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Jun 30, 2023
Lincoln Tech Q2 2023 Earnings Report
Lincoln Tech reported strong second-quarter results, driven by a significant increase in student starts and revenue growth.
Key Takeaways
Lincoln Educational Services Corporation reported a strong second quarter with a 9.8% increase in revenue to $88.2 million and a 17.9% increase in new student starts. The company's transition to a hybrid instructional platform and centralization of the financial aid process contributed to these results. Lincoln is raising its outlook for revenues and earnings for the full year.
Revenue increased by 9.8% to $88.2 million, driven by the growth in student population and the roll-out of the hybrid teaching model.
New student starts increased by 17.9%, which resulted from increased investments in marketing and additional admissions initiatives.
The company completed the sale of its Nashville, Tennessee property, resulting in net proceeds of approximately $33.3 million and a gain of $30.9 million.
Lincoln is raising its outlook for revenues and earnings for the full year and refining outlook for start growth to the upper end of previous range.
Forward Guidance
Lincoln Educational Services is increasing its financial guidance for Revenue, Adjusted EBITDA and Adjusted Net Income. In addition, we have refined our expectation on Student Start growth to the higher end of the previous range, despite the shift of approximately 150 second-half student starts into 2024 as a result of delays in certain new program roll-outs.
Positive Outlook
- Revenue in the range of $360 million to $370 million
- Adjusted EBITDA in the range of $22 million to $26 million
- Adjusted Net income in the range of $10 million to $13 million
- Student start growth in the range of 6% to 10%
- The outlook for capital expenditures in the range of $35 million to $40 million remains unchanged.
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