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): March 6, 2019
LINCOLN EDUCATIONAL SERVICES CORPORATION
(Exact Name of Registrant as Specified in Charter)
(Exact Name of Registrant as Specified in Charter)
|
New Jersey
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000-51371
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57-1150621
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||
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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200 Executive Drive, Suite 340, West Orange, New Jersey 07052
(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)
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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:
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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 March 6, 2019, Lincoln Educational Services Corporation. (the “Company”) issued a press release announcing financial results for
the fourth quarter ended December 31, 2018. 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
|
| 99.1 |
Press release of Lincoln Educational Services Corporation dated March 6, 2019.
|
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.
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LINCOLN EDUCATIONAL SERVICES CORPORATION
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|||
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Date: March 6, 2019
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|||
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By:
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/s/ Brian K. Meyers
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||
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Name:
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Brian K. Meyers | ||
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Title:
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Executive Vice President, Chief Financial Officer and Treasurer | ||
Exhibit 99.1
Lincoln Educational Services Corporation Reports Fourth Quarter & FY 2018 Results; Fifth Consecutive Quarter of Student Start Growth; Total
Revenue and Same School Revenue Grew 4% and 7.5% Respectively During Fourth Quarter
| · |
Total Student Starts increased 11.6%; Same School Student Starts up 12.1%; Transportation and Skilled Trades segment Student Starts up 6.6%; Healthcare and Other
Professions segment Student Starts up 19.3%.
|
| · |
Total Revenue of $70.1 million; Transportation and Skilled Trades $49.4 million; Healthcare and Other Professions $19.6 million; Transitional segment $1.1 million.
Total Revenue and same school revenue increased 4%, or $2.7 million and 7.5%, or $4.8 million, respectively.
|
| · |
Achieved 2018 Guidance Metrics.
|
| · |
Introduces Outlook for 2019 Including Revenue Growth and Student Starts Growth of 3% to 5%; Net income and EBITDA of approximately $2 million, and $12 million,
respectively, resulting from Higher Carry in Population and Increased Student Starts.
|
| · |
Conference Call Today at 10 a.m. ET.
|
WEST ORANGE, N.J., March 6, 2019 -- Lincoln Educational Services Corporation (Nasdaq: LINC) today reported financial results for the fourth quarter
and full year ended December 31, 2018. The Company achieved all of its guidance metrics for 2018.
“Lincoln continues to deliver improved results for our students as well as our shareholders,” said Scott Shaw, President & CEO. “We reported our
fifth consecutive quarter of student start growth. The positive momentum we are experiencing during the start of 2019 provides us with optimism about our ability to continue current trends throughout 2019. We believe our focused marketing
efforts will drive growth in revenue and student starts and we are currently forecasting that we will generate net income and EBITDA of approximately $2 million and $12 million, respectively, for 2019.”
FOURTH QUARTER OPERATING AND FINANCIAL HIGHLIGHTS:
| · |
Total revenue for the fourth quarter increased $2.7 million, or 4.0%, to $70.1 million for the three months ended December 31, 2018 from $67.4 million in the prior
year comparable period. Revenue on a same school basis increased by 7.5%, or $4.8 million.
|
| · |
Total student starts increased by 11.6%. Transportation and Skilled Trades segment starts up 6.6% and Healthcare and Other Professions segment starts up 19.3%. Same
schools starts up 12.1% resulting from continued investments in marketing, enhanced high school programs and improved admissions process driving higher conversions from lead to start.
|
| · |
Educational services and facilities expense increased by $1 million, or 3.2%, to $31.2 million for the three months ended December 31, 2018 from $30.2 million in the
prior year comparable period. The additional expense quarter over quarter was primarily driven by increased books and tools expense of $0.5 million and increased instructional expenses of $0.3 million. Increases in books and tools
expense and instructional expenses were a result of increased student population.
|
| · |
Selling general and administrative expense increased to $33.2 million for the three months ended December 31, 2018, from $29.4 million in the prior year comparable
period. The increase of $3.8 million was primarily driven by $2 million in costs incurred to close the Lincoln College of New England campus (“LCNE”), which closed on December 31, 2018; $1.4 million of additional bad debt expense
and $0.5 million of increased marketing investments.
|
Bad debt expense has increased due to higher accounts receivable balances. The increase in accounts receivables is mainly driven by
higher revenue and student population, higher receivables from graduates due to internal loans with deferred payment plans and shifts in our program mix during the year from longer duration programs to shorter more condensed programs.
Marketing investments during the quarter ended December 31, 2018 were approximately $0.5 million higher than the prior year
comparable period. While marketing investments have increased during 2018, the cost to obtain prospective students has remained essentially flat when compared to the prior year. Marketing dollars are providing a return on investment and are
expected to yield start growth over the next several quarters.
| · |
Operating income was $5.8 million and $7.8 million for the three months ended December 31, 2018 and 2017, respectively.
|
| · |
Net income for the quarter decreased by $2.2 million to $5 million, or $0.20 per share, from $7.7 million, or $0.31 per share, in the prior year comparable quarter.
|
FOURTH QUARTER SEGMENT FINANCIAL PERFORMANCE
Transportation and Skilled Trades Segment
Transportation and Skilled Trades segment revenue increased by $2.4 million, or 5.1%, to $49.4 million for the three months ended December 31, 2018, as
compared to $47 million in the prior year comparable period. The increase in revenue is primarily attributable to five consecutive quarters of student start growth, most notably, a 6.6% increase in student starts in the current quarter, which
drove a 5.1% increase in average student population.
Student starts increased 6.6% for the three months ended December 31, 2018 when compared to the prior year comparable period.
Operating income remained essentially flat at $8.9 million and 9.0 million the three months ended December 31, 2018 and 2017 respectively.
Educational services and facilities expense increased by $1 million, or 4.9%, to $21 million for the three months ended December 31, 2018 from $20
million in the prior year comparable period. The increase was driven by additional instructional expense and books and tools expense resulting from an increased student population.
Selling, general and administrative expenses increased by $1.5 million, or 8.2%, to $19.5 million for the three months ended December 31, 2018 from $18
million in the prior year comparable period. The increase was primarily driven by higher bad debt expense and marketing expense as detailed in the fourth quarter financial results highlights.
Healthcare and Other Professions Segment
Healthcare and Other Professions segment revenue increased by $2.4 million, or 14%, to $19.6 million for the three months ended December 31, 2018, as
compared to $17.2 million in the prior year comparable period. The increase in revenue was mainly attributable to a higher carry in population, five consecutive quarters of student start growth, which drove a 9.8% increase in average student
population and an increase in average revenue per student.
Student starts increased 19.3% for the three months ended December 31, 2018 when compared to the prior year comparable period.
Operating income increased to $3.7 million for the three months ended December 31, 2018 from $3 million in the prior year comparable period.
Educational services and facilities expense increased by $0.8 million, or 10.2% to $8.8 million for the three months ended December 31, 2018, from $8
million in the prior year comparable period. The increase in expense was primarily driven by increased instructional expense and books and tools expense due to a 9.8% increase in average student population quarter over quarter.
Selling general and administrative expense increased by $0.9 million, or 14.5%, to $7 million for the three months ended December 31, 2018 from $6.1
million in the prior year comparable period. The increase was primarily driven by higher bad debt expense and marketing expense as detailed in the fourth quarter financial results highlights.
Transitional Segment
Transitional segment revenue was $1.1 million and $3.2 million for the three months ended December 31, 2018 and 2017, respectively. The decrease in
revenue was due to one campus classified in the Transitional segment in the current quarter versus five campuses classified in the segment in the prior year comparable quarter. The Transitional segment during the quarter includes the LCNE at
Southington, Connecticut.
Operating loss was $3.1 million and $1.2 million for the three months ended December 31, 2018 and 2017, respectively.
As of December 31, 2018, the LCNE campus at Southington, Connecticut was successfully taught-out. The Company will no longer incur any expenses related
to LCNE.
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $3.8 million for the three
months ended December 31, 2018 as compared to $3 million in the prior year comparable period. The $0.8 million increase was primarily driven by an increase in salaries and benefits expense.
2018 FULL YEAR FINANCIAL RESULTS
Revenue increased $1.3 million to $263.2 million for the year ended December 31, 2018 from $261.9 million in the prior year comparable period. Operating
loss for the year ended December 31, 2018 decreased by $0.8 million when compared against the comparable period of 2017. Educational services and facilities expense decreased by $4 million, or 3.1%, to $125.4 million for the year ended
December 31, 2018 from $129.4 million in the comparable period of 2017. Selling general and administrative expense increased $2.5 million, or 1.8%, to $141.2 million for the year ended December 31, 2018 from $138.8 million in the comparable
period of 2017. Loss on sale of assets increased to $0.5 million for the year ended December 31, 2018, from a gain on sale of asset of $1.6 million in the prior year comparable period.
Transportation and Skilled Trades segment revenue was $185.3 million for the year ended December 31, 2018, versus $181.3 million in the comparable
period of 2017.
Healthcare and Other Professions segment revenue was $72.1 million for the year ended December 31, 2018, versus $63.6 million in the comparable period
of 2017.
Transitional segment revenue was $5.8 million for the year ended December 31, 2018, versus $16.9 million in the comparable period of 2017.
2019 OUTLOOK
Management is providing the following guidance for 2019:
| · |
Revenue and student starts are expected to increase 3% to 5% when compared to prior year.
|
| · |
Net income and EBITDA are projected to be approximately $2 million and $12 million, respectively.
|
CONFERENCE CALL INFO
Lincoln will host a conference call today at 10:00 a.m. Eastern Standard Time. 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 can also listen to the conference call by dialing 844-413-0946
(domestic) or 216-562-0456 (international) and providing access code 3246209. Please log in or dial into the call at least 10 minutes prior to the start time.
An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.
A replay of the call will also be available for seven days by calling 855-859-2056 (domestic) or 404-537-3406 (international) and providing access code 3246209.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a provider of diversified career-oriented post-secondary education and helping to provide solutions to
America’s skills gap. Lincoln offers recent high school graduates and working adults degree and diploma programs. The Company operates under three reportable segments: Transportation and Skilled Trades, Healthcare and Other Professions and
Transitional. Lincoln has provided the nation’s workforce with skilled technicians since its inception in 1946. For more information, go to www.lincolntech.edu.
SAFE HARBOR
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 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 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, projected or anticipated benefits from acquisitions
or dispositions to be made by the Company or 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. The events described in forward-looking statements may not occur at all. Factors which may affect the Company’s results include, but are not limited to, the risks and uncertainties discussed in the Company’s Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any one or more of these uncertainties, risks and other influences could materially affect the Company’s
results of operations and financial condition and whether forward-looking statements made by the Company ultimately prove to be accurate and, as such, the Company’s actual results, performance and achievements could materially differ from
those expressed or implied in these 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. Important factors that could cause such differences
include, but are not limited to, our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely regulatory approvals in connection with acquisitions or a change of control of our
Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner or on a timely basis; risks associated with changes in applicable federal laws and
regulations; uncertainties regarding our ability to comply with federal laws and regulations, such as the 90/10 rule and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of
acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our industry; general economic conditions; and other factors discussed in the “Risk Factors” section of our Annual Reports and
Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any
forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
(Tables to Follow)
(In Thousands)
|
Three Months Ended
December 31,
(Unaudited)
|
Year Ended
December 31,
(Unaudited)
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
REVENUE
|
$
|
70,113
|
$
|
67,401
|
$
|
263,200
|
$
|
261,853
|
||||||||
|
COSTS AND EXPENSES:
|
||||||||||||||||
|
Educational services and facilities
|
31,203
|
30,230
|
125,373
|
129,413
|
||||||||||||
|
Selling, general and administrative
|
33,156
|
29,401
|
141,244
|
138,779
|
||||||||||||
|
Loss (gain) on sale of assets
|
-
|
(4
|
)
|
537
|
(1,623
|
)
|
||||||||||
|
Total costs & expenses
|
64,359
|
59,627
|
267,154
|
266,569
|
||||||||||||
|
OPERATING INCOME (LOSS)
|
5,754
|
7,774
|
(3,954
|
)
|
(4,716
|
)
|
||||||||||
|
OTHER:
|
||||||||||||||||
|
Interest income
|
6
|
9
|
31
|
56
|
||||||||||||
|
Interest expense
|
(678
|
)
|
(501
|
)
|
(2,422
|
)
|
(7,098
|
)
|
||||||||
|
INCOME (LOSS) BEFORE INCOME TAXES
|
5,082
|
7,282
|
(6,345
|
)
|
(11,758
|
)
|
||||||||||
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
50
|
(424
|
)
|
200
|
(274
|
)
|
||||||||||
|
NET INCOME (LOSS)
|
$
|
5,032
|
$
|
7,706
|
$
|
(6,545
|
)
|
$
|
(11,484
|
)
|
||||||
|
Basic
|
||||||||||||||||
|
Net income (loss) per share
|
$
|
0.21
|
$
|
0.32
|
$
|
(0.27
|
)
|
$
|
(0.48
|
)
|
||||||
|
Diluted
|
||||||||||||||||
|
Net income (loss) per share
|
$
|
0.20
|
$
|
0.31
|
$
|
(0.27
|
)
|
$
|
(0.48
|
)
|
||||||
|
Weighted average number of common shares outstanding:
|
||||||||||||||||
|
Basic
|
24,533
|
24,025
|
24,423
|
23,906
|
||||||||||||
|
Diluted
|
24,562
|
24,590
|
24,423
|
23,906
|
||||||||||||
|
Other data:
|
||||||||||||||||
|
EBITDA (1)
|
$
|
7,885
|
$
|
10,038
|
$
|
4,467
|
$
|
3,986
|
||||||||
|
Depreciation and amortization
|
$
|
2,131
|
$
|
2,264
|
$
|
8,421
|
$
|
8,702
|
||||||||
|
Number of campuses
|
22
|
23
|
22
|
23
|
||||||||||||
|
Average enrollment
|
11,152
|
10,854
|
10,591
|
10,772
|
||||||||||||
|
Stock-based compensation
|
$
|
20
|
$
|
272
|
$
|
521
|
$
|
1,220
|
||||||||
|
Net cash provided by (used in) operating activities
|
$
|
4,122
|
$
|
5,286
|
$
|
(1,694
|
)
|
$
|
(11,321
|
)
|
||||||
|
Net cash (used in) provided by investing activities
|
$
|
(480
|
)
|
$
|
(980
|
)
|
$
|
(2,349
|
)
|
$
|
10,707
|
|||||
|
Net cash provided by (used in) financing activities
|
$
|
24,301
|
$
|
35,782
|
$
|
(4,565
|
)
|
$
|
7,453
|
|||||||
|
Selected Consolidated Balance Sheet Data:
|
December 31, 2018
|
|||
|
(Unaudited)
|
||||
|
Cash and cash equivalents
|
$
|
17,571
|
||
|
Current assets
|
57,111
|
|||
|
Working capital deficit
|
(7,470
|
)
|
||
|
Total assets
|
146,038
|
|||
|
Current liabilities
|
64,581
|
|||
|
Long-term debt obligations, including current portion
|
48,769
|
|||
|
Total stockholders' equity
|
39,866
|
|||
(1) Reconciliation of Non-GAAP Financial Measures
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 and same school basis revenue are measurements not recognized in financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We define EBITDA as
income (loss) before interest expense (net of interest income), provision for income taxes, depreciation, and amortization. We define same school basis revenue as Total Company revenue less the Transitional segment revenue. EBITDA and same
school revenue are presented because we believe they are a useful indicator of our performance and our ability to make strategic acquisitions and meet capital expenditure and debt service requirements. However, it is 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 an indicator of operating performance or to cash flow as a measure of liquidity. EBITDA and same school basis revenue are not
necessarily comparable to similarly titled measures used by other companies.
Following is a reconciliation of net income (loss) to EBITDA and same school basis revenue:
|
Three Months Ended December 31,
|
Year Ended December 31,
(Unaudited) |
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net income (loss)
|
$
|
5,032
|
$
|
7,706
|
$
|
(6,545
|
)
|
$
|
(11,484
|
)
|
||||||
|
Interest expense, net
|
672
|
492
|
2,391
|
7,042
|
||||||||||||
|
Provision (benefit) for income taxes
|
50
|
(424
|
)
|
200
|
(274
|
)
|
||||||||||
|
Depreciation and amortization
|
2,131
|
2,264
|
8,421
|
8,702
|
||||||||||||
|
EBITDA
|
$
|
7,885
|
$
|
10,038
|
$
|
4,467
|
$
|
3,986
|
||||||||
|
Three Months Ended December 31,
(Unaudited) |
||||||||||||||||
|
Transportation and Skilled Trades
|
Healthcare and Other Professions
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net income
|
$
|
8,913
|
$
|
8,987
|
$
|
3,718
|
$
|
3,018
|
||||||||
|
Interest expense, net
|
2
|
2
|
3
|
3
|
||||||||||||
|
Provision (benefit) for income taxes
|
-
|
-
|
-
|
-
|
||||||||||||
|
Depreciation and amortization
|
1,926
|
2,027
|
70
|
34
|
||||||||||||
|
EBITDA
|
$
|
10,841
|
$
|
11,016
|
$
|
3,791
|
$
|
3,055
|
||||||||
|
Three Months Ended December 31,
(Unaudited) |
||||||||||||||||
|
Transitional
|
Corporate
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net loss
|
$
|
(3,099
|
)
|
$
|
(1,223
|
)
|
$
|
(4,500
|
)
|
$
|
(3,076
|
)
|
||||
|
Interest expense, net
|
-
|
-
|
667
|
487
|
||||||||||||
|
Provision (benefit) for income taxes
|
-
|
-
|
50
|
(424
|
)
|
|||||||||||
|
Depreciation and amortization
|
8
|
67
|
127
|
136
|
||||||||||||
|
EBITDA
|
$
|
(3,091
|
)
|
$
|
(1,156
|
)
|
$
|
(3,656
|
)
|
$
|
(2,877
|
)
|
||||
|
Year Ended December 31,
(Unaudited) |
||||||||||||||||
|
Transportation and Skilled Trades
|
Healthcare and Other Professions
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net income
|
$
|
17,659
|
$
|
17,812
|
$
|
6,466
|
$
|
3,933
|
||||||||
|
Interest expense, net
|
2
|
(16
|
)
|
3
|
3
|
|||||||||||
|
Provision (benefit) for income taxes
|
-
|
-
|
-
|
-
|
||||||||||||
|
Depreciation and amortization
|
7,568
|
7,976
|
250
|
72
|
||||||||||||
|
EBITDA
|
$
|
25,229
|
$
|
25,772
|
$
|
6,719
|
$
|
4,008
|
||||||||
|
Year Ended December 31,
(Unaudited) |
||||||||||||||||
|
Transitional
|
Corporate
|
|||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
|||||||||||||
|
Net loss
|
$
|
(5,994
|
)
|
$
|
(6,926
|
)
|
$
|
(24,676
|
)
|
$
|
(26,303
|
)
|
||||
|
Interest expense, net
|
-
|
-
|
2,386
|
7,055
|
||||||||||||
|
Provision (benefit) for income taxes
|
-
|
-
|
200
|
(274
|
)
|
|||||||||||
|
Depreciation and amortization
|
18
|
96
|
585
|
558
|
||||||||||||
|
EBITDA
|
$
|
(5,976
|
)
|
$
|
(6,830
|
)
|
$
|
(21,505
|
)
|
$
|
(18,964
|
)
|
||||
|
Three Months Ended December 31,
(Unaudited) |
|||||||||
|
Total
Company |
Total
Company |
% Change
Same School Basis |
|||||||
|
2018
|
2017
|
2018
|
|||||||
|
Total Company Revenue
|
$
|
70,113
|
$
|
67,401
|
|||||
|
Less: Transitional Revenue
|
(1,107
|
)
|
(3,187
|
)
|
|||||
|
Revenue on Same School Basis
|
$
|
69,006
|
$
|
64,214
|
7.5%
|
||||
|
Year Ended December 31,
(Unaudited) |
|||||||||
|
Total
Company |
Total
Company |
% Change
Same School Basis |
|||||||
|
2018
|
2017
|
2018
|
|||||||
|
Total Company Revenue
|
$
|
263,200
|
$
|
261,853
|
|||||
|
Less: Transitional Revenue
|
(5,802
|
)
|
(16,884
|
)
|
|||||
|
Revenue on Same School Basis
|
$
|
257,398
|
$
|
244,969
|
5.1%
|
||||
|
Three Months Months Ended December 31,
(Unaudited) |
||||||||||||
|
2018
|
2017
|
% Change
|
||||||||||
|
Revenue:
|
||||||||||||
|
Transportation and Skilled Trades
|
$
|
49,425
|
$
|
47,044
|
5.1
|
%
|
||||||
|
Healthcare and Other Professions
|
19,581
|
17,171
|
14.0
|
%
|
||||||||
|
Transitional
|
1,107
|
3,186
|
-65.3
|
%
|
||||||||
|
Total
|
$
|
70,113
|
$
|
67,401
|
4.0
|
%
|
||||||
|
Operating
Income (Loss):
|
||||||||||||
|
Transportation and Skilled Trades
|
$
|
8,914
|
$
|
8,991
|
-0.9
|
%
|
||||||
|
Healthcare and Other Professions
|
3,720
|
3,017
|
23.3
|
%
|
||||||||
|
Transitional
|
(3,099
|
)
|
(1,222
|
)
|
-153.6
|
%
|
||||||
|
Corporate
|
(3,781
|
)
|
(3,012
|
)
|
-25.5
|
%
|
||||||
|
Total
|
$
|
5,754
|
$
|
7,774
|
26.0
|
%
|
||||||
|
Starts:
|
||||||||||||
|
Transportation and Skilled Trades
|
1,138
|
1,068
|
6.6
|
%
|
||||||||
|
Healthcare and Other Professions
|
975
|
817
|
19.3
|
%
|
||||||||
|
Transitional
|
-
|
8
|
-100.0
|
%
|
||||||||
|
Total
|
2,113
|
1,893
|
11.6
|
%
|
||||||||
|
Average
Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
7,498
|
7,135
|
5.1
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,513
|
3,200
|
9.8
|
%
|
||||||||
|
Transitional
|
142
|
519
|
-72.6
|
%
|
||||||||
|
Total
|
11,153
|
10,854
|
2.8
|
%
|
||||||||
|
End of
Period Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
6,988
|
6,626
|
5.5
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,537
|
3,136
|
12.8
|
%
|
||||||||
|
Transitional
|
-
|
397
|
-100.0
|
%
|
||||||||
|
Total
|
10,525
|
10,159
|
3.6
|
%
|
||||||||
|
Year Ended December 31,
(Unaudited) |
||||||||||||
|
2018
|
2017
|
% Change
|
||||||||||
|
Revenue:
|
||||||||||||
|
Transportation and Skilled Trades
|
$
|
185,263
|
$
|
181,328
|
2.2
|
%
|
||||||
|
Healthcare and Other Professions
|
72,135
|
63,641
|
13.3
|
%
|
||||||||
|
Transitional
|
5,802
|
16,884
|
-65.6
|
%
|
||||||||
|
Total
|
$
|
263,200
|
$
|
261,853
|
0.5
|
%
|
||||||
|
Operating Income (Loss):
|
||||||||||||
|
Transportation and Skilled Trades
|
$
|
17,661
|
$
|
17,795
|
-0.8
|
%
|
||||||
|
Healthcare and Other Professions
|
6,469
|
3,937
|
64.3
|
%
|
||||||||
|
Transitional
|
(5,994
|
)
|
(6,926
|
)
|
13.5
|
%
|
||||||
|
Corporate
|
(22,090
|
)
|
(19,522
|
)
|
-13.2
|
%
|
||||||
|
Total
|
$
|
(3,954
|
)
|
$
|
(4,716
|
)
|
16.2
|
%
|
||||
|
Starts:
|
||||||||||||
|
Transportation and Skilled Trades
|
8,294
|
7,763
|
6.8
|
%
|
||||||||
|
Healthcare and Other Professions
|
4,023
|
3,673
|
9.5
|
%
|
||||||||
|
Transitional
|
140
|
363
|
-61.4
|
%
|
||||||||
|
Total
|
12,457
|
11,799
|
5.6
|
%
|
||||||||
|
Average Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
7,042
|
6,961
|
1.2
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,312
|
3,024
|
9.5
|
%
|
||||||||
|
Transitional
|
237
|
787
|
-69.9
|
%
|
||||||||
|
Total
|
10,591
|
10,772
|
-1.7
|
%
|
||||||||
|
End of Period Population:
|
||||||||||||
|
Transportation and Skilled Trades
|
6,988
|
6,626
|
5.5
|
%
|
||||||||
|
Healthcare and Other Professions
|
3,537
|
3,136
|
12.8
|
%
|
||||||||
|
Transitional
|
-
|
397
|
-100.0
|
%
|
||||||||
|
Total
|
10,525
|
10,159
|
3.6
|
%
|
||||||||
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP, INC.
Investor Relations: Doug Sherk, dsherk@evcgroup.com; 415-652-9100
Media Relations: Tom Gibson, 201-476-0322