Financial Data and Key Metrics Changes - For Q4 2024, total revenue grew by 16.4% to 19.2 million, with an adjusted EBITDA margin of 16.1% [42] - Full-year revenue reached 42.3 million [48][49] Business Line Data and Key Metrics Changes - Student starts grew by 9.6% in Q4, marking nine consecutive quarters of growth [40] - The Eastpointe campus contributed 6 million in revenue for the year [50] - The company is exiting lower ROI programs such as cosmetology and culinary, reallocating resources to higher-demand programs [26][102] Market Data and Key Metrics Changes - The company reported a 10% growth in student starts in transportation and skilled trades, while healthcare and other professions saw a 17% decline in starts [101] - The demand for skilled trades remains strong, with ongoing interest in programs related to auto, diesel, and welding [88] Company Strategy and Development Direction - The company aims to achieve approximately 90 million in adjusted EBITDA by 2027, focusing on new campus development and program replication [10][54] - The Lincoln 10.0% hybrid teaching model is being implemented to enhance flexibility for students and improve operational efficiencies [12][14] - Three new campuses are set to open in 2025, with a focus on high-demand programs [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential due to increasing demand for skilled workers and a favorable regulatory environment under the new administration [32][84] - The company anticipates continued solid growth in 2025, with guidance for revenue between 490 million [55][61] - Management highlighted the importance of maintaining a high ROI for students and the ongoing need for skilled trades in the workforce [34][119] Other Important Information - The company ended the year with nearly 64.1 million, with 70% allocated to growth initiatives [51] Q&A Session Summary Question: Updates on new campuses and programs - Management confirmed that Nashville is ahead of schedule, with classes already started, and Levittown is expected to open in early Q3 [74] Question: Impact of regulatory changes on operations - Management indicated that the new administration is likely to ease regulatory burdens, which should benefit the company [84] Question: Changes in skilled trades demand - Management noted consistent demand across skilled trades, but mentioned a softening in collision program demand [88] Question: Inclusion of Hicksville campus in revenue targets - Management confirmed that the Hicksville campus is included in the $550 million revenue target, expected to open in Q4 2026 [92][93] Question: Adjusted EBITDA margin projections - Management indicated that the adjusted EBITDA margin is expected to increase incrementally from 2025 to 2027 as new programs roll out [97]
Lincoln Educational Services(LINC) - 2024 Q4 - Earnings Call Transcript