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Jun 30, 2021

Lincoln Tech Q2 2021 Earnings Report

Lincoln Tech reported revenue growth and operating and net income improvement.

Key Takeaways

Lincoln Educational Services Corporation reported a 28.8% increase in revenue to $80.5 million for the second quarter of 2021. The company's operating income rose to $3.5 million, and net income improved to $2.4 million, or $0.06 per diluted share.

Revenue increased 28.8% to $80.5 million.

Student starts increased 8.0%.

Operating income increased to $3.5 million.

Net income improved to $2.4 million, or $0.06 per diluted share.

Total Revenue
$80.5M
Previous year: $62.5M
+28.8%
EPS
$0.06
Previous year: $0.02
+200.0%
Gross Profit
$46.8M
Previous year: $36.2M
+29.1%
Cash and Equivalents
$33M
Previous year: $23.3M
+41.4%
Free Cash Flow
$7.07M
Previous year: $16.6M
-57.5%
Total Assets
$245M
Previous year: $195M
+25.5%

Lincoln Tech

Lincoln Tech

Lincoln Tech Revenue by Segment

Forward Guidance

Lincoln is refining its 2021 full year guidance as a result of the company’s performance in the first half and management’s outlook for the remainder of the year.

Positive Outlook

  • Annual revenue growth of 9% to 12% over 2020, compared to the previous guidance of 7% to 12%.
  • Full year student starts growth of 5% to 10% over 2020, the same as previously communicated.
  • Adjusted EBITDA of between $34.0 million and $37.0 million, compared to the previous guidance of $32.0 million to $37.0 million and $23.9 million in 2020.
  • Pre-tax Income of between $24.0 million and $27.0 million, compared to the previous guidance of $22.0 million to $27.0 million and $13.5 million in 2020.
  • Capital expenditures of approximately $7.5 million.