Lincoln Educational Services Corporation · NASDAQ:LINC
Lincoln Educational Services — Shareholder Meeting (May 2023)
18 slides from Lincoln Educational Services's shareholder meeting presentation, May 8, 2023
Slide 1: 2023 Shareholders' Meeting, Year Ended December 31, 2022
PUT YOUR POTENTIAL TO WORK 2023 Shareholders’ Meeting Year Ended December 31, 2022
Slide 2: Lincoln Graduates are Essential Workers
Lincoln Graduates are Essential Workers 2 Approximately 90% of our students are pursuing careers that the U.S Department of Homeland Security considers Essential Critical Infrastructure Workers.
Slide 3: Demand for "Middle Skills Training"
Demand for “Middle Skills Training” 3 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) Lincoln connects employers with entry level trained professionals from the adult, hi
Slide 4: Financial Trends Total Year 2019 – 2022
Financial Trends Total Year 2019 – 2022 4 Refer to appendix for adjusted EBITDA Reconciliation Revenue includes transitional segment Adjusted starts and average population exclude transitional segment
Slide 5: Revenue, Starts, & Average Population: Total Year
5 Revenue, Starts, & Average Population: Total Year($ in millions) Revenue Average Pop Starts 3.9% Excludes Transitional Segment
Slide 6: Investment Opportunity
Investment Opportunity Employers cannot find enough technically trained employees and with the infrastructure bill passed demand for skilled workers should be even greater Lincoln is a leading, technical, hands-on educator and trainer serving high demand industries (transportation, skilled trades an
Slide 7: Drivers of Organic Demand for Training
Silver Tsunami – aging baby-boomers retiring from the workplace Growing skepticism of the value of college Employers struggle to find interested candidates Simple jobs have become more complex with technology Strong demand in healthcare, manufacturing and construction Infrastructure spending will ex
Slide 8: Significant Opportunity for Organic Growth
Significant Opportunity for Organic Growth BLS data for annual new hires for Lincoln’s top programs National figures cited above are based on projected annual job openings which refers to the average annual job openings due to growth and net replacement. This data was compiled from the U.S. Dept. of
Slide 9: IPEDS data for 2021 graduates
9 Based on IPEDS (The Integrated Postsecondary Education Data System) data collected for 2021 graduates
Slide 10: Lincoln's Growth Strategy
New Programs for 2023 Medical Assisting at 1 campus Electrical at 1 campus HVAC at 1 campus 2024: 7 additional programs Efficiencies through Centralization and Automation resulting in cost optimization Expansion of standardization hybrid teaching model Buy : Acquisition Strategic acquisition to expa
Slide 11: Campuses Across the Country
Campuses Across the Country 11 Opportunity for expansion in the South and West
Slide 12: EBITDA Growth 2022 - 2025
EBITDA Growth 2022 - 2025 * Adjusted EBITDA, excludes stock-based compensation * Does not include any future campuses 12
Slide 13: Our Superior Educational Approach
Our Superior Educational Approach 13 Feedback Integration Student Support Industrial Infrastructure Engaging Curriculum Graduation and Placement Employment Assistance Develop training programs with feedback from employers and key industry associations to understand gaps and needs Integrate industry
Slide 14: Growing Base of Industry Partners
Growing Base of Industry Partners Positions Lincoln as long-term solutions provider for both entry level technicians and advanced workforce training Employers appreciate the technical and soft skills of our students Partners provide validation of the quality of our education Co-branding opportunitie
Slide 15: Compliance Stats
Compliance Stats 15 90/10 Rule : This rule caps the percentage of revenue that a proprietary institution can receive from federal financial aid sources at 90%; the other 10% of revenue must come from alternative sources. CDR : It is the percentage of a school's borrowers who enter repayment on certa
Slide 16: Experienced Management Team
Experienced Management Team (Years at Lincoln) 16 Scott Shaw President and CEO (21) Brian Meyers EVP, CFO & Treasurer (19) Stephen Buchenot EVP of Campus Operations (30) Chad Nyce EVP, Chief Innovation Officer (2) Alexandra Luster SVP, General Counsel & Secretary (27) Susan English SVP of Career Ser
Slide 17: Board of Directors
Board of Directors J. Barry Morrow Non-Executive Chairman, Lincoln Educational Services; Founder & Chief Executive Officer, BK Capital Group James J. Burke, Jr. Founder & Managing Partner, JJB Capital Partners LLC Kevin M. Carney Former Executive Vice President & Chief Financial Officer, Web.com Gro
Slide 18: Investment Merits
A national leader in hands-on transportation, skilled trades, and healthcare training Organic revenue growth with increasing profitability The skills gap will drive growth for the next decade In a down economy, Lincoln’s growth and profitability can increase substantially Opportunities to expand foo
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