Attached files
| file | filename |
|---|---|
| 8-K - 8-K - LINCOLN EDUCATIONAL SERVICES CORP | brhc10024361_8k.htm |
Exhibit 99.1
1
PUT YOUR POTENTIAL TO WORK 2021 Shareholders Meeting
Stronger and BetterLincoln entered 2020 with great momentum and success, and despite the challenges of the pandemic, we ended the year
stronger financially and better prepared to reach our potential. 3
4
Drivers of Organic Demand for Training 5 Skills Gap
Demand for “Middle Skills Training” 6 Middle-skill jobs, which require education beyond high school but not a four-year degree, make
up the largest part of America’s labor market. (Source: National Skills Coalition) Lincoln connects employers with entry level trained professionals from the adult, high school and military sectors. Growing skepticism of the value of
college Less stigma – Essential Workers
Entering 2021 : A New Chapter for Lincoln 7
Transformational Impact of COVID-19 8
Lincoln’s Workforce Solution Differentiator– Not your local Community College 9 Superior graduation rates and placement ratesDevelop
training programs with feedback from employers and key industry associations to understand gaps and needsIntegrate industry preferred licensing and certifications into the curriculumExpect students to meet employability standards for
appearance, attendance and professional attitude while in schoolBuild labs and shops that replicate the working environment using professional grade equipment and toolsIncorporate cutting edge education technology with animations, videos and
simulations to make learning active and engagingOffer an accelerated program with multiple entry points to allow students to graduate quickly and enter the workforce earlierProvide robust student support services to ensure strong outcomes
Growing Base of Industry Partners 10 Positions Lincoln as long-term solutions provider for both entry level technicians and advanced
workforce trainingEmployers appreciate the technical and soft skills of our studentsPartners provide validation of the quality of our educationCo-branding opportunities with elite partners helps attract new studentsPartners provide better job
opportunities for our graduates
Experienced Management Team (Years at Lincoln) 11 Chad NyceEVP, Chief Innovation Officer (1)
BOARD OF DIRECTORS J. Barry MorrowNon-Executive Chairman, Lincoln Educational Services; Founder & Chief Executive Officer, BK
Capital Group Peter S. BurgessFormer Business Advisory Partner, Arthur Anderson LLP James J. Burke, Jr.Founder & Managing Partner, JJB Capital Partners LLC Kevin M. CarneyFormer Executive Vice President & Chief Financial Officer,
Web.com Group Inc. Celia H. CurrinFormer Marketing Executive, Dow Jones & Wall Street Journal Ronald E. HarbourSenior Advisor, Global Automotive Manufacturing Practice, Oliver Wyman Co. Carlton E. RosePresident, Global Fleet Maintenance
& Engineering, UPS; 1981 Lincoln Tech Graduate Dr. Michael A. PlaterFormer University President, Strayer University Scott M. ShawPresident & Chief Executive Officer, Lincoln Educational Services John A. BartholdsonCo-Founder &
Partner, Juniper Investment Co. LLC
Financial Review
Pro Forma Operations Annual Revenue, Starts, & Average Population* ($ in millions) 14 Revenue Average Population Starts *
2017 & 2018 exclude transitional segment (closed schools) and are presented as pro forma operations. $257 $245 $273
$293 +5.1% +7.2% +6.2% +3.7% 9,985 10,354 10,985 12,104 +7.7% +10.2% 11,436 12,317 12,934 14,321 +6.1% +5.0% +10.7%
Pro Forma Operations ($ in millions) 15 Approximately 12,300 students enrolled at 22 campuses as of 12/31/2020Key metrics such as
revenue, average population continue to grow Margin3.6% * 2017 & 2018 exclude transitional segment (closed schools) and are presented as pro forma operations. Refer to
appendix. +5.1% +6.2% +7.2% +18.4% +27.9% +66.1% Margin4.1% Margin4.9% Margin7.6%
Transportation and Skilled Trades ($ in millions) 16 Approximately 7,900 students enrolled at 13 campuses as of 12/31/2020High demand
for training in Automotive, Diesel, HVAC, CNC, Welding, ElectricalGrowing list of industry partners Margin13.6% Margin14.2% Margin15.1% Margin19.7% +2.2% +7.1% -2.1% +15.8% +40.1% +4.6%
Healthcare and Other Professions ($ in millions) 17 Approximately 4,400 students at 9 campuses as of 12/31/2020Growing demand for
healthcare professionalsStrong demand by students especially for Licensed Practical Nursing Margin 6.3% Margin 9.3% Margin10.0% Margin13.5% +13.3% +10.4% +7.6% +67.6% +19.0% +44.2%
Earnings Per Share
Balance Sheet & Cash Flow Summaries
Cautionary Statement Statements made during this Annual Meeting regarding Lincoln’s business,
operations, results and future prospects that are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Forward-looking statements should not be viewed 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. 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. Important factors that could cause such differences include, but are not limited to, our failure to comply with the extensive regulatory framework applicable to our industry or our failure to obtain timely
regulatory approvals, as required; our success in updating and expanding the content of existing programs and developing new programs in a cost-effective manner or on a timely basis; risks associated with changes in applicable federal laws
and regulations, including pending rulemaking by the U.S. Department of Education; uncertainties regarding our ability to comply with federal laws and regulations regarding the 90/10 rule and 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 economies; general economic conditions; and other factors discussed in our annual report on Form 10-K for the year ended December 31, 2020. For a discussion of such risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking statements, see “Risk Factors” in Lincoln’s Annual Report on Form 10-K for the year ended December 31, 2020. All forward-looking statements are qualified in their entirety by this
cautionary statement, and Lincoln undertakes no obligation to revise or update the remarks made to reflect events or circumstances after the date of the 2021 Annual Meeting of Shareholders.
Thank You for Attending our 2021 Shareholders Meeting 20