Lincoln Educational Services Corporation · NASDAQ:LINC
Lincoln Educational Services — Shareholder Meeting (June 2020)
25 slides from Lincoln Educational Services's shareholder meeting presentation, Jun 22, 2020
Slide 1: Lincoln Educational Services 2020 Annual Meeting of Shareholders
Lincoln Educational Services Corporation2020 Annual Meeting of Shareholders Welcome
Slide 2: Put Your Potential to Work: Year Ending 2019
PUT YOUR POTENTIAL TO WORK Year Ending 2019
Slide 3: Cautionary Statement
Cautionary Statement Statements during this Annual Meeting regarding Lincoln’s business that are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Forward-looking statements should not be read as a guarantee of future performance or results and will not n
Slide 4: Demand for Middle Skills Training
Demand for “Middle Skills Training” 4 Middle-skill jobs, which require education beyond high school but not a four-year degree, make up the largest part of America’s labor market. (Source: National Skills Coalition)
Slide 5: Lincoln Graduates are Essential Workers
Lincoln Graduates are Essential Workers 5 Approximately 90% of our students are pursuing careers that the U.S Department of Homeland Security considers Essential Critical Infrastructure Workers.
Slide 6: Drivers of Organic Demand for Training
Drivers of Organic Demand for Training 6
Slide 7: Significant Opportunity for Organic Growth
Significant Opportunity for Organic Growth 7 BLS data for annual new hires for Lincoln’s top programs Transportation and Skilled Trades Healthcare and Other Professions Automotive Technology 76,000 LPN 63,000 Diesel Technology 42,000 Medical Assisting 95,000 Collision Repair 17,100 Dental Assisting
Slide 8: Lincoln Tech: Company Overview
LINCOLN TECH Company Overview
Slide 9: A national leader with nearly 75 years of experience
Nasdaq : LINC 9 A national leader with nearly 75 years of experienceFocused on providing hands-on training serving national, large regional, and local employers in transportation, skilled trades, and healthcareStrong student outcomes and regulatory recordThe growing “middle skills gap” will drive gr
Slide 10: Campuses Across the Country
Campuses Across the Country 10 Opportunity for expansion in the South and West
Slide 11: Pro Forma Operations: Annual Revenue, Starts, & Average Population
Pro Forma Operations Annual Revenue, Starts, & Average Population* ($ in millions) 11 Revenue Average Population Starts $245 $257 * 2017 & 2018 exclude transitional segment (closed schools) and are presented as pro forma operations. +3.7% +7.7% +5.0%
Slide 12: Pro Forma Operations
Pro Forma Operations ($ in millions) 12 Approximately 11,300 students enrolled at 22 campuses as of 12/31/2019Nine consecutive quarters of start growthKey metrics such as revenue, student starts, student graduation, and placement rates continue to grow Margin4.9% * 2017 & 2018 exclude transitional s
Slide 13: Transportation and Skilled Trades
Transportation and Skilled Trades ($ in millions) 13 Approximately 7,400 students enrolled at 13 campuses as of 12/31/2019High demand for training in Automotive, Diesel, HVAC, CNC, Welding, ElectricalGrowing list of industry partners Margin15.1% Margin14.2%
Slide 14: Healthcare and Other Professions
Healthcare and Other Professions ($ in millions) 14 Approximately 3,900 students at 9 campuses as of 12/31/2019Growing demand for healthcare professionalsStrong demand by students especially for Licensed Practical Nursing Margin10.0%
Slide 15: Increasing Profitability
Increasing Profitability ($ in millions) 15 Lincoln’s EBITDA has increased in each quarter of 2019 as compared to 20182019 EBITDA was $13.4M
Slide 16: EBITDA & Net Income Pro Forma Summary
EBITDA & Net Income Pro Forma Summary* ($ in millions) 16 * 2017 & 2018 exclude transitional segment (closed schools) and are presented as pro forma operations. Refer to appendix.
Slide 17: Earnings Per Share
[i] uncown tecw Earnings Per Share 2017 2018 2019 $(0.27) $(0.48) 7
Slide 18: Balance Sheet & Cash Flow Summaries
Balance Sheet & Cash Flow Summaries 18
Slide 19: November 2019 Transactions
November 2019 Transactions ($ in millions) 19 Strengthened liquidity position provides flexibility to execute growth initiativesIncreased available liquidity by more than $30 millionAnnualized interest expense savings of approximately $1 millionNew $60 million credit facility$20 million funded term
Slide 20: Growing Base of Industry Partners
Growing Base of Industry Partners 20 Positions Lincoln as long-term solutions provider for both entry level technicians and advanced workforce trainingEmployers appreciate the technical and soft skills of our studentsPartners provide validation of the quality of our educationCo-branding opportunitie
Slide 21: Entering 2020: a New Chapter for Lincoln
Entering 2020 : a New Chapter for Lincoln 21
Slide 22: 2020 Priorities Pre-COVID-19
2020 Priorities Pre-COVID-19 22 * These financial goals were per-COVID 19 and guidance was withdrawn on May 13, 2020
Slide 23: Impact of COVID-19
23 Initial Response Medium Term Longer Term Impact of COVID-19
Slide 24: Investment Merits
Investment Merits 24 A national leader in hands-on transportation, skilled trades, and healthcare trainingOrganic revenue growth with increasing profitabilityThe skills gap will drive growth for the next decadeOpportunities to expand footprint and program offerings for additional growthCapacity at c
Slide 25: Thank You
[i] uncown tec Thank You
Lincoln Educational Services — Shareholder Meeting (June 2020) on 6ix