Lincoln Educational Services Corporation (LINC) shares soared 5.2% in the last trading session to close at $16.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3% loss over the past four weeks.Lincoln shares have been gaining on the optimism surrounding on America’s growing preference for alternative education and training programs to the traditional four-year college education. The demand strength, paired with its Lincoln 10. ...

PARSIPPANY, N.J., March 11, 2025 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq: LINC) today announced an amendment to its secured credit agreement with Fifth Third Bank, National Association, increasing the aggregate principal borrowing amount from $40 million to $60 million. This increase enhances the Company’s financial flexibility, and the additional liquidity enables the Company to execute its growth initiatives to meet its long-term operating objectives. Furthermore, the maturity ...

Financial Data and Key Metrics Changes - For Q4 2024, total revenue grew by 16.4% to $119.4 million, driven by a 13.7% increase in average student population [39] - Adjusted EBITDA for Q4 increased by 22%, reaching $19.2 million, with an adjusted EBITDA margin of 16.1% [42] - Full-year revenue reached $440.1 million, reflecting a 16.4% year-over-year growth, with adjusted EBITDA increasing nearly 60% to $42.3 million [48][49] Business Line Data and Key Metrics Changes - Student starts grew by 9.6% in Q4, marking nine consecutive quarters of growth [40] - The Eastpointe campus contributed $4.4 million to revenue during Q4 and exceeded internal projections by approximately $6 million in revenue for the year [50] - The company is exiting lower ROI programs such as cosmetology and culinary, reallocating resources to higher-demand programs [26][102] Market Data and Key Metrics Changes - The company reported a 10% growth in student starts in transportation and skilled trades, while healthcare and other professions saw a 17% decline in starts [101] - The demand for skilled trades remains strong, with ongoing interest in programs related to auto, diesel, and welding [88] Company Strategy and Development Direction - The company aims to achieve approximately $550 million in revenue and $90 million in adjusted EBITDA by 2027, focusing on new campus development and program replication [10][54] - The Lincoln 10.0% hybrid teaching model is being implemented to enhance flexibility for students and improve operational efficiencies [12][14] - Three new campuses are set to open in 2025, with a focus on high-demand programs [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential due to increasing demand for skilled workers and a favorable regulatory environment under the new administration [32][84] - The company anticipates continued solid growth in 2025, with guidance for revenue between $480 million and $490 million [55][61] - Management highlighted the importance of maintaining a high ROI for students and the ongoing need for skilled trades in the workforce [34][119] Other Important Information - The company ended the year with nearly $60 million in cash and no debt, positioning itself well for future growth initiatives [46] - Capital expenditures for 2024 were approximately $64.1 million, with 70% allocated to growth initiatives [51] Q&A Session Summary Question: Updates on new campuses and programs - Management confirmed that Nashville is ahead of schedule, with classes already started, and Levittown is expected to open in early Q3 [74] Question: Impact of regulatory changes on operations - Management indicated that the new administration is likely to ease regulatory burdens, which should benefit the company [84] Question: Changes in skilled trades demand - Management noted consistent demand across skilled trades, but mentioned a softening in collision program demand [88] Question: Inclusion of Hicksville campus in revenue targets - Management confirmed that the Hicksville campus is included in the $550 million revenue target, expected to open in Q4 2026 [92][93] Question: Adjusted EBITDA margin projections - Management indicated that the adjusted EBITDA margin is expected to increase incrementally from 2025 to 2027 as new programs roll out [97]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File Number 000-51371 LINCOLN EDUCATIONAL SERVICES CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Revenue and Financial Performance - Revenue increased by 16.4% to $119.4 million in Q4 2024, with a full year revenue of $440.1 million, up 16.4% from $378.1 million[4][13] - Adjusted EBITDA for Q4 2024 was $19.2 million, with a full year adjusted EBITDA of $42.3 million, reflecting strong operational performance[4][5] - Operating income for the year ended December 31, 2024, was $15,177 million, down 54.5% from $33,358 million in 2023[23] - Net income for the three months ended December 31, 2024, was $6,834 million, slightly up from $6,792 million in the same period of 2023[23] - Adjusted EBITDA for the year ended December 31, 2024, was $42,312 million, a significant increase from $26,500 million in 2023[27] - Total revenue for Transitional operations was $1.70 million, reflecting a 20.6% decrease from the previous year[29] - Total operating income for Campus Operations was $63.56 million, a 2.3% increase from $48.03 million in 2023[30] Student Enrollment and Starts - Student starts grew by 9.6% in Q4 2024, with a full year increase of 15.2%, resulting in a total student population increase of 14.1%[4][5] - Average enrollment increased to 15,904 for the three months ended December 31, 2024, compared to 13,983 in the same period of 2023, representing a 13.8% growth[23] - Total starts for Campus Operations increased to 18,153 in 2024, up 16.9% from 15,526 in 2023, with Transportation and Skilled Trades starts rising by 23.2%[34] - Average population in Campus Operations reached 14,100 in 2024, reflecting a 13.4% growth compared to 12,436 in 2023[34] - The average population for Transitional operations decreased to 3,184, a 20.9% decline compared to the previous year[29] Cash and Liquidity - The company ended 2024 with nearly $60 million in cash, no debt, and total liquidity of nearly $100 million[2][4] - Total liquidity as of December 31, 2024, was $98.12 million, consisting of $59.27 million in cash and cash equivalents and $38.84 million in credit facilities[28] Future Guidance and Plans - The company anticipates achieving approximately $550 million in revenue and $90 million in adjusted EBITDA by 2027[5] - 2025 guidance includes revenue expectations between $480 million and $490 million, with adjusted EBITDA between $55 million and $60 million[14] - Adjusted EBITDA guidance for 2025 is projected between $55 million and $60 million, with a midpoint of $57.5 million[36] - Net income for 2025 is projected at $10.5 million, with total adjusted net income expected to be $20.8 million[36] - The company plans to incur new campus and relocation costs of approximately $8.8 million in 2025[36] - The company plans to replicate seven high-demand programs at existing campuses in 2025 after launching five such programs in 2024[3][5] - A new campus in Hicksville, New York, is set to open in May 2025, expanding the company's footprint in the New York City metro area[11] Asset and Equity Position - Total assets as of December 31, 2024, were $436,556 million, reflecting the company's growth strategy[23] - Current liabilities as of December 31, 2024, were $90,212 million, indicating a stable financial position[23] - Total stockholders' equity as of December 31, 2024, was $178,264 million, showing a solid capital structure[23] Operational Highlights - Campus Operations revenue increased to $117.67 million, a 17.2% increase compared to $100.37 million in the previous year[29] - Campus Operations revenue for the year ended December 31, 2024, was $432.97 million, a 17.9% increase from $367.23 million in 2023[30] - Operating income for Campus Operations was $25.30 million, a 17.1% increase from $21.60 million in the previous year[29] - New campus and campus relocation costs amounted to $8.79 million for the year, compared to $3.47 million in 2023[28] - The company reported a loss on the sale of Summerlin, Las Vegas, amounting to $1.18 million[28]

Core Insights - Lincoln Educational Services Corporation reported strong financial performance for Q4 and the full year 2024, achieving or exceeding all guidance metrics while investing in growth strategies [1][4][15] - The company is focused on providing high-value training to meet the rising demand for educational alternatives to traditional four-year degrees, which is helping to address workforce skills gaps [1][3] Financial Highlights for Q4 2024 - Revenue increased by 16.4% to $119.4 million, driven by a 9.6% growth in student starts and a 14.1% rise in the end-of-quarter student population [4][5] - Net income for the quarter was $6.8 million, with adjusted EBITDA reaching $19.2 million [4][25] - Cash flow from operations was $30.3 million, and the company ended the year with nearly $60 million in cash and no debt [4][25] Full Year 2024 Financial and Operational Highlights - Total revenue for 2024 grew by 16.4% to $440.1 million, with student starts increasing by 15.2% [4][15] - Adjusted EBITDA for the year was $42.3 million, and net income was $9.9 million [4][15] - The company maintained strong liquidity with nearly $100 million available [4][15] Recent Developments - The company completed the first phase of its hybrid teaching platform, Lincoln 10.0, enhancing operational efficiencies and student outcomes [2] - New campus openings are underway in Nashville, Levittown, Houston, and Hicksville, with Nashville's first welding class starting soon [2][3] - Demand for core programs is at an all-time high, with expectations to achieve approximately $550 million in revenue and $90 million in adjusted EBITDA by 2027 [3] Segment Results - Campus Operations Segment revenue increased by 17.2% to $117.7 million, with adjusted EBITDA rising by 18.8% to $30.7 million [7][36] - The Transitional Segment saw a revenue decrease of 20.6% to $1.7 million, attributed to the sale of the Summerlin, Las Vegas campus [9][15] 2025 Guidance - The company anticipates revenue between $480 million and $490 million for 2025, with adjusted EBITDA expected to be between $55 million and $60 million [16][44] - Student starts are projected to grow by 8% to 12% in 2025, despite a planned timing shift affecting approximately 2,300 starts [17][16]

Company Overview - Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education, offering programs in automotive technology, health sciences, skilled trades, business and information technology, and hospitality services [4]. - The company has been providing skilled technicians to the workforce since its inception in 1946 [4]. Operational Details - Lincoln currently operates 21 campuses across 12 states under four brands: Lincoln College of Technology, Lincoln Technical Institute, Lincoln Culinary Institute, and Nashville Auto Diesel College [5]. - The company is set to host a conference call to discuss its fourth quarter and year-end financial results on February 24, 2025, at 10:00 a.m. Eastern time [1]. Financial Communication - A news release outlining Lincoln's financial results will be issued before 9:30 a.m. Eastern time on the same day as the conference call [1]. - Participants can access the live webcast of the conference call through the investor relations section of Lincoln's website and are encouraged to register in advance [2].

Core Viewpoint - Lincoln Educational Services Corporation (LINC) has shown significant growth, with a 32.7% increase in stock price over the past three months, outperforming the Zacks Schools industry, the Zacks Consumer Discretionary sector, and the S&P 500 Index [1]. Financial Performance - The Zacks Consensus Estimate for LINC's 2025 earnings per share (EPS) has increased from 68 cents to 69 cents, indicating a year-over-year growth of 27.8%. The 2024 earnings estimates suggest a growth of 10.2% from the previous year. The company has exceeded earnings expectations in three of the last four quarters, with an average surprise of 226.8% [3]. - In the first nine months of 2024, LINC's revenues grew by 16.4% year-over-year to $320.7 million, while adjusted EBITDA reached $23.1 million, up from $10.8 million reported a year ago [16]. Growth Drivers - The hybrid teaching platform, Lincoln 10.0, is attracting interest due to its flexibility, allowing students to balance work and life while pursuing their education. The first phase of this platform was completed in Q3 2024, with plans to implement it in nursing programs [5]. - LINC is engaging in accretive corporate partnerships, such as new training programs with Hyundai and Genesis, aimed at enhancing students' skills relevant to the automotive industry. The company is also opening its third Tesla training center [6]. - Long-term growth targets set for 2027 include revenue growth to $550 million, adjusted EBITDA of $90 million with a margin of 16%, EPS of $1.35, net income of approximately $43 million, and cash from operations of about $65 million [7]. Student Engagement and Partnerships - The Lincoln 10.0 platform is expected to serve approximately 65% of students by the end of 2024, with plans to transition nursing programs by mid-2026, potentially reaching 80% of the student population [14]. - A five-year workforce development agreement with Container Maintenance Corporation is projected to generate around $6 million in revenue, highlighting the company's focus on corporate partnerships to drive student enrollment and revenue growth [15]. - In the first nine months of 2024, student starts increased by 16.6% year-over-year to 15,163, with the total student population rising by 13.3% [14].

Core Insights - Lincoln Educational Services Corporation has signed a lease for a new campus in Hicksville, New York, which will be its second campus in the state and the eleventh in the tri-state area, expected to commence operations in late 2026 [1][2][3] - The new 65,000 square-foot training center will focus on specialized career training in high-demand fields such as automotive, welding, HVAC, and electrical and electronics [2][3] - The demand for approximately 54,000 automotive technicians in New York by 2030 highlights the region's employment opportunities, aligning with the company's strategic growth plan [2][3] Company Overview - Lincoln Educational Services Corporation has been a leader in specialized technical training for over 75 years, providing career-oriented programs in various fields including automotive technology, health sciences, skilled trades, business and information technology, and hospitality services [4] - The company currently operates 22 campuses across 14 states, demonstrating its extensive reach and commitment to workforce development [4]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective momentum metrics, addressing the challenges in defining momentum [2] Group 2: Lincoln Educational Services Corporation (LINC) Analysis - Lincoln Educational Services Corporation currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - LINC shares have increased by 6.32% over the past week, outperforming the Zacks Schools industry, which rose by 2.38% during the same period [7] - Over the last quarter, LINC shares have gained 29.72%, and over the past year, they have increased by 67.36%, significantly outperforming the S&P 500's gains of 7.42% and 32.55%, respectively [8] Group 3: Trading Volume and Earnings Outlook - LINC's average 20-day trading volume is 132,505 shares, which serves as a bullish indicator when combined with rising stock prices [9] - In the past two months, one earnings estimate for LINC has increased, raising the consensus estimate from $0.51 to $0.54, with no downward revisions noted [11] - Given these positive indicators, LINC is positioned as a promising investment opportunity for near-term gains [12]