
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3,595
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3,608
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-0.4
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%
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||||||||
Total Starts - excluding short programs
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3,768
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4,731
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-20.4
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%
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||||||||
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||||||||||||
Student starts - short programs
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346
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252
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37.3
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%
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Three Months Ended
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June 30,
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|||||||
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2013
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2012
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||||||
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Automotive
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39.7
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%
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35.4
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%
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Health sciences
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33.0
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%
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37.0
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%
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Skilled trades
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12.7
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%
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11.4
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%
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Hospitality services
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8.6
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%
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9.1
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%
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Business & IT
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6.0
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%
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7.1
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%
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||||
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100.0
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%
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100.0
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%
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CONTACT:
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Lincoln Educational Services Corporation
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Cesar Ribeiro, CFO
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973-736-9340
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Three Months Ended
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Six Months Ended
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||||||||||||||
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June 30,
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June 30,
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||||||||||||||
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2013
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2012
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2013
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2012
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||||||||||||||||
REVENUE
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$
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85,217
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$
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97,031
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$
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175,300
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$
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198,189
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||||||||
COSTS AND EXPENSES:
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||||||||||||||||
Educational services and facilities
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44,786
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47,181
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90,980
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96,168
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||||||||||||
Selling, general and administrative
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49,522
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52,281
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102,770
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107,113
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||||||||||||
Gain on sale of assets
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(196
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)
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(14
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)
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(207
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)
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(44
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)
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||||||||
Impairment of goodwill and long-lived assets
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4,468
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14,244
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6,194
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14,244
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School closing costs
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1,019
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-
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1,019
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-
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Total costs & expenses
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99,599
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113,692
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200,756
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217,481
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OPERATING LOSS
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(14,382
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)
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(16,661
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)
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(25,456
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)
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(19,292
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)
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||||||||
OTHER:
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Interest income
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15
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-
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17
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2
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Interest expense
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(1,202
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)
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(1,047
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)
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(2,294
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)
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(2,361
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)
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||||||||
Other income
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18
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2
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18
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10
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||||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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(15,551
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)
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(17,706
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)
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(27,715
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)
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(21,641
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)
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||||||||
BENEFIT FOR INCOME TAXES
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(6,173
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)
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(3,868
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)
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(10,850
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)
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(5,628
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)
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LOSS FROM CONTINUING OPERATIONS
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(9,378
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)
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(13,838
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)
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(16,865
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)
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(16,013
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)
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LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES
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-
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(6,870
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)
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-
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(7,749
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)
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NET LOSS
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$
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(9,378
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)
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$
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(20,708
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)
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$
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(16,865
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)
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$
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(23,762
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)
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Basic
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Loss per share from continuing operations
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$
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(0.42
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)
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$
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(0.62
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)
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$
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(0.75
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)
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$
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(0.72
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)
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Loss per share from discontinued operations
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-
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(0.31
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)
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-
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(0.35
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)
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Net loss per share
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$
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(0.42
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)
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$
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(0.93
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)
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$
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(0.75
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)
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$
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(1.07
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)
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Diluted
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Loss per share from continuing operations
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$
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(0.42
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)
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$
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(0.62
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)
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$
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(0.75
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)
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$
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(0.72
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)
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Loss per share from discontinued operations
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-
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(0.31
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)
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-
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(0.35
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)
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Net loss per share
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$
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(0.42
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)
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$
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(0.93
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)
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$
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(0.75
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)
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$
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(1.07
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)
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Weighted average number of common shares outstanding:
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||||||||||||||||
Basic
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22,497
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22,183
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22,456
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22,160
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Diluted
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22,497
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22,183
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22,456
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22,160
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Other data:
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||||||||||||||||
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Adjusted EBITDA from continuing operations (1)
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$
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(4,231
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)
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$
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(2,742
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)
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$
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(7,607
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)
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$
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428
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|||||
Depreciation and amortization from continuing operations
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$
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5,665
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$
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6,543
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$
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11,637
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$
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13,215
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Number of campuses/training sites from continuing operations
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38
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38
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38
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38
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Average enrollment from continuing operations
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15,132
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17,896
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15,724
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18,386
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Stock-based compensation
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$
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1,081
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$
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1,091
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$
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2,361
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$
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1,997
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Net cash (used in) provided by operating activities
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$
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(10,053
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)
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$
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(1,711
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)
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$
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(14,272
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)
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$
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3,966
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|||||
Net cash used in investing activities
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$
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(1,046
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)
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$
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(3,492
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)
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$
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(1,620
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)
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$
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(6,179
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)
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Net cash used in financing activities |
$
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(81,176 | ) |
$
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(6,225 | ) |
$
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(41,550 | ) |
$
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(4,317 | ) |
Selected Consolidated Balance Sheet Data:
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June 30, 2013
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|||
(In thousands)
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(Unaudited)
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|
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Cash and cash equivalents
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$
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4,266
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Current assets
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53,776
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Working capital
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(2,150
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)
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Total assets
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287,140
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Current liabilities
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55,926
|
|||
Long-term debt and capital lease obligations, including current portion
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35,820
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|||
Total stockholders' equity
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180,205
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||||
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(Unaudited)
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(Unaudited)
|
||||||||||||||
|
||||||||||||||||
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2013
|
2012
|
2013
|
2012
|
||||||||||||
|
||||||||||||||||
Net loss from continuing operations
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$
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(9,378
|
)
|
$
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(20,708
|
)
|
$
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(16,865
|
)
|
$
|
(23,762
|
)
|
||||
Interest expense, net
|
1,187
|
1,047
|
2,277
|
2,359
|
||||||||||||
Benefit for income taxes
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(6,173
|
)
|
(3,868
|
)
|
(10,850
|
)
|
(5,628
|
)
|
||||||||
Depreciation and amortization
|
5,665
|
6,543
|
11,637
|
13,215
|
||||||||||||
EBITDA
|
(8,699
|
)
|
(16,986
|
)
|
(13,801
|
)
|
(13,816
|
)
|
||||||||
Impairment of goodwill and long-lived assets
|
4,468
|
14,244
|
6,194
|
14,244
|
||||||||||||
Adjusted EBITDA
|
$
|
(4,231
|
)
|
$
|
(2,742
|
)
|
$
|
(7,607
|
)
|
$
|
428
|