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Mar 31, 2020
Lincoln Tech Q1 2020 Earnings Report
Lincoln Tech experienced revenue growth and improved profitability despite COVID-19 challenges.
Key Takeaways
Lincoln Tech reported a strong start to 2020 with a 10.7% increase in first-quarter revenue, driven by a higher beginning student population. The company successfully transitioned to a distance learning platform and saw a decrease in net loss per share. However, full-year 2020 guidance was withdrawn due to uncertainties caused by the COVID-19 pandemic.
Revenue increased by 10.7% compared to the previous year.
Average student population rose by 6.6%.
Net loss decreased to $0.08 per share from $0.22 per share.
Company successfully transitioned to distance learning delivery platform.
Lincoln Tech
Lincoln Tech
Forward Guidance
Due to the COVID-19 pandemic and the complex public health and economic landscape, Lincoln is withdrawing its full-year 2020 guidance.
Positive Outlook
- Seven campuses are set to re-open by June 1st.
- April student starts rose by approximately 850, a 30% increase from April 2019.
- Accrediting bodies provided temporary solutions enabling students to continue studies and graduate on time.
- New practices to serve and educate students should enhance the student experience cost-efficiently.
- A grant of approximately $27.4 million was awarded to help ensure the continued education of its students.
Challenges Ahead
- Full year 2020 guidance withdrawn due to uncertainty created by COVID-19.
- Student starts declined 5.0% due to the onset of the COVID-19 pandemic in March.
- Limited visibility into the timing of all campuses’ reopening.
- COVID-19 pandemic and the complex and evolving public health and economic landscape
- Company incurred costs associated with COVID-19 of approximately $0.7 million in the quarter