Exhibit 99.1
PUT YOUR POTENTIAL TO WORK 2022 Shareholders Meeting
Stronger and BetterLincoln entered 2021 with great momentum and success, and despite the continuing challenges of the pandemic, we ended the year stronger financially and better prepared to reach our potential. 2
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Silver Tsunami – aging baby-boomers retiring from the workplace Growing skepticism of the value of college Employers struggle to find interested candidates Simple jobs have become more complex with technology Strong demand in healthcare, manufacturing and construction Infrastructure spending will exacerbate the shortage Less stigma – Essential Workers Demand Supply Societal pressure to go to college Elimination of Vo-Tec programs 4 GAP Drivers of Organic Demand for Training
Demand for “Middle Skills Training” 5 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.
Leadership changes Positive new student starts Enrollment growth Return to profitability Financing transactions 2021 : A New Chapter for Lincoln 2015 – 2017 Restructuring 2018 – 2020 Turnaround 2021 & beyond Growth Pressures throughout industry Programs realigned Campuses closed Cost cutting . Achieve organic growth Resources to accelerate growth Increase marketing Expand and add programs Add campuses 6
Transformational Impact of COVID-19 7 All campuses were closed mid March 2020 & moved to remote services Campuses started to re-open in June 2020 with all open by August All campus support services offered at the campus and remotely Lincoln finished 2020 financially stronger than 2019 Pivoted to Online/Blended Revenue grew by 7.2% to $293.0 million and starts increased 10.7% EBITDA grew by 66.1% to $22.2 million Cash increased and debt declined to end the year net cash + Started 2021 with 1,034 more students Strong 2020 Results Met or exceeded 2021 guidance Cash and cash equivalents as of 12/31/2021: ~$80M No debt outstanding as of 12/31/2021; $11M available under revolving line of credit Monetized real estate through a sale-leaseback transaction 2021 Operations All programs will be blended 25% online / 75% on campus. Lincoln’s existing operations will be simplified and streamlined Additional services will improve graduation and placement rates Operating efficiencies should lead to increased profitability 2022 and Beyond
Our Superior Educational Approach 8 Feedback Integration Student Support Industrial Infrastructure Engaging Curriculum Graduation and Placement Employment Assistance Develop training programs with feedback from employers and key industry associations to understand gaps and needs Integrate industry preferred licensing and certifications into the curriculum Provide robust student support services to ensure strong outcomes Build labs and shops that replicate the working environment using professional grade equipment and tools Incorporate cutting edge education technology with animations, videos and simulations to make learning active and engaging Superior graduation rates and placement rates Expect students to meet employability standards for appearance, attendance and professional attitude while in school Offer an accelerated program with multiple entry points to allow students to graduate quickly and enter the workforce earlier
Growing Base of Industry Partners 9 Positions Lincoln as long-term solutions provider for both entry level technicians and advanced workforce training Employers appreciate the technical and soft skills of our students Partners provide validation of the quality of our education Co-branding opportunities with elite partners helps attract new students Partners provide better job opportunities for our graduates
Compliance Stats 10 90/10 Rule : This rule caps the percentage of revenue that a proprietary institution can receive from federal financial aid sources at 90%; the other 10% of revenue must come from alternative sources. CDR : It is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1st to September 30th, and default or meet other specified conditions prior to the end of the second following fiscal year. Composite Score : the DOE composite score reflects the overall financial health of an institution. The score can be anywhere along the scale from negative 1.0 to positive 3.0. If an institution receives a score greater than or equal to 1.5, the institution is considered financially responsible. FY 2021 FY 2020 Metrics Company Overall New Britain OPEID Indianapolis OPEID Iselin OPEID Company Overall New Britain OPEID Indianapolis OPEID Iselin OPEID 90/10 75% 77% 72% 80% 77% 79% 74% 83% 90/10* 82% 82% 82% 83% 85% 85% 84% 85% CDR** 9.8% 10.3% 11.3% 6.6% 10.1% 10.8% 11.0% 8.0% Composite Score 3.0 2.6 This data is the annual data submitted to ACCSC for completion and employment rates for programs offered as of July 1, 2021 Total Students Available for Grad. Total Grads Completion Percentage Grads. Available for Employment Total Employed Employment Percentage 12,602 8,292 66% 8,009 6,401 80% * Currently veteran’s educational benefits is not included as part of the 90% limit, however, if it was included, the Company’s ratio would remain below 90% as shown in the adjusted ratio. ** 2018 cohort reported in FY21, 2017 cohort reported in FY20.
Experienced Management Team (Years at Lincoln) 11 Chad Nyce EVP, Chief Innovation Officer (2)
Board of Directors J. Barry Morrow Non-Executive Chairman, Lincoln Educational Services; Founder & Chief Executive Officer, BK Capital Group James J. Burke, Jr. Founder & Managing Partner, JJB Capital Partners LLC Kevin M. Carney Former Executive Vice President & Chief Financial Officer, Web.com Group Inc. Ronald E. Harbour Senior Advisor, Global Automotive Manufacturing Practice, Oliver Wyman Co. Carlton Rose President, Global Fleet Maintenance & Engineering, UPS; 1981 Lincoln Tech Graduate Dr. Michael A. Plater Former University President, Strayer University Scott M. Shaw President & Chief Executive Officer, Lincoln Educational Services John A. Bartholdson Co-Founder & Partner, Juniper Investment Co. LLC Felecia Pryor Chief Human Resources Officer, BorgWarner 12
Financial Review
Profitability 2018 – 2021(Continuing Operations) 14 Refer to appendix for adjusted EBITDA Reconciliation
15 Total Operations ($ in millions) Approximately 13,100 students enrolled at 22 campuses as of 12/31/2021 Key metrics such as revenue and average population continue to grow Approximately 2,700 student starts for the quarter ending 12/31/2021 Average population grew approximately 650 vs. PY for the three months ending 12/31/2021 Q4 Revenue & Margin Q4 Adj. EBITDA YTD Dec Revenue & Margin YTD Dec Adj. EBITDA Refer to appendix for adjusted EBITDA Reconciliation
16 Transportation and Skilled Trades ($ in millions) Approximately 10,300 starts for the twelve months ending 12/31/2021 Average Population increased by approximately 650 students YTD December 2021 Approximately 8,650 students enrolled at 13 campuses as of 12/31/2021 Average Population increased by approximately 550 students for the three months ending 12/31/2021 YTD Dec Revenue & Margin Q4 Revenue & Margin YTD Adj. EBITDA Q4 Adj. EBITDA Refer to appendix for adjusted EBITDA Reconciliation
17 YTD Dec Revenue & Margin Healthcare and Other Professions ($ in millions) Approximately 5,100 starts for the Twelve months ending 12/31/2021 Average population increased by approximately 200 students as of 12/31/2021 Approximately 4,500 students enrolled at 9 campuses for the three months ending 12/31/2021 Average Population increased by approximately 100 students for the three months ending 12/31/2021 Q4 Revenue & Margin YTD Dec Adj. EBITDA Q4 Adj. EBITDA Refer to appendix for adjusted EBITDA Reconciliation
Balance Sheet & Cash Flow Summaries