I am not surprised that the SBA has started to approve and fund the greater EIDL financial loans up to $2 million. I do not have beef with the strategy of issuing these financial loans to borrowers who have been strike challenging by the pandemic. These firms require the money to recover and endure.
On the other hand, I am anxious about the issuing of these loans to corporations that have survived and even thrived in the course of the pandemic. The lackadaisical acceptance of these loans is far from a surprise, as the SBA needs barely any proof of financial damage to get them. It feels like the SBA, in extending the application deadline till the conclude of 2021, is acting like a company division rushing to devote its spending budget in the last quarter of the year because it doesn’t want to look poor for not investing it.
About the final several days, I have met and spoken with borrowers all throughout the place who have experienced the most worthwhile yr in the heritage of their companies very last year and are now possessing big EIDL loans wired into their accounts. Some of you may be asking, if this is the situation, why they are applying for far more EIDL money. The basic respond to is FOMO or “Panic of Missing Out.” Passing up on $2 million at 3.75 percent over 30 many years looks like a foolish point to do when approximately all people about you is getting the income and utilizing it carry their companies to the up coming level. Guaranteed, it is not the “proper” matter to do, but it really is a ton much easier not to really feel responsible when everyone else about you is also having benefit of it. If you don’t get benefit of this affordable funds, your competition might get a leg up on you.
I realize that each small business had a a bit unique strategy to handling the pandemic mainly because we had never ever noticed nearly anything like this just before. For case in point: In my community, there are two popular eating places beside each and every other that I liked to repeated. When the pandemic strike, just one restaurant did every thing in its ability to continue to be open up and continue to keep absolutely everyone utilized. Private protecting tools was ordered, tents were put up outdoors for outdoor dining, and they experienced their restaurant mentioned on every 3rd-occasion shipping and delivery method that was offered. They were established to make it by this.
On the other hand, the competing cafe simply just shut up, waited for the environment to reopen, and was in a position to endure due to the fact of the assist they been given from the governing administration. I know that “truthful” is not a expression that could ever be applied to business or lifetime, but I strongly admire these business owners who however have the generate and resolve to by no means settle for defeat.
I am not indicating that corporations shouldn’t have experienced any relief from the govt. There have been lots of firms that experienced a plan or discounts in area for a difficult season or two and ongoing to function difficult and do almost everything they could to remain afloat and it even now was not plenty of. For them, plans like the PPP and EIDL were a lifeline.
But as I see much more and more folks getting EIDL loans as a signifies to low cost dollars, and not always simply because they need it, I problem irrespective of whether or not it was the ideal shift to raise the EIDL cap. Inevitably, there will be a couple businesses called out for fraud, but the odds of that currently being you are slender to none. The SBA won’t have the potential to evaluate every single bank loan, and for that reason many will continue on to get absent devoid of repercussions for their steps.
Instagram has not too long ago been focusing on hashish-associated accounts for unclear motives. It’s seriously hurting a lot of makes and influencers in the hashish world given that the app has more than a billion monthly lively consumers. Now a lot more than ever, a fireproof social media promoting tactic is integral to the good results of any hashish company.
Next the community guidelines offered by the platform will protect your presence on it, but the seemingly countless list of regulations you are going to uncover there can be complicated. So, we broke down the most significant items to don’t forget when employing social media for your cannabiz.
Linked: What are the packaging legislation for cannabis solutions all-around the region? And how do they impact my youngsters?
Below are five tips to aid preserve your hashish business’ profile protected, and with any luck , properly-trafficked as well.
1. Concentrate on Natural Arrive at
Hashish is getting additional community acceptance lately in several states through the U.S., but social media platforms continue being fairly conservative on the matter considering the fact that they provide audiences all-around the globe. It is tricky to know what you can and simply cannot write-up to prevent a ban. For this motive, look at skipping the adverts and focusing on your natural and organic reach alternatively.
2. Know Your System
Just about every social media platform has unique guidelines. Twitter is more welcoming to the cannabis market, to the position they enable advertising and marketing in authorized marketplaces, this kind of as Canada.
Connected: Likely environmentally friendly, increasing greens: How the cannabis industry is addressing its power issue
On the other hand, Fb and Instagram have strict guidelines towards marijuana. These platforms use AI to distinguish posts and images with hashish in them. To steer clear of receiving banned or shadowbanned, study up on the group tips to discover about your boundaries.
3. Connect With Your Viewers
Aim on connecting with your audience instead than providing. After all, advertising your sales can get you banned on your picked out system.
Under no circumstances post anything with the intent to promote cannabis. Direct your customers to your web site or e mail in its place. Delete revenue-associated feedback to include your bases.
Relevant: Cannabis emoji continues to be elusive: When it will exist, what it might appear like, and why we really do not have just one (but)
The appropriate way to use social media is to create a powerful neighborhood. Supply superb customer assistance and maintain your viewers up-to-date with the latest news and updates.
4. Be Very careful with Your Hashtags
Most social media suggestions inform you to use hashtags relevant to your item and sector. On the other hand, this concept does not utilize to cannabis corporations.
Keep away from working with risky hashtags, these kinds of as #weed or #cannabis. Instagram flags and deletes these posts rapidly. Worse, your account can get a ban.
If you only obtained a shadowban, try eradicating all hashtags from your former submit. Lay very low and quit putting up for a several times. If all else fails, contact buyer guidance.
5. Strategy Your Content material
Be careful when putting up articles. As pointed out higher than, pictures made up of cannabis are a no-go. Pics depicting the use of weed are off-limits way too.
What can you article? Share the most recent news and updates about your sector. These tales can be from your internet site or other information sources.
Educational content material is important, such as content on the positive aspects of clinical marijuana. Search for a way to make it engaging and insert your voice to make your community. In no way post charges or nearly anything associated to the profits of hashish.
Cannabis electronic advertising and marketing is far more tough lately mainly because of intensified social media restrictions. With our social media suggestions, you can stay away from bans when creating a group.
Applications adhere to federal regulation, meaning they do not care whether you provide in a point out the place cannabis is authorized. Check out our tutorial to understand about these authorized locations today.
Ripple CEO Brad Garlinghouse speaks onstage in the course of Working day 1 of TechCrunch Disrupt SF 2018.
Steve Jennings | Getty Images for TechCrunch
Fintech begin-up Ripple on Tuesday mentioned it is launching a new products that lets economical companies firms offer their buyers the skill to obtain and market cryptocurrencies.
The San Francisco-primarily based corporation said the element, termed Liquidity Hub, will give its business customers entry to digital property from a range of sources which include market makers, exchanges and in excess of-the-counter investing desks.
Shoppers will be capable to offer you trading in a range of cryptocurrencies including bitcoin, ethereum, litecoin, ethereum traditional, bitcoin funds and XRP, Ripple said. The business also hopes to offer you other electronic belongings like NFTs, or non-fungible tokens, in future. The element is at present in a preview stage but is established to launch in 2022, Ripple reported.
Established in 2012, Ripple is intently linked with the cryptocurrency XRP. The organization marketplaces XRP to monetary firms as a sort of “bridge” for rushing up intercontinental payments with its On-Demand from customers Liquidity item.
With approximately $60 billion value of tokens in circulation, XRP is the seventh-most significant electronic forex globally, in accordance to CoinMarketCap information.
Ripple also sells a platform referred to as RippleNet, a monetary messaging services which is utilized by financial institutions and other fiscal institutions to mail money throughout borders. Ripple touts its featuring as a competitor to SWIFT, the world wide interbank payment network.
Ripple is in hot drinking water with the U.S. Securities and Exchange Commission more than XRP. The regulator is suing the firm and executives Brad Garlinghouse and Chris Larsen for allegedly elevating additional than $1.3 billion by an unregistered securities presenting. Ripple is preventing the suit, contending that XRP really should not be regarded a security.
The business is leaping into a new product class at a time when interest in cryptocurrencies has surged dramatically. Bitcoin and ether — the first and second-largest cryptocurrencies, respectively — both strike file highs this 7 days amid a wider rally in the crypto industry.
Crypto is looking at increased adoption between mainstream firms far too, with the likes of Mastercard, PayPal and Goldman Sachs now providing help for digital assets.
Asheesh Birla, standard manager of RippleNet, stated the firm’s new resource can be considered of as an “aggregator for numerous liquidity venues and specific assets, the way that Google Flights is for airways and flights.”
The products is virtually two a long time in the earning, Birla stated. Ripple stated its initial purchaser using the services is Coinme, a bitcoin trade and ATM operator centered in the U.S.
“We have a prolonged background of doing the job with fiscal institutions, crypto exchanges, brokerages and sector makers, which our organization prospects can now straight profit from,” Birla advised CNBC. “We are planning to guidance a variety of assets and have designs to broaden to additional tokenized assets like NFTs in the foreseeable future.”
Ripple mentioned it will also offer you its monetary companions traces of credit as a result of XRP to stay clear of them obtaining to pre-fund accounts for Liquidity Hub.
“Businesses executing this today have to park working capital at an trade even though ready for funds from weekend exercise to be deposited in a financial institution account,” Birla claimed. “We started out giving this as portion of ODL and it’s a person of our most sought immediately after features.”
Last privately valued at $10 billion, Ripple is just one of the world’s most important crypto start off-ups. It counts the likes of enterprise money company Andreessen Horowitz, Japanese money companies firm SBI Holdings and Spanish lender Santander as buyers.
On the other hand, U.S. regulatory uncertainty has been a important headwind for the business. Nevertheless, Ripple says it can be looking at greater traction in other marketplaces like Japan and the U.K., with intercontinental quantity at its ODL crypto solution developing 25-fold considering that the 3rd quarter of 2020.
“In spite of headwinds in the U.S. with the SEC, our traction with shoppers globally has not slowed down,” Birla explained.
Investors targeted on the Organization Expert services space have probable read of Marathon Digital Holdings (MARA), but is the inventory executing effectively in comparison to the rest of its sector peers? A person very simple way to answer this question is to take a glimpse at the year-to-day effectiveness of MARA and the rest of the Business enterprise Solutions group’s shares.
Marathon Electronic Holdings is one of 278 providers in the Enterprise Companies group. The Organization Providers group now sits at #5 inside the Zacks Sector Rank. The Zacks Sector Rank gauges the energy of our 16 individual sector teams by measuring the regular Zacks Rank of the particular person shares inside of the groups.
The Zacks Rank is a tested design that highlights a range of stocks with the right traits to outperform the marketplace around the following a person to three months. The process emphasizes earnings estimate revisions and favors firms with improving upon earnings outlooks. MARA is at this time sporting a Zacks Rank of #1 (Robust Invest in).
Around the previous 90 times, the Zacks Consensus Estimate for MARA’s whole-year earnings has moved 24.31{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} bigger. This is a signal of improving upon analyst sentiment and a good earnings outlook development.
Our newest accessible info exhibits that MARA has returned about 511.30{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} since the get started of the calendar 12 months. At the exact time, Company Solutions stocks have shed an common of 19.10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. This displays that Marathon Electronic Holdings is outperforming its peers so considerably this year.
Breaking matters down much more, MARA is a member of the Engineering Providers field, which consists of 134 specific providers and currently sits at #149 in the Zacks Market Rank. On normal, this group has dropped an average of 19.84{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} so significantly this yr, that means that MARA is accomplishing superior in terms of 12 months-to-day returns.
Traders in the Small business Services sector will want to keep a close eye on MARA as it attempts to continue its good efficiency.
Bitcoin, Like the World-wide-web Alone, Could Adjust Almost everything
Blockchain and cryptocurrency has sparked a single of the most enjoyable dialogue topics of a era. Some connect with it the “Internet of Money” and predict it could adjust the way money works endlessly. If genuine, it could do to banking companies what Netflix did to Blockbuster and Amazon did to Sears. Authorities concur we’re however in the early phases of this technology, and as it grows, it will produce many investing options.
Zacks’ has just revealed 3 organizations that can help buyers capitalize on the explosive profit likely of Bitcoin and the other cryptocurrencies with substantially significantly less volatility than purchasing them immediately.
MINNEAPOLIS, Nov. 8, 2021 /PRNewswire/ — Fusion Education Group will bring its one teacher to one student learning model to middle and high schoolers in Minneapolis this upcoming January when it opens its first campus located in Edina. Families and education professionals are invited to attend two upcoming events to learn more about Fusion’s personalized approach to education.
Every time we bring Fusion to a new area, and students immerse in it and flourish, said Jeff Poole, Fusion President
“Families here will join tens of thousands of families across the country who for nearly three decades have trusted Fusion Academy with their children’s education because of our personalized and accredited program,” said Jeff Poole, President of Fusion Academy. “Every time we bring Fusion to a new area, students immerse in it and flourish.”
Founded in San Diego, California in 1989, Fusion Academy’s approach to learning is grounded in its one-to-one model of one teacher to one student, with different teachers for different classes. Fusion has campuses across the country. When its doors open early next year, Fusion Academy Minneapolis will be the 63rd campus and the national educator’s first campus in Minnesota.
“The pandemic put the spotlight on how students learn. It gave parents a better understanding of the importance of the parent teacher relationship, and it heightened an appreciation for the importance of balancing the social and emotional needs of students with the academics,” Poole said. “That balance is the foundation of our program.”
Fusion teachers personalize instruction for student strengths, interests, and learning preferences. Schedules are also customized so students take classes at a time of day that works best for them. Athletes, actors, and students with extracurricular passions can schedule school around their life instead of the other way around. Other students who attend Fusion include gifted or accelerated students, students with mild learning differences such as dyslexia, or those seeking a more personalized learning experience.
Fusion Academy Minneapolis will host two events for education professionals, and families and community members interested in the new school.
Tuesday November 9, from noon to 1 p.m., Fusion Academy Minneapolis Director of Outreach Linda Roslansky will hold a virtual professional networking event for education and therapeutic professionals. Participants can learn more about Fusion and broaden their community referral networks. Registration can be found here.
Wednesday, November 10, from 5 p.m. to 7 p.m., at the Hughes Pavilion, at 7449 France Avenue South, Edina. Interested families can meet the Minneapolis team and learn more about Fusion’s Love, Motivate, Teach model. Light refreshments will be served. Registration can be completed here.
Fusion’s approach ensures students are better prepared academically, socially, and emotionally for their future. Fusion Academy student surveys show dramatic increases in academic engagement, positive relationships, and emotional support:
95{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of students report being academically engaged at Fusion, up from 47{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} at their previous school
93{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of students report having positive relationships at Fusion, up from 37{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} before enrolling.
87{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of students reported that they received the emotional support they needed within their first three months at Fusion, up from 27{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} before enrolling.
“Fusion is unique in so many ways, it’s something you really need to see to believe,” said Fusion Academy Minneapolis Head of School Meghan Bennett. “No one does school like us. We start with students and build a journey that is theirs and theirs alone.”
Fusion Academy utilizes an array of assessment tools to create a custom learning roadmap for students. Upon enrollment Fusion students take two assessments Measures of Academy Progress (MAP®) and Mindprint, which help students understand both their level of mastery, as well as how they process information, how their memory works, and how they reason.
“These tools help us understand where students are both academically and how they learn; together they concretely empower the student and teacher,” said Jacob Phillips, Regional Director of Admissions. “When we bring forth a clear journey for families who have often spent years in education settings that have not worked, a remarkable chapter of student learning begins. This transformation is why Fusion is so well-regarded by school counselors, education consultants and therapists, whom we are grateful to for their consistent student referrals.”
Like traditional schools, every Fusion campus fosters social interaction. The Homework Café spaces not only ensure students complete their homework before leaving for the day, but the cafés are also social hubs; where student meetings occur, clubs meet, and more. Fusion campuses also feature a state-of-the-art recording studio, a mixed-media art studio, and a science lab with college-level tools. Fusion Academies are intended to remain small, serve as a haven from large traditional schools, and rarely exceed 100 students. Students can attend Fusion full-time for middle and high school, part-time tutoring, credit classes, or college counselling. Fusion students have been accepted to more than 200 unique colleges and universities, many being their first-choice school.
Fusion Academy Minneapolis will open for in-person learning at its a temporary location at 7550 France Avenue, Suite 130, in Edina in January of 2022. Fusion’s permanent location is expected to open across the street at 7545 France Ave S in the spring of 2022. Interested families can tour a Fusion campus school virtually by calling (952) 219-7996 or learn more here.
About Fusion Academy:
Fusion Academy Minneapolis is one of 63 academies serving grades 6 through 12 that provide quality individualized education. Fusion Academy is part of Fusion Education Group an organization committed to providing accredited personalized education and also includes Futures Academy, that offers one-to-one and small group instruction at 15 California campuses, Barnstable which offers traditional college-prep in a small school setting in New Jersey, and Fusion Global Academy which offers one-to-one personalized education for middle and high school students through a completely virtual campus that currently serves students in the United States and 15 additional countries.
The MAP® assessment is an independent assessment developed by NWEA (Northwest Evaluation Association) and used worldwide. MAP® covers three areas: Language Usage, Mathematics, and Reading, and creates a personalized testing experience by adjusting questions based on a student’s ongoing performance. Fusion teachers utilize the results to gain a more accurate sense of the content a student has mastered.
About Mindprint
Mindprint is a cognitive assessment that reveals why a student is performing at a certain level. This tool helps teachers understand a student’s cognitive process while working to identify where challenges might occur due to processing speed, memory, executive functions, or complex reasoning.
Fusion Academies are fully accredited middle and high school and can accept students at any point in the year for full-time enrollment. Classes at Fusion are one-to-one: one student and one teacher per classroom. This allows teachers to personalize course content for each student’s strengths, interests, and learning style. Our thoughtfully designed approach of love, motivate, teach, sets a strong foundation of trust and understanding.
At Fusion Academy all teaching is personalized to the student’s strengths, interests, and learning preferences. Our teachers ensure a student truly learns the material before moving on to new topics (mastery learning). Students learn best when they feel safe, cared for, engaged, and confident in themselves as learners. We believe positive, authentic relationships are the key to unlocking the incredible potential each and every student has.
PARSIPPANY, N.J., Nov. 08, 2021 (GLOBE NEWSWIRE) — Lincoln Educational Services Corporation (Nasdaq: LINC) today, reported operating and financial results for the third quarter ended September 30, 2021 as well as recent business developments.
Third Quarter 2021 Financial Highlights and Recent Operating Developments
Revenue of $89.1 million, a 13.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase compared to prior year quarter
Operating income of $5.7 million, up 49.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} compared to prior year quarter
Adjusted EBITDA* of $8.4 million compared to $6.3 million for the prior year quarter
Student starts of 5,430 compared to 5,510 for the prior year quarter despite limited access to high schools over the past 18 months due to COVID restrictions
Ending student population of 14,000, up 6.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} compared to prior year quarter
Net cash of $31.3 million at quarter end, compared net debt of $1.5 million last year
Recently announced fourth quarter closing of the $46.5 million sale-leaseback transaction involving Denver, CO and Grand Prairie, TX properties further strengthens balance sheet
*See Use of “Non-GAAP Financial Information” below.
“Our team performed well during the third quarter as we generated better than expected high school starts, driving revenue growth into the fourth quarter,” said Scott Shaw, President & CEO. “ We also achieved continued enrollment strength, ending the quarter with a student population 6.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher than last year. Employers remain extremely challenged at finding skilled employees, which is increasing the already strong demand for Lincoln graduates and leading to additional opportunities with existing and potential corporate partners.”
“The real estate transactions announced in September have been moving forward and we recently closed on the first of these, the sale-leaseback of our Denver and Grand Prairie properties. The net cash proceeds from this transaction have been used to retire all of our outstanding debt and provide approximately $28.5 million in net proceeds, which will be recorded in the fourth quarter. With our significantly increased financial resources, we believe that we are well positioned to execute our growth strategies for the foreseeable future while continuing to invest in our core programs and operations. The combination of our third quarter performance and continued operational and financial momentum enables us to refine our 2021 full year guidance.”
2021 THIRD QUARTER FINANCIAL RESULTS (Quarter ended September 30, 2021 compared to quarter ended September 30, 2020)
Revenue increased $10.3 million, or 13.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $89.1 million from $78.8 million. The increase in revenue results from an 8.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher average student population, driven by the 8.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in student starts for the nine months, and a 4.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in average revenue per student in the current quarter.
Educational services and facilities expense increased $3.9 million, or 11.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $38.1 million from $34.2 million in the prior year comparable period. Additional costs were concentrated in instruction expense, books and tools expense and facilities expense. Instructional increases were driven in part by inflationary pressures on instructor salaries due to widespread instructor shortages and higher student population, which also drove additional books and tools expense. Facilities expense increased from the normalization of housing expenses for students during the quarter.
Selling, general and administrative expense increased $4.5 million, or 11.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $45.2 million driven primarily by increases in incentive and stock-based compensation due to our improved financial performance in addition to increased marketing investments
Operating income increased to $5.7 million from $3.8 million
Pre-tax income increased to $5.5 million from $3.6 million
Net income improved to $3.8 million, or $0.11 per diluted share, compared to $3.5 million, or $0.08 per diluted share
THIRD QUARTER SEGMENT RESULTS Transportation and Skilled Trades Segment Revenue increased $8.1 million, or 14.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $64.9 million from $56.8 million in the prior year comparable period. The increase in revenue results from a 10.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher average student population, driven by the 10.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in student starts for the nine months, and a 3.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in average revenue per student in the current quarter.
Operating income improved to $11.8 million from $9.1 million in the prior year comparable quarter, driven mainly by revenue growth.
Healthcare and Other Professions Segment Revenue increased $2.1 million, or 9.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $24.1 million from $22.0 million in the prior year comparable period. The increase in revenue results from a 4.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher average student population, driven by the 5.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in student starts for the nine months, and a 5.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in average revenue per student in the current quarter.
Operating income increased to $1.8 million from $1.7 million in the prior year comparable quarter. Operating leverage during the quarter was impacted by higher operating expenses, primarily driven by inflationary pressures on instructor salaries due to the widespread instructor shortage, especially in the nursing field.
Corporate and Other This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $7.9 million and $6.9 million for each of the three months ended September 30, 2021 and 2020, respectively. The additional expense in 2021 was primarily due to incentive and stock-based compensation tied in part to improved financial performance.
NINE MONTHS FINANCIAL RESULTS (Period ended September 30, 2021 compared to September 30, 2020)
Total revenue increased by $36.2 million, or 17.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $247.5 million, compared to $211.3 million
Student starts grew by 1,026, or 8.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 12,681 compared to 11,655
Transportation and Skilled Trades segment revenue increased by $28.8 million, or 19.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $177.6 million, compared to $148.8 million
The Healthcare and Other Professions segment revenue increased by $7.4 million, or 11.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $69.9 million, compared to $62.5 million
Operating income increased to $15.2 million as compared to $3.7 million
FULL YEAR 2021 OUTLOOK As a result of the Company’s performance through the first nine months of 2021 and management’s outlook for the remainder of the year, Lincoln is now refining its 2021 full year guidance as follows:
Revenue growth in the range of 12{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 14{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Student start growth in the range of 7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted EBITDA* in the range of $35.0 million to $37.0 million
Pre-tax Income in the range of $25.0 million to $27.0 million
Capital expenditures of approximately $7.5 million
The above full year guidance excludes the gain related to the sale-leaseback transaction and the associated expenses in the fourth quarter.
*See Use of “Non-GAAP Financial Information” below.
CONFERENCE CALL INFO Lincoln will host a conference call today at 10:00 a.m. Eastern Daylight Time to discuss results. To access the live webcast of the conference call, please go to the Investor Relations section of Lincoln’s website at http://www.lincolntech.edu.
Participants can also listen to the conference call by dialing 844-413-0946 (domestic) or 216-562-0456 (international) and providing access code 4862849.
Please log in or dial into the call at least 10 minutes prior to the start time.
A replay of the call will also be available for seven days by calling 855-859-2056 (domestic) or 404-537-3406 (international) and providing access code 4862849.
ABOUT LINCOLN EDUCATIONAL SERVICES CORPORATION Lincoln Educational Services Corporation is a provider of diversified career-oriented post-secondary education helping to provide solutions to America’s skills gap. For 75 years, Lincoln has offered and continues to offer recent high school graduates and working adults degree and diploma programs. The Company operates under two reportable segments: Transportation and Skilled Trades and Healthcare and Other Professions. Lincoln has provided the nation’s workforce with skilled technicians since its inception in 1946. For more information, go to www.lincolntech.edu.
SAFE HARBOR Statements in this press release and in oral statements made from time to time by representatives of Lincoln Educational Services Corporation regarding Lincoln’s business that are not historical facts, including those made in a conference call, may be “forward-looking statements” as that term is defined in the federal securities law. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Generally, these statements relate to business plans or strategies and projections involving anticipated revenues, earnings or other aspects of the Company’s operating results. Such forward-looking statements include the Company’s current belief that it is taking appropriate steps regarding the pandemic and that students will return from leaves of absence and be able to complete their programs of study with in-person labs and available externships and that student growth will continue. The Company cautions you that these statements concern current expectations about the Company’s future performance or events and are subject to a number of uncertainties, risks and other influences many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projects upon which the statements are based including, without limitation, impacts related to the COVID-19 pandemic, our inability to close on the sale of our Nashville campus; our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely regulatory approvals in connection with acquisitions or a change of control of our Company; our success in updating and expanding the content of existing programs and developing new programs for our students in a cost-effective manner or on a timely basis; risks associated with changes in applicable federal laws and regulations; uncertainties regarding our ability to comply with federal laws and regulations, such as the 90/10 rule and prescribed cohort default rates; risks associated with the opening of new campuses; risks associated with integration of acquired schools; industry competition; our ability to execute our growth strategies; conditions and trends in our industry; the COVID-19 pandemic and its impact on our business and the U.S. and global economics; general economic conditions; and other factors discussed in the “Risk Factors” section of our Annual Reports and Quarterly Reports filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Lincoln undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise after the date hereof.
(Tables to Follow) (In Thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Unaudited)
(Unaudited)
2021
2020
2021
2020
REVENUE
$
89,059
$
78,792
$
247,520
$
211,303
COSTS AND EXPENSES:
Educational services and facilities
38,105
34,251
104,143
90,733
Selling, general and administrative
45,209
40,700
128,159
117,011
Loss (gain) on disposition of assets
–
1
1
(96
)
Total costs & expenses
83,314
74,952
232,303
207,648
OPERATING INCOME
5,745
3,840
15,217
3,655
OTHER:
Interest expense
(292
)
(278
)
(874
)
(960
)
INCOME BEFORE INCOME TAXES
5,453
3,562
14,343
2,695
PROVISION FOR INCOME TAXES
1,614
50
3,589
150
NET INCOME
$
3,839
$
3,512
$
10,754
$
2,545
PREFERRED STOCK DIVIDENDS
304
1,074
912
1,074
INCOME AVAILABLE TO COMMON SHAREHOLDERS
$
3,535
$
2,438
$
9,842
$
1,471
Basic
Net income per common share
$
0.11
$
0.08
$
0.30
$
0.05
Diluted
Net income per common share
$
0.11
$
0.08
$
0.30
$
0.05
Weighted average number of common shares outstanding:
Basic
25,135
24,822
25,043
24,721
Diluted
25,135
24,822
25,043
24,721
Other data:
Adjusted EBITDA (1)
$
8,430
$
6,292
$
22,930
$
10,488
Depreciation and amortization
$
1,928
$
1,782
$
5,620
$
5,546
Number of campuses
22
22
22
22
Average enrollment
13,178
12,165
12,666
11,379
Stock-based compensation
$
757
$
670
$
2,093
$
1,287
Net cash provided by operating activities
$
16,683
$
3,754
$
17,750
$
10,222
Net cash used in investing activities
$
(1,736
)
$
(482
)
$
(5,252
)
$
(3,457
)
Net cash used in financing activities
$
(804
)
$
(1,647
)
$
(3,374
)
$
(17,816
)
Selected Consolidated Balance Sheet Data:
September 30, 2021
(Unaudited)
Cash and cash equivalents
$
47,150
Current assets
110,953
Working capital
42,078
Total assets
253,456
Current liabilities
68,875
Long-term debt obligations, including current portion, net of deferred financing fees
15,848
Series A convertible preferred stock
11,982
Total stockholders’ equity
101,963
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company believes it is useful to present non-GAAP financial measures that exclude certain significant items as a means to understand the performance of its business. EBITDA, Adjusted EBITDA and reconciled net cash (debt) are measures not recognized in financial statements presented in accordance with GAAP.
We define EBITDA as income (loss) before interest expense (net of interest income), provision (benefit) for income taxes, depreciation and amortization.
We define Adjusted EBITDA as EBITDA plus stock compensation expense.
We define reconciled net cash (debt) as our cash and cash equivalents and restricted cash less both the short and long-term portion under the Company’s credit agreement, deferred financing fees, and amounts received under the CARES Act.
EBITDA, Adjusted EBITDA and reconciled net cash (debt) are presented because we believe they are useful indicators of our performance and our ability to make strategic acquisitions and meet capital expenditures and debt service requirements. However, they are not intended to represent cash flows from operations as defined by GAAP and should not be used as an alternative to net income (loss) as indicators of operating performance or cash flow as a measure of liquidity. EBITDA, Adjusted EBITDA and reconciled net cash (debt) are not necessarily comparable to similarly titled measures used by other companies.
Following is a reconciliation of net income (loss) to EBITDA, Adjusted EBITDA and reconciled net cash (debt):
