 Conference call today at 10 a.m. ETWEST ORANGE, N.J., Aug. 11, 2020 GLOBE NEWSWIRE -- Lincoln Educational Services Corporation Nasdaq: LINC today reported operating and financial results for the second quarter ended June 30, 2020 as well as recent business developments. Operational and Financial Highlights for the Quarter Ended June 30, 2020 vs. June 30, 2019 Student starts up 15.2; Transportation and Skilled Trades segment rose by 13.5 and Healthcare and Other Professions segment grew 18.8. Ending population increase of 7.5 or 800 students, excluding approximately 700 students who are on a leave of absence. EBITDA of 3.0 million delivered through cost management actions to address COVID-19, net income of 800,000. Cash-flow from operations of 18.4 million and adjusted cash-flow from operations of 3.9 million excluding CARES Act impact. Lower operating expenses resulting from cost management efforts and the impact of COVID-19. Revenues of 62.5 million declined by only 1.7 due to success in maintaining a higher enrolled population through successful transition to remote learning. All campuses reopened in the second quarter except for the New Jersey campuses which reopened in July and the New York campus which reopened in early August after the quarter end. Our second quarter results continue to demonstrate that Lincoln is successfully managing through many of the challenges presented by the COVID-19 pandemic, said Scott Shaw, President and Chief Executive Officer. The teams effective execution of our plan as we first transitioned to distance learning and then re-opened our campuses for on-site instruction allowed us to achieve another strong quarter. We grew student starts at a double-digit rate, have continued to keep our students engaged while increasing graduation rates. The uncertainty of the current economic landscape has also led to an alarmingly high unemployment rate, unlike any other period in modern times, due to its rapid onset. I believe our past success during periods of higher unemployment positions Lincoln to help a growing number of students acquire new skills for in-demand essential careers. As of today, each of our 22 campuses are open for limited in person instruction and more than 11,000 students are progressing towards a new career. Despite the challenges presented by the pandemic, we are excited about the future prospects for our company. SECOND QUARTER 2020 FINANCIAL RESULTS COMPARED TO SECOND QUARTER 2019 Revenue was 62.5 million, down 1.7 from 63.6 million despite the 11.0 increase in average student population for the quarter. The impact of COVID-19 has extended graduation dates for certain programs due to restricted access to externships sites and classroom labs. These restrictions have deferred 0.9 million in revenue to the second half of the year. In addition, non-tuition revenue was reduced 0.8 million due to credits issued to students for dorm and meal fees resulting from campus closures caused by COVID-19. The dorms are owned and operated by the Company. Student starts increased 15.2. As a result, the Companys total ending population as of June 30, 2020 grew 14.0 compared to the prior year. After excluding students who are on leave of absence as a result of the impact of COVID-19, the ending population grew 7.5 or approximately 800 students. Educational services and facilities expense decreased 11.8 to 26.2 million. Reduced costs were a result of several factors including facilities cost savings due to facility closure during the quarter as a result of actions taken to control transmission of COVID-19; renegotiation of lease terms at certain campuses reducing rent expense; and the reduction in instructional and books and tools expenses as a result of students completing their course remotely. Selling general and administrative expense decreased 2.1 to 35.2 million. The decrease was primarily driven by cost reductions in sales, student services, and marketing investments, partially offset by an increase in bad debt expense and salaries and benefits expense. Operating income increased 3.3 million during the quarter to 1.2 million from an operating loss of 2.1 million in the prior comparable period as a result of facilities closures due to COVID-19 in addition to managements cost savings initiatives. Net income increased to 0.8 million, or 0.02 per diluted share, compared to a net loss of 3.1 million, or 0.12 per diluted share. At quarter close, total available liquidity was approximately 32.5 million consisting of cash and cash equivalents and restricted cash of 11.5 million, excluding amounts received under the CARES Act, and approximately 21.0 million available under the Companys credit facility. Total debt outstanding under the credit facility as of June 30, 2020 was 18.1 million compared to 26.5 million as of June 30, 2019.SECOND QUARTER 2020 SEGMENT FINANCIAL RESULTS COMPARED TO SECOND QUARTER 2019 Transportation and Skilled Trades SegmentRevenue was 42.9 million, down 2.5 from 44.0 million despite the 6.9 increase in average student population. Student start growth increased 13.5 for the three months ended June 30, 2020 as compared to the prior year comparable period. As a result, the Companys ending population as of June 30, 2020 grew 8.8 compared to prior year. After excluding students who are on leave of absence as a result of the impact of COVID-19, the ending population grew 2.3 or approximately 170 students. Non-tuition revenue was reduced 0.8 million due to credits issued to students for Company owned dorms and meal fees resulting from campus closures caused by COVID-19. In addition, as a result of the impact of COVID-19, graduation dates for certain programs have been extended due to restricted access to externships sites and classroom labs which resulted in 0.1 million in revenue being deferred to the second half of the year.Operating income increased 2.4 million, or 96.1 to 4.9 million from 2.5 million in the prior year as a result of closed facilities in addition to managements cost savings initiatives.Healthcare and Other Professions SegmentRevenue remained essentially flat at 19.5 million for the three months ended June 30, 2020 and 2019, respectively, despite the 18.9 increases in average student population. Student start growth increased 18.8 for the three months ended June 30, 2020 as compared to the prior year comparable period. As a result, the Companys ending population as of June 30, 2020 grew 24.4 compared to prior year. After excluding students who are on leave of absence as a result of the impact of COVID-19, ending population grew 17.9 or approximately 640 students. Partially offsetting student start growth was the extension of graduation dates for certain programs which have been extended due to restricted access to externships sites and classroom labs due to COVID-19. These restrictions have resulted in 0.8 million in revenue being deferred to the second half of the year.Operating income increased 0.9 million, or 48.5 to 2.7 million from 1.8 million in the prior year driven by closed facilities in addition to managements cost savings initiatives.Corporate and OtherThis category includes unallocated expenses incurred on behalf of the entire Company. Corporate and other expenses remained essentially flat at 6.4 million for the three months ended June 30, 2020 and 2019.SIX MONTHS ENDING JUNE 30, 2020 FINANCIAL RESULTS COMPARED TO PRIOR YEAR Total revenue increased by 5.7 million, or 4.5, to 132.5 million, as compared to 126.8 million for 2019. The Transportation and Skilled Trades segment revenue increased to 92.0 million a 3.6 million increase compared to 88.4 million in 2019. The Healthcare and Other Professions segment revenue increased to 40.5 million a 2.0 million increase compared to 38.5 million in 2019.Operating loss decreased by 6.8 million, to 0.2 million compared to 7.0 million in the prior year comparable period. Educational services and facilities expense decrease by 3.2 million, or 5.4, to 56.5 million for the year from 59.7 million in the prior year. Selling, general and administrative expense increased by 2.2 million, or 3.0, to 76.3 million from 74.1 million in the prior year.CARES ACT FUNDS Through the Coronavirus Aid, Relief, and Economic Security CARES Act, the Federal Government and Department of Education have demonstrated their recognition that students are being adversely affected by the continued disruption caused by COVID-19. Lincoln was awarded a grant of approximately 27.4 million to help ensure the continued education of its students. The majority of the funds have been disbursed to students to offset their additional expenses related to the disruption of school operations including eligible expenses under a students cost of attendance, such as food, housing, course materials, technology, health care and childcare. The Company received 13.7 million from the first installment which is intended for emergency grants to students. The Company distributed 11.1 million to the students and expects to distribute the remainder over the next few months. In addition, the Company received 13.2 million of the 13.7 million from the second installment which is intended for institutional costs and additional emergency grants to students. The Company utilized 1.3 million of the institutional funds for reimbursement of permitted COVID-19 expenses as of June 30, 2020. The DOE has published guidance regarding permitted and prohibited use of these funds and requirements for reporting the use of these funds. 