NASDAQ$LINC

Lincoln Educational Services Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Lincoln Tech experienced revenue growth and improved profitability despite COVID-19 challenges.

Lincoln Tech reported a strong start to 2020 with a 10.7% increase in first-quarter revenue, driven by a higher beginning student population. The company successfully transitioned to a distance learning platform and saw a decrease in net loss per share. However, full-year 2020 guidance was withdrawn due to uncertainties caused by the COVID-19 pandemic.

  • Revenue increased by 10.7% compared to the previous year.
  • Average student population rose by 6.6%.
  • Net loss decreased to $0.08 per share from $0.22 per share.
  • Company successfully transitioned to distance learning delivery platform.

Headline financials

Total Revenue

$70M

Previous: $63.3M+10.7%
EPS (adj)

-$0.08

Previous: -$0.22+63.6%
Student Starts

2.7K

Previous: 2.9K-5.0%
Capital Expenditures

-$1.29M

Previous: -$639K-101.4%
Free Cash Flow

-$3.04M

Previous: -$6.11M+50.3%
Net Income

-$1.75M

Previous: -$5.47M+68.0%
Operating Income

-$1.35M

Previous: -$4.86M+72.3%
Gross Profit

$39.8M

Previous: $33.3M+19.6%
Cash & Equivalents

$9.74M

Previous: $5.68M+71.4%
Total Assets

$169M

Previous: $156M+8.5%
Stock-Based Comp

$291K

Previous: $52K+459.6%

Revenue & EPS history

Lincoln Tech · Revenue · Quarterly

$70M

Q1 2020+10.7%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Due to the COVID-19 pandemic and the complex public health and economic landscape, Lincoln is withdrawing its full-year 2020 guidance.

Tailwinds

  • Seven campuses are set to re-open by June 1st.
  • April student starts rose by approximately 850, a 30% increase from April 2019.
  • Accrediting bodies provided temporary solutions enabling students to continue studies and graduate on time.
  • New practices to serve and educate students should enhance the student experience cost-efficiently.
  • A grant of approximately $27.4 million was awarded to help ensure the continued education of its students.

Headwinds

  • Full year 2020 guidance withdrawn due to uncertainty created by COVID-19.
  • Student starts declined 5.0% due to the onset of the COVID-19 pandemic in March.
  • Limited visibility into the timing of all campuses’ reopening.
  • COVID-19 pandemic and the complex and evolving public health and economic landscape
  • Company incurred costs associated with COVID-19 of approximately $0.7 million in the quarter

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+3.0%

Avg return

Earnings day

+6.4%

Avg return

5 days after

+9.7%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+61.0%

Q3 2015

Best reaction

-25.7%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.5%+9.6%
Q4 2025+4.0%+20.8%+38.7%
Q3 2025+12.9%+17.2%+25.6%
Q1 2025+1.9%+3.7%+3.4%
Q4 2024+15.3%+14.0%-3.0%
Q3 2024+4.3%-6.2%+0.9%
Q2 2024+2.8%+1.9%-2.1%
Q1 2024+7.3%+9.5%-1.1%
Q4 2023+4.4%+2.7%+6.6%
Q3 2023+6.4%+11.5%+7.1%
Q2 2023+24.0%+22.2%+17.5%
Q1 2023+3.1%+12.6%+17.6%
Q4 2022-2.7%+3.0%-6.5%
Q3 2022+14.3%+10.6%+5.9%
Q2 2022-13.0%-15.7%-12.4%
Q1 2022-15.6%-19.0%-5.4%
Q4 2021+0.8%-0.8%-5.0%
Q3 2021+3.7%+3.7%+9.4%
Q2 2021-6.9%-3.2%-14.9%
Q1 2021+3.7%+4.4%+8.7%
Q4 2020-1.3%-1.2%+7.6%
Q3 2020+6.7%+9.2%+10.4%
Q2 2020+25.5%+41.0%+29.6%
Q1 2020+9.8%+9.0%+65.9%
Q4 2019+14.9%+15.4%-5.0%
Q3 2019-7.2%+1.1%+32.6%
Q2 2019-7.0%+1.1%+15.6%
Q1 2019+4.6%-5.9%-12.5%
Q4 2018-0.9%-8.7%-3.4%
Q3 2018+11.5%+10.7%+8.6%
Q2 2018+22.2%+17.2%+26.1%
Q1 2018-7.4%-11.8%-10.8%
Q4 2017+25.0%+20.4%+30.9%
Q3 2017+11.7%+11.3%+3.8%
Q2 2017-3.9%-11.4%-19.0%
Q1 2017+6.3%+15.7%+19.9%
Q4 2016+15.5%+19.3%+50.3%
Q3 2016+4.4%+9.4%+26.9%
Q2 2016-5.3%+4.3%+0.5%
Q1 2016-0.5%
Q4 2015+6.7%
Q3 2015+61.0%
Q2 2015-25.7%
Q1 2015-3.0%
Q4 2014-2.5%
Q3 2014+13.9%
Q2 2014-25.6%
Q1 2014+3.3%
Q4 2013-2.0%
Q3 2013+6.6%
Q2 2013-4.0%
Q1 2013+9.2%
Q4 2011+4.3%
Q4 2012+1.2%
Q3 2012+12.4%
Q2 2012-17.9%
Q1 2011-2.1%
Q1 2012+0.0%
Q4 2009+2.5%
Q3 2010-4.5%
Q3 2011-4.5%
Q2 2010-13.5%
Q4 2010-13.5%
Q2 2011-13.5%
Q1 2010+1.1%

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