Back to top

Image: Bigstock

Lincoln (LINC) Completes Nashville Campus Divestiture to SLC

Read MoreHide Full Article

Lincoln Educational Services Corporation (LINC - Free Report) sold its Nashville campus to Southern Land Company’s (SLC) affiliate for $33.8 million.

On Sep 24, 2021, LINC entered into a Contract for the Purchase of Real Estate to sell 524 Gallatin Avenue, Nashville, TN property. Per the deal, LINC and SLC signed a lease agreement, which allowed Lincoln to continue to occupy the nearly 16-acre property on a rent-free basis for the next 15 months. Also, Lincoln had three options to extend the lease for consecutive 30-day terms at $150,000 per extension term.

Although LINC has not yet determined the new location, it expects the new facility to be EBITDA neutral for the first year of operations with anticipated efficiencies. It also expects to invest $15-$20 million for the buildout of the new campus, including two new programs — HVAC and Electrical.

Zacks Investment Research
Image Source: Zacks Investment Research

On Jun 13, the company’s stock plunged 2.78% in a day trading session but grew 1.27% in the after-hours trading hour. In the year-to-date period, the stock of this Zacks Rank #3 (Hold) company jumped 9.7% compared with the Zacks Schools industry’s 2.7% rise.

In first-quarter 2023, the company’s adjusted earnings grew 3 times from a year-ago level. Revenues also rose 6.9% year over year, backed by its new hybrid teaching model. The new model increased program efficiency and accelerated revenues for certain evening programs. A 9% increase in average revenue per student driven by higher tuition also added to the growth.

Backed by solid first-quarter results, the company raised its 2023 guidance. Revenues are now expected within the $355-$365 million range compared with $345-$360 million projected earlier. Adjusted EBITDA is likely to be $21-$25 million, up from $19-$24 million expected earlier. Adjusted net income is projected in the range of $9-$12 million versus prior anticipation of $7-$11 million. Student start is anticipated to increase by 5-10%.

In May, LINC partnered with Hunter Engineering, the leading under-car service company, to open a Hunter Training Center for students and many employer partners/technicians.

Stocks to Consider

Some better-ranked stocks in the Zacks Consumer Discretionary sector are:

Royal Caribbean Cruises Ltd. (RCL - Free Report) presently has a trailing four-quarter earnings surprise of 26.4%, on average.

The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates growth of 48.3% and 160.5%, respectively, from the year-ago period’s levels.

RCL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Skechers U.S.A., Inc. (SKX - Free Report) currently carries a Zacks Rank #1. SKX has a trailing four-quarter earnings surprise of 18.8%, on average.

The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates gains of 7.8% and 31.9%, respectively, from the year-ago period’s levels.

Crocs, Inc. (CROX - Free Report) currently carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates rises of 13.2% and 5.7%, respectively, from the year-ago period’s levels.

Published in