NASDAQ$LINC

Lincoln Educational Services Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Revenue and student starts increased, driven by the continued roll out of the Lincoln 10.0 hybrid instructional platform and strategic growth plans.

Lincoln Educational Services Corporation reported a strong third quarter with a 10.5% increase in revenue to $99.5 million and a 7.1% increase in new student starts. The company's strategic growth plans include new campuses and the relocation and expansion of existing campuses. The company raised its outlook for the full year.

  • Revenue grew 10.5% to $99.5 million.
  • New student starts increased 7.1%.
  • Earnings per share of $0.07 was reported.
  • Total liquidity was $70.3 million with no debt outstanding.

Headline financials

Total Revenue

$99.6M

Previous: $91.8M+8.5%
EPS (adj)

$0.07

Previous: $0.10-30.0%
Average Population

12.9K

Previous: 12.8K+0.9%
Capital Expenditures

-$28.7M

Previous: -$7.05M-306.7%
Free Cash Flow

-$26.6M

Previous: -$3.51M-658.6%
Net Income

$2.06M

Previous: $3.54M-41.8%
Operating Income

$2M

Previous: $4.88M-59.1%
Gross Profit

$56.5M

Previous: $51.9M+8.9%
Cash & Equivalents

$41.7M

Previous: $69.6M-40.1%
Total Assets

$316M

Previous: $291M+8.4%
Stock-Based Comp

$662K

Previous: $637K+3.9%

Revenue & EPS history

Lincoln Tech · Revenue · Quarterly

$99.6M

Q3 2023+8.5%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Based on the financial results achieved during the first nine months of the year and the current outlook for the remainder of the year, the Company is increasing financial guidance for revenue, student starts and adjusted net income. In addition, the lower-end of the range for Adjusted EBITDA has increased, and expected investments in Capital Expenditures have been lowered.

Tailwinds

  • Revenue in the range of $370 million to $375 million
  • Adjusted EBITDA in the range of $24 million to $26 million
  • Adjusted net income in the range of $12 million to $14 million
  • Student start growth in the range of 8% to 11%
  • Capital expenditures in the range of $30 million to $33 million

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 Q3 2023

Historical avgQ3 2023

+3.0%

Avg return

Earnings day

+6.4%

Avg return

5 days after

+9.6%

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%+6.0%
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 2011-4.5%
Q3 2010-4.5%
Q4 2010-13.5%
Q2 2011-13.5%
Q2 2010-13.5%
Q1 2010+1.1%

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