Lincoln Educational Services Closes on the Sale of its Nashville, TN Campus for $33.8 Million
13 Junho 2023 - 10:00AM
Lincoln Educational Services Corporation (NASDAQ:
LINC), a national leader in specialized technical training
for more than 75 years, announced today that it has closed on the
sale of its Nashville campus to an affiliate of SLC Development,
LLC for $33.8 million pursuant to the previously reported Contract
for the Sale of Real Estate entered into in 2021. In connection
with the sale, the parties entered into a lease agreement allowing
Lincoln to continue to occupy the nearly 16-acre property located
at 1524 Gallatin Avenue in East Nashville and operate its campus on
a rent-free basis for a period of 15 months while the Company seeks
to relocate to a more modern facility within the Nashville
market. In addition to the initial 15-month term of the
lease, Lincoln has three options to extend the lease for
consecutive 30-day terms at $150,000 per extension term.
“Our Nashville campus will continue to be fully
operational, with no interruption to our training programs, as we
seek to relocate to a newer, state-of-the-art facility and carry on
the legacy that began in 1919 as Nashville Auto-Diesel College and
continues today,” said Scott Shaw, Lincoln Educational Services
Corporation President and CEO.
While the new campus location has not yet been determined,
Lincoln expects that the new facility will be EBITDA neutral for
the first year of operations given the anticipated efficiencies.
The Company expects to invest $15 to $20
million for the buildout of the new campus which will
include two new programs with the addition of HVAC and
Electrical.
The net proceeds from the Nashville sale are approximately $33.2
million, net of closing costs, which will be available for working
capital, acquisitions, other strategic initiatives and general
corporate purposes. The property’s carrying value is approximately
$4.5 million. The estimated fair value of the rent for the
15-month rent-free period is between $2.0 million to $2.5
million.
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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 the opening of new campuses; 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.
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 14 states under
four brands: Lincoln College of Technology, Lincoln Technical
Institute, Lincoln Culinary Institute and Euphoria Institute of
Beauty Arts and Sciences. For more information, please go to
www.lincolntech.edu.
Peter Tahinos
Lincoln Educational Services
PTahinos@lincolntech.edu
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