Lincoln Educational Services Corp (LINC) Reports Solid Financial Results for Q4 and Full Year 2023
Revenue: Q4 revenue increased by 13.6% to $102.5 million; full-year revenue reached $378.1 million.
Net Income: Q4 net income was $6.8 million; full-year net income totaled $26 million.
Adjusted EBITDA: Q4 Adjusted EBITDA rose to $15.7 million; full-year Adjusted EBITDA was $26.5 million.
Student Population: Average enrollment grew to 13,983, reflecting a strong demand for skilled trades education.
Financial Position: Ended the year with $80.3 million in cash and cash equivalents, with no debt.
2024 Guidance: Revenue projected between $410 million and $420 million, with Adjusted EBITDA between $35 million and $40 million.
Expansion Plans: New campus openings and relocations in Georgia, Texas, Tennessee, and Pennsylvania.
On February 26, 2024, Lincoln Educational Services Corp (NASDAQ:LINC) released its 8-K filing, detailing the financial and operational highlights for the fourth quarter and full year ended December 31, 2023. The company, a leading provider of diversified career-oriented post-secondary education, reported a significant increase in revenue and net income, reflecting strong demand for its programs in automotive technology, skilled trades, healthcare services, hospitality services, and business and information technology.
Financial and Operational Performance
For the fourth quarter of 2023, Lincoln Educational Services Corp reported a 13.6% increase in revenue to $102.5 million, compared to the same period in the previous year. The company's net income for the quarter was $6.8 million, and the Adjusted EBITDA stood at $15.7 million. The full-year revenue reached $378.1 million, with net income totaling $26 million. These results demonstrate the company's ability to exceed its 2023 guidance metrics, driven by a 16% increase in student starts from existing campus operations.
President & CEO Scott Shaw commented on the company's success, stating:
Our team is successfully executing our transformative growth strategies, which has led to increased student starts, retention, graduation and placement rates, and allowed us to exceed all of our 2023 guidance metrics.
Strategic Growth and Expansion
Lincoln Educational Services Corp's growth strategy includes the expansion of its campus operations and the transition to a scalable hybrid instructional platform, Lincoln 10.0, expected to be completed by the end of 2024. The company has made significant investments in new campuses in East Point, Georgia, and Houston, Texas, and is relocating campuses in Nashville, Tennessee, and Philadelphia, Pennsylvania. These expansions are anticipated to enhance the student experience and meet the growing demand for skilled professionals.
With a strong financial position, including $80 million in cash and no debt, Lincoln is well-equipped to pursue these strategic initiatives. The company's 2024 outlook is positive, with revenue projected between $410 million and $420 million and Adjusted EBITDA expected to be between $35 million and $40 million.
Investor Relations and Future Outlook
Lincoln Educational Services Corp will be hosting its first Investor Day on March 19, 2024, to provide an overview of its growth strategy and plans for 2024. The event will be available for analysts and investors to attend either in person or virtually. The company's strong performance and strategic investments position it for continued growth and success in the coming year.
For more detailed financial information and future updates, investors and interested parties are encouraged to visit the investor relations section of Lincolns website at www.lincolntech.edu.
Explore the complete 8-K earnings release (here) from Lincoln Educational Services Corp for further details.
This article first appeared on GuruFocus.
