Exhibit 99.1

Lincoln Educational Services Reports Second Quarter 2022 Results

Actions Taken to Execute Five Year Growth Strategy

Conference Call Today at 10 a.m. ET

Second Quarter 2022 vs Second Quarter 2021 Financial Highlights and Recent Operating Developments

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Revenue of $82.1 million, up 2.1%

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Student starts increased by 4.0%

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Adjusted EBITDA* of $2.4 million

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Cash of $67.0 million and debt free; Generated cash from operations of $4.4 million

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Announced new Atlanta, Georgia campus expected to open in third quarter of 2023

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Repurchased 414,963 shares of Company common stock for approximately $2.5 million

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Completed sale of Suffield, Connecticut property generating net proceeds of $2.4 million and gain on sale of $0.2 million

*See Use of “Non-GAAP Financial Information” below.

“During the second quarter, we continued to execute our five-year growth strategy while operating in an exceptionally low unemployment environment that continues to foster significant wage inflation,” commented Scott Shaw, President & CEO. “We announced the development of a second campus in the Atlanta metropolitan market that we forecast will add $20 million a year in revenue and $5 million of EBITDA within four years of its opening.  In addition, we entered into three new corporate partnerships with industry leaders in the electric vehicle market, automotive paints and coatings, and collision repair segments.  And, we continued to add new training programs at our existing campuses and further implemented a new hybrid education delivery model.”

“Although we achieved four percent student start growth during the quarter, our start growth was less than we anticipated.  Throughout this year, we have experienced strong double-digit growth in enrollments across our campuses.  However, conversion of these enrollments into new student starts has become more challenging in the current environment.  As a result, we ended the quarter with a lower student start rate than we anticipated and expect that these challenges will continue into the second half of the year. We believe macro-operating factors such as ongoing labor shortages, high inflation, and growing economic uncertainty are all playing a role. We also believe that our transitioning to a centralized financial aid support system has temporarily impacted and contributed to recent lower start conversion rates. Centralizing our financial aid support system replaces the decentralized campus system, which when fully implemented by the end of the year will streamline financial aid decisions and award processes.”

“We continue to improve our student retention and graduate placement rates and continue to see strong demand for our graduates.  We are confident that the combination of the efficiency improvements we are implementing this year, and execution of our five-year growth strategy will position Lincoln for long-term growth and higher profitability.  Our confidence in the Company’s future is expressed in part through the recently approved share repurchase plan which was utilized to repurchase some 400,000 shares during the second quarter.”

2022 SECOND QUARTER FINANCIAL RESULTS

(Quarter ended June 30, 2022 compared to quarter ended June 30, 2021)

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Revenue increased $1.6 million, or 2.1%, to $82.1 million from $80.5 million in the prior year comparable period.  The increase was mainly driven by approximately 230 more students at the start of the quarter as compared to last year and an overall 1.2% increase in average student population over the prior year comparable period.

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Educational services and facilities expense increased $2.4 million, or 7.2%, to $36.1 million from $33.7 million in the prior year comparable period.  Increased costs were primarily concentrated in instructional expense and facilities expense.

Instructional salaries increased mainly due to wage increases driven by the market and higher staffing levels, because of population growth and program expansion.  In addition, consumable costs increased significantly over prior year driven by inflation and supply chain shortages.

Facilities expense was higher in part due to approximately $0.8 million of additional rent expense related to the sale leaseback transaction completed in the fourth quarter of 2021.

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Selling, general and administrative expense increased $2.5 million, or 5.8% to $45.8 million from $43.3 million in the prior year comparable period.  The increase was primarily driven by additional bad debt expense resulting from lower repayment rates, an increase in medical expenses due to higher claims and one-time expenses in connection with growth and efficiency initiatives.

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Gain on sale of asset was $0.2 million for the quarter, as a result of the sale of a former campus property in Suffield, Connecticut.  Net proceeds received from the sale were approximately $2.4 million.

 

RECENT BUSINESS DEVELOPMENTS

 

 

SECOND QUARTER SEGMENT RESULTS

Transportation and Skilled Trades Segment

Revenue increased $1.0 million, or 1.8% to $58.0 million from $57.0 million in the prior year comparable period.  The increase was due a to 3.8% increase in average student population driven by a higher beginning of period population in the current quarter of approximately 350 students.

Adjusted EBITDA was $8.3 million compared to $12.8 million in the prior year. The current quarter includes $0.8 million of additional rent expense related to the sale leaseback transaction related to the Denver and Grand Prairie campuses.

Healthcare and Other Professions Segment

Adjusted EBITDA was $1.8 million compared to $3.1 million in the prior year.

Corporate and Other

This category includes unallocated expenses incurred on behalf of the entire Company.  Corporate and other expenses were $8.3 million and $10.8 million for the three months ended June 30, 2022 and 2021, respectively.  The decrease in expense in 2022 was primarily driven by lower incentive compensation.

•	Total revenue increased $6.2 million, or 3.9%, to $164.7 million, compared to $158.5 million.

•	Transportation and Skilled Trades segment revenue increased $4.1 million, or 3.7%, to $116.7 million, compared to $112.6 million.

•	The Healthcare and Other Professions segment revenue increased $2.1 million, or 4.6%, to $47.9 million, compared to $45.8 million.

FULL YEAR 2022 OUTLOOK

Based on the Company’s six-month results and current expectations regarding a lower level of start growth than previously anticipated, Lincoln is updating its 2022 full year guidance ⁽¹⁾ as follows:

*See Use of “Non-GAAP Financial Information” below

(1)

The outlook is based on, among other things, current enrollment trends and does not account for the impact from changes in COVID-19 restrictions or any new COVID-19 variants.  Accordingly, this guidance may be revised as the year continues to unfold due to changes in student demand and other factors.

Lincoln will host a conference call today at 10:00 a.m. Eastern Daylight 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: Q2 2022 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

 

 

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, our inability to close on the sale of our Nashville campus; 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; the COVID-19 pandemic and its impact on our business and the U.S. and global economics; 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)

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

 

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

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