Lincoln Tech Q4 2021 Earnings Report
Key Takeaways
Lincoln Educational Services Corporation reported a 7.4% increase in revenue to $87.8 million for the fourth quarter of 2021, driven by a 6.3% increase in average student population. The company's net income was $24.0 million, and it ended the quarter with a net cash position of $83.3 million after sale-leaseback transactions and debt retirement.
Revenue increased by 7.4% to $87.8 million compared to the prior year.
Adjusted EBITDA increased by 13.1% over the prior year to $15.1 million.
Average student population increased by 6.3%, and the ending population increased by 6.9% or 850 students.
Net income was reported at $24.0 million.
Lincoln Tech
Lincoln Tech
Lincoln Tech Revenue by Segment
Forward Guidance
Lincoln provided specific operating and financial guidance for the coming year. The company will utilize its strong balance sheet to increase its level of investment in growth strategies and operating efficiencies.
Positive Outlook
- Revenue in the range of $350 million to $365 million
- Student start growth in the range of 5% to 10%
- Adjusted EBITDA in the range of $35.0 million to $40.0 million
- Net Income in the range of $17.0 million to $22.0 million
- Capital expenditures in the range of $7.0 million to $9.0 million
Challenges Ahead
- The 2022 guidance excludes the impact of the contemplated consummation of the sale and relocation of the Nashville, Tennessee campus, which is under contract, as well as additional costs associated with a new potential campus.
- The outlook is based on, among other things, current enrollment trends and does not account for the impact from continuing COVID-19 issues or any new COVID-19 variants.
- Approximately 45% of revenue will occur in the first half of the year.
- Operating expenses are expected to range in the low to mid $80 million level each quarter, with the third quarter’s expenses expected to reflect the high point of the year, consistent with the seasonality of the Company’s business.
- The effective tax rate for the year is projected to be 28.5%.