x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
New
Jersey
|
57-1150621
|
|
(State
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification No.)
|
|
200
Executive Drive, Suite 340
|
07052
|
|
West
Orange, NJ
|
(Zip
Code)
|
|
(Address
of principal executive offices)
|
Large
accelerated filer o
|
Accelerated
filerý
|
|
Non-accelerated
filer o
|
(Do
not check if a smaller reporting company)
|
Smaller
reporting company o
|
1
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1
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3
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4
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5
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7
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13
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21
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21
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21
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21
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22
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22
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23
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June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 8,891 | $ | 3,502 | ||||
Accounts
receivable, less allowance of $11,816 and $11,244 at June 30, 2008 and
December 31, 2007, respectively
|
21,871 | 23,286 | ||||||
Inventories
|
2,796 | 2,540 | ||||||
Deferred
income taxes, net
|
4,601 | 4,575 | ||||||
Due
from federal programs
|
152 | 6,087 | ||||||
Prepaid
income taxes
|
1,770 | - | ||||||
Prepaid
expenses and other current assets
|
2,877 | 3,771 | ||||||
Total
current assets
|
42,958 | 43,761 | ||||||
PROPERTY,
EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and
amortization of $82,570 and $82,931 at June 30, 2008 and December 31,
2007, respectively
|
108,429 | 106,564 | ||||||
OTHER
ASSETS:
|
||||||||
Noncurrent
accounts receivable, less allowance of $279 and $159 at June 30, 2008 and
December 31, 2007, respectively
|
2,826 | 1,608 | ||||||
Deferred
finance charges
|
730 | 827 | ||||||
Pension
plan assets, net
|
1,730 | 1,696 | ||||||
Deferred
income taxes, net
|
6,695 | 5,500 | ||||||
Goodwill
|
82,714 | 82,714 | ||||||
Other
assets, net
|
3,166 | 3,513 | ||||||
Total
other assets
|
97,861 | 95,858 | ||||||
TOTAL
ASSETS
|
$ | 249,248 | $ | 246,183 |
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Current
portion of long-term debt and lease obligations
|
$ | 168 | $ | 204 | ||||
Unearned
tuition
|
28,976 | 34,810 | ||||||
Accounts
payable
|
11,643 | 13,721 | ||||||
Accrued
expenses
|
10,700 | 10,079 | ||||||
Income
taxes payable
|
- | 1,460 | ||||||
Other
short-term liabilities
|
741 | 1,439 | ||||||
Total
current liabilities
|
52,228 | 61,713 | ||||||
NONCURRENT
LIABILITIES:
|
||||||||
Long-term
debt and lease obligations, net of current portion
|
31,105 | 15,174 | ||||||
Other
long-term liabilities
|
6,855 | 6,829 | ||||||
Total
liabilities
|
90,188 | 83,716 | ||||||
COMMITMENTS
AND CONTINGENCIES (Note 10)
|
||||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred
stock, no par value - 10,000,000 shares authorized, no shares issued and
outstanding at June 30, 2008 and December 31, 2007
|
- | - | ||||||
Common
stock, no par value - authorized 100,000,000 shares at June 30, 2008 and
December 31, 2007, issued and outstanding 25,427,733 shares at June 30,
2008 and 25,888,348 shares at December 31, 2007
|
120,446 | 120,379 | ||||||
Additional
paid-in capital
|
14,453 | 12,378 | ||||||
Deferred
compensation
|
(4,127 | ) | (3,228 | ) | ||||
Treasury
stock at cost - 600,000 shares at June 30, 2008 and no shares at December
31, 2007
|
(6,375 | ) | - | |||||
Retained
earnings
|
36,749 | 35,024 | ||||||
Accumulated
other comprehensive loss
|
(2,086 | ) | (2,086 | ) | ||||
Total
stockholders' equity
|
159,060 | 162,467 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 249,248 | $ | 246,183 |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
REVENUES
|
$ | 85,056 | $ | 74,744 | $ | 169,103 | $ | 150,914 | ||||||||
COSTS
AND EXPENSES:
|
||||||||||||||||
Educational
services and facilities
|
35,927 | 33,337 | 72,555 | 67,487 | ||||||||||||
Selling,
general and administrative
|
46,440 | 39,456 | 92,573 | 82,641 | ||||||||||||
Loss
(gain) on disposal of assets
|
3 | (15 | ) | 40 | (15 | ) | ||||||||||
Total
costs and expenses
|
82,370 | 72,778 | 165,168 | 150,113 | ||||||||||||
OPERATING
INCOME
|
2,686 | 1,966 | 3,935 | 801 | ||||||||||||
OTHER:
|
||||||||||||||||
Interest
income
|
18 | 35 | 63 | 83 | ||||||||||||
Interest
expense
|
(582 | ) | (670 | ) | (1,086 | ) | (1,154 | ) | ||||||||
INCOME
(LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
2,122 | 1,331 | 2,912 | (270 | ) | |||||||||||
PROVISION
(BENEFIT) FOR INCOME TAXES
|
881 | 563 | 1,187 | (108 | ) | |||||||||||
INCOME
(LOSS) FROM CONTINUING OPERATIONS
|
1,241 | 768 | 1,725 | (162 | ) | |||||||||||
LOSS
FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES
|
- | (2,468 | ) | - | (3,156 | ) | ||||||||||
NET
INCOME (LOSS)
|
$ | 1,241 | $ | (1,700 | ) | $ | 1,725 | $ | (3,318 | ) | ||||||
Basic
|
||||||||||||||||
Earnings
(loss) per share from continuing operations
|
$ | 0.05 | $ | 0.03 | $ | 0.07 | $ | (0.01 | ) | |||||||
Loss
per share from discontinued operations
|
- | (0.10 | ) | - | (0.12 | ) | ||||||||||
Net
income (loss) per share
|
$ | 0.05 | $ | (0.07 | ) | $ | 0.07 | $ | (0.13 | ) | ||||||
Diluted
|
||||||||||||||||
Earnings
(loss) per share from continuing operations
|
$ | 0.05 | $ | 0.03 | $ | 0.07 | $ | (0.01 | ) | |||||||
Loss
per share from discontinued operations
|
- | (0.10 | ) | - | (0.12 | ) | ||||||||||
Net
income (loss) per share
|
$ | 0.05 | $ | (0.07 | ) | $ | 0.07 | $ | (0.13 | ) | ||||||
Weighted
average number of common shares outstanding:
|
||||||||||||||||
Basic
|
25,341 | 25,483 | 25,500 | 25,471 | ||||||||||||
Diluted
|
26,059 | 25,483 | 26,154 | 25,471 |
Additional
|
Accumulated
Other
|
|||||||||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Deferred
|
Treasury
|
Retained
|
Comprehensive
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Compensation
|
Stock
|
Earnings
|
Loss
|
Total
|
|||||||||||||||||||||||||
BALANCE
- December 31, 2007
|
25,888,348 | $ | 120,379 | $ | 12,378 | $ | (3,228 | ) | $ | - | $ | 35,024 | $ | (2,086 | ) | $ | 162,467 | |||||||||||||||
Net
income
|
- | - | - | - | - | 1,725 | - | 1,725 | ||||||||||||||||||||||||
Stock-based
compensation expense
|
||||||||||||||||||||||||||||||||
Restricted
stock
|
119,485 | - | 1,427 | (899 | ) | - | - | - | 528 | |||||||||||||||||||||||
Stock
options
|
- | - | 643 | - | - | - | - | 643 | ||||||||||||||||||||||||
Treasury
stock purchases
|
(600,000 | ) | - | - | - | (6,375 | ) | - | - | (6,375 | ) | |||||||||||||||||||||
Tax
benefit of options exercised
|
- | - | 5 | - | - | - | - | 5 | ||||||||||||||||||||||||
Exercise
of stock options
|
19,900 | 67 | - | - | - | - | - | 67 | ||||||||||||||||||||||||
BALANCE
- June 30, 2008
|
25,427,733 | $ | 120,446 | $ | 14,453 | $ | (4,127 | ) | $ | (6,375 | ) | $ | 36,749 | $ | (2,086 | ) | $ | 159,060 |
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income (loss)
|
$ | 1,725 | $ | (3,318 | ) | |||
Adjustments
to reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
and amortization
|
8,936 | 7,768 | ||||||
Amortization
of deferred finance charges
|
97 | 95 | ||||||
Deferred
income taxes
|
(1,221 | ) | (999 | ) | ||||
Loss
(gain) on disposal of assets
|
40 | (15 | ) | |||||
Impairment
of goodwill and long-lived assets
|
- | 3,005 | ||||||
Provision
for doubtful accounts
|
9,569 | 7,980 | ||||||
Stock-based
compensation expense
|
1,171 | 888 | ||||||
Tax
benefit associated with exercise of stock options
|
(5 | ) | - | |||||
Deferred
rent
|
271 | 336 | ||||||
(Increase)
decrease in assets:
|
||||||||
Accounts
receivable
|
(9,372 | ) | (7,681 | ) | ||||
Inventories
|
(256 | ) | 386 | |||||
Prepaid
expenses and other current assets
|
203 | (662 | ) | |||||
Due
from federal programs
|
5,935 | - | ||||||
Other
assets
|
255 | (267 | ) | |||||
Increase
(decrease) in liabilities:
|
||||||||
Accounts
payable
|
402 | 1,714 | ||||||
Other
liabilities
|
(903 | ) | (278 | ) | ||||
Income
taxes
|
(3,225 | ) | (10,725 | ) | ||||
Accrued
expenses
|
569 | (688 | ) | |||||
Unearned
tuition
|
(5,834 | ) | (7,834 | ) | ||||
Total
adjustments
|
6,632 | (6,977 | ) | |||||
Net
cash provided by (used in) operating activities
|
8,357 | (10,295 | ) | |||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Restricted
cash
|
- | (538 | ) | |||||
Capital
expenditures
|
(12,560 | ) | (11,543 | ) | ||||
Net
cash used in investing activities
|
(12,560 | ) | (12,081 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from borrowings
|
23,000 | 21,500 | ||||||
Payments
on borrowings
|
(7,000 | ) | - | |||||
Proceeds
from exercise of stock options
|
67 | 111 | ||||||
Tax
benefit associated with exercise of stock options
|
5 | 45 | ||||||
Principal
payments of capital lease obligations
|
(105 | ) | (44 | ) | ||||
Purchase
of treasury stock
|
(6,375 | ) | - | |||||
Net
cash provided by financing activities
|
9,592 | 21,612 | ||||||
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
5,389 | (764 | ) | |||||
CASH
AND CASH EQUIVALENTS—Beginning of period
|
3,502 | 6,461 | ||||||
CASH
AND CASH EQUIVALENTS—End of period
|
$ | 8,891 | $ | 5,697 |
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 941 | $ | 1,000 | ||||
Income
taxes
|
$ | 6,023 | $ | 9,287 | ||||
SUPPLEMENTAL
SCHEDULE OF NONCASH INVESTING ACTIVITIES:
|
||||||||
Fixed
assets acquired in noncash transactions
|
$ | 1,440 | $ | 475 |
Three
Months Ended
|
Six
Months Ended
|
|||||||
June
30, 2007
|
June
30, 2007
|
|||||||
Revenues
|
$ | 1,532 | $ | 3,504 | ||||
Operating
expenses
|
(5,818 | ) | (8,984 | ) | ||||
(4,286 | ) | (5,480 | ) | |||||
Benefit
for income taxes
|
(1,818 | ) | (2,324 | ) | ||||
Loss
from discontinued operations
|
$ | (2,468 | ) | $ | (3,156 | ) |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Basic
shares outstanding
|
25,340,562 | 25,483,014 | 25,500,263 | 25,471,093 | ||||||||||||
Dilutive
effect of stock options
|
718,502 | - | 653,908 | - | ||||||||||||
Diluted
shares outstanding
|
26,059,064 | 25,483,014 | 26,154,171 | 25,471,093 |
June
30, 2008
|
December
31, 2007
|
|||||||||||||||||||||||||||
Weighted
Average Amortization Period (years)
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Carrying Amount
|
||||||||||||||||||||||
Student
contracts
|
1
|
$ | 2,215 | $ | 2,215 | $ | - | $ | 2,215 | $ | 2,212 | $ | 3 | |||||||||||||||
Trade
name
|
Indefinite
|
1,270 | - | 1,270 | 1,270 | - | 1,270 | |||||||||||||||||||||
Accreditation
|
Indefinite
|
307 | - | 307 | 307 | - | 307 | |||||||||||||||||||||
Curriculum
|
10
|
700 | 243 | 457 | 700 | 208 | 492 | |||||||||||||||||||||
Non-compete
|
5
|
201 | 85 | 116 | 201 | 65 | 136 | |||||||||||||||||||||
Total
|
$ | 4,693 | $ | 2,543 | $ | 2,150 | $ | 4,693 | $ | 2,485 | $ | 2,208 |
June
30, 2008
|
||
Expected
volatility
|
57.23%
|
|
Expected
dividend yield
|
0%
|
|
Expected
life (term)
|
6
Years
|
|
Risk-free
interest rate
|
2.76%
- 3.29%
|
|
Expected
forfeiture rate
|
20.00%
|
Shares
|
Weighted
Average Exercise Price Per Share
|
Weighted
Average Remaining Contractual Term
|
Aggregate
Intrinsic Value
|
||||||||||
Outstanding
as of December 31, 2007
|
1,512,163 | $ | 9.65 | ||||||||||
Granted
|
145,500 | 11.97 | |||||||||||
Cancelled
|
(65,500 | ) | 15.76 | ||||||||||
Exercised
|
(19,900 | ) | 3.37 | $ | 189 | ||||||||
Outstanding
as of June 30, 2008
|
1,572,263 | 9.69 |
5.65
years
|
6,066 | |||||||||
Exercisable
as of June 30, 2008
|
1,120,426 | 7.90 |
4.56
years
|
6,059 |
June
30, 2008
|
||||||||||||||||||||||
Stock
Options Outstanding
|
Stock
Options Exercisable
|
|||||||||||||||||||||
Range
of Exercise Prices
|
Shares
|
Contractual
Weighted Average Life (years)
|
Weighted
Average Price
|
Shares
|
Weighted
Exercise Price
|
|||||||||||||||||
$ | 1.55 | 50,898 | 0.98 | $ | 1.55 | 50,898 | $ | 1.55 | ||||||||||||||
3.10 | 632,657 | 3.54 | 3.10 | 632,657 | 3.10 | |||||||||||||||||
4.00-13.99 | 333,500 | 8.85 | 11.47 | 76,678 | 9.91 | |||||||||||||||||
14.00-19.99 | 437,708 | 6.69 | 15.27 | 273,993 | 14.81 | |||||||||||||||||
20.00-25.00 | 117,500 | 6.11 | 22.88 | 86,200 | 23.07 | |||||||||||||||||
1,572,263 | 5.65 | 9.69 | 1,120,426 | 7.90 |
Three
Months Ended
|
Six
Months Ended
|
|||||||
June
30, 2007
|
June
30, 2007
|
|||||||
Revenues
|
$ | 1,532 | $ | 3,504 | ||||
Operating
expenses
|
(5,818 | ) | (8,984 | ) | ||||
(4,286 | ) | (5,480 | ) | |||||
Benefit
for income taxes
|
(1,818 | ) | (2,324 | ) | ||||
Loss
from discontinued operations
|
$ | (2,468 | ) | $ | (3,156 | ) |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Costs
and expenses:
|
||||||||||||||||
Educational
services and facilities
|
42.2 | % | 44.6 | % | 42.9 | % | 44.7 | % | ||||||||
Selling,
general and administrative
|
54.6 | % | 52.8 | % | 54.8 | % | 54.8 | % | ||||||||
Total
costs and expenses
|
96.8 | % | 97.4 | % | 97.7 | % | 99.5 | % | ||||||||
Operating
income
|
3.2 | % | 2.6 | % | 2.3 | % | 0.5 | % | ||||||||
Interest
expense, net
|
(0.7 | %) | (0.8 | %) | (0.6 | %) | (0.7 | %) | ||||||||
Income
(loss) from continuing operations before income taxes
|
2.5 | % | 1.8 | % | 1.7 | % | (0.2 | %) | ||||||||
Provision
(benefit) for income taxes
|
1.0 | % | 0.8 | % | 0.7 | % | (0.1 | %) | ||||||||
Income
(loss) from continuing operations
|
1.5 | % | 1.0 | % | 1.0 | % | (0.1 | %) |
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Net
cash provided (used in) by operating activities
|
$ | 8,357 | $ | (10,295 | ) | |||
Net
cash used in investing activities
|
(12,560 | ) | (12,081 | ) | ||||
Net
cash provided by financing activities
|
9,592 | 21,612 |
At
June 30,
|
At
December 31,
|
|||||||
2008
|
2007
|
|||||||
Credit
agreement
|
$ | 21,000 | $ | 5,000 | ||||
Finance
obligation
|
9,672 | 9,672 | ||||||
Automobile
loans
|
5 | 16 | ||||||
Capital
leases (with rates ranging from 2.9% to 8.5%)
|
596 | 690 | ||||||
Subtotal
|
31,273 | 15,378 | ||||||
Less
current maturities
|
(168 | ) | (204 | ) | ||||
Total
long-term debt
|
$ | 31,105 | $ | 15,174 |
Payments
Due by Period
|
||||||||||||||||||||
Total
|
Less
than 1 year
|
1-3
years
|
4-5
years
|
After
5 years
|
||||||||||||||||
Credit
agreement
|
$ | 21,000 | $ | - | $ | 21,000 | $ | - | $ | - | ||||||||||
Capital
leases (including interest)
|
706 | 207 | 325 | 174 | - | |||||||||||||||
Operating
leases
|
127,215 | 16,359 | 27,024 | 24,274 | 59,558 | |||||||||||||||
Rent
on finance obligation
|
11,857 | 1,381 | 2,763 | 2,763 | 4,950 | |||||||||||||||
Automobile
loans (including interest)
|
5 | 5 | - | - | - | |||||||||||||||
Total
contractual cash obligations
|
$ | 160,783 | $ | 17,952 | $ | 51,112 | $ | 27,211 | $ | 64,508 |
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased
|
Maximum
Number of Shares That May Yet Be Purchased
|
||||||||||||
April
1, 2008 -- April 30, 2008
|
--
|
-- | -- | 1,000,000 | ||||||||||||
May
1, 2008 -- May 31, 2008
|
|
600,000 | $ | 10.63 | 600,000 | 400,000 | ||||||||||
June
1, 2008 -- June 30, 2008
|
-- | -- | -- | 400,000 | ||||||||||||
Total
|
600,000 | $ | 10.63 | 600,000 | 400,000 |
Votes
For
|
Votes
Withheld
|
|||
David
F. Carney
|
24,681,291
|
12,549
|
||
Alexis
P. Michas
|
23,985,676
|
708,164
|
||
James
J. Burke, Jr.
|
23,985,676
|
708,164
|
||
Jerry
G. Rubenstein
|
24,690,190
|
3,650
|
||
Paul
E. Glaske
|
24,690,190
|
3,650
|
||
Peter
S. Burgess
|
24,689,690
|
4,150
|
||
J.
Barry Morrow
|
24,689,690
|
4,150
|
||
Celia
H. Currin
|
24,690,190
|
3,650
|
Votes
For
|
Votes
Against
|
Abstained
|
||
24,685,098
|
3,292
|
5,450
|
Exhibit
Number
|
Description
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of the Company
(1).
|
|
3.2
|
Amended
and Restated By-laws of the Company (2).
|
|
4.1
|
Stockholders’
Agreement, dated as of September 15, 1999, among Lincoln Technical
Institute, Inc., Back to School Acquisition, L.L.C. and Five Mile River
Capital Partners LLC (1).
|
|
4.2
|
Letter
agreement, dated August 9, 2000, by Back to School Acquisition, L.L.C.,
amending the Stockholders’ Agreement (1).
|
|
4.3
|
Letter
agreement, dated August 9, 2000, by Lincoln Technical Institute, Inc.,
amending the Stockholders’ Agreement (1).
|
|
4.4
|
Management
Stockholders Agreement, dated as of January 1, 2002, by and among Lincoln
Technical Institute, Inc., Back to School Acquisition, L.L.C. and the
Stockholders and other holders of options under the Management Stock
Option Plan listed therein (1).
|
|
4.5
|
Assumption
Agreement and First Amendment to Management Stockholders Agreement, dated
as of December 20, 2007, by and among Lincoln Educational Services
Corporation, Lincoln Technical Institute, Inc., Back to School
Acquisition, L.L.C. and the Management Investors parties therein
(6).
|
|
4.6
|
Registration
Rights Agreement between the Company and Back to School Acquisition,
L.L.C. (2).
|
|
4.7
|
Specimen
Stock Certificate evidencing shares of common stock
(1).
|
|
10.1
|
Credit
Agreement, dated as of February 15, 2005, among the Company, the
Guarantors from time to time parties thereto, the Lenders from time to
time parties thereto and Harris Trust and Savings Bank, as Administrative
Agent (1).
|
|
10.2
|
Amended
and Restated Employment Agreement, dated as of February 1, 2007, between
the Company and David F. Carney (3).
|
|
10.3
|
Separation
and Release Agreement, dated as of October 15, 2007, between the Company
and Lawrence E. Brown (4).
|
|
10.4
|
Amended
and Restated Employment Agreement, dated as of February 1, 2007, between
the Company and Scott M. Shaw (3).
|
|
10.5
|
Amended
and Restated Employment Agreement, dated as of February 1, 2007, between
the Company and Cesar Ribeiro (3).
|
|
10.6
|
Amended
and Restated Employment Agreement, dated as of February 1, 2007, between
the Company and Shaun E. McAlmont (3).
|
|
10.7
|
Lincoln
Educational Services Corporation 2005 Long Term Incentive Plan
(1).
|
|
10.8
|
Lincoln
Educational Services Corporation 2005 Non Employee Directors Restricted
Stock Plan (1).
|
|
10.9
|
Lincoln
Educational Services Corporation 2005 Deferred Compensation Plan
(1).
|
10.10
|
Lincoln
Technical Institute Management Stock Option Plan, effective January 1,
2002 (1).
|
|
10.11
|
Form
of Stock Option Agreement, dated January 1, 2002, between Lincoln
Technical Institute, Inc. and certain participants (1).
|
|
10.12
|
Form
of Stock Option Agreement under our 2005 Long Term Incentive Plan
(7).
|
|
10.13
|
Form
of Restricted Stock Agreement under our 2005 Long Term Incentive Plan
(7).
|
|
10.14
|
Management
Stock Subscription Agreement, dated January 1, 2002, among Lincoln
Technical Institute, Inc. and certain management investors
(1).
|
|
10.15
|
Stockholder’s
Agreement among Lincoln Educational Services Corporation, Back to School
Acquisition L.L.C., Steven W. Hart and Steven W. Hart 2003 Grantor
Retained Annuity Trust (2).
|
|
10.16
|
Stock
Purchase Agreement, dated as of March 30, 2006, among Lincoln Technical
Institute, Inc., and Richard I. Gouse, Andrew T. Gouse, individually and
as Trustee of the Carolyn Beth Gouse Irrevocable Trust, Seth A. Kurn and
Steven L. Meltzer (5).
|
|
Certification
of Chairman & Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
|
||
Certification
of Chairman & Chief Executive Officer and Chief Financial Officer
pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
(1)
|
Incorporated
by reference to the Company’s Registration Statement on Form S-1
(Registration No. 333-123664).
|
(2)
|
Incorporated
by reference to the Company’s Form 8-K dated June 28,
2005.
|
(3)
|
Incorporated
by reference to the Company’s Form 10-K for the year ended December 31,
2006.
|
(4)
|
Incorporated
by reference to the Company’s Form 8-K dated October 15,
2007.
|
(5)
|
Incorporated
by reference to the Company’s Form 10-Q for the quarterly period ended
March 31, 2006.
|
(6)
|
Incorporated
by reference to the Company’s Registration Statement on Form S-3
(Registration No. 333-148406).
|
(7)
|
Incorporated
by reference to the Company’s Form 10-K for the year ended December 31,
2007.
|
*
|
Filed
herewith.
|
LINCOLN
EDUCATIONAL SERVICES CORPORATION
|
Date:
August 6, 2008
|
By:
|
/s/ Cesar Ribeiro
|
|
Cesar
Ribeiro
|
|||
Chief
Financial Officer
|
|||
(Principal
Accounting and Financial
Officer)
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Lincoln Educational
Services Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
Date:
August 6, 2008
|
|
/s/ David F. Carney
|
|
David
F. Carney
|
|
Chairman
& Chief Executive Officer
|
1.
|
I
have reviewed this quarterly report on Form 10-Q of Lincoln Educational
Services Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
Date:
August 6, 2008
|
|
/s/ Cesar Ribeiro
|
|
Cesar
Ribeiro
|
|
Chief
Financial Officer
|
Date:
|
August
6, 2008
|
/s/ David F. Carney
|
|
David
F. Carney
|
|
Chairman
& Chief Executive Officer
|
|
/s/ Cesar Ribeiro
|
|
Cesar
Ribeiro
|
|
Chief
Financial Officer
|