0001140361-24-046113 | 10-Q | XBRL Viewer | Lincoln Educational Services Corp

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2024

7.	STOCKHOLDERS’ EQUITY

Common Stock

Holders of our Common Stock are entitled to receive dividends when and as declared by our Board of Directors and have the right to one vote per share on all matters requiring shareholder approval. The Company has not declared or paid any cash dividends on our Common Stock since the Company’s Board of Directors discontinued our quarterly cash dividend program in February 2015. The Company currently has no intention to pay cash dividends to holders of Common Stock in the foreseeable future.

Restricted Stock

The Company currently has only one active stock incentive plan: the Lincoln Educational Services Corporation 2020 Long-Term Incentive Plan (the “LTIP”)

LTIP

On March 26, 2020, the Board of Directors adopted the LTIP to provide an incentive to certain directors, officers, employees and consultants of the Company to align their interests in the Company’s success with those of its shareholders through the grant of equity-based awards. On June 16, 2020, the shareholders of the Company approved the LTIP. The LTIP is administered by the Compensation Committee of the Board of Directors, or such other qualified committee appointed by the Board of Directors, which will, among other duties, have the full power and authority to take all actions and make all determinations required or provided for under the LTIP. Pursuant to the LTIP, the Company may grant options, share appreciation rights, restricted shares, restricted share units, incentive stock options and nonqualified stock options. Under the LTIP, employees may surrender shares as payment of applicable income tax withholding on the vested Restricted Stock. The LTIP has a duration of 10 years. On February 23, 2023, the Board of Directors approved, subject to shareholder approval, an amendment of the LTIP to increase the aggregate number of shares available under the LTIP from 2,000,000 shares to 4,000,000 shares. The amendment was approved and adopted by the shareholders at the Annual Meeting of Shareholders held on May 5, 2023.

For the three and nine months ended September 30, 2024, the Company completed a net share settlement of 7,252 shares and 315,611 shares, respectively, compared to zero shares and 337,050 shares for the three and nine months ended September 30, 2023, respectively. The net share settlement was performed on behalf of certain employees that participate in the LTIP upon the vesting of the restricted shares pursuant to the terms of the LTIP. The net share settlement was in connection with income taxes incurred on restricted shares that vested and were transferred to the employees during 2024 and/or 2023, creating taxable income for the employees. At the employees’ request, the Company paid these taxes on behalf of the employees in exchange for the employees returning an equivalent value of restricted shares to the Company. These transactions resulted in decreases of $0.1 million and $3.1 million for the three and nine months ended September 30, 2024, respectively, compared to zero and $2.0 million for the three and nine months ended September 30, 2023, respectively. These transactions resulted in a decrease to equity on the Condensed Consolidated Balance Sheets as the cash payment of the taxes effectively was a repurchase of the restricted shares granted in previous years.

The following is a summary of transactions pertaining to Restricted Stock:

	Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested Restricted Stock outstanding at December 31, 2023		1,398,675		$	5.16
Granted		459,181			9.72
Canceled		(16,261	)		8.71
Vested		(874,948	)		6.52
Nonvested Restricted Stock outstanding at September 30, 2024		966,647		$	7.96

The Restricted Stock expense for the three and nine months ended September 30, 2024 was $1.2 million and $3.4 million, respectively, compared to $0.7 million and $4.0 million for the three and nine months ended September 30, 2023, respectively. The unrecognized Restricted Stock expense as of September 30, 2024 and December 31, 2023 was $5.5 million and $4.3 million, respectively. As of September 30, 2024, the outstanding shares of Restricted Stock had an aggregate intrinsic value of $11.5 million.

Share Repurchase Plan

On May 24, 2022, the Company announced that its Board of Directors had authorized a share repurchase program of up to $30.0 million of the Company’s outstanding Common Stock. The repurchase program was authorized for 12 months. Pursuant to the program, purchases may be made, from time to time, in open-market transactions at prevailing market prices, in privately negotiated transactions or by other means as determined by the Company’s management and in accordance with applicable federal securities laws. The timing of purchases and the number of shares repurchased under the program depend on a variety of factors including price, trading volume, corporate and regulatory requirements and market conditions. The Company retains the right to limit, terminate or extend the share repurchase program at any time without prior notice.

On February 27, 2023, the Board of Directors extended the share repurchase program for an additional 12 months and authorized the repurchase of an additional $10.0 million of the Company’s Common Stock, for an aggregate of up to $30.6 million in additional repurchases.

On May 7, 2024, the Company announced that its Board of Directors had authorized an extension of the share repurchase program for an additional 12 months through May 24, 2025. During the three months ended September 30, 2024 and 2023, the Company did not repurchase any shares under the share repurchase program. For the nine months ended September 30, 2024 and 2023, respectively, the Company repurchased zero shares and 165,064 shares at a cost of $0.9 million. As of September 30, 2024, the Company had approximately $29.7 million remaining for repurchases under the program. Since inception of the program, the Company has made repurchases of approximately 1.7 million shares of the Company’s Common Stock at an average share price of $5.95 for an aggregate expenditure of approximately $10.3 million.

The following table presents information about our repurchases of Common Stock, all of which were completed through open market purchases:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2024		2023		2024		2023
Total number of shares repurchased¹		-		-		-		165,064
Total cost of shares repurchased	$	-	$	-	$	-	$	891

¹ These shares were subsequently canceled and recorded as a reduction of Common Stock.

- Definition

The entire disclosure for equity.

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+ Details

NET EARNINGS PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2024

NET EARNINGS PER COMMON SHARE [Abstract]

Weighted Average Number of Common Shares Used to Compute Basic and Diluted Earnings Per Share

The weighted average number of common shares used to compute basic and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Basic shares outstanding		30,681,594		30,163,745		30,547,187		30,114,926
Dilutive effect of stock options		359,998		534,730		259,060		340,229
Diluted shares outstanding		31,041,592		30,698,475		30,806,247		30,455,155

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other comprehensive loss
Employee pension plan adjustments, taxes (nil)	$ 0	$ 0	$ 0	$ 0

SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2024

SUBSEQUENT EVENT [Abstract]

SUBSEQUENT EVENT

13.	Subsequent Event

Planned Sale of Las Vegas, Nevada Campus

Subsequent to the end of the third quarter, the board of directors approved a plan to sell the assets related to its Las Vegas, Nevada campus operated under Euphoria Institute of Beauty Arts & Sciences (“Euphoria”). The Company is in discussions with a prospective purchaser and expects to enter into a signed agreement prior to year-end. While the proposed transaction will not be material, it is expected that, for regulatory purposes, the transaction will be a school closure by Lincoln. There are currently approximately 300 students enrolled in programs at Euphoria and it is further expected that enrolled students would be permitted to transfer to the purchaser-operated school post-closing and continue their programs such that the sale should not have a significant impact on the student experience. In the fourth quarter, net assets of Euphoria will be classified on the balance sheet as assets held for sale and the related statement of operations information will be classified in the Transitional segment.

The DOE has confirmed that the proposed transaction will not be treated as a change in ownership and, instead, it will be treated as the closure of Euphoria and the establishment of a new location by the purchaser at the site of Euphoria. Although the parties intend to work toward enabling our current students at the Las Vegas, Nevada campus to complete their programs with the purchaser, certain current and former students could qualify for closed school loan discharges if they do not continue and complete their programs and, in turn, the DOE could impose liabilities and other sanctions on us based on any such closed school loan discharges. Also, we will be required to comply with other DOE, state, and accreditor requirements associated with the transaction, the transfer of the site, and the teaching of current students. Based on current discussions, the transaction is currently expected to close in January, 2025, subject to receipt of required regulatory approvals and satisfaction of other closing conditions.

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION, Income Taxes (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Taxes [Abstract]
Interest and penalties expense	$ 0	$ 0
Uncertain tax positions	$ 0	$ 0

SEGMENTS

9 Months Ended

Sep. 30, 2024

SEGMENTS [Abstract]

SEGMENTS

10.

SEGMENTS

As of January 1, 2023, the Company’s business has been organized into two reportable business segments: (a) Campus Operations; and (b) Transitional. These segments are defined below:

Campus Operations – The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance.

Transitional – The Transitional segment refers to campuses that have been marked for closure and are being taught out. As of September 30, 2024, no campuses were classified in the Transitional segment. During the prior year, the Company’s Somerville, Massachusetts campus was classified in the Transitional segment. The campus was fully taught out as of December 31, 2023.

We evaluate performance based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption “Corporate,” which primarily includes unallocated corporate activity.

Summary financial information by reporting segment is as follows:

	For the Three Months Ended September 30,
	Revenue										Operating Income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
Campus Operations	$	114,410		100.0	%	$	99,527		99.9	%	$	14,865		$	11,889
Transitional		-		0.0	%		91		0.1	%		-			(745	)
Corporate		-		0.0	%		-		0.0	%		(9,043	)		(9,148	)
Total	$	114,410		100.0	%	$	99,618		100.0	%	$	5,822		$	1,996

	For the Nine Months Ended September 30,
	Revenue										Operating income (Loss)
	2024		% of Total			2023		% of Total			2024			2023
Campus Operations	$	320,691		100.0	%	$	274,093		99.5	%	$	36,819		$	26,167
Transitional		-		0.0	%		1,455		0.5	%		-			(1,423	)
Corporate		-					-					(32,571	)		(347	)
Total	$	320,691		100.0	%	$	275,548		100.0	%	$	4,248		$	24,397

	Total Assets
	September 30, 2024		December 31, 2023
Campus Operations	$	319,340	$	234,940
Transitional		-		262
Corporate		84,682		110,047
Total	$	404,022	$	345,249

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

STOCKHOLDERS' EQUITY, Restricted Stock (Details) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) shares	Sep. 30, 2024 USD ($) Plan $ / shares shares	Sep. 30, 2023 USD ($) shares	Dec. 31, 2023 USD ($)	May 05, 2023 shares	May 04, 2023 shares
Stockholders' Equity Note Details [Abstract]
Number of stock incentive plans \| Plan			1
Restricted Stock [Member]
Shares [Abstract]
Nonvested Restricted Stock outstanding, beginning balance (in shares)			1,398,675
Granted (in shares)			459,181
Cancelled (in shares)			(16,261)
Vested (in shares)			(874,948)
Nonvested Restricted Stock outstanding, ending balance (in shares)	966,647		966,647
Weighted Average Grant Date Fair Value [Abstract]
Nonvested Restricted Stock outstanding, beginning balance (in dollars per share) \| $ / shares			$ 5.16
Granted (in dollars per share) \| $ / shares			9.72
Cancelled (in dollars per share) \| $ / shares			8.71
Vested (in dollars per share) \| $ / shares			6.52
Nonvested Restricted Stock outstanding, ending balance (in dollars per share) \| $ / shares	$ 7.96		$ 7.96
Recognized restricted stock expense \| $	$ 1.2	$ 0.7	$ 3.4	$ 4.0
Unrecognized restricted stock expense \| $	5.5		$ 5.5		$ 4.3
LTIP [Member]
Stockholders' Equity Note Details [Abstract]
Number of shares available for issuance under incentive plan (in shares)						4,000,000	2,000,000
LTIP [Member] \| June 16, 2020 [Member]
Stockholders' Equity Note Details [Abstract]
Stock option award issuance, plan duration			10 years
LTIP [Member] \| Restricted Stock [Member]
Weighted Average Grant Date Fair Value [Abstract]
Outstanding restricted shares, intrinsic value \| $	$ 11.5		$ 11.5
Non Employee Directors Plan [Member]
Stockholders' Equity Note Details [Abstract]
Net share settlement for restricted stock (in shares)	7,252	0	315,611	337,050
Decrease in equity due to payment of tax for employee \| $	$ 0.1	$ 0.0	$ 3.1	$ 2.0

LONG-TERM DEBT

9 Months Ended

Sep. 30, 2024

LONG-TERM DEBT [Abstract]

LONG-TERM DEBT

6.	LONG-TERM DEBT

Credit Facility

On February 16, 2024, the Company entered into a secured credit agreement (the “Fifth Third Credit Agreement”) with Fifth Third Bank, National Association (the “Bank”), pursuant to which the Company, as borrower, obtained a revolving credit facility in the aggregate principal amount of $40.0 million including a $10.0 million letter of credit sublimit and a $20.0 million accordion feature (the “Facility”), the proceeds of which are to be used for working capital, general corporate and certain other permitted purposes. The Facility is guaranteed by the Company’s wholly-owned subsidiaries and is secured by a first priority lien in favor of the Bank on substantially all of the personal property owned by the Company and its subsidiaries. The term of the Facility is 36 months, maturing on February 16, 2027.

Each advance under the Facility will bear interest on the outstanding principal amount thereof from the date when made at an interest rate determined at the election of the Company at either the Tranche Rate (which is the forward-looking Secured Overnight Financing Rate (SOFR) for one or three months), or the Base Rate (which is a variable per annum rate, as of any date of determination, equal to the Bank’s Prime Rate), plus an Applicable Margin. The Applicable Margin is determined pursuant to a Pricing Grid, which for loans subject to the Tranche Rate varies from 1.75% to 2.50% and for loans subject to the Base Rate varies from 0.75% to 1.50%. The Applicable Margin may change quarterly based on the Total Leverage Ratio at such time. The Total Leverage Ratio is determined with respect to the Company and its subsidiaries on a consolidated basis for an applicable quarterly period by dividing the aggregate principal amount of various forms of borrowed indebtedness as of the last day of a determination period by EBITDA (earnings before interest expense, taxes, depreciation and amortization) for such period. Interest is paid in arrears, either quarterly or monthly depending on the Company’s interest rate election, with the principal due at maturity.

Under the terms of the Fifth Third Credit Agreement, the Company will pay to the Bank an unused facility fee on the average daily unused balance of the Facility at a rate per annum equal to 0.50%, which fee is payable in arrears on dates when interest is due and payable. The Company will also pay to the Bank a letter of credit fee equal to the Applicable Margin for loans subject to the Tranche Rate multiplied by the maximum amount available to be drawn under such letter of credit.

The Fifth Third Credit Agreement contains customary representations, warranties and affirmative and negative covenants, as well as events of default customary for facilities of this type. In connection with the Fifth Third Credit Agreement, the Company paid the Bank a closing fee in the amount of $200,000 and other customary fees and reimbursements.

On July 18, 2024, the Company entered into a first amendment of the Fifth Third Credit Agreement (“the Amendment”). Among other things, the Amendment contains certain modifications to (i) clarify certain representations and affirmative covenants of the Company, (ii) clarify certain conditions to each advance, (iii) clarify and/or replace certain events of default and (iv) delete or revise certain definitions in order to harmonize them with the other modifications made. The Amendment also contains customary releases, representations and warranties and reaffirmations consistent with the original terms of the Fifth Third Credit Agreement

As of September 30, 2024, there was no debt outstanding under the Facility.

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2024

FAIR VALUE [Abstract]

Fair Market Value of Cash Equivalents and Short-term Investments

The following charts reflect the fair market value of cash equivalents and short-term investments as of September 30, 2024 and December 31, 2023, respectively.

	September 30, 2024
	Carrying		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)		Total
Cash equivalents:
Money market fund	$	43,127	$	43,127	$	-	$	-	$	43,127
Total cash equivalents and short-term investments	$	43,127	$	43,127	$	-	$	-	$	43,127

	December 31, 2023
	Carrying		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)		Total
Cash equivalents:
Money market fund	$	9,037	$	9,037	$	-	$	-	$	9,037
Treasury bill		20,343		20,343		-		-		20,343
Total cash equivalents and short-term investments	$	29,380	$	29,380	$	-	$	-	$	29,380

GOODWILL AND LONG-LIVED ASSETS (Tables)

9 Months Ended

Sep. 30, 2024

GOODWILL AND LONG-LIVED ASSETS [Abstract]

Changes in Carrying Amount of Goodwill

The carrying amount of goodwill on September 30, 2024 and 2023 was as follows:

	Gross Goodwill Balance		Accumulated Impairment Losses			Net Goodwill Balance
Balance as of January 1, 2024	$	117,176	$	(106,434	)	$	10,742
Adjustments		-		-			-
Balance as of September 30, 2024	$	117,176	$	(106,434	)	$	10,742

	Gross Goodwill Balance		Accumulated Impairment Losses			Net Goodwill Balance
Balance as of January 1, 2023	$	117,176	$	(102,640	)	$	14,536
Adjustments		-		(3,794	)		(3,794	)
Balance as of September 30, 2023	$	117,176	$	(106,434	)	$	10,742

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2024

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

1.	DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Business Activities— Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”, “we”, “our”, and “us”, as applicable) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company, which currently operates 22 campuses in 13 states, offers programs in skilled trades (which include HVAC, welding, computerized numerical control and electrical and electronic systems technology, among other programs), automotive technology, healthcare services (which include nursing, dental assistant, and medical administrative assistant, among other programs), hospitality services (which include culinary, therapeutic massage, cosmetology, and aesthetics), and information technology. The schools operate under Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts & Sciences, and associated brand names. Most of the campuses serve major metropolitan markets and each typically offers courses in multiple areas of study. Five of the campuses are destination schools, which attract students from across the United States and, in some cases, from abroad. The Company’s other campuses primarily attract students from their local communities and surrounding areas. All of the campuses are nationally accredited and are eligible to participate in federal financial aid programs by the U.S. Department of Education (“DOE”) and applicable state education agencies and accrediting commissions, which allow students to apply for and access federal student loans as well as other forms of financial aid.

Basis of Presentation – The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. Certain information and footnote disclosures normally included in annual financial statements have been omitted or condensed pursuant to such regulations. These financial statements, which should be read in conjunction with the December 31, 2023 audited Consolidated Financial Statements and notes thereto and related disclosures of the Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Form 10-K”), reflect all adjustments, consisting of normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows for such periods. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2024.

Since January 1, 2023, the Company’s business has been organized into two reportable business segments: (a) Campus Operations; and (b) Transitional. The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance. The Transitional segment refers to campuses that have been marked for closure and are being taught-out. As of September 30, 2024, no campuses were classified in the Transitional segment. During the prior year, the Company’s Somerville, Massachusetts campus was classified in the Transitional segment. The campus was fully taught out as of December 31, 2023.

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. On an ongoing basis, the Company evaluates the estimates and assumptions, including those used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate lease cost, revenue recognition, bad debts, impairments, useful lives of fixed assets, income taxes, benefit plans and certain accruals. Actual results could differ from those estimates.

New Accounting Pronouncements – In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company will adopt this ASU in its Form 10-K for the year-ending December 31, 2024.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASC 740”). The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about the amount of income taxes paid disaggregated (1) by federal, state and foreign taxes, and (2) by individual jurisdictions in which income taxes paid is equal or greater than five percent of total income taxes paid. The amendment also requires entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASC 740 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. We do not expect ASC 740 will have a material impact on our Condensed Consolidated Financial Statements.

Income Taxes— The Company accounts for income taxes in accordance with ASC 740. This statement requires an asset and a liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered.

In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considers, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our Condensed Consolidated Financial Statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s consolidated financial position, results of operations or liquidity. Changes in, among other things, income tax legislation, statutory income tax rates or future income levels could materially impact the Company’s valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods.

We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the nine months ended September 30, 2024 and 2023, we did not record any interest and penalties expense associated with uncertain tax positions, as we did not have any uncertain tax positions.

SEGMENTS (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
SEGMENTS (Details) $ in Thousands	Sep. 30, 2024 USD ($) Campus	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Campus	Sep. 30, 2023 USD ($)	Dec. 31, 2022 Segment	Dec. 31, 2023 USD ($)
SEGMENTS [Abstract]
Number of reportable operating segments \| Segment					2
Summary financial information by reporting segment [Abstract]
Number of campuses \| Campus	22		22
Revenues	$ 114,410	$ 99,618	$ 320,691	$ 275,548
Percentage of Total Revenue	100.00%	100.00%	100.00%	100.00%
Operating Income (Loss)	$ 5,822	$ 1,996	$ 4,248	$ 24,397
Total Assets	404,022		404,022			$ 345,249
Campus Operations [Member]
Summary financial information by reporting segment [Abstract]
Revenues	$ 114,410	99,527	$ 320,691	274,093
Transitional [Member]
Summary financial information by reporting segment [Abstract]
Number of campuses \| Campus	0		0
Reportable Segments [Member] \| Campus Operations [Member]
Summary financial information by reporting segment [Abstract]
Revenues	$ 114,410	$ 99,527	$ 320,691	$ 274,093
Percentage of Total Revenue	100.00%	99.90%	100.00%	99.50%
Operating Income (Loss)	$ 14,865	$ 11,889	$ 36,819	$ 26,167
Total Assets	319,340		319,340			234,940
Reportable Segments [Member] \| Transitional [Member]
Summary financial information by reporting segment [Abstract]
Revenues	$ 0	$ 91	$ 0	$ 1,455
Percentage of Total Revenue	0.00%	0.10%	0.00%	0.50%
Operating Income (Loss)	$ 0	$ (745)	$ 0	$ (1,423)
Total Assets	0		0			262
Corporate [Member]
Summary financial information by reporting segment [Abstract]
Revenues	$ 0	$ 0	0	0
Percentage of Total Revenue	0.00%	0.00%
Operating Income (Loss)	$ (9,043)	$ (9,148)	(32,571)	$ (347)
Total Assets	$ 84,682		$ 84,682			$ 110,047

NET EARNINGS PER COMMON SHARE (Details) - shares	3 Months Ended		9 Months Ended
NET EARNINGS PER COMMON SHARE (Details) - shares	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Weighted Average Number of Shares Outstanding Basic and Diluted [Abstract]
Basic shares outstanding (in shares)	30,681,594	30,163,745	30,547,187	30,114,926
Dilutive effect of stock options (in shares)	359,998	534,730	259,060	340,229
Diluted shares outstanding (in shares)	31,041,592	30,698,475	30,806,247	30,455,155

STOCKHOLDERS' EQUITY, Share Repurchase Plan (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

28 Months Ended

May 07, 2024

Feb. 27, 2023

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

May 24, 2022

STOCKHOLDERS' EQUITY [Abstract]

Authorized amount of share repurchase program

$ 30,000

Period over which common stock can be repurchased

12 months

Additional period over which common stock can be repurchased

12 months

Additional authorized amount of share repurchase program

$ 10,000

Additional amount of shares repurchased

$ 30,600

Remaining authorized amount of share repurchase program

$ 29,700

Average share price (in dollars per share)

$ 5.95

Share Repurchase Program [Abstract]

Total number of shares repurchased (in shares)

^[1]

165,064

^[1]

1,700,000

Amount of shares repurchased

$ 0

$ 891

$ 10,300

[1]	These shares were subsequently canceled and recorded as a reduction of Common Stock.

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2024

STOCKHOLDERS' EQUITY [Abstract]

Transactions Pertaining to Restricted Stock

The following is a summary of transactions pertaining to Restricted Stock:

	Shares			Weighted Average Grant Date Fair Value Per Share
Nonvested Restricted Stock outstanding at December 31, 2023		1,398,675		$	5.16
Granted		459,181			9.72
Canceled		(16,261	)		8.71
Vested		(874,948	)		6.52
Nonvested Restricted Stock outstanding at September 30, 2024		966,647		$	7.96

Repurchases of Common Stock

The following table presents information about our repurchases of Common Stock, all of which were completed through open market purchases:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands, except share data)	2024		2023		2024		2023
Total number of shares repurchased¹		-		-		-		165,064
Total cost of shares repurchased	$	-	$	-	$	-	$	891

¹ These shares were subsequently canceled and recorded as a reduction of Common Stock.

LEASES

9 Months Ended

Sep. 30, 2024

LEASES [Abstract]

LEASES

The Company determines if an arrangement is a lease at its inception. The Company considers any contract where there is an identified asset as to which the Company has the right to control its use in determining whether the contract contains a lease. An operating lease ROU asset represents the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are to be recognized at the commencement date based on the present value of lease payments over the lease term. As all of the Company’s operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. We estimate the incremental borrowing rate based on a yield curve analysis, utilizing the interest rate derived from the fair value analysis of our credit facility and adjusting it for factors that appropriately reflect the profile of secured borrowing over the expected term of the lease. The operating lease ROU assets include any lease payments made prior to the rent commencement date and exclude lease incentives. Our leases have remaining lease terms of one year to 21 years. Lease terms may include options to extend the lease term used in determining the lease obligation when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments are recognized on a straight-line basis over the lease term for operating leases.

During the three months ended September 30, 2024, the Company received gross insurance proceeds in the amount of $2.8 million relating to hail damage at one of our campuses. The proceeds related to the incident have been reported as a gain on insurance proceeds on the statement of operations and disclosed in the operating activities section of the statement of cash flows. Work related to the incident is currently underway. The new asset is expected to be classified as leasehold improvements and amortized over the remining term of the lease.

On September 28, 2023, the Company purchased a 90,000 square foot property located at 311 Veterans Highway, Levittown, Pennsylvania for approximately $10.2 million and subsequently on January 30, 2024 entered into a sale-leaseback transaction for this property. As of December 31, 2023, this property was classified as held-for-sale on the Condensed Consolidated Balance Sheets. However, the sale was consummated in the first quarter of the current year.

On October 18, 2023, the Company entered into a lease for approximately 120,000 square feet of space to serve as the Company’s new campus in Nashville, Tennessee. The lease term commenced on November 1, 2023, with an initial lease term of 15 years. The lease contains two five-year renewal options.

On October 31, 2023, the Company entered into a lease for approximately 100,000 square feet of space to serve as the Company’s new campus in Houston, Texas, which is expected to open in the second half of 2025. The lease term commenced on January 2, 2024, with an initial lease term of 21 years and 6 months. The lease contains three five-year renewal options.

The following table presents components of lease cost and classification on the Condensed Consolidated Statements of Operations:

		Three Months Ended September 30,				Nine Months Ended September 30,
in thousands	Consolidated Statement of Operations Classification	2024		2023		2024		2023
Operating Lease Cost	Selling, general and administrative	$	4,924	$	4,824	$	14,543	$	14,560
Finance lease cost
Amortization of leased assets	Depreciation and amortization		418		-		1,204		-
Interest on lease Liabilities	Interest expense		554		-		1,594		-
Variable lease cost	Selling, general and administrative		117		170		292		303
		$	6,013	$	4,994	$	17,633	$	14,863

The net change in ROU asset and finance lease liability is split between principal payments, interest expense and amortization expense. Principal payments are classified in the financing section, interest expense and amortization expense are broken out separately in the operating section of the Condensed Consolidated Statements of Cash Flows.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating Cash Flows - operating leases	$	4,456	$	3,977	$	13,465	$	12,155
Operating Cash Flows - finance leases	$	554	$	-	$	1,594	$	-
Financing Cash Flows - finance leases	$	657	$	-	$	593	$	-

Non-cash activity:
Lease liabilities arising from obtaining right-of-use assets
Operating leases	$	26,014	$	8,349	$	48,409	$	10,491
Finance leases	$	-	$	-	$	12,570	$	-

During the nine months ended September 30, 2024, the Company entered into one new operating, one new finance lease and nine lease modifications. The Company obtained the operating and finance ROU asset in exchange for an operating and finance lease liability of $15.7 million and $12.6 million, respectively. In addition, the nine lease modifications resulted in a noncash re-measurement of the related ROU asset and operating lease liability of $32.7 million.

Weighted-average remaining lease term and discount rate for our leases are as follows:

	As of September 30,
	2024			2023
Weighted-average remaining lease term
Operating leases	13.06 years			11.22 years
Finance leases	16.65 years				-

Weighted-average discount rate
Operating leases		6.69	%		6.94	%
Finance leases		7.69	%		-

Maturities of lease liabilities by fiscal year for our leases as of September 30, 2024, are as follows:

	Operating Leases			Finance Leases
Year ending December 31,
2024 (excluding the nine months ending September 30, 2024)	$	4,523		$	659
2025		19,400			506
2026		17,581			2,817
2027		17,096			2,918
2028		18,012			3,023
2029		15,753			3,132
Thereafter		121,608			43,418
Total lease payments		213,973			56,473
Less: imputed interest		(72,390	)		(27,114	)
Present value of lease liabilities	$	141,583		$	29,359

STUDENT RECEIVABLES (Tables)

9 Months Ended

Sep. 30, 2024

STUDENT RECEIVABLES [Abstract]

Student Receivables

The following table presents the amortized cost basis of student receivables as of September 30, 2024 and 2023, respectively, by year of origination.

	As of September 30,
	2024			2023
	Student			Student
Year	Receivables (1)		Year	Receivables (1)
2024	$	94,020	2023	$	71,867
2023		17,291	2022		14,678
2022		8,060	2021		7,797
2021		4,606	2020		3,481
2020		1,942	2019		2,318
Prior		1,738	Prior		1,258
Total	$	127,657	Total	$	101,399

(1)

Student receivables are presented on a gross basis from the individual students. The total receivable amount above excludes federal subsidies reflected on the students’ accounts but not yet received from the government. Also, it excludes all receivables from corporate partnerships, which are otherwise included under accounts receivable in our Condensed Consolidated Balance Sheets.

Student Receivables Write-off

The following table presents write-off amounts during the three and nine months ended September 30, 2024 and 2023, respectively, based on the student’s school departure year.

	September 30, 2024					September 30, 2023
	Three Months Ended		Nine Months Ended			Three Months Ended		Nine Months Ended
Year	Write-Offs		Write-Offs		Year	Write-Offs		Write-Offs
2024	$	4,993	$	4,043	2023	$	2,870	$	2,920
2023		5,270		24,244	2022		4,626		18,820
2022		660		2,525	2021		587		2,615
2021		345		1,051	2020		162		547
2020		100		397	2019		73		461
Prior		120		345	Prior		85		244
Total	$	11,488	$	32,605	Total	$	8,403	$	25,607

Allowance for Credit Losses

We define student receivables as a portfolio segment under CECL. Changes in our current and non-current allowance for credit losses related to our student receivable portfolio are calculated in accordance with the guidance effective January 1, 2023 under CECL for the three and nine months ended September 30, 2024 and 2023, respectively.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Balance, beginning of period	$	58,231		$	47,607		$	53,811		$	35,370
Cumulative effect of ASC 326		-			-			-			10,841
Adjusted beginning of period balance		58,231			47,607			53,811			46,211
Provision for credit losses		15,286			12,747			40,823			31,347
Write-off’s		(11,488	)		(8,403	)		(32,605	)		(25,607	)
Balance, at end of period	$	62,029		$	51,951		$	62,029		$	51,951

STUDENT RECEIVABLES, Write-off (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Write-Off's [Abstract]
2024/2023	$ 4,993	$ 2,870	$ 4,043	$ 2,920
2023/2022	5,270	4,626	24,244	18,820
2022/2021	660	587	2,525	2,615
2021/2020	345	162	1,051	547
2020/2019	100	73	397	461
Prior	120	85	345	244
Total	$ 11,488	$ 8,403	$ 32,605	$ 25,607

INSIDER TRADING ARRANGEMENTS	3 Months Ended
INSIDER TRADING ARRANGEMENTS	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS:
Accounts receivable, allowance for credit losses	$ 40,094	$ 34,441
PROPERTY, EQUIPMENT AND FACILITIES - accumulated depreciation and amortization	141,357	140,161
OTHER ASSETS:
Noncurrent receivables, allowance for credit losses	$ 21,935	$ 19,370
STOCKHOLDERS' EQUITY:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	31,479,167	31,359,110
Common stock, shares outstanding (in shares)	31,479,167	31,359,110

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
REVENUE	$ 114,410	$ 99,618	$ 320,691	$ 275,548
COSTS AND EXPENSES:
Educational services and facilities	48,055	43,129	136,639	121,251
Selling, general and administrative	63,339	54,485	181,697	156,603
(Gain) loss on sale of assets	(12)	8	901	(30,923)
Gain on insurance proceeds	(2,794)	0	(2,794)	0
Impairment of goodwill and long-lived assets	0	0	0	4,220
Total costs & expenses	108,588	97,622	316,443	251,151
OPERATING INCOME	5,822	1,996	4,248	24,397
OTHER:
Interest income	464	878	1,800	1,891
Interest expense	(659)	(21)	(1,893)	(74)
INCOME BEFORE INCOME TAXES	5,627	2,853	4,155	26,214
PROVISION FOR INCOME TAXES	1,674	789	1,098	7,009
NET INCOME	$ 3,953	$ 2,064	$ 3,057	$ 19,205
Basic
Net income per common share (in dollars per share)	$ 0.13	$ 0.07	$ 0.1	$ 0.64
Diluted
Net income per common share (in dollars per share)	$ 0.13	$ 0.07	$ 0.1	$ 0.63
Weighted average number of common shares outstanding:
Basic (in shares)	30,681,594	30,163,745	30,547,187	30,114,926
Diluted (in shares)	31,041,592	30,698,475	30,806,247	30,455,155

STUDENT RECEIVABLES, Student Receivables (Details) - USD ($)
$ in Thousands

Sep. 30, 2024

Dec. 31, 2023

Sep. 30, 2023

STUDENT RECEIVABLES [Abstract]

Accounts receivables

$ 19,822

$ 17,504

Student Receivables [Abstract]

2024/2023

^[1]

94,020

$ 71,867

2023/2022

^[1]

17,291

14,678

2022/2021

^[1]

8,060

7,797

2021/2020

^[1]

4,606

3,481

2020/2019

^[1]

1,942

2,318

Prior

^[1]

1,738

1,258

Total

^[1]

$ 127,657

$ 101,399

[1]

Student receivables are presented on a gross basis from the individual students. The total receivable amount above excludes federal subsidies reflected on thestudents’ accounts but not yet received from the government. Also, it excludes all receivables from corporate partnerships, which are otherwise included under accounts receivable in our Condensed Consolidated Balance Sheets.

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION, Business Activities (Details)	9 Months Ended
	Sep. 30, 2024 Campus State
Business Activities [Abstract]
Number of campuses	22
Number of states in which schools operate across the United States \| State	13
Number of campuses treated as destination schools	5

LEASES (Details) $ in Thousands				3 Months Ended		9 Months Ended
LEASES (Details) $ in Thousands	Oct. 31, 2023 Squarefeet Option	Oct. 18, 2023 Squarefeet Option	Sep. 28, 2023 USD ($) ft²	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Lease	Sep. 30, 2023 USD ($)
Operating Leases [Abstract]
Gain on insurance proceeds				$ 2,794	$ 0	$ 2,794	$ 0
Approximate area of leased school space \| Squarefeet	100,000	120,000
Operating lease term	21 years 6 months	15 years
Number of renewal options \| Option	3	2
Renewal lease term	5 years	5 years
Components of Lease Cost [Abstract]
Amortization of leased assets						1,204	0
Total lease cost				6,013	4,994	17,633	14,863
Cash paid for amounts included in the measurement of operating lease liabilities [Abstract]
Operating Cash Flows - operating leases				4,456	3,977	13,465	12,155
Operating Cash Flows - finance leases				554		1,594	0
Financing Cash Flows - finance leases				657	0	593	0
Lease liabilities arising from obtaining right-of-use assets [Abstract]
Operating leases				26,014	8,349	48,409	10,491
Finance leases				$ 0	$ 0	$ 12,570	$ 0
Number of new operating leases \| Lease						1
Number of new finance leases \| Lease						1
Number of lease modifications \| Lease						9
Operating ROU asset in exchange for an operating lease liability						$ 15,700
Noncash re-measurement of ROU asset and operating lease liability						$ 32,700
Weighted Average Remaining Lease Term [Abstract]
Operating leases				13 years 21 days	11 years 2 months 19 days	13 years 21 days	11 years 2 months 19 days
Finance leases				16 years 7 months 24 days		16 years 7 months 24 days
Weighted Average Discount Rate [Abstract]
Operating leases				6.69%	6.94%	6.69%	6.94%
Finance leases				7.69%	0.00%	7.69%	0.00%
Operating Leases [Abstract]
2024 (excluding the nine months ending September 30, 2024)				$ 4,523		$ 4,523
2025				19,400		19,400
2026				17,581		17,581
2027				17,096		17,096
2028				18,012		18,012
2029				15,753		15,753
Thereafter				121,608		121,608
Total lease payments				213,973		213,973
Less: imputed interest				(72,390)		(72,390)
Present value of lease liabilities				141,583		141,583
Finance Leases [Abstract]
2024 (excluding the nine months ending September 30, 2024)				659		659
2025				506		506
2026				2,817		2,817
2027				2,918		2,918
2028				3,023		3,023
2029				3,132		3,132
Thereafter				43,418		43,418
Total lease payments				56,473		56,473
Less: imputed interest				(27,114)		(27,114)
Present value of lease liabilities				29,359		29,359
Selling, General and Administrative [Member]
Components of Lease Cost [Abstract]
Operating lease cost				4,924	$ 4,824	14,543	$ 14,560
Variable lease cost				117	170	292	303
Depreciation and Amortization [Member]
Components of Lease Cost [Abstract]
Amortization of leased assets				418	0	1,204	0
Interest Expense [Member]
Components of Lease Cost [Abstract]
Interest on lease liabilities				$ 554	$ 0	$ 1,594	$ 0
Purchase Transaction [Member]
Operating Leases [Abstract]
Area of property purchased \| ft²			90,000
Property purchase price			$ 10,200
Minimum [Member]
Operating Leases [Abstract]
Remaining lease term				1 year		1 year
Maximum [Member]
Operating Leases [Abstract]
Remaining lease term				21 years		21 years

SUBSEQUENT EVENT (Details)	Nov. 05, 2024 Student
Las Vegas Campus Sale Agreement [Member] \| Subsequent Event [Member]
Subsequent Event [Abstract]
Number of students enrolled in programs	300

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Document Transition Report	false
Entity File Number	000-51371
Entity Registrant Name	LINCOLN EDUCATIONAL SERVICES CORP
Entity Central Index Key	0001286613
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	57-1150621
Entity Address, Address Line One	14 Sylvan Way, Suite A
Entity Address, City or Town	Parsippany
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	736-9340
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	LINC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,479,167

STUDENT RECEIVABLES

9 Months Ended

Sep. 30, 2024

STUDENT RECEIVABLES [Abstract]

STUDENT RECEIVABLES

12.	STUDENT RECEIVABLES

Student receivables represent funds owed to us in exchange for the educational services provided to a student. Student receivables are reflected net of an allowance for credit losses at the end of the reporting period. Student receivables, net, are reflected on our Condensed Consolidated Balance Sheets as components of both current and non-current assets.

Our students pay for their costs through a variety of funding sources, including federal loan and grant programs, institutional payment plans, Veterans Administration and other military funding and grants, private and institutional scholarships and cash payments. Cash receipts from government-related sources are typically received during the current academic term. Students who have not applied for any type of financial aid generally set up a payment plan with the institution and make payments on a monthly basis as per the terms of the payment plan. A student receivable balance is written off when deemed uncollectable, which is typically once a student is out of school and there has been no payment activity on the account for 150 days. If, however, the student does remit a payment during this time period, the 150-day policy for write-off starts again until either (1) the student continues making payments, or (2) the student does not make any additional payments after which the student receivable balance is written off after 150 days.

Effective January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” commonly known as “CECL” (“CECL”). On the January 1, 2023 date of adoption, based on forecasts of macroeconomic conditions and exposures at that time, the aggregate impact to the Company resulted in an opening balance sheet adjustment increasing the allowance for credit losses related to the Company’s accounts receivables of approximately $10.8 million, a decrease in retained earnings of $7.9 million, after-tax and a deferred tax asset increase of $2.9 million.

Students enrolled in the Company’s programs are provided with a variety of funding resources, including financial aid, grants, scholarships and private loans. After exhausting all fund options, if the student is still in need of additional financing, the Company may offer an institutional loan as a lender of last resort. Institutional loan terms are pre-determined at enrollment and are not typically restructured.

Our standard student receivable allowance is based on an estimate of lifetime expected credit losses on student receivables that considers vintages of receivables to determine a loss rate. In considering lifetime credit losses, if the expected life goes beyond the Company’s reasonable ability to forecast, the Company then reverts back to historical loss experience as an indicator of collections. In determining the expected credit losses for the period, student receivables were disaggregated and pooled into two different categories to refine the calculation. Other information considered included external factors outside the Company’s control. Given that collection history during the COVID-19 pandemic was not considered to be a reliable indicator of a student’s repayment history, the Company adjusted the historical loss calculation by normalizing the financial data relating to that time period. Our estimation methodology further considered a number of quantitative and qualitative factors that, based on our collection experience, we believe have an impact on our repayment risk and ability to collect student receivables. Changes in the trends in any of these factors may impact our estimate of the allowance for credit losses. These factors include, but are not limited to: internal repayment history, student status, changes in the current economic condition, legislative or regulatory environments, internal cash collection forecasts and the ability to complete the federal financial aid process with the student. These factors are monitored and assessed on a regular basis. Overall, our allowance estimation process for student receivables is validated by trending analysis and comparing estimated and actual performance.

Student Receivables

The Company has student receivables that are due greater than 12 months from the date of our Condensed Consolidated Balance Sheets. As of September 30, 2024 and December 31, 2023, the amount of non-current student receivables under payment plans that is longer than 12 months in duration, net of allowance for credit losses, was $19.8 million and $17.5 million, respectively.

The following table presents the amortized cost basis of student receivables as of September 30, 2024 and 2023, respectively, by year of origination.

	As of September 30,
	2024			2023
	Student			Student
Year	Receivables (1)		Year	Receivables (1)
2024	$	94,020	2023	$	71,867
2023		17,291	2022		14,678
2022		8,060	2021		7,797
2021		4,606	2020		3,481
2020		1,942	2019		2,318
Prior		1,738	Prior		1,258
Total	$	127,657	Total	$	101,399

(1)

The following table presents write-off amounts during the three and nine months ended September 30, 2024 and 2023, respectively, based on the student’s school departure year.

	September 30, 2024					September 30, 2023
	Three Months Ended		Nine Months Ended			Three Months Ended		Nine Months Ended
Year	Write-Offs		Write-Offs		Year	Write-Offs		Write-Offs
2024	$	4,993	$	4,043	2023	$	2,870	$	2,920
2023		5,270		24,244	2022		4,626		18,820
2022		660		2,525	2021		587		2,615
2021		345		1,051	2020		162		547
2020		100		397	2019		73		461
Prior		120		345	Prior		85		244
Total	$	11,488	$	32,605	Total	$	8,403	$	25,607

Allowance for Credit Losses

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Balance, beginning of period	$	58,231		$	47,607		$	53,811		$	35,370
Cumulative effect of ASC 326		-			-			-			10,841
Adjusted beginning of period balance		58,231			47,607			53,811			46,211
Provision for credit losses		15,286			12,747			40,823			31,347
Write-off’s		(11,488	)		(8,403	)		(32,605	)		(25,607	)
Balance, at end of period	$	62,029		$	51,951		$	62,029		$	51,951

Fair Value Measurements

The carrying amount reported in our Condensed Consolidated Balance Sheets for the current portion of student receivables approximates fair value because of the nature of these financial instruments, as they generally have short maturity periods. It is not practicable to estimate the fair value of the non-current portion of student receivables, since observable market data is not readily available and no reasonable estimation methodology exists.

INCOME TAXES

9 Months Ended

Sep. 30, 2024

INCOME TAXES [Abstract]

INCOME TAXES

8.	INCOME TAXES

The provision for income taxes was $1.7 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively. The increase in tax provision was primarily driven by an increase in pre-tax income.

The provision for income taxes was $1.1 million and $7.0 million for the nine months ended September 30, 2024 and 2023, respectively. The decrease in provision was primarily driven by a gain in the prior year due to the sale of the Nashville, Tennessee property during the second quarter of 2023, which drove an increase in the Company’s pre-tax income.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2024
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION [Abstract]
Business Activities	Business Activities— Lincoln Educational Services Corporation and its subsidiaries (collectively, the “Company”, “we”, “our”, and “us”, as applicable) provide diversified career-oriented post-secondary education to recent high school graduates and working adults. The Company, which currently operates 22 campuses in 13 states, offers programs in skilled trades (which include HVAC, welding, computerized numerical control and electrical and electronic systems technology, among other programs), automotive technology, healthcare services (which include nursing, dental assistant, and medical administrative assistant, among other programs), hospitality services (which include culinary, therapeutic massage, cosmetology, and aesthetics), and information technology. The schools operate under Lincoln Technical Institute, Lincoln College of Technology, Lincoln Culinary Institute, Euphoria Institute of Beauty Arts & Sciences, and associated brand names. Most of the campuses serve major metropolitan markets and each typically offers courses in multiple areas of study. Five of the campuses are destination schools, which attract students from across the United States and, in some cases, from abroad. The Company’s other campuses primarily attract students from their local communities and surrounding areas. All of the campuses are nationally accredited and are eligible to participate in federal financial aid programs by the U.S. Department of Education (“DOE”) and applicable state education agencies and accrediting commissions, which allow students to apply for and access federal student loans as well as other forms of financial aid.
Basis of Presentation	Basis of Presentation – The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements. Certain information and footnote disclosures normally included in annual financial statements have been omitted or condensed pursuant to such regulations. These financial statements, which should be read in conjunction with the December 31, 2023 audited Consolidated Financial Statements and notes thereto and related disclosures of the Company included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“Form 10-K”), reflect all adjustments, consisting of normal recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows for such periods. The results of operations for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2024. Since January 1, 2023, the Company’s business has been organized into two reportable business segments: (a) Campus Operations; and (b) Transitional. The Campus Operations segment includes campuses that are continuing in operation and contribute to the Company’s core operations and performance. The Transitional segment refers to campuses that have been marked for closure and are being taught-out. As of September 30, 2024, no campuses were classified in the Transitional segment. During the prior year, the Company’s Somerville, Massachusetts campus was classified in the Transitional segment. The campus was fully taught out as of December 31, 2023. We evaluate performance based on operating results. Adjustments to reconcile segment results with consolidated results are included in the caption “Corporate,” which primarily includes unallocated corporate activity. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. On an ongoing basis, the Company evaluates the estimates and assumptions, including those used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate lease cost, revenue recognition, bad debts, impairments, useful lives of fixed assets, income taxes, benefit plans and certain accruals. Actual results could differ from those estimates.
New Accounting Pronouncements	New Accounting Pronouncements – In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which provides updates to qualitative and quantitative reportable segment disclosure requirements, including enhanced disclosures about significant segment expenses and increased interim disclosure requirements, among others. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied retrospectively. The Company will adopt this ASU in its Form 10-K for the year-ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASC 740”). The amendments in this ASU require that public business entities on an annual basis 1) disclose specific categories in the rate reconciliation, and 2) provide additional information for reconciling items that meet a quantitative threshold. The amendments require disclosure about the amount of income taxes paid disaggregated (1) by federal, state and foreign taxes, and (2) by individual jurisdictions in which income taxes paid is equal or greater than five percent of total income taxes paid. The amendment also requires entities to disclose income or loss from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. For all public business entities, ASC 740 is effective for annual periods beginning after December 15, 2024; early adoption is permitted. We do not expect ASC 740 will have a material impact on our Condensed Consolidated Financial Statements.
Income Taxes	Income Taxes— The Company accounts for income taxes in accordance with ASC 740. This statement requires an asset and a liability approach for measuring deferred taxes based on temporary differences between the financial statement and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for years in which taxes are expected to be paid or recovered. In accordance with ASC 740, the Company assesses our deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable. A valuation allowance is required to be established or maintained when, based on currently available information, it is more likely than not that all or a portion of a deferred tax asset will not be realized. In accordance with ASC 740, our assessment considers whether there has been sufficient income in recent years and whether sufficient income is expected in future years in order to utilize the deferred tax asset. In evaluating the realizability of deferred income tax assets, the Company considers, among other things, historical levels of income, expected future income, the expected timing of the reversals of existing temporary reporting differences, and the expected impact of tax planning strategies that may be implemented to prevent the potential loss of future income tax benefits. Significant judgment is required in determining the future tax consequences of events that have been recognized in our Condensed Consolidated Financial Statements and/or tax returns. Differences between anticipated and actual outcomes of these future tax consequences could have a material impact on the Company’s consolidated financial position, results of operations or liquidity. Changes in, among other things, income tax legislation, statutory income tax rates or future income levels could materially impact the Company’s valuation of income tax assets and liabilities and could cause our income tax provision to vary significantly among financial reporting periods. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the nine months ended September 30, 2024 and 2023, we did not record any interest and penalties expense associated with uncertain tax positions, as we did not have any uncertain tax positions.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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