Lincoln Educational at East Coast IDEAS: Strategic Growth Focus

On Wednesday, 11 June 2025, Lincoln Educational Services (NASDAQ:LINC) presented at The 15th Annual East Coast IDEAS Conference, highlighting its strategic focus on growth in the hands-on trade skills market. The company, led by CEO Scott Shaw, emphasized its expansion plans and financial targets while acknowledging the challenges of maintaining profitability in certain programs.

Key Takeaways

• Lincoln is targeting $550 million in revenue and $90 million in EBITDA by 2027, driven by organic growth and strategic campus expansions.
• The company reported a 20% increase in student starts and a $16 million revenue boost in Q1 2024.
• Lincoln’s hybrid learning model is 30% online and 70% on-ground, with plans to include nursing programs in the next 24 months.
• The company boasts a 70% graduation rate and 82% placement rate, differentiating itself from community colleges.
• Lincoln is debt-free, excluding lease obligations, with $60 million available for capital investments.

Financial Results

• Q1 2024 saw a 20% increase in student starts and a $16 million rise in revenue.
• Lincoln is targeting 11% annual top-line growth and a 200 basis point margin improvement over the next few years.
• The company remains debt-free, aside from lease obligations, with $60 million available for further investments.
• Capital expenditure for new campuses ranges between $20 to $25 million each, with maintenance costs at approximately 2% of revenue.

Operational Updates

• Lincoln plans to open new campuses in Houston by November 2024 and Long Island by Fall 2026.
• The hybrid learning model, except for nursing, is largely implemented, aiming to enhance student flexibility.
• Program replication is ongoing, with 7 programs being replicated this year.
• The Nashville campus has been relocated, and the Philadelphia campus will move in July 2024 to offer additional programs.
• Lincoln exited lower-earning disciplines, such as culinary and cosmetology, to focus on more profitable trades.

Future Outlook

• Lincoln aims for a national presence, with potential campus locations in Florida, Arizona, the South, the Carolinas, and Virginia.
• The company is enhancing its military student enrollment by adding degree-granting capabilities.
• Lincoln targets a 16% EBITDA margin, with the potential to reach 20% as inefficiencies are addressed.
• The company is working on improving the profitability of its nursing program over the next 24-36 months.

Q&A Highlights

• CEO Scott Shaw noted the company’s counter-cyclical nature, with enrollment often rising during high unemployment periods.
• The company is projecting an 11% growth in the top line for the coming years, with a 200 basis point margin improvement annually.
• Lincoln’s partnerships vary, offering funding for graduate training and access to industry-specific training, among other benefits.

For further details, please refer to the full transcript below.

Full transcript - The 15th Annual East Coast IDEAS Conference:

Operator: It’s on NASDAQ under the ticker symbol, l I n c. Speaking on behalf of the company today is their CEO and President, Scott Shaw. Scott?

Scott Shaw, CEO and President, Lincoln: Great, thank you. I know some of you in the audience are familiar with the story, but do others know who we are? Just curious. Yes, no? I know a little bit.

Okay. Just curious to have a feel. Obviously, Safe Harbor, you’ve all read those before. So this is really exciting time for us here at Lincoln, and Lincoln is really well positioned to take advantage of a market that has moved in our direction. I everyone’s aware, you see it in the newspaper all the time, that there’s a big skills gap out there.

In this case, the skills I’m talking about are hands on trade skills, people such as welders, electricians, mechanics, nurses, people that have now become labeled essential workers because even during COVID, they all remained employed and needed they were needed to keep our daily lives in order. Next year, Lincoln will be celebrating our year in existence. We are definitely the largest and and oldest organization within The United States focused on the trades. It’s something we love to do and we do exceedingly well. And we’ve proven, and this is probably the most exciting part about our opportunity, is their growth.

Typically, we’ve been considered a counter cyclical organization as a career school. Periods of time of high unemployment is when we usually see the highest enrollment into our campuses, but since COVID, we’re seeing a highly accelerated growth pattern due to the fundamental shift that’s taken place, which I’ll talk about more going forward, but it’s a very sustainable shift and something that is gonna drive long term growth and profitability for us. From a profitability standpoint, just as this room continues to fill up over time, as I fill up our classrooms with more full paying students, our profitability increases. So our model’s based off of driving more students into our existing campuses and existing programs to drive up that profitability as well as expanding our footprint to leverage our corporate overhead over larger base. Today, we remain debt free.

There’s debt on our balance sheet, that’s all due to leases. We have no bank debt or other forms of debt out there. We have a shelf if we were to need that. We have about 60,000,000 of availability. We have lots of opportunities to grow and the capital to make that happen.

And then we are becoming more efficient as an organization. Since COVID, we became more of a hybrid operation. Before we were 100% online. Now we’re 30% online and 70% on ground. We are an on ground training institution, but the hybrid component is great for us, builds in some efficiencies, both from a faculty management standpoint, as well as increases capacity at our campuses to help allow us to grow, but it’s also very attractive to the students.

It gives them greater flexibility. Most of our students, the average age is 25. A lot of them have families, a lot of them are working. The hybrid model allows them to serve their families as well as their jobs much more effectively. Our growth strategy is pretty simple and pretty basic.

Organic growth, gonna continue to drive more students into our schools through better and more effective marketing. We’re also replicating our most successful and in demand programs into as many campuses as we can. Last year, we replicated five programs. This year, we’re replicating seven programs. Probably over the coming years, there’ll be smaller number, about three programs, as we just don’t have the capacity from a floor space to replicate additional programs, but it’s a way for us.

We constantly look and assess what are we offering, how much square footage is being offered, and is there a more effective utilization of that square footage? So we’ll either maybe, for example, in Chicago, we took out a collision program that was taking up square footage that was at that point supplying maybe 65 students. We’ve added more welding booths into that space, adding an HVAC program, and adding our Tesla training facility, and we will accommodate probably maybe closer to 300 students in that same square footage where we had 65. So that will help drive up efficiency. And then we will continue to start opening up new campuses.

We opened up our new campus last March. That was our new campus in eighteen years. We have a new campus opening up in Houston in November, and we just moved our Nashville campus into a new bright, shiny, more efficient, and effective facility where we can offer new campuses, and next month, we’ll be moving our Philadelphia campus, which today is our only solo discipline campus. It just offers automotive, but come July, we’ll be able to offer automotive, welding, electrical, and HVAC in a market where we’ve existed for more than sixty years, and we know there’s great demand. At the same time, we do look at acquisitions.

There are a lot of properties out there for sale that could enable us to grow, but we’re taking a much more disciplined approach at acquisitions. When I joined Lincoln over twenty years ago, we bought a lot of things, as long as it was for profit, as long as it was in healthcare or trades, and whatever is offering, we bought it, we grew, but then you have to manage all these things, you have to integrate them, you don’t always have the most efficient platform to grow from there. We’ve learned from that, and we’re now a 22 campus organization with streamlined properties, whereby we’re offering similar programs across our network, delivering them in a similar way. Making an acquisition that doesn’t really fit into that would be more challenging, so we’re being very selective as to what we add. But we could add other disciplines, but they would be disciplines aligned with who we are and what we do, something that involves one’s hands.

Because as we all know, AI is growing. AI is designed to take away your mind. It doesn’t take away your hands and your use of your hands, and our students, their jobs are not in jeopardy because of AI. It may assist the nurses in doing their job better. It may assist the mechanics in analyzing what’s wrong with the car, but you’re still gonna need someone who has hand and eye skills to do the work.

And those are the types of programs we’re looking into, as well as making acquisitions that could speed up our entrance into a market that we wanna go to and expand our footprint. As you’ll see, we’re very much concentrated on the East Coast, and we do wanna become a national player. The value there is really to our employers. Lots of them want to hire students around the country. It’s a lot easier to come deal with one Lincoln Tech serving 15, hopefully eventually 30 markets versus going to 15 different or 30 different community colleges.

This is some numbers we’ve put together. Some people would say this is stale. A couple years ago maybe, this is the trajectory we’re on. We’re saying that by 2027, at least we were saying, we’d be five fifty million dollars of revenue and 90,000,000 of EBITDA. Given some of the growth we’re seeing, if it continues, we’ll certainly be making adjustments to this, probably come this November after we see where this year falls out and where we see our margins, but we’re basically projecting about 11 growth in the top line for the next couple years and 200 basis points improvement in our margin each of those years.

In the first quarter of this year, our margin improved by about two eighty basis points, just one point. Who knows if it’s gonna continue or not, but I have a confidence that we’re certainly moving in that direction much more so. So when it comes November, we’ll be looking at these numbers again and making assessment, but I feel really good about what’s happening in the organization in our marketplace. As I mentioned, we did move to a hybrid model after COVID. It’s added a lot of advantages, as I said, for our students and for ourselves.

Today, all of our programs except for our nursing program are hybrid. The goal and objective is to start making our nursing program hybrid, but that’ll probably take about twenty four months to do so. But otherwise, all our core programs have moved to this hybrid model and is it giving us greater capacity to grow as we’re seeing strong double digit demand out there as well as it’s creating more efficiencies and higher margins in our business. This is the model that we’ve laid out for what a new campus will generate. They’re costing more than we originally thought, maybe eighteen months ago.

It’s probably a 20 to $25,000,000 investment. This is showing $6,000,000 of EBITDA. I think that these campuses will be generating closer to 7,000,000, if not more, of EBITDA. It takes us about two years to open a campus, and then this has us not becoming profitable or so for let’s say eighteen to twenty four months and getting good returns. I can tell you that our Atlantic campus certainly exceeded our expectations.

It was, as I said, the campus that we had opened in eighteen years, but within six months, it was profitable. By the end of this month in June, they will be over 700 students, which is what we thought it would take them thirty six months, so that’s about fifteen months half the time. So all of our assumptions though are based more on how this model rolls out and to the extent we over perform, well, that’s just good for all of us. I did mention we are looking at acquisitions. It is very much focused.

It’s to gain either expand our footprint in a more rapid way. It could be to expand our product offerings, and the two advantages there could be just to increase the scale of our opportunity, as well as give us new programs to replicate into some of our campuses. But things have, needless to say, I probably look at 10 to 12 acquisitions a year, and we haven’t made one in quite some time, so we’re either too cheap or too picky or both. But so far, our business is doing well, and we’ll continue to go down this path look for the best opportunities possible. As I mentioned, today our workers, our students, our essential workers.

We’ve exited certain disciplines where they wouldn’t be considered essential workers. We might have a good product, and good students and good graduates, but they also would not necessarily possibly pass gainful employment rules. As you may know, there’s lots of regulations out there. Long story short, I think it’s quite evident by the fact that so many people cannot repay their student loans, that something’s gotta change in our educational system. It’s unsustainable as it is, and the way that things seem to be all moving in one direction or another is how do you assure that students are taking programs that will earn them an income to repay the debt that they’ve taken out to learn those programs?

So we exited the culinary programs we were in. We exited the cosmetology programs. Years ago, we got out of criminal justice. We exited massage therapy. All these programs could have good outcomes from the standpoint the students get solid skills, but these are all just careers and jobs that you just aren’t gonna earn that much, so why be in them?

So we’re just focused on careers such as welding, such as electrician, HVAC techs, automotive techs, where you really can, within three to six years of graduation, earn potentially 6 figures if you’re a really diligent person. It’s not uncommon for a master certified technician to make 125 or $150,000 So these opportunities exist. We’re gonna be focused on opportunities that give students the opportunity to repay their loans, and we’re also gonna focus on things that are considered essential workers. Nothing new here. I’ll just highlight there on the 52 stock price range there.

This was as of March, and our stock is a little bit higher than that, so things are all continuing to move in the right direction. We do have a good amount of inside ownership with our between our people like myself and others in the management team, so we’re all on the same page and ship for where we want the stock price to go. As I mentioned, we’re very much concentrated in the Northeast. We were founded over the river in Newark in 1946, So we have six campuses in New Jersey. We have a lot of campuses between Washington and the Boston Corridor.

But we also have campuses in other markets. We are in Texas, as far West as Denver, Chicago, Indianapolis. Basically any market that has an NFL team would be a good market for us, given the scale of what we’re doing. We opened up the campus in Atlanta. There you can see in green, we’ll be opening up Houston.

Then in the fall of twenty twenty six, we’ll be opening up a campus in Long Island. Even though we have a high concentration within the Northeast, there’s still pockets of opportunity in Long Island. For those that are from this area, you know trying to get into the city takes a long period of time. We have a campus in Queens right near the Whitestone Bridge. It’s bursting at the seams.

By having another campus a little bit further east, we’ll be able to further expand our opportunities in the New York market. We’ve been advertising in this market for almost eighty years. We have brand recognition, so it’s a good way to leverage that. So even though there are good opportunities in states like Florida where we’re looking, in Arizona, and in the South, in the Carolinas, and in Virginia, there’s still opportunities in some of these more established markets as well for us. The marketplace we serve in serving the workforce is the largest marketplace, and that’s the middle skills.

So AI potentially takes away some of the high skill jobs that are out there. Automation potentially takes away some of the low skill jobs out there. Middle skills will obviously be affected by both of those, but as I mentioned, I think our focus on hands on trades is very much safe and it will remain, at least as of today, it’s about 50% of the jobs out there. That means it’s more than a high school education, but less than a four year degree. And given the way technology’s advancing, it’s very understandable why you need more training than just what might be in high school in order to work in the workforce, but at the same time, given how 40% of the people that go to college don’t graduate, maybe getting a higher level of education isn’t as effective for a lot of people.

So the middle skills is a good place to be in my book. And our students, again, the average age is 25. About 20% come right out of high school. We have less than 10% that are military students. A lot of that’s just due to our hybrid model.

The military will not pay for a student to go to a diploma program that’s hybrid. Once we add some courses to it and make a degree, then the military will pay for you to do that, even though the job you get is the same. So we’ll start regrowing our military population as we add some more degree granting capabilities to our students, to our campuses, I should say, for the benefit of our students. So the skills gap, why does it exist? Well, exists because of a number of factors.

Back in 1980, the decision was made by us collectively, society, that more people should go to college, and so there’s a huge push to send people to college. In order to prepare people for college, we took shop class trades out of high schools so more time could be allocated to academics to help prepare them for college. So now we have multiple generations that have been exposed to the trades. They don’t know what they are. They don’t know if they have an affinity or a capability or great skill in the trades, and that’s helped lead to this shortage.

At the same time, from a also have this huge demand that’s taking place out there. There’s always been a need. We’ve always had more job opportunities at Lincoln than students, but that’s just growing significantly. You have the baby boomers who are retiring in large numbers. Companies haven’t replenished their workforce needs.

They’re now seeing a huge gap in certainly the entry level positions. There’s a lot more attention on college, and the fact that it’s maybe not returning a good investment, so all of sudden now people want to go to our types of schools, which is great for us, which is why we’re no longer counter cyclical. As we all know, our whole electrical grid needs to be reinvented. We need to build more electrical power plants given AI. We’re looking to onshore more things so that we’re more protected in our supply chain.

Our infrastructures from the fifties, sixties, seventies, it all needs to be replaced. All these things require electricians, HVAC techs, welders. A lot of these large construction sites require diesel technicians, automotive technicians, and obviously as people like myself continue to age, that we need more people into our healthcare system, so there’s more and more demand for our workers. So all these things are happening at a great time for Lincoln. We’ve been training people in these fields.

We know what we’re doing, and as I’ll show you, we’re one of the leaders out there. And with all that said, we are, I’ll show it in another slide, guess you’ve changed the order of these, we’re the largest provider of auto techs and trades people coming out of a post secondary school East Of The Mississippi. We’re the largest in the country for electricians, for heavy equipment operators. We’re the largest for welders, auto techs, diesel techs, and HVAC techs. And with that position, we still only have less than 2% market share of the new people coming into these fields that we train for.

It’s a very local, regionalized business, which is why there’s lots of opportunity for us to continue to grow and expand. But every company’s to have a product, and our product is our education, and the way we do it is superior, certainly superior to a community college, is our biggest competitor out there. of all, we start with the product. We work with industry to figure out what the skills are that are needed that are gonna make our students very attracted to them, allow them to start their jobs effectively on day one. All of our faculty members come from industry.

They’re not academics who’ve only read about it in a book. They’re all people that have done the job, done the work. They know the book says this, but in real life, this is what you need to do to be successful, to impress your boss, and this is what you should do. of all, we build facilities that are state of the art, giving students the same professional tools, equipment, everything that they would be touching or involved with or needing for on the job. So it’s a real life experience for them, and compared to community college, it’s far more robust.

As I like to say, community colleges are there to serve the community. They’re offering a broad array of programs, just like you might wanna go to a department store if you wanna get some socks and a lawn mower and a toaster, but if you wanna buy electronics, you gonna go to Bloomingdale’s or are gonna go to Best Buy? We’re more of a specialty retailer, so it’s a much deeper, richer experience, and it shows when you walk through our campuses, and we love to bring students, as well as politicians and others onto our campus, because once you go to a campus and see what it’s all about, you understand why we’re so successful. And that’s why it leads to superior graduation rates. In our slide, you’ll see we have about a seventy percent graduation rate.

Graduation rate at community colleges is around thirty three percent, so over twice as high as what a community college is. Our placement rate is around eighty two percent. That means that they’ve been placed in the job that they studied for. If they get a job at Starbucks or Amazon, that doesn’t count. That’s not why they paid us money.

And you can’t get these types of statistics at traditional schools because their accreditors don’t mandate that they track it, and if a school does give you a statistic, it’s all self reporting. So obviously, if I didn’t get a job, I’m probably not gonna tell my school I didn’t get a job. So anyway, are our numbers, and our numbers are audited by a party. So they’re solid numbers. So in any event, we design programs to get students into the field of study that they want.

They’re accelerated programs. They get completed in twelve months. Twelve months of education at Lincoln is equivalent to four semesters at college because they’re going more hours a week. We don’t have spring break, fall break, Easter break, any kind of break. They’re going twenty four seven, not 20 fourseven, but they’re going all the time just like you would in a job.

So this is going back to where we’re number one on the East Coast, number six on the West Coast. As you can see, we just have Denver and Grand Prairie in that area. We’re opening up Houston and we are looking at other markets in that area to move into. California’s a big market. We’ll probably eventually get there, but the regulatory environment on any number of fronts is not very friendly, so it’ll probably be towards the end of our expansion process.

Given our presence, given our strength, and given the outcomes that we have, we’ve attracted a lot of major companies that wanna work with us. As again, they’re all desperate for people and as we tell them, if you get at the top of the list and get our graduates, you’ll be ahead of the curve and probably outperform your competitors. So a case in point, Tesla came to us. They only wanted to work with community colleges. It wasn’t working out for them.

They came to us. They’ve been very pleased. We opened up one campus, opened up a campus. As I mentioned, we’re about to open up a campus. We’ll be the largest trainer of Tesla start technicians in the country.

We work with other OEMs that have similar challenges, and we provide them with similar quality. We have a program with Johnson Controls where our electricians get trained on Johnson Controls equipment, where they also go through a Johnson Controls mini academy at our campus, and then get employed by Johnson Controls, and there are other situations like that. We’re constantly out there talking to employers. I must say, they all are desperate. They’re not all willing to really pay what it costs to run programs, and those that do, they see the benefit of it, but trying to sign up new people can be challenging at times.

But in my mind, the puck is moving in this direction. Companies are gonna more and more work with us. Also, as we continue to build out our network, I think we become that much more valuable to these larger organizations because again, it just makes their hiring practice that much easier. Highly regulated industry, is fine by me. All I want is fair regulations across the board, and we’re very much focused.

So there’s a rule called ninetyten where we can’t have more than 90% of our revenue coming from government funding, we’re safely around 82%, so no worries there. CDR, that’s a cohort default rate. As you may know, the government for the last five years has not required any student to repay any part of their student loan, which is why there’s a zero there. They started the repayment process last September, and the Trump administration is ramping that up and ensuring that students repay the loans of taxpayer money that’s out there. So we’ll start getting metrics on this.

Our metric used to be around 8% for a core default rate, which is what the average is of all schools in the whole United States. So I can tell you when this metric comes out, it’s gonna be a lot higher than that, because five years of people thinking everything’s free, and they don’t have to repay it, it’s gonna probably look ugly. But once we all get our hands around it and start enforcing that students repay their loans, or the government starts reinforcing that students repay their loans, this number should drop. Anyway, it’s a metric I’m not worried about. Financial responsibility is just kind of overall financial health.

The highest you can be is three. We’re at 2.5, it’s safe, and as I mentioned, our graduation rates are seventy percent and our completion rates, our placement rates are eighty two percent. This is my management team. Average tenure with Lincoln is I believe seventeen years, so we have a lot of tenure, we’ve been through lots of cycles, we know what’s going on, and we also have some new younger talent. And then my board, I’ve turned over everyone in my board in the last five years except for one individual.

So we have fresh ideas, good diversity of thought, good diversity of backgrounds, and they’ve had they’ve really reenergized what we do, which is exciting. And also right there in the middle, Carlton Rose is a graduate of ours. He went to our Indianapolis campus, graduated from the diesel program. day on the job, he was sticking boxes into the back of UPS trucks. When he retired from UPS last year, he was in charge of every single vehicle, whether it’s an airplane, whether it was a forklift in a warehouse.

I think it was over 150,000 pieces across the whole world that he was in charge of, So another one of the great success stories that we have at Lincoln Tech. Financial review first quarter. Starts were up a healthy 20%. Revenue was up 16,000,000. Profitability increased nicely.

We had no borrowings on our bank facility at that time. Everything is going very very well for us. These are just some of the trends out there that you can see of our performance. On the left is on an annual basis. On the right is for the quarter.

You can see that everything is moving very well for us. We’re getting good operating leverage as our revenues increase, and I’ll show you where that’s gonna take us. Population last year, we grew by 17%. Our first quarter was 20%. Our guidance is for about 12% at this point.

Things remain very strong. So we’ll see where that comes out and we’ll update things as we see our hopefully very much continued success. So again, this is what the guidance is for the year. We updated our guidance after the first quarter. Might be up to getting guidance again as things continue to move forward, but I’m extremely comfortable with everything that’s laid out here for sure.

I wanna focus on the CapEx. It is a very CapEx intensive year. That’s because we moved our Nashville campus, we relocated our Philadelphia campus, we’re opening up the Houston campus, and we’ve started construction on our new Long Island campus. So there’s four campuses along with the seven program replications, and our maintenance CapEx is about 2% of revenue, so somewhere, let’s say, around the $12,000,000 level. I would anticipate that next year, right now we’ve only announced the Long Island campus.

We hope to announce another new campus, but these new campuses, let’s say, are 20,000,000. I would assume we’re gonna be investing, let’s say, million a year in growth activities. Let’s say 12 to 15,000,000 in maintenance going forward, and the rest then should become free cash flow for us as an organization. We are a very seasonal business. As you can see here, our starts occur with the largest starts coming in in Q3.

That’s when the high school students come in. And from a profitability standpoint, we typically generate all of our profits in the last five months of the year. But if you look at the first quarter this year, the growth of about over 4,000,000 increase in profitability in Q1, we’re forecasting about 20,000,000 or so increase for our guidance. Given where everything stands, I again feel very comfortable with that trajectory. From real estate standpoint, we do lease all of our facilities.

We don’t own any of our facilities right now. We’re constantly reevaluating them. Again, trying to figure out how do we get the most per square foot, either taking out programs that are underproductive. In certain cases, we’ve added some square footage in markets where we don’t have room to add a new program, but we know there’s demand. And so we’re constantly looking at this and we constantly do have room for growth.

And as I mentioned, Houston’s opening up and Hicksville will open up in 2026. And in summary, we’re a national leader in this field. There’s strong organic growth. This is the most exciting time in the twenty four years I’ve been at Lincoln. The runway for what the opportunity is, the fact that people finally have caught on to the fact of something that we’ve been saying for twenty, well actually probably eighty years, hands on careers are a great place for people to go.

College is great for lots of people, it’s just not for everyone. Take a look at us, we can give you a great opportunity going forward. Our operating leverage is kicking in. We’ve revamped our business model to be more effective. Almost everything’s moving in the right direction for us, which is exciting.

And that’s about all I have to say. Any questions? Anyone wanna enroll? No? Yes sir?

Unidentified speaker: EBITDA margin perspective, your campus based,

Scott Shaw, CEO and President, Lincoln: what’s the most The EBITDA. What’s the highest EBITDA margin for the

Unidentified speaker: campus based program? Maybe you’re differentiating between different kind of programs.

Scott Shaw, CEO and President, Lincoln: Correct. So online schools have greater operating leverage, because they have less fixed assets to deploy, they can scale, and they’re not regionally located. I can tell you, so our projections have us going up to 16% EBITDA margins. There’s no reason why frankly we couldn’t get up even higher, let’s say to 20%. I certainly look at private company on ground schools that have higher margins.

Now, I don’t necessarily know how they get to those margins. I am publicly traded. I wanna be extremely compliant. So we have more, I’ll say, oversight in probably cost structure than some of them, but I don’t see why we couldn’t get up to a 20% EBITDA margin.

Unidentified speaker: And does it make a difference if it’s all looking at nursing?

Scott Shaw, CEO and President, Lincoln: Well, it does today, because today my nursing has a zero margin. So I need to correct that, which is something that we’re working on doing, is making that more profitable. And once we do, then we’ll start growing that part of the business. There’s a huge demand for it. So right now, the growth is coming in the programs that generate the highest return on investment for us.

But I’m anticipating, or the objective is to make nursing be part of that category. But we have to make it blended, and we have to make some other structural changes to the program, which will take twenty four to thirty six months to implement before that happens. Yes,

Unidentified speaker: sir? On the corporate partnerships, Do those partners actually fund part of the tuition, or do they just offer jobs at the end of the course?

Scott Shaw, CEO and President, Lincoln: It’s a mix. They do they’re there because they do different things. So some of them pay us to provide, I’ll say, like graduate training to our graduates that they’ve selected, to then make them more ready to go into the workforce. Some of them give us free access to their industry company specific training, so that our students can access that for free to then become a likely to be hired candidate with them. Some of them give donations of equipment that enable us to offer the programs.

Some give scholarships to help students get into the program, so it’s a whole mix. There’s not one kinda model that they all fall into. Anything else? Great. Thanks.

Appreciate your attention. Thank you.

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