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Lincoln Educational Services(LINC) - 2025 Q1 - Quarterly Results
LINCLincoln Educational Services(LINC)2025-05-12 17:42

Revenue Growth - Revenue increased by 13.7% to 117.5million,markingthesixthconsecutivequarterofdouble−digitgrowth[5]−RevenueforQ12025was117.5 million, marking the sixth consecutive quarter of double-digit growth[5] - Revenue for Q1 2025 was 117,506,000, an increase of 13.3% compared to 103,366,000inQ12024[22]−TotalrevenueforQ12025reached103,366,000 in Q1 2024[22] - Total revenue for Q1 2025 reached 117,506, an increase of 13.7% from 103,366inQ12024[30]−CampusOperationssegmentgeneratedrevenueof103,366 in Q1 2024[30] - Campus Operations segment generated revenue of 117,506 in Q1 2025, a 16.0% increase from 101,321inQ12024[30]Profitability−Netincomeimprovedto101,321 in Q1 2024[30] Profitability - Net income improved to 1.9 million, compared to a net loss of 0.2millioninthepreviousyear[5]−NetincomeforQ12025was0.2 million in the previous year[5] - Net income for Q1 2025 was 1,944,000, compared to a net loss of 214,000inQ12024,markingaturnaroundinprofitability[22]−BasicanddilutednetincomepershareforQ12025was214,000 in Q1 2024, marking a turnaround in profitability[22] - Basic and diluted net income per share for Q1 2025 was 0.06, compared to a loss of 0.01pershareinQ12024[22]−OperatingincomeforQ12025was0.01 per share in Q1 2024[22] - Operating income for Q1 2025 was 3,413,000, a significant improvement from an operating loss of 458,000inQ12024[22]−OperatingincomeforCampusOperationsimprovedto458,000 in Q1 2024[22] - Operating income for Campus Operations improved to 21,671 in Q1 2025, a 71.9% increase from 12,609inQ12024[30]AdjustedEBITDA−AdjustedEBITDAroseto12,609 in Q1 2024[30] Adjusted EBITDA - Adjusted EBITDA rose to 10.6 million, compared to 6.5millionintheprioryear,reflectinga636.5 million in the prior year, reflecting a 63% increase[5] - Adjusted EBITDA for Q1 2025 was 10,636, up from 6,545inQ12024,indicatingagrowthof62.56,545 in Q1 2024, indicating a growth of 62.5%[29] - Adjusted EBITDA guidance for 2025 was increased to between 58 million and 63million[13]−ThecompanyprojectsadjustedEBITDAfor2025tobeintherangeof63 million[13] - The company projects adjusted EBITDA for 2025 to be in the range of 58,000 to 63,000,withamidpointof63,000, with a midpoint of 60,500[34] Student Enrollment - Student starts grew by 16.2%, with a 20.9% increase excluding the Transitional segment[5] - The number of starts in Campus Operations increased by 20.9% to 4,610 in Q1 2025, compared to 3,812 in Q1 2024[32] - The average population in Campus Operations grew by 16.2% to 15,469 in Q1 2025, up from 13,311 in Q1 2024[32] Liquidity and Financial Position - Total liquidity reached nearly 90million,withnodebtoutstandingasofMarch31,2025[5]−TotalliquidityasofMarch31,2025,was90 million, with no debt outstanding as of March 31, 2025[5] - Total liquidity as of March 31, 2025, was 88,655, consisting of cash and cash equivalents of 28,655andacreditfacilityof28,655 and a credit facility of 60,000[29] - Cash used in operating activities for Q1 2025 was (8,378,000),animprovementfrom(8,378,000), an improvement from (14,934,000) in Q1 2024[24] - Total costs and expenses for Q1 2025 were 114,093,000,upfrom114,093,000, up from 103,824,000 in Q1 2024, reflecting a 9.5% increase[22] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were (19,889,000),significantlyhigherthan(19,889,000), significantly higher than (1,684,000) in Q1 2024, indicating increased investment in growth[24] - New campus and campus relocation costs for 2025 are estimated at 8,900,whichincludespre−openingcostsandnetoperatinglosses[35]−TheNashvillecampusrelocationwascompleted,enhancingoperationalefficiencyandsupportingthelaunchoftwonewprograms[5]−ThecompanyplanstoopenanewcampusinHouston,Texasbyyear−end2025andinHicksville,NewYorkbytheendof2026[7]MarketingEfficiency−Marketingcostperstudentstartwasapproximately208,900, which includes pre-opening costs and net operating losses[35] - The Nashville campus relocation was completed, enhancing operational efficiency and supporting the launch of two new programs[5] - The company plans to open a new campus in Houston, Texas by year-end 2025 and in Hicksville, New York by the end of 2026[7] Marketing Efficiency - Marketing cost per student start was approximately 20% lower compared to the prior year, indicating improved efficiency[10] Credit Losses - The company reported a provision for credit losses of 11,835,000 in Q1 2025, slightly down from 12,213,000inQ12024[24]GuidanceandProjections−Thecompanyraiseditsfull−year2025revenueguidancetobetween12,213,000 in Q1 2024[24] Guidance and Projections - The company raised its full-year 2025 revenue guidance to between 485 million and $495 million[13] - Adjusted EBITDA and other non-GAAP measures are used by the company to assess performance and make strategic decisions[26][27] - Total liquidity, defined as cash and cash equivalents plus available borrowings, is a key measure for the company's ability to meet capital expenditures and debt service[28]