Core Insights - The article compares two education stocks, Perdoceo Education (PRDO) and Lincoln Educational Services Corporation (LINC), to determine which offers better value for investors [1]. Valuation Metrics - PRDO has a forward P/E ratio of 12.39, significantly lower than LINC's forward P/E of 28.87, indicating that PRDO may be undervalued [5]. - The PEG ratio for PRDO is 0.83, while LINC's PEG ratio is 1.92, suggesting that PRDO has a more favorable earnings growth outlook relative to its price [5]. - PRDO's P/B ratio is 2.08 compared to LINC's P/B of 3.22, further supporting the notion that PRDO is more attractively priced [6]. Analyst Outlook - PRDO currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while LINC has a Zacks Rank of 4 (Sell), reflecting a less favorable outlook [3]. - The improving earnings outlook for PRDO positions it as a superior value option in the current market [7].

Company Overview - Lincoln Educational Services Corporation (LINC) is expected to report a year-over-year decline in earnings of 33.3%, with quarterly earnings projected at $0.04 per share, while revenues are anticipated to increase by 10.1% to $113.84 million [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for May 12, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2][3]. - The consensus EPS estimate has been revised down by 38.24% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Most Accurate Estimate for Lincoln Educational Services is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -225%, which suggests a challenging outlook for beating the consensus EPS estimate [11][10]. - The company currently holds a Zacks Rank of 4, further complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Lincoln Educational Services had an earnings surprise of +3.33%, having posted earnings of $0.31 per share against an expectation of $0.30 [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [13]. Industry Comparison - In comparison, Universal Technical Institute (UTI), another player in the Zacks Schools industry, is expected to report earnings of $0.12 per share, reflecting a year-over-year decline of 14.3%, with revenues projected at $197.04 million, up 7% [17]. - UTI has an Earnings ESP of 6.12% and a Zacks Rank of 3, indicating a higher likelihood of beating the consensus EPS estimate [18].

Company Overview - Lincoln Educational Services Corporation (LINC) shares increased by 5.2% to close at $16.11, supported by higher trading volume compared to normal sessions, despite a 3% loss over the past four weeks [1] - The company is benefiting from the growing preference for alternative education and training programs in the U.S., which is driving demand for its services [2] Financial Performance - LINC is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year increase of 16.7%, with revenues projected at $113.42 million, up 9.7% from the previous year [3] - However, the consensus EPS estimate has been revised down by 29.2% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Industry Context - Lincoln Educational Services is part of the Zacks Schools industry, which includes other companies like Laureate Education (LAUR), whose stock decreased by 1.4% to $18.71, with a return of -2.3% over the past month [4] - Laureate Education's EPS estimate for the upcoming report remains unchanged at -$0.08, representing a 14.3% decline from the previous year, and it currently holds a Zacks Rank of 1 (Strong Buy) [5]

Financial Flexibility and Growth Initiatives - Lincoln Educational Services Corporation has amended its secured credit agreement with Fifth Third Bank, increasing the aggregate principal borrowing amount from $40 million to $60 million, enhancing the company's financial flexibility [1] - The maturity date of the credit agreement has been extended through March 7, 2028, allowing for longer-term planning and investment [1] - The accordion feature of the agreement has been expanded from $20 million to $25 million, further strengthening the company's ability to pursue growth opportunities [2] Leadership Perspective - The President and CEO, Scott M. Shaw, emphasized that the amendment provides additional financial flexibility and ensures the company can achieve its long-term growth objectives, highlighting a focus on delivering value to stakeholders [3] Company Overview - Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education, addressing America's skills gap through various programs [3] - The company operates 21 campuses in 12 states under multiple brand names, including Lincoln College of Technology and Lincoln Technical Institute, and has been providing skilled technicians since 1946 [3]

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 ...

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]

Lincoln Educational Services Corporation (NASDAQ:LINC) Q4 2024 Earnings Conference Call February 24, 2025 10:00 AM ET Company Participants Michael Polyviou - Investor Relations Scott Shaw - President & Chief Executive Officer Brian Meyers - Chief Financial Officer Conference Call Participants Alex Paris - Barrington Research Steven Frankel - Rosenblatt Securities Eric Martinuzzi - Lake Street Operator Good day, and thank you for standing by. Welcome to the Q4 2024 Lincoln Educational Services earnings confe ...

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].