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Lincoln Educational Services Reports Strong Results for Fourth Quarter and Full Year 2024
Provides Outlook for Continued Strong Growth in 2025
Conference Call Today at 10 a.m. Eastern Standard Time

PARSIPPANY, N.J., February 24, 2025 – Lincoln Educational Services Corporation (Nasdaq: LINC) today announced financial and operating results for the fourth quarter and fiscal year ended December 31, 2024, as well as recent business developments.

Fourth Quarter 2024 Financial Highlights

 •
Revenue increased by 16.4% to $119.4 million

•
Student starts grew by 9.6%; quarter-end student population rose by 14.1%

•
Net income of $6.8 million and adjusted EBITDA of $19.2 million

•
Total liquidity of nearly $100 million, no debt outstanding

•
Cashflow from operations of $30.3 million

Full Year 2024 Financial and Operational Highlights

 •
Achieved or surpassed fiscal year 2024 guidance ranges for all key financial metrics

•
Revenue increased 16.4% to $440.1 million

•
Student starts grew by 15.2%

•
Net income of $9.9 million and adjusted EBITDA of $42.3 million

Recent Developments

 •
Entered into a lease agreement for a new campus in Hicksville, New York

•
Completed sale of Summerlin, Las Vegas campus

•
Established full year 2025 guidance ranges that reflect continued strong growth

“We had a very strong finish to 2024, achieving or exceeding all of our guidance metrics while we continued to invest in our growth strategies,” said Scott Shaw, President & CEO. “By focusing on providing high value training to our students and corporate partners, we are meeting the rising demand for educational alternatives to a traditional four-year college degree while expanding employers’ abilities to fill their workforce skills gap. Successful execution of our business plan resulted in strong double-digit growth across all our key financial metrics including revenue, student starts, end of quarter student population, adjusted net income, adjusted EBITDA and cash generation from operations. While we continued to invest in our expansion, we maintained our financial strength and finished the year with nearly $60 million in cash, no debt and nearly $100 million of liquidity.

“We’ve completed implementation of the first phase of our hybrid teaching platform, Lincoln 10.0, which continues to improve operating efficiencies while benefiting student experience and outcomes. At the same time, we continue to execute our new campus development efforts in Nashville, TN, Levittown, PA, Houston, TX and, most recently, our new campus  in Hicksville, New York. Nashville is opening its doors to its first welding class in the new facility this week and we have a steady opening schedule at all three campuses as the year progresses. In addition, we expect to replicate seven high in demand programs at existing campus during 2025 after launching five such programs during 2024.

1
Demand for our core programs by both high school and adult students is at an all-time high, as is the demand from corporate partners for our graduates. In 2025, as we open three new campus locations and replicate programs, we expect to make marked progress toward achieving our objectives of approximately $550 million in revenue and approximately $90 million in adjusted EBITDA in 2027.”

2024 FOURTH QUARTER FINANCIAL RESULTS
(Quarter ended December 31, 2024, compared to Quarter ended December 31, 2023)
 

 •
Revenue grew by $16.9 million, or 16.4% to $119.4 million. The increase was primarily due to a 13.7% increase in average student population, driven by continued start growth of 9.6%, in addition to tuition increases quarter over quarter. Included in the increase was $4.4 million of revenue generated by the East Point, Georgia campus, which opened late in the first quarter of 2024.
 

 •
Educational services and facilities expenses increased $4.1 million, or 10.0% to $45.1 million. The increase over the prior year period includes approximately $1.0 million in preopening costs for new and relocating campuses as well as new program costs. The East Point, Georgia campus which opened late in the first quarter of 2024 added costs of $1.4 million. The remaining cost increases were associated with higher student population and higher depreciation expense resulting from our capital expenditures. Partially offsetting these increases was a $0.5 million reduction in costs from the Transitional segment.
 

 •
Selling, general and administrative expenses increased $9.6 million, or 18.2% to $62.1 million. The increase includes approximately $1.3 million of costs resulting from the new East Point, Georgia campus. Remaining cost increases were driven mainly by additional personnel resulting from our higher student population.
 

 •
Loss on sale of assets of $1.2 million was due to the sale of the Summerlin, Las Vegas campus.
 
FOURTH QUARTER SEGMENT RESULTS
 
Campus Operations Segment
Revenue increased $17.3 million, or 17.2% to $117.7 million. Adjusted EBITDA increased $4.9 million, or 18.8% to $30.7 million, from $25.9 million in the prior year.
 
Transitional Segment
As of December 31, 2024, the Summerlin, Las Vegas campus operations were classified within the Transitional segment. Additionally, as previously reported, the Company closed the Somerville, Massachusetts campus in the prior year, which was fully taught out as of December 31, 2023. This campus is classified in the Transitional segment in the prior year’s statement of operations.
 
2
Revenue decreased $0.4 million, or 20.6% to $1.7 million, from $2.1 million in the comparable prior year period.  Total operating expenses decreased $0.5 million, or 18.4% to $2.3 million, from $2.8 million in the prior year comparable period.
 
Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company.
Corporate and other expenses were $13.8 million and $12.0 million for the quarters ended December 31, 2024, and December 31, 2023, respectively. Included in the current year is a $1.2 million loss on sale of assets resulting from the sale of our Summerlin, Las Vegas campus.
 
YEAR END FINANCIAL RESULTS
(Fiscal Year Ended December 31, 2024, compared to Fiscal Year Ended December 31, 2023)
 

 •
Total revenue increased $62.0 million, or 16.4%, to $440.1 million, compared to $378.1 million.
 

 •
Campus Operations Segment revenue increased $65.7 million, or 17.9% to $432.9 million, compared to $367.2 million.
 

 •
Transitional Segment revenue decreased $3.7 million, or 34.5% to $7.1 million, compared to $10.8 million.
 
RECENT BUSINESS DEVELOPMENTS
 
New Hicksville, New York Campus. On December 12, 2024, the Company entered into a lease for approximately 65,000 square feet of space to serve as the Company’s new campus in Hicksville, New York. The Hicksville campus will serve as the Company’s second campus in the New York City metro area and will offer programs in the automotive, welding, HVAC and electrical and electronic fields. The lease term is currently scheduled to commence on or about May 1, 2025, with an initial lease term of 15 years and 9 months. The lease contains a renewal option allowing for either a 10-year renewal or two five-year renewals.
 
Sale of Summerlin, Las Vegas (“Euphoria”). Effective on January 1, 2025, we completed the sale of our Summerlin, Las Vegas campus, from which our cosmetology program was taught. As a result of the sale, the fourth quarter financial results included a loss on sale of assets of $1.2 million. As of December 31, 2024, the net assets related to this campus have been classified as held-for-sale on the consolidated balance sheet, with operational results classified in the Transitional segment.

FULL YEAR 2025 OUTLOOK
The Company ended 2024 in a position of strength with significant liquidity to fund our expansion plans and will begin 2025 with over 14,800 students, an increase of 15% over 2024. The newly opened East Point, Georgia campus continues to outperform internal expectations, and management continues to explore and execute on planned growth initiatives. Lincoln is well positioned to achieve another year of strong growth in our key financial metrics as reflected in our outlook for 2025, which follows:

3
   
2025 Guidance
  
(Amounts in millions except for student starts)
  
Low
          
High
  
Revenue
  
$
480
      
-
    
$
490
  
Adjusted EBITDA1
  
$
55
      
-
    
$
60
  
Net Income
  
$
8
      
-
    
$
13
  
Capital expenditures
  
$
70
      
-
    
$
75
  
Student Starts
    
8
%
    
-
      
12
%

1
The guidance in this release includes references to non-GAAP operating measures.  A reconciliation to the midpoint of our guidance can be reviewed below in the non-GAAP operating measures at the end of this release.

While the Company anticipates overall student start growth throughout 2025, there is a planned timing shift in student starts in 2025 compared to 2024 due to a June start date shifting to July in the Company’s standardized Lincoln 10.0 start calendar. As a result of this start date move approximately 2,300 student starts are expected to shift from the second quarter to the third quarter. This shift is not expected to have a material impact on revenue between quarters.

CONFERENCE CALL INFO
Lincoln will host a conference call today at 10:00 a.m. Eastern Standard Time to discuss results. To access the live webcast of the conference call, please go to the Investor Overview section of Lincoln’s website at http://www.lincolntech.edu. Participants may also register via teleconference at: Q4 2024 Lincoln Educational Services Earnings Conference Call. Once registration is completed, participants will be provided with a dial-in number containing a personalized PIN to access the call. Participants are requested to register at least 15 minutes prior to the start of the call.

An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.

ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION
 
Lincoln Educational Services Corporation is a leading provider of diversified career-oriented post-secondary education helping to provide solutions to America’s skills gap. Lincoln offers career-oriented programs to recent high school graduates and working adults in five principal areas of study: automotive technology, health sciences, skilled trades, business and information technology, and hospitality services. Lincoln has provided the workforce with skilled technicians since its inception in 1946 and currently operates 21 campuses in 12 states under Lincoln College of Technology, Lincoln Technical Institute, Lincoln Culinary Institute, and associated brand names. For more information, please go to www.lincolntech.edu.
 
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FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation regarding Lincoln’s business that are not historical facts, including those made in a conference call, may be “forward-looking statements” as that term is defined in the federal securities law. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings, or other aspects of the Company’s operating results. The Company cautions you that these statements concern current expectations about the Company’s future performance or events and are subject to a number of uncertainties, risks, and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projects upon which the statements are based including, without limitation, impacts related to epidemics or pandemics; our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely regulatory approvals in connection with acquisitions or a change of control of our Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner or on a timely basis; risks associated with cybersecurity; risks associated with changes in applicable federal laws and regulations; uncertainties regarding our ability to comply with federal laws and regulations, such as the 90/10 rule and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our industry; general economic conditions; and other factors discussed in the “Risk Factors” section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.

5
(Tables to Follow)
(In Thousands)

       
Three Months Ended
December 31,
(Unaudited)
        
Year-Ended
December 31,
(Unaudited)
    
   
2024
    
2023
    
2024
    
2023
  
                         
REVENUE
  
$
119,374
    
$
102,522
    
$
440,064
    
$
378,070
  
COSTS AND EXPENSES:
                                
Educational services and facilities
    
45,122
      
41,024
      
181,759
      
162,275
  
Selling, general and administrative
    
62,105
      
52,530
      
243,803
      
209,135
  
Loss (gain) on sale of assets
    
1,218
      
6
      
2,119
      
(30,918
)
Gain on insuarnce proceeds
    
-
      
-
      
(2,794
)
    
-
  
Impairment of goodwill and long-lived assets
    
-
      
-
      
-
      
4,220
  
Total costs & expenses
    
108,445
      
93,560
      
424,887
      
344,712
  
OPERATING INCOME
    
10,929
      
8,962
      
15,177
      
33,358
  
OTHER:
                                
Interest income
    
299
      
736
      
2,099
      
2,628
  
Interest expense
    
(672
)
    
(273
)
    
(2,565
)
    
(347
)
INCOME BEFORE INCOME TAXES
    
10,556
      
9,425
      
14,711
      
35,639
  
PROVISION FOR INCOME TAXES
    
3,722
      
2,633
      
4,820
      
9,642
  
NET INCOME
  
$
6,834
    
$
6,792
    
$
9,891
    
$
25,997
  
Basic
                                
Net income per common share
  
$
0.22
    
$
0.23
    
$
0.32
    
$
0.86
  
Diluted
                                
Net income per common share
  
$
0.22
    
$
0.22
    
$
0.32
    
$
0.85
  
Weighted average number of common shares outstanding:
                                
Basic
    
30,679
      
30,126
      
30,580
      
30,105
  
Diluted
    
31,144
      
30,847
      
30,891
      
30,541
  
                                 
Other data:
                                
                                 
Adjusted EBITDA (1)
  
$
19,227
    
$
15,730
    
$
42,312
    
$
26,500
  
Depreciation and amortization
  
$
3,440
    
$
2,114
    
$
12,956
    
$
6,770
  
Number of campuses
    
21
      
21
      
21
      
21
  
Average enrollment
    
15,904
      
13,983
      
14,426
      
12,941
  
Net cash provided by operating activities
  
$
30,299
    
$
21,946
    
$
29,306
    
$
25,558
  
Net cash (used in) provided by investing activities
  
$
(24,772
)
  
$
12,330
    
$
(46,971
)
  
$
7,369
  
Net cash used in financing activities
  
$
(216
)
  
$
-
    
$
(3,331
)
  
$
(2,945
)

Selected Consolidated Balance Sheet Data:
 		   
December 31, 2024
(Unaudited)
   
       
Cash and cash equivalents
  
$
59,273
  
Current assets
    
111,252
  
Working capital
    
21,040
  
Total assets
    
436,556
  
Current liabilities
    
90,212
  
Total stockholders' equity
    
178,264
  

(1) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company believes it is useful to present non-GAAP financial measures that exclude certain significant items as a means to understand the performance of its business. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are measures not recognized in financial statements presented in accordance with GAAP.

6

 •
We define EBITDA as income (loss) before interest expense (net of interest income), provision (benefit) for income taxes, depreciation and amortization.

•
We define adjusted EBITDA as EBITDA plus stock compensation expense and adjustments for items not considered part of the Company’s normal recurring operations.

•
We define adjusted net income as net income plus adjustments for items not considered part of the Company’s normal recurring operations.

•
We define total liquidity as the Company’s cash and cash equivalents, short-term investments, restricted cash and available borrowings under our credit facility.

EBITDA, adjusted EBITDA, adjusted net income, and total liquidity are presented because we believe they are useful indicators of the Company’s performance and ability to make strategic investments and meet capital expenditures and debt service requirements. However, they are not intended to represent cash flows from operations as defined by GAAP and should not be used as an alternative to net income (loss) as indicators of operating performance or cash flow as a measure of liquidity. EBITDA, adjusted EBITDA, adjusted net income and total liquidity are not necessarily comparable to similarly titled measures used by other companies.

7
The following is a reconciliation of net income (loss) to EBITDA, adjusted EBITDA, adjusted net income, and total liquidity:

       
Three Months Ended December 31,
(Unaudited)
Consolidated Operations
        
Year-Ended December 31,
(Unaudited)
Consolidated Operations
    
   
2024
    
2023
    
2024
    
2023
  
                         
Net income
  
$
6,834
    
$
6,792
    
$
9,891
    
$
25,997
  
Interest expense (income), net
    
373
      
(463
)
    
466
      
(2,281
)
Provision for income taxes
    
3,722
      
2,633
      
4,820
      
9,642
  
Depreciation and amortization
    
3,440
      
2,114
      
12,956
      
6,770
  
EBITDA
    
14,369
      
11,076
      
28,133
      
40,128
  
Stock compensation expense
    
1,275
      
1,845
      
4,629
      
5,894
  
New campus and campus relocation costs
    
1,970
      
1,885
      
8,793
      
3,466
  
Severance and other one-time costs
    
257
      
437
      
1,323
      
1,831
  
Program expansions
    
178
      
-
      
1,050
      
-
  
Gain on sale of Nashville, Tennessee
    
-
      
-
      
-
      
(30,939
)
Loss on sale of Summerlin, Las Vegas
    
1,178
      
-
      
1,178
      
-
  
Impairment of goodwill and long-lived assets
    
-
      
-
      
-
      
4,220
  
Somerville closure
    
-
      
487
      
-
      
1,900
  
Gain on insurance proceeds
    
-
      
-
      
(2,794
)
    
-
  
Adjusted EBITDA
  
$
19,227
    
$
15,730
    
$
42,312
    
$
26,500
  

 
 
 
 
Three Months Ended December 31,
(Unaudited)
   
   
Campus Operations
    
Transitional
    
Corporate
  
   
2024
    
2023
    
2024
    
2023
    
2024
    
2023
  
                                     
Net income (loss)
  
$
24,730
    
$
21,371
    
$
(604
)
  
$
(682
)
  
$
(17,292
)
  
$
(13,897
)
Interest expense (income), net
    
574
      
233
      
-
      
-
      
(201
)
    
(696
)
Provision for income taxes
    
-
      
-
      
-
      
-
      
3,722
      
2,633
  
Depreciation and amortization
    
3,274
      
1,945
      
-
      
20
      
166
      
149
  
EBITDA
    
28,578
      
23,549
      
(604
)
    
(662
)
    
(13,605
)
    
(11,811
)
Stock compensation expense
    
-
      
-
      
-
      
-
      
1,275
      
1,845
  
New campus and campus relocation costs
    
1,970
      
1,885
      
-
      
-
      
-
      
-
  
Program expansions
    
178
      
-
      
-
      
-
      
-
      
-
  
Loss on sale of Summerlin, Las Vegas
    
-
      
-
      
-
      
-
      
1,178
      
-
  
Severance and other one-time costs
    
-
      
437
      
-
      
-
      
257
      
-
  
Somerville closure
    
-
      
-
      
-
      
487
      
-
      
-
  
Adjusted EBITDA
  
$
30,726
    
$
25,871
    
$
(604
)
  
$
(175
)
  
$
(10,895
)
  
$
(9,966
)

8
   
Year-Ended December 31,
  
   
(Unaudited)
  
   
Campus Operations
    
Transitional
    
Corporate
  
   
2024
    
2023
    
2024
    
2023
    
2024
    
2023
  
                                     
Net income (loss)
  
$
61,350
    
$
47,798
    
$
(2,038
)
  
$
(2,365
)
  
$
(49,421
)
  
$
(19,436
)
Interest expense (income), net
    
2,208
      
233
      
-
      
-
      
(1,742
)
    
(2,514
)
Provision for income taxes
    
-
      
-
      
-
      
-
      
4,820
      
9,642
  
Depreciation and amortization
    
12,200
      
6,030
      
56
      
110
      
700
      
630
  
EBITDA
    
75,758
      
54,061
      
(1,982
)
    
(2,255
)
    
(45,643
)
    
(11,678
)
Stock compensation expense
    
-
      
-
      
-
      
-
      
4,629
      
5,894
  
Gain on insurance proceeds
    
-
      
-
      
-
      
-
      
(2,794
)
    
-
  
New campus and campus relocation costs
    
8,793
      
3,466
      
-
      
-
      
-
      
-
  
Program expansions
    
1,050
      
-
      
-
      
-
      
-
      
-
  
Loss on sale of Summerlin, Las Vegas
    
-
      
-
      
-
      
-
      
1,178
      
-
  
Severance and other one-time costs
    
-
      
-
      
-
      
-
      
1,323
      
1,831
  
Gain on sale of Nashville, Tennessee
    
-
      
-
      
-
      
-
      
-
      
(30,939
)
Impairment of goodwill and long-lived assets
    
-
      
4,220
      
-
      
-
      
-
      
-
  
Somerville closure
    
-
      
-
      
-
      
1,900
      
-
      
-
  
Adjusted EBITDA
  
$
85,601
    
$
61,747
    
$
(1,982
)
  
$
(355
)
  
$
(41,307
)
  
$
(34,892
)

   

    
Three Months Ended
December 31,
(Unaudited)
        
Year-Ended
December 31,
(Unaudited)
  
   
2024
    
2023
    
2024
    
2023
  
Net income
  
$
6,834
    
$
6,792
    
$
9,891
    
$
25,997
  
                                 
Adjustments to net income:
                                
New campus and campus relocation costs
    
1,970
      
2,299
      
9,304
      
3,890
  
Program expansions
    
178
      
-
      
1,050
      
-
  
Gain on sale of Nashville, Tennessee
    
-
      
-
      
-
      
(30,939
)
Loss on sale of Summerlin, Las Vegas
    
1,178
              
1,178
      
-
  
Gain on insurance proceeds
    
-
      
-
      
(2,794
)
    
-
  
Impairment of goodwill and long-lived assets
    
-
      
-
      
-
      
4,220
  
Severance and other one time costs
    
507
      
437
      
1,833
      
2,608
  
Performance based catch-up stock compensation
    
-
      
1,264
      
-
      
2,742
  
Somerville closure
    
-
      
487
      
-
      
1,900
  
Total non-recurring adjustments
    
3,833
      
4,487
      
10,571
      
(15,579
)
Income tax effect
    
(1,150
)
    
(1,256
)
    
(3,171
)
    
4,362
  
Adjusted net income, non-GAAP
  
$
9,517
    
$
10,023
    
$
17,291
    
$
14,780
  

     
As of
December 31, 2024
   
Cash and cash equivalents
  
$
59,273
  
Credit facility
    
38,844
  
Total Liquidity
  
$
98,117
  

9
   
Three Months Ended December 31,
  
   
2024
    
2023
    
% Change
  
Revenue:
                  
Campus Operations
  
$
117,666
    
$
100,371
      
17.2
%
Transitional
    
1,708
      
2,151
      
-20.6
%
Total
  
$
119,374
    
$
102,522
      
16.4
%
                         
Operating Income (loss):
                        
Campus Operations
  
$
25,304
    
$
21,604
      
17.1
%
Transitional
    
(604
)
    
(682
)
    
11.4
%
Corporate
    
(13,771
)
    
(11,960
)
    
-15.1
%
Total
  
$
10,929
    
$
8,962
      
21.9
%
                         
Starts:
                        
Campus Operations
    
3,397
      
3,058
      
11.1
%
Transitional
    
100
      
133
      
-24.8
%
Total
    
3,497
      
3,191
      
9.6
%
                         
Average Population:
                        
Campus Operations
    
15,586
      
13,581
      
14.8
%
Transitional
    
318
      
402
      
-20.9
%
Total
    
15,904
      
13,983
      
13.7
%
                         
End of Period Population:
                        
Campus Operations
    
14,838
      
12,900
      
15.0
%
Transitional
    
300
      
370
      
-18.9
%
Total
    
15,138
      
13,270
      
14.1
%

10
   
Year Ended December 31,
  
   
2024
    
2023
    
% Change
  
Revenue:
                  
Campus Operations
  
$
432,966
    
$
367,233
      
17.9
%
Transitional
    
7,098
      
10,837
      
-34.5
%
Total
  
$
440,064
    
$
378,070
      
16.4
%
                         
Operating Income (loss):
                        
Campus Operations
  
$
63,558
    
$
48,031
      
32.3
%
Transitional
    
(2,039
)
    
(2,366
)
    
13.8
%
Corporate
    
(46,342
)
    
(12,307
)
    
-276.5
%
Total
  
$
15,177
    
$
33,358
      
-54.5
%
                         
Starts:
                        
Campus Operations
    
18,153
      
15,526
      
16.9
%
Transitional
    
507
      
673
      
-24.7
%
Total
    
18,660
      
16,199
      
15.2
%
                         
Average Population:
                        
Campus Operations
    
14,100
      
12,436
      
13.4
%
Transitional
    
326
      
505
      
-35.4
%
Total
    
14,426
      
12,941
      
11.5
%
                         
End of Period Population:
                        
Campus Operations
    
14,838
      
12,900
      
15.0
%
Transitional
    
300
      
370
      
-18.9
%
Total
    
15,138
      
13,270
      
14.1
%

11
Information included in the table below provides student starts and population under the Campus Operations Segment with a breakdown by Transportation and Skilled Trade programs and Healthcare and Other Professions programs.

Population by Program (Campus Operations Segment):

   
Three Months Ended December 31,
  
   
2024
    
2023
    
% Change
  
Starts:
                  
Transportation and Skilled Trades
    
2,366
      
1,810
      
30.7
%
Healthcare and Other Professions
    
1,031
      
1,248
      
-17.4
%
Total
    
3,397
      
3,058
      
11.1
%
                         
Average Population:
                        
Transportation and Skilled Trades
    
11,654
      
9,741
      
19.6
%
Healthcare and Other Professions
    
3,932
      
3,840
      
2.4
%
Total
    
15,586
      
13,581
      
14.8
%
                         
End of Period Population:
                        
Transportation and Skilled Trades
    
11,081
      
9,170
      
20.8
%
Healthcare and Other Professions
    
3,757
      
3,730
      
0.7
%
Total
    
14,838
      
12,900
      
15.0
%

Population by Program (Campus Operations Segment):

   
Year-Ended December 31,
  
   
2024
    
2023
    
% Change
  
Starts:
                  
Transportation and Skilled Trades
    
13,396
      
10,876
      
23.2
%
Healthcare and Other Professions
    
4,757
      
4,650
      
2.3
%
Total
    
18,153
      
15,526
      
16.9
%
                         
Average Population:
                        
Transportation and Skilled Trades
    
10,347
      
8,871
      
16.6
%
Healthcare and Other Professions
    
3,753
      
3,565
      
5.3
%
Total
    
14,100
      
12,436
      
13.4
%
                         
End of Period Population:
                        
Transportation and Skilled Trades
    
11,081
      
9,170
      
20.8
%
Healthcare and Other Professions
    
3,757
      
3,730
      
0.7
%
Total
    
14,838
      
12,900
      
15.0
%

12
The reconciliations provided below represent management’s projections of various components included in our outlook for the full year 2025.  These calculations are for illustrative purposes and will be reviewed as the year progresses to reflect actual results, our outlook and continued relevance of specific items.  Any revisions or modifications, if necessary, will be disclosed in future announcements of 2025 quarterly results.  Adjusted EBITDA and adjusted net income have been reconciled to the midpoint of our guidance.

Reconciliation of Net Income to Adjusted EBITDA and Adjusted Net Income - 2025 Guidance
(Reconciled to the Mid-Point of 2025 Guidance)

     
Adjusted
EBITDA
      
Adjusted
Net Income
   
Net Income
  
$
10,500
    
$
10,500
  
Interest expense, net
    
2,500
      
-
  
Provision for taxes
    
4,500
      
-
  
Depreciation and amortization
    
21,500
      
200
  
EBITDA
    
39,000
      
-
  
New campus and campus relocation costs1 2
    
8,800
      
8,800
  
Program expansions
    
2,500
      
2,500
  
Other one time items
    
3,200
      
3,200
  
Stock compensation expense
    
4,000
      
-
  
Tax Effect
    
-
      
(4,400
)
Total
  
$
57,500
      
20,800
  
                 
2025 Guidance Range
   $55,000 - $60,000          

1
New campus and campus relocation costs relate to the following locations:
Nashville, Tennessee (relocation)
Levittown, Pennsylvania (relocation)
Houston, Texas (new)
Hicksville, New York (new)

2
New campus adjustment includes pre-opening costs, as well as net operating losses up to four quarters after the campus opens, or until the campus becomes profitable, whichever comes first.  Relocating campus adjustment includes pre-opening costs and relocation-related costs through the end of the quarter in which the relocation is complete.

13
LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340

EVC GROUP LLC
Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2755
Media Relations: Tom Gibson, 201-476-0322


14