UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C.
20549
___________________
Form
8-K
___________________
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF
1934
DATE
OF REPORT (DATE OF EARLIEST EVENT REPORTED): March 5, 2009
___________________
Lincoln Educational Services
Corporation
(Exact
Name of Registrant as Specified in Charter)
___________________
|
New
Jersey
(State
or other jurisdiction
of
incorporation)
|
000-51371
(Commission
File Number)
|
57-1150621
(I.R.S.
Employer
Identification
No.)
|
|
200
Executive Drive, Suite 340
West
Orange, New Jersey 07052
(Address
of principal executive offices)
|
07052
(Zip
Code)
|
Registrant’s telephone number,
including area code: (973) 736-9340
Not
Applicable
(Former name or former address, if
changed since last report)
___________________
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
Item
2.02 Results of Operations and
Financial Condition
On March
5, 2009, Lincoln Educational Services Corporation (the “Company”) issued a press
release announcing, among other things, its results of operations for the fourth
quarter and twelve months ended December 31, 2008. A copy of the
press release is furnished herewith as Exhibit 99.1 and attached
hereto. The information contained under this Item 2.02 in this
Current Report on Form 8-K, including the exhibit attached hereto, is being
furnished and shall not be deemed to be “filed” for the purposes of Section 18
of the Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section. Furthermore, the information contained
under this Item 2.02 in this Current Report on Form 8-K shall not be deemed to
be incorporated by reference into any registration statement or other document
filed pursuant to the Securities Act of 1933, as amended.
Item
9.01 Financial Statements and
Exhibits
(c) Exhibits
99.1 Press
release of Lincoln Educational Services Corporation dated March 5,
2009.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| LINCOLN EDUCATIONAL SERVICES CORPORATION | ||||
| Date: March 5, 2009 | By: | /s/ Cesar Ribiero | ||
| Name: | Cesar Ribeiro | |||
| Title: | Senior Vice President, Chief Financial | |||
|
Officer
and Treasurer
|
||||
Exhibit
99.1
Lincoln
Educational Services Corporation Reports
Strong
Fourth Quarter and 2008 Year End Results
West Orange, New Jersey, March
5, 2009 – Lincoln Educational Services Corporation (Nasdaq: LINC) (“Lincoln”)
today reported fourth quarter and 2008 year end results.
Highlights:
Quarterly
- -
|
|
·
|
Record
revenue of $107.3 million for the fourth quarter of 2008, representing an
increase of 18.9% from $90.3 million for the fourth quarter of
2007.
|
|
|
·
|
Diluted
EPS from continuing operations of $0.49 for the fourth quarter of 2008,
representing an increase of 32.4% from $0.37 for the fourth quarter of
2007. Diluted EPS for the fourth quarter of 2008 includes a
$0.02 charge related to the acquisition of the Baran school group in
January 2009.
|
|
|
·
|
Completed
the acquisition of Briarwood College on December 1,
2008.
|
|
|
·
|
Student
starts increased by 17.1% as compared to the fourth quarter of
2007.
|
Yearly -
|
|
·
|
Record
revenue of $376.9 million for the year ended December 31, 2008,
representing an increase of 15.0% from $327.8 million for the year ended
December 31, 2007.
|
|
|
·
|
Diluted
EPS from continuing operations of $0.78 for the year ended December 31,
2008, representing an increase of 47.2% from $0.53 for the year ended
December 31, 2007. Diluted EPS for the year ended December 31,
2008 includes a $0.02 charge related to the acquisition of the Baran
school group in January 2009.
|
|
|
·
|
Student
starts increased by 12.4% as compared to the year ended December 31,
2007. Student population at December 31, 2008 increased 20.3%
to 21,667 from 18,013 at December 31, 2007. Student population,
excluding Briarwood College, increased 17.2% to 21,116 at December 31,
2008.
|
2009 Guidance
- -
|
|
·
|
Revenue
of $476 million to $486 million, up 26% to 29% over
2008.
|
Continued . .
..
Page 2
of 10
|
|
·
|
Diluted
EPS of $0.90 to $0.95, representing growth of 15% to 22% over
2008. Our EPS guidance for 2009 includes approximately $0.10 to
$0.12 dilution in connection with our acquisitions, with most of this
dilution being incurred in the first half of the
year.
|
|
|
·
|
Increase
in expected same school student starts of 13% to 15% over
2008.
|
|
|
·
|
For
the first quarter of 2009, we expect revenues of $112.0 million to $114.0
million, representing an increase of approximately 34% over the first
quarter of 2008, and diluted EPS of $0.05 to $0.07. Guidance
for the first quarter of 2009 is based on an expected increase in same
school student starts of 25% to 28% over the same period in
2008.
|
Comment
and Outlook
“We are
very pleased with our financial performance for the fourth quarter of 2008 and
with our year end results. Strong start growth during the year
resulted in increased capacity utilization which produced meaningful bottom line
results. During the fourth quarter of 2008, our operating margin
increased to 19.8% from 18.8% in the fourth quarter of 2007. We expect this
leverage in our business to continue as we enter 2009 with approximately 3,100
more students on a same school basis than we had in January of 2008,” said David
Carney, Lincoln’s Chairman & CEO. “The investments we have made
in our sales and marketing initiatives over the last two years, coupled with the
effect of the weakening economy, helped sustain this momentum which enabled us
to finish the year with student starts up 12.4% over prior year.”
Mr.
Carney added, “As we previously announced, on December 1, 2008 we completed the
purchase of Briarwood College and on January 20, 2009 we announced the
acquisition of the Baran school group. These two acquisitions added
approximately 2,500 students to our population and will provide us with a solid
foundation to increase our long-term growth both on-ground and
on-line. These acquisitions are expected to add approximately $50
million to $55 million in revenue for 2009. Although these acquisitions will be
dilutive in 2009 as a result of acquisition related items and the incremental
costs of accelerating the integration of these businesses, our 2009 guidance
highlighted above includes the impact of these acquisitions on our 2009
earnings. We expect that these acquisitions will provide meaningful
top line and bottom line growth in 2010.”
Mr.
Carney concluded, “Our strategy continues to be a disciplined approach to
expanding our degree offerings, both on-ground and on-line, in order to address
a broader market and provide a path for students to migrate from diploma to
degree within the Lincoln family. Finally, over the last several
years we continued to diversify our company and our product offerings and have
made meaningful investments in our sales and marketing efforts. This
has now produced nine consecutive quarters of student start growth and six
consecutive quarters of enrollment growth. This growth, coupled with
the slowdown in the economy we are experiencing, has positioned us well for
2009. We expect to continue to benefit from the leverage inherent in our
business model.”
2008
Operating Performance
Revenues
increased by $49.1 million, or 15.0%, to $376.9 million for 2008 from
$327.8 million for 2007. Approximately $1.0 million of this increase
was a result of our acquisition of Briarwood College (BRI), on December 1,
2008. Excluding BRI, the increase in revenues was primarily
attributable to a
Page 3 of 10
13.0%
increase in average student population, which increased to 19,983 for the year
ended December 31, 2008, from 17,687 for the year ended December 31,
2007. Revenues were also favorably impacted during the year by
tuition increases, which averaged from 3.0% to 3.5%, and increases in tool sales
and interest income collected on student loans, which increased by $0.7 million
and $0.8 million, respectively, for the year ended December
2008. Average revenue per student increased 1.5% for the year
ended December 31, 2008, from the year ended December 31, 2007, primarily due to
tuition increases, offset by a shift in our student population to lower tuition
programs.
Operating
income margin for the year ended December 31, 2008 increased to 9.4% from 7.9%
for the year ended December 31, 2007. The improvement in operating
income was related to the increase in our average student population which
resulted in capacity utilization of 60% at December 31, 2008 versus 53% at
December 31, 2007. This increase in capacity utilization enabled us
to leverage our educational services and facilities expenses during the
year. Accordingly, the additional revenues from increased student
population contributed to the increase in operating income margin.
Our
educational services and facilities expenses increased by $14.0 million, or
10.1%, to $153.5 million for the year ended December 31, 2008 from
$139.5 million for the year ended December 31, 2007. BRI accounted for $0.5
million, or 0.4%, of this increase. Excluding BRI, the increase in educational
services and facilities expenses was primarily due to instructional expenses,
and books and tools expenses, which increased by $6.1 million, or 8.4%, and $3.6
million, or 20.9%, respectively, over the prior year. This increase was
attributable to a 12.4% increase in student starts for the year ended December
31, 2008 as compared to the prior year and the overall increase in student
population and higher tool sales during 2008 compared to 2007. We
began 2008 with approximately 1,400 more students than we had on January 1, 2007
and as of December 31, 2008 our population was approximately 3,600 higher than
as of December 31, 2007. The remainder of the increase in educational
services and facilities expenses was due to facilities expenses, which increased
by $3.8 million for the year ended December 31, 2008 over the prior
year. This increase was primarily due to an increase in depreciation
expense of $2.7 million resulting from higher capital expenditures during 2008
and 2007. The remainder of the increase in facilities expenses was
due to higher utilities, rent and repairs and maintenance expenses at our
campuses. Capital expenditures in 2008 included the renovation and
conversion of our former auto school in Grand Prairie, Texas to a skilled trades
school, as well as the opening of our new campus, Aliante, in North Las Vegas,
Nevada. Educational services and facilities expenses as a percentage
of revenues decreased to 40.7% of revenues for the year ended December 31, 2008
from 42.6% for the year ended December 31, 2007.
Our
selling, general and administrative expenses for the year ended December 31,
2008 were $187.7 million, an increase of $25.3 million, or 15.6%, from
$162.4 million for the year ended December 31, 2007. Approximately $0.3 million,
or 1.2%, of this increase was attributed to BRI. Excluding BRI, the increase in
our selling, general and administrative expenses for the year ended December 31,
2008 was primarily due to a $1.9 million, or 13.4%, increase in student
services, a $4.8 million, or 7.4%, increase in sales and marketing and an $18.3
million, or 22.0%, increase in administrative expenses as compared to the prior
year.
The
increase in student services was primarily due to increases in compensation and
benefit expenses attributable to additional financial aid and career services
personnel as a result of a larger student population during the year ended
December 31, 2008 as compared to the prior year. In addition, we expanded a
pilot program, which we began in 2007, to centralize the back office
administration of our financial aid department in an effort to improve the
effectiveness of our financial aid processing. This resulted in the
hiring of additional financial aid representatives during 2008.
Page 4 of 10
The
increase in sales and marketing expense was due to (a) annual compensation
increases to sales representatives; (b) the hiring of additional sales
representatives; and (c) increased call center support for the year ended
December 31, 2008 as compared to the prior year. In addition, we increased our
marketing investments in an effort to continue to grow our student
population.
The
increase in administrative expenses was primarily due to (a) a $9.8 million
increase in compensation and benefits, resulting from annual compensation
increases, including increases in employee bonuses, stock compensation expense
and the cost of benefits provided to employees; (b) a $4.2 million
increase in bad debt expense; (c) $0.2 million refunded to the U.S. Department
of Education resulting from a program review at Southwestern College; (d) a $0.6
million increase in software maintenance expenses resulting from increased
software licenses for our student management system; (e) $0.9 million
of acquisition expenses related to our acquisition of Baran in
January 2009 in accordance with Statement of Financial Accounting Standards
Statement No. 141R, Business Combinations; and (f ) $0.9 million of expenses
incurred in connection with two registration statements on Form S-3, filed with
the SEC during 2008, and other related expenses.
For the
year ended December 31, 2008, our bad debt expense as a percentage of revenue
was 5.7% as compared to 5.3% for the year ended December 31,
2007. This increase was primarily attributable to higher accounts
receivable due to an increase of 13.0% in average student population for 2008 as
compared to the same period in 2007. The number of days sales
outstanding for the year ended December 31, 2008 decreased to 25.4 days compared
to 27.7 days for 2007, primarily due to the timing of the collection of federal
funds.
As a
percentage of revenues, selling, general and administrative expenses increased
to 49.9% of revenues for 2008 from 49.5% for 2007.
Net
income from continuing operations for the year ended December 31, 2008 was $20.2
million, or $0.78 per diluted share, as compared to $13.8 million or $0.53 per
diluted share for 2007.
Fourth
Quarter 2008 Operating Performance
Revenues
increased by $17.0 million, or 18.9%, to $107.3 million for the
fourth quarter of 2008 from $90.3 million for the comparable period in
2007. Included in revenues for the fourth quarter of 2008 was
approximately $1.0 million related to our acquisition of
BRI. Revenues for the fourth quarter of 2008 were positively impacted
by a 17.1% increase in student starts and an increase in our average population
of 16.7%. For the fourth quarter of 2008, our average population was
22,361 students compared to 19,167 students for the fourth quarter of
2007.
Our
operating income for the fourth quarter of 2008 was $21.2 million, which
represented a 24.8% increase from operating income of $17.0 million for the
fourth quarter of 2007. The increase in operating income was due to
leverage in our educational services and facilities expenses as a result of
higher capacity utilization at our campuses.
Educational
services and facilities expenses increased by $4.5 million, or 12.8%, to
$39.4 million for the fourth quarter of 2008 from $35.0 million
for the fourth quarter of 2007. BRI accounted for $0.5 million, or
1.4%, of this increase. Excluding BRI, the increase in educational
services and facilities expenses was due to instructional expenses and books and
tools expenses, which increased by $1.8 million, or 9.4%, and $1.2 million, or
31.5%, respectively, over the fourth quarter of 2007. This increase
Page 5 of 10
was
attributable to a 17.1% increase in student starts for the fourth quarter of
2008 as compared to the fourth quarter of 2007 and the overall increase in
student population and higher tool sales during the fourth quarter of 2008
compared to the fourth quarter of 2007. We began the fourth quarter
of 2008 with approximately 2,900 more students than we on October 1, 2008 and as
of December 31, 2008 our population was approximately 3,600 higher than as of
December 31, 2007. The remainder of the increase in educational services and
facilities expenses was due to facilities expenses, which increased by $1.0
million for fourth quarter of 2008 over the fourth quarter of
2007. This increase was primarily due to an increase in depreciation
expense of $0.5 million resulting from higher capital expenditures during 2008
and 2007. The remainder of the increase in facilities expenses was
due to higher utilities, rent and repairs and maintenance expenses at our
campuses. Capital expenditures in 2008 included the renovation and
conversion of our former auto school in Grand Prairie, Texas to a skilled trades
school, as well as the opening of our new campus, Aliante, in North Las Vegas,
Nevada. Educational services and facilities expenses as a percentage
of revenues decreased to 36.7% of revenues for the fourth quarter of 2008 from
38.7% for the fourth quarter of 2007.
Our
selling, general and administrative expenses for the fourth quarter of 2008 were
$46.7 million, an increase of $8.3 million, or 21.8%, from $38.3
million for the fourth quarter of 2007. Approximately $0.3
million, or 0.8%, of this increase was attributable to BRI. Excluding BRI, the
increase in our selling, general and administrative expenses for the year ended
December 31, 2008 was primarily due to a $0.6 million, or 17.8%, increase in
student services, a $1.8 million, or 12.6%, increase in sales and marketing and
a $5.6 million, or 27.4%, increase in administrative expenses as compared to the
fourth quarter of 2007.
The
increase in student services was primarily due to increases in compensation and
benefit expenses attributed to additional financial aid and career services
personnel as a result of a larger student population during the fourth quarter
of 2008 as compared to the fourth quarter of 2007.
The
increase in sales and marketing expense was due to (a) annual compensation
increases to sales representatives; (b) the hiring of additional sales
representatives; and (c) increased call center support for the fourth quarter of
2008 as compared to the fourth quarter of 2007. In addition, we increased our
marketing investments in an effort to continue to grow our student
population.
The
increase in administrative expenses was primarily due to (a) a $3.2 million
increase in compensation and benefits, resulting from annual compensation
increases, including increases in employee bonuses, stock compensation expense
and the cost of benefits provided to employees; (b) a $0.6 million increase in
bad debt expense; (c) a $0.2 million increase in software maintenance expenses
resulting from increased software licenses for our student management system;
(d) $0.9 million of acquisition expensed related to our acquisition
of Baran in January 2009 specified under Statement of Financial Accounting
Standards Statement No. 141R, Business Combinations; and (e) $0.2 million of
expenses incurred in connection with two registration statements on Form S-3,
filed with the SEC during 2008, and other related expenses.
For the
quarter ended December 31, 2008, our bad debt expense as a percentage of revenue
was 5.4% as compared to 5.6% for the same quarter of 2007. This
improvement was primarily attributable to: (a) better cash collections on
students’ receivables, which offset higher accounts receivables balances
resulting from an increase of 16.7% in average student population for the fourth
quarter of 2008 as compared to the same period in 2007, and (b) the timing of
collection of federal funds. The number of days sales outstanding for the
quarter ended December 31, 2008 decreased to 22.4 days compared to 25.4 days for
the same period in 2007.
Page 6 of 10
As a
percentage of revenues, selling, general and administrative expenses increased
to 43.5% of revenues for the quarter ended December 31, 2008 from 42.4% for the
quarter ended December 31, 2007.
As a
result of the above, our operating margin for the fourth quarter of 2008
increased to 19.8% from 18.8% in the fourth quarter of 2006.
Net
income from continuing operations for the fourth quarter of 2008 was $12.8
million, or $0.49 per diluted share, as compared to $9.6 million, or $0.37 per
diluted share, for the comparable period in 2007.
Balance
Sheet
At
December 31, 2008, we had $15.2 million in cash and cash equivalents, compared
to $3.5 million at December 31, 2007.
At
December 31, 2008, our stockholders’ equity was $174.9 million, compared to
$162.5 million at December 31, 2007, with the increase resulting from net income
for the period and stock-based compensation expense.
Student
Metrics
|
Three
Months Ended
|
Year
Ended
|
|||||||||||||||||||||||
|
December
31,
|
December
31,
|
|||||||||||||||||||||||
|
2007
|
2008
|
Growth
|
2007
|
2008
|
Growth
|
|||||||||||||||||||
|
Student
Starts
|
4,440 | 5,200 | 17.1 | % | 24,185 | 27,175 | 12.4 | % | ||||||||||||||||
|
Average
population
|
19,167 | 22,361 | 16.7 | % | 17,687 | 20,006 | 13.1 | % | ||||||||||||||||
|
End
of period population
|
18,013 | 21,667 | 20.3 | % | 18,013 | 21,667 | 20.3 | % | ||||||||||||||||
Conference
Call Today
Lincoln
will host a conference call today at 10:00 a.m. Eastern Standard
Time. The conference call can be accessed by going to the IR portion
of our website at www.lincolneducationalservices.com. Participants
can also listen to the conference call by dialing 866-510-0711 (domestic) or
617-597-5379 (international) and citing code 13704489. Please log-in or dial-in
at least 10 minutes prior to the start time to ensure a connection. An archived
version of the webcast will be accessible for 90 days at http://www.lincolneducationalservices.com.
A replay of the call will also be available for seven days by calling
888-286-8010 (domestic) or 617-801-6888 (international) and citing code
44449747.
Page 7 of 10
About
Lincoln Educational Services Corporation
Lincoln
Educational Services Corporation is a leading and diversified for-profit
provider of career-oriented post-secondary education. Lincoln offers
recent high school graduates and working adults degree and diploma programs in
five principal areas of study: automotive technology, health sciences, skilled
trades, business and information technology and hospitality
services. Lincoln has provided the workforce with skilled technicians
since its inception in 1946. Lincoln currently operates 42 campuses
in 17 states under 10 brands: Lincoln College of Technology, Lincoln Technical
Institute, Nashville Auto-Diesel College, Southwestern College, Euphoria
Institute of Beauty Arts and Sciences, Connecticut Culinary Institute, Americare
School of Nursing, Baran Institute of Technology, Engine City Technical
Institute, and Briarwood College. Lincoln had a combined average
enrollment of approximately 20,006 students as of December 31,
2008.
Statements
in this press release regarding Lincoln’s business which are not historical
facts may be “forward-looking statements” that involve risks and uncertainties.
For a discussion of such risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking statements, see
“Risk Factors” in Lincoln’s Form 10-K for the year ended December 31, 2007. All
forward-looking statements are qualified in their entirety by this cautionary
statement, and Lincoln undertakes no obligation to revise or update this news
release to reflect events or circumstances after the date hereof.
(Please
see financial attachments.)
Contacts:
|
Investors:
|
Press
or Media:
|
|
Chris
Plunkett/Brad Edwards
|
Jennifer
Gery
|
|
Brainerd
Communicators, Inc.
|
Brainerd
Communicators, Inc.
|
|
212-986-6667
|
212-986-6667
|
Page 8 of 10
LINCOLN EDUCATIONAL SERVICES CORPORATION AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(In
thousands, except per share amounts)
|
Three
Months Ended December 31,
(Unaudited)
|
Years
Ended December 31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
REVENUES
|
$ | 107,323 | $ | 90,294 | $ | 376,907 | $ | 327,774 | ||||||||
|
COSTS
AND EXPENSES:
|
||||||||||||||||
|
Educational
services and facilities
|
39,421 | 34,960 | 153,530 | 139,500 | ||||||||||||
|
Selling,
general and administrative
|
46,665 | 38,321 | 187,722 | 162,396 | ||||||||||||
|
Loss
(gain) on sale of assets
|
(11 | ) | - | 80 | (15 | ) | ||||||||||
|
Total
costs and expenses
|
86,075 | 73,281 | 341,332 | 301,881 | ||||||||||||
|
OPERATING
INCOME
|
21,248 | 17,013 | 35,575 | 25,893 | ||||||||||||
|
OTHER:
|
||||||||||||||||
|
Interest
income
|
17 | 31 | 113 | 180 | ||||||||||||
|
Interest
expense
|
(487 | ) | (501 | ) | (2,152 | ) | (2,341 | ) | ||||||||
|
Other
income
|
- | 1 | - | 27 | ||||||||||||
|
INCOME
BEFORE INCOME TAXES
|
20,778 | 16,544 | 33,536 | 23,759 | ||||||||||||
|
PROVISION
FOR INCOME TAXES
|
8,015 | 6,924 | 13,341 | 9,932 | ||||||||||||
|
NET
INCOME FROM CONTINUING OPERATIONS
|
$ | 12,763 | $ | 9,620 | $ | 20,195 | $ | 13,827 | ||||||||
|
Loss
from discontinued operations, net of tax
|
- | - | - | (5,487 | ) | |||||||||||
|
NET
INCOME
|
$ | 12,763 | $ | 9,620 | 20,195 | $ | 8,340 | |||||||||
|
Earnings
per share - Basic -
|
||||||||||||||||
|
Earnings
per share from continuing operations
|
$ | 0.51 | $ | 0.38 | $ | 0.80 | $ | 0.54 | ||||||||
|
Loss
per share from discontinued operations
|
- | - | - | (0.21 | ) | |||||||||||
|
Net
income per share
|
$ | 0.51 | $ | 0.38 | $ | 0.80 | $ | 0.33 | ||||||||
|
Earnings
per share – Diluted -
|
||||||||||||||||
|
Earnings
per share from continuing operations
|
$ | 0.49 | $ | 0.37 | $ | 0.78 | $ | 0.53 | ||||||||
|
Loss
per share from discontinued operations
|
- | - | - | (0.21 | ) | |||||||||||
|
Net
income per share
|
$ | 0.49 | $ | 0.37 | $ | 0.78 | $ | 0.32 | ||||||||
|
Weighted
average number of common shares outstanding:
|
||||||||||||||||
|
Basic
|
25,148 | 25,598 | 25,308 | 25,479 | ||||||||||||
|
Diluted
|
25,818 | 26,274 | 25,984 | 26,090 | ||||||||||||
|
Other
data:
|
||||||||||||||||
|
EBITDA
(1)
|
34,276 | 21,021 | 53,495 | 41,031 | ||||||||||||
|
Depreciation
and amortization
|
4,543 | 4,007 | 17,920 | 15,111 | ||||||||||||
|
Number
of campuses
|
36 | 34 | 36 | 34 | ||||||||||||
|
Average
enrollment
|
22,361 | 19,167 | 20,006 | 17,687 | ||||||||||||
|
Stock
based compensation
|
430 | 500 | 2,201 | 1,849 | ||||||||||||
|
Net
cash provided by operating activities
|
24,173 | 6,785 | 54,176 | 15,735 | ||||||||||||
|
Net
cash used in investing activities
|
(15,286 | ) | (6,827 | ) | (31,205 | ) | (23,830 | ) | ||||||||
|
Net
cash (used in) provided by financing activities
|
202 | 7 | (11,239 | ) | 5,136 | |||||||||||
Page 9 of
10
|
Selected
Consolidated Balance Sheet Data:
|
December
31,
|
|||
|
(In
thousands)
|
2008
|
|||
|
------------
|
||||
|
Cash
and cash equivalents
|
$ | 15,234 | ||
|
Current
assets
|
51,261 | |||
|
Working
capital/(deficit)
|
(19,840 | ) | ||
|
Total
assets
|
268,042 | |||
|
Current
liabilities
|
71,101 | |||
|
Long-term
debt and capital lease
|
||||
|
Obligations,
including current portion
|
10,174 | |||
|
Total
stockholders’ equity
|
$ | 174,949 | ||
(1)
Reconciliation of Non-GAAP Financial Measures
EBITDA is
a measurement not recognized in financial statements presented in accordance
with accounting principles generally accepted in the United States of America
(“GAAP”). We define EBITDA as income from continuing operations
before interest expense (net of interest income), provision for income taxes and
depreciation and amortization. EBITDA is presented because we believe
it is a useful indicator of our performance and our ability to make strategic
acquisitions and meet capital expenditure and debt service
requirements. It is not, however, intended to represent cash flows
from operations as defined by GAAP and should not be used as an alternative to
net income (loss) as an indicator of operating performance or to cash flow as a
measure of liquidity. EBITDA is not necessarily comparable to
similarly titled measures used by other companies. Following is a
reconciliation of income from continuing operations to EBITDA:
Page 10 of
10
|
Three
Months Ended December 31,
(Unaudited)
|
Years
Ended December 31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Income
from continuing operations
|
$ | 21,248 | $ | 9,620 | $ | 20,195 | $ | 13,827 | ||||||||
|
Interest
expense,
net
|
470 | 470 | 2,039 | 2,161 | ||||||||||||
|
Provision
for income taxes
|
8,015 | 6,924 | 13,341 | 9,932 | ||||||||||||
|
Depreciation
and amortization
|
4,543 | 4,007 | 17,920 | 15,111 | ||||||||||||
|
EBITDA
|
$ | 34,276 | $ | 21,021 | $ | 53,495 | $ | 41,031 | ||||||||
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