Lincoln Educational Services Reports First Quarter Financial Results: Double Digit Growth in Revenue and Student Starts, Increased Outlook for Full Year 2025
Lincoln Educational Services (NASDAQ: LINC) reported strong Q1 2025 financial results, with revenue increasing 13.7% to $117.5 million and student starts growing 16.2%. The company's quarter-end student population rose by 15.2%, while Adjusted EBITDA reached $10.6 million, up from $6.5 million. Net income improved to $1.9 million, compared to a $0.2 million loss in the previous year.
The company completed its Nashville campus transition to a new state-of-the-art facility and expanded its credit facility to $60 million. Based on strong Q1 performance, Lincoln raised its 2025 guidance, now expecting revenue of $485-495 million and Adjusted EBITDA of $58-63 million. The company remains confident in achieving its 2027 targets of approximately $550M in revenue and $90M in adjusted EBITDA.
Lincoln Educational Services (NASDAQ: LINC) ha riportato solidi risultati finanziari nel primo trimestre 2025, con un aumento del fatturato del 13,7% a 117,5 milioni di dollari e una crescita degli studenti iscritti del 16,2%. La popolazione studentesca a fine trimestre è cresciuta del 15,2%, mentre l'EBITDA rettificato ha raggiunto 10,6 milioni di dollari, rispetto ai 6,5 milioni dell'anno precedente. L'utile netto è migliorato a 1,9 milioni di dollari, rispetto a una perdita di 0,2 milioni nell'anno precedente.
L'azienda ha completato la transizione del campus di Nashville in una nuova struttura all'avanguardia e ha ampliato la linea di credito a 60 milioni di dollari. Grazie alle solide performance del primo trimestre, Lincoln ha rivisto al rialzo le previsioni per il 2025, prevedendo ora ricavi tra 485 e 495 milioni di dollari e un EBITDA rettificato tra 58 e 63 milioni. L'azienda resta fiduciosa nel raggiungimento degli obiettivi 2027 di circa 550 milioni di dollari di ricavi e 90 milioni di EBITDA rettificato.
Lincoln Educational Services (NASDAQ: LINC) reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos que aumentaron un 13,7% hasta 117,5 millones de dólares y un crecimiento del 16,2% en el número de estudiantes inscritos. La población estudiantil al cierre del trimestre creció un 15,2%, mientras que el EBITDA ajustado alcanzó 10,6 millones de dólares, frente a los 6,5 millones del año anterior. El ingreso neto mejoró a 1,9 millones de dólares, en comparación con una pérdida de 0,2 millones el año previo.
La compañía completó la transición de su campus en Nashville a una nueva instalación de última generación y amplió su línea de crédito a 60 millones de dólares. Basándose en el sólido desempeño del primer trimestre, Lincoln elevó sus previsiones para 2025, esperando ahora ingresos entre 485 y 495 millones de dólares y un EBITDA ajustado entre 58 y 63 millones. La empresa mantiene la confianza en alcanzar sus objetivos para 2027 de aproximadamente 550 millones de dólares en ingresos y 90 millones en EBITDA ajustado.
Lincoln Educational Services (NASDAQ: LINC)는 2025년 1분기 강력한 재무 실적을 보고했으며, 매출은 13.7% 증가한 1억 1,750만 달러를 기록했고 학생 등록 수는 16.2% 증가했습니다. 분기 말 학생 수는 15.2% 늘었으며, 조정 EBITDA는 1,060만 달러로 전년도의 650만 달러에서 증가했습니다. 순이익은 190만 달러로 개선되어 전년도의 20만 달러 손실에서 흑자로 전환되었습니다.
회사는 내슈빌 캠퍼스를 최첨단 시설로 이전을 완료했으며, 신용 한도를 6,000만 달러로 확대했습니다. 1분기 강력한 실적을 바탕으로 Lincoln은 2025년 가이던스를 상향 조정하여 매출 4억 8,500만~4억 9,500만 달러, 조정 EBITDA 5,800만~6,300만 달러를 예상하고 있습니다. 회사는 2027년 목표인 약 5억 5,000만 달러 매출과 9,000만 달러 조정 EBITDA 달성을 자신하고 있습니다.
Lincoln Educational Services (NASDAQ: LINC) a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un chiffre d'affaires en hausse de 13,7 % à 117,5 millions de dollars et une augmentation des inscriptions étudiantes de 16,2 %. La population étudiante en fin de trimestre a augmenté de 15,2 %, tandis que l'EBITDA ajusté a atteint 10,6 millions de dollars, contre 6,5 millions l'année précédente. Le bénéfice net s'est amélioré à 1,9 million de dollars, contre une perte de 0,2 million l'année précédente.
L'entreprise a achevé la transition de son campus de Nashville vers une installation ultramoderne et a étendu sa facilité de crédit à 60 millions de dollars. Sur la base de la forte performance du premier trimestre, Lincoln a relevé ses prévisions pour 2025, anticipant désormais un chiffre d'affaires entre 485 et 495 millions de dollars et un EBITDA ajusté entre 58 et 63 millions. L'entreprise reste confiante dans l'atteinte de ses objectifs 2027 d'environ 550 millions de dollars de chiffre d'affaires et 90 millions d'EBITDA ajusté.
Lincoln Educational Services (NASDAQ: LINC) meldete starke Finanzergebnisse für das erste Quartal 2025, mit einem Umsatzanstieg von 13,7 % auf 117,5 Millionen US-Dollar und einem Wachstum der Studentenzahlen um 16,2 %. Die Studentenzahl zum Quartalsende stieg um 15,2 %, während das bereinigte EBITDA 10,6 Millionen US-Dollar erreichte, gegenüber 6,5 Millionen im Vorjahr. Der Nettogewinn verbesserte sich auf 1,9 Millionen US-Dollar im Vergleich zu einem Verlust von 0,2 Millionen im Vorjahr.
Das Unternehmen hat den Umzug seines Campus in Nashville in eine hochmoderne Einrichtung abgeschlossen und seine Kreditlinie auf 60 Millionen US-Dollar erweitert. Aufgrund der starken Ergebnisse im ersten Quartal hat Lincoln seine Prognose für 2025 angehoben und erwartet nun einen Umsatz von 485 bis 495 Millionen US-Dollar sowie ein bereinigtes EBITDA von 58 bis 63 Millionen. Das Unternehmen ist zuversichtlich, seine Ziele für 2027 von etwa 550 Millionen US-Dollar Umsatz und 90 Millionen bereinigtem EBITDA zu erreichen.
- Revenue grew 13.7% to $117.5 million in Q1 2025
- Student starts increased by 16.2%, with 20.9% growth excluding Transitional segment
- Adjusted EBITDA rose 63% to $10.6 million
- Strong liquidity position with $90 million and zero debt
- Marketing cost per student start decreased by 20%
- Credit facility expanded from $40 million to $60 million
- Raised full-year 2025 guidance across all metrics
- Higher operating expenses with educational services up 10.2% to $47.4 million
- Increased selling, general and administrative expenses by 10.6% to $66.9 million
- Corporate expenses rose to $18.3 million from $12.8 million year-over-year
Insights
Lincoln Educational Services delivered exceptional Q1 growth across all metrics, raised 2025 guidance, and continues executing strategic expansion with zero debt.
Lincoln's Q1 results showcase impressive operational momentum with revenue surging 13.7% to
The financial performance is particularly striking on the profitability front. Adjusted EBITDA jumped
Lincoln's balance sheet strength is remarkable, with nearly
The company's strategic expansion is proceeding as planned, with the Nashville campus relocation completed, Levittown relocation on track, and new campuses in Houston and Hicksville in development. Program expansion continues with two new programs launched in Q1 and five more planned in high-demand fields.
Management's confidence is evident in their updated guidance, raising revenue expectations to
Conference Call Today at 10 a.m. Eastern Standard Time
PARSIPPANY, N.J., May 12, 2025 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the first quarter ended March 31, 2025, as well as recent business developments.
First Quarter 2025 Financial and Operational Highlights
- Revenue increased by
13.7% to$117.5 million - Student starts grew by
16.2% , starts increased20.9% excluding the Transitional segment - Quarter-end student population rose by
15.2% , or18.3% excluding the Transitional segment - Adjusted EBITDA of
$10.6 million , compared to$6.5 million - Net income of
$1.9 million , compared to$0.2 million net loss - Operating leverage gains across instructional and marketing expenses
- Total liquidity of nearly
$90 million , with no debt outstanding as of March 31, 2025 - 2025 financial guidance raised based on strong first quarter results and current trends
A complete listing of Lincoln's non-GAAP measures are described and reconciled to the corresponding GAAP measures at the end of this release.
Recent Developments
- In March, Lincoln successfully completed the transition of all existing programs at its Nashville, Tennessee campus to a new state-of-the-art facility. The new facility is designed for enhanced operational efficiency through Lincoln’s 10.0 hybrid education delivery model and will also accommodate the launch of two additional high-demand programs this year.
- The Company amended its credit agreement in March, increasing the size of its revolving credit facility from
$40 million to$60 million and expanding the accordion feature from$20 million to$25 million . This amendment strengthens Lincoln’s financial flexibility and is available to support the Company’s strategic growth initiatives.
“We delivered a strong start to 2025 with exceptional student start growth, double digit revenue growth and a
“New campus development and program replications remain central to our growth. We successfully completed the relocation of our Nashville, Tennessee campus in March, and the Levittown, Pennsylvania campus relocation remains on track for completion in the second half of the year. Our next new campus in Houston, Texas is expected to open its doors to students by year-end, followed by Hicksville, New York by end of 2026. We also launched two new programs at existing campuses this quarter and anticipate rolling out five additional offerings in high demand fields in the coming months.”
“Student interest in Lincoln’s programs and demand for our graduates remains robust, driving our geographic and program expansion. We continue to evaluate expanding to additional markets with high unmet demand for our career-focused training. Based on our progress to date, we are confident in our ability to achieve our 2027 targets of approximately
2025 FIRST QUARTER FINANCIAL RESULTS
Quarter ended March 31, 2025, compared to March 31, 2024
- Revenue grew by
$14.1 million , or13.7% to$117.5 million , marking the sixth consecutive quarter of double-digit growth. The increase was primarily due to a13.1% increase in average student population driven by strong start growth. For the first quarter, student starts grew by16.2% ,20.9% excluding the Transitional segment. - Educational services and facilities expense increased
$4.4 million , or10.2% to$47.4 million . The increase over the prior year was primarily driven by costs associated with new programs, new campuses and campus relocations, and support for a larger student population. However, as a percentage of revenue, educational services and facilities expense decreased from the prior year, reflecting continued margin expansion and improved operating efficiency. - Selling, general and administrative expense increased
$6.4 million , or10.6% to$66.9 million . The increase over the prior year was primarily driven by higher compensation and benefits costs as a result of an expanded workforce to support our larger student population. Marketing cost per student start was approximately20% lower compared to the prior year.
2025 FIRST QUARTER SEGMENT RESULTS
Campus Operations Segment
Revenue increased
Transitional Segment
During the prior year, the Company’s Summerlin, Las Vegas campus was classified in the Transitional segment. The sale of the campus was consummated effective January 1, 2025. In the prior year comparable period, the Summerlin campus had revenue of
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were
FULL YEAR 2025 OUTLOOK
Based on the 2025 first quarter operating and financial results, as well as the outlook for the remainder of the year, the Company is raising its financial guidance for revenue, adjusted EBITDA, adjusted net income and student starts as follows:
| Previous | Updated | ||||||||||
| (In millions, except for student starts) | FY 2025 Guidance | FY 2025 Guidance | |||||||||
| Revenue | $ | 480 | - | $ | 490 | $ | 485 | - | $ | 495 | |
| Adjusted EBITDA | $ | 55 | - | $ | 601 | $ | 58 | - | $ | 631 | |
| Net income | $ | 8 | - | $ | 13 | $ | 10 | - | $ | 15 | |
| Capital expenditures | $ | 70 | - | $ | 75 | $ | 70 | - | $ | 75 | |
| Student Starts | - | - | | ||||||||
1 The guidance in this release includes references to non-GAAP operating measures. A reconciliation to the midpoint of our guidance can be reviewed below in the non-GAAP operating measures at the end of this release.
As a reminder, to provide a clearer view of the Company’s underlying performance, guidance excludes non-cash stock-based compensation and one-time, non-recurring items. Additionally, it excludes pre-opening costs, as well as net operating losses from new campuses, up to four quarters after the campus opening, or until the campus becomes profitable, whichever occurs first. In terms of relocating the Nashville and Levittown campuses, adjustments have been made to exclude pre-opening costs and relocation costs through the end of quarter in which the relocation is completed. And in the case of program replications and expansions, adjustments are made to exclude net operating losses through the quarter in which the program is launched.
CONFERENCE CALL INFO
Lincoln will host a conference call today at 10:00 a.m. Eastern Standard Time to discuss results. To access the live webcast of the conference call, please go to the Investor Overview section of Lincoln’s website at http://www.lincolntech.edu. Participants may also register via teleconference at: Q1 2025 Lincoln Educational Services Earnings Conference Call. Once registration is completed, participants will be provided with a dial-in number containing a personalized PIN to access the call. Participants are requested to register at least 15 minutes prior to the start of the call.
An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to America’s skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults 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 and currently operates 21 campuses in 12 states under the brands Lincoln Technical Institute, Lincoln College of Technology and Nashville Auto Diesel College. The Company was incorporated in New Jersey in 2003 as the successor-in-interest to various acquired schools including Lincoln Technical Institute, Inc. which opened its first campus in Newark, New Jersey in 1946. For more information, please go to www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation regarding Lincoln’s business that are not historical facts, including those made in a conference call, may be “forward-looking statements” as that term is defined in the federal securities law. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings, or other aspects of the Company’s operating results. The Company cautions you that these statements concern current expectations about the Company’s future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projects upon which the statements are based including, without limitation, impacts related to epidemics or pandemics; our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely regulatory approvals in connection with acquisitions or a change of control of our Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner or on a timely basis; risks associated with cybersecurity; risks associated with changes in applicable federal laws and regulations; uncertainties regarding our ability to comply with federal and state laws and regulations, such as the 90/10 rule and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our industry; general economic conditions; and other factors discussed in the “Risk Factors” section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
| LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands, except share amounts) | |||||||
| (Unaudited) | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 28,655 | $ | 59,273 | |||
| Accounts receivable, less allowance of | 47,278 | 42,983 | |||||
| Inventories | 2,394 | 3,053 | |||||
| Prepaid expenses and other current assets | 8,051 | 4,793 | |||||
| Asset held for sale | - | 1,150 | |||||
| Total current assets | 86,378 | 111,252 | |||||
| PROPERTY, EQUIPMENT AND FACILITIES - At cost, net of accumulated depreciation and amortization of | 125,646 | 103,533 | |||||
| OTHER ASSETS: | |||||||
| Noncurrent receivables, less allowance of | 16,786 | 19,627 | |||||
| Deferred finance charges | 358 | 323 | |||||
| Deferred income taxes, net | 24,812 | 25,359 | |||||
| Operating lease right-of-use assets | 133,462 | 136,034 | |||||
| Finance lease right-of-use assets | 26,327 | 26,745 | |||||
| Goodwill | 10,742 | 10,742 | |||||
| Other assets, net | 1,367 | 1,387 | |||||
| Pension plan assets, net | 1,554 | 1,554 | |||||
| Total other assets | 215,408 | 221,771 | |||||
| TOTAL ASSETS | $ | 427,432 | $ | 436,556 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Unearned tuition | $ | 28,846 | $ | 30,631 | |||
| Accounts payable | 34,359 | 37,026 | |||||
| Accrued expenses | 8,849 | 11,986 | |||||
| Income taxes payable | 1,297 | 1,072 | |||||
| Current portion of operating lease liabilities | 9,751 | 9,497 | |||||
| Total current liabilities | 83,102 | 90,212 | |||||
| NONCURRENT LIABILITIES: | |||||||
| Long-term portion of operating lease liabilities | 136,181 | 138,803 | |||||
| Long-term portion of finance lease liabilities | 30,369 | 29,261 | |||||
| Other long-term liabilities | - | 16 | |||||
| Total liabilities | 249,652 | 258,292 | |||||
| COMMITMENTS AND CONTINGENCIES | |||||||
| STOCKHOLDERS' EQUITY: | |||||||
| Common stock, no par value - authorized 100,000,000 shares at March 31, 2025 and December 31, 2024, issued and outstanding 31,592,807 shares at March 31, 2025 and 31,462,640 shares at December 31, 2024 | 48,181 | 48,181 | |||||
| Additional paid-in capital | 48,211 | 50,639 | |||||
| Retained earnings | 81,114 | 79,170 | |||||
| Accumulated other comprehensive loss | 274 | 274 | |||||
| Total stockholders' equity | 177,780 | 178,264 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 427,432 | $ | 436,556 | |||
| LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (In thousands, except per share amounts) | |||||||
| (Unaudited) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| REVENUE | $ | 117,506 | $ | 103,366 | |||
| COSTS AND EXPENSES: | |||||||
| Educational services and facilities | 47,409 | 43,023 | |||||
| Selling, general and administrative | 66,904 | 60,492 | |||||
| (Gain) loss on sale of assets | (220 | ) | 309 | ||||
| Total costs & expenses | 114,093 | 103,824 | |||||
| OPERATING INCOME (LOSS) | 3,413 | (458 | ) | ||||
| OTHER: | |||||||
| Interest income | 114 | 698 | |||||
| Interest expense | (701 | ) | (567 | ) | |||
| INCOME (LOSS) BEFORE INCOME TAXES | 2,826 | (327 | ) | ||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 882 | (113 | ) | ||||
| NET INCOME (LOSS) | $ | 1,944 | $ | (214 | ) | ||
| Basic | |||||||
| Net income (loss) per common share | $ | 0.06 | $ | (0.01 | ) | ||
| Diluted | |||||||
| Net income (loss) per common share | $ | 0.06 | $ | (0.01 | ) | ||
| Weighted average number of common shares outstanding: | |||||||
| Basic | 30,809 | 30,301 | |||||
| Diluted | 31,074 | 30,301 | |||||
| LINCOLN EDUCATIONAL SERVICES CORPORATION AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income (loss) | $ | 1,944 | $ | (214 | ) | ||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||
| Depreciation and amortization | 3,345 | 2,599 | |||||
| Finance lease amortization | 418 | 369 | |||||
| Amortization of deferred finance charges | 40 | 18 | |||||
| Deferred income taxes | 547 | 421 | |||||
| (Gain) loss on sale of assets | (220 | ) | 309 | ||||
| Fixed asset donations | (171 | ) | (98 | ) | |||
| Provision for credit losses | 11,835 | 12,213 | |||||
| Stock-based compensation expense | 1,205 | 1,059 | |||||
| (Increase) decrease in assets: | |||||||
| Accounts receivable | (13,289 | ) | (16,860 | ) | |||
| Inventories | 659 | 529 | |||||
| Prepaid income taxes | - | (545 | ) | ||||
| Prepaid expenses and current assets | (3,243 | ) | (582 | ) | |||
| Other assets, net | 1,230 | 967 | |||||
| Increase (decrease) in liabilities: | |||||||
| Accounts payable | (8,070 | ) | (5,561 | ) | |||
| Accrued expenses | (3,137 | ) | (4,511 | ) | |||
| Unearned tuition | (1,785 | ) | (4,641 | ) | |||
| Income taxes payable | 225 | - | |||||
| Other liabilities | 89 | (406 | ) | ||||
| Total adjustments | (10,322 | ) | (14,720 | ) | |||
| Net cash used in operating activities | (8,378 | ) | (14,934 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Capital expenditures | (19,889 | ) | (1,684 | ) | |||
| Proceeds from sale of property and equipment | 249 | 9,718 | |||||
| Net cash (used in) provided by investing activities | (19,640 | ) | 8,034 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Payment of deferred finance fees | (75 | ) | (438 | ) | |||
| Finance lease principal paid | (88 | ) | - | ||||
| Tenant allowance finance leases | 1,196 | ||||||
| Net share settlement for equity-based compensation | (3,633 | ) | (3,156 | ) | |||
| Net cash used in financing activities | (2,600 | ) | (3,594 | ) | |||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (30,618 | ) | (10,494 | ) | |||
| CASH AND CASH EQUIVALENTS —Beginning of period | 59,273 | 80,269 | |||||
| CASH AND CASH EQUIVALENTS—End of period | $ | 28,655 | $ | 69,775 | |||
(1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company believes it is useful to present non-GAAP financial measures that exclude certain significant items as a means to understand the performance of its business, and to enable comparability of operating performance between periods. Additionally, the Company’s management regularly uses our non-GAAP financial measures to make operating decisions, for planning and forecasting purposes. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are measures not recognized in financial statements presented in accordance with GAAP.
- We define EBITDA as income (loss) before net interest expense (interest income), provision (benefit) for income taxes, depreciation and amortization.
- We define adjusted EBITDA as EBITDA plus stock-based compensation expense and adjustments for items not considered part of the Company’s normal recurring operations.
- We define adjusted net income as net income plus adjustments for items not considered part of the Company’s normal recurring operations.
- We define total liquidity as the Company’s cash and cash equivalents and available borrowings under our credit facility.
EBITDA, adjusted EBITDA, adjusted net income, and total liquidity are presented because we believe they are useful indicators of the Company’s performance and ability to make strategic investments and meet capital expenditures and debt service requirements. However, they are not intended to represent cash flows from operations as defined by GAAP and should not be used as an alternative to net income (loss) as indicators of operating performance or cash flow as a measure of liquidity. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are not necessarily comparable to similarly titled measures used by other companies.
The following is a reconciliation of net income (loss) to EBITDA, adjusted EBITDA, adjusted net income, and total liquidity (in thousands):
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| Consolidated | Campus Operations | Transitional | Corporate | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| Net income (loss) | $ | 1,944 | (214 | ) | $ | 21,077 | $ | 12,108 | $ | - | $ | (284 | ) | $ | (19,133 | ) | $ | (12,038 | ) | ||||||||||||
| Interest expense (income), net | 587 | (131 | ) | 595 | 501 | - | - | (8 | ) | (632 | ) | ||||||||||||||||||||
| Provision (benefit) for income taxes | 882 | (113 | ) | - | - | - | 882 | (113 | ) | ||||||||||||||||||||||
| Depreciation and amortization | 3,763 | 2,964 | 3,600 | 2,753 | - | 20 | 163 | 191 | |||||||||||||||||||||||
| EBITDA | 7,176 | 2,506 | 25,272 | 15,362 | - | (264 | ) | (18,096 | ) | (12,592 | ) | ||||||||||||||||||||
| Stock-based compensation expense | 1,205 | 1,059 | - | - | - | - | 1,205 | 1,059 | |||||||||||||||||||||||
| New campus and campus relocation costs | 1,884 | 2,802 | 1,884 | 2,802 | - | - | - | - | |||||||||||||||||||||||
| Program expansions | 371 | 89 | 371 | 89 | - | - | - | - | |||||||||||||||||||||||
| Severence and other one-time costs | - | 89 | - | 89 | - | - | - | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 10,636 | $ | 6,545 | $ | 27,527 | $ | 18,342 | $ | - | $ | (264 | ) | $ | (16,891 | ) | $ | (11,533 | ) | ||||||||||||
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||
| Consolidated | Campus Operations | Transitional | Corporate | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| Net income (loss) | $ | 1,944 | $ | (214 | ) | $ | 21,077 | $ | 12,108 | $ | - | $ | (284 | ) | $ | (19,133 | ) | $ | (12,038 | ) | |||||||||||
| Adjustments to net income: | |||||||||||||||||||||||||||||||
| New campus and campus relocation costs | 1,884 | 2,802 | 1,884 | 2,802 | |||||||||||||||||||||||||||
| Program expansions | 371 | 89 | 371 | 89 | |||||||||||||||||||||||||||
| Severance and other one time costs | - | 89 | - | 89 | |||||||||||||||||||||||||||
| Total non-recurring adjustments | 2,255 | 2,980 | 2,255 | 2,980 | - | - | - | - | |||||||||||||||||||||||
| Income tax effect | (677 | ) | (894 | ) | (677 | ) | (894 | ) | |||||||||||||||||||||||
| Adjusted net income (loss), non-GAAP | $ | 3,522 | $ | 1,872 | $ | 23,332 | $ | 15,088 | $ | - | $ | (284 | ) | $ | (19,810 | ) | $ | (12,932 | ) | ||||||||||||
| As of | |||
| March 31, 2025 | |||
| Cash and cash equivalents | $ | 28,655 | |
| Credit facility | 60,000 | ||
| Total Liquidity | $ | 88,655 | |
The table below presents selected operating metrics for our reportable segments (in thousands, except for student population and starts):
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | % Change | |||||||||
| Revenue: | |||||||||||
| Campus Operations | $ | 117,506 | $ | 101,321 | 16.0 | % | |||||
| Transitional | - | 2,045 | -100.0 | % | |||||||
| Total | $ | 117,506 | $ | 103,366 | 13.7 | % | |||||
| Operating Income (loss): | |||||||||||
| Campus Operations | $ | 21,671 | $ | 12,609 | 71.9 | % | |||||
| Transitional | - | (285 | ) | -100.0 | % | ||||||
| Corporate | (18,258 | ) | (12,783 | ) | -42.8 | % | |||||
| Total | $ | 3,413 | $ | (459 | ) | 843.6 | % | ||||
| Starts: | |||||||||||
| Campus Operations | 4,610 | 3,812 | 20.9 | % | |||||||
| Transitional | - | 155 | -100.0 | % | |||||||
| Total | 4,610 | 3,967 | 16.2 | % | |||||||
| Average Population: | |||||||||||
| Campus Operations | 15,469 | 13,311 | 16.2 | % | |||||||
| Transitional | - | 367 | -100.0 | % | |||||||
| Total | 15,469 | 13,678 | 13.1 | % | |||||||
| End of Period Population: | |||||||||||
| Campus Operations | 15,904 | 13,449 | 18.3 | % | |||||||
| Transitional | - | 352 | -100.0 | % | |||||||
| Total | 15,904 | 13,801 | 15.2 | % | |||||||
Information included in the table below provides student starts and population under the Campus Operations segment with a breakdown by Transportation and Skilled Trade programs and Healthcare and Other Professions programs.
| Population by Program (Campus Operations Segment): | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | % Change | |||||||||
| Starts: | |||||||||||
| Transportation and Skilled Trades | 3,551 | 2,682 | 32.4 | % | |||||||
| Healthcare and Other Professions | 1,059 | 1,130 | -6.3 | % | |||||||
| Total | 4,610 | 3,812 | 20.9 | % | |||||||
| Average Population: | |||||||||||
| Transportation and Skilled Trades | 11,695 | 9,544 | 22.5 | % | |||||||
| Healthcare and Other Professions | 3,774 | 3,767 | 0.2 | % | |||||||
| Total | 15,469 | 13,311 | 16.2 | % | |||||||
| End of Period Population: | |||||||||||
| Transportation and Skilled Trades | 12,130 | 9,639 | 25.8 | % | |||||||
| Healthcare and Other Professions | 3,774 | 3,810 | -0.9 | % | |||||||
| Total | 15,904 | 13,449 | 18.3 | % | |||||||
The reconciliations provided below represent management’s projections of various components included in our outlook for the full year 2025. These calculations are for illustrative purposes and will be reviewed as the year progresses to reflect actual results, our outlook and continued relevance of specific items. Any revisions or modifications, if necessary, will be disclosed in future announcements of 2025 quarterly results. Adjusted EBITDA and adjusted net income have been reconciled to the midpoint of our guidance.
| Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income - 2025 Guidance | ||||||||
| (Reconciled to the Mid-Point of 2025 Guidance) | ||||||||
| Adjusted | ||||||||
| EBITDA | Net Income | |||||||
| Net Income | $ | 12,500 | $ | 12,500 | ||||
| Interest expense, net | 2,500 | - | ||||||
| Provision for taxes | 5,100 | - | ||||||
| Depreciation and amortization1 | 21,300 | 400 | ||||||
| EBITDA | 41,400 | - | ||||||
| New campus and campus relocation costs2,3 | 8,900 | 8,900 | ||||||
| Program expansions | 2,400 | 2,400 | ||||||
| Other one time items | 2,500 | 2,500 | ||||||
| Stock-based compensation expense | 5,300 | - | ||||||
| Tax Effect | - | (4,300 | ) | |||||
| Total | $ | 60,500 | $ | 22,400 | ||||
| 2025 Guidance Range | | |||||||
| 1 | Depreciation expense relates to the new Houston, Texas campus. | |||||||
| 2 | New campus and campus relocation costs relate to the following locations: | |||||||
| Nashville, Tennessee | ||||||||
| Levittown, Pennsylvania | ||||||||
| Houston, Texas | ||||||||
| Hicksville, New York | ||||||||
| 3 | New campus adjustment includes pre-opening costs, as well as net operating losses up to four quarters after the campus opens, or until the campus becomes profitable, whichever comes first. | |||||||
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340
EVC GROUP LLC
Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2755
Media Relations: Tom Gibson, 201-476-0322
FAQ
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