Lincoln Educational Services Corp (LINC) Reports 10.5% Revenue Growth in Q3 2023
Lincoln Educational Services Corp (NASDAQ:LINC) reported a 10.5% revenue growth in Q3 2023.
The company also saw a 7.1% increase in student starts during the same period.
Investments in new campuses and program expansions are part of the company's growth strategy.
LINC raised its outlook for the full year based on the strong performance in the first nine months of 2023.
Lincoln Educational Services Corp (NASDAQ:LINC) announced its financial and operating results for the third quarter on November 6, 2023. The company reported a 10.5% revenue growth and a 7.1% increase in student starts. The growth is attributed to the continued roll-out of the company's hybrid instructional platform, Lincoln 10.0, which is expected to be fully implemented by the end of 2025.
Financial Highlights and Developments
According to the company's President & CEO, Scott Shaw, the Lincoln 10.0 platform has resulted in higher student retention and operational efficiencies. The platform's scalability allows for additional program replications at campuses. The company also continued to transition its financial aid process, which has resulted in incremental expenses but is expected to provide future savings.
As part of its growth strategy, LINC has completed transactions to relocate and expand two of its existing campuses. The company has leased a new facility in the Nashville market and purchased a property in Levittown, Pennsylvania. These new facilities will allow the company to add HVAC and electrical programs in Nashville and HVAC, electrical, and welding programs in Philadelphia when these campuses open in 2025.
Future Outlook
Based on the performance for the first nine months of 2023, LINC has raised its outlook for the full year. The strong growth in student starts fuels the company's long-term optimism to prepare increasing numbers of students for rewarding careers while helping American corporations close their skills gap.
Financial Results
For the quarter ended September 30, 2023, the revenue increased by 10.5% to $99.5 million. The Adjusted EBITDA remained essentially flat at $14.4 million for both the current and prior year period. The company's performance in the first nine months of 2023 led to an increase in financial guidance for revenue, student starts, and adjusted net income.
Investments and Expansion
LINC has been investing in new campuses and expanding its most successful programs. The company's strong balance sheet and cash flow from operations have enabled these investments while remaining debt-free. The new campus in Atlanta is on track to open during the first quarter of 2024, and plans for a second new campus in Houston have been announced.
Conclusion
Overall, Lincoln Educational Services Corp (NASDAQ:LINC) has demonstrated strong growth in Q3 2023, with significant increases in revenue and student starts. The company's investments in new campuses and program expansions, along with the implementation of the Lincoln 10.0 platform, are key factors in this growth. With a raised outlook for the full year, LINC continues to be optimistic about its future performance.
Explore the complete 8-K earnings release (here) from Lincoln Educational Services Corp for further details.
This article first appeared on GuruFocus.
