Lincoln Educational Services(LINC) - 2024 Q4 - Annual Results

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$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$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$367.23 million in 2023[30] - Operating income for Campus Operations was $25.30 million, a 17.1$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]