Lincoln Educational Services Corporation Announces Extension of Share Buyback Program
07 May 2024 - 11:00PM
Lincoln Educational Services Corporation (NASDAQ: LINC) today
announced that its Board of Directors has authorized extension of
its share repurchase program for an additional twelve months
through May 24, 2025.
On May 24, 2022, the Company announced that its
Board of Directors had authorized a share repurchase program of up
to $30 million of the Company’s outstanding common stock. The
repurchase program was initially authorized for twelve months and
has since been extended and increased to $40 million. Since
inception of the program, the Company has made repurchases of
approximately 1.7 million shares of the Company’s common stock at
an average share price of $5.95 for an aggregate expenditure of
approximately $10.3 million. Currently, $29.7 million remains
available for repurchases under the authorization of the
program.
As previously disclosed, purchases may be made
in open-market transactions, in block transactions on or off an
exchange, in privately negotiated transactions or by other means as
determined by the Company’s management and in accordance with the
regulations of the Securities and Exchange Commission. The timing
of purchases and the number of shares repurchased under the program
will depend on a variety of factors including price, trading
volume, corporate and regulatory requirements and market
conditions. The Company expects to fund repurchases with its cash
on hand and funds generated from its operations. The Company
retains the right to limit, terminate or extend the share
repurchase program at any time without prior notice.
“Our Board of Directors’ decision to extend this
share buyback program reflects our continued commitment to
optimizing our balance sheet and returning value to our
shareholders,” said Scott M. Shaw, Chief Executive Officer and
President of the Company. “This share buyback program demonstrates
our thoughtful capital allocation strategy to enhance our franchise
value for the long term. If used, we believe this share buyback
program provides an excellent opportunity to deploy cash and
enhance shareholder value without compromising the financial
flexibility necessary to continue investing in key higher-growth
opportunities”, Mr. Shaw said.
ABOUT LINCOLN EDUCATIONAL SERVICES
CORPORATION
Lincoln Educational Services Corporation is a
leading provider of diversified career-oriented post-secondary
education. Lincoln offers recent high school graduates and working
adults career-oriented programs in five principal areas of study:
automotive technology, health sciences, skilled trades, business
and information technology, and hospitality services. Lincoln has
provided the workforce with skilled technicians since its inception
in 1946. Lincoln currently operates 22 campuses in 13 states under
4 brands: Lincoln College of Technology, Lincoln Technical
Institute, Lincoln Culinary Institute and Euphoria Institute of
Beauty Arts and Sciences. For more information, go to
www.lincolntech.edu.
FORWARD-LOOKING STATEMENTS
Statements in this press release and in oral
statements made from time to time by representatives of Lincoln
Educational Services Corporation regarding Lincoln’s business that
are not historical facts, including those made in a conference
call, may be “forward-looking statements” as that term is defined
in the federal securities law. The words “may,” “will,” “expect,”
“believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,”
and “continue,” and their opposites and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are based on information available at the time those
statements are made and/or management’s good faith belief as of
that time with respect to future events, and are subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in or suggested by the
forward-looking statements. Forward-looking statements should not
be read as a guarantee of future performance or results and will
not necessarily be accurate indications of the times at, or by,
which such performance or results will be achieved, if at all.
Generally, these statements relate to business plans or strategies
and projections involving anticipated revenues, earnings, or other
aspects of the Company’s operating results. Such forward-looking
statements include the Company’s current belief that it is taking
appropriate steps regarding the pandemic and that student growth
will continue. The Company cautions you that these statements
concern current expectations about the Company’s future performance
or events and are subject to a number of uncertainties, risks, and
other influences, many of which are beyond the Company’s control,
that may influence the accuracy of the statements and the projects
upon which the statements are based including, without limitation,
impacts related to the COVID-19 pandemic or other epidemics or
pandemics; our failure to comply with the extensive regulatory
framework applicable to our industry or our failure to obtain
timely regulatory approvals in connection with acquisitions or a
change of control of our Company; our success in updating and
expanding the content of existing programs and developing new
programs for our students in a cost-effective manner or on a timely
basis; risks associated with cybersecurity; risks associated with
changes in applicable federal laws and regulations; uncertainties
regarding our ability to comply with federal laws and regulations,
such as the 90/10 rule and prescribed cohort default rates; risks
associated with the opening of new campuses; risks associated with
integration of acquired schools; industry competition; our ability
to execute our growth strategies; conditions and trends in our
industry; general economic conditions; and other factors discussed
in the “Risk Factors” section of our Annual Reports and Quarterly
Reports filed with the Securities and Exchange Commission. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and Lincoln undertakes no obligation to
publicly revise or update any forward-looking statements, whether
as a result of new information, future events or otherwise after
the date hereof.
Contact:
Scott Shaw, CEO and PresidentBrian Meyers,
CFO973-736-9340
EVC GROUP LLCInvestor Relations: Michael
Polyviou, mpolyviou@evcgroup.com, 732-933-2755Media Relations: Tom
Gibson, 201-476-0322
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