Lincoln Educational Services Corporation Reports Fourth Quarter And 2012 Year End Results

WEST ORANGE, N.J., March 6, 2013 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (Nasdaq:LINC) ("Lincoln") today reported fourth quarter and 2012 year end results.

Highlights:

Quarterly -
  • Revenue from continuing operations of $102.5 million for the fourth quarter of 2012, representing a decrease of 8.3% from $111.8 million for the fourth quarter of 2011.  
  • Adjusted EBITDA for the fourth quarter of 2012 of $15.6 million compared to Adjusted EBITDA of $20.8 million in the prior-year quarter. Diluted loss per share from continuing operations of $0.40 for the fourth quarter of 2012 as compared to diluted earnings per share from continuing operations of $0.33 for the fourth quarter of 2011. Loss per share for the fourth quarter of 2012 includes goodwill and long-lived asset non-cash impairment charges of $0.71. Excluding these charges, earnings per share for the fourth quarter was $0.31.

Yearly -
  • Revenue from continuing operations of $402.7 million for the year ended December 31, 2012, representing a decrease of 18.1% from $491.8 million for the year ended December 31, 2011.  
  • Adjusted EBITDA for the year ended December 31, 2012 was $31.9 million compared to Adjusted EBITDA of $75.4 million in the prior year. Diluted loss per share from continuing operations was $1.08 for the year ended December 31, 2012 as compared to diluted earnings per share from continuing operations of $0.96 for the year ended December 31, 2011. Loss per share and earnings per share for 2012 and 2011 includes goodwill and long-lived asset non-cash impairment charges of $1.11 and $0.23, respectively. Excluding these charges, earnings per share for the year ended December 31, 2012 was $0.03 as compared to $1.19 for the year ended December 31, 2011.

2013 Guidance –
  • Revenue and Diluted EPS essentially flat with 2012, estimated at $395 to $405 million and a loss per share of ($0.05) to diluted earnings per share of $0.05, respectively.  
  • Student starts from continuing operations in 2013 are expected to increase in the second half of 2013 and remain flat for the year as compared to 2012.  
  • For the first quarter of 2013, we expect revenues of $88.0 million to $92.0 million, representing a decrease of approximately 11% over the first quarter of 2012, and a loss per share of $0.30 to $0.35.  Guidance for the first quarter of 2013 is based on a decrease in starts of 17% to 20%.  The reduction in starts for the first quarter is due to the continued loss of ability to benefit (or ATB) students during the second half of 2012 and our elimination of our fully online program in the first half of 2012.  Excluding the impact of these items, student starts from continuing operations are expected to be flat to down 5% as compared to the first quarter of 2012.  
  • The Board of Directors has set the record and payment dates for the dividend for the first quarter of 2013.   The cash dividend of $0.07 per share will be payable on March 29, 2013 to shareholders of record on March 15, 2013.

Comment and Outlook

"We believe that 2012 was the trough in our business as we strategically refocused the company on our skilled training programs," said Shaun McAlmont, Lincoln's President and Chief Executive Officer. "We managed this retrenchment while continuing to improve our key student outcomes such as job placement as well as persistence rates and maintaining an exemplary regulatory compliance record. From a financial point of view, we remained profitable from continuing operations excluding impairment charges and generated positive cash flows for the year.

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