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Sep 30, 2022

Lincoln Tech Q3 2022 Earnings Report

Reported third quarter results, which were in line with expectations, driven by higher revenue per student.

Key Takeaways

Lincoln Educational Services Corporation reported a 3.1% increase in revenue to $91.8 million for the third quarter of 2022, with net income of $3.5 million and earnings per share of $0.10. The revenue growth was attributed to a 5.9% increase in average revenue per student, offsetting a 2.7% decline in average student population. The company continued to invest in growth strategies, including a new Atlanta campus and centralizing the financial aid process.

Revenue increased by 3.1% to $91.8 million compared to the prior year.

Net income was $3.5 million, with earnings per share of $0.10.

The company repurchased 668,440 shares of common stock for $4.2 million during the quarter.

The company expects fourth quarter student starts to increase compared to last year.

Total Revenue
$91.8M
Previous year: $89.1M
+3.1%
EPS
$0.1
Previous year: $0.11
-9.1%
Average Enrollment
12.82K
Gross Profit
$51.9M
Previous year: $51M
+1.8%
Cash and Equivalents
$69.6M
Previous year: $47.2M
+47.7%
Free Cash Flow
$7.13M
Previous year: $14.9M
-52.3%
Total Assets
$291M
Previous year: $253M
+14.9%

Lincoln Tech

Lincoln Tech

Lincoln Tech Revenue by Segment

Forward Guidance

The Company is reiterating its 2022 full year guidance

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 million to $11 million.