LINC - Earnings call transcript Q2 2020 | Lincoln Educational Services Corporation

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the second quarter 2020 Lincoln Educational Services earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator hand to now Mr. speaker conference the would your over today I Polyviou EVC. Michael with ahead, Please sir. go

Michael Polyviou

you Thank good and Carmen morning everyone.

ended for Before Educational the development. at Relations second The results the available recent corporate website portion Services Lincoln XXXX, quarter the Investor issued its release www.lincolntech.edu. well market release reporting corporate opened as June XX, today, of on company's as is financial the

as the is Scott call federal Shaw, Chief Joining the being words President the will, similar CEO be laws. by continue us in call company's on made may, today the identify term Meyers, The that Today's intended on securities archived Lincoln's as Statements and a well statements. the today's regarding on and Financial live believe, are expressions intend, Officer. historical estimate and business replay are plan, is statements to anticipate, the facts broadcast Brian on as project, expect, not identified website call forward-looking call website. management and are may company's company's be forward-looking of will

Form with discussed on the the Risk and may Report and accuracy to should company statements but these the of section Form and limited in projections you the be control Commission. Forward-looking are and Securities or that performance reflect of beyond company's include, uncertainties a are company's risks to Exchange of Report Quarterly events the uncertainties, XX-Q the affect statements other risks that Annual the Factors statements expectations future the results cautions current Factors about which the that and of filed and are on of results. which or the and read are company's future performance number may many guarantee subject the not The XX-K as segment a statements influence upon the influences, based. not

in and their otherwise forward-looking made a statements forward-looking are statements, by belief no undertakes of the at information, statements information to management's the obligation or events the qualified as date time or statement respect Forward-looking as time cautionary Lincoln All are based available the result this on events. thereof. are entirety to with good statements of those future faith future update after revise publicly new any whether and the

call Now I turn please Services. would Scott, Lincoln Scott President ahead. like of to and to the CEO Shaw, over go Educational

Scott Shaw

our financial Today, Board into and will take well Thank and of made challenges we from the update with questions. quarter decisions short right are have hope on We economic Directors, At opening your growth possible, organization. us to Tech, management, faculty, well. challenges the operating that and my I the in recession. has our partners managing by And students resulting refrain and executed Brian we our XXXX. including presented will pandemics morning as your you as you and we of Then on the talked plans we outlook, call the issuing especially guidance will believe impact our are remarks everyone. Lincoln successfully as actively comment of to we going our team I term corporate managed the extremely May, presented performance. aggressively continued our continuing then delve although our initiatives. from financial for quarter am Michael continued our you last have some since have discuss pandemic second progress within the pandemic families Thank COVID-XX a in provide and you through by limited been to good Lincoln's you generate many participating during to second to and on perspective. Today, as on we how momentum focus health our the

an our for remain, doing of shareholders. what direction for outside are good uncertainties students our From and support operating digit diverse of doing we what at had perspective, We students. feel our grew and While of are body we rate. the our fully our enrolled we starts We very retain our some we to an student of company, quarter. overall executed plans a on excellent double control second

is the population years. the cash the income We last quarter greater Our in time more than last year. five net than generated in generated in quarter year. first We for positive second

than liquidity our is was time. Our are at debt levels greater year last it $XX down and million this

challenges. our gap In services, them equipment with products a solve and global partnership to strengthen campus. help employers manufacturer education post-graduation. engine Terex continued to us students enhanced to of processing addition, opportunities as Corporation, we career our The donation their foster during at lifting to diesel Terex expands partnerships, turn their Denver skills and training increasingly Lincoln and donated promotes material for that our

it buttoning facility We are we to productive also for a Lincoln our already a and Fortune to just Lincoln they just at expanding formed Maryland And that a Toyota partnership up to are All-in-all, quarter campuses. campus discussing with strong Columbia, training provide new very proposal training opened. other Tech. and company a at XXX on a

campuses entirely reopened Our comply regulatory now entire at as requirements, learning recent campuses. online XX to flexibility organization's campuses all The and and all of achievements we demonstrate team with exhibited our cooperation closed transition exceptional to as capability. local

reopenings of was objective safety primary students and staff. the our continues with to be to the and Our ensure

sanitizing times and campus, no limited to required their daily complete the students but by caught we to of adhered most while distancing, students and have and for instructor, be will fully this who social to of closely students up guidelines per education We where skills hands-on including different wearing than month. of not of needed brought back nine one the these more the on end federal classes Initially, staggered local campuses. the masks

all at providing are a so training that normal can program. we hands-on their they through with Now, pace students progress

approximately Also, campus education with their were they interacting the the instructors and on so at clear, our onto coming XXX% via are time, XX% but online on back campus if training campus. of as are to they students happening the doing where live in students majority rest We students just have be most are campuses online. for vast of is broadcast, back would

we we the smaller are campus finding bring in engaged time. As back are groups, more were a in that students cover material more students period on to of and able shorter

the changes these of in us we how offer curriculum All are to explore leading our future.

approvals distance first, to all are necessary we XX. beyond regulatory offering education However, December keep seeking

training recall, to may all gave we all you institutions offer license accreditors DOE, shut forced the As to and on-ground learning. online since were states temporary down

with situation all don't what expect model, the we training be we learning we and students will the have since will the this provide good temporary which hybrid and be licenses developing offer and ending flexibility, Moreover, we don't if lower are year-end we more to permanently. taking know new about delivery distance by to learning engaging applied we bad programs for possibly COVID However, education a about current are distance our greater expect in extended, expenses.

especially period the We enthusiastically rewarding still our and making. embrace react it lab. are equally particularly to been in the classroom when online could of in be engagement I that new this student in instructional the by but and during procedures, back regardless stage exciting What's am instructors see they swiftly the tumultuous willingness was the the to progress the are learning was we them of get development or format, excited the

Our the schools. students reason other curriculums. our training they in over key receive love Lincoln is of why hands-on choose a all It they

move a down to complete on of have of we absences slow of reduce of leave on I graduation. lots for were much relatively was second visit stop business, of we his think the our while the perspective, students our through engagement profitability our extent as in From the resulted illustrate had we remarks, continue or during make financial or as operating to growth rate they low had students a detail our increased quarter share our while changes labwork to in not quarter to Brian towards we to sites, but who helps could will slightly progress greater which able certain make more short plans. programs the revenue progress to in clinical ground our expenses

transportation trade XX.X% which over prior of last year. increase by student in resulted segment students the starts year in population second grew quarter of an Our X.X% over skilled or XXX

We X,XXX low June of population. was population of reported Lincoln the comparatively to or our XX, levels our had our X.X% campuses students, of the our rapidly the absences pivot overall total of capabilities positive a the model. total peers, XXX high across for the our other number student finish segment helps XX.X% leave or last in students at and starts of our their level in number total their and of on impact illustrate this our as with grew to approximately call healthcare professions during population student to year. engagement as absences current students see ending below student May during the an a grew continuously resuming on many approximately and as increased Overall, leave which should XX% program distance of quarter, we revenues reduced of third mentioned the we we XX.X% And well Our XXX impressive segment but students. absences by leave and company. was the This

A being booking absence, on was a successful all behind to students and one facilities factor from major a at growth transition aren't focused being our training our to on heavily quarter Lincoln bringing when As absence. but reminder, into the revenue admissions equipment process that start student of enrolled our of one of see during remains aids remote. a leave leave XXX% second we the

we teams this Our job to which with deploy. outstanding have done continue admissions an transition,

reopened talented is being with this been because workers, to world productivity for high overall ready for While signing students. up number fluid is gap we demand healthcare continues forced The close increased the enrollment our year. our our generating students campuses with the much our previously. train to always costs. and as offerings of dire to some the When of by agreements increased. have campuses pandemic has Also, eager rapidly strong around levels, have in us and essential continues teachers operating to interest strong bridge Lincoln regions COVID where build healthcare response. partially the over and brought has that close The the attention cases career programs in proactively programs and landscape ready out team COVID-XX admissions need students real at to both our the to to so and set as and turn of marketing our skills teams last need messaging our March, existed remains be manage accelerated to is more experienced only pandemic

quick the response. that I asked assistance While be I simply given with simply the froze mentioned travel, new already asked landlords our the increased for to We curtailed in expenses. rents, campuses for all and quarter, our thank lowering all to profitability uncertainty want in hires prudent the organization

to Given results, that our achieved I in our happy strong goals say all am area. this we of

reopening student were vacant start With the issuing of and for up return the of to supplies X.X leave growth during books months. will quarter, of of on and more and more we campuses, occupying be many the consumable tools, second absence that the using students the facilities

In deployed The increase surrounding and our campus the these comprehensive opportunity May, let quarter the operations guidance over our that mix, planned currently classroom. the and uncertainties today. impact in of at combined second still guidance uncertainty provided in withdraw social distancing February. quarter. we we these full been the that addition, third each operating Because added pandemic the In to we and developments have to some the costs are in each to to fourth is measures few will have of others we face year us back all the reinstate of forgo result a

programs our this on my have the of However, procedures comments COVID-XX Queens distancing campus all new social to campus. continuing offer enrollments strategies presence for point a operating topline are his successful welding year are built a campuses at another noted morning, months. have additional pursue had electrical remarks XX perhaps increasing Melrose Longer of campuses. the operating campuses. perspective, of at and this We today cost of second new the I in and are Brian remarks. we into operating of will during half for from new and our metrics At program outlook the time, our during launch under continued existing a few and growth as our an just at our we strategies term, a at we coming From

specific facilitate We to today. also have opportunities to report growth tuck-in nothing but that continue explore would additional

serving and he upcoming to want Chairman the years our the Board. was to using at definitely highlight Governance and that uncertainties of expect XX Committee But a see Nomination especially and we actively I also and Bud the remain president our by caused curriculum with accreditation cash. arise capitalize opportunities college on the Given with on. more will Bud topics former Austin, election, brought education. are recent our prudent retired are COVID changes we discussions, will around being after we and Board, to Board and tremendous insights involved of than our

recently and will miss build institution background. with Strayer a insights Ivy or has his own League, of Plater historically state Wharton, guidance the his including former very Dr. an most of but on president form We MBA colleges Michael with every colleges worked unique from Dr. Besides will at postsecondary schools, Bud's that University. and black with community legacy Harvard as and feel almost being Plater graduate

and and could UPS, of Carlton excited President our join Carlton Board. professional global power have that and unlock more not him are I thrilled Carlton X,XXX highly Fleet more over the with of to is organization industry being our a the to to schools, technicians and lead we graduate, Engineering in Global education not helping & as speaking Dr. the Similarly, more has of active Maintenance Plater participating a remained involved Besides represents overseas Carlton Lincoln have could our for honored respected joining students Tech Carlton be Rose XXX,XXX potential. transportation than a helped his true often to now be We the Board. events. to scholarship honored have a Lincoln workforce in vehicles. and

new in we America's joined Jeremy Snepar Jeremy As months that the over closing a He well-regarded the our student in organization critical would with ideas work out six and rebuilding next and delivery to is leader we an acquisition, team thought as look class into is we announced had could the around leadership integrated gap next and year, Lincoln opportunities and our in working middle identify out Residence closing into Jeremy July placement. curriculum Entrepreneur job flush XXXX. operations a gap. in believe team middle that actively with to skills be beginning this are to component Lincoln

it the nation's of rise come We economy with reopened, in won't unemployment continue new once downturns. rises increasing better as has XX rate the seek have many past in the Lincoln's economic unemployed increases Throughout enrollment realization to to dramatic that the is further the that of and as to and seen economic back and our believe demand fully population the a leads, in programs have we to the jobs in even career. unemployed student during of operations, for paths nearly downturns will years unemployment increase

enrollments XXXX in During student the leads, years and after and increases recession saw last that between recession consistent population peaked X.X we started. XXXX,

unemployment student in we beginning to the much year faster continue this population XX,XXX we the and ramp our that and continuing imagine over same quarter a XXXX. the unprecedented up dramatic into past XX and at approximately in of students the fourth rise have million in the given peak the $XX XXXX generated during months, Remember, in However, today of EBITDA last of recession. campuses had five

are critical solid secure provide of skills needs our lifetime essential behind rewarding are key focus training education students our These critical our stable themselves looking career a that of Lincoln. A infrastructure our a soon with workers. infrastructure essential definition a worker and Homeland success which the to are leaving careers central Security We displaced meet after well-paying, enabling careers. Approximately the to is on of graduates establish careers to of for serve factor currently are any ready Department that pursuing can for opportunity. XX% U.S.

I well-paying, of proud which body range racial, the for social students also a backgrounds and our stable are of from those broad is economic careers student We of diversity referenced. ethnic, just preparing

we As helping long force, economic expanding labor participation the while in growth. are country's country's the a skilled result, our expand term

we racial As XX% body historically XX% groups helping in of half is XX% the African-American is other. we and This XXXX, underrepresented set Hispanic, by enter white, the breakdown diversity background student Lincoln second as XX% on country experience a in class. middle different in groups component key gap this as rebuilding view path narrowing to country's that economic the well success a the which wealth currently as

the Now the and a I would pandemic. like second turn to to for call of response our Brian our to over results review comments additional quarter Brian?

Brian Meyers

start and by the all team the everyone. the good I entire during COVID-XX Lincoln Thanks to want for morning through quarter tireless pandemic Scott their navigating thanking efforts challenges. and

our the was driven for the achievement Net which the one detail is our which to was savings, quarter nearly income for will cost representing of recent due was and improvement believe our pleased of transitioning efficiencies an strong strength EBITDA shortly. Similarly, million, quarter to for a higher XX distinguishing seasonality, almost and demand to This our the offerings it approach, admissions programs, income and diverse we to over that for a Notably, very challenges mentioned, are quickly delivery high with years our first have of career from year as The EBITDA the now remote in now quarter $XXX,XXX, I and despite in a success second last million years important Lincoln's process, year. these in performance in reopened. delivered programs and exclusively first campuses in hybrid ago. that has financial year. including by the second the $X income Scott times. the our million We half $X.X five education discuss compared increase time unprecedented highlights achieved quarter net in improvement net

prior strong in This X,XXX performance We growth start student our start underlying the the continues. upon year organic for new of demonstrates also QX. signing significant XX.X% very growth that approximately over student quarter had in students

growth Our in the years interrupted ahead first year-to-date with year coming the new only month starts starts past student by of last the in the when March. X.X% interruption X.X pandemic are of in over the quarter

sites starts of or increased students who In the XXX trends starts a the our our quarter, absence take leave XXX students provides continued ahead with X.X% students excluding after of programs. About return pandemic. to of and the about during the necessary the year. majority due to to labs their about leave positive was of were which of due of complete XX% these population students into externships addition, or quarter. hands-on by LOA We third anticipate the elected out to these absence on prior quarter that third in lack to Moreover, ending

the hybrid rest of to Any LOA education reopened population. reentries a for we working to additional our add are our reengage robust diligently can the that students, would now deliver campuses them have we As and experience.

highlight in excluding the key $X.X This cash impact was flow the in Not funds million. since additional is additional Another The CARES the calculated we financial received have in operations some metric the from QX QX only operations the including our a significant we Act flow of from contribution response in is from cash of positive highlights me share from $XXX,XXX federal let XXXX. pandemic. improvement generated pandemic. to

to a revenue as that remote more and programs our we was the as reduction online. extended programs campus these by by $XXX,XXX successful of of revenue financial of the our revenue programs learning our half to with expect nursing factors. a campuses two related limited dorms the credits was during non-tuition recognize specifically, pandemic, down well overall the decrease during of the quarter approximately One, programs impact cost deferral prior months a year. experienced student year length We closures. this the our for cosmetology $XXX,XXX second connection by mainly transition in from fees offset to Our three issued to of $X.X for than while meal slight to and few $XX.X deferred More reduction the compared of attributed million revenue Two, lengthening during as closed main to revenue due quarter. of the million slightly being

the of but revenue federal Department students to awaiting LOA. not further was be CARES our And this on we as Education, LOA do lower from the to out anticipate Act. guidance on are recovered We recognize three, students through revenue due

sales result side, for over revenue Operating million by On Also, and lower of savings largely largest several with the resulted we representing during QX lower approximately expenses locations operating general positive the improvement quarter, the at due a from our during from saving increase for from rent benefited $XXX,XXX, coupled cost level. marketing instructional, the $X.X income positive quarter. This at or $X.X expenses. Facilities facility our million million had X.X% million income prior a expenses population was operating resulting $X.X student to were abatement campus closures. year. $X.X facilities,

relief. this online the instructional thankful million landlords these supplies savings very payroll and quarter. driven consumable expense were are in decreased We throughout providing to rent our $X since mainly for students by Also, expenses

In addition, to due drop QX with our And in expense due $XXX,XXX to salary combined salaries shift expense timing decreased travel by marketing reps lower $XXX,XXX resulting investments production. qX about admissions decreased to from lastly a from a significant furloughs.

realize normalized these normalized we a I for to more return anticipate that the also returning savings XXXX levels remainder to state. our to in underscore most operations cost as of While we want expenses operating QX,

as and a higher increase consumables the over active prior certain to expect such expenses population. student and tools books due related to We year

in continue remotely. anticipate for travel However, compared to offset, expense employees savings admission personnel of ongoing processes to to as the limit year conduct we safety we and prior travel our

on remains entire further team performance. optimization to our So financial improve highly focused cost our

year year remained and Lastly, year. completed result rates a corporate at prior the compared to for financing of prior last a over quarter ago $XXX,XXX lower as flat quarter decreased the result fourth And we to compared year. transaction $XXX,XXX interest expense outstanding a of of million as interest to lower essentially debt in expenses $X.X

liquidity. to turning Now

As $X.X $XX.X compared available of XX, of to had approximately funds we June million a million ago. year

the to and facility net combination QX the CARES funds. cash our federal of million and equivalents improved of of Act the us consists significantly availability under $XX.X fourth of strengthen financial performance quarter have Our the The sheet. last our cash our balance that available at and credit end $XX financing allowed excluding funds completed transaction we in million of year

such, reduced cash our approximately XXXX. of half while flow operations believe typically by our restricted million. will this from debt year over in by the And we We in to seasonality. despite increasing the second due As pandemic, continue $X cash million generate $X the we trend

In terms funds, CARES federal of a the parts. Act of in received $XX.X have two we million total

has For XX,XXX for to the first over Lincoln expect to to have $XX.X the we the students million received of earmarked related funds and distributed part, $XX.X almost disruption months. offset million their To-date, few additional operations. next remainder we the the students expenses distribute school of to

also million the to for received For the instructions used the towards aid of Lincoln pandemic with towards or the to part, the company's changes just a additional delivery I as significant second be cost purpose which described. of associated result may $XX.X students

laptops our in these And which guidance. cover expenses, to related We $X.X to have who XX, expense lastly, P&L our utilized June eligible for remote to funds we $X.X XXXX million campuses of million purchase of to our learning offset recorded impact of access not largely students of our closed. while credit As were the regarding XXXX, year-to-date. did otherwise

to population starts profitability half and of year-to-date the year's student continue first the During metrics, last in levels. our enrollment exceed year,

we still several are variables While provided of this the that experiencing be second we metrics impacted to an pandemic. half the operating can on the continue by for have some morning, outlook year operating

Thank postpone turn we elected we have take continue uncertainties, I to that, to issuance our will we the Operator? call time will for Given today. progresses. back decision questions. and the to so XXXX with this you And over your year operator evaluate of can the the as these guidance your

Operator

Instructions]. Research. our Barrington And Paris Alex with [Operator question from is first

Alex Paris

Hi guys. Congratulations on the quarter.

Scott Shaw

Thanks Good morning. Alex.

Brian Meyers

Good morning Alex.

Alex Paris

call. quarter. starts. have last that, beginning were strong I given commentary quite with expected a the questions, in your We on had obviously Starts few the

off? the second, you got In to far? that fact, fall I this trace COVID you expected, pass, And in what today to-date, lift come have enrollments rise phenomenon. seen in lift are to that as a some beyond have related some QX. could might you you noticed that first what wondering I from that terms But to QX or Did so delays COVID of unemployment pushed and from you QX? in term be am seeing realize even any

Scott Shaw

Yes. as I from first of quarter I did of were count, as would guess, will anticipate I I unemployment carryover, expected. some you the get very the Yes, second fall. still the yet can't into Enrollments But quarter into reinstated the a on I and remain maybe frankly that we as stopped say big are happening take that the later receiving because time. there supplemental strong. that. uptick Obviously, people, mentioned, insurance summer that It's levels. that benefits. see

mainly people realize maybe are in, comes to a So people as come as would that be is time. may kicks But fall jobs more start because to and right there and back going in not their is assistance we some of summer that think lots maybe there enjoying seeing to I just with the the healthcare. side, see strength And I in about close, be not government provide talk them demand of what uptick. will interest much anticipate just or I as an the healthcare now, going is, of as the summer

I certainly little I otherwise, that's uptick that is see know don't the coming. bit. a up big But So

Brian Meyers

by I X%. The quarter. over did year only March lift a into starts year-to-date from get starts are prior little over the second But would our thing add, we going from Alex,

Alex Paris

What's of then are you. chain? Good Conversion, like the strong. And your point. productivity Thank enrollment inquiries been show that? rates, things

Scott Shaw

our better. that are we teams experiencing doing are Yes. What is

enrollment Because all- standpoint, the rates in we the population. are have down. enrolling past. still than gone we from definitely have So our show we in-all students of are the some our more growing of strong But

understand being finding success something to And folks enrollment We overall trying continue growth can exploring us. that's students seem virtually more of higher that are operate that it's we that much to we driving leads the the speak to going so that rate. with are able And be converting just forward. for frankly the admissions and into at a and

Alex Paris

at you end Great. the students still the XXX on And of quarter, LOAs. had then

those all, working be are You restarted? completely down. they expect will you When the that LOAs, will do

Scott Shaw

opportunities. because expect to, to will to wait about Yes. two-thirds all up either do you. of of say need them to don't had a restart, on-ground Well, honest maybe want I least around third I for on-ground finally work are a not there as at as of them chance I anticipate haven't out they graduate. to much to would that be with them just to would of they

So of get a some probably at third things of online. to I But are But doing just would back. them will imagine, the back. adverse think they we them, we I other two-thirds, least some get of too them definitely

potential added in today. since population population all it don't our we it's So count

Brian Meyers

I third One few the we students is, Correct. on will really LOA. thing the are end by quarter anticipating still to very left add of have

Alex Paris

Got All been now, getting And in has in your things you. and right. it which the Or reopened is there social rules. they steadily of restrictions, campuses same? restrictions? great. worsened are about state terms all has better some federal, cases? then, local distancing Obviously are been Have Or

Scott Shaw

our do of in bringing and us. having bringing have the is period of will with shorter say time. have students changes and there shifts a I on on on distancing better say, them the What's their Yes. dealing I in just better in and labs would getting restrictions training execution been no social that imposed more, at multiple students for getting getting

scheduling. at much We gotten have better that

students increased becoming bringing or we ability haven't to-date. it's on are effective. that campus that decrease the either to But experienced more students number bring So more of to our on we anything

Alex Paris

what for are on And now the question my All last guess is, implications long I of then COVID your term business. right.

your what got the started recession the drive higher Maybe had I in post-COVID expect will bit drive would just should little in and additional think learning a a you comments, prepared future. you on a Lincoln? demand commentary in retention starts. assume I ensuing It higher higher

Scott Shaw

Yes.

a we to that I much are resilient stronger, think going company. from better this emerge

definitely than we can we ever remotely more before. a are could learning We that we lot do do thought

well as distance we experience, some students eyes whole of to our as they expectation will is My efficient. what be definitely new of going opportunities. aspects whatever this sort. potential really We curriculum learning what blended to enjoy is call We are more aspects have Lincoln our don't it, that definitely from want enjoy. opening a you forward they And nightmare that will know hearing

We will doing virtually. things be more

things doing way. model. And be will attract We I in our that a education people new better to it think will

all I very think we it's once to going positive get this. through be

Alex Paris

and Well, the come. that's is behind the great. yet worst best sounds you like It to is

So taking for congratulations. questions. you Thanks my

Scott Shaw

Thanks Alex.

Brian Meyers

Thanks Alex.

Operator

Thank you.

from is question next Sharma Riley. with B. Our Raj

Scott Shaw

Raj. morning Good

Raj Sharma

and Scott you are morning Good How doing? Brian. Hi.

Scott Shaw

Good.

Raj Sharma

the on results. Congratulations good

Scott Shaw

Thanks.

Raj Sharma

noted to of I quarterly as I guys non-tuition revenues you a better. down revenue, because know just QX rate wanted for little that the to year-on-year and deferred understand bit tuition costs, seems the average LOAs.

would what impact level overall have on can me understand this the had COVID been had on of was we help the So revenue? you reported enrollment? What revenue COVID not

Brian Meyers

I Great. Hi will Raj. first. that that

$XXX,XXX another as graduation that our as of dates, for So $XXX,XXX. was extending we think the of like talked housing about well as when some I own dormitories the we disclosed

that we What the that material. was have like you would I So revenue students have were impact if earned what if been don't don't LOA, I million. on all for have $X.X those, the

Scott Shaw

Right.

quarter mean of of in for you that the I weeks absent, revenue number those would calculation, assume quarter, there guess just, the is for X were you recognition or would I for LOAs the right. were no the So most

Brian Meyers

And to the of more started XXX. with LOAs. ending They down XXX came

had So earned. revenue even would we have more

Raj Sharma

And June for the right. show also bit they good what Correct. fall help looking a That's little are are me The you and rates? quarter really the are how could for starts quarter.

Scott Shaw

ahead. Go

Brian Meyers

insight July. just I of starts remarks, did are which prior ahead a July, In we prepared into start. little year my gave our we mention, will

good that's a So metric.

Scott Shaw

Yes.

are about that's all we to guidance much as everything looking direction and right is can So That's in as going say. positive. give. I But the very moving

Raj Sharma

Right.

lot to, mean show the as rates part there am of trending are okay there just So go a to hesitation is through students I know on with their I of uncertainty coursework? well? and trying is I so lot

Scott Shaw

Yes.

first in but simply a are of I down you the off, math. remarks, Raj, As our little, to show mentioned my sorry cut that's somewhat rates because

are much higher. enrollments so Our up

high productivity are reps' folks. with admissions exceedingly We finding our

is us greater that students' than hesitation come on to I so to And parts any was. say wouldn't ever it there

of the strong relocating quarter. exceeded students frankly for or budget. In high fact, may were to school quite many us come our school And high you are school our those not starts know, and as to may we high

hesitation So no unusual real we seeing are part of the COVID whatsoever on because students' situation.

Raj Sharma

And just last question.

see is So Or to lag? the do related or be see in quarter? you and that pickup unemployment see happening fall first going recessionary a rate with on the enrollments, starts? quarter you did the there an Do

Scott Shaw

Obviously, just it we have would the don't but of the several see the definitely are something yet. that spike we happened a expect seeing during happen I saw in situation. And I But Yes. definitely the latter how past. fall, to it to of part like see this that different bit months don't is last feel certainly in occur. I interest I take recession. the given did causing strong a But for it things

Raj Sharma

thank this and will Well, Great. Congratulations you so take I much again. offline.

Scott Shaw

Raj. Thanks

Brian Meyers

you. Thank

Operator

Thank you.

from is with Colliers. Steven Frankel question next Our

Steven Frankel

like would the I morning. get into pipeline. little to to Good insight a more try

you numbers give growth in in some on could and us maybe contracts on year-over-year basis? a growth the the So leads

Scott Shaw

I with future definitely disclose his we year, the would with detail, more the their the can of of that Yes. recession maybe recession. going going mentioned people say sinking just July level remarks, for Steve, anticipate, there. strong growth We thinking in this as And I I consistent I level, or a anticipate I in Brian and historically. anticipating of part and get a and would forward I in All it good is, very in as going comfortable had and what that to for see indications as latter forward. don't increased said, was am because growth back about more And school, hoping out nice

Steven Frankel

and your going if you blended going adopt to sounds reduction learning, And are is material Okay. permanently that it like costs fixed forward? you in blended adopt a learning

Scott Shaw

yet, it What we Not in to going some have. of that new look fixed costs is in efficiencies I but will out not the would rolled be it's it some receiving operate obviously delivered the existing efficiencies. because could say, we anticipate smaller all campuses, we And there can going to the of would have near simply I educational be there, Yes. once a open footprint number obviously be, forward we because does do meaningful term. a as though, online.

Steven Frankel

good your some knocking Okay. that of the that footprint destination? a LOAs you a relative Still do, Is quarter. you of good some a than did but fact And then to larger have down very progress. tend job reflection the of competitors, to in work the to a commuter

Scott Shaw

Yes.

I think that's to exactly certainly drivers one of it. the

six four, and students come two, day Our hours then into for able five, return are a to our home. campuses three,

commitment pay so certainly relocate be if for an had and a to to challenging day. they abbreviated it And more would make housing

Steven Frankel

have messaging attract and Right. are new changes the with And model to the made focus any you either the on channels your students? new potential to the marketing you using online, or strategy,

Scott Shaw

No.

attract changing it channels in made things online becomes trying much at of certainly basically we students and other our our haven't who same can order We channels we with is. of existing where as We said, as future are we benefits But constantly it, more nature really continuing and any part should are a advertising. students. social things our are of and articulate the training in to potential changes But due media, new or order looking attract in new yet. to students in until clearly be our I that of always the our are of exploring we by excited messaging find why to and form forms

Steven Frankel

that next And graduating currently quarter? What's What's job market the your like telling job this question. quarter for my those last or look are board you?

Scott Shaw

we did number and actually actually ones that that they orders are the and employers a days are respond. those a seeing we We Well, survey XX% that what our yes, this of is responded are picking of that two of just did ago up hiring. said, and

seeing less. we are the uptick. where, we opportunities an had certain we I certain placement recently over are an seeing certainly rates weeks. uptick. would last There are overall, And uptick and the say, an areas So in are markets our couple But

think I becoming are So things to that more back normal.

Steven Frankel

so much. you Thank Great.

Scott Shaw

you. Thank

Operator

with question next is Instructions]. And our [Operator from Moldow Canaccord. Austin you. Thank

Austin Moldow

Hi. Thanks taking for questions. my

QX. You mentioned on shifting QX are to spend Can can making you some about your And also speak you broadly the marketing elaborate changes you marketing more to channels? that? from

Scott Shaw

Sure.

one made the that that production. So was on we simply change

TV uncertainty launch given delay are we creating just figured ads. just some We new we TV and could the new advertisement those the of

are a out Brian, for to trying costs. production I channels quarter moved second $XXX,XXX, used of taking marketing, channels be from to have not. with day-to-day events we new situation, the you Overall, it's can figure one battle, place. the what don't are COVID what would Obviously, and of always in working share what is, get. That about to that we leads third So given sources we the quarter the

word the we that get have still the get resources with vast so doing. channels try more Obviously, social Internet our are students reallocated And we and there, dollars more to marketing get into possible. majority engaged driving exposure is all to mostly out, wherever probably the media of

some to get that we ways see And for lots channels. and some are There's We are we and an nature. where people people creativity looking other new out billboards environment increased that of markets more out. exploring have maybe are going things this not there opportunity, in certain attention of when staying in peoples new home

So I that's share really about you. can all with

Brian Meyers

But opportunities The add, production marketing. there some one for QX. I did will thing move think out some we there are into we

So additional and prior look to we will versus year as marketing some even spend QX versus QX well.

Austin Moldow

that demand there seeing the then going the quarter? are a lot a it. my to And maybe is and talk trend question forward? forward, expect segment in during And can those for sector little helpful. going the we of healthcare is, trends in you Got quite you professions given healthcare what second knowing you right about now your That's how saw

Scott Shaw

Yes.

and certainly, definitely away, a in out for all are sector Certainly, may want of us and I people for need to us. seeing think media all people to seem there get to help the more others who great of healthcare better, We that the about attracted healthcare it would to be workers. strong the serve I scaring Instead people response say, that that future. help lot and attracted the is in which attention need is

anticipate definitely continue a that because people aging this with never because be pandemic, strong great and anywhere for need just just we nursing know, even that our there upswing around is going seem to will and the are And would all a unemployed. there, it's I work they we So can seeing especially population, some forward, profession such programs. the without as they

Austin Moldow

Great. Thank you.

Scott Shaw

questions. for Thanks pleasure. Yes. My the

Brian Meyers

you. Thank

Operator

turn this you. Thank remarks. concludes And our Shaw to Scott back call today. for the to I final like Q&A session for will

Scott Shaw

quarter. rebuild during momentum closing, began we derailed to in the the In quarter, pandemic the first operator. you second that the Thank

population We achieved significant second quarter have and increased for student in growth, net student start years. five first the regained the income during time

past through to campuses the expanded are and procedures and We industry the curriculum Lincoln a change under number workers revenue have technology seek our Also, both our students months, Board, head ways growing rigid we enrollment new at operating to training Tech our we and as in looking have displaced we recognized education. toward new we more streams. all opportunity are and Furthermore, more needs protect a reopened better our talent. fall instructors and and over as six we deliver opportunities are exploring and as

future Lincoln's While term, remains near to create the the COVID-XX pandemic continues uncertainty bright. in

stayed Finally, new years. have our the shareholders I welcome with the would to us past shareholders who thank and like several over

and has Over potential. months, begun progress recognize Wall Street three to past our the our

XX. in Our everyone. volume Thanks on all early shareholders look reporting shares our our a and first then, increased We day. of nearly have interest safe average May progress have and and risen fourfold. Until trading our new to results stay on daily great appreciate our members approximately this XXX% updating forward since November. Furthermore, by quarter team has

Operator

conference you. you and Thank today's for call. gentlemen, this Thank Ladies concludes participating.

may You disconnect. now

Lincoln Educational Services (LINC) 11 Aug 202020 Q2 Earnings call transcript