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Dec 31, 2020

Lincoln Tech Q4 2020 Earnings Report

Lincoln demonstrated strong financial performance with double-digit growth in student starts and revenue, leading to increased profitability.

Key Takeaways

Lincoln Educational Services Corporation reported a strong fourth quarter with a 15.0% increase in new student starts and a 10.7% increase in revenue. Net income was $46.0 million, which included a $35.9 million release of tax valuation allowance. The company's performance reflects its ability to adapt to the COVID-19 pandemic and continue providing essential career training.

New student starts increased by 15.0%.

Revenue grew by 10.7% to $81.8 million.

Net income reached $46.0 million, including a $35.9 million release of tax valuation allowance.

Operating income increased by 10.7% to $11.1 million.

Total Revenue
$81.8M
Previous year: $73.9M
+10.7%
EPS
$0.31
Previous year: $0.33
-6.1%
Gross Profit
$50.3M
Previous year: $43.4M
+16.1%
Cash and Equivalents
$38M
Previous year: $23.6M
+60.8%
Free Cash Flow
$11.2M
Previous year: $3.77M
+198.2%
Total Assets
$245M
Previous year: $195M
+25.9%

Lincoln Tech

Lincoln Tech

Lincoln Tech Revenue by Segment

Forward Guidance

The Company is providing the following outlook for the year 2021:

Positive Outlook

  • Annual revenue growth of 7% to 12% over 2020.
  • Annual student start growth of 5% to 10% over 2020.
  • Adjusted EBITDA of between $29.0 million and $34.0 million, which would represent a 22.0% to 43.0% growth over 2020 Adjusted EBITDA*
  • Income before taxes of between $19.0 million and $24.0 million, which would represent a 41.0% to 78.0% increase over 2020 income before taxes.
  • Capital expenditures are projected to be approximately $7.5 million.