Lincoln Educational Services (LINC) Q3 Earnings call transcript Nov 11, 2024

In a recent earnings call, Lincoln Educational Services reported strong financial results for the third quarter of 2024, showcasing the company's robust performance and strategic growth initiatives. The call, led by President and CEO, Scott Shaw, and Chief Financial Officer, Brian Meyers, provided insights into the company's operational highlights, financial performance, and future outlook.

Key Themes and Trends

Lincoln Educational Services has experienced a significant increase in student starts and revenue, driven by its strategic initiatives and the growing interest in skilled trades training as an alternative to traditional 4-year college education. The company's new hybrid teaching model, Lincoln 10.0, has been instrumental in attracting more students and enhancing the overall student experience. The model has proven to be a key driver of interest in Lincoln's programs, particularly in the nursing sector, where the company plans to expand its deployment.

Financial Performance and Strategic Initiatives

The third quarter of 2024 saw a double-digit increase in student starts and revenue, with the company's new East Point campus in Georgia leading the way. The campus has exceeded expectations in terms of student enrollment and financial performance, indicating the success of Lincoln's expansion strategy. The company has also signed new corporate partnerships and expanded existing ones, contributing to increased revenue and profitability.

Looking Ahead

Lincoln Educational Services is poised for continued growth, with plans to open new campuses and expand existing ones through program replications. The company's strategic initiatives, coupled with the increasing demand for skilled trades and healthcare professionals, position it well for future success.

Investor Insights

During the Q&A session, key shareholders and investors raised concerns about regulatory challenges in New York State and the potential impact of changes in administration on the company's operations. Scott Shaw addressed these concerns, expressing confidence in Lincoln's ability to navigate regulatory challenges and adapt to changes in the political landscape.

Conclusion

Lincoln Educational Services' strong financial performance and strategic growth initiatives in the third quarter of 2024 underscore its position as a leader in the skilled trades training sector. With a focus on innovation, expansion, and strategic partnerships, the company is well-positioned to meet the growing demand for middle skills training and contribute to the development of a productive workforce. The outlook for Lincoln Educational Services remains positive, with continued growth expected in the coming quarters.