Earnings Call Excerpt
Lincoln Educational Services Corporation (LINC)
Q2 2008 Earnings Call
August 6, 2008 10:00 am ET
Executives
Dave Carney - Chairman and Chief Executive Officer
Shaun McAlmont - President and Chief Operating Officer
Cesar Ribeiro - Senior Vice President and Chief Financial Officer
Analysts
Sara Gubins - Merrill Lynch & Co.
Gary Bisbee - Lehman Brothers
Amy Junker - Robert W. Baird
Kevin Doherty -Banc of America Securities
Presentation
Operator
Welcome to the second quarter 2008 Lincoln Educational Services' earnings conference call. (Operator Instructions)
Before we begin today's call, the company would like to remind everyone that this conference call may contain certain forward-looking statements relating to future events, future financial performances, strategies, expectations, competitive environment, regulations, and availability of resources. Such forward-looking statements are based upon current expectations that involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors and other risks, which are more specifically identified in Lincoln’s filings with the SEC.
I would like to turn the call over to David Carney, Chairman and CEO of Lincoln Educational Services.
David Carney
Welcome to the Lincoln Educational Services second quarter 2008 earnings conference call. Joining me today is Shaun McAlmont, our President and Chief Operating Officer, as well as Cesar Ribeiro, our Senior Vice President and Chief Financial Officer.
Following my remarks, Shaun will provide an update on operations and Cesar will provide a detailed review of our second quarter results. We will then open the call for the question-and-answer session.
Now turning to our results from continuing operations, the second quarter was another strong quarter for the company as we continue to benefit from the continued growth initiative including new program offerings, program transplants, campus expansions, start-ups and strategic acquisitions. Along with the growth initiatives, we clearly are benefiting from the positive results from marketing and recruitment efforts and operating efficiencies. During the second quarter, we posted financial results and students start and enrollment growth that exceeded the same quarter a year ago as well as the guidance ranges that we provided on our first quarter call.
We reported earnings per share from the continuing operations of $0.05 in the second quarter versus $0.03 in the same quarter last year. Revenue was $85.1 million in the second quarter, up 13.8% year-over-year. Revenue growth was driven by a combination of new-student start growth of 20.9% during the quarter and a beginning carry-in population that was up 9.3% over the prior year. Now, turning to starts. Second quarter 2008 starts of 5,782 were up 20.9% versus the same quarter a year ago reflecting another strong quarter of year-over-year starts growth.
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