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Sep 30, 2023

Lincoln Tech Q3 2023 Earnings Report

Revenue and student starts increased, driven by the continued roll out of the Lincoln 10.0 hybrid instructional platform and strategic growth plans.

Key Takeaways

Lincoln Educational Services Corporation reported a strong third quarter with a 10.5% increase in revenue to $99.5 million and a 7.1% increase in new student starts. The company's strategic growth plans include new campuses and the relocation and expansion of existing campuses. The company raised its outlook for the full year.

Revenue grew 10.5% to $99.5 million.

New student starts increased 7.1%.

Earnings per share of $0.07 was reported.

Total liquidity was $70.3 million with no debt outstanding.

Total Revenue
$99.6M
Previous year: $91.8M
+8.5%
EPS
$0.07
Previous year: $0.1
-30.0%
Average Enrollment
12.94K
Previous year: 12.82K
+0.9%
Gross Profit
$56.5M
Previous year: $51.9M
+8.9%
Cash and Equivalents
$41.7M
Previous year: $69.6M
-40.1%
Free Cash Flow
-$24.6M
Previous year: $7.13M
-444.5%
Total Assets
$316M
Previous year: $291M
+8.4%

Lincoln Tech

Lincoln Tech

Forward Guidance

Based on the financial results achieved during the first nine months of the year and the current outlook for the remainder of the year, the Company is increasing financial guidance for revenue, student starts and adjusted net income. In addition, the lower-end of the range for Adjusted EBITDA has increased, and expected investments in Capital Expenditures have been lowered.

Positive Outlook

  • Revenue in the range of $370 million to $375 million
  • Adjusted EBITDA in the range of $24 million to $26 million
  • Adjusted net income in the range of $12 million to $14 million
  • Student start growth in the range of 8% to 11%
  • Capital expenditures in the range of $30 million to $33 million