Exhibit 99.1

Lincoln Educational Services Reports Continuing Growth in the Third Quarter with 10.5% Revenue Growth and a 7.1% Increase in Student Starts

Conference Call Today at 10 a.m. ET

Third Quarter 2023 Financial Highlights and Recent Operating Developments*

*Note: The highlighted financial results exclude the Transitional segment.  A reconciliation of GAAP / non-GAAP measures is included in this release.

“Lincoln continued to generate strong results during the third quarter as we achieved 10.5% revenue growth and 7.1% student start growth,” said Scott Shaw, President & CEO.  “The continued roll out of our hybrid instructional platform, which we call Lincoln 10.0, is providing a better experience for our students as evidenced by higher student retention.  We remain on track to complete the transition to Lincoln 10.0 by the end of 2025.  This highly scalable platform creates capacity for additional program replications at our campuses providing instructional and campus operation efficiencies.  We also have continued to transition our financial aid process.  Both initiatives have resulted in incremental expenses this year, but we anticipate will provide future savings once they are fully implemented.”

“Program replication and new campus development both play major roles in our growth strategy.  Two recently completed transactions allow us to relocate and expand two of our existing campuses.  We have leased a new facility in the Nashville market, following the sale of our legacy campus in the second quarter.  We have also purchased a property in Levittown, Pennsylvania, where we will relocate our Philadelphia campus.  These new facilities and the efficiencies of 10.0 will allow us to expand adding HVAC and electrical programs in Nashville and HVAC, electrical and welding programs in Philadelphia when these campuses open in 2025.”

“Our new campus in Atlanta is on track to open during the first quarter of 2024 and we have announced the location of plans for a second new campus in Houston.  Both of these new locations will take full advantage of our Lincoln 10.0 learning platform and offer multiple programs.  We continue to execute on our growth plan to open new campuses and expand our most successful programs.  Our strong balance sheet and cash flow from operations has enabled Lincoln to make these investments in our growth while we remain debt free. “

“Our performance for the first nine months of 2023, and our outlook for the fourth quarter, leads us to raise our outlook for the full year.  The strong growth in student starts fuels our long-term optimism for Lincoln to prepare increasing numbers of students for good paying, rewarding and essential careers while helping American corporations close their skills gap.”

2023 THIRD QUARTER FINANCIAL RESULTS

 

(Quarter ended September 30, 2023 compared to September 30, 2022)

RECENT BUSINESS DEVELOPMENTS

THIRD QUARTER SEGMENT RESULTS

Campus Operations Segment

Revenue increased $9.4 million, or 10.5% to $99.5 million.  Adjusted EBITDA remained essentially flat at $14.4 million for both the current and prior year period.

Transitional Segment

 

Revenue decreased $1.6 million, or 95% to $0.1 million compared to $1.7 million in the prior year comparable period.  Total operating expenses decreased $1 million, or 54% to $0.8 million

 

from $1.8 million in the prior year comparable period.  The Somerville, Massachusetts campus teach-out is now complete.

 

Corporate and Other

Corporate and other expenses increased $1 million to $9.1 million from $8.1 million in the prior year comparable period, which was driven by performance-based incentives.

NINE MONTHS FINANCIAL RESULTS

(Period ended September 30, 2023 compared to September 30, 2022)

FULL YEAR 2023 OUTLOOK

Based on the financial results achieved during the first nine months of the year and the current outlook for the remainder of the year, the Company is increasing financial guidance for revenue, student starts and adjusted net income.  In addition, the lower-end of the range for Adjusted EBITDA has increased, and expected investments in Capital Expenditures have been lowered.  The revised guidance is as follows:

*The guidance in this release includes references to non-GAAP operating measures.  A reconciliation of GAAP / non-GAAP measures can be found at the end of this release.

This guidance excludes the impact of the new Atlanta, Georgia campus, apart from capital expenditures.  Capital expenditure guidance excludes the $10.2 million acquisition of the Levittown, Pennsylvania property for which we are pursuing a sale-leaseback.  In addition, this 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 the gain realized from the sale of the Nashville, Tennessee property.

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 relations section of Lincoln’s website at http://www.lincolntech.edu.  Participants may also register via teleconference at: Q3 2023 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 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 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 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. 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 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)

LIQUIDITY

The Company ended the quarter with approximately $70.3 million in cash and cash equivalents, restricted cash, and short-term investments.  The cash position decreased from the prior year quarter primarily due to investments in capital expenditures of $17.8 million, which included the purchase of the new Levittown, Pennsylvania property for $10.2 million and build-out costs for the new Atlanta, Georgia campus of $2.2 million, which mostly related to architecture fees and construction.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

•

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 Total liquidity as the Company’s cash and cash equivalents, short-term investments and restricted cash.

 

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.  This information is not comparable to the Company’s prior period segment reporting, which was performed on a campus basis rather than a program basis.

Population by Program (Campus Operations Segment):

 

Population by Program (Campus Operations Segment):

LINCOLN EDUCATIONAL SERVICES CORPORATION

Brian Meyers, CFO

973-736-9340

EVC GROUP LLC

Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2755

Media Relations: Tom Gibson, 201-476-0322

 

 

---