Lincoln Educational Services(LINC) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Lincoln Educational Services achieved significant financial and operational growth in Q2 2025, with revenue up 13.2% (15.1% excluding transitional business), adjusted EBITDA surging 68.4%, and a shift from net loss to net income, leading to an upgraded full-year 2025 outlook Second Quarter 2025 Financial and Operational Highlights Lincoln Educational Services achieved significant financial and operational growth in Q2 2025, with revenue up 13.2% (15.1% excluding transitional business), adjusted EBITDA surging 68.4%, and a shift from net loss to net income, leading to an upgraded full-year 2025 outlook Second Quarter 2025 Financial Highlights (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | Notes | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $102.9 | +$13.6 | +13.2% | 15.1% growth excluding transitional business | | Adjusted EBITDA | $10.5 | $6.2 | +$4.3 | +68.4% | | | Net Income | $1.6 | ($0.7) | +$2.3 | N/A | Shifted from net loss to net income | | Full Year 2025 Guidance | Upgraded | - | - | - | Based on strong first-half performance and favorable operating trends | Second Quarter 2025 Operational Highlights (YoY) | Metric | Q2 2025 | Q2 2024 | Change Rate | Notes | | :--- | :--- | :--- | :--- | :--- | | Student Enrollments | 5,921* | 4,953 | +19.5% | 21.8% growth excluding transitional business | | Organic Student Enrollments | - | - | +18.6% | Excludes new programs in 2024/2025, discontinued programs, Paramus nursing program, East Point campus, and transitional business | | Ending Student Population | 17,120* | 14,481 | +18.2% | 20.6% growth excluding transitional business | Campus Development Activity The company made significant progress in campus development, with the Nashville campus relocation completed and exceeding expectations, the Houston campus receiving regulatory approval and commencing enrollment, and the Levittown campus relocation completed with new programs planned, all key drivers of the company's growth strategy - Nashville, TN campus relocation completed in March, with student enrollments and revenue exceeding expectations, and two new programs planned for October[5] - Houston, TX campus received regulatory approval in June, with student enrollments underway and classes expected to begin in early Q4[5] - Levittown, PA campus relocation completed, with existing automotive students transferred to the new site in August, and HVAC, electrical, and welding programs launching in September[5] CEO Commentary and Strategic Outlook CEO Scott Shaw emphasized the company's sustained operational and financial growth momentum in Q2, with significant increases in student enrollments and revenue, leading to an upgraded full-year outlook, driven by demand for high-value vocational training, effective strategy execution, successful Lincoln 10.0 hybrid learning, and improved marketing efficiency - The company achieved nearly 22% student enrollment growth and over 15% campus operations revenue growth in Q2, with consolidated adjusted EBITDA increasing by 68%[6] - Growth drivers include sustained demand for high-value vocational training, effective execution of growth strategies, successful implementation of the Lincoln 10.0 hybrid learning model, and continuous improvement in marketing efficiency[7] - Campus development is a key growth driver, with the newly opened East Point campus and relocated Nashville campus exceeding expectations; the Houston campus has begun enrollments, the Hicksville, New York campus is expected to open in Q4 2026, and more new campus development projects are planned[8] - The company believes it is well-positioned to meet unmet demand in up to a dozen additional markets and expects to surpass its long-term 2027 targets of approximately $550 million in revenue and $90 million in adjusted EBITDA set last year[9] Financial Performance Analysis This section provides a detailed analysis of the company's financial results for Q2 and the first six months of 2025, covering consolidated performance and segment-specific outcomes Second Quarter 2025 Financial Results (Consolidated) In Q2 2025, the company's consolidated revenue grew 13.2% to $116.5 million, primarily due to an increase in average student population, while educational services and facilities expenses as a percentage of revenue decreased, indicating improved operational efficiency Second Quarter 2025 Consolidated Financial Data (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $102.9 | +$13.6 | +13.2% | | Educational Services and Facilities Expenses | $46.8 | $45.6 | +$1.2 | +2.7% | | Educational Services and Facilities Expenses as % of Revenue | 40.2% | 44.3% | -4.1% | - | | Selling, General and Administrative Expenses | $67.1 | $57.9 | +$9.2 | +15.9% | | Cost per Student Enrollment | - | - | - | -14.0% | - Revenue growth is primarily attributed to a 16.0% increase in average student population, driven by higher beginning student population and strong student enrollment growth in Q1 and Q2 2025[10] - The increase in selling, general and administrative expenses was mainly driven by a $7.6 million (36.5%) increase in administrative expenses, due to higher medical claims, costs associated with expanding student population, and performance incentive compensation tied to improved financial results[11] Second Quarter 2025 Segment Results In Q2 2025, the Campus Operations segment achieved significant growth in both revenue and adjusted EBITDA, while the Transitional segment no longer generated revenue or expenses due to campus sale, and Corporate and Other expenses increased to support student population growth and strategic initiatives Campus Operations Segment The Campus Operations segment demonstrated strong performance in Q2 2025, with revenue increasing by 15.1% to $116.5 million and adjusted EBITDA surging by 56.4% to $25.4 million Campus Operations Segment Q2 2025 Performance (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116.5 | $101.2 | +$15.2 | +15.1% | | Adjusted EBITDA | $25.4 | $16.3 | +$9.1 | +56.4% | Transitional Segment The Transitional segment had no business activity in Q2 2025, as its sole Summerlin, Las Vegas campus was sold on January 1, 2025, which had contributed $1.7 million in revenue and incurred $2.2 million in operating expenses in the prior year - The Summerlin, Las Vegas campus was sold on January 1, 2025, resulting in no campus classification for the Transitional segment in Q2 2025[13] Transitional Segment Q2 2024 Performance | Metric | Q2 2024 (Million USD) | | :--- | :--- | | Revenue | $1.7 | | Operating Expenses | $2.2 | Corporate and Other Corporate and Other expenses increased to $16.4 million in Q2 2025 from $10.7 million in the prior year, primarily due to staff expansion supporting the growing student population and growth initiatives, along with higher medical claims and performance incentive compensation Corporate and Other Expenses (YoY) | Metric | Q2 2025 (Million USD) | Q2 2024 (Million USD) | Change (Million USD) | | :--- | :--- | :--- | :--- | | Corporate and Other Expenses | $16.4 | $10.7 | +$5.7 | - The increase in expenses was primarily driven by higher salaries and benefits due to staff expansion, increased medical claims, and performance incentive compensation tied to improved financial results[14] Six Months Ended June 30, 2025 Financial Results (Consolidated) For the six months ended June 30, 2025, total revenue increased by 13.4% to $234.0 million, with double-digit growth in both student enrollments and ending student population, adjusted EBITDA surging 65.4%, and a shift from net loss to net income, demonstrating strong overall financial performance in the first half Six Months Ended June 30, 2025 Consolidated Financial Data (YoY) | Metric | H1 2025 (Million USD) | H1 2024 (Million USD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | $234.0 | $206.3 | +13.4% | | Student Enrollments | 10,531* | 8,920 | +18.1% | | Ending Student Population | 17,120* | 14,481 | +18.2% | | Adjusted EBITDA | $21.1 | $12.8 | +65.4% | | Net Income | $3.5 | ($0.9) | N/A | - Student enrollments (excluding transitional business) increased by 21.4%, and ending student population (excluding transitional business) increased by 20.6%[16] Full Year 2025 Outlook The company provides its updated financial guidance for the full year 2025, reflecting confidence in future growth based on strong first-half performance and a positive outlook for the remainder of the year Updated Financial Guidance Based on strong first-half 2025 performance and the outlook for the second half, the company has upgraded its full-year 2025 financial guidance for revenue, adjusted EBITDA, net income, capital expenditures, and student enrollment growth, reflecting confidence in future growth Full Year 2025 Financial Guidance Update | Metric | Original Guidance (Million USD) | Updated Guidance (Million USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $485 - $495 | $490 - $500 | Upgraded | | Adjusted EBITDA | $58 - $63 | $60 - $65 | Upgraded | | Net Income | $10 - $15 | $13 - $18 | Upgraded | | Capital Expenditures | $70 - $75 | $75 - $80 | Upgraded | | Student Enrollment Growth | 10% - 14% | 12% - 15% | Upgraded | Guidance Exclusions and Adjustments To provide a clearer view of performance, the company's guidance excludes non-cash stock-based compensation, one-time non-recurring items, pre-opening costs for new campuses, and net operating losses for up to four quarters post-opening or until profitability - Guidance excludes non-cash stock-based compensation and one-time non-recurring items[18] - New campus guidance excludes pre-opening costs and net operating losses for up to four quarters post-opening or until profitability[18] - Adjustments for relocated campuses (e.g., Nashville and Levittown) include pre-opening and relocation costs until the end of the quarter in which the relocation is completed[18] - Adjustments for program replication and expansion include net operating losses prior to program launch[18] Operational Metrics and Student Data This section presents key operational metrics and student data, segmented by department and program, highlighting enrollment and population trends for Q2 and the first half of 2025 Selected Operating Metrics by Segment In Q2 and the first half of 2025, the Campus Operations segment achieved significant growth in revenue, operating income, student enrollments, and total student population, while the Transitional segment had no operational activity due to its sale, and overall adjusted student enrollments and ending student population showed strong growth Q2 2025 Operating Metrics by Segment (YoY) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | Revenue: | | | | | | Campus Operations | $116,474 | $101,233 | +15.1% | - | | Transitional | $0 | $1,681 | -100.0% | - | | Operating Income (Loss): | | | | | | Campus Operations | $19,310 | $10,141 | +90.4% | - | | Transitional | $0 | ($509) | +100.0% | - | | Corporate | ($16,432) | ($10,748) | -52.9% | - | | Enrollments: | | | | | | Campus Operations | 3,157 | 4,863 | -35.1% | +21.8% | | Transitional | 0 | 90 | -100.0% | -100.0% | | Ending Student Population: | | | | | | Campus Operations | 14,356 | 14,198 | +1.1% | +20.6% | | Transitional | 0 | 283 | -100.0% | -100.0% | H1 2025 Operating Metrics by Segment (YoY) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | Revenue: | | | | | | Campus Operations | $233,980 | $202,555 | +15.5% | - | | Transitional | $0 | $3,726 | -100.0% | - | | Operating Income (Loss): | | | | | | Campus Operations | $40,982 | $22,750 | +80.1% | - | | Transitional | $0 | ($796) | +100.0% | - | | Corporate | ($34,690) | ($23,529) | -47.4% | - | | Enrollments: | | | | | | Campus Operations | 7,767 | 8,675 | -10.5% | +21.4% | | Transitional | 0 | 245 | -100.0% | -100.0% | | Ending Student Population: | | | | | | Campus Operations | 14,356 | 14,198 | +1.1% | +20.6% | | Transitional | 0 | 283 | -100.0% | -100.0% | Student Population by Program (Campus Operations Segment) Within the Campus Operations segment, Transportation and Skilled Trades programs showed strong student enrollment and total student population growth in both Q2 and the first half of 2025, especially in adjusted data, while Healthcare and Other Professional programs experienced declines Q2 2025 Student Data by Program (YoY) | Metric | Q2 2025 | Q2 2024 | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | Enrollments: | | | | | | Transportation and Skilled Trades | 2,350 | 3,648 | -35.6% | +31.6% | | Healthcare and Other Professional | 807 | 1,215 | -33.6% | -7.9% | | Average Student Population: | | | | | | Transportation and Skilled Trades | 11,920 | 9,741 | +22.4% | +26.6% | | Healthcare and Other Professional | 3,634 | 3,751 | -3.1% | -1.8% | | Ending Student Population: | | | | | | Transportation and Skilled Trades | 11,050 | 10,482 | +5.4% | +28.8% | | Healthcare and Other Professional | 3,306 | 3,716 | -11.0% | -2.6% | H1 2025 Student Data by Program (YoY) | Metric | H1 2025 | H1 2024 | Change Rate | Adjusted Change Rate* | | :--- | :--- | :--- | :--- | :--- | | Enrollments: | | | | | | Transportation and Skilled Trades | 5,901 | 6,330 | -6.8% | +32.0% | | Healthcare and Other Professional | 1,866 | 2,345 | -20.4% | -7.1% | | Average Student Population: | | | | | | Transportation and Skilled Trades | 11,807 | 9,642 | +22.5% | +24.6% | | Healthcare and Other Professional | 3,704 | 3,759 | -1.5% | -0.8% | | Ending Student Population: | | | | | | Transportation and Skilled Trades | 11,050 | 10,482 | +5.4% | +28.8% | | Healthcare and Other Professional | 3,306 | 3,716 | -11.0% | -2.6% | Non-GAAP Financial Measures This section defines and reconciles the company's non-GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, and Total Liquidity, providing supplementary insights into business performance and financial health Definitions of Non-GAAP Measures The company utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, and Total Liquidity to assess business performance, strategic investment capacity, and ability to meet capital expenditure and debt service needs, complementing but not replacing GAAP financial statements - EBITDA is defined as income (loss) before net interest expense (interest income), provision (benefit) for income taxes, depreciation, and amortization[32] - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation expense and adjustments for items not considered part of the company's normal recurring operations[32] - Adjusted Net Income is defined as net income adjusted for items not considered part of the company's normal recurring operations[32] - Total Liquidity is defined as the company's cash and cash equivalents and available borrowings under its credit facility[32] Reconciliation of Net Income to EBITDA and Adjusted EBITDA The company provides a reconciliation of net income to EBITDA and Adjusted EBITDA for Q2 and the first half of 2025, demonstrating significant Adjusted EBITDA growth by excluding non-recurring items such as interest, taxes, depreciation, amortization, stock-based compensation, new campus/relocation costs, program expansion, and loss on asset sales Q2 2025 Net Income to Adjusted EBITDA Reconciliation (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $1,554 | ($682) | | EBITDA | $7,588 | $2,207 | | Stock-based compensation expense | $1,343 | $1,045 | | New Campus and Campus Relocation Costs | $1,342 | $2,029 | | Program Expansion | $238 | $365 | | Loss on Asset Sale | $0 | $594 | | Adjusted EBITDA | $10,511 | $6,240 | H1 2025 Net Income to Adjusted EBITDA Reconciliation (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $3,499 | ($896) | | EBITDA | $14,764 | $4,713 | | Stock-based compensation expense | $2,548 | $2,103 | | New Campus and Campus Relocation Costs | $3,226 | $4,831 | | Program Expansion | $610 | $454 | | Loss on Asset Sale | $0 | $594 | | Severance and Other One-time Costs | $0 | $89 | | Adjusted EBITDA | $21,148 | $12,784 | Reconciliation of Adjusted Net Income and Total Liquidity The company provides a reconciliation of Adjusted Net Income for Q2 and the first half of 2025, presenting a more comparable view of profitability by excluding non-recurring adjustments like new campus/relocation costs and program expansion, along with their income tax effects, and reports total liquidity of $63.7 million as of June 30, 2025 Q2 2025 Adjusted Net Income Reconciliation (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $1,554 | ($682) | | New Campus and Campus Relocation Costs | $1,342 | $2,623 | | East Point, Georgia Depreciation | $0 | $371 | | Program Expansion | $238 | $365 | | Income Tax Impact | ($474) | ($1,008) | | Adjusted Net Income (Loss) | $2,660 | $1,669 | H1 2025 Adjusted Net Income Reconciliation (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Income (Loss) | $3,499 | ($896) | | New Campus and Campus Relocation Costs | $3,226 | $5,425 | | Program Expansion | $610 | $454 | | East Point, Georgia Depreciation | $0 | $511 | | Severance and Other One-time Costs | $0 | $89 | | Income Tax Impact | ($1,152) | ($1,944) | | Adjusted Net Income (Loss) | $6,183 | $3,639 | Total Liquidity (As of June 30, 2025) | Metric | Amount (Thousand USD) | | :--- | :--- | | Cash and Cash Equivalents | $16,701 | | Credit Facility | $47,000 | | Total Liquidity | $63,701 | Reconciliation of 2025 Guidance The company provides a midpoint reconciliation of its 2025 guidance for net income to Adjusted EBITDA and Adjusted Net Income, with adjustments including interest, taxes, depreciation, amortization, new campus/relocation costs, program expansion, other one-time items, and stock-based compensation expenses, along with their tax impacts 2025 Guidance Midpoint Reconciliation (Thousand USD) | Metric | Adjusted EBITDA (Thousand USD) | Net Income (Thousand USD) | | :--- | :--- | :--- | | Net Income | $15,500 | $15,500 | | Interest Expense, Net | $3,200 | - | | Provision for Income Taxes | $6,500 | - | | Depreciation and Amortization | $20,800 | $400 | | EBITDA | $46,000 | - | | New Campus and Campus Relocation Costs | $7,500 | $7,500 | | Program Expansion | $2,100 | $2,100 | | Other One-time Items | $1,500 | $1,500 | | Stock-based compensation expense | $5,400 | - | | Tax Impact | - | ($3,500) | | Total | $62,500 | $23,500 | - New campus and campus relocation costs involve locations such as Nashville, Tennessee; Levittown, Pennsylvania; Houston, Texas; and Hicksville, New York[41] - New campus adjustments include pre-opening costs and net operating losses for up to four quarters post-opening or until profitability[41] Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive income (loss), and cash flows, for Q2 and the first half of 2025 Condensed Consolidated Balance Sheets As of June 30, 2025, the company's total assets increased to $447.3 million from December 31, 2024, with a decrease in cash and cash equivalents offset by increases in accounts receivable, inventory, and net property, plant, and equipment, while total liabilities and stockholders' equity also rose Condensed Consolidated Balance Sheets Key Data (Thousand USD) | Metric | June 30, 2025 (Thousand USD) | December 31, 2024 (Thousand USD) | | :--- | :--- | :--- | | Assets: | | | | Cash and Cash Equivalents | $16,701 | $59,273 | | Accounts Receivable, Net | $47,256 | $42,983 | | Inventory | $4,504 | $3,053 | | Property, Equipment and Facilities, Net | $149,142 | $103,533 | | Total Assets | $447,321 | $436,556 | | Liabilities and Stockholders' Equity: | | | | Unearned Tuition | $28,083 | $30,631 | | Long-term Debt | $13,000 | $0 | | Total Liabilities | $266,643 | $258,292 | | Total Stockholders' Equity | $180,678 | $178,264 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) In Q2 and the first half of 2025, the company reported increased revenue and a shift from net loss to net income compared to the prior year, with significant improvement in operating income, despite an increase in interest expense Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Key Data (Thousand USD) | Metric | Q2 2025 (Thousand USD) | Q2 2024 (Thousand USD) | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $116,474 | $102,914 | $233,980 | $206,281 | | Operating Income (Loss) | $2,878 | ($1,116) | $6,292 | ($1,575) | | Interest Income | $11 | $638 | $125 | $1,336 | | Interest Expense | ($813) | ($667) | ($1,514) | ($1,234) | | Net Income (Loss) | $1,554 | ($682) | $3,499 | ($896) | | Basic Net Income (Loss) Per Share | $0.05 | ($0.02) | $0.11 | ($0.03) | | Diluted Net Income (Loss) Per Share | $0.05 | ($0.02) | $0.11 | ($0.03) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, the company experienced increased net cash used in operating activities and a significant rise in net cash used in investing activities, primarily due to higher capital expenditures, while net cash provided by financing activities turned positive, mainly from borrowings Condensed Consolidated Statements of Cash Flows Key Data (Thousand USD) | Metric | H1 2025 (Thousand USD) | H1 2024 (Thousand USD) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($8,079) | ($6,599) | | Net Cash Used in Investing Activities | ($45,772) | ($3,007) | | Net Cash Provided by (Used in) Financing Activities | $11,279 | ($3,676) | | Net Decrease in Cash and Cash Equivalents | ($42,572) | ($13,282) | | Cash and Cash Equivalents at End of Period | $16,701 | $66,987 | - Capital expenditures significantly increased from $12.725 million in H1 2024 to $46.276 million in H1 2025[29] - Net cash provided by financing activities turned positive, primarily due to $25.0 million in proceeds from borrowings[29] Additional Information This section provides background on Lincoln Educational Services, outlines forward-looking statements, and details conference call and contact information About Lincoln Educational Services Corporation Lincoln Educational Services Corporation is a leading provider of career-oriented post-secondary education, dedicated to addressing America's skills gap by offering vocational programs in skilled trades, automotive, health sciences, and information technology across 21 campuses in 12 states since its founding in 1946 - The company is a provider of career-oriented post-secondary education, aiming to address America's skills gap[21] - It offers programs in four main areas of study: skilled trades, automotive, health sciences, and information technology[21] - Founded in 1946, it currently operates 21 campuses in 12 states under brands including Lincoln Technical Institute, Lincoln College of Technology, and Nashville Auto Diesel College[21] Forward-Looking Statements This press release contains forward-looking statements based on current information and management's good faith beliefs about future events, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, and the company explicitly disclaims any obligation to publicly revise or update these statements - Forward-looking statements are based on current information and management's good faith beliefs about future events but are subject to various risks and uncertainties[23] - Risk factors include, but are not limited to: impact of epidemics, failure to comply with regulatory frameworks, success of updating and expanding curricula, cybersecurity risks, changes in laws and regulations, 90/10 rule compliance, risks of new campus openings, industry competition, and macroeconomic conditions[23] - The company disclaims any obligation to publicly revise or update any forward-looking statements[23] Conference Call Information Lincoln Educational Services held a conference call on August 11, 2025, at 10:00 AM ET to discuss Q2 results, with investors able to access the webcast via the investor overview section of the company's website or register for dial-in numbers and a personalized PIN - The conference call was held on August 11, 2025, at 10:00 AM ET[19] - The webcast is accessible via the investor overview section of the company's website at http://www.lincolntech.edu[19](index=19&type=chunk) - Participants need to register 15 minutes in advance to receive dial-in numbers and a personalized PIN[19] Contact Information Investors and media can contact Brian Meyers, CFO of Lincoln Educational Services, or investor relations and media representatives from EVC Group LLC for further information - CFO: Brian Meyers, 973-736-9340[42] - Investor Relations: Michael Polyviou (EVC Group LLC), mpolyviou@evcgroup.com, 732-933-2755[42] - Media Relations: Tom Gibson (EVC Group LLC), 201-476-0322[42]