Lincoln Educational Services(US:LINC)2025-11-10 20:10Revenue and Income - Revenue increased by $27.0 million, or 23.6%, to $141.4 million, with a 17.2% increase in average student population[7] - Net income for the quarter was $3.8 million, or $0.12 per share, compared to $4.0 million, or $0.13 per share in the prior year[7] - Adjusted EBITDA rose to $16.9 million, reflecting a 65.1% increase[7] - Revenue for the three months ended September 30, 2025, was $141,389,000, representing a 23.5% increase from $114,410,000 in the same period of 2024[23] - Operating income for the nine months ended September 30, 2025, was $12,577,000, compared to $4,248,000 for the same period in 2024, indicating a significant improvement[23] - Net income for the nine months ended September 30, 2025, was $7,298,000, up from $3,057,000 in 2024, reflecting a 138.5% increase[25] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,901,000, up from $10,236,000 in 2024, representing a 65.5% increase[30] - Adjusted net income for the three months ended September 30, 2025, was $6,338,000, compared to $4,091,000 in 2024, marking a 55.0% increase[30] Student Enrollment and Starts - Student starts grew by 3.2%, or 6.0% excluding the Transitional segment, with nine-month student starts up 12.0%, or 15.0% excluding the Transitional segment[7] - The total student population increased by 14.8%, or 17.2% excluding the Transitional segment[15] - The average population in Campus Operations increased by 19.6% to 16,763 students for the three months ended September 30, 2025, compared to 14,011 in 2024[32] - The total number of student starts in Campus Operations for the three months ended September 30, 2025, was 6,445, a 6.0% increase from 6,081 in 2024[32] - Total starts for the three months ended September 30, 2025, increased by 6.0% to 6,445 compared to 6,081 in 2024[34] - For the nine months ended September 30, 2025, total starts increased by 15.0% to 16,976 compared to 14,756 in 2024[34] - The company experienced a 23.4% increase in starts for Transportation and Skilled Trades for the nine months ended September 30, 2025[34] Guidance and Projections - The company raised its full-year 2025 revenue guidance to between $505 million and $510 million[13] - Adjusted EBITDA guidance for 2025 was increased to between $65 million and $67 million[13] - Net income for 2025 is projected at $18,000, with total adjusted net income expected to be $26,300[35] - Adjusted EBITDA guidance for 2025 is projected to be between $65,000 and $67,000[36] Corporate Expenses and Financial Position - Corporate expenses increased to $16.8 million, primarily due to higher salaries and benefits from workforce expansion[12] - Total current assets decreased to $77,332,000 as of September 30, 2025, from $111,252,000 at December 31, 2024[21] - Cash and cash equivalents decreased to $13,480,000 at the end of September 2025, down from $59,273,000 at the beginning of the period[25] - Total liabilities increased to $281,085,000 as of September 30, 2025, compared to $258,292,000 at December 31, 2024[21] - The company reported a provision for credit losses of $42,584,000 for the nine months ended September 30, 2025, compared to $40,823,000 in the same period of 2024[25] - Capital expenditures for the nine months ended September 30, 2025, were $68,127,000, significantly higher than $32,094,000 in 2024[25] - The corporate operating loss for the three months ended September 30, 2025, was $(16,976,000), compared to $(9,044,000) in 2024, indicating an increase in losses of 87.7%[32] Campus Developments - A new campus in Rowlett, Texas, is expected to open in early 2027, complementing the existing Grand Prairie campus[8] - The company completed relocations and program expansions at its Nashville and Levittown campuses during the quarter[4] - New campus and campus relocation costs are estimated at $7,700, including locations in Nashville, Levittown, Houston, and Hicksville[36] Population Trends - Average population for Transportation and Skilled Trades rose by 27.3% to 13,302, while Healthcare and Other Professions decreased by 2.9% to 3,461[34] - End of period population for total increased by 17.2% to 18,244 from 15,563 in the previous year[34] - The average population for total increased by 18.2% to 16,082 for the nine months ended September 30, 2025[34] - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 31,000,000, compared to 30,682,000 in 2024[23] Retained Earnings - The company reported an increase in retained earnings to $86,467,000 as of September 30, 2025, from $79,170,000 at December 31, 2024[21]