LINC - Lincoln Education Services falls after guidance earnings miss disappoint market

• Lincoln Education Services ( NASDAQ: LINC ) stock slides sharply on Monday after the company reported second quarter's miss on both lines with guidance coming in below the consensus estimate.
• The education services company said it expects its FY 2022 revenue to range between $340-$350M vs. consensus of $355.43M.
• Student start decline / growth is expected between -3% to 3%; Adjusted EBITDA in the range of $25M to $30M; and Net Income between $10-$15M.
• Capital expenditure for the full-year is forecasted to range between $8-$11M, while the company plans to invest about $12M in capex to completely renovate the interior of its Atlanta, Georgia new facility which is expected to open in third quarter of 2023.
• Second Quarter revenue of  $82.1M (+2.0% Y/Y) missed by $1.37M. By segment, transportation and skilled trades segment revenue was up 1.8% to $57M; and healthcare and other professions segment revenue increased 2.9% to $24.1M Y/Y;
• However, student starts rose by 4.0%
• Adjusted EBITDA was $8.3M compared to $12.8M in the prior year.
• GAAP EPS of $0.00 misses by $0.04.
• The company ended the quarter with $67M in cash and debt free.
• "We announced the development of a second campus in the Atlanta metropolitan market that we forecast will add $20 million a year in revenue and $5 million of EBITDA within four years of its opening. In addition, we entered into three new corporate partnerships with industry leaders in the electric vehicle market, automotive paints and coatings, and collision repair segments," noted Scott Shaw, President & CEO.
• LINC shares are down 11% , Monday, to trade at $6.53 vs. 52-week trading range of $4.95 to $8.20

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