Investor Presentation Three Months Ending March 31, 2023 2 Lincoln is a leading, technical, hands-on educator and trainer serving high demand industries (transportation, skilled trades and healthcare) facing this Skills Gap Skills Gap Leader Growth Profitability Balance sheet Increasing Efficiency 3 BRIDGING THE SKILLS GAP LINCOLN TECH. Statements in this presentation regarding Lincoln's business that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward- ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2023 condensed consolidated financial statements detail **$87.3 million revenue**, a **$0.1 million net loss**, and the impact of ASC 326 Q1 2023 vs Q1 2022 Key Financials (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | **Revenue** | $87,284 | $82,554 | | **Operating Loss** | $(1,116) | $(326) | | **Net (Loss) Income** | $(109) | $272 | | **Net Loss per Common Share** | $(0.00) | $(0.00) | Condensed Balance Sheet (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $107,587 | $114,135 | | **Total Assets** | $281,093 | $291,566 | | **Total Current Liabilities** | $54,574 | $55,020 | | **Total Liabilities** | $145,839 | $146,689 | | **Total Stockholders' Equity** | $135,254 | $144,877 | Condensed Cash Flow Statement (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(214) | $(14,367) | | **Net cash used in investing activities** | $(3,249) | $(1,045) | | **Net cash used in financing activities** | $(2,335) | $(2,296) | | **Net decrease in cash** | $(5,798) | $(17,708) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain segment reorganization, ASC 326 adoption, property sale, preferred stock conversion, and credit facility - Effective January 1, 2023, the company reorganized its business into two reportable segments: **'Campus Operations'** (ongoing core operations) and **'Transitional'** (campuses marked for closure) As of March 31, 2023, the only transitional campus is **Somerville, MA**, expected to be fully taught-out by **year-end 2023**[37](index=37&type=chunk)[88](index=88&type=chunk)[90](index=90&type=chunk) - The company adopted **ASC 326 (CECL)** for credit losses on **January 1, 2023**, resulting in a one-time opening balance sheet adjustment that increased the allowance for credit losses by approximately **$10.8 million** and decreased retained earnings by **$7.9 million**, after-tax[43](index=43&type=chunk)[108](index=108&type=chunk) - The sale of the **Nashville, TN** campus property for **$34.5 million** is now expected to close in the **second quarter of 2023**, classified as **'asset held for sale'** on the balance sheet[104](index=104&type=chunk)[105](index=105&type=chunk) - On **November 30, 2022**, all outstanding **Series A Preferred Stock** was mandatorily converted into **5,381,356 shares of common stock**, terminating all future preferred dividend obligations[51](index=51&type=chunk)[71](index=71&type=chunk) - The company's credit facility was terminated on **November 4, 2022**, with **no debt outstanding** as of March 31, 2023, but expects to negotiate a new credit facility in **Q2 2023** Existing letters of credit of **$4.0 million** remain outstanding and are cash collateralized[68](index=68&type=chunk)[166](index=166&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, noting **5.7% revenue growth** to **$87.3 million**, widened operating loss from **increased SG&A**, and solid liquidity [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2023 revenue grew **5.7%** to **$87.3 million**, but faster cost growth, especially **7.8% SG&A increase**, led to a **$1.1 million operating loss** Consolidated Results of Operations (in thousands) | Line Item | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $87,284 | $82,554 | 5.7% | | Educational services and facilities | $38,093 | $36,196 | 5.2% | | Selling, general and administrative | $50,307 | $46,684 | 7.8% | | **Operating Loss** | $(1,116) | $(326) | 242.3% | - The revenue increase was driven by a new hybrid teaching model, a **9.0% increase in average revenue per student** from tuition hikes, and a **6.4% increase in student starts**[134](index=134&type=chunk) - The increase in SG&A expense was primarily due to a **$2.7 million** rise in administrative costs (salaries, benefits, legal) and a **$0.6 million** increase in marketing investments[138](index=138&type=chunk)[139](index=139&type=chunk) [Segment Results](index=27&type=section&id=Segment%20Results) Segment analysis shows **Campus Operations** revenue up **6.9%** to **$86.4 million** and operating income up **17.4%**, while **Transitional** segment revenue declined **47.4%** Segment Performance (Q1 2023 vs Q1 2022) | Segment | Revenue (in thousands) | Operating Income (Loss) (in thousands) | Student Starts | | :--- | :--- | :--- | :--- | | **Campus Operations** | $86,352 (+6.9%) | $10,109 (+17.4%) | 3,440 (+6.4%) | | **Transitional** | $932 (-47.4%) | $(197) (vs. $(62)) | 0 (-100.0%) | | **Corporate** | N/A | $(11,028) (-24.2%) | N/A | - The Transitional segment consists of the **Somerville, MA** campus, which is planned to be fully taught-out with a total closure cost of approximately **$2.0 million** by the **end of 2023**[150](index=150&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains strong with **$44.5 million cash**, improved operating cash flow, and projected **11% capital expenditures** for the new Atlanta campus - Cash, cash equivalents, and restricted cash was **$44.5 million** at quarter-end The company also holds **$14.7 million** in short-term investments[153](index=153&type=chunk) - Net cash used in operating activities decreased to **$0.2 million** from **$14.4 million** YoY, mainly due to the timing of **$8.0 million** in Title IV funds received in January 2023[159](index=159&type=chunk) - Capital expenditures are expected to be approximately **11% of revenues** in 2023, a significant increase from **3% in 2022**, driven by the new **Atlanta campus** buildout and other program expansions[162](index=162&type=chunk) - During Q1 2023, the company repurchased **104,030 shares** for approximately **$0.5 million** under its share repurchase program[154](index=154&type=chunk) [Regulatory Updates](index=31&type=section&id=Regulatory%20Updates) Regulatory updates focus on the *Sweet v. Cardona* lawsuit, where stay requests were denied, posing a material risk of DOE recoupment, and new third-party servicer regulations - In the ***Sweet v. Cardona*** case, the company's motions to stay the settlement were **denied** by the **Ninth Circuit** and the **Supreme Court**, although the company intends to continue its appeal[169](index=169&type=chunk) - As a result of the stay denials, the **DOE** could automatically approve pending borrower defense applications and seek to recoup loan amounts from the company, which could have a **material adverse effect** on business and operations[170](index=170&type=chunk) - The **DOE** is considering new regulations related to **third-party servicers**, which may expand the definition and require the company to revise contracts and increase oversight of its vendors[172](index=172&type=chunk)[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk - The company is a **smaller reporting company** as defined by **Rule 12b-2 of the Exchange Act** and is not required to provide the information otherwise required by this item[175](index=175&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls and procedures were effective, with new internal controls implemented for ASC 326 and accounts payable - The CEO and CFO concluded that the company's disclosure controls and procedures are **adequate and effective** as of March 31, 2023[176](index=176&type=chunk) - There were **no material changes** to internal control over financial reporting, except for the implementation of new controls related to **ASC 326** and **accounts payable payment processing**[177](index=177&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) Details involvement in the ***Sweet v. Cardona*** lawsuit, where stay requests were denied, potentially leading to automatic loan discharges and DOE recoupment - The company is appealing the ***Sweet v. Cardona*** settlement, which involves **Borrower Defense to Repayment** claims[179](index=179&type=chunk) - Requests to stay the settlement pending appeal were **denied** by the U.S. Court of Appeals for the **Ninth Circuit** on March 29, 2023, and by the **Supreme Court** on April 13, 2023[179](index=179&type=chunk) - The denial of the stay requests means the **DOE** could automatically approve pending borrower defense applications and seek to recoup funds from the company, creating a **significant potential liability**[180](index=180&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Highlights material risk from the ***Sweet v. Cardona*** lawsuit, where stay denials could lead to automatic borrower defense grants and DOE recoupment actions - The primary risk highlighted is the **denial** of the company's motion to stay the judgment in the ***Sweet v. Cardona*** case by the **Ninth Circuit** and the **Supreme Court**[184](index=184&type=chunk)[185](index=185&type=chunk) - This could result in the **DOE automatically granting** all pending borrower defense applications submitted before June 22, 2022, and potentially seeking **recoupment** of all associated loan amounts from the company[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q1 2023 share repurchases of **104,030 shares** for **$0.5 million**, with the program extended and **$30.0 million** remaining authorized - On **February 27, 2023**, the Board of Directors **extended** the share repurchase program for an **additional 12 months** and authorized an **additional $10 million** for repurchases[188](index=188&type=chunk) Share Repurchases in Q1 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2023 | 0 | N/A | | February 2023 | 0 | N/A | | March 2023 | 104,030 | $5.34 | | **Total** | **104,030** | **$5.34** | - As of March 31, 2023, approximately **$30.0 million** remained authorized for future share repurchases[187](index=187&type=chunk)[189](index=189&type=chunk) [Defaults Upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[191](index=191&type=chunk) [Mine Safety Disclosures](index=35&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None[191](index=191&type=chunk) [Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company reports no other information for this item - None[193](index=193&type=chunk) [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate governance documents and CEO/CFO certifications required by Sarbanes-Oxley Act - The filing includes **certifications** from the **CEO and CFO** pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act**[192](index=192&type=chunk) - Financial statements formatted in **Inline Extensible Business Reporting Language (iXBRL)** are included as **Exhibit 101**[192](index=192&type=chunk)

Lincoln Educational Services Corporation (NASDAQ:LINC) Q1 2023 Earnings Conference Call May 8, 2023 10:00 AM ET Company Participants Michael Polyviou - Investor Relations Scott Shaw - President and Chief Executive Officer Brian Meyers - Chief Financial Officer Conference Call Participants Alex Paris - Barrington Research Steven Frankel - Rosenblatt Eric Martinuzzi - Lake Street Rajiv Sharma - B. Riley Operator Good day and thank you for standing by. Welcome to the Q1 2023 Lincoln Educational Services Earnin ...

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, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to LINCOLN EDUCATIONAL SERVICES CORPORATION (973) 736-9340 (Exact name of registrant as specified in its charter) (Registrant's telephone number, including area code) Secur ...

Lincoln Educational Services Corporation (NASDAQ:LINC) Q4 2022 Earnings Conference Call February 27, 2023 10:00 AM ET Company Participants Michael Polyviou - Investor Relations Scott Shaw - President and Chief Executive Officer Brian Meyers - Chief Financial Officer Conference Call Participants Steven Frankel - Rosenblatt Eric Martinuzzi - Lake Street Alex Paris - Barrington Research Raj Sharma - B. Riley Operator Good day, and thank you for standing by. Welcome to the Q4 2022 Lincoln Educational Services E ...

Lincoln Educational Services Corporation (NASDAQ:LINC) Q3 2022 Earnings Conference Call November 7, 2022 10:00 AM ET Company Participants Michael Polyviou - IR Scott Shaw - President and CEO Brian Meyers - CFO Conference Call Participants Alex Paris - Barrington Research Steve Frankel - Rosenblatt Securities Eric Martinuzzi - Lake Street Capital Markets Raj Sharma - B. Riley Operator Hello and thank you for standing by. Welcome to the Q3 2022 Lincoln Educational Services Earnings Call. At this time, all par ...

Investor Presentation □ LINCOLN TECH® BRIDGING THE SKILLS GAP LINCOLN TECH. Quarter Ended June 30, 2022 Safe Harbor Statement Statements in this presentation regarding Lincoln's business that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Fo ...

Lincoln Educational Services Corporation (NASDAQ:LINC) Q2 2022 Earnings Conference Call August 8, 2022 10:00 AM ET CompanyParticipants Michael Polyviou - IR Scott Shaw - President and CEO Brian Meyers - CFO Conference Call Participants Alex Paris - Barrington Research Eric Martinuzzi - Lake Street Capital Markets Rajiv Sharma - B. Riley Justin Putman - Talanta Investment Group Operator Good day, and thank you for standing by. Welcome to the Second Quarter 2022 Lincoln Educational Services Earnings Conferenc ...

[Form 10-Q Cover Page](index=1&type=section&id=Form%2010-Q%20Cover%20Page) This quarterly report (Form 10-Q) for the period ended June 30, 2022, details LINCOLN EDUCATIONAL SERVICES CORPORATION's financial status - This is a Quarterly Report (Form 10-Q) filed by LINCOLN EDUCATIONAL SERVICES CORPORATION for the quarterly period ended **June 30, 2022**[2](index=2&type=chunk) - The registrant's common stock (**LINC**) is registered on The NASDAQ Stock Market LLC[3](index=3&type=chunk) - As of August 8, 2022, there were **26,819,501 shares** of the registrant's common stock outstanding[4](index=4&type=chunk) [Index to Form 10-Q](index=2&type=section&id=Index%20to%20Form%2010-Q) This section provides a comprehensive table of contents for the Form 10-Q filing [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed consolidated financial statements and management's analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2022 | December 31, 2021 | | :--------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $285,416 | $295,299 | | Total Liabilities | $146,933 | $153,899 | | Total Stockholders' Equity | $126,501 | $129,418 | | Cash and cash equivalents | $66,985 | $83,307 | - Total assets decreased by **$9.9 million** from $295.3 million at December 31, 2021, to **$285.4 million** at June 30, 2022[8](index=8&type=chunk) - Total liabilities decreased by **$7.0 million** from $153.9 million at December 31, 2021, to **$146.9 million** at June 30, 2022[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance, including revenue, operating income, and net income Condensed Consolidated Statements of Operations (in thousands) | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | YoY Change | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | YoY Change | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Revenue | $82,142 | $80,464 | 2.1% | $164,697 | $158,461 | 3.9% | | Operating income | $396 | $3,452 | -88.5% | $70 | $9,472 | -99.3% | | Net income | $259 | $2,426 | -89.3% | $532 | $6,915 | -92.3% | | Net (loss) income per common share (Basic and diluted) | $(0.00) | $0.06 | -100% | $(0.00) | $0.19 | -100% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's net income and other comprehensive income, reflecting total changes in equity Condensed Consolidated Statements of Comprehensive Income (in thousands) | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $259 | $2,426 | $532 | $6,915 | | Other comprehensive income (loss) | $(10) | $(85) | $(40) | $(8) | | Comprehensive income | $249 | $2,341 | $492 | $6,907 | [Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders%27%20Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Convertible%20Preferred%20Stock%20and%20Stockholders%27%20Equity) This section outlines changes in the company's equity, including common stock, preferred stock, and treasury stock - Stockholders' equity decreased from **$129.4 million** at December 31, 2021, to **$126.5 million** at June 30, 2022[11](index=11&type=chunk)[21](index=21&type=chunk) - The company repurchased **414,963 shares** at a cost of approximately **$2.5 million** during the six months ended June 30, 2022, which were subsequently canceled[21](index=21&type=chunk)[91](index=91&type=chunk) - Treasury stock of **5,910,541 shares**, valued at **$82.9 million**, was canceled, resulting in a reduction of common stock and treasury stock[21](index=21&type=chunk)[91](index=91&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | YoY Change (in thousands) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------------------ | | Net cash (used in) provided by operating activities | $(9,992) | $1,067 | $(11,059) | | Net cash used in investing activities | $(1,192) | $(3,516) | $2,324 | | Net cash used in financing activities | $(5,138) | $(2,570) | $(2,568) | | Net decrease in cash and cash equivalents | $(16,322) | $(5,019) | $(11,303) | | Cash and cash equivalents — End of period | $66,985 | $33,007 | $33,978 | - Cash paid for interest decreased from **$566 thousand** in 2021 to **$118 thousand** in 2022, while cash paid for income taxes increased from **$652 thousand** to **$1,206 thousand** for the six months ended June 30[26](index=26&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information for the financial statements [Note 1. Description of Business and Basis of Presentation](index=10&type=section&id=Note%201.%20Description%20of%20Business%20and%20Basis%20of%20Presentation) This note describes the company's business, operating segments, and financial statement presentation - The Company operates **22 schools** in **14 states**, offering programs in automotive technology, skilled trades, healthcare services, hospitality services, and information technology[29](index=29&type=chunk) - The business is organized into two reportable segments: **Transportation and Skilled Trades**, and **Healthcare and Other Professions (HOPS)**[30](index=30&type=chunk) - The Company is currently assessing the impact of new accounting pronouncements, **ASU 2021-08 (Business Combinations)** and **ASU 2020-06 (Convertible Instruments)**, on its financial statements[34](index=34&type=chunk)[37](index=37&type=chunk) [Note 2. Net (Loss) Income Per Common Share](index=12&type=section&id=Note%202.%20Net%20(Loss)%20Income%20Per%20Common%20Share) This note details the calculation of basic and diluted net (loss) income per common share Net (Loss) Income Per Common Share (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net (loss) income allocated to common stockholders | $(45) | $1,630 | $(76) | $4,858 | | Basic and diluted net (loss) income per common share | $(0.00) | $0.06 | $(0.00) | $0.19 | - Potential common shares outstanding excluded from diluted EPS calculation due to anti-dilutive impact: **6,928,480 shares** for Q2 2022 and **6,981,247 shares** for YTD Q2 2022[46](index=46&type=chunk) [Note 3. Revenue Recognition](index=13&type=section&id=Note%203.%20Revenue%20Recognition) This note explains the company's policies for recognizing revenue from student contracts - Unearned tuition decreased from **$25.4 million** at December 31, 2021, to **$21.7 million** at June 30, 2022[49](index=49&type=chunk) - Revenue recognized for the six months ended June 30, 2022, that was included in the contract liability balance at the beginning of the year was **$24.4 million**[49](index=49&type=chunk) Timing of Revenue Recognition (in thousands) | Timing of Revenue Recognition | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :----------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Services transferred at a point in time | $4,973 | $6,348 | $9,763 | $11,200 | | Services transferred over time | $77,169 | $74,116 | $154,934 | $147,261 | | Total revenues | $82,142 | $80,464 | $164,697 | $158,461 | [Note 4. Leases](index=14&type=section&id=Note%204.%20Leases) This note details the company's operating lease assets, liabilities, and new lease agreements Lease Metrics (in thousands) | Lease Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :-------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Operating lease cost | $4,700 | $3,800 | $9,300 | $7,600 | | Cash paid for operating lease liabilities | $4,665 | $3,829 | $9,320 | $7,037 | - A new **12-year lease** for a school in Atlanta, Georgia, with total undiscounted payments of **$12.2 million**, is expected to commence in Q3 2022[53](index=53&type=chunk) Lease Term/Rate | Lease Term/Rate | June 30, 2022 | December 31, 2021 | | :---------------------- | :------------ | :---------------- | | Weighted-average remaining lease term | 11.35 years | 5.71 years | | Weighted-average discount rate | 7.36% | 10.93% | [Note 5. Goodwill and Long-Lived Assets](index=15&type=section&id=Note%205.%20Goodwill%20and%20Long-Lived%20Assets) This note provides information on goodwill, long-lived asset impairments, and property sales - Goodwill balance was **$14.5 million** as of June 30, 2022, and December 31, 2021, entirely attributable to the Transportation and Skilled Trades segment[61](index=61&type=chunk) - No long-lived asset impairments were recorded for the three or six months ended June 30, 2022 or 2021[59](index=59&type=chunk) - A **$0.7 million impairment** on the Suffield, Connecticut property was recorded on December 31, 2021, which was subsequently sold in Q2 2022 for net proceeds of **$2.4 million**, resulting in a **$0.2 million gain**[60](index=60&type=chunk) [Note 6. Long-Term Debt](index=16&type=section&id=Note%206.%20Long-Term%20Debt) This note details the company's long-term debt, Credit Facility, and compliance with covenants - **Zero debt outstanding** under the Credit Facility as of June 30, 2022, and December 31, 2021[68](index=68&type=chunk) - Letters of credit outstanding totaled **$4.0 million** as of June 30, 2022, and December 31, 2021[68](index=68&type=chunk) - The maturity date of the revolving loan was extended to **November 14, 2023**, through a third amendment to the Credit Agreement on August 5, 2022[68](index=68&type=chunk) [Note 7. Stockholders%27%20Equity](index=17&type=section&id=Note%207.%20Stockholders%27%20Equity) This note outlines changes in stockholders' equity, including dividends, share repurchases, and treasury stock - Preferred stock dividends of **$0.6 million** were paid in cash for the six months ended June 30, 2022[73](index=73&type=chunk) - A share repurchase program of up to **$30.0 million** was authorized on May 24, 2022, for twelve months[91](index=91&type=chunk) - By June 30, 2022, the company repurchased **414,963 shares** at a cost of approximately **$2.5 million** under the new program, with **$27.5 million** remaining authorized[91](index=91&type=chunk)[225](index=225&type=chunk) - The Board of Directors authorized the cancellation of **5,910,541 shares** of treasury stock, reducing treasury stock and common stock by **$82.9 million**[91](index=91&type=chunk) [Note 8. Income Taxes](index=21&type=section&id=Note%208.%20Income%20Taxes) This note presents the company's income tax provision or benefit and the effective tax rate Income Tax Provision (Benefit) (in thousands) | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Provision (benefit) for income taxes | $102 | $729 | $(539) | $1,975 | | Effective tax rate | 28.3% | 23.1% | 28.2% | N/A | [Note 9. Commitments and Contingencies](index=21&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note discloses the company's involvement in legal proceedings, investigations, and claims - The CFPB is assessing whether the company is subject to its supervisory authority regarding student credit extensions and has requested information[95](index=95&type=chunk) - The Massachusetts AGO issued a civil investigative demand to Lincoln Technical Institute in Somerville, MA, investigating possible unfair or deceptive practices related to fee refunds and disclosures[96](index=96&type=chunk) [Note 10. Segments](index=21&type=section&id=Note%2010.%20Segments) This note provides financial information for the company's two reportable segments Segment Performance (in thousands) | Segment | 3 Months Ended June 30, 2022 Revenue | 3 Months Ended June 30, 2021 Revenue | 3 Months Ended June 30, 2022 Operating Income | 3 Months Ended June 30, 2021 Operating Income | | :--------------------- | :----------------------------------- | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Transportation and Skilled Trades | $57,973 | $56,965 | $7,094 | $11,256 | | Healthcare and Other Professions | $24,169 | $23,499 | $1,609 | $2,962 | | Corporate | - | - | $(8,307) | $(10,766) | | Total | $82,142 | $80,464 | $396 | $3,452 | Segment Performance (in thousands) | Segment | 6 Months Ended June 30, 2022 Revenue | 6 Months Ended June 30, 2021 Revenue | 6 Months Ended June 30, 2022 Operating Income | 6 Months Ended June 30, 2021 Operating Income | | :--------------------- | :----------------------------------- | :----------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Transportation and Skilled Trades | $116,758 | $112,636 | $14,340 | $23,581 | | Healthcare and Other Professions | $47,939 | $45,825 | $2,916 | $5,911 | | Corporate | - | - | $(17,186) | $(20,020) | | Total | $164,697 | $158,461 | $70 | $9,472 | [Note 11. Fair Value](index=22&type=section&id=Note%2011.%20Fair%20Value) This note discusses the fair value of financial instruments and the interest rate swap - The interest rate swap, designated as a cash flow hedge for the Term Loan, was paid in full on **October 29, 2021**, upon repayment of the Term Loan[107](index=107&type=chunk) Interest Expense (in thousands) | Interest Expense | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Interest Rate Swap | $0 | $100 | $0 | $200 | [Note 12. COVID-19 Pandemic and CARES Act](index=23&type=section&id=Note%2012.%20COVID-19%20Pandemic%20and%20CARES%20Act) This note details the impact of COVID-19 on operations and funds received under the CARES Act - The company received **$27.4 million** from the HEERF under the CARES Act, fully distributed by September 30, 2021[112](index=112&type=chunk) - An additional **$24.4 million** was allocated under CRRSAA and ARPA, with **$14.8 million** distributed to students by June 30, 2022[114](index=114&type=chunk) - The company deferred **$2.3 million** in FICA payroll taxes, with **50% repaid** by January 3, 2022, and the remaining **50% due by January 3, 2023**[112](index=112&type=chunk) [Note 13. Property Sale Agreements](index=24&type=section&id=Note%2013.%20Property%20Sale%20Agreements) This note describes significant property sale agreements, including the Nashville campus and sale-leasebacks - Contract to sell Nashville campus property for **$34.5 million**, with an expected closing within the next fifteen months, and the property is included in assets held for sale[115](index=115&type=chunk)[116](index=116&type=chunk) - Sale-leaseback of Denver and Grand Prairie campuses closed on **October 29, 2021**, for **$46.5 million**[117](index=117&type=chunk) - The Denver and Grand Prairie sale-leaseback resulted in a **$22.5 million gain** on sale of assets and the recognition of **$40.1 million** in ROU assets and lease liabilities[117](index=117&type=chunk) [Item 2. Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, operations, and regulatory updates [General](index=25&type=section&id=General) This section provides a general overview of the company's business, educational offerings, and segments - The Company provides career-oriented post-secondary education through **22 schools** in **14 states**, with programs in automotive technology, skilled trades, healthcare, hospitality, and IT[122](index=122&type=chunk) - Business is organized into two reportable segments: **Transportation and Skilled Trades**, and **Healthcare and Other Professions (HOPS)**[123](index=123&type=chunk) [Critical Accounting Policies and Estimates](index=25&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section outlines the key accounting policies and estimates impacting financial reporting - Critical accounting policies and estimates include revenue recognition, allowance for doubtful accounts, goodwill, long-lived assets, stock-based compensation, derivative instruments, borrowings, ROU assets, lease cost, income taxes, and employee benefit plans[125](index=125&type=chunk) [Effect of Inflation](index=25&type=section&id=Effect%20of%20Inflation) This section discusses the impact of inflation on operations, expenses, and student behavior - Inflation has not had a material effect on operations, except for inflationary pressures on instructional expenses and student reluctance to incur additional debt or travel costs[126](index=126&type=chunk) [Results of Continuing Operations](index=26&type=section&id=Results%20of%20Continuing%20Operations) This section analyzes the company's consolidated financial performance, including revenue, expenses, and net income [Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021](index=26&type=section&id=Three%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202021) This section compares the company's financial performance for Q2 2022 to the prior year Consolidated Performance (in thousands) | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | YoY Change | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Revenue | $82,142 | $80,464 | 2.1% | | Educational services and facilities expense | $36,106 | $33,694 | 7.2% | | Selling, general and administrative expense | $45,835 | $43,318 | 5.8% | | Operating income | $396 | $3,452 | -88.5% | | Net income | $259 | $2,426 | -89.3% | - Revenue increase was driven by a **1.2% increase** in average student population[129](index=129&type=chunk) - Educational services and facilities expense increased due to higher instructional salaries (market conditions, staffing levels) and facility expenses (additional rent from sale-leaseback)[131](index=131&type=chunk)[132](index=132&type=chunk) - Selling, general and administrative expense increased due to additional bad debt expense (decreased repayment rates), higher medical expenses, and one-time growth initiative expenses[133](index=133&type=chunk) [Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021](index=27&type=section&id=Six%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202021) This section compares the company's financial performance for YTD Q2 2022 to the prior year Consolidated Performance (in thousands) | Metric | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | YoY Change | | :---------------------------------------- | :--------------------------- | :--------------------------- | :--------- | | Revenue | $164,697 | $158,461 | 3.9% | | Educational services and facilities expense | $72,302 | $66,037 | 9.5% | | Selling, general and administrative expense | $92,520 | $82,951 | 11.5% | | Operating income | $70 | $9,472 | -99.3% | | Net income | $532 | $6,915 | -92.3% | - Revenue increase was mainly due to a **2.8% increase** in average student population[138](index=138&type=chunk) - Educational services and facilities expense increased due to higher instructional salaries (market conditions, staffing, return to in-person instruction), increased consumables prices, and higher facility expenses (additional rent, maintenance)[140](index=140&type=chunk)[141](index=141&type=chunk) - Selling, general and administrative expense increased due to additional bad debt expense (lower repayment rates, prior year HEERF adjustment), higher medical expenses, stock compensation, and growth initiative expenses[142](index=142&type=chunk)[143](index=143&type=chunk) [Segment Results of Operations](index=28&type=section&id=Segment%20Results%20of%20Operations) This section analyzes the financial performance of the company's two operating segments [Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021](index=29&type=section&id=Three%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202021) This section compares segment-level financial performance for Q2 2022 to the prior year Segment Performance (in thousands) | Segment Performance | 3 Months Ended June 30, 2022 Revenue | 3 Months Ended June 30, 2021 Revenue | YoY % Change Revenue | 3 Months Ended June 30, 2022 Operating Income | 3 Months Ended June 30, 2021 Operating Income | YoY % Change Operating Income | | :--------------------------------- | :----------------------------------- | :----------------------------------- | :------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------ | | Transportation and Skilled Trades | $57,973 | $56,965 | 1.8% | $7,094 | $11,256 | -37.0% | | Healthcare and Other Professions | $24,169 | $23,499 | 2.9% | $1,609 | $2,962 | -45.7% | | Corporate | - | - | N/A | $(8,307) | $(10,766) | 22.8% | Student Metrics | Student Metrics | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | YoY % Change | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | | Total Starts | 3,852 | 3,703 | 4.0% | | Transportation and Skilled Trades Average Population | 8,315 | 8,014 | 3.8% | | Healthcare and Other Professions Average Population | 4,322 | 4,468 | -3.3% | - Corporate expenses decreased due to reduced incentive compensation and a **$0.2 million gain** from the sale of the Suffield, Connecticut property[158](index=158&type=chunk) [Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021](index=31&type=section&id=Six%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202021) This section compares segment-level financial performance for YTD Q2 2022 to the prior year Segment Performance (in thousands) | Segment Performance | 6 Months Ended June 30, 2022 Revenue | 6 Months Ended June 30, 2021 Revenue | YoY % Change Revenue | 6 Months Ended June 30, 2022 Operating Income | 6 Months Ended June 30, 2021 Operating Income | YoY % Change Operating Income | | :--------------------------------- | :----------------------------------- | :----------------------------------- | :------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------ | | Transportation and Skilled Trades | $116,758 | $112,636 | 3.7% | $14,340 | $23,581 | -39.2% | | Healthcare and Other Professions | $47,939 | $45,825 | 4.6% | $2,916 | $5,911 | -50.7% | | Corporate | - | - | N/A | $(17,186) | $(20,020) | 14.2% | Student Metrics | Student Metrics | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | YoY % Change | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | | Total Starts | 7,205 | 7,251 | -0.6% | | Transportation and Skilled Trades Average Population | 8,417 | 8,016 | 5.0% | | Healthcare and Other Professions Average Population | 4,344 | 4,394 | -1.1% | - Corporate expenses decreased due to reduced incentive compensation and a **$0.2 million gain** from the sale of the Suffield, Connecticut property, partially offset by increased stock-based compensation and severance[164](index=164&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash from all activities [Operating Activities](index=33&type=section&id=Operating%20Activities) This section analyzes cash flows generated from or used in the company's primary business operations - Net cash used in operating activities was **$10.0 million** for the six months ended June 30, 2022, compared to **$1.1 million provided** in the prior year, driven by working capital changes and decreased net earnings[170](index=170&type=chunk) [Investing Activities](index=33&type=section&id=Investing%20Activities) This section details cash flows related to the acquisition and disposal of long-term assets - Net cash used in investing activities decreased to **$1.2 million** for the six months ended June 30, 2022, from **$3.5 million** in the prior year[171](index=171&type=chunk) - The decrease in cash used was driven by **$2.4 million** in net proceeds from the sale of the former Suffield, Connecticut campus[171](index=171&type=chunk) - Capital expenditures are expected to approximate **3% of revenues** in 2022[175](index=175&type=chunk) [Financing Activities](index=34&type=section&id=Financing%20Activities) This section outlines cash flows from debt, equity, and other financing transactions - Net cash used in financing activities increased to **$5.1 million** for the six months ended June 30, 2022, from **$2.6 million** in the prior year[176](index=176&type=chunk) - The increase in cash used was driven by the implementation of a share repurchase program during Q2 2022[176](index=176&type=chunk) [Credit Facility](index=34&type=section&id=Credit%20Facility) This section provides an update on the company's credit facility, outstanding debt, and covenants - **Zero debt outstanding** under the Credit Facility as of June 30, 2022, and December 31, 2021[183](index=183&type=chunk) - The revolving loan maturity date was extended to **November 14, 2023**, via a third amendment on August 5, 2022[183](index=183&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2022[183](index=183&type=chunk) [Contractual Obligations](index=35&type=section&id=Contractual%20Obligations) This section details the company's financial commitments, including lease and loan obligations - No outstanding debt as of June 30, 2022[184](index=184&type=chunk) - Outstanding institutional loan principal commitments to active students totaled **$30.0 million** as of June 30, 2022[185](index=185&type=chunk) [Regulatory Updates](index=35&type=section&id=Regulatory%20Updates) This section provides an overview of recent and proposed regulatory changes impacting operations [Borrower Defense to Repayment Regulations](index=35&type=section&id=Borrower%20Defense%20to%20Repayment%20Regulations) This section discusses proposed DOE regulations and a class action settlement impacting student loan discharges - Proposed DOE regulations (July 13, 2022) would establish a new process for evaluating borrower applications for loan discharges, applying to all claims submitted or pending as of **July 1, 2023**, making it easier for borrowers to obtain discharges and for the DOE to recoup costs from institutions[188](index=188&type=chunk)[189](index=189&type=chunk) - A proposed class action settlement (June 22, 2022) could lead to automatic loan discharges and refunds for students at listed institutions, including Lincoln's, without individual adjudication of borrower defense claims[195](index=195&type=chunk)[198](index=198&type=chunk) - The company submitted a motion to intervene in the class action lawsuit to protect its interests, arguing against automatic discharges without adjudication and potential recoupment without due process[199](index=199&type=chunk) [The %2290%2F10%20Rule%22](index=37&type=section&id=The%20%2290%2F10%20Rule%22) This section explains changes to the 90/10 rule, including federal funds and its expected impact - ARPA amended the 90/10 rule to include other "Federal funds" (e.g., veterans' benefits, which were **~7% of 2021 cash revenues**) in the 90% calculation, expected to increase the company's 90/10 rule calculations[202](index=202&type=chunk) - Proposed regulations (July 28, 2022) confirm these changes apply to fiscal years ending on or after **January 1, 2023**, with final regulations expected by **November 1, 2022**, for a **July 1, 2023**, effective date[203](index=203&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) [Negotiated Rulemaking](index=38&type=section&id=Negotiated%20Rulemaking) This section outlines the DOE's rulemaking processes and anticipated timelines for new regulations - Proposed regulations on gainful employment, administrative capability, financial responsibility, eligibility certification, and ability to benefit are delayed until **April 2023**, with an earliest effective date of **July 1, 2024**[207](index=207&type=chunk) - Proposed regulations regarding the 90/10 rule and changes in ownership are expected to be published in **2022**, potentially taking effect **July 1, 2023**[208](index=208&type=chunk) [Compliance with Regulatory Standards and Effect of Regulatory Violations](index=39&type=section&id=Compliance%20with%20Regulatory%20Standards%20and%20Effect%20of%20Regulatory%20Violations) This section addresses the company's compliance with federal and state regulations and audit outcomes - Title IV Program compliance audits for 2020 at New Britain, Iselin, and Indianapolis institutions found alleged noncompliance, which were resolved, but serious findings were referred to a separate DOE office for potential adverse action[211](index=211&type=chunk) - An OIG audit of the Indianapolis institution regarding HEERF funds was resolved, with the DOE accepting responses to findings and imposing no liabilities or sanctions[212](index=212&type=chunk) [School Acquisitions](index=39&type=section&id=School%20Acquisitions) This section discusses the regulatory implications of school acquisitions, Title IV eligibility, and ownership rules - School acquisitions result in a change of ownership, suspending Title IV Program eligibility until recertification by the DOE, state education agencies, and accrediting commissions[214](index=214&type=chunk) - Proposed DOE regulations on changes in ownership, expected in **2022** and effective **July 1, 2023**, may expand requirements, potentially making future acquisitions more difficult[214](index=214&type=chunk) [Change of Control](index=40&type=section&id=Change%20of%20Control) This section explains how various transactions can trigger a change of control, impacting Title IV eligibility - A change of control can occur from corporate reorganizations or board changes, potentially affecting Title IV Program eligibility and discouraging stock transactions[215](index=215&type=chunk) - Proposed DOE regulations on ownership and control, expected in **2022** and effective **July 1, 2023**, could further influence future corporate decisions and stock market prices[215](index=215&type=chunk) [Seasonality](index=40&type=section&id=Seasonality) This section describes the seasonal fluctuations in the company's revenue, student population, and operating results - Revenue and operating results fluctuate seasonally, with lower student populations in Q1 and Q2, and larger class starts in Q3[216](index=216&type=chunk) - Expenses typically do not vary significantly with changes in student population and revenue[216](index=216&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) As a smaller reporting company, Lincoln Educational Services Corporation is not required to provide market risk disclosures - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and absence of material internal control changes - Disclosure controls and procedures were deemed adequate and effective as of **June 30, 2022**[218](index=218&type=chunk) - No material changes in internal control over financial reporting occurred during the most recently completed fiscal quarter[219](index=219&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional information on legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course lawsuits, investigations, and claims, including CFPB and Massachusetts AGO assessments - The CFPB is assessing whether the company is subject to its supervisory authority based on activities related to student credit extensions[221](index=221&type=chunk) - The Massachusetts AGO issued a civil investigative demand to Lincoln Technical Institute in Somerville, MA, investigating possible unfair or deceptive practices regarding fee refunds and disclosures[223](index=223&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company reported no changes to the Risk Factors previously disclosed in its Form 10-K - No changes to the Risk Factors disclosed in the company's Form 10-K[224](index=224&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, including authorization and shares repurchased - A share repurchase program of up to **$30.0 million** was authorized on **May 24, 2022**, for twelve months[225](index=225&type=chunk) Share Repurchase Program | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Value of Shares Purchased (approx.) | Remaining Authorized (approx.) | | :-------------------------- | :------------------------------- | :--------------------------- | :---------------------------------------- | :----------------------------- | | April 1, 2022 to June 30, 2022 | 414,963 | $6.12 | $2.5 million | $27.5 million | [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities[227](index=227&type=chunk) [Item 4. Mine Safety Disclosure](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) The company reported no mine safety disclosures - No mine safety disclosures[228](index=228&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section includes an update on the third amendment to the Credit Agreement, extending the revolving loan maturity - On **August 5, 2022**, the company extended the maturity date of its revolving loan through **November 14, 2023**, via a third amendment to its Credit Agreement[229](index=229&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including key corporate documents and financial statements - Key exhibits include amendments to the Certificate of Incorporation and Bylaws, the Second and Third Amendments to the Credit Agreement, CEO/CFO certifications, and financial statements in iXBRL format[230](index=230&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section contains the official signatures certifying the accuracy and completeness of the Form 10-Q - The report was signed on **August 8, 2022**, by Brian Meyers, Executive Vice President, Chief Financial Officer and Treasurer[235](index=235&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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) New Jersey 57- ...