Lincoln Educational Services F4Q07 Earnings Call Transcript

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2008-03-06 12:18:08.0

Tags: Lincoln Educational Services Corp.

Question-and-Answer Session

Operator

Ladies and gentlemen, if you wish to ask a question, please press star followed by one on your touchtone telephone. If your question has been answered or you wish to withdraw your question, please press star followed by two. Questions will be taken in the order received. Please press star one to begin.

And your first question comes from the line of Sarah Gubins of Merrill Lynch. You may proceed.

Sara Gubins -Merrill Lynch

Hi, good morning.

Dave Carney

Morning, Sara.

Sara Gubins -Merrill Lynch

Could you talk a little bit about enrollment trends by program area. And then, within auto, any thoughts on why high schools improving, but media is still struggling?

Dave Carney

Well, let me start with the trends across the five verticals. I would say that all of the verticals, with the exception of auto, are trending favorably based on our media advertising. Auto is still flat. We contributed to, or attribute it to basically the inability to compete with the job market and we’re making changes in our advertising to become more effective and try to reach those folks. The high school side of it is very encouraging. And Shaun mentioned the fact that we expect to be flat on the auto side in terms of starts for the first half, the build up year-over-year is pretty encouraging and I think that really relates to the fact that we have a much stronger sales force and they see the career opportunity, the high school graduate.

Sara Gubins -Merrill Lynch

Great and then any color on health care and other programs, skilled trades, that sort of thing.

Dave Carney

Well the skilled trades programs, as we mentioned, we’re very encouraged by the build up increase. We just rolled out the electrical and welding in the Grand Prairie, Texas facility, with our first class starting February 29, very encouraging. We expect that to continue nicely over the balance of the year. So, that’s a vertical with a lot of upside from our standpoint. As far as health sciences goes, the introduction of the LPN program in New Jersey is building nicely, the medical assisting continues to grow well and as far as hospitality services and so on, we’re encouraged there as well, Sara.

Sara Gubins-Merrill Lynch

Ok and then just follow-up questions. Can you talk about your plans for price increases next year?

Dave Carney

We would expect, we’ve already increased prices effective January 1, in many of our schools by about 3%, 3 to 3.5%.

 

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