Q1 2024 Lincoln Educational Services Corp Earnings Call Transcript
Key Points
- Lincoln Educational Services Corp reported a strong start to 2024 with a 15.3% increase in student starts and nearly 20% revenue growth.
- The company has successfully doubled its adjusted net income and has increased full-year guidance for revenue, adjusted EBITDA, and adjusted net income.
- Implementation of the Lincoln 10.0 hybrid instructional platform has led to instructional efficiencies and is expected to be used in teaching approximately 65% of classes by year-end.
- The opening of a new campus in East Point, Georgia, and plans for additional campuses align with the company's growth strategy and are generating positive student enrollment numbers.
- Lincoln Educational Services Corp has secured a significant new contract with Container Maintenance Corporation worth approximately $6 million over five years, expanding their service offerings beyond traditional student-focused programs.
- The company faces uncertainties and risks that could affect future performance, as noted in the forward-looking statements disclaimer.
- While the Lincoln 10.0 platform is enhancing flexibility and efficiency, the full impact on graduation rates and long-term student success is yet to be fully realized.
- Significant capital expenditures of $65 million to $70 million are planned for the year, which could impact financial stability if not managed carefully.
- The company's reliance on corporate partnerships and new program success could pose risks if expected profitability or operational goals are not met.
- Marketing expenses are expected to remain high, which could impact profitability if the cost per start begins to rise or if the returns on marketing investment decrease.
Good day, and thank you for standing by. Welcome to the Lincoln Educational Services 2024 first-quarter results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Michael Polyviou. Please go ahead.
Thank you, Marvin. Good morning, everyone. Before the market opened today, Lincoln Educational Services issued its news release reporting financial results for the first quarter ended March 31, 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 are 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. And a replay of the call will be archived also on the company's website.
Statements made
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
