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Lincoln Educational Services Reports Continued Growth During First Quarter 2024, with 15% Student Starts and 20% Revenue Growth; Increasing Financial Guidance for Full Year 2024
Conference Call Today at 10 a.m. ET

PARSIPPANY, N.J., May 06, 2024 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the first quarter ended March 31, 2024, as well as recent business developments.

First Quarter 2024 Financial Highlights*

  • Revenue grew 19.7% to $103.4 million
  • Adjusted EBITDA tripled to $6.5 million
  • Student starts increased 15.3%
  • Ended quarter with 1,388 additional students, a 11.2% increase in population
  • Total liquidity of over $109 million; no debt outstanding
  • Increasing guidance for full year Revenue, Adjusted EBITDA and Adjusted Net Income

Recent Developments

  • Classes commenced at our newest campus in East Point, Georgia
  • Entered into a 5-year agreement with Container Maintenance Corporation (“CMC"), (Marine Repair Services), to provide on-the-job training, to its technicians
  • Entered into new $40 million credit facility with Fifth Third Bank providing added flexibility to execute growth initiatives

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

“We had an exceptionally strong start to 2024 and the momentum generated during the first quarter has continued,” commented Scott Shaw, President & CEO. “The American public is increasingly questioning the costs and value of a traditional four-year college degree while the nation’s skills gap is stifling growth and opportunity. Lincoln is capitalizing on these market dynamics by providing innovative efficient student curricula that provides opportunity to a growing number of graduates to enter rewarding, in-demand careers. During the first quarter, the successful execution of our strategies resulted in just over 15% student start growth and nearly 20% revenue growth. This solid first quarter performance allows us to increase our full year guidance for revenue, adjusted EBITDA and adjusted net income.”

“During the quarter, we welcomed our inaugural class of students to our newest campus in East Point, Georgia. In addition, we began the buildouts of our new Nashville, Tennessee and Levittown, Pennsylvania campuses, finalized the plans for our new Houston campus, and made progress in identifying another new campus location. At the same time, we continue to make progress towards the roll out of nine replicated programs at existing Lincoln campuses, as well as the full transition to our highly scalable hybrid instructional learning model, or Lincoln 10.0, by the end of the year.”

“Lincoln 10.0, is beginning to yield operating leverage,” added Mr. Shaw. “We generated nearly 20% higher revenue, while at the same time decreasing instructional costs as a percentage of revenue. As 2024 unfolds, we are well positioned to realize continued operating leverage as the transition is completed.”

“We have continued to develop our existing corporate partnerships as well as enter into new ones. Last week, we announced a five-year, nearly $6.0 million agreement with CMC to provide onsite employee training, our largest program of its type to date. The combination of our Lincoln 10.0 model, our replicated programs, our new and relocated campuses, and the addition of on-site workforce skills training, and the increasing interest in Lincoln programs from both employers and students have positioned the Company for growth during the remainder of 2024 and into the foreseeable future.”


(Quarter ended March 31, 2024 compared to March 31, 2023)

  • Revenue increased by $16.1 million, or 18.4%, to $103.4 million. Included in the prior year is $0.9 million of revenue related to the Transitional segment. Excluding this revenue for comparability, revenue would have increased by $17.0 million, or 19.7%. The primary reasons for the increase was an 11.9% rise in average student population due to starting the year with approximately 1,100 more students, or 9.0%, coupled with 15.3% growth in student starts.
  • Educational services and facilities expense increased $4.9 million, or 12.9% to $43.0 million. Included in the increase over the prior year are approximately $2.9 million of one-time expenses for new campuses and campus relocation cost, relating to the new Houston, Texas campus, in addition to the relocation of our Nashville, Tennessee and Levittown, Pennsylvania locations. Remaining expense increases were due to instructional salaries and books and tools expenses resulting from higher staffing levels driven by student population growth combined with merit increases.
  • Selling, general and administrative expense increased $10.2 million, or 20.3% to $60.5 million. The majority of the increase was due to higher administrative costs, which increased $7.4 million due to several factors including an increase in salary expense, driven in part by merit increases and population growth, increased medical claims, and additional bad debt expense, largely driven by revenue growth. In addition, marketing investments were up $1.6 million, which helped drive our 15.3% student start growth.


Campus Operations Segment
Revenue increased $17.0 million, or 19.7% to $103.4 million. Adjusted EBITDA increased $6.5 million or 56.5% to $18.1 million, from $11.6 million in the prior year.

Transitional Segment
The Somerville, Massachusetts campus teach-out was completed in the fourth quarter of 2023. In the prior year, the Somerville campus had revenue of $0.9 million and operating expenses of $1.1 million.

Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expense were $12.8 million, up from $11.0 million in the prior year. Increased costs were primarily due to additional salaries, performance based incentives and medical benefits expense.

Based on 2024 first quarter financial results, as well as the current quarter performance to date, and the anticipated operating performance for the remainder of the year, the Company is revising its financial projections upwards for revenue, adjusted EBITDA, and adjusted net income as outlined below:

      2024 Guidance    
(Amounts in millions except for student starts)   Low   High  
Revenue   $ 418 - $ 428  
Adjusted EBITDA   $ 37 - $ 42 1
Adjusted net income   $ 12 - $ 17 1
Capital expenditures   $ 65 - $ 70  
Starts   7% - 12%  
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.

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 Participants may also register via teleconference at Q1 2024 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


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 13 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

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 cybersecurity; 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
  March 31,
    2024       2023  
REVENUE $ 103,366     $ 87,284  
Educational services and facilities   43,023       38,093  
Selling, general and administrative   60,492       50,307  
Loss on sale of asset   309       -  
Total costs & expenses   103,824       88,400  
OPERATING LOSS   (458 )     (1,116 )
Interest income   698       467  
Interest expense   (567 )     (25 )
LOSS BEFORE INCOME TAXES   (327 )     (674 )
BENEFIT FOR INCOME TAXES   (113 )     (565 )
NET LOSS $ (214 )   $ (109 )
Net loss per common share $ (0.01 )   $ (0.00 )
Net loss per common share $ (0.01 )   $ (0.00 )
Weighted average number of common shares outstanding:      
Basic   30,301       30,039  
Diluted   30,301       30,039  
Other data:      
Adjusted EBITDA (1) $ 6,545     $ 2,196  
Depreciation and amortization $ 2,964     $ 1,253  
Number of campuses   22       22  
Average enrollment   13,678       12,387  
Net cash used in operating activities $ (14,934 )   $ (214 )
Net cash provided by (used in) investing activities $ 8,034     $ (3,249 )
Net cash used in financing activities $ (3,594 )   $ (2,335 )

Selected Consolidated Balance Sheet Data: March 31, 2024
Cash and cash equivalents $ 68,554
Restricted cash   1,221
Current assets   118,749
Working capital   58,867
Total assets   355,163
Current liabilities   59,882
Total stockholders' equity   164,493

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

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.

The following is a reconciliation of net income (loss) to EBITDA, adjusted EBITDA, adjusted net income, and total liquidity:

    Three Months Ended
March 31,
    Consolidated Operations
      2024       2023  
  Net loss $ (214 )   $ (109 )
  Interest income, net   (131 )     (442 )
  Benefit for income taxes   (113 )     (565 )
  Depreciation and amortization   2,964       1,253  
  EBITDA   2,506       137  
  Stock compensation expense   1,059       812  
  New campus and campus relocation costs1   2,802       260  
  Severance and other one-time costs   89       794  
  Program expansions   89       -  
  Transitional segment   -       193  
  Adjusted EBITDA $ 6,545     $ 2,196  
1 Includes $450,000 of non-cash rent expense.      

  Three Months Ended March 31,
  Campus Operations   Transitional   Corporate
  2024     2023     2024     2023       2024       2023  
Net income (loss) $ 11,824   $ 10,109     $ -   $ (197 )   $ (12,038 )   $ (10,021 )
Interest expense (income), net   501     -       -     -       (632 )     (442 )
Benefit for income taxes   -     -       -     -       (113 )     (565 )
Depreciation and amortization   2,773     1,099       -     4       191       150  
EBITDA   15,098     11,208       -     (193 )     (12,592 )     (10,878 )
Stock compensation expense   -     -       -     -       1,059       812  
New campus and campus relocation costs1   2,802     260       -     -       -       -  
Severance and other one-time costs   89     84       -     -       -       710  
Program expansions   89     -       -     -       -       -  
Transitional segment   -     -       -     193       -       -  
Adjusted EBITDA $ 18,078   $ 11,552     $ -   $ -     $ (11,533 )   $ (9,356 )

  Three Months Ended
  March 31,
    2024       2023  
Net loss $ (214 )   $ (109 )
Non-recurring adjustments:      
New campus and campus relocation costs1   2,802       260  
Severance and other one time costs   89       973  
Program expansions   89       -  
Transitional segment   -       193  
Total non-recurring adjustments   2,980       1,426  
Income tax effect   (894 )     (406 )
Adjusted net income, non-GAAP $ 1,872     $ 911  

  As of
  March 31, 2024
Cash and cash equivalents $ 68,554
Restricted cash   1,221
Credit facility   40,000
Total Liquidity $ 109,775

  Three Months Ended
March 31,
    2024       2023     % Change
Campus Operations $ 103,366     $ 86,352     19.7 %
Transitional   -       932     -100.0 %
Total $ 103,366     $ 87,284     18.4 %
Operating Income (loss):          
Campus Operations $ 12,324     $ 10,109     21.9 %
Transitional   -       (197 )   -100.0 %
Corporate   (12,782 )     (11,028 )   -15.9 %
Total $ (458 )   $ (1,116 )   59.0 %
Campus Operations   3,967       3,440     15.3 %
Total   3,967       3,440     15.3 %
Average Population:          
Campus Operations   13,678       12,225     11.9 %
Transitional   -       162     -100.0 %
Total   13,678       12,387     10.4 %
End of Period Population:          
Campus Operations   13,801       12,413     11.2 %
Transitional   -       131     -100.0 %
Total   13,801       12,544     10.0 %

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):
  Three Months Ended March 31,
  2024   2023   % Change
Transportation and Skilled Trades 2,682   2,263   18.5 %
Healthcare and Other Professions 1,285   1,177   9.2 %
Total 3,967   3,440   15.3 %
Average Population:          
Transportation and Skilled Trades 9,544   8,281   15.3 %
Healthcare and Other Professions 4,134   3,944   4.8 %
Total 13,678   12,225   11.9 %
End of Period Population:          
Transportation and Skilled Trades 9,639   8,488   13.6 %
Healthcare and Other Professions 4,162   3,925   6.0 %
Total 13,801   12,413   11.2 %

The reconciliations provided below represent managements best projection for the execution of our 2024 guidance. These calculations are for illustrative purposes and will be reviewed throughout 2024 to ensure accuracy and continued relevance. Any revisions or modifications, if necessary, will be made transparent and disclosed during the 2024 quarterly reviews. 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 - 2024 Guidance
(Reconciled to the Mid-Point of 2024 Guidance)
  EBITDA   Net Income
Net Income $ 6,800   $ 6,800  
Interest expense, net   700     -  
Provision for taxes   3,100     -  
Depreciation and amortization   11,200     -  
Depreciation1   2,500     -  
EBITDA   24,300     -  
New campus and campus relocation costs2   8,700     8,700  
Program expansions   2,300     2,300  
Stock compensation expense   4,200     -  
Tax Effect   -     (3,300 )
Total $ 39,500   $ 14,500  
2024 Guidance Range $37,000 - $42,000   $12,000 - $17,000
1 Depreciation expense relates to new campuses and campus relocations.
2 New campus and campus relocation costs relate to the following locations:
East Point, Georgia      
Nashville, Tennessee      
Levittown, Pennsylvania      
Houston, Texas      

Brian Meyers, CFO

Investor Relations: Michael Polyviou,, 732-933-2755
Media Relations: Tom Gibson, 201-476-0322

Lincoln Educational Services Corporation