FINANCIAL ANALYSIS FOR INVESTMENT

Financial analysis for investment



Financial Analysis for Investment

Company Overview

Lincoln Group of Schools began as Lincoln Technical Institute in 1946 and since then it is one of the leading career education and training provider of the country. Lincoln Group of schools is part of Lincoln Educational Service Corporation, committed to provide the quality training and education to successfully cope up the employment challenges of the new century.

Lincoln Educational Services (Lincoln) offers post-secondary education.

Lincoln Group of Schools provides degree and diploma programs in five areas of study, which includes health sciences, skilled trades, automotive technology, business and information technology and hospitality services, to high school graduates and working adults. It operates 45 campuses in 17 states across the US. The company primarily operates in the US, where it is headquartered in West Orange, New Jersey and employs around 4,500 people (Official Website, 2011).

The company recorded revenues of $ 639.5 mn in December 2010, 15.7 % increase over 2009. The company's operating profit was $ 122.6 mn in 2010, an increase of 38.9 % over 2009. Its net profit was $ 69.7 mn in 2010, an increase of 41.6 % over 2009 (Reuters, 2011). The company also offers spa and culinary programs, including therapeutic massage, cosmetology, culinary management, nail technician and aesthetics. It offers massage programs at six campuses and cosmetology programs at five campuses and culinary programs at the six Lincoln Culinary Institutes.

The company also provides business and information technology programs at its 21 campuses. Lincoln currently has 29,221 students enrolled and its average enrollment is 31,535 students. Its subsidiaries include Lincoln Technical Institute, Southwestern Acquisition, New England Acquisition, Nashville Acquisition, Euphoria Acquisition, New England Institute of Technology at Palm Beach, LTI Holdings, LCT Acquisition, and ComTech Services Group.

History

Lincoln Educational Services (Lincoln) was established as Lincoln Technical Institute in 1946. In the same year, the company started offering first course on installation of air conditioning and refrigeration equipment. In 2000, Stonington Partner's and Hart Capital purchased Lincoln Technical Institute. In the same year, Lincoln Technical Institute acquired Denver Automotive and Diesel College. Lincoln Technical Institute acquired three new Cittone Institutes in Philadelphia area in 2001. In the same year, Lincoln Technical Institute acquired three new Cittone Institutes in Philadelphia area. In 2002, Lincoln Technical Institute introduced the Allied Health Division (Official Website, 2011).

Lincoln acquired five Southwestern College of business campuses in Ohio and Kentucky in 2004. In 2005, the Lincoln Service Corporation went public trading on NASDAQ Stock Exchange under the ticker symbol 'ULTI'. In the same year, the company acquired Euphoria Institute of Beauty Arts and Sciences. In 2006, Lincoln partnered with Greater New York Automobile Dealers Association (GNYADA). In the same year, the company acquired New England Institute of Technology in West Palm Beach. Lincoln acquired Harrison Career Institute and its licensed Practical Nursing Program in 2007. This acquisition allowed Lincoln to expand the LPN course offering at New Jersey campuses. In 2008, the company opened new Euphoria campus in the Aliante section of North Las Vegas, ...