Company Overview - Legacy Education Inc. is a leading provider of career-focused education and training, primarily in the healthcare field, offering certificates and degrees in various disciplines such as nursing, medical technicians, and dental assisting [3] - The company was founded in 2009 and is nationally accredited, focusing on providing high-quality, accessible, and affordable education [3] - Legacy Education aims to grow its educational footprint through organic enrollment growth, the addition of new programs, and accretive acquisitions [3] Conference Participation - Legacy Education will participate in the 37th Annual ROTH Conference from March 16-18, 2025, at The Laguna Cliffs Marriott in Dana Point, California, which connects growth-oriented companies with investors and industry leaders [1] - The CEO, LeeAnn Rohmann, and CFO, Brandon Pope, will hold one-on-one and small group meetings with institutional investors during the event to provide an overview of the company [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 29.2% year-over-year to $13.6 million, driven by enrollment growth and expansion in high-demand health care programs [11][23] - Net income reached $1.4 million, reflecting an 8.5% growth year-over-year [23] - EBITDA was reported at $1.8 million, a 3.6% increase year-over-year, while adjusted EBITDA was $1.9 million, showing a 10.1% growth year-over-year [23] - For the six months ended December 31, 2024, revenue totaled $27.6 million, a 32.1% growth year-over-year, with net income at $3.5 million, representing a 47.9% increase year-over-year [24] Business Line Data and Key Metrics Changes - The student population grew by 44.8% year-over-year to 2,768 students, fueled by strong enrollments and the acquisition of Contra Costa Medical Career College [12][10] - New student starts increased by 3%, reflecting strong market demand and improved outreach strategies [11] Market Data and Key Metrics Changes - The company continues to expand its health care program offerings, including new programs such as Surgical Technology, Sterile Processing, Pharmacy Technician, and Dental Assistant [13] - The integration of Contra Costa Medical Career College added 14 new programs to the existing portfolio, enhancing market opportunities [18][45] Company Strategy and Development Direction - The company is focused on enrollment growth, expanding marketing reach, and launching additional health care and technical programs aligned with industry demand [26] - Legacy Education is exploring selective acquisitions to enhance its educational portfolio and geographic footprint [18][26] - The company remains confident in its standing despite regulatory scrutiny in the for-profit education sector, focusing on high-demand allied health programs [19][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the current administration's potential regulatory changes, indicating no anticipated challenges for funding current programs [32] - The company is witnessing robust demand for its programs, with leads performing to projections and an expectation for continued growth in Q3 [50][51] Other Important Information - The company successfully executed its emergency preparedness plan during the Los Angeles fires, transitioning students online with minimal disruption [14][15] - Cash reserves stand at $16.9 million, ensuring financial flexibility [24] Q&A Session Summary Question: Effects of the current administration on student support and funding - Management is monitoring discussions within the Department of Education and does not foresee challenges regarding funding for current programs [32] Question: Details on the Surgical Technology program - The Surgical Technology program is a new associate degree offering rolled out at the Salinas campus [35] Question: Insights on the M&A environment - The M&A pipeline remains strong, with many single-owner institutions looking for opportunities to exit the market [38] Question: Stronger than anticipated programs in December quarter - Cardiac Sonography, MRI, and Nursing programs showed particularly strong enrollment [43] Question: Clarification on the integration of Contra Costa Medical Career College - The acquisition added 14 programs to the existing offerings, enhancing the educational portfolio [45] Question: Changes in the acquisition pipeline post-administration change - There has been an increase in the acquisition pipeline as some institutions see this as an opportunistic time to exit [48] Question: Enrollment trends in January and February - Demand for programs remains robust, with leads performing well against projections [50][51]

Legacy Education (LGCY) Q2 2025 Earnings Call February 13, 2025 04:30 PM ET Company Participants Nicole Joseph - SVP of MarketingLeeAnn Rohmann - Founder, CEO & Chair of the BoardMatthew Berry - Finance consultantJeffrey Cohen - MD - Equity Research Conference Call Participants Mike Grondahl - Head of Equity sales, Trading & Research - Senior Research Analyst Operator Good day, and welcome to the Legacy Education, Inc. Second Quarter Fiscal twenty twenty five Earnings Conference Call. Today's call is being ...

Revenue Growth - Revenue increased by 29.2% to $13.6 million for Q2 FY 2025 compared to $10.5 million in Q2 FY 2024[5]. - Revenue for the six months ended December 31, 2024, was $27.6 million, a 32.1% increase from $20.9 million in the prior year[8]. Student Enrollment - Student enrollment reached 2,768, a 44.8% increase from 1,912 in the same quarter last year, supported by a 3.0% increase in new student starts[5][8]. - The acquisition of Contra Costa Medical Career College added approximately 389 students to the enrollment figures[4][8]. Profitability - Net income for Q2 FY 2025 was $1.4 million, with diluted earnings per share of $0.10, compared to $1.3 million and $0.13 in Q2 FY 2024[5][12]. - EBITDA for Q2 FY 2025 was $1.8 million, with adjusted EBITDA of $1.9 million, reflecting strong operational performance[5][12]. Expenses - Educational services expense rose by 35.3% to $7.5 million, driven by increased staffing and instructional costs to support higher enrollments[8]. - General and administrative expenses increased by 32.5% to $4.3 million, primarily due to higher marketing and professional fees[8]. Strategic Focus - The company is focused on scaling programs and investing in innovation to meet the rising demand for skilled healthcare professionals[4]. - Legacy Education aims to continue its growth strategy through organic enrollment growth and strategic acquisitions[13].

Core Insights - Legacy Education Inc. reported strong financial results for the second fiscal quarter ended December 31, 2024, with significant growth in revenue and student enrollment [3][5][10] Financial Highlights - Revenue for the quarter increased by 29.2% to approximately $13.6 million compared to $10.5 million in the same quarter of the previous year [5][6] - New student starts rose by 3.0%, contributing to a total student population of 2,768, which is a 44.8% increase from the prior year [5][6] - EBITDA for the quarter was $1.8 million, with adjusted EBITDA at $1.9 million [5][14] - Net income for the quarter was $1.4 million, translating to diluted earnings per share of $0.10 [5][10] Year-to-Date Financial Results - For the six months ended December 31, 2024, revenue grew by 32.1% to approximately $27.6 million from $20.9 million in the same period of the previous year [10] - New student starts increased by 16.2%, with total enrollment reaching 2,768 [10] - Year-to-date net income was $3.5 million, with diluted earnings per share of $0.29 [10][14] Operational Insights - The acquisition of Contra Costa Medical Career College (CCMCC) added 389 students and is expected to enhance the company's growth strategy [3][5] - The company is focused on meeting the rising demand for skilled healthcare professionals through strategic investments in programs and facilities [3][5] Balance Sheet Highlights - As of December 31, 2024, Legacy Education reported total assets of approximately $62.1 million and total stockholders' equity of approximately $36.4 million [11]

Acquisition and Regulatory Approvals - Legacy Education Inc. acquired Contra Costa Medical Career College for a total consideration of $6,133,079 in cash, a $400,000 promissory note, and 118,906 shares of common stock[157]. - The acquisition of Contra Costa Medical Career College is subject to regulatory approvals, including a temporary provisional program participation agreement allowing it to continue participating in Title IV Programs[160]. - Legacy Education submitted an application for a change of business organization to the California Bureau for Private Postsecondary Education on January 16, 2025, which was approved on January 31, 2025[162]. - Legacy Education is undergoing a change of ownership review by the Department of Education, which may affect its eligibility for Title IV Programs[161]. - Legacy Education's acquisition of Contra Costa Medical Career College was completed on December 18, 2024, following a previously announced asset purchase agreement[156]. - The company is subject to conditions imposed by the Department of Education due to the change of ownership, including restrictions on growth and financial reporting requirements[160]. - Future regulatory actions by the Department of Education may require changes to business practices and incur compliance costs[164]. Enrollment and Program Development - As of December 31, 2024, High Desert Medical College had 1,774 students enrolled, while Central Coast College had 448 students, and Integrity College of Health had 157 students[150][152][154]. - The company plans to introduce new programs, including an emergency medical technician (EMT) program at both High Desert Medical College and Integrity College of Health starting in October 2024[150][154]. - The company is in the process of obtaining approvals for additional programs at Central Coast College, including surgical technology and dental assisting, expected to begin in October 2024[152]. Financial Performance - Revenue for the three months ended December 31, 2024, was approximately $13.7 million, an increase of approximately $3.2 million or 29.2% compared to $10.5 million for the same period in 2023[190]. - Ending enrollment increased by 44.8% from 1,912 to 2,768, supported by a 3.0% increase in starts from 337 to 347 in the quarter compared to the prior year, along with the acquisition of CCMCC adding 389 students[190]. - Educational services expense was approximately $7.5 million for the three months ended December 31, 2024, an increase of approximately $2.0 million or 35.3% compared to $5.5 million for the same period in 2023[191]. - General and administrative expense was approximately $4.3 million for the three months ended December 31, 2024, an increase of approximately $1.1 million or 32.5% compared to $3.2 million for the same period in 2023[192]. - Net income for the three months ended December 31, 2024, was approximately $1.4 million, an increase of approximately $0.1 million or 8.5% compared to $1.3 million for the same period in 2023[194]. - Total costs and expenses for the three months ended December 31, 2024, were 87.8% of revenue, an increase of 3.3% compared to 84.5% for the same period in 2023[190]. - Operating income decreased to 12.2% for the three months ended December 31, 2024, down from 15.5% for the same period in 2023[190]. - Interest income increased to 2.1% for the three months ended December 31, 2024, compared to 1.7% for the same period in 2023[190]. - Income tax expense remained stable at approximately $0.5 million for both the three months ended December 31, 2024, and 2023[194]. - Revenue increased to approximately $27.6 million for the six months ended December 31, 2024, up by approximately $6.7 million or 32.1% from $20.9 million in the same period of 2023, driven by a 44.8% increase in ending enrollment[195]. - Educational services expense rose to approximately $14.7 million, an increase of approximately $3.5 million or 30.4% compared to $11.3 million in the prior year, primarily due to increased instructional and staffing costs[196]. - General and administrative expense increased to approximately $8.3 million, up by approximately $1.9 million or 29.2% from $6.4 million in the previous year, mainly due to higher marketing expenses and professional fees[197]. - Net income for the six months ended December 31, 2024, was approximately $3.5 million, reflecting an increase of approximately $1.1 million or 47.9% from $2.4 million in the same period of 2023[200]. Cash Flow and Expenditures - Cash and cash equivalents were approximately $16.9 million as of December 31, 2024, compared to $10.4 million as of June 30, 2024[201]. - Net cash provided by operating activities was approximately $3.8 million for the six months ended December 31, 2024, an increase of approximately $0.9 million from $2.9 million in the prior year[206]. - Net cash used in investing activities increased to approximately $6.6 million, primarily due to the acquisition of CCMCC for $6.1 million[207]. - Net cash provided by financing activities was approximately $9.2 million for the six months ended December 31, 2024, a significant increase from net cash used of approximately $0.3 million in the same period of 2023, attributed to proceeds from the initial public offering[208]. - Income tax expense increased to approximately $1.3 million, up by approximately $0.4 million or 45.9% from $0.9 million in the previous year, primarily due to increased income[199]. - Capital expenditures were approximately $0.4 million for the six months ended December 31, 2024, compared to $0.3 million in the same period of 2023[203].

Group 1 - Legacy Education Inc. (LGCY) is part of the Consumer Discretionary sector, which ranks 5 in the Zacks Sector Rank among 16 sector groups [2] - LGCY has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] - The Zacks Consensus Estimate for LGCY's full-year earnings has increased by 13.9% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - Year-to-date, LGCY has returned 5.9%, outperforming the Consumer Discretionary sector average return of 5.7% [4] - LGCY belongs to the Schools industry, which ranks 37 in the Zacks Industry Rank, and has slightly underperformed its industry with an average gain of 10.4% [6] - Another stock in the Consumer Discretionary sector, Lionsgate Studios Corp. (LION), has returned 12.5% year-to-date and has a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the use of a specific screening strategy to find stocks with strong fundamentals and positive momentum. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with sufficient fundamental strength to sustain their recent upward trends [3] - Legacy Education Inc. (LGCY) is highlighted as a suitable candidate from this screen, having experienced a price increase of 70.1% over the past 12 weeks, indicating strong investor interest [4] - LGCY has also seen a price increase of 15.3% over the last four weeks, suggesting that the upward trend is still intact [5] Group 2: Fundamental Analysis - LGCY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6] - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7] Group 3: Market Position and Future Outlook - LGCY is currently trading at 89.1% of its 52-week high-low range, indicating a potential breakout opportunity [5] - The article suggests that the price trend for LGCY is unlikely to reverse soon, and encourages investors to explore other stocks that meet similar criteria [8]

Company Overview - Legacy Education Inc. is a for-profit post-secondary education company founded in 2009, focused on career-oriented education primarily in the healthcare field [3] - The company offers certificates and degrees in various disciplines including nursing, medical technicians, dental assisting, and business administration [3] - Legacy Education aims to provide high-quality, accessible, and affordable education, with a commitment to organic enrollment growth, new program additions, and accretive acquisitions [3] Upcoming Financial Results - Legacy Education will host a conference call to discuss its second quarter financial results on February 13, 2025, at 4:30 p.m. Eastern time [1] - A news release detailing the financial results will be issued by 4:05 p.m. Eastern time on the same day [1] - Participants can access the live webcast through the investor relations section of the Legacy Education website and are encouraged to register in advance [2]

Core Insights - Legacy Education Inc. has successfully completed the acquisition of Contra Costa Medical Career College for a total purchase price of $8,000,000, which includes cash, a promissory note, and common stock issuance [1][2][3] - The acquisition expands Legacy Education's presence to six campuses in California, enhancing its ability to provide high-quality allied health education [1][2] - The acquisition aligns with Legacy Education's strategy to meet the growing demand for skilled healthcare professionals and improve access to education in the healthcare sector [2][3] Financial Details - The purchase price breakdown includes $6,133,079.84 paid at closing, a promissory note of $400,000, and the issuance of 118,906 shares of common stock valued at $1,000,000 [1] - The initial purchase price was set at $6,600,000, adjusted for estimated closing capital [1] Company Background - Legacy Education is a nationally accredited, for-profit post-secondary education company founded in 2009, focusing on career-oriented education primarily in the healthcare field [4] - The company offers a variety of programs, including nursing, medical technicians, and dental assisting, with a commitment to providing accessible and affordable education [4] - Legacy Education aims to grow its educational footprint through organic enrollment growth, new program additions, and strategic acquisitions [4]