NASDAQ$LINC

Lincoln Educational Services Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Lincoln Tech reported continued growth for the fourth quarter and full year 2021.

Lincoln Educational Services Corporation reported a 7.4% increase in revenue to $87.8 million for the fourth quarter of 2021, driven by a 6.3% increase in average student population. The company's net income was $24.0 million, and it ended the quarter with a net cash position of $83.3 million after sale-leaseback transactions and debt retirement.

  • Revenue increased by 7.4% to $87.8 million compared to the prior year.
  • Adjusted EBITDA increased by 13.1% over the prior year to $15.1 million.
  • Average student population increased by 6.3%, and the ending population increased by 6.9% or 850 students.
  • Net income was reported at $24.0 million.

Headline financials

Total Revenue

$87.8M

Previous: $81.8M+7.4%
EPS (adj)

$0.73

Previous: $0.31+135.5%
Capital Expenditures

$2.28M

Previous: $2.03M+12.5%
Free Cash Flow

$7.42M

Previous: $11.2M-34.0%
Net Income

$24M

Previous: $46M-47.9%
Operating Income

$34M

Previous: $11.1M+206.0%
Gross Profit

$53M

Previous: $50.3M+5.4%
Cash & Equivalents

$83.3M

Previous: $38M+119.1%
Total Assets

$295M

Previous: $245M+20.4%
Stock-Based Comp

$796K

Previous: $400K+99.0%

Revenue & EPS history

Lincoln Tech · Revenue · Quarterly

$87.8M

Q4 2021+7.4%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Lincoln provided specific operating and financial guidance for the coming year. The company will utilize its strong balance sheet to increase its level of investment in growth strategies and operating efficiencies.

Tailwinds

  • Revenue in the range of $350 million to $365 million
  • Student start growth in the range of 5% to 10%
  • Adjusted EBITDA in the range of $35.0 million to $40.0 million
  • Net Income in the range of $17.0 million to $22.0 million
  • Capital expenditures in the range of $7.0 million to $9.0 million

Headwinds

  • The 2022 guidance excludes the impact of the contemplated consummation of the sale and relocation of the Nashville, Tennessee campus, which is under contract, as well as additional costs associated with a new potential campus.
  • The outlook is based on, among other things, current enrollment trends and does not account for the impact from continuing COVID-19 issues or any new COVID-19 variants.
  • Approximately 45% of revenue will occur in the first half of the year.
  • Operating expenses are expected to range in the low to mid $80 million level each quarter, with the third quarter’s expenses expected to reflect the high point of the year, consistent with the seasonality of the Company’s business.
  • The effective tax rate for the year is projected to be 28.5%.

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 Q4 2021

Historical avgQ4 2021

+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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