New Jersey
|
000-51371
|
57-1150621
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
Not applicable
|
(Former name or former address, if changed since last report)
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange on which
registered
|
Common Stock No Par Value
|
LINC
|
NASDAQ
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01 |
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
|
|
Press release of Lincoln Educational Services Corporation dated May 10, 2021 |
LINCOLN EDUCATIONAL SERVICES CORPORATION
|
|||
Date: May 10, 2021 | |||
|
By:
|
/s/ Brian K. Meyers
|
Name:
|
Brian K. Meyers
|
|
Title:
|
Executive Vice President, Chief Financial Officer and Treasurer
|
• |
New student starts rose 30.6%, or by approximately 800 students.
|
• |
Ending student population increased 15.5% to 12,646.
|
• |
Revenue increased 11.4% to $78.0 million.
|
• |
Operating income of $6.0 million versus operating loss of $1.3 million.
|
• |
Net income of $4.5 million versus net loss of $1.8 million.
|
• |
Adjusted EBITDA* of $8.4 million versus $0.8 million.
|
• |
Revenue increased $8.0 million, or 11.4% to $78.0 million from $70.0 million. The increase was largely due to the 9.8% increase in average student population compared to the prior year. The primary revenue
drivers were beginning the year with approximately 1,000 more students than at the beginning of 2020, coupled with the quarters increase in new student starts.
|
• |
Student starts increased 30.6% or by approximately 800 students over the prior year comparable period. Contributing to the favorable comparison approximately 300 student starts scheduled for last year’s
first quarter were delayed to the second quarter due to the onset of the pandemic. Student starts have consistently grown over the last three years.
|
• |
Educational services and facilities expense increased $2.1 million, or 7.0% to $32.3 million from $30.2 million in the prior year comparable quarter. The increase was due mainly to a higher student
population.
|
• |
Selling, general and administrative expense decreased $1.5 million, or 3.7% to $39.6 million from $41.1 million in the prior year comparable quarter. The decrease was partially due to a $2.4 million
reduction in bad debt expense resulting from the new government guidance on the uses of institutional CARES Act funds.
|
• |
Operating income increased to $6.0 million from an operating loss of $1.3 million in the prior year comparable quarter.
|
• |
Pre-tax income increased to $5.7 million, from a pre-tax loss of $1.7 million in the prior year comparable quarter.
|
• |
Provision for income taxes increased to $1.2 million, from less than $0.1 million in the prior year comparable quarter. The increase quarter over quarter was due to the reversal of a full valuation allowance
at December 31, 2020, resulting in an effective tax rate of 21.7% in the current quarter.
|
• |
Net income improved to $4.5 million, or $0.13 per diluted share, compared to a net loss of $1.8 million, or $0.08 per diluted share.
|
• |
Reaffirming annual revenue growth of 7% to 12% over 2020.
|
• |
Reaffirming full year student starts growth of 5% to 10% over 2020.
|
• |
Raising adjusted EBITDA by $3.0 million to between $32.0 million and $37.0 million as compared to $23.9 million in 2020.
|
• |
Raising pre-tax Income by $3.0 million to between $22.0 million and $27.0 million as compared to $13.5 million in 2020.
|
• |
Reaffirming capital expenditures of approximate $7.5 million.
|
• |
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 1368208.
|
Three Months Ended
March 31,
(Unaudited)
|
||||||||
2021
|
2020
|
|||||||
REVENUE
|
$
|
77,996
|
$
|
70,041
|
||||
COSTS AND EXPENSES:
|
||||||||
Educational services and facilities
|
32,344
|
30,238
|
||||||
Selling, general and administrative
|
39,633
|
41,149
|
||||||
Total costs & expenses
|
71,977
|
71,387
|
||||||
OPERATING INCOME (LOSS)
|
6,019
|
(1,346
|
)
|
|||||
OTHER:
|
||||||||
Interest expense
|
(285
|
)
|
(354
|
)
|
||||
INCOME (LOSS) BEFORE INCOME TAXES
|
5,734
|
(1,700
|
)
|
|||||
PROVISION FOR INCOME TAXES
|
1,245
|
50
|
||||||
NET INCOME (LOSS)
|
$
|
4,489
|
$
|
(1,750
|
)
|
|||
PREFERRED STOCK DIVIDENDS
|
304
|
-
|
||||||
INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
4,185
|
$
|
(1,750
|
)
|
|||
Basic
|
||||||||
Net income (loss) per common share
|
$
|
0.13
|
$
|
(0.08
|
)
|
|||
Diluted
|
||||||||
Net income (loss) per common share
|
$
|
0.13
|
$
|
(0.08
|
)
|
|||
Weighted average number of common shares outstanding:
|
||||||||
Basic
|
24,889
|
24,598
|
||||||
Diluted
|
24,889
|
24,598
|
||||||
Other data:
|
||||||||
Adjusted EBITDA (1)
|
$
|
8,413
|
$
|
836
|
||||
Depreciation and amortization
|
$
|
1,901
|
$
|
1,890
|
||||
Number of campuses
|
22
|
22
|
||||||
Average enrollment
|
12,336
|
11,237
|
||||||
Stock-based compensation
|
$
|
493
|
$
|
292
|
||||
Net cash used in operating activities
|
$
|
(8,299
|
)
|
$
|
(11,947
|
)
|
||
Net cash used in investing activities
|
$
|
(1,219
|
)
|
$
|
(1,287
|
)
|
||
Net cash used in financing activities
|
$
|
(1,766
|
)
|
$
|
(15,669
|
)
|
Selected Consolidated Balance Sheet Data: |
March 31, 2021
(Unaudited)
|
|||
Cash and cash equivalents
|
$
|
26,742
|
||
Current assets
|
70,782
|
|||
Working capital
|
10,232
|
|||
Total assets
|
239,853
|
|||
Current liabilities
|
60,550
|
|||
Long-term debt obligations, including current portion, net of deferred financing fees
|
16,757
|
|||
Series A convertible preferred stock
|
11,982
|
|||
Total stockholders' equity
|
94,860
|
• |
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.
|
Three Months Ended March 31,
(Unaudited)
|
||||||||
2021
|
2020
|
|||||||
Net income (loss)
|
$
|
4,489
|
$
|
(1,750
|
)
|
|||
Interest expense, net
|
285
|
354
|
||||||
Provision for income taxes
|
1,245
|
50
|
||||||
Depreciation and amortization
|
1,901
|
1,890
|
||||||
EBITDA
|
7,920
|
544
|
||||||
Stock compensation expense
|
493
|
292
|
||||||
Adjusted EBITDA
|
$
|
8,413
|
$
|
836
|
Three Months Ended March 31,
(Unaudited)
|
||||||||||||||||||||||||
Transportation and Skilled Trades
|
Healthcare and Other Professions
|
Corporate
|
||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
2021
|
2020
|
|||||||||||||||||||
Net income (loss)
|
$
|
12,324
|
$
|
4,840
|
$
|
2,949
|
$
|
2,001
|
$
|
(10,784
|
)
|
$
|
(8,591
|
)
|
||||||||||
Interest expense, net
|
-
|
-
|
-
|
-
|
285
|
354
|
||||||||||||||||||
Provision for income taxes
|
-
|
-
|
-
|
-
|
1,245
|
50
|
||||||||||||||||||
Depreciation and amortization
|
1,672
|
1,659
|
116
|
120
|
113
|
111
|
||||||||||||||||||
EBITDA
|
13,996
|
6,499
|
3,065
|
2,121
|
(9,141
|
)
|
(8,076
|
)
|
||||||||||||||||
Stock compensation expeense
|
-
|
-
|
-
|
-
|
493
|
292
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
13,996
|
$
|
6,499
|
$
|
3,065
|
$
|
2,121
|
$
|
(8,648
|
)
|
$
|
(7,784
|
)
|
Three Months Ended March 31,
|
||||||||||||
2021
|
2020
|
% Change
|
||||||||||
Revenue:
|
||||||||||||
Transportation and Skilled Trades
|
$
|
55,670
|
$
|
49,056
|
13.5
|
%
|
||||||
Healthcare and Other Professions
|
22,326
|
20,985
|
6.4
|
%
|
||||||||
Total
|
$
|
77,996
|
$
|
70,041
|
11.4
|
%
|
||||||
Operating Income (Loss):
|
||||||||||||
Transportation and Skilled Trades
|
$
|
12,324
|
$
|
4,840
|
154.6
|
%
|
||||||
Healthcare and Other Professions
|
2,949
|
2,000
|
47.5
|
%
|
||||||||
Corporate
|
(9,254
|
)
|
(8,186
|
)
|
-13.0
|
%
|
||||||
Total
|
$
|
6,019
|
$
|
(1,346
|
)
|
547.2
|
%
|
|||||
Starts:
|
||||||||||||
Transportation and Skilled Trades
|
2,339
|
1,720
|
36.0
|
%
|
||||||||
Healthcare and Other Professions
|
1,209
|
996
|
21.4
|
%
|
||||||||
Total
|
3,548
|
2,716
|
30.6
|
%
|
||||||||
Average Population:
|
||||||||||||
Transportation and Skilled Trades
|
8,032
|
7,305
|
10.0
|
%
|
||||||||
Leave of Absence - COVID-19
|
(15
|
)
|
(33
|
)
|
54.5
|
%
|
||||||
Transportation and Skilled Trades Excluding Leave of Absence - COVID-19
|
8,017
|
7,272
|
10.2
|
%
|
||||||||
Healthcare and Other Professions
|
4,409
|
3,987
|
10.6
|
%
|
||||||||
Leave of Absence - COVID-19
|
(90
|
)
|
(22
|
)
|
-309.1
|
%
|
||||||
Healthcare and Other Professions Excluding Leave of Absence - COVID-19
|
4,319
|
3,965
|
8.9
|
%
|
||||||||
Total
|
12,441
|
11,292
|
10.2
|
%
|
||||||||
Total Excluding Leave of Absence - COVID-19
|
12,336
|
11,237
|
9.8
|
%
|
||||||||
End of Period Population:
|
||||||||||||
Transportation and Skilled Trades
|
8,212
|
7,250
|
13.3
|
%
|
||||||||
Leave of Absence - COVID-19
|
(19
|
)
|
(131
|
)
|
85.5
|
%
|
||||||
Transportation and Skilled Trades Excluding Leave of Absence - COVID-19
|
8,193
|
7,119
|
15.1
|
%
|
||||||||
Healthcare and Other Professions
|
4,532
|
4,021
|
12.7
|
%
|
||||||||
Leave of Absence - COVID-19
|
(79
|
)
|
(193
|
)
|
59.1
|
%
|
||||||
Healthcare and Other Professions Excluding Leave of Absence - COVID-19
|
4,453
|
3,828
|
16.3
|
%
|
||||||||
Total
|
12,744
|
11,271
|
13.1
|
%
|
||||||||
Total Excluding Leave of Absence - COVID-19
|
12,646
|
10,947
|
15.5
|
%
|