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Mar 31, 2021
Lincoln Tech Q1 2021 Earnings Report
Lincoln Tech reported significant growth in student starts and revenue, leading to improved operating and net income during the first quarter.
Key Takeaways
Lincoln Educational Services Corporation reported a strong first quarter with a 30.6% increase in new student starts and an 11.4% increase in revenue. The company also saw significant improvements in operating and net income, driven by the increase in student population and effective marketing initiatives. As a result, Lincoln raised its 2021 guidance for adjusted EBITDA and pre-tax income.
New student starts increased by 30.6%, representing approximately 800 students.
Ending student population grew by 15.5% to reach 12,646.
Revenue increased by 11.4% to $78.0 million.
Operating income was $6.0 million, a significant improvement from the $1.3 million operating loss in the prior year.
Lincoln Tech
Lincoln Tech
Forward Guidance
The Company is updating its outlook for 2021 as follows:
Positive Outlook
- Reaffirming annual revenue growth of 7% to 12% over 2020.
- Reaffirming full year student starts growth of 5% to 10% over 2020.
- Raising adjusted EBITDA by $3.0 million to between $32.0 million and $37.0 million as compared to $23.9 million in 2020.
- Raising pre-tax Income by $3.0 million to between $22.0 million and $27.0 million as compared to $13.5 million in 2020.
- Reaffirming capital expenditures of approximate $7.5 million.