Lincoln Educational Services Reports Strong Results for Fourth Quarter and Full Year 2024; Provides Outlook for Continued Strong Growth in 2025

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]