Lincoln Tech Q2 2022 Earnings Report
Key Takeaways
Lincoln Educational Services Corporation reported a 2.1% increase in revenue to $82.1 million and a 4.0% increase in student starts for Q2 2022. The company is executing its five-year growth strategy, including developing a new campus in Atlanta and forming corporate partnerships. However, student start growth was lower than anticipated due to macro-operating factors and the transition to a centralized financial aid support system.
Revenue increased by 2.1% to $82.1 million compared to the prior year.
Student starts increased by 4.0% year-over-year.
A new campus in Atlanta, Georgia, is expected to open in Q3 2023, with projected annual revenue of $20 million.
The company repurchased 414,963 shares of common stock for approximately $2.5 million.
Lincoln Tech
Lincoln Tech
Lincoln Tech Revenue by Segment
Forward Guidance
Lincoln is updating its 2022 full year guidance based on six-month results and current expectations regarding a lower level of start growth than previously anticipated.
Positive Outlook
- Revenue in the range of $340 million to $350 million.
- Student start decline / growth in the range of -3% to 3%.
- Adjusted EBITDA in the range of $25 million to $30 million.
- Net income in the range of $10 million to $15 million.
- Capital expenditures in the range of $8.0 million to $11.0 million.