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Nordstrom Reports Fourth Quarter 2022 Earnings, Announces Wind-Down of Canadian Business

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March 5, 2023

Sales and earnings in line with updated fiscal 2022 outlook
Entering fiscal 2023 with healthier inventory position, down 15 percent from last year and comparable to 2019
Company provides fiscal 2023 outlook, including plans to wind down Canadian operations to drive profitable growth and enhance shareholder value

SEATTLE, March 2, 2023 /PRNewswire/ — Nordstrom, Inc. (NYSE: JWN) today reported fourth quarter net earnings of $119 million, or $0.74 per diluted share (“EPS”), and earnings before interest and taxes (“EBIT”) of $187 million, or 4.5 percent of sales, for the quarter ended January 28, 2023.

For the fiscal year ended January 28, 2023, net earnings were $245 million and diluted EPS was $1.51, with EBIT of $465 million, or 3.1 percent of sales. Excluding a gain on the sale of the Company’s interest in a corporate office building, Trunk Club wind-down costs and a supply chain technology and related asset impairment charge, all of which were reported in the first three quarters, adjusted EBIT was $502 million, or 3.3 percent of sales, and adjusted EPS was $1.69 for fiscal 2022.¹

For the fourth quarter ended January 28, 2023, net sales decreased 4.1 percent versus the same period in fiscal 2021 and gross merchandise value (“GMV”) decreased 4.2 percent. Nordstrom banner net sales decreased 2.4 percent and GMV decreased 2.5 percent compared with the fourth quarter of 2021. Net sales for Nordstrom Rack decreased 8.1 percent.

“We took decisive actions to right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty. We also made the difficult decision to wind down operations in our Canadian business. This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc. “As we enter fiscal 2023, we are focused on enhancing the customer experience, improving Nordstrom Rack performance, increasing inventory productivity and continuing to advance our supply chain optimization initiatives. We remain confident in the strength of our brands and our ability to drive profitable growth and deliver long-term value to our shareholders.”

In the fourth quarter, men’s apparel had the strongest growth versus 2021. For fiscal 2022, men’s apparel, shoes and women’s apparel had the strongest growth versus 2021.

“While the incremental markdowns in the second half impacted our margins, we are better positioned for a stronger 2023. Our actions have given us increased flexibility to react more quickly to changing customer demand and provide the newness and fashion our customers love,” said Pete Nordstrom, president and chief brand officer of Nordstrom, Inc. “We want to thank our teams for all their hard work helping our customers feel good and look their best.”

As previously announced on February 28, 2023, the board of directors declared a quarterly cash dividend of $0.19 per share to be paid to shareholders of record at the close of business on March 14, 2023, payable on March 29, 2023. During fiscal 2022, the Company repurchased 2.8 million shares of its common stock for $62 million under its existing $500 million share repurchase program. A total capacity of $438 million remains available under this share repurchase authorization.

FOURTH QUARTER 2022 SUMMARY

Total Company net sales in the fourth quarter decreased 4.1 percent compared with the same period in fiscal 2021. Full-year revenue for fiscal 2022, including retail sales and credit card revenues, increased 5.0 percent compared with fiscal 2021. GMV decreased 4.2 percent in the fourth quarter and increased 5.0 percent in fiscal 2022 when compared with the same periods in 2021.
For the Nordstrom banner, net sales in the fourth quarter decreased 2.4 percent compared with the same period in fiscal 2021. GMV decreased 2.5 percent and increased 6.9 percent in the fourth quarter and in the fiscal year, respectively, when compared with the same periods in 2021.
For the Nordstrom Rack banner, net sales decreased 8.1 percent compared with the same period in fiscal 2021. Eliminating store fulfillment for Nordstrom Rack digital orders in the third quarter negatively impacted fourth quarter Rack banner net sales by approximately 500 basis points.
Digital sales in the fourth quarter decreased 13.1 percent compared with the same period in fiscal 2021. Eliminating store fulfillment for Nordstrom Rack digital orders in the third quarter and sunsetting Trunk Club earlier in fiscal 2022 negatively impacted fourth quarter digital sales by approximately 500 basis points. Digital sales represented 40 percent of total sales during the quarter and 38 percent of sales for the fiscal year.
Gross profit, as a percentage of net sales, of 33.2 percent decreased 525 basis points compared with the same period in fiscal 2021 primarily due to higher markdown rates, as the Company prioritized rightsizing inventory levels in a highly promotional environment.
Ending inventory decreased 15.2 percent compared with the same period in fiscal 2021, versus a 4.1 percent decrease in sales.
Selling, general and administrative (“SG&A”) expenses, as a percentage of net sales, of 31.5 percent decreased 240 basis points compared with the same period in fiscal 2021, primarily due to supply chain expense efficiencies.
EBIT was $187 million in the fourth quarter of 2022, compared with $299 million during the same period in fiscal 2021, primarily due to higher markdowns, partially offset by supply chain expense efficiencies. EBIT was $465 million for fiscal 2022, and adjusted EBIT of $502 million excluded a gain on the sale of the Company’s interest in a corporate office building, wind-down costs related to Trunk Club and a supply chain technology and related asset impairment charge, all of which were reported in the first three quarters.² EBIT margin was 4.5 percent of sales for the quarter, which was 235 basis points lower than the fourth quarter of 2021. EBIT margin and adjusted EBIT margin for the fiscal year were 3.1 percent and 3.3 percent, respectively.²
Interest expense, net, of $27 million decreased from $33 million during the same period in fiscal 2021, due to higher interest income and reduced credit facility borrowings.
Income tax expense during the fourth quarter was $41 million, or 25.2 percent of pretax earnings, compared with $66 million, or 24.8 percent of pretax earnings, in the same period of fiscal 2021. The full-year income tax rate was 27.2 percent.
The Company ended the year with $1.5 billion in available liquidity, including $687 million in cash and the full $800 million available on its revolving line of credit, and a leverage ratio of 3.1 times.

STORES UPDATE

During fiscal 2022, the Company opened three stores:

City	Location	Square Footage (000s)	Timing of Opening
ASOS \| Nordstrom
Los Angeles, CA	The Grove	30	May 20, 2022
Nordstrom Rack
Phoenix, AZ	Desert Ridge Marketplace	24	October 27, 2022
Riverside, CA	Canyon Springs Marketplace	30	October 27, 2022

The Company has also announced plans to open or relocate the following stores:

City	Location	Square Footage (000s)	Timing of Opening
Nordstrom Rack
Birmingham, AL	The Summit (relocation from River Ridge)	27	Spring 2023
Los Angeles, CA	NOHO West	26	Spring 2023
Chattanooga, TN	The Terrace at Hamilton Place	24	Spring 2023
Wichita, KS	Bradley Fair	28	Spring 2023
Delray Beach, FL	Delray Place	26	Spring 2023
Clovis, CA	Clovis Crossing	31	Spring 2023
San Clemente, CA	San Clemente Plaza	32	Spring 2023
Las Vegas, NV	Best in the West	31	Spring 2023
Union Gap, WA	Valley Mall	28	Fall 2023
Olympia, WA	Cooper Point Marketplace	32	Fall 2023
Salem, OR	Willamette Town Center	25	Fall 2023
Anaheim Hills, CA	Anaheim Hills Festival	24	Fall 2023
Overland Park, KS	Overland Crossing	27	Fall 2023
San Luis Obispo, CA	SLO Promenade	24	Fall 2023
Allen, TX	The Village at Allen	29	Fall 2023
Visalia, CA	Sequoia Mall	29	Fall 2023
Pinole, CA	Pinole Vista Crossing	23	Fall 2023
Denton, TX	Denton Crossing	25	Fall 2023
Aurora, CO	Southlands	30	Fall 2023
Kennesaw, GA	Barrett Place	25	Spring 2024

The Company had the following store counts as of quarter-end:

	January 28, 2023	January 29, 2022
Nordstrom
Nordstrom – U.S.	94	94
Nordstrom – Canada	6	6
Nordstrom Local service hubs	7	7
ASOS \| Nordstrom	1	—
Nordstrom Rack
Nordstrom Rack – U.S.	241	240
Nordstrom Rack – Canada	7	7
Last Chance clearance stores	2	2
Total	358	356

Gross store square footage	27,571,000	27,555,000

During the fourth quarter, the Company closed one Nordstrom Rack store.

NORDSTROM WINDS DOWN CANADIAN OPERATIONS

As part of its initiatives to drive long-term profitable growth and enhance shareholder value, and after careful consideration of all reasonably available options, the Company also announced today it has decided to discontinue support for Nordstrom Canada’s business operations.³

“We regularly review every aspect of our business to make sure that we are set up for success,” said Erik Nordstrom. “We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business. We want to thank our team for their performance and dedication in serving customers in Canada. This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders.”

Accordingly, Nordstrom Canada has commenced a wind-down of its operations, obtaining an Initial Order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (“CCAA”) earlier today to facilitate the wind-down in an orderly fashion.

Nordstrom Canada intends to wind down its Nordstrom and Nordstrom Rack stores across Canada, with the help of a third-party liquidator, and its Canadian e-commerce platform. The e-commerce platform will cease operations on March 2, 2023. The in-store wind-down is anticipated to be completed by late June 2023.

The Company expects that Nordstrom Canada will be deconsolidated from the Company’s financial statements as of the date of the CCAA filing. The Company expects to report approximately $300 million to $350 million of pre-tax charges related to the wind-down in the first quarter of fiscal 2023, driven primarily by the write-down of the Company’s investment in Nordstrom Canada. The wind-down is expected to result in an approximately $400 million decline in total Company net sales and a $35 million improvement in total Company EBIT in fiscal 2023, relative to fiscal 2022, excluding the aforementioned charges associated with the wind-down.

Nordstrom Canada operates six Nordstrom stores and seven Nordstrom Rack stores, as well as the Nordstrom.ca website, and employs approximately 2,500 people.

FISCAL YEAR 2023 OUTLOOK

The Company is providing the following financial outlook for fiscal 2023, which includes a 53rd week. The Company’s outlook also includes the anticipated impact of the wind-down of Canadian operations:

Revenue decline, including retail sales and credit card revenues, of 4.0 to 6.0 percent versus fiscal 2022, including an approximately 250 basis point negative impact from the wind-down of Canadian operations and an approximately 130 basis point positive impact from the 53rd week
EBIT margin (including the negative impact of charges related to the wind-down of Canadian operations) of 1.2 to 2.1 percent of sales
Adjusted EBIT margin (excluding charges related to the wind-down of Canadian operations) of 3.7 to 4.2 percent of sales⁴
Income tax rate of approximately 32 percent, including an approximately 500 basis point unfavorable impact from the one-time Canada charges
EPS (including the negative impact of charges related to the wind-down of Canadian operations) of $0.20 to $0.80, excluding the impact of share repurchase activity, if any
Adjusted EPS (excluding charges related to the wind-down of Canadian operations) of $1.80 to $2.20, excluding the impact of share repurchase activity, if any⁴

CONFERENCE CALL INFORMATION

The Company’s senior management will host a conference call to provide a business update and to discuss fourth quarter 2022 financial results and fiscal year 2023 outlook at 4:45 p.m. Eastern Standard Time today. To listen to the live call online and view the speakers’ prepared remarks and the conference call slides, visit the Investor Relations section of the Company’s corporate website at investor.nordstrom.com. An archived webcast with the speakers’ prepared remarks and the conference call slides will be available in the Quarterly Results section for one year. Interested parties may also dial 201-689-8354. A telephone replay will be available beginning approximately three hours after the conclusion of the call by dialing 877-660-6853 or 201-612-7415 and entering Conference ID 13735859, until the close of business on March 9, 2023.

ABOUT NORDSTROM

At Nordstrom, Inc. (NYSE: JWN), we exist to help our customers feel good and look their best. Since starting as a shoe store in 1901, how to best serve customers has been at the center of every decision we make. This heritage of service is the foundation we’re building on as we provide convenience and true connection for our customers. Our digital-first platform enables us to serve customers when, where and how they want to shop – whether that’s in-store at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations or digitally through our Nordstrom and Rack apps and websites. Through it all, we remain committed to leaving the world better than we found it.

Certain statements in this press release contain or may suggest “forward-looking” information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties that could cause results to be materially different from expectations. The words “will,” “may,” “designed to,” “outlook,” “believes,” “should,” “targets,” “anticipates,” “assumptions,” “plans,” “expects” or “expectations,” “intends,” “estimates,” “forecasts,” “guidance” and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address such future events or expectations are forward-looking statements. Important factors that could cause actual results to differ materially from these forward-looking statements are detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022, its Form 10-Qs for the fiscal quarters ended April 30, 2022, July 30, 2022 and October 29, 2022, and our Form 10-K for the fiscal year ended January 28, 2023, to be filed with the SEC on or about March 10, 2023. In addition, forward-looking statements contained in this release may be impacted by the actual outcome of events or occurrences related to the wind-down of business operations in Canada. These forward-looking statements are not guarantees of future performance and speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information or future circumstances. In addition, the actual timing, price, manner and amounts of future share repurchases, if any, will be subject to the discretion of our board of directors, contractual commitments, market and economic conditions and applicable Securities and Exchange Commission rules.

NORDSTROM, INC. CONSOLIDATED STATEMENTS OF EARNINGS (unaudited; amounts in millions, except per share amounts)

	Quarter Ended		Year Ended
	January 28, 2023	January 29, 2022	January 28, 2023	January 29, 2022
Net sales	$4,200	$4,382	$15,092	$14,402
Credit card revenues, net	119	104	438	387
Total revenues	4,319	4,486	15,530	14,789
Cost of sales and related buying and occupancy costs	(2,807)	(2,699)	(10,019)	(9,344)
Selling, general and administrative expenses	(1,325)	(1,488)	(5,046)	(4,953)
Earnings before interest and income taxes	187	299	465	492
Interest expense, net	(27)	(33)	(128)	(246)
Earnings before income taxes	160	266	337	246
Income tax expense	(41)	(66)	(92)	(68)
Net earnings	$119	$200	$245	$178

Earnings per share:
Basic	$0.75	$1.26	$1.53	$1.12
Diluted	$0.74	$1.23	$1.51	$1.10

Weighted-average shares outstanding:
Basic	160.1	159.5	160.1	159.0
Diluted	161.6	162.4	162.1	162.5

Percent of net sales:
Gross profit	33.2 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	38.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	33.6 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	35.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Selling, general and administrative expenses	31.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	34.0 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	33.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	34.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Earnings before interest and income taxes	4.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	6.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

NORDSTROM, INC. CONSOLIDATED BALANCE SHEETS (unaudited; amounts in millions)

	January 28, 2023	January 29, 2022
Assets
Current assets:
Cash and cash equivalents	$687	$322
Accounts receivable, net	265	255
Merchandise inventories	1,941	2,289
Prepaid expenses and other current assets	316	306
Total current assets	3,209	3,172

Land, property and equipment (net of accumulated depreciation of $8,289 and $7,737)	3,351	3,562
Operating lease right-of-use assets	1,470	1,496
Goodwill	249	249
Other assets	466	390
Total assets	$8,745	$8,869

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$1,238	$1,529
Accrued salaries, wages and related benefits	291	383
Current portion of operating lease liabilities	258	242
Other current liabilities	1,203	1,160
Total current liabilities	2,990	3,314

Long-term debt, net	2,856	2,853
Non-current operating lease liabilities	1,526	1,556
Other liabilities	634	565

Commitments and contingencies

Shareholders’ equity:
Common stock, no par value: 1,000 shares authorized; 160.1 and 159.4 shares issued and outstanding	3,353	3,283
Accumulated deficit	(2,588)	(2,652)
Accumulated other comprehensive loss	(26)	(50)
Total shareholders’ equity	739	581
Total liabilities and shareholders’ equity	$8,745	$8,869

NORDSTROM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited; amounts in millions)

	Year Ended
	January 28, 2023	January 29, 2022
Operating Activities
Net earnings	$245	$178
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization expenses	604	615
Asset impairment	80	—
Right-of-use asset amortization	185	175
Deferred income taxes, net	(83)	(11)
Stock-based compensation expense	59	79
Other, net	(46)	81
Change in operating assets and liabilities:
Accounts receivable, net	23	(10)
Merchandise inventories	265	(383)
Prepaid expenses and other assets	(24)	542
Accounts payable	(190)	(400)
Accrued salaries, wages and related benefits	(94)	31
Other current liabilities	44	112
Lease liabilities	(269)	(284)
Other liabilities	147	(20)
Net cash provided by operating activities	946	705

Investing Activities
Capital expenditures	(473)	(506)
Proceeds from the sale of assets and other, net	80	(15)
Net cash used in investing activities	(393)	(521)

Financing Activities
Proceeds from revolving line of credit	100	400
Payments on revolving line of credit	(100)	(400)
Proceeds from long-term borrowings	—	675
Principal payments on long-term borrowings	—	(1,100)
Change in cash book overdrafts	(14)	(32)
Cash dividends paid	(119)	—
Payments for repurchase of common stock	(62)	—
Proceeds from issuances under stock compensation plans	29	14
Tax withholding on share-based awards	(16)	(15)
Make-whole premium payment and other, net	(4)	(86)
Net cash used in financing activities	(186)	(544)

Effect of exchange rate changes on cash and cash equivalents	(2)	1
Net increase (decrease) in cash and cash equivalents	365	(359)
Cash and cash equivalents at beginning of year	322	681
Cash and cash equivalents at end of year	$687	$322

NORDSTROM, INC.
ADJUSTED EBIT, ADJUSTED EBITDA, ADJUSTED EBIT MARGIN
AND ADJUSTED EPS (NON-GAAP FINANCIAL MEASURES)
(unaudited; amounts in millions, except per share amounts)

The following are key financial metrics and, when used in conjunction with GAAP measures, we believe they provide useful information for evaluating our core business performance, enable comparison of financial results across periods and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making. Adjusted earnings before interest and income taxes (“EBIT”), adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”), adjusted EBIT as a percent of net sales (“adjusted EBIT margin”) and adjusted EPS exclude certain items that we do not consider representative of our core operating performance. The financial measure calculated under GAAP which is most directly comparable to adjusted EBIT and adjusted EBITDA is net earnings. The financial measure calculated under GAAP which is most directly comparable to adjusted EBIT margin is net earnings as a percent of net sales. The financial measure calculated under GAAP which is most directly comparable to adjusted EPS is earnings per diluted share.

Adjusted EBIT, adjusted EBITDA, adjusted EBIT margin and adjusted EPS are not measures of financial performance under GAAP and should be considered in addition to, and not as a substitute for, net earnings, net earnings as a percent of net sales, operating cash flows, earnings per share, earnings per diluted share or other financial measures performed in accordance with GAAP. Our method of determining non-GAAP financial measures may differ from other companies’ financial measures and therefore may not be comparable to methods used by other companies. The following is a reconciliation of net earnings to adjusted EBIT and adjusted EBITDA and net earnings as a percent of net sales to adjusted EBIT margin:

	Quarter Ended		Year Ended
	January 28, 2023	January 29, 2022	January 28, 2023	January 29, 2022
Net earnings	$119	$200	$245	$178
Income tax expense	41	66	92	68
Interest expense, net	27	33	128	246
Earnings before interest and income taxes	187	299	465	492
Supply chain impairment	—	—	70	—
Trunk Club wind-down costs	—	—	18	—
Gain on sale of interest in a corporate office building	—	—	(51)	—
Adjusted EBIT	187	299	502	492
Depreciation and amortization expenses	151	138	604	615
Amortization of developer reimbursements	(17)	(19)	(72)	(78)
Adjusted EBITDA	$321	$418	$1,034	$1,029

Net sales	$4,200	$4,382	$15,092	$14,402
Net earnings as a {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of net sales	2.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	4.6 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	1.6 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	1.2 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
EBIT margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	4.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	6.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted EBIT margin {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	4.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	6.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.3 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	3.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

The following is a reconciliation of earnings per diluted share to adjusted EPS:

	Quarter Ended		Year Ended
	January 28, 2023	January 29, 2022	January 28, 2023	January 29, 2022
Earnings per diluted share	$0.74	$1.23	$1.51	$1.10
Supply chain impairment	—	—	0.44	—
Trunk Club wind-down costs	—	—	0.11	—
Gain on sale of interest in a corporate office building	—	—	(0.31)	—
Debt refinancing charges included within interest expense, net	—	—	—	0.54
Income tax impact on adjustments¹	—	—	(0.06)	(0.13)
Adjusted EPS	$0.74	$1.23	$1.69	$1.51

¹	The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate for the respective non-GAAP adjustment.

NORDSTROM, INC.
SUMMARY OF NET SALES
(unaudited; amounts in millions)

Our Nordstrom brand includes Nordstrom.com, Nordstrom U.S. stores, Canada, which includes Nordstrom.ca, Nordstrom Canadian stores and Nordstrom Rack Canadian stores, Nordstrom Local, ASOS | Nordstrom and, prior to October 2022, TrunkClub.com. Our Nordstrom Rack brand includes NordstromRack.com, Nordstrom Rack U.S. stores and Last Chance clearance stores. The following table summarizes net sales for the quarter and year ended January 28, 2023, compared with the quarter and year ended January 29, 2022:

	Quarter Ended		Year Ended
	January 28, 2023	January 29, 2022	January 28, 2023	January 29, 2022
Net sales:
Nordstrom	$2,955	$3,027	$10,279	$9,640
Nordstrom Rack	1,245	1,355	4,813	4,762
Total net sales	$4,200	$4,382	$15,092	$14,402

Net sales (decrease) increase:
Nordstrom	(2.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})	23.3 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	6.6 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	37.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Nordstrom Rack	(8.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})	23.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	1.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	41.7 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total Company	(4.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550})	23.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	4.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	39.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Digital sales as {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of total net sales¹	40 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	44 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	38 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	42 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Sales conducted through a digital platform such as our websites or mobile apps. Digital sales may be self-guided by the customer, as in a traditional online order, or facilitated by a salesperson using a virtual styling or selling tool. Digital sales may be delivered to the customer or picked up in our Nordstrom stores, Nordstrom Rack stores or Nordstrom Local service hubs. Digital sales also includes a reserve for estimated returns.

NORDSTROM, INC.
FISCAL YEAR 2023 OUTLOOK – ADJUSTED EBIT MARGIN AND ADJUSTED EPS
(NON-GAAP FINANCIAL MEASURES)
(unaudited)

Our adjusted EBIT as a percent of net sales (“adjusted EBIT margin”) and adjusted EPS outlook for fiscal year 2023 excludes the impact from certain items that we do not consider representative of our core operating performance. These items include the wind-down of our Canadian operations in 2023.

The following is a reconciliation of expected net earnings as a percent of net sales to expected adjusted EBIT margin included within our Fiscal Year 2023 Outlook:

	53 Weeks Ending February 3, 2024
	Low	High
Expected net earnings as a {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of net sales	0.3 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	0.9 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Income tax expense	0.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	0.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Interest expense, net	0.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	0.8 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Expected EBIT as a {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of net sales	1.2 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	2.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Wind-down of Canadian operations	2.5 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	2.1 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Expected adjusted EBIT margin	3.7 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	4.2 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

The following is a reconciliation of expected EPS to expected adjusted EPS included within our Fiscal Year 2023 Outlook:

	53 Weeks Ending February 3, 2024
	Low	High
Expected EPS	$0.20	$0.80
Wind-down of Canadian operations	2.15	1.84
Income tax impact on adjustment	(0.55)	(0.44)
Expected adjusted EPS	$1.80	$2.20

NORDSTROM, INC.
ADJUSTED RETURN ON INVESTED CAPITAL (“ADJUSTED ROIC”)
(NON-GAAP FINANCIAL MEASURE)
(unaudited; dollar amounts in millions)

We believe that Adjusted ROIC is a useful financial measure for investors in evaluating the efficiency and effectiveness of the capital we have invested in our business to generate returns over time. In addition, we have incorporated it in our executive incentive measures, and we believe it is an important indicator of shareholders’ return over the long term.

Adjusted ROIC is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, return on assets, net earnings, total assets or other GAAP financial measures. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Adjusted ROIC is return on assets. The following shows the components to reconcile the return on assets calculation to Adjusted ROIC:

	Four Quarters Ended
	January 28, 2023	January 29, 2022
Net earnings	$245	$178
Income tax expense	92	68
Interest expense	138	247
Earnings before interest and income tax expense	475	493

Operating lease interest¹	85	87
Adjusted net operating profit	560	580

Estimated income tax expense²	(152)	(159)
Adjusted net operating profit after tax	$408	$421

Average total assets	$9,069	$9,301
Average deferred property incentives in excess of ROU assets³	(197)	(232)
Average non-interest bearing current liabilities	(3,185)	(3,352)
Average invested capital	$5,687	$5,717

Return on assets	2.7 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	1.9 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted ROIC	7.2 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}	7.4 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

¹	Operating lease interest is a component of operating lease cost recorded in occupancy costs. We add back operating lease interest for purposes of calculating adjusted net operating profit for consistency with the treatment of interest expense on our debt.
²	Estimated income tax expense is calculated by multiplying the adjusted net operating profit by the effective tax rate for the trailing twelve month periods ended January 28, 2023 and January 29, 2022. The effective tax rate is calculated by dividing income tax expense by earnings before income taxes for the same trailing twelve month periods.
³	For leases with property incentives that exceed the ROU assets, we reclassify the amount from assets to other current liabilities and other liabilities on the Consolidated Balance Sheets. The current and non-current amounts are used to reduce average total assets above, as this better reflects how we manage our business.

NORDSTROM, INC.
ADJUSTED DEBT TO EBITDAR (NON-GAAP FINANCIAL MEASURE)
(unaudited; dollar amounts in millions)

Adjusted debt to earnings before interest, income taxes, depreciation, amortization and rent (“EBITDAR”) is one of our key financial metrics and we believe that our debt levels are best analyzed using this measure, as it provides a reflection of our creditworthiness which could impact our credit ratings and borrowing costs. This metric is calculated in accordance with the updates in our new Revolver covenant and is a key component in assessing whether our revolving credit facility is secured or unsecured, as well as our ability to make dividend payments and share repurchases. Our goal is to manage debt levels to achieve and maintain investment-grade credit ratings while operating with an efficient capital structure.

Adjusted debt to EBITDAR is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, debt to net earnings, net earnings, debt or other GAAP financial measures. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Adjusted debt to EBITDAR is debt to net earnings. The following shows the components to reconcile the debt to net earnings calculation to Adjusted debt to EBITDAR:

	January 28, 2023
Debt	$2,856
Operating lease liabilities	1,784
Adjusted debt	$4,640

Four Quarters Ended January 28, 2023
Net earnings	$245
Income tax expense	92
Interest expense, net	128
Earnings before interest and income taxes	$465

Depreciation and amortization expenses	604
Operating lease cost¹	280
Amortization of developer reimbursements²	72
Other Revolver covenant adjustments³	61
Adjusted EBITDAR	$1,482

Debt to Net Earnings	11.6
Adjusted debt to EBITDAR	3.1

¹	Operating lease cost is fixed rent expense, including fixed comment area maintenance expense, net of developer reimbursement amortization.
²	Amortization of developer reimbursements is a non-cash reduction of operating lease cost and is therefore added back to operating lease cost for purposes of our Revolver covenant calculation.
³	Other adjusting items to reconcile net earnings to Adjusted EBITDAR as defined by our Revolver covenant include interest income, certain non-cash charges and other gains and losses where relevant. For the four quarters ended January 28, 2023, other Revolver covenant adjustments primarily included costs associated with a supply chain technology and related asset impairment and the wind-down of Trunk Club, partially offset by a gain on sale of the Company’s interest in a corporate office building.

NORDSTROM, INC.
FREE CASH FLOW (NON-GAAP FINANCIAL MEASURE)
(unaudited; amounts in millions)

Free Cash Flow is one of our key liquidity measures and, when used in conjunction with GAAP measures, we believe it provides investors with a meaningful analysis of our ability to generate cash from our business.

Free Cash Flow is not a measure of financial performance under GAAP and should be considered in addition to, and not as a substitute for, operating cash flows or other financial measures prepared in accordance with GAAP. Our method of calculating a non-GAAP financial measure may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The financial measure calculated under GAAP which is most directly comparable to Free Cash Flow is net cash provided by operating activities. The following is a reconciliation of net cash provided by operating activities to Free Cash Flow:

	Year Ended
	January 28, 2023	January 29, 2022
Net cash provided by operating activities	$946	$705
Capital expenditures	(473)	(506)
Change in cash book overdrafts	(14)	(32)
Free Cash Flow	$459	$167

SOURCE Nordstrom, Inc.

March 2, 2023

Record fourth quarter revenue of $60.6 million, up 6.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from the fourth quarter of 2021
Record full year 2022 revenue of $209.0 million, up 86.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 2021
Cost reduction initiatives on-track to deliver $100 million in aggregate, annualized cost savings in 2023, prioritizing path to profitability
Initiates full year 2023 revenue guidance of between $210 and $260 million

BOSTON, March 01, 2023–(BUSINESS WIRE)–Desktop Metal, Inc. (NYSE: DM) today announced financial results for the fourth quarter and full year ended December 31, 2022.

“Desktop Metal delivered record revenue for fourth quarter and full year 2022, fueled by our differentiated portfolio of AM 2.0 mass production solutions, our strong market position, and the team’s solid execution amidst an unsteady macro environment,” said Ric Fulop, Founder and CEO of Desktop Metal. “We also took actions to streamline the business and expanded our cost reduction plans to $100 million in annualized cost savings to prioritize our path to profitability and position the business for long-term growth. As a result, we enter 2023 a stronger, more resilient company focused on driving another year of revenue growth at scale, delivering on our cost reduction measures, and dramatically improving adjusted EBITDA and cash flow, in order to capitalize on the next stage of secular growth in the additive manufacturing market.”

Recent Business Highlights:

Continued and expanded the cost reduction plan announced in 2022 to add an additional $50 million in annualized savings after successfully completing $50 million in annualized savings in 2022. Total combined $100 million in annualized cost savings are on-track in order to reduce expense structure, drive margin expansion, and prioritize path to profitability
Announced strategic collaboration with Align Technology to accelerate adoption of digital dentistry in the $30 billion annual dental parts market. Align’s market-leading iTero intraoral scanners will be offered as a seamless managed service to dentists in a subscription model with recurring revenue, enabling a gateway for a connected suite of digital dentistry solutions with a workflow backed by Desktop Labs’ experienced network of digitized dental laboratories and premium Desktop Health 3D printers and materials
Commenced shipments of Production System™ P-50 in 2022 including continued traction with automotive, industrial, and other major end markets. Recently signed master supply agreement with one of the largest consumer electronics companies in the world
Launched the all-new S-Max Flex^® for affordable and scalable digital sand casting, leveraging Single Pass Jetting™ technology
Unveiled FreeFoam, a revolutionary, expandable 3D printable resin designed for volume production of foam parts
Launched Figur G15, the first commercial platform of its kind to shape standard sheet metal on demand using patent-pending Digital Sheet Forming (DSF) technology
Installations of additive manufacturing systems for metal parts surpassed 1,100 units including some of largest production deployments in additive manufacturing

Fourth Quarter 2022 Financial Highlights:

Revenue of $60.6 million, up 6.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from the fourth quarter of 2021
GAAP gross margin of 13.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}; non-GAAP gross margin of 24.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a sequential improvement of 440 basis points from the third quarter of 2022
GAAP net loss of $312.4 million, including $269.3 million of goodwill impairment and $10.1 million of amortization of acquired intangible assets; non-GAAP net loss of $24.0 million
Adjusted EBITDA of $(21.1) million

Full Year 2022 Financial Highlights:

Revenue of $209.0 million, up 86.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 2021
Revenue contribution of 24{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from high-margin consumables, services, and subscription
GAAP gross margin of 7.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}; non-GAAP gross margin of 22.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
GAAP net loss of $740.3 million, including $498.8 million of goodwill impairment and $38.7 million of amortization of acquired intangible assets; non-GAAP net loss of $130.7 million
Adjusted EBITDA of $(118.4) million
Cash, cash equivalents, and short-term investments of $184.5 million as of December 31, 2022

Outlook for Full Year 2023:

Revenue expectation of between $210 to $260 million for full year 2023
Adjusted EBITDA expectation of between $(50) to $(25) million for full year 2023, with expectation to achieve Adjusted EBITDA breakeven before year end 2023

Desktop Metal has not provided a reconciliation of its Adjusted EBITDA outlook to net income because estimates of all of the reconciling items cannot be provided without unreasonable efforts. See “Non-GAAP Financial Information.”

Conference Call Information:

Desktop Metal will host a conference call on Wednesday, March 1, 2023 at 4:30 p.m. ET to discuss fourth quarter and full year 2022 results. Participants may access the call at 1-877-407-4018, international callers may use 1-201-689-8471, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online at the Events & Presentations section of https://ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.

About Desktop Metal:

Desktop Metal (NYSE:DM) is driving Additive Manufacturing 2.0, a new era of on-demand, digital mass production of industrial, medical, and consumer products. Our innovative 3D printers, materials, and software deliver the speed, cost, and part quality required for this transformation. We’re the original inventors and world leaders of the 3D printing methods we believe will empower this shift, binder jetting and digital light processing. Today, our systems print metal, polymer, sand and other ceramics, as well as foam and recycled wood. Manufacturers use our technology worldwide to save time and money, reduce waste, increase flexibility, and produce designs that solve the world’s toughest problems and enable once-impossible innovations. Learn more about Desktop Metal and our #TeamDM brands at www.desktopmetal.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in these communications, including statements regarding Desktop Metal’s future results of operations and financial position, financial targets, business strategy, plans and objectives for future operations, are forward-looking statements. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to risks associated with the integration of the business and operations of acquired businesses, our ability to realize the benefits from cost saving measures, and supply and logistics disruptions, including shortages and delays. For more information about risks and uncertainties that may impact Desktop Metal’s business, financial condition, results of operations and prospects generally, please refer to Desktop Metal’s reports filed with the SEC, including without limitation the “Risk Factors” and/or other information included in the Form 10-K filed with the SEC on March 1, 2023, and such other reports as Desktop Metal has filed or may file with the SEC from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Desktop Metal, Inc. assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

DESKTOP METAL, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts)

	December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	76,291		$	65,017
Current portion of restricted cash		4,510			2,129
Short‑term investments		108,243			204,569
Accounts receivable		38,481			46,687
Inventory		91,736			65,399
Prepaid expenses and other current assets		17,155			18,208
Total current assets		336,416			402,009
Restricted cash, net of current portion		1,112			1,112
Property and equipment, net		56,271			58,710
Goodwill		112,955			639,301
Intangible assets, net		219,830			261,984
Other noncurrent assets		27,763			25,480
Total Assets	$	754,347		$	1,388,596
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	25,105		$	31,558
Customer deposits		11,526			14,137
Current portion of lease liability		5,730			5,527
Accrued expenses and other current liabilities		26,723			33,829
Current portion of deferred revenue		13,719			18,189
Current portion of long‑term debt, net of deferred financing costs		584			825
Total current liabilities		83,387			104,065
Long-term debt, net of current portion		311			548
Convertible notes		111,834			—
Contingent consideration, net of current portion		—			4,183
Lease liability, net of current portion		17,860			13,077
Deferred revenue, net of current portion		3,664			4,508
Deferred tax liability		8,430			10,695
Other noncurrent liabilities		1,359			3,170
Total liabilities		226,845			140,246
Commitments and Contingencies (Note 17)
Stockholders’ Equity
Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively		—			—
Common Stock, $0.0001 par value—500,000,000 shares authorized; 318,235,106 and 311,737,858 shares issued at December 31, 2022 and December 31, 2021, respectively, 318,133,434 and 311,473,950 shares outstanding at December 31, 2022 and December 31, 2021, respectively		32			31
Additional paid‑in capital		1,874,792			1,823,344
Accumulated deficit		(1,308,954	)		(568,611	)
Accumulated other comprehensive loss		(38,368	)		(6,414	)
Total Stockholders’ Equity		527,502			1,248,350
Total Liabilities and Stockholders’ Equity	$	754,347		$	1,388,596

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)

	Years Ended December 31,
	2022			2021			2020
Revenues
Products	$	190,248		$	105,994		$	13,718
Services		18,775			6,414			2,752
Total revenues		209,023			112,408			16,470
Cost of sales
Products		178,952			87,450			26,945
Services		15,000			6,665			4,574
Total cost of sales		193,952			94,115			31,519
Gross profit (loss)		15,071			18,293			(15,049	)
Operating expenses
Research and development		96,878			68,131			43,136
Sales and marketing		68,091			47,995			13,136
General and administrative		83,065			78,041			20,734
In-process research and development assets acquired		—			25,581			—
Goodwill impairment		498,800			—			—
Total operating expenses		746,834			219,748			77,006
Loss from operations		(731,763	)		(201,455	)		(92,055	)
Change in fair value of warrant liability		—			(56,576	)		56,417
Interest expense		(1,743	)		(149	)		(328	)
Interest and other (expense) income, net		(8,335	)		(11,822	)		1,011
Loss before income taxes		(741,841	)		(270,002	)		(34,955	)
Income tax benefit		1,498			29,668			940
Net loss	$	(740,343	)	$	(240,334	)	$	(34,015	)
Net loss per share—basic and diluted	$	(2.35	)	$	(0.92	)	$	(0.22	)
Weighted average shares outstanding, basic and diluted		314,817			260,770			157,906

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands)

	Years Ended December 31,
	2022			2021			2020
Net loss	$	(740,343	)	$	(240,334	)	$	(34,015	)
Other comprehensive (loss) income, net of taxes:
Unrealized gain (loss) on available-for-sale marketable securities, net		(290	)		(40	)		(84	)
Foreign currency translation adjustment		(31,664	)		(6,365	)		—
Total comprehensive (loss) income, net of taxes of $0	$	(772,297	)	$	(246,739	)	$	(34,099	)

DESKTOP METAL, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands, except share amounts)

													Accumulated
													Other
								Additional					Comprehensive		Total
	Legacy Convertible Preferred Stock				Common Stock			Paid‑in		Accumulated			(Loss)		Stockholders’
	Shares		Amount		Shares	Amount		Capital		Deficit			Income		Equity

BALANCE—January 1, 2020	100,038,109		$	436,553	26,813,113	$	3	$	16,722	$	(294,262	)	$	75	$	(277,462	)
Retroactive application of recapitalization (Note 1)	(100,038,109	)

November 3, 2022

Here's what the Fed's interest rate hike means for you

The Federal Reserve raised the target federal funds rate by 0.75 percentage point for the fourth time in a row on Wednesday, marking an unprecedented pace of rate hikes.

The U.S. central bank has raised the benchmark short-term borrowing rate a total of six times this year, including 75 basis point increases in June, July and September, in an effort to cool down inflation, which is still near 40-year highs and causing most consumers to feel increasingly cash strapped. A basis point is equal to 0.01 of a percentage point.

A policy statement after the announcement noted that the Fed is considering the “cumulative” impact of its hikes so far when determining future rate increases. Economists are hoping this signals plans to “step-down” the pace of increases going forward, which could mean a half point hike at the December meeting and then a few smaller raises in 2023. Still, stocks tumbled after Federal Reserve Chair Jerome Powell said there were more rate hikes ahead.

“Americans are under greater financial strain, there’s no question,” said Chester Spatt, professor of finance at Carnegie Mellon University’s Tepper School of Business and former chief economist of the Securities and Exchange Commission.

More from Personal Finance:
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However, “as the Fed tightens, this also has adverse effects on everyday Americans,” he added.

The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and saving rates they see every day.

By raising rates, the Fed makes it costlier to take out a loan, causing people to borrow and spend less, effectively pumping the brakes on the economy and slowing down the pace of price increases.

Inflation hit a new high since 1981. What is inflation and what causes it?

“Unfortunately, the economy will slow much faster than inflation, so we’ll feel the pain well before we see any gain,” said Greg McBride, Bankrate.com’s chief financial analyst.

Already, “mortgage rates have rocketed to 16-year highs, home equity lines of credit are the highest in 14 years, and car loan rates are at 11-year highs,” he said.

• Mortgage rates are already higher. Even though 15-year and 30-year mortgage rates are fixed and tied to Treasury yields and the economy, anyone shopping for a home has lost considerable purchasing power, in part because of inflation and the Fed’s policy moves.

Along with the central bank’s vow to stay tough on inflation, the average interest rate on the 30-year fixed-rate mortgage hit 7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, up from below 4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} back in March.

On a $300,000 loan, a 30-year, fixed-rate mortgage at December’s rate of 3.11{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} would have meant a monthly payment of about $1,283. Today’s rate of 7.08{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} brings the monthly payment to $2,012. That’s an extra $729 a month or $8,748 more a year, and $262,440 more over the lifetime of the loan, according to LendingTree.

The increase in mortgage rates since the start of 2022 has the same impact on affordability as a 35{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in home prices, according to McBride’s analysis. “If you had been approved for a $300,000 mortgage in the beginning of the year, that’s the equivalent of less than $200,000 today.”

For home buyers, “adjustable-rate mortgages may continue to be more popular among consumers seeking lower monthly payments in the short term,” said Michele Raneri, vice president of U.S. research and consulting at TransUnion. “And consumers looking to tap into available home equity may continue to look towards HELOCs,” she added, rather than refinancing.

Ye t adjustable-rate mortgages and home equity lines of credit are pegged to the prime rate, so those will also increase. Most ARMs adjust once a year, but a HELOC adjusts right away. Already, the average rate for a HELOC is up to 7.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 4.24{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} earlier in the year.

• Credit card rates are rising. Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. As the federal funds rate rises, the prime rate does as well, and your credit card rate follows suit within one or two billing cycles.

That means anyone who carries a balance on their credit card will soon have to shell out even more just to cover the interest charges. “This latest interest rate hike will most acutely impact those consumers who do not pay off their credit card balances in full through higher minimum monthly payments,” Raneri said.

Because of this rate hike, consumers with credit card debt will spend an additional $5.1 billion on interest, according to an analysis by WalletHub. Factoring in the rate hikes from March, May, June, July, September and November, credit card users will wind up paying around $25.6 billion more in 2022 than they would have otherwise, WalletHub found.

Already credit card rates are near 19{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, up from 16.34{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in March. “That’s the highest since the Fed began tracking in 1994 and is more than a full percentage point higher than the previous record set back in 2019,” according to Matt Schulz, chief credit analyst at LendingTree. And rates are only going to continue to rise, he said. “We’ve still got a ways to go before those rates hit their peak.”

The best thing you can do now is pay down high-cost debt — “0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} balance transfer credit cards are still widely available, especially for those with good credit, and can help you avoid accruing interest on the transferred balance for up to 21 months,” Schulz said.

“That can be an absolute godsend for folks struggling with card debt,” he added.

Otherwise, consolidate and pay off high-interest credit cards with a lower-interest home equity loan or personal loan, Schulz advised.

• Auto loans are more expensive. Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans, so if you are planning to buy a car, you’ll pay more in the months ahead.

The average interest rate on a five-year new car loan is currently 5.63{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, up from 3.86{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} at the beginning of the year and could surpass 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} with the central bank’s next moves, although consumers with higher credit scores may be able to secure better loan terms.

Paying an annual percentage rate of 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} instead of 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} would cost consumers $1,348 more in interest over the course of a $40,000, 72-month car loan, according to data from Edmunds.

Still, it’s not the interest rate but the sticker price of the vehicle that’s causing an affordability problem, McBride said. “Rising rates doesn’t help, certainly.”

• Student loans vary by type. Federal student loan rates are also fixed, so most borrowers won’t be affected immediately. But if you are about to borrow money for college, the interest rate on federal student loans taken out for the 2022-2023 academic year are up to 4.99{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, from 3.73{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} last year and 2.75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in 2020-2021.

If you have a private loan, those loans may be fixed or have a variable rate tied to the Libor, prime or T-bill rates, which means that as the Fed raises rates, borrowers will likely pay more in interest, although how much more will vary by the benchmark.

Currently, average private student loan fixed rates can range from 3.22{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 14.96{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, and from 2.52{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 12.99{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for variable rates, according to Bankrate. As with auto loans, they vary widely based on your credit score.

Of course, anyone with existing education debt should see where they stand with federal student loan forgiveness.

• Only some savings account rates are higher. The silver lining is that the interest rates on savings accounts are finally higher after several consecutive rate hikes.

While the Fed has no direct influence on deposit rates, they tend to be correlated to changes in the target federal funds rate, and the savings account rates at some of the largest retail banks, which have been near rock bottom during most of the Covid-19 pandemic, are currently up to 0.21{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on average.

Thanks, in part, to lower overhead expenses, top-yielding online savings account rates are as high as 3.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, according to Bankrate, much higher than the average rate from a traditional, brick-and-mortar bank.

“Savers are seeing the best yields since 2009 — if they’re willing to shop around,” McBride said. Still, because the inflation rate is now higher than all of these rates, any money in savings loses purchasing power over time.

Now is the time to boost that emergency savings, McBride advised. “Not only will you be rewarded with higher rates but also nothing helps you sleep better at night than knowing you have some money tucked away just in case.”

“More broadly, it makes sense to be more cautious,” Spatt added. “Recognize that employment is maybe less secure. It’s reasonable to expect we’ll see unemployment going up, but how much remains to be seen.”

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September 29, 2022

BOCA RATON, Fla., Sept. 28, 2022 (Globe NEWSWIRE) — Newtek Company Expert services Corp., (NASDAQ: NEWT), an internally managed organization improvement business (“BDC”), introduced these days it is forecasting a fourth quarter 2022 income distribution of $.70 for every share.¹ In anticipation of the Business converting from a BDC and discontinuing its election to be regulated under the Expenditure Business Act of 1940 (“1940 Act”), subject to regulatory approvals of its pending acquisition of Nationwide Lender of New York Town (“NBNYC”) and other conditions described in the Company’s proxy assertion filed with the SEC on May well 2, 2022, following which the Organization will no extended qualify as a regulated expenditure corporation (“RIC”) for federal revenue tax purposes and will no for a longer period qualify for accounting treatment method as an investment organization, the Organization anticipates distributing 90 – 100{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of its 2022 taxable money, in addition to a spillover dividend of its retained earnings, which we hope to be paid out out as a fourth quarter 2022 distribution in December 2022.

Barry Sloane, CEO, President and Chairman commented, “We are incredibly happy to give a forecast of our fourth quarter 2022 money distribution to shareholders. If declared by the Board, the Business expects to fork out about $2.75 for every share in income dividends and distributions to shareholders in 2022 and, as these, to have obtained its aim of supplying desirable hard cash-on-funds returns to its shareholders. This cash distribution would provide the whole dividends and distributions paid out in 2022 in line with the Company’s previously forecasted assistance of $2.40 for every share to $2.90 per share. Even though the overall 2022 distribution may well involve a return of funds, the dedication of the tax attributes of the Company’s 2022 distributions will not be made right up until the conclusion of the Company’s fiscal year primarily based on its taxable cash flow for the complete calendar year and distributions compensated for the full 12 months. We are excited as we foresee exiting the BDC area, topic to regulatory approvals to purchase NBNYC, and come to be a bank keeping company. We take pleasure that all over our 8 many years of operating as a BDC, we have lived up to our determination of doing as a large-yielding growth-oriented BDC.”

Mr. Sloane continued, “Importantly, we have made excellent strides in preparing for the possession of NBNYC and assume to forecast 2023 and 2024 earnings and functionality metrics following receipt of regulatory approvals of our acquisition of NBNYC. We believe these forecasts will supply an chance for traders to consider Newtek likely ahead.”

Mr. Sloane concluded, “Some of the important objects we seem ahead to as component of our conversion to a bank holding company are the expected changeover of the Company to staying covered by financial institution analysts from BDC analysts, the opportunity chance to be viewed as for inclusion in the Russell 2000, an enhance in our universe of potential traders who may perhaps have been precluded from investing in a BDC due to our position as a 1940 Act business, Newtek’s belief that it can deliver increased total returns on equity as a bank keeping business than as a BDC, and most likely unlocking more shareholder worth via engineering joint ventures and the implementation of the Newtek Advantage™ business portal for our customers. That explained, we could not be a lot more excited about our long run irrespective of tough capital marketplaces. Like an iceberg with its core and toughness beneath the area, Newtek thinks that it has developed a remarkable foundation, which may perhaps not however be found, but continue to exists that is the core of pleasure which we believe that will be unlocked for all to see less than this new framework.”

¹Be aware pertaining to Dividend Payments: Quantity and timing of fourth quarter dividend or distribution, if any, stays subject matter to the discretion of the Company’s Board of Administrators.

Newtek Small business Expert services Corp., Your Enterprise Answers Company^®, is an internally managed BDC, which along with its controlled portfolio providers, offers a huge selection of business enterprise and economic solutions below the Newtek^® manufacturer to the compact- and medium-sized company (“SMB”) sector. Since 1999, Newtek has delivered condition-of-the-art, price-effective items and products and services and successful small business strategies to SMB associations throughout all 50 states to help them expand their sales, handle their expenses and reduce their hazard.

Newtek’s and its portfolio companies’ goods and products and services consist of: Enterprise Lending, SBA Lending Alternatives, Electronic Payment Processing, Technological innovation Alternatives (Cloud Computing, Facts Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Stock Financing, Coverage Options, World-wide-web Products and services, and Payroll and Gains Options.

Newtek^® and Your Business enterprise Remedies Firm^® are registered logos of Newtek Organization Expert services Corp.

Be aware With regards to Forward Hunting Statements

This press launch contains particular forward-hunting statements. Phrases these kinds of as “believes,” “intends,” “expects,” “projects,” “anticipates,” “forecasts,” “goal” and “future” or identical expressions are supposed to discover forward-on the lookout statements. All ahead-looking statements involve a number of hazards and uncertainties that could trigger precise results to differ materially from the options, intentions and expectations mirrored in or proposed by the forward-on the lookout statements. Such risks and uncertainties involve, amongst other folks, contain our potential to close the pending acquisition of the Nationwide Lender of New York Metropolis (the “Transaction”), get expected regulatory approvals for the pending Transaction, the timing of the closing of the Transaction, the timing of the Company’s discontinuance from regulation as a BDC less than the 1940 Act, projections regarding or contemplating the pending Transaction, the timing of our potential to originate new investments, obtain specific margins and levels of profitability, the availability of further capital and the means to manage specified debt to asset ratios, intensified competition, operating complications and their impact on revenues and income margins, expected upcoming business strategies and economic overall performance, predicted long run amount of clients, small business potential clients, legislative developments and related matters. Risk things, cautionary statements and other conditions, which could induce Newtek’s real results to differ from management’s current anticipations, are contained in Newtek’s filings with the Securities and Trade Commission and obtainable via http://www.sec.gov/. Newtek cautions you that ahead-hunting statements are not assures of foreseeable future efficiency and that real effects or developments may possibly vary materially from those projected or implied in these statements.

Source: Newtek Small business Providers Corp.

Investor Relations & Community Relations
Contact: Jayne Cavuoto
Phone: (212) 273-8179 / jcavuoto@newtekone.com

March 31, 2022

New York
CNN Enterprise
—

Jeff Bezos’ Blue Origin just introduced its fourth effective place tourism mission, placing however an additional feather in the cap of the corporation that hopes to make these supersonic joyrides a mainstay of pop culture.

The 6 passengers, which include things like a Blue Origin engineer and 5 paying prospects, boarded their New Shepard capsule Thursday just soon after sunrise at the company’s West Texas launch facilities. Boosted by a 60-foot-tall rocket, they soared to much more than a few times the pace of seem, or far more than 2,000 miles for every hour. Their capsule vaulted previous the Kármán Line at 100 kilometers (or 62 miles) altitude, which is greatly identified as the altitude at which outer room begins. And at the peak of the flight, they seasoned a several minutes of weightlessness and, out their window, sweeping Earthly sights.

It’s not clear how a great deal the journey price the five shelling out customers. Blue Origin has not publicly disclosed a mounted per-seat value stage, although it experienced auctioned off a ticket for $28 million. But that was for a seat to ride together with Bezos himself, and the auction winner did not conclusion up heading. (He is slated to fly afterwards this calendar year, however.) Blue Origin’s immediate competitor, Virgin Galactic, is at present offering seats for $450,000, up from its preceding price tag level of around $250,000.

Blue Origin is conducting its fourth human spaceflight on Thursday, March 31. It includes Marty Allen, Sharon Hagle, Marc Hagle, Jim Kitchen, Gary Lai, and Dr. George Nield.

This flight had been slated to include things like Saturday Evening Stay star Pete Davidson, but he dropped out of the mission immediately after Blue Origin declared a schedule improve previously this thirty day period. The business cited the require for further ground exams on the New Shepard rocket as the explanation for the delay.

Gary Lai, who has been with Blue Origin for 18 years and holds several patents connected to the New Shepard rocket’s design, flew in Davidson’s position and was the sole non-paying out consumer on the flight. Lai’s crewmates incorporated Marty Allen, an trader and the previous CEO of a bash source store Jim Kitchen, an entrepreneur and company professor George Nield, a previous associate administrator for the Federal Aviation Administration Place of work of Industrial House Transportation Marc Hagle, an Orlando authentic estate developer, and his wife, Sharon Hagle, who started a room-targeted nonprofit.

The passengers’ New Shepard capsule, which is thoroughly autonomous, deployed plumes of parachutes right after diving again into the thickest aspect of the Earth’s environment and landed with a puff of sand in the Texas desert.

On the livestream, the passengers could be listened to cheering as the capsule produced its touchdown, and times later, they exited the capsule, smiling and waving.

“It was powerful, and I did get a minor little bit of a emotion of vertigo,” Lai informed Blue Origin’s Sarah Knights, who heads communications with the travellers for the duration of flight. “I did experience a tiny bit nauseous, for guaranteed.”

Other passengers on the livestream explained the perspective as “incredible.”

“Unreal, just unreal,” Allen stated. “I just can’t place it into words.”

“It was an out-of-entire body knowledge,” Kitchen area explained. He explained outer room as the “blackest black I’ve ever found,” introducing that it was “breathtaking.” Nield known as it “the thrill of a life time.”

“Pictures do not do it justice,” he included.

Organization activity in room — mainly led by SpaceX — is booming. From making more affordable rockets and building new makes use of for satellites to imagining futuristic room inns, the field has captivated record levels of financial investment, in accordance to knowledge gathered by analytics business House Cash.

Just after several years of peaceful improvement, Blue Origin’s place tourism rocket produced its crewed start debut final calendar year with Bezos, flying together with a heroine of the room local community, Wally Funk, as effectively as his brother Mark Bezos and a shelling out customer.

Due to the fact then, Blue Origin produced headlines for flying other well-recognised names on two subsequent flights, including Star Trek star William Shatner and Superior Early morning The us host Michael Strahan.

Strahan wrote a information for the passengers on Thursday’s flight that was read through to them by ground management: “This is the finest trip you will ever have, but it’s way far too brief.”

Blue Origin’s purpose is to make these suborbital spaceflights a mainstay of pop culture, giving a 10-moment supersonic joyride to invited friends — who hence considerably have generally been celebs — and any one else who can manage it.

Blue Origin is the 1st corporation to start giving common suborbital room tourism flights. Its main competitor, Virgin Galactic, notably had its initially crewed flight — which integrated founder Richard Branson — just before Bezos’ flight last July. But Virgin Galactic has however to abide by up that flight with an additional crewed flight soon after it later grew to become obvious that the company’s space plane experienced traveled out of its specified flight route. The business now says it is undergoing unrelated know-how upgrades and may return to flight later on this 12 months.

SpaceX is the only personal firm that provides trips to orbit. The business done the 1st-at any time all-civilian flight to orbit very last September, having a billionaire and a few of his chosen crewmates on a a few-day excursion. And following week, the business ideas to choose 4 paying shoppers on a flight to the Worldwide Area Station, which orbits about 200 miles higher than Earth.

Blue Origin does have strategies to establish a rocket potent plenty of to access orbit, identified as the New Glenn. And, in light of the news that Russia might no more time offer rocket engines to the United States, all those programs are extra pressing than ever. The engines Blue Origin options to use for the New Glenn, the BE-4, will also be made use of on an future launch car developed by United Start Alliance, a joint venture in between Lockheed Martin and Boeing that is responsible for sizeable US nationwide safety launches. ULA at present depends on Russian RD-180 engines. Its new rocket with the US-made BE-4 engines is scheduled to make its debut this year.

Blue Origin did not have certain updates on BE-4 when arrived at for comment.

February 28, 2022

¹Adjusted EBIT, adjusted EBIT margin and adjusted EPS are non-GAAP financial measures. Refer to the “Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial results.

²Adjusted EBIT and adjusted EBIT margin are non-GAAP financial measures. Refer to the “Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial results.

³Nordstrom Canada is comprised of Nordstrom Canada Retail, Inc., Nordstrom Canada Holdings, LLC and Nordstrom Canada Holdings II, LLC.

⁴Adjusted EBIT margin and adjusted EPS are non-GAAP financial measures. Refer to the “Fiscal Year 2023 Outlook – Adjusted EBIT Margin and Adjusted EPS” section of this release for additional information as well as reconciliations between the Company’s GAAP and non-GAAP financial expectations.

2021 Operating and Financial Results Met or Exceeded Guidance

Conference Call Today at 10 a.m. ET

PARSIPPANY, N.J., Feb. 28, 2022 (GLOBE NEWSWIRE) — Lincoln Educational Services Corporation (Nasdaq: LINC) today, reported operating and financial results for the fourth quarter and full year ended December 31, 2021 as well as recent business developments.

Fourth Quarter 2021 Financial Highlights and Recent Operating Developments

Revenue of $87.8 million, up 7.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} compared to prior year
Adjusted EBITDA* of $15.1 million, up 13.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over prior year
Average student population up 6.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}; ending population up 6.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} or 850 students
Consummated sale-leaseback transactions generate gain on sale of $22.5 million and net proceeds of $45.4 million, with approximately $17 million used to retire all outstanding debt
Net cash position of $83.3 million, up $62.5 million over prior year
Net income of $24.0 million

Full Year 2021 Results – Achieved or Exceeded Guidance

Revenue grew 14.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Student start growth of 7.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted EBITDA* of $38.1 million
Adjusted pre-tax net income* of $27.1 million

*See Use of “Non-GAAP Financial Information” below.

“Strong execution, both during the fourth quarter and for the full year, allows Lincoln to enter 2022 in an extremely strong operating position with approximately 850 more students compared to the year-ago period. Additionally, the proceeds from the sale-leaseback transactions significantly improved our liquidity, giving us one of the strongest balance sheets in Lincoln’s 75-year history,” said Scott Shaw, President & CEO. “Our continued success, high graduate placement rates and a more favorable outlook for high school student starts compared to a year ago, gives us a high degree of confidence that we can achieve even greater results for years to come.

The expected proceeds of approximately $34.0 million from the contemplated sale of our Nashville, Tennessee property, assuming consummation, combined with our continuing strong cash flow provides the Company with even more financial resources to execute our near and long-term growth strategies. During 2022, we plan to begin the relocation of our Nashville campus to a new and more efficient facility in the Nashville area. Furthermore, we plan to expand our footprint through a new campus while continuing to invest in new programs. We are poised to execute these strategies to generate consistent, long-term growth while enhancing our ability to serve our growing student population as well as our corporate partners.”

2021 FOURTH QUARTER FINANCIAL RESULTS

(Quarter ended December 31, 2021 compared to quarter ended December 31, 2020)

Revenue increased $6.0 million, or 7.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $87.8 million from $81.8 million. The increase in revenue resulted from a 6.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in average population, driven by a 7.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in starts for the year.
Educational services and facilities expense increased $3.3 million, or 10.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $34.8 million from $31.5 million in the prior year comparable period. Increased costs were primarily concentrated in instructional expense, books and tools expense and facilities expense. In addition to increases resulting from higher student populations, instruction expense rose due to higher salaries as a consequence of inflationary pressures and instructor shortages, particularly in nursing programs. Facility expenses increased $0.6 million due to additional rent expense in the current quarter as a result of the sale-leaseback transactions.
Selling, general and administrative expense increased $1.6 million, or 4.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $40.8 million primarily due to an increase in benefits expense driven by an uptick in medical claims in the current year in combination with a slight increase in salaries.
Gain on sale of assets was $22.5 million recorded upon the consummation of the sale-leaseback transactions involving the Denver, Colorado and Grand Prairie, Texas campuses.
Operating income increased to $34.0 million in 2021, from $11.1 million in the prior year period. The increase was mainly driven by a $22.5 million gain resulting from the sale-leaseback transactions, partially offset by $0.6 million of additional rent expense related to the two campuses that were subject of the sale-leaseback transactions and a $0.7 million non-cash impairment charge to adjust the book value of a former campus facility, which closed about 10 years ago. Excluding the impact of the sale-leaseback transactions and the impairment charge as a one-time event, operating income would have increased $1.7 million, or 15.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.
Net interest expense increased $0.8 million, to $1.1 million from $0.3 million in the prior year comparable period. The additional expense was driven by the sale-leaseback transactions which included $0.5 million related to terminating the interest rate hedge early and $0.5 million non-cash write-off of deferred finance fees.
Net income of $24.0 million, or $0.73 per diluted share, compared to $46.0 million, or $1.44 per diluted share. In 2021, income tax provision was $12.5 million compared to $35.1 million tax benefit related to a full valuation allowance reversal in 2020.
Debt-free balance sheet as of December 31, 2021 after payoff of all outstanding debt in the fourth quarter compared to $17.8 million of borrowings in the prior year.

FOURTH QUARTER SEGMENT RESULTS
Transportation and Skilled Trades Segment
Revenue increased $4.3 million, or 7.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $62.9 million from $58.6 million in the prior year comparable period. The increase in revenue results from a 7.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher average student population, driven by the 9.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in student starts for the year.

Operating income improved to $16.6 million from $15.6 million in the prior year comparable quarter, driven mainly by revenue growth.

Healthcare and Other Professions Segment
Revenue increased $1.7 million, or 7.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $24.9 million from $23.2 million in the prior year comparable quarter. The increase in revenue results from a 3.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher average student population, driven by the 4.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in student starts for the year, and a 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase in average revenue per student in the current quarter.

Operating income was $4.1 million down slightly from $4.7 million in the prior year comparable quarter due primarily to higher instructional salaries.

Corporate and Other
This category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses were $8.5 million compared to $9.2 million after excluding the $22.5 million gain from sale-leaseback transactions, partially offset by a one-time non-cash impairment charge of $0.7 million in the current year.

YEAR-END FINANCIAL RESULTS
(Period ended December 31, 2021 compared to December 31, 2020)

Total revenue increased by $42.2 million, or 14.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $335.3 million, compared to $293.1 million
Student starts grew by 1,081 or 7.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 15,402 compared to 14,321
Transportation and Skilled Trades segment revenue increased by $33.1 million, or 16.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $240.5 million, compared to $207.4 million
The Healthcare and Other Professions segment revenue increased by $9.1 million, or 10.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $94.8 million, compared to $85.7 million
Adjusted EBITDA increased $14.2 million or 59{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $38.1 million, compared to $23.9 million
Operating income increased to $49.3 million as compared to $14.8 million

FULL YEAR 2022 OUTLOOK

Through the combination of cash generated from Lincoln’s strong operating performance and additional liquidity provided by the sale-leaseback transactions, Lincoln entered 2022 with over $80 million of net cash. In addition, the Company has availability under its credit agreement and anticipates increasing its cash position from the contemplated consummation of the sale of its Nashville, Tennessee campus. Lincoln will utilize this strong balance sheet to increase its level of investment in growth strategies and operating efficiencies.

Specific operating and financial guidance for the coming year is as follows:

Revenue in the range of $350 million to $365 million
Student start growth in the range of 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Adjusted EBITDA* in the range of $35.0 million to $40.0 million
Net Income in the range of $17.0 million to $22.0 million
Capital expenditures in the range of $7.0 million to $9.0 million

*See Use of “Non-GAAP Financial Information” below

The 2022 guidance excludes the impact of the contemplated consummation of the sale and relocation of the Nashville, Tennessee campus, which is under contract, as well as additional costs associated with a new potential campus. The outlook is based on, among other things, current enrollment trends and does not account for the impact from continuing COVID-19 issues or any new COVID-19 variants. Accordingly, as is always the case, the guidance may be revised as the year unfolds due to changes in student demand and other factors.

The Company is also providing additional information as to the progress of operations through 2022. This information represents management’s current expectations for the upcoming year and may be revised in-line with the developing business environment.

Revenue
Pursuant to the Company’s seasonality patterns, it is anticipated that approximately 45{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of revenue will occur in the first half of the year. Student starts are expected to increase in the low single digits during the first quarter, with higher start growth in the remainder of the year.

Operating Expenses
Operating expenses are expected to range in the low to mid $80 million level each quarter, with the third quarter’s expenses expected to reflect the high point of the year, consistent with the seasonality of the Company’s business. This higher level of operating expenses for the full year includes the addition of $3.2 million of rent expense resulting from the sale-leaseback transactions as well as $2.0 million of additional spending related to growth initiatives, efforts to streamline operations and development and implementation of improvements to Lincoln’s hybrid teaching model. First quarter operating expenses will show the largest increase year over year, as the first quarter of 2021 included a one-time $3.0 million benefit due to Care Act funds credited to student’s accounts.

Other
Interest expense, depreciation and amortization and stock-based compensation expense are expected to be approximately $0.4 million, $6.6 million, and $4.5 million respectively, recognized evenly throughout the year. The effective tax rate for the year is projected to be 28.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

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 2498132.
Please log in or dial into the call at least 10 minutes prior to the start time.

An archived version of the webcast will be accessible for 90 days at http://www.lincolntech.edu.
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 2498132.

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 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						Year-Ended
	December 31,						December 31,
	(Unaudited)						(Unaudited)
		2021			2020			2021			2020

REVENUE	$	87,816		$	81,792		$	335,336		$	293,095
COSTS AND EXPENSES:
Educational services and facilities		34,788			31,463			138,931			122,196
Selling, general and administrative		40,762			39,188			168,923			156,199
(Gain) loss on disposition of assets		(22,479	)		15			(22,479	)		(81	)
Impairment of long-lived assets		700			–			700			–
Total costs & expenses		53,771			70,666			286,075			278,314
OPERATING INCOME		34,045			11,126			49,261			14,781
OTHER:
Interest expense		(1,142	)		(315	)		(2,015	)		(1,275	)
INCOME BEFORE INCOME TAXES		32,903			10,811			47,246			13,506
PROVISION (BENEFIT) FOR INCOME TAXES		8,939			(35,209	)		12,528			(35,059	)
NET INCOME	$	23,964		$	46,020		$	34,718		$	48,565
PREFERRED STOCK DIVIDENDS		304			304			1,219			1,378
INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	23,660		$	45,716		$	33,499		$	47,187
Basic and Diluted
Net income per share	$	0.73		$	1.44		$	1.04		$	1.49
Weighted average number of common shares outstanding:
Basic and Diluted		25,180			24,831			25,081			24,748

Other data:

Adjusted EBITDA (1)	$	15,136		$	13,380		$	38,065		$	23,867
Depreciation and amortization	$	1,520		$	1,854		$	7,140		$	7,400
Number of campuses		22			22			22			22
Average enrollment		13,599			12,796			12,899			11,729
Stock-based compensation	$	796		$	400		$	2,889		$	1,686
Net cash provided by operating activities	$	9,697		$	13,263		$	27,447		$	23,485
Net cash provided by (used in) investing activities	$	43,100		$	(2,026	)	$	37,848		$	(5,483	)
Net cash used in financing activities	$	(16,640	)	$	(804	)	$	(20,014	)	$	(18,620	)

Selected Consolidated Balance Sheet Data:	December 31, 2021
	(Unaudited)

Cash and cash equivalents	$	83,307
Current assets		121,627
Working capital		55,745
Total assets		295,299
Current liabilities		65,882
Long-term debt obligations, including current portion, net of deferred financing fees		–
Series A convertible preferred stock		11,982
Total stockholders’ equity		129,418

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, reconciled net cash and Adjusted Pre-tax income 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 and adjustments for items not considered part of the Company’s normal recurring operations.
We define reconciled net cash as our cash and cash equivalents and restricted cash less both the short and long-term portion under the Company’s credit agreement, and deferred financing fees.
We define Adjusted pre-tax income as pre-tax net income before gain on sale of assets, non-cash impairment charges and expenses incurred resulting from the consummation of the sale-leaseback transactions.

EBITDA, Adjusted EBITDA, reconciled net cash and Adjusted Pre-tax income 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, reconciled net cash and Adjusted Pre-tax income are not necessarily comparable to similarly titled measures used by other companies.

Following is a reconciliation of net income (loss) to EBITDA, Adjusted EBITDA, reconciled net cash and Adjusted Pre-tax income:

	Three Months Ended December 31,						Year-Ended December 31,
	(Unaudited)						(Unaudited)
		2021			2020			2021			2020

Net income	$	23,964		$	46,020		$	34,718		$	48,565
Interest expense, net		1,142			315			2,015			1,275
Provision (benefit) for income taxes		8,939			(35,209	)		12,528			(35,059	)
Depreciation and amortization		1,520			1,854			7,140			7,400
EBITDA		35,565			12,980			56,401			22,181
Stock compensation expense		796			400			2,889			1,686
Gain on sale of asset		(22,479	)		–			(22,479	)		–
Impairment		700			–			700			–
Sale leaseback rent expense		554			–			554			–
Adjusted EBITDA	$	15,136		$	13,380		$	38,065		$	23,867


	December 31,
	(Unaudited)
		2021		2020
Current portion of credit agreement and term loan	$	–	$	(2,000	)
Long-term credit agreement and term loan		–		(15,212	)
Cash and cash equivalents		83,307		38,026
Reconcilled net cash	$	83,307	$	20,814



	December 31, 2021
	(Unaudited)
Pre-tax net income	$	47,246
Gain on disposition of asset		(22,479	)
Non-cash impairment0		700
Sale leaseback expenses		1,684
Adjusted pre-tax income	$	27,151

	Three Months Ended December 31,
		2021		2020		{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Change
Revenue:
Transportation and Skilled Trades	$	62,945	$	58,636		7.3	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
HOPS		24,871		23,156		7.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total	$	87,816	$	81,792		7.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Operating Income (Loss):
Transportation and Skilled Trades	$	16,632	$	15,611		6.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions		4,101		4,681		-12.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Corporate		13,312		(9,166	)	245.2	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total	$	34,045	$	11,126		206.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Starts:
Transportation and Skilled Trades		1,467		1,438		2.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions		1,254		1,228		2.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total		2,721		2,666		2.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Average Population:
Transportation and Skilled Trades		9,087		8,536		6.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–		(82	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Transportation and Skilled Trades ¹		9,087		8,454		7.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Healthcare and Other Professions		4,512		4,400		2.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–		(58	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions ¹		4,512		4,342		3.9	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total		13,599		12,936		5.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total ¹		13,599		12,796		6.3	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

End of Period Population:
Transportation and Skilled Trades		8,648		7,917		9.2	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–		(22	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Transportation and Skilled Trades ¹		8,648		7,895		9.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Healthcare and Other Professions		4,411		4,402		0.2	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–		(80	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions ¹		4,411		4,322		2.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total		13,059		12,319		6.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total ¹		13,059		12,217		6.9	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}


¹Excluding Leave of Absence – COVID-19

	Year-Ended December 31,
		2021			2020		{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} Change
Revenue:
Transportation and Skilled Trades	$	240,531		$	207,434		16.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
HOPS		94,805			85,661		10.7	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total	$	335,336		$	293,095		14.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Operating Income (Loss):
Transportation and Skilled Trades	$	52,055		$	34,458		51.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions		11,845			11,068		7.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Corporate		(14,639	)		(30,745	)	52.4	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total	$	49,261		$	14,781		233.3	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Starts:
Transportation and Skilled Trades		10,291			9,442		9.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions		5,111			4,879		4.8	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total		15,402			14,321		7.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Average Population:
Transportation and Skilled Trades		8,505			7,872		8.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		(12	)		(219	)	94.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Transportation and Skilled Trades ¹		8,493			7,653		11.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Healthcare and Other Professions		4,439			4,232		4.9	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		(33	)		(156	)	78.8	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions ¹		4,406			4,076		8.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total		12,944			12,104		6.9	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total ¹		12,899			11,729		10.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

End of Period Population:
Transportation and Skilled Trades		8,648			7,917		9.2	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–			(22	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Transportation and Skilled Trades ¹		8,648			7,895		9.5	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Healthcare and Other Professions		4,411			4,402		0.2	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Leave of Absence – COVID-19		–			(80	)	100.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Healthcare and Other Professions ¹		4,411			4,322		2.1	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}

Total		13,059			12,319		6.0	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
Total ¹		13,059			12,217		6.9	{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}


¹Excluding Leave of Absence – COVID-19

LINCOLN EDUCATIONAL SERVICES CORPORATION
Brian Meyers, CFO
973-736-9340

EVC GROUP LLC
Investor Relations: Michael Polyviou, mpolyviou@evcgroup.com, 732-933-2755
Media Relations: Tom Gibson, 201-476-0322