Core Insights - The Lowe's Foundation announced 12 new Gable Grants aimed at addressing the skilled trades worker shortage in the U.S. [1][4] - The foundation has invested $43 million since the program's launch in 2023, with a total commitment of $50 million to prepare 50,000 trades professionals by 2028 [4][18] - The skilled labor gap results in a $10 billion annual economic loss in the housing industry, highlighting the urgency of these initiatives [3] Summary by Relevant Categories Funding and Grants - The new Gable Grants expand the network to 60 organizations, providing scalable pathways into high-demand trades careers [1] - Ivy Tech Community College is receiving its second Gable Grant to enhance its HVAC training and launch a new Building and Property Maintenance Technician program [2][11] - The grants will support various community and technical colleges, including Blue Ridge Community College and Cape Fear Community College, to expand training programs in advanced manufacturing, plumbing, and construction [5][6] Training Programs and Initiatives - Texas State Technical College will establish a 130,000 square-foot Construction Technology Center and offer tool stipends to eligible students, boasting an 87% job placement rate [2][16] - Community College of Rhode Island will expand its Electrical Apprenticeship and Ready to Build programs, establishing new lab spaces to increase enrollment [7] - Germanna Community College plans to deploy mobile training units to rural areas and has trained over 3,500 students in 2025, the highest among Virginia schools [10] Industry Impact - The Gable Grants are part of a broader effort to revitalize the skilled trades industry, with a focus on recruiting, training, and employing skilled workers [4] - Florida State College at Jacksonville will enhance access to training for electricians and construction professionals, supporting large construction projects in the area [8] - J.F. Ingram State Technical College will provide electrical training to Alabama's incarcerated population, promoting reentry and long-term career pathways [12]

Financial Data and Key Metrics Changes - Revenue increased by 16% to $117.5 million, marking the eighth consecutive quarter of double-digit revenue growth [24] - Adjusted EBITDA grew by 56% to $10.6 million, with an adjusted EBITDA margin rising to 9% from 7% in the prior year [31] - Net income was $1.9 million or $0.06 per diluted share, while adjusted net income was $3.5 million or $0.11 per diluted share [32] Business Line Data and Key Metrics Changes - Student starts at 21 campuses grew by 20% over the prior period, continuing a trend of double-digit growth for six consecutive quarters [11] - Transportation and Skilled Trades programs saw a robust 32.4% increase in stock growth, while healthcare and other professions experienced a 6.3% decline due to program optimizations [25][26] Market Data and Key Metrics Changes - The company is successfully meeting the growing demand for educational alternatives to traditional four-year colleges, with a focus on closing the workforce skills gap [12][19] - The East Point campus in Atlanta opened in March 2024 and contributed over $4 million in revenue during Q1 2025, becoming profitable ahead of schedule [12][101] Company Strategy and Development Direction - The company is focused on expanding its network of schools by replicating in-demand programs and opening new campuses in underserved markets [17] - The Lincoln ten point zero hybrid teaching model has provided increased flexibility for students, contributing to higher graduation rates and attracting corporate partners [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately $550 million in organically generated revenue and $90 million in adjusted EBITDA by 2027 [9] - The company anticipates continued strong demand for skilled trades training, driven by initiatives in manufacturing, electrical grid rebuilding, and workforce needs [18][85] Other Important Information - Capital expenditures for 2025 are expected to range between $70 million and $75 million, supporting new campuses and program expansions [28][35] - The company has amended its credit facility to increase financial flexibility, ending the quarter with approximately $90 million in total liquidity and no debt outstanding [28] Q&A Session Summary Question: Can you provide additional color on the strong demand and increased marketing efficiencies? - Management noted that improved marketing efficiencies and increased awareness have driven strong demand, with expectations for savings to continue throughout the year [39] Question: What is the update on regulatory changes and their impact? - Management indicated that they are in a good position with regulatory changes, as the administration supports more people entering trades, and they are maintaining close contact with the Department of Education [45][46] Question: Are all new programs approved by the Department of Education? - Management confirmed that all new programs are approved except for the welding program in Rhode Island, which is pending [51] Question: When will the healthcare starts begin to grow again? - Management expects healthcare starts to be in growth mode beginning in Q4 2025, following the suspension of certain programs [53] Question: How much of the healthcare start weakness is attributed to specific program suspensions? - Management indicated that outside of the suspended programs, healthcare starts grew by almost 6% [61] Question: What is the expected cadence of capital expenditures throughout the year? - Management forecasted Q2 to be one of the heaviest quarters for capital expenditures, slightly exceeding Q1 [97]

Financial Data and Key Metrics Changes - Revenue increased by 16% to $117.5 million, marking the eighth consecutive quarter of double-digit revenue growth [23][30] - Adjusted EBITDA grew by 56% to $10.6 million, with an adjusted EBITDA margin rising to 9% from 7% in the prior year [30][32] - Net income was $1.9 million or $0.06 per diluted share, while adjusted net income was $3.5 million or $0.11 per diluted share [31][32] Business Line Data and Key Metrics Changes - Student starts at 21 campuses grew by 20% over the prior period, continuing a trend of double-digit growth for six consecutive quarters [9][30] - Transportation and Skilled Trades programs saw a robust 32.4% increase in stock growth, while healthcare and other professions experienced a decline of 6.3% due to program optimizations [24][25] Market Data and Key Metrics Changes - The company is successfully meeting the growing demand for educational alternatives to traditional four-year colleges, with a focus on closing the workforce skills gap [10][19] - The East Point campus in Atlanta opened in March 2024 and contributed over $4 million in revenue during Q1 2025, becoming profitable ahead of schedule [10][100] Company Strategy and Development Direction - The company is focused on expanding its network of schools by replicating in-demand programs and opening new campuses in underserved markets [16][19] - The Lincoln ten point zero hybrid teaching model has provided increased flexibility for students, contributing to higher graduation rates and attracting corporate partners [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving approximately $550 million in organically generated revenue and $90 million in adjusted EBITDA by 2027 [7][32] - The company anticipates continued strong demand for skilled trades training, driven by initiatives in manufacturing, electrical utilities, and military needs [17][19] Other Important Information - Capital expenditures for 2025 are expected to range between $70 million and $75 million, supporting new campuses and program expansions [27][35] - The company has amended its credit facility to increase financial flexibility, ending the quarter with approximately $90 million in total liquidity and no debt outstanding [27][28] Q&A Session Summary Question: Can you provide additional color on the strong demand and increased marketing efficiencies? - Management noted that improved marketing efficiencies were due to vendor collaboration and increased awareness, leading to lower overall costs [38][39] Question: What is the update on regulatory changes and their impact? - Management indicated that the administration is supportive of trade education, and while there are changes at the Department of Education, they maintain strong contacts to ensure timely approvals [46][47] Question: Are all new programs approved by the Department of Education? - Management confirmed that all new programs are approved except for the welding program in Rhode Island, which is pending [52] Question: How much of the healthcare start contraction is due to specific program suspensions? - Management stated that outside of the suspended programs, healthcare starts grew by approximately 6% [61] Question: What is the expected cadence of capital expenditures throughout the year? - Management indicated that Q2 is expected to be one of the heaviest quarters for capital expenditures, slightly exceeding Q1 [96]