Q2 2024 Lincoln Educational Services Corp Earnings Call Transcript
Key Points
- Lincoln Educational Services Corp (LINC) reported a 16% increase in revenue for the second quarter, driven by a 12.3% rise in student starts.
- The company achieved an adjusted EBITDA of $6.2 million, more than 150% higher than the previous year.
- The new East Point, Georgia campus exceeded enrollment goals, contributing significantly to the company's growth.
- Lincoln 10.0, the company's hybrid instructional platform, is expected to cover 65% of students by year-end, improving operating efficiencies.
- The company has strong liquidity with over $100 million, no debt, and a robust working capital position.
- Healthcare program starts were down 6% in the quarter, attributed to timing issues, although growth is expected for the full year.
- The new Houston campus has experienced delays due to building permit issues, pushing its opening to the fourth quarter of 2025.
- Capital expenditures have been delayed, shifting about $20 million into 2025, leading to a reduction in CapEx guidance for the year.
- Despite increased marketing efforts, the cost per start has remained relatively flat, indicating potential challenges in achieving cost efficiencies.
- The company faces regulatory challenges and delays in campus expansions, impacting the timeline for new campus openings.
Ladies and gentlemen, thank you for standing by. Welcome to the second quarter Lincoln Educational Services earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would like now to turn the conference over to Michael Polyviou, Investor Relations. Please go ahead.
Thank you, Michelle. Good morning, everyone. Before the market opened today, Lincoln Educational Services issued its news release reporting financial results in recent corporate developments for the second quarter in six months ended June 30, 2024. The release is available on the Investor Relations portion of the company's corporate website at www.lincolntech.edu.
Joining us today on the call is Scott Shaw, President and CEO; and Brian Meyers, Chief Financial Officer. Today's call is being recorded and is being broadcast live on the company's website. A replay of the call will be archived on the [company's] website.
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