Lincoln Educational Services Corporation ($LINC)

Good morning. Excited to have everyone here at our National Auto Diesel College for our second Investor Day. We're excited as Nashville is a very impressive college and it's state-of-the-art and part of the state of the art and this is this little fancy screen here. So as you can see, we have an "oh, they turn the lights off in the auto shop. They're supposed to have that on". But in any event, you can see that what we've built here is a state-of-the-art facility with all the latest equipment, that's the way we're moving as a company. We want to make sure that our students have the skills needed to be successful out there in the marketplace. And this is a really exciting time for us. So if we could just start the presentation oh, that's me. That would be great. Safe harbor. I know you've all read this before, but I do want to welcome you. This year is our 80th anniversary. There's very few schools out there in this country that have the longevity that we do, and there's really no one else that's been focused on the trades. We started in 1946, training people to fix automatic transmissions in HVAC, and we're still doing that today, and we've expanded it into other trades. And we're only focused on those trades that we believe provide a high-quality of education and a great career opportunity. The difference, besides the fact that we had this beautiful facility and all of our new facilities look as robust as this one. But at the end of the day, lots of people can build nice facilities, lots of people can put in professional equipment, but what they can't do is replicate our people. I think that we have a strong focus on people, all the time, whether it's our students there, over 19,000 students and over 2,700 employees. We're going to make an environment where everyone can be successful. And this is, I believe, one of our great differentiators. I have back there, the head of my HR team, Steve Ace, he's not presenting, but I can tell you that the HR department at Lincoln always gets part of the highest ratings out there, and they do such a good job for us, and are really the backbone of our success. What unites us is our mission, and this is the statement that if you walk this campus or any campus, you'll see this on the walls, but it's just not a [indiscernible]. We want people to be living and breathing this day in and day out. We're going to be focused on providing superior education. We want to be the best. We're going to be focused on in-demand careers, and then this is where the people really come in. It's got to be a supportive environment. Our students oftentimes have jobs. Our students oftentimes have families. They're all looking to change their lives. And they're with us for over 80 -- I'm sorry, 800 hours a year. So there's lots of opportunities for us to be successful, also lots of opportunities maybe not to be successful with them. And we want to make sure that all of our students are successful and it's our people that are going to make that difference and make it all come together. And then what drives them to come to Lincoln is the fact that we do change lives. People that are joining our organization are very much believers that they can make a difference in people's lives, whether it's the admissions folks or the education folks or career services folks, even the people at our reception desk, people love what we do here and have a great sense of pride. Two years ago was our first Investor Day, and I'm highlighting a lot of the points that we conveyed because all these things we have achieved, all these things still exist, and we're moving beyond that. So we are very much and always will be focused on having a strong regulatory record, making sure that we're compliant, making sure we have great outcomes. And our outcomes, as I mentioned 2 years ago and showed, we are twice as good as a community college. And I just raised that point because a lot of people always ask me what makes you different? And what you do is when you come to Lincoln, you get a rich experience and you're going to have a much more likelihood of graduating, which means you have a much more likelihood of getting a job, and that's what we're all about. We also gave you some guidance around where we thought we'd be in 2027, and Brian will share with you that we basically will be there this year, so whole year earlier. So things are going really well for us. As I mentioned, we do want to be the best. We've narrowed our focus to do that. And for each of the major programs we're in, we want to be the industry leader. And we do that by having this talented instructors. And Gina Zaffino, our Head of Academics, is going to share with you more things that we're doing to further strengthen our instructors. For the most part, a lot of people always ask me, most of our instructors are full time. They're not part time. They're not adjunct. They're part of the Lincoln fabric, and we continue to invest in them. We also shared with you the Lincoln 10.0 model, which is the way we're becoming more efficient. It's also the way that we are offering more access for students. 30% of the education is online and the rest is on ground, that we'll share with you. It hasn't rolled out yet exactly everywhere, and there is a typo on a slide, which is my fault for missing. We does show that we have Lincoln 10.0 in our nursing program, and we don't have it there yet, but it is our expectation to get there. So we'll be correcting that slide and reposting that. We are constantly investing in marketing. And the good news is we're getting a good return on that, and we'll have Scott Watkins sharing what he's doing and how we're doing that as the marketing world is constantly evolving. And as long as we continue to get that good return, that enables us to continue to invest, which helps drive our growth. A while back, we struggled to get financing. And so Brian Meyers had the great idea of liquidating our real estate that we had to build a war chest, so we could make investments. Today, our company is thriving today. Good to say that we have great liquidity. We ended the year with no debt. We have a bank facility that is going to be increasing in size. So we have the wherewithal to continue to grow our business. And frankly, we could accelerate that growth. And then finally, it's a highly fragmented market that we're in. We've achieved great growth in the 2 years since now, but we're still less than 2.5% market share when you look at how many people need to be employed in these fields that we're offering training. So great opportunities for us to continue to grow. We only get there though, as I said, with people. So this is my senior management team. 2 years ago, the average tenure with Lincoln was 18 years, it's now 17 years as we're bringing in some new talent, but Brian Meyers has been by my side for most of all that time. We brought in Chad Nice, our COO. He's been the person driving so much of our growth the program replications, the new campuses, making sure that we have the quality that we need. That we also have here, I mentioned Steve Ace, who's not presenting, but has many years of tenure with us, Steve. Gina Zaffino is also new. She's head of academics, huge responsibility. She has to make sure that our programs are engaging that they meet industry needs just to make sure that all the faculty members are trained and robust and can engage with our students and she has to make sure that we're compliant in everything that we're doing. Jay Rasmussen is here today. He'll be presenting on admissions. Jay has rich experience a long time with us. He started off as an admissions person in the high school field. He became a campus President of one campus. Campus President another campus. We brought them to corporate, and now he leads all of our admissions efforts on the adult side. And so he has great experience. We also, just on the new side, we did bring in a new CIO, and Neil has been helping us, and you'll hear everyone really mention AI since it's a part of everyone's life, and he's really been helping us transform in that area. We also have two other people that aren't on this list, who are presenting. We have Scott Watkins, who's Head of our Marketing. Scott has been with us 1.5 years. He's been navigating for us the digital environment and doing quite well for us. I'll be sharing who our students are and how he goes out to market. And we also have Jen Hash with us. She's been -- she reminded me thankfully, that she's been at Lincoln for over 22 years. And she was also in the admissions area, became a senior admissions rep, became a Director of admissions, a Senior Director of admissions, ran a campus President for us in Denver, and then we brought her to corporate. She's bringing that same passion and knowledge and process with admissions is very process oriented, and she's bringing all that to our career services to make us that much more robust. I'm also fortunate, I think, to have a great board to support us. And we've been able to, I'll say, bring new talent on to our Board. Jim Burke has been with us since 1999. He has lots of experience in the for-profit area, but we've also expanded the Board. We have great representation across the board of [indiscernible] skill sets. We have people that are from education, people in marketing, people from health care, people from transportation, and as I always like to say, are right there in the middle there, Carlton Rose is a graduate of ours from the Indianapolis campus, and he retired 2 years ago, has been President of all of UPS and every piece of equipment that you UPS has across the world. So a great testament of what people can achieve. And what my board has in unison is they all believe in the power of education. Many of them have been first people and their families to go to postsecondary education, and advance their skills. So we're all united on that goal. We always want to be the best and to be the best, you really have to have a quality metric. And these are the three key quality metrics that our a creditor looks for. And so these are the ones that we're focused on as a company. And so we're going to constantly grow our business thoughtfully, at the same time, we're going constantly invest to ensure that we can achieve these goals. Right now, we're not at these levels, but we're not far away for graduation rates, we're in the high 60s, for placement, we're in the mid-80s and improving. And I would put down student recommendation. That's the toughest one, frankly, for us. Our creditors come in and they survey our students, and they survey a number of questions. And basically, they come up with a student satisfaction. I'm very proud to say that when they survey our students on that metric, it's over 85%. But there is one question there, would you recommend? And that number is a little bit less because that's a little tougher threshold to make because you might be happy with your education, but would you be so happy that you're going to recommend someone. And that's the one we're driving for. So we know we can get 85% of our students to say, yes, I would highly recommend this, we'll be in a good place. We're close, but we're not there yet. So to execute, we've been simplifying our business. When you look back at 2011, we had 6 brands. We had 40 different programs. Of those 40 programs, we had over 169 variations, and we had 250 days throughout the year that a start was taking place at a Lincoln Tech campus. That is very -- that's a lot to manage and it's not scalable. So we've changed our focus. We've narrowed our focus. We're down to 3 brands, 1 of which is Nashville Auto Diesel College. The other 2 are Lincoln College of Technology, it's a degree granting or Lincoln Tech, if it's a nondegree granting school. We're down to 13 programs with only 35 variations. And as we streamline our nursing program that will become even less. And we only have 20 days in the year when we have a start taking place. Long story short, we're much more aligned, and we've simplified the business, so we could be more scalable, which becomes more efficient for everyone. As well as we want to be the best because quality endures, more people will come to us, keeps us safe from a compliance standpoint, and it makes for a very exciting dynamic place to work and people really appreciate that as well. So I've been at Lincoln for 25 years, and I really have never seen as aligned organization as we have today as much opportunity as we have today. It's very exciting as we have here, our first quarter is a little bit more robust than we were anticipating, which is good news. We're starting off the year ahead of the curve. We're not going to change any guidance as we speak. We feel very good about things. As you also know, we're very much a second half company. We're at the most starts in all of our profitability coming -- and as the year continues to mature, we'll be revisiting this and obviously adjusting as need be. But overall, things are going very, very well for us, and I feel we're very well positioned. And with that, I'm going to turn the presentation over to Scott Watkins, our Head of Marketing.

Thank you, Scott. Good morning, everyone. As Scott mentioned, my name is Scott Watkins, I'm the Vice President of Marketing. And today, I'm going to cover with you an overview of our total marketing strategy and how marketing, working closely with admissions has created a scalable engine for attracting students. I'm also going to talk about the current demand, the current environment that we're in for demand, who our students are, why they choose Lincoln. And then I'll take you through a typical journey that a student would go through to become a student. So our overall strategy, we're very data-driven, and we look at this from a full funnel strategy. So as our students are -- and again, I will take you through this. But as our students are exploring things possibly on social media, we want to be there early in the funnel, all the way through to that final decision to become a student. We focus some of the key drivers we focus on, high-intent search. So we're dependent on paid search right now, that is still a big driver and a big channel for us as these students learn more about these careers and they start to search, we want to be there in front of the searches. So we do a lot of keyword research, so high intent searches are very important. Another driver of the social platforms and video platforms, YouTube, Instagram, Tik Tok early in this process when students aren't sure what they want to do after high school, they start looking on these platforms, we want to be there. So we create content that introduces the trades to them. And then again, we create more content to follow them through the entire journey. AI, like most of you, you probably been experimenting with the AI tools and platforms out there. Our students are no different. So we create content that is not only optimize further search engines, but for the AI models now as well. We're seeing a shift to some extent of people using the AI models for search instead of maybe a Google, right? There's a little shift there. So we create content that is also optimized for the AI large language models. And then finally, I would say another key driver retargeting. For those of you who don't know, retargeting is a type of campaign, if you were to come to our website or click on one of our ads and go to a landing page, but you did not fill out a form. We can actually follow you throughout your journey on the internet to different sites with a display ad or a different ways to basically reinforce the Lincoln Tech brand. So we do a lot of that. And then our CRM, we're leveraging the tools and technologies there for communications. So a lot of e-mails go out to our students and SMS. Like most of you, they're carrying a phone in their pocket. So SMS is a very effective way to get in front of them. The demand, the current environment right now, there is a demand for skilled careers, and that's continuing to rise. Some of the drivers there. Obviously, there's shortages for skilled labor. That creates not only in the trades, but also in the health sciences. So that's a driver for us. The 4-year traditional schools, a lot of skepticism there. When you look at the cost, some of these 4-year degrees can run you $200,000, $300,000 to maybe get a job when you graduate. So skepticism there creates opportunity for the trades. A broader social acceptance, these careers can be very successful. I know two people that have started out HVAC in Electrical, both of them went on to start their own companies. So there are tremendous opportunities moving forward in these long-term careers. Also there's a lot of infrastructure investment and industrial investment, need skilled labor. So that is helping drive demand. So at this point, we're not in the situation where we have to create demand. The demand is there. We're trying to capture as efficiently as possible. So when we have to manufacture demand, that is a little more costly. So now we're in a position where we're just trying to capture that as efficiently as we can. So as we market to our students, it's important that we knew who they are, what motivates them, what drives them, and we try and build persona, student personas for not only every program, but every campus and every campus at every program, for instance. Our campus in Atlanta is vastly different than our campus in Indi from a student population standpoint. So we look at each campus and we build a persona of everything we can find and learn about these students, helps us know how they think, how they -- what's important to them, we create content that resonates with them. So this is a sample, an overview of a typical student. High school graduates looking for career alternatives, often balancing life, right, family, work, financial responsibilities, they're motivated for long-term careers, usually because of this family responsibilities, and they're seeking to improve and increase their income and their economic mobility. We know they spend a lot of time online. 26 hours per week, 98% of them own a smartphone. They're connected. So I won't go through all these stats, but the ones on the left, they're mobile. They watch videos on their phone. They are researching for information on their phone. It's always with them. It's easy for them to just pull something up, search for it, so we want to create content for that phone. So when we shoot video, we're shooting it both ways. We're shooting it for vertical for the social platforms as well as horizontally for YouTube and other channels like that. Streaming is now becoming more important. Cable cutters, A lot of people are cutting their traditional cable and using streaming services. Our students are no different. 68%, you see there streaming, audio streaming, so Pandora, Spotify. Podcasts are also interesting. We're keeping an eye on that. That is growing in importance. Podcaster have very loyal listeners. They come back to every show. So we're exploring podcasts, probably all noticed in the last presidential election, there was a lot of money being spent in podcast advertising. Again, a very loyal base that shows up every episode. Social platforms, as you would expect, YouTube, Instagram, TikTok, those are the primary social channels. Again, we're creating content on those channels. We're not ignoring the other ones. We just know the students are on TikTok, again, the channels that grow the most, the fastest growing the ones you hear about, that's because of this age group of our potential students. They're the ones making making moves as far as increasing the use of these platforms. And then when it comes to search, search is still a very important thing for us. Again, we are seeing some people shifting to AI models. So we're in the process now of going through some focus groups with our students, prospective students to see how much they're using AI and how they're using it. So we are still seeing users in search, Google. Google is a primary one. We do advertise on Yahoo! and Bing. But Google is still the primary driver. Why are students choosing us? Jay Rasmussen will cover this a little bit more, but we're very student, our career-focused career outcomes. So career-focused training. We work with employers to train how they want, how they want their skilled laborers to operate and work within their industries. Hands-on learning. Again, they're helping us build practical and modern training programs. I'm sorry, next faster path to careers. Again, we're working with these educators and our employers to get career-ready skills. So as soon as they graduate, they are ready to step into these jobs and roles and career outcomes. We're really focused on that with our career services team, and we have strong employer relationships that students can see, and that is very important when it comes to career fairs. So most of our campuses, we operate career fairs, several times throughout the year. Students have an opportunity to meet employers, potentially interview. The career services team that works with them, helps them as far as resumes, interviewing tip. So we are very career focused. And then finally, this is what a typical journey would look like for our students. So early on in the process, they may not be sure where they want to go after high school, what they want to do. So they start looking. They're on their social platforms. They're looking at videos. So how we impact that is we create content. We're very much a content-driven department. Videos, blogs, our students again are on their phone. So we create a lot of video content. We do right content, that's for search engines, for AI models. So when they're looking, we want to be there early in the process, introducing the trades to them. As they start to say, okay, this is of interest to me. Then they're doing a little more career research. That's where we may show up in search engines. We focus career guides, we'll produce career guides. So when they're looking, those show up Arlene pages also speak to the career opportunities that they have. The next step would be looking at schools. Okay, they decided trade is something I'm interested, maybe it's HVAC maybe it's electrical. Now where -- where do I go for that training. So they start comparing schools, maybe it's a training program and a certification program. We want to be there again in that moment. So we create content focused on that, student success stories, our retargeting campaigns will show these different opportunities, whether it's a graduate highlighted, we have a lot of former graduates, highlights success stories. So we'll show those in a retargeting ad, brings them back to reinforce this is a strong opportunity for me. The next part comes the enrollment decision. Where do we go from here? Is Lincoln Tech right for me. So in this stage, they may fill out a request for information form. This is where admission enters the conversation, and they do their job, working with these students, moving them through the funnel. They may schedule a campus visit, get the students here to see these facilities. When you see these facilities, it makes sense. There's a lot of opportunity and these are state-of-the-art facilities, so you know you're working with latest technology. And then finally, from the career launch standpoint, we have graduations, employer placement, industry certifications. Our job is, from a career services standpoint, is the end result is to get these kids a job, career placement. So employer partnerships, career services and our alumni success stories. That's how we get in front and resonate with our students in that point, in the journey. That is what a typical journey will look like. Jay is going to cover a little bit more about why students choose us. So on that note, I would like to introduce Jay Rasmussen, our Senior Vice President of Admissions.

Thank you, Scott, and good morning, everyone. I'm the Senior Vice President of emissions. My name is Jay Rasmussen, and I am the father of a graduate from Lincoln Tech. So I get a chance to talk to you a little bit about our people and about our students, which is the most important thing to me. First off, our purpose and admissions is unique because we are not the typical sale business. We don't sell cars. We don't sell boats. We don't sell houses. We sell opportunities to be successful to our students that are looking for a career change and a life change. It's really difficult because a lot of these students just have this defined success and they have not achieved their success yet. So we get a chance to sell the American Dream, which is super cool, to think about it for a minute. We impact not just on student attending, but we impact generation. There's articles out there that say, 80% of children whose parents attended a postsecondary education, their children too will attend a post-secondary education at 80%. That's so cool. We impact generations of people. And in the end, we provide them with the knowledge to succeed and to be successful in their specific careers. So I want to say I'm proud of the work we do in admissions, and the help that we provide to our students. It's an honor and a privilege to not only work with our students and each and every one of them regardless of their challenges, but with all of my employees as well. So let me tell you a little bit about our students, right? We put them in three categories. They don't need to be. We just choose to put them in three categories. First off, we have 22% of our student body enrolled directly out of high school. Those are our high school students. These are prospects that are currently in high school. They're within 1 year of graduation. And we put them in two other refiner buckets. We call them HSO and HSPs. It's just how the leader inquiry comes to us. One, in HSP is a high school presenter, which they go and they work in the local markets. They do presentations like this with our students and their classrooms in high school, and they collect up inquiries of interested students and then they reach out to them and attempt to recruit them. On the other side, we have the HSO side. These are the students that find us just like the adult does, through the marketing efforts that Scott and team provide. They locate us, we collect up their inquiry, and then we put them through the process. Our adult side makes up about 73% of our overall student body. This is our biggest portion. It's the most successful portion. These students have graduated high school and are out in the working field traditionally, and they've discovered that they are not where they want to be in life. And a lot of our students thought I'm going to try it this way. I'm going to try a traditional school. I'm going to try a traditional 4-year school. I'm going to go to work, I'm going to do whatever. And they've discovered that this isn't suiting their definition of success. So they look to us to help them be successful. Many of them have spent a lot of time in the workforce, and it just isn't working in their favor. They're losing ground. The last part, which I am a veteran as well. I served 12 years on active duty and served in Desert Storm and Desert Shield is 5% of our students many of you know, this is how we grew up as Lincoln Tech servicing veterans returning for more and giving them a skill set that they could use to enter the civilian workforce. I'm proud of this part, and I want this to be a bigger part of Lincoln Tech. Our veterans, although only about 5% of our students right now, as we now have our curriculum approved to accept those students based on government regulations, we'll look to expand that a little bit. Veterans have a lot of the skill sets that we look for. The working world and business world, like a veteran. They have good skills, work ethic, responsibility, loyalty, et cetera. And -- but they don't have the skill set that mirrors up with industry or the business world in the civilian life. Look at their career fields. They don't even to line up. We're here to help them. So these are our applications. Our applications we call them enrollments or applications. Obviously, you can see from the chart on the left that our demand is robust, and admissions still needs to guide our students through the process, however. Even though we have robust applications, there are students that have fear, uncertainty and even sometimes self-esteem issues with attending. I look at this as the caretakers. We're the ones that are going to help them solve all their challenges. It can be as simple as transportation and getting back and forth to school. It can be as difficult as how am I going to pay for this. I need to find a second job, et cetera. We're going to help them solve those smaller issues that prevent them from attending and graduating. Obviously, the application is a critical first step, and it actually shows their first piece of commitment in the process. Some of our applicants have challenges that get in the way of attending. These can be life challenges, a flat tire, accident with a car, hospitalization of a family member. And these challenges are real and they get in the way. We call these life challenges. Our prospects, however, also must complete several other tasks to attend financial aid, background checks, testing, et cetera, and they all are different based on program. But our application trends and our inquiry trends show strong growth year-over-year. Here's a look at it by our channels. As I explained earlier, we talked about our veteran students or adult students and our high school students. And as you can see, all of our channels are growing at a similar rate. However, new campuses will contribute to some of our overall growth, but we also need to ensure that we have organic growth. We're looking at the high school and the veteran channels as high opportunities for us at the moment. They both give us a chance to delve into field, add some investment and increase oversight as well as personnel, and we can see growth in those two channels. We do know that our [indiscernible] program will have to hold down as it is now, the bulk of the load. But we have some areas of opportunity for our future. This will also by adding staff to these channels, it will provide a broader awareness of our Lincoln story. And I believe we should share with everybody everywhere. Actually the mic guy, I tried to get RGR from them and see if he had somebody who wanted to go to school. We should share it daily with everybody. And I will. So let's talk about our start trends over time. The two charts show obviously extreme growth over the last few years. Our inquiry flow, the bottom chart, obviously, positive. And also, as Scott had mentioned earlier, we're projecting a pretty good quarter here in the first quarter, somewhere around 19% to 20% growth. So since COVID, our starts have accelerated, and you can see that from the chart -- we've added some increased capacity to support that, obviously, new campuses, new program offerings, replications will help us. Market conditions are positive. Scott mentioned this and so did Mr. Shaw. They're moving in our direction. We have favorable press now the positive media exposure that we get. We have the K-12 institutions that talk about us differently. We're not the last resort. We're looked at as a an opportunity for students to go get a professional career and enter the workforce. Our inquiry trends have exceeded our expectations, and they continue to show positive momentum in 2025, and we expect that to continue. Let me talk a little bit about what keeps me awake at night. I need to make sure that our admissions team are successful for the future. What that means is I need to ensure that the 6 drivers are key to keeping our success. When we grow at rates like we're growing, the numbers are important, but the people are also important to drive those numbers, and it's my job to ensure that they're doing it successfully. We need to work on culture and keep our culture happy. Keep our culture working positively. I need to make good quality decisions along the way. We need to have a durable team, meaning it's durability for time and not only that, but work-life balance. We need to continue to develop our employees and train our leaders, build trust and then we need to define what success is for them and what that metric is. So we're looking to ensure that our team stays healthy and active. Obviously, AI has been a big talk of the town recently. And so we're going to leverage some of the AI world as well. We're dipping our tail in, and we're looking at certain things, but some of these we're using some of these we're just testing. We're looking at a website search, and what that would be is just like ChatGPT, you go on and you ask the question and it gives you the answer. So instead of filtering through 500 pages on my website, and just ask the question, what is it cost to go to [indiscernible] for the automotive program and they'll give you an answer. We currently do call monitoring. Call monitoring will flag issues with our reps, and we search to make sure that they're staying compliant with what they're saying with the applicants. It also can identify trends that may be positive, things that we're saying, right, things that help things that may be a new market is looking at and wanting to hear about. We're looking at a rep assistant. Rep assistant could be someone that's just standing by. You have a question as a rep, you want to know about a policy or procedure, specific applicant, you can ask that rep assistant and get some help. We also, right now, are doing self-scheduling. We're seeing great opportunities here. Many of us have probably purchased something online. I remember when I got my first computer. Someone said, you'll buy things online someday, I said, "Hey, no, I'm not buying anything online. I would never buy anything like. And now we buy a car and houses online. And I think some of our students wish to be self-service that way as well, and they would like to go through the process alone with our support, obviously, in the back. We'd never leave them on the caretaking side. Anyone that applies, anyone that would enroll anyone that would take our program with a more self-service centered process would obviously have our care taking. And we're also going to do care taking through videos, and sending letters and automations that we're currently using. And the last part is self-service, as I mentioned earlier, I'd like them to have the ability to walk through the entire process as they see fit through the admissions process and financial aid if they want to do it by themselves. So growth in 2026 and beyond. As the trades continue to gain favorable press and growing support from the K-12 leaders, we intend to capture some of this momentum and positive reinforcement from outside of our institutions, the things we've been saying for years are now finally being heard. So high school will continue increasing our investment on that side of the house. we'll be adding oversight. We'll be adding staff members, and we're expecting that channel to grow. On the adult side, that's our core program. It's obviously delivered solid results over the past 10 years. And on a same-school basis, it's grown our student population to its highest level ever. This is a highly functioning team and we'll continue to benefit from their results overall. We still need to continue to rely on them for durability, drive and consistency. And as I said earlier, our veterans, obviously, we have some opportunity there. Now the curriculum is approved, and we are going to add some oversight and some staffing to cover those parts. And so with that, I'm pleased at what our admissions team is doing. I'm proud of everything they do on a daily basis. And I'm honored to be a head of a team that gets to effectuate change every single day. And with that, I'm going to turn it over to Gina Zaffino, Senior Vice President of Education.

Hello. Good morning. I'm Gina Zaffino. I'm our Senior Vice President of Education. So I'm going to talk a little bit about our graduation trends, as Scott said, we've maintained graduation trends in the high 60s except for our COVID year, but we've maintained in the high 60s, close to 70%, and you can see in '25, we've dipped just a little bit. That's because of all of our amazing growth and trying to keep up with demand. But we've put some excellent strategies in place to help turn that corner. And if you see in our blue chart over here, you can see early indicators are showing that we're already having a positive trend in graduation with our latest February graduation rates being the highest so far. I want to talk a little bit about those strategies. So some of the things we've done in the department is one we've put a lot of efficiencies in for flexibility and reduced administrative burdens. Our standardized academic delivery, our hybrid model offers our students a lot of flexibility. But then we've also standardized our structure and our operations to reduce administrative burden, so our campus personnel can focus on students. Part of our standardized structure is we've put in dedicated retention coaches at every one of our locations. These are individuals who are focused on academic success helping to identify early at-risk indicators for students, helping with advising, making targeted approaches for outreach strategies, but their goal is really to help our students be academically successful. In addition to this, we've put in dedicated student services at every one of our campuses. And they are really people that help with the nonacademic needs. And it's really the nonacademic needs that challenge our students more than the academics. It's life. It could be transportation, as Jay said, it could be health issues. It could be child care. It could be all the things going on in their world. So we've put folks in to help them with the resources whether it's financial literacy or helping them find transportation, but we have dedicated people now to help them with their nonacademic needs. And one of the other things, and I'll talk a little bit more in my presentation that we've done is put stronger emphasis on our faculty. In addition to our students' life challenges, we're competing every day with all the business of their life that they want to make a choice to come into our doors every single day. They don't have to walk in every day. But our faculty of the closest people to our students. So it's very important that we have very engaging caring trained faculty. So we've put a very robust faculty training and development plan in place, which I will talk about more, and then our campus equipment. Last year, we did a big investment in all of our campus equipment to make sure that our students are learning on the most innovative modern campus equipment. You'll see when you tour the campus today, because having good equipment makes the class more engaging. It makes it fun. It makes it exciting, makes our students want to be here. So this chart just showing you basically where we're at with our hybrid completion, and this is the one Scott referred to, there's a little typo. Nursing is not a check mark yet. That's a 2027. That's in progress. So we'll fix that slide and get that sent back out. But basically, it's showing you everything that is complete as far as our hybrid model. You'll see that we have our new campuses listed. Obviously, they are not in the hybrid model yet. They're not built yet. And also the other one that we're working on is our Connecticut schools. You'll see East Windsor, New Britain and Shelton. We will be rolling there skilled trades into the hybrid model this summer. And the 4 elements of basically our instructional model are discovery. So we give our students preassigned work to do at home. This is part of their asynchronous work that they do at home. And this is where they can use simulations, gamification, but what we want them to do is we know our students are used to being on phones playing. What we want them to do is do some of their own discovery, figure out some of their learning their own way by doing games, by doing -- it's sort of a virtual way of doing some of the hands-on stuff. They come to school the next day. This is where they'll get a discussion in a demo from their teachers. So teacher will go over anything that's challenging or maybe they need some more help on and their homework. And then from there, they go right out to the shop and they spend the majority of their time now taking what they learned in their simulations and in their demos and now they're putting their hands on the real stuff and doing it. And then, of course, we have assessments to assess whether or not they are effectively learning. So one of the areas that we've really invested in a lot of time and resources is developing our instructors. Like I said, our instructors have the closest touch points to our students and they're with them the longest. In our industry, we're generally hiring people who are trades people, who we put right into the classroom as instructors, and they don't always have instructional training. They may have been training on the job for 20 years, but being in a classroom with 25 students is very different. So we've developed -- we've developed 2 really good programs. And I'll say, 2, even talking to other educators in our same space, this is one of the biggest challenges is training trades folks, men and women to be teachers in the classroom. So we've developed two things. One is what I would say is one of the best programs out there, our onboarding program, which is a little bit of a boot camp for new instructors. And what it does is it mimics our hybrid model. So it's 5 weeks, and we have our teachers do preassigned work, demos, synchronous, asynchronous, and then we put them in the classroom. And then we give them 1 year of ongoing training, but that 5-week boot camp is how we really turn them into instructors. We've also developed a program that we call Ladder, which is a growth path in compensation program for our instructors, meaning we have certain metrics in there where they can get better, they can enhance their own skills. And as they get better student outcomes, we have growth paths for them. All of our -- we rolled these things out last year, we've had a huge increase in , I should say, a decrease in turnover, but we've had a huge impact on faculty turnover. Good trained faculty make for a much better student experience. This is just a picture of some of our cutting-edge tools and equipment. When you do your tour today, you'll be able to put your hands on some of this stuff, but this is some of our automotive trainers. You can see very modern, very cutting edge. When you go out and look at it, you might want to touch them. That's what we want our students to do, put their fingers on things and touch them. Our equipment is very fun. I myself like to play on it. And then, of course, we're also leveraging AI and education. We have right now what we call our AI study body, which when our students are doing their asynchronous work, -- this gives them real-time targeted feedback that gives them instantaneous feedback, letting them know where they need to study more what they got wrong, and it actually shows them where to go in their studies, whether it's their simulations or their books to actually improve on those skills for better student outcomes and a better academic success. And basically, our commitment is really to support the whole student just beyond instruction right -- we want a holistic model. We know our students have challenges. We know they come to us to change their lives. We want our students to stay with us, we want them to graduate. We want them to get jobs. And so our model is to give them a great classroom experience, the best faculty -- we want modern tools and equipment that are going to mimic what they're going to do in the real world. We want good advising and support, and we want to help them with all their nonacademic needs. We want to help them with their outreach. We want to help them with -- through our outreach strategies. We want to help them get the resources they need to remove barriers and obstacles so that they can come here every day, graduate and get a job. We remind our students why they came to why they're here. We know why we're here. We talked about it all the time. Our whole leadership team knows why we're here. Our job is to remind them why they're here and to remove as many obstacles as we can so they can graduate. And with that, I will turn it over to Jenn Hash, VP of Career Services.

Good morning, everyone. I'm Jenn Hash, VP of Career Services, and I'm excited to share with you what we do in Career Services at Lincoln Tech. So as Jay mentioned before, we're in a unique business. We do not sell a product. our graduates are actually our product. They are the measurement of our impact and our success. And then our customers are employers, our employer partners that have critical workforce needs and they're looking for that skill, job-ready talent and we're the bridge between education and opportunity in career services. We're the last touch point between our students and our employers as we go from their preparation at Lincoln Tech into placement. And with placement -- every placement, it doesn't just impact that student. We are impacting families, we're impacting our workforce. We're impacting our communities. And we're also changing the trajectory of that student's life with that career and that opportunity. And what we've seen over the years is the traditional route is a great route for some, but it's not the route for everyone, and having the support of K-12 now, we hear the need, the skilled trades gap, that's what we are here to do to help assist with that. So our success over the years, we have increased our graduates of 45% over the last decade. We had over 11,000 graduates across our campuses last year and our highest placement placement rate on record of 82.8%, and we're very proud of that. And it's everybody at the campus is working together to make that happen. And when you look at how we place graduates, this is something I want to emphasize. It's not just placing them in a job. We have to place them in their program of study. So we're looking for them to be able to use their education and place them in a career that uses that education throughout their time. And that's something that sets us apart, and we're very proud of. It's something that's definitely different than the traditional route. Now growing, we also have to grow our staff. We've grown our staff 18% over the last 2 years. We have over 100 dedicated career services personnel at our various campuses. And we're doing this because we are in the people business. We still need to build those relationships with our students as well as our employers. And with our students, they come in to us and the they have a little bit of lack of self-confidence. And even though they build their skills throughout their time at Lincoln Tech, their confidence doesn't always build with that. And so our career services advisers are there to help guide them along the way. We also did put in a new industry relations division last year in Career Services. And the reason for that is we are growing. We're 22 campuses. We continue to grow, and we need to make sure we have a national footprint on our employer partners. We are very good at our employer partnership at the local level, and so we're bringing this to the national level. Also with when Jay talked about admissions, we're not just recruiting students to come to Lincoln Tech not live in the areas that we have campuses. We're recruiting nationwide. So having those nationwide employer partnerships are very important to us. And then our employee link. This is our national premier partners. These are employers that want to give back to Lincoln. They also want to be in front of our students very early in their education. So these employer partners, they'll have tuition reimbursement, scholarships, early hire opportunities and donations to our campuses to make that partnership stronger. So how Career Services prepares. We do not start at graduation. We start at the very beginning. At enrollment, our career services advisers are working with students through orientation throughout their entire life cycle, and how we work with them, resume writing, interview prep. -- education management. We want to make sure that they understand what the workforce is looking for we can give students all the skills in the world, but if they can't interview and apply for a job and showcase their skills, they're not going to receive that opportunity. So that is what our career services department does. Our curriculum, we're in alignment with what's going on in the industry. We have advisory board meetings that look at what does the industry need? And if we need to change our curriculum, we will do that. Education and career services are in lockstep with each other. Our instructors know what our employers are looking for our career services advisers know what is going on in our classroom so we can portray that to our industry partners. And the focus on professionalism. Again, we can train on skills. We are very good at that at Lincoln Tech. But our employers are looking for professionalism. They're looking for students that can show up to work. They're looking for reliability, that critical thinking, being able to have that the communication with with employers and with customers. Most of our students are graduates, they're going to go into areas where they're actually focused with customers, HVAC technicians. You've all had them in your homes. They're usually selling you something. We need to make sure that they can have those conversations with their customers. So those are the types of things that we do all throughout career services. And it doesn't stop a graduation. We are going to work with our graduates through their placement as well as if they want to upscale if they're changing locations, we will work with them throughout their lifetime. So the demand, obviously, it is there. We focus on 3 essential industries, skilled trades, transportation and health care. With skilled trades, you have your HVAC technicians, your electricians, your welders, and those are a broad area. So HVAC, yes, you have your commercial and your residential. But you'll also have the chillers at the grocery store that keep your perishable foods called you need HVAC technicians for that. Electrical. We think of electricians, but even everybody here today, that's the low voltage side of it. So you're looking for people to keep your infrastructure with home theater networks, fire alarm systems, security systems, that's all within our electrical program. and then welding. Our infrastructure, it's old here. We have to make sure we're building our infrastructure up. So definitely, that skilled trades gap, we're filling that with our graduates. Transportation has always been a core with Lincoln Tech with automotive dealerships, independent shops, collision repair, diesel fleets, again, filling that gap and then health care. Health care is not going away. It's accelerating. We have an aging workforce as well as we have many people that need this service. So having those allied health care individuals and patient care. And we talk about AI. These are things that AI cannot take away. You're not going to have a robot working on an HVAC system at somebody's house. You're not going to have for Allied Health, you need that patient care, you need that individual touch. So we're in a recession-proof industry as well as we're in an AI proof industry. And then our employers. They come back to us because we do have a long history, 80 years, 80 years at Lincoln Tech. We have graduates that are ready day one. These aren't graduates that need to -- they're able to go into an entry-level job with skills and know what they're doing. We also have 10 graduations a year. So we're able to supply graduates out into the workforce all throughout the year and not those 2 times a year and definitely a proven track record with what we've done. So strategic focus. One of the things we look at is where are these industries evolving in the sectors that are evolving. We're focused on mission-critical industries supporting those 24/7 operations, including data centers. Our electrical and HVAC programs align directly with what is going to be needed in these industries. The partnerships with high demand, working with new types of industries like AV integrator industries that don't understand that we have the talent that can support their job needs. The national approach is consistent. We want to make sure that every graduate at every 1 of our campuses, whether it's Nashville, Denver, New Jersey, that they have the same opportunities of all of our other graduates as well as our employers have that same opportunity no matter where we're at. Our programs definitely align with what is needed in the industry, and we are able to change if we need to, depending on market research. And the great part about this is our graduates or position for high demand, high wage careers with long-term growth potential. Lincoln Tech has always on this. We have always focused on the trades, transportation, health care. We didn't just get into this because this is something that's hot right now. This is something that's our backbone and core. So with that, I would like to bring Chad is, our COO.

Thank you, Jen. Thank you, everybody, for coming out today. As the newest member of the senior leadership team, I feel that I have a very unique perspective on the world I've worked for some really great companies. I was with strategic ad for about 12 years, and I also worked for Fidelity Investments and also Goldman Sachs. And if it's not obvious to you guys, this is a special place. And what makes this place extremely special is there are 6 things that need to be in existence for greatness to happen. And the first 3 are you need to be at the right place at the right time with the right offering. Check, check, check. But so is everybody else in our space. They're all at the right place at the right time with the right offering. What makes this place different is we have a simple plan that's easy to understand. We have an exceptional management team, and we have the ability to execute, and we've proven that over and over again. And that's what makes this place really special. So I'm going to talk a little bit about our growth strategy. We don't have a fancy name for it because it doesn't need to have a fancy name for it because it's simple. It's 4 very simple things that we're doing. We're going to continue to build new campuses, just like the one you see here. And for those of you that attended our Investor Day in East Point back in 2024, just like the East Point campus. And we have a simple model that we replicate over and over and over again, and it's very consistent in its outcomes and its performance. We will continue to replicate our most in-demand programs. So these are the most in-demand programs with the best outcomes, also with the best financial outcomes, and we'll put them everywhere that we don't have them where we have space to do it. And that will only -- we can only do that for so long because eventually you'll run out of places and space to put those. But the one that most companies overlook when they're growing is an eye on organic growth. So not only are we growing our new programs, not only are we growing our new locations, but our core business is very, very healthy. And Brian will talk a little bit more about that. And the good news about our core business is it's not even close to being at capacity. And I'll talk a little bit more about this on a future slide. We're only running at about 57% of our capacity. So if we didn't build any more buildings, and we didn't do anything else, but we just figured out a way to fill all the open capacity we have, we're only about halfway full, just a little bit halfway. We could almost double the size of the company without doubling or without changing our footprint. And that's a really unique position. And the way we're planning on doing that is we're going to increase our marketing efforts that we've been doing. We've made a large investment in our high school recruitment. In fact, we actually have our high school recruitment leaders, Jeff Mickey and Anthony, sitting over here on the right-hand side. So they're the ones that are driving our new high school recruitment programs. We've made also investments in military, and Jay talked a little bit about that. That's a huge opportunity for Lincoln Tech. It's core to who we've always been. It's how we started, and there's a lot of opportunity there to serve way more veterans than we have. And we're also seeking degree granting in New Jersey, Connecticut and New York, and that's also going to help us better serve the veterans as well as the ability down the road to potentially offer RN. And then when you look at our portfolio, when you just group our programs into the 3 simplistic groups they are, which is health care, transportation and skilled trades, you can see that skilled trades makes up the bulk of who we are and what we do. And 5 to 7 years ago, that wasn't the case. We were a transportation school. But the skilled trades have grown and grown and the popularity has grown and grown. The area that we're going to focus on in this sector is health care, and Jen touched a little bit on that in her comments. And Scott has talked about that our nursing program, our LPM program isn't as profitable as we'd like it to be. We're working on that, and we have a plan in place of exactly how we're going to do that. And once we prove to ourselves and others that it's as profitable as we want it to be, we're going to replicate it. And that will become one of the program replication programs you'll see show up in that second box. Now I want to talk a little bit about our instructional model. So those who were with us in 2024 saw these slides before at East Point and Scott has talked about this in numerous of the earnings call. And this is what ultimately led to our what we call Lincoln 10.0 model. So our legacy model is very simple. It was a 100% residency model, students came to school 5 days a week, 6.5 hours a day, and they studied with us. And there were a lot of limitations with that model. One is it takes a lot of time and commitment for students. They have to be with us, 6.5 hours a day, 5 days a week. And Jay talked a lot about the fact that the bulk of our students are adult learners. These are people that have lives, they have bills, they have families, they need to work. So to have them locked up in a building, learning for 6.5 hours is time away from earning money that they need to do that while they're going to school. The other thing that it didn't allow us to do is provide much scalability and efficiency with our instructional model. So think about this. If you have 3 shifts a day and 2 of them are at 6.5 hours and this evening shift is at 3 hours, to teach 1 cohort you would need at minimum 2.5 faculty to teach just 1 cohort or more likely 3 full-time faculty. And that's just not scalable. Like in my world, anytime you scale, you should be -- you start to be able to bend that cost curve of cost. We call it the cost to teach 1 student in 1 month. And this model never gave you that scalability because every -- you can only have so many students, you'd have to have 1 professor and it was a fixed ratio. So we went to what we lovingly know. We did put a marketing name on this one, Lincoln 10.0. And the reason why it was called 10.0 is when we designed it, we want it to be 10x better than what we had before. And what this model does, is -- so this is our current hybrid learning model and essentially students come to school 4 days a week, not 5 days a week. They -- so they have 8 hours of online learning, and they have 4 days that they come for 4 hours per day, from a student perspective, this gives them all day Friday, all day, Saturday, all day Sunday to work, or it gives them because they're only in school for 4 hours a day, 4 days a week. It gives them alternative times to work in the morning, afternoon, evening. So it gives them that flexibility for Lincoln Tech, what this allows us to do is because it's only 4 hours of teaching now in this world, you could take 1 instructor and have them teach the morning cohort, have that same instructor teach the afternoon cohort. So now you could teach this same cohort of students with a minimum of 1.5 faculty or, let's say, 2 full timers. So way more efficient. And over the past few years, we have gotten a lot of efficiency out of this model. We've driven a lot of cost efficiency out of here. So this has been a real game changer, not to mention to recruit and retain faculty. This has been a very effective tool for Gina and her team because now we're trying to convince people that have access to unlimited overtime who are paid extremely well out in the field to come and teach and maybe not make quite as much. And so now we can at least say to those people, well, the nice thing is you have a 3-day weekend every single weekend. You're teaching 4 days a week, Monday through Thursday. If you want to go out in industry and supplement your income with that, you can go ahead and do that. Or if you're further along in your career and you want to do this more as kind of your retirement career, this is a great opportunity. So this was a game changer for the organization in driving efficiency. Now I just want to talk a little bit about this capacity to further explain this. So the way we think about capacity is you could just say we could take every single classroom we have -- let's assume every classroom at Lincoln Tech and every campus had exactly 30 seats. We could do the math and say, well, there's 30 seats times x number of classrooms times 3 shifts a day, and that would be your theoretical max capacity, right? But that's not practical. So we developed a practical capacity model, and we said, okay, we're not going to fill 100% of the seats for all 3 shifts, that's probably unrealistic. So let's say it's 80%. Let's call that our practical capacity limit. Then what these charts show is how much capacity we have by shift just based on our practical capacity, limiting everything to 80%, and so our morning shift is our busiest shift. So we're at 1/3 capacity throughout our system right now. Our afternoon has a lot of capacity. We're only 38%, and our evening is at 51 and when you sum it all up, we're at 57%. And -- and then if we ever got into a situation, which we haven't done yet, we don't do anything Friday, Saturday and Sunday. We could start to run weekend cohorts if we wanted to. Right now, they're at 0% capacity because we don't utilize the buildings. So if you extrapolate all that out, our actual capacity based on our 80% practical capacity, we're only running at about 1/3 of what we could do. If we could fill up all the seats and no weekends, we could triple our business in our exact footprint, without adding 1 more building. So that just gives us a little bit more insight to that. And then this is another way to kind of visualize over on the right-hand side. So our class size ratio is currently running at 18:1. When we -- before Lincoln Tech, it was -- sorry, before Lincoln 10.0 it was roughly at about 12:1. So that shows the efficiency we've driven out of running this hybrid model and really focusing on filling the ships and the seats. And so we have, again, another 12 students that we could put in and, again, fill up capacity. And if you think about that, the extra margin of each incremental student is really the cost of acquisition. It's basically consumable costs, and it's a fraction of the teacher cost. -- said more simply, it's about $0.85 to $0.90 on the dollar fall straight to the bottom line for each incremental student that you add in there. So there's a lot of leverage in this business, even in my previous life at Strategic Ed. There's a ton of leverage. The beauty is there's a lot of upside, great leverage when you're going up, and when you're coming down, leverage gets de-leveraged really fast. So it's a highly leveraged business. And Scott, I know Brian will talk a little bit more about kind of our revenue projections and our EBITDA projections. But we've made a lot of progress with our margins. And you might be looking at our current midpoint guidance. I know some of you have asked questions around this that, hey, it looks kind of like what it was last year. And we've mentioned that we've made big investments in high school and military and things like that. And that was all before we started talking about what our Q1 is now shaping up to be. So I'm sure, over time, we'll provide a little bit more guidance around that as well. And then while we're executing our very simplistic 4-point strategy, which doesn't have a marketing name -- we are also focused on non-Title IV sources. And we're doing this for a few reasons that -- that should be obvious to everyone. So one is we always have to be conscientious of 90:10 and we need to be good stewards of the organization that's been here for 80 years, and we will continue to do that and look for opportunities to drive 10 side money. But we're also looking to do things to lower the cost of education for our students, which also coincidentally help on the 90-10. But more importantly, they help our students and lower the cost to come to Lincoln Tech. And then the third area that we are strategically focused on is workforce training. So this is stuff outside of core Lincoln Tech and what we do. This is companies coming to us saying, Hey, we have a need. You guys teach in these areas, and we have a group of people that have this skill set and they need this skill set. And we're not in the education business. You guys are, can you come on site and can you teach this workforce that has this skill set and get them to here. So we have different relationships like with container management corporation and a newer 1 with New Jersey Transit where we're doing exactly that, and we'll continue to pursue those opportunities. And then the very last thing I wanted to talk about is just our high school share program. So this works very similar to what is done between high schools and community colleges. Commonly [indiscernible] dual enrollment programs in the traditional higher ed space. So the way our program works is we have relationships with high schools, mainly in New Jersey, at least as of right now, but we're working on others around the country, where students go to traditional school, meaning they're high school in the morning and do their gen ads. And think of it like A lot of us are probably my age, Gen Xers, I'm just going to say Gen Z, but I'm not a Gen Z. We would have known it as you go to [indiscernible] in the afternoon. Well, those [indiscernible] schools are all gone. So what they do is instead of sending them to historically would have been known as [indiscernible] schools, they bust the kids to our school in the afternoon. And those students attend our like automotive program in the afternoon. And during their junior year, they'll amass 3 of the 11 classes that are required in, let's say, the automotive program, and then your senior year, they'll complete the next 3 classes. And this is all paid for by the school district. So the school district pays us pretty much the same price we would have gotten for our retail tuition. The benefit for the students is that when they graduate, not only do they get their high school diploma but now they're a little bit over halfway through a Lincoln Tech program, and all they have to do is enroll at Lincoln Tech, complete 5 programs for less than half the price and they're on their way in less than half the time, it would have taken if they would have graduated on the traditional route. So with that, I'm going to turn it over to Brian Meyers to finish up on the finance side. Thank you.

Good morning, everyone. So I'd like to start by recapping the plan we laid out that we outlined in our last Investor Day in March of 2024. At that Investor Day, we laid out that we're projecting to have 2027 revenue of $540 million. Our midpoint of our 2026 guidance has us at $585 million. So we're already a year ahead of schedule on $45 million more than what we were projecting to do in 2027. And all three of our growth drivers are doing well for us. We're getting nice growth from our base, from our new programs at our new campuses and our campus relocations. For adjusted EBITDA, the 2027 projection has been restated for our new guidance that now just adds back noncash stock-based compensation. So that new number is $78 million we said we were going to do for 2027. And our 2026 midpoint of our guidance has us at $74 million. So we're already 95% there, a year earlier. And what's important to note is that in 2025, we opened up our new Houston school opened up in Q4, and then we also relocated our Nashville school this school and our [indiscernible] school. And as they begin to scale in 2026, we should -- it will really help us exceed that, easily exceed that 2027 number. We are showing strong growth in all our guidance metrics. Our EBITDA is growing 30%. Our net income is growing at 8%. Our net income is lagging a little bit to our EBITDA growth, and that's due to our depreciation expense from our recent growth initiatives. But as those growth initiatives scale up, we should start seeing our same level of growth from our net income as we are from our EBITDA as well. We are projecting to have about $72 million of CapEx, and it's important to note that 70% of that is for our growth initiatives, our new campuses of $51 million. And on this slide, 2025 has been restated the numbers do reflect our new guidance methodology, which adds back again, noncash stock-based compensation, and we did have a onetime item in 2025 for pension expense. Now for our first growth driver, which is our organic growth. As you heard earlier that we are benefiting from the macro environment, were growing interest in skilled trades, people are questioning, I think Scott mentioned that people are questioning for your college education, the value there as well as for AI that it's impacting a lot of the white-collar jobs. Our model that we're talking that I'll show in a little bit, does assume a very, I would say, a conservative 5% growth in our base. And what is I think I would like to let you know what our base is or what we call organic growth that Chad was saying, is just campuses that were opened prior to our March 2024 Investor Day. So when we talk about our organic growth, we're talking about all campuses that are open as of March of 2024. So that is our investor -- that's what we're calling our organic growth. So our model does assume a 5% growth, and we'll get that from 2% to 3% tuition increases, higher enrollments. And as Chad mentioned, we have a lot of capacity at our campuses. So when we start increasing our population, we'll start getting great operating leverage. And we'll start -- as Gina mentioned and Chad rolling out our Hybrid Learning Model, so getting -- we'll still get efficiencies from that. And we do, as Scott said earlier that we are skinning down our program. So we're constantly looking at our programs, at our existing campuses that are underperforming to put them -- the replacement with the higher demand, more profitable programs. So our second growth is coming from our new campuses that we announced in our campus relocations. So we have announced, we we have announced 4 new campuses and 2 campus relocations. And they have been -- all the ones that launched have been performing very strong for us. We did invest -- make capital investments in these campuses of $140 million, all of which will be paid for by the end of 2026. Additionally, on our new campus, excluding our East Point campus, at 2025 on a combined basis, they had negative EBITDA of $7 million. So as the scale up, you can see that it will have some nice growth there. And all these campuses as they scale up from 2025, they should be producing another $100 million worth of revenue and all these campuses combined should have about $50 million worth of EBITDA. And one thing I want to mention is the strong performance our East Point campus. East Point campus opened in Q1 of 2024. And by the third quarter, it already reached positive EBITDA. And what we thought it was going to do, what we projected it to do in 2027, it did that in 2 years earlier in 2025, reaching $8 million worth of EBITDA. So that was very strong for us. So based on the strong performance of our recent launches, we do have a new campus model based on the success of our lounges. A couple of things I want to point out is that for our new campus openings, it takes us 21 months from signing to opening up a new campus. So when the model year 1 is 9 months, of preopening and year 2 is 12 months. So that's how you come up with the 21 months from lease signing to having starts. Each new campus will cost us between $20 million and $25 million. And all our growth initiatives that we do internally, we try to have a minimum return on our investment of 20%. And our new campuses have been producing more like 30%. So we're getting a very nice strong return on our new campus. In our third area of growth, which you heard from Chad, that we're looking to build 2 new campuses a year. We're looking to spend between $50 million and $55 million each year, and building out to 2 new campus is flexible depending on market demand and site availability. So it is a little bit fluid. But again, we're looking to spend about $50 million to $55 million each year. All that is looking to be self-funded. By 2030, our future new campuses, you'll see are projected to produce about $90 million worth of revenue and about $20 million worth of EBITDA. And our start-up costs for each of these campuses in each year is about $10 million of losses, in each year. That will all be included in our EBITDA. So now for our revenue, our revenue plan for 2030. So a point of our guidance for 2026 is at $585 million, and we're planning on getting -- by 2030, getting to $850 million, from those 3 growth drivers of our campus relocations and new campuses that we already announced our organic growth and our future new campuses. By the end of 2026, including our Hicksville campus, that's going to be opened up in Q4 of this year. We'll end this year with 23 campuses. And then our next new campus will be in Q1 of 2027, which will be our [indiscernible] Texas campus. So we'll have 24 opening campuses. So you could see that the middle red box there. That just shows all our growth initiatives announced to date, all our new campuses and our campus relocations. So we are going to have future new campuses, but even without that, we will be able to still do $760 million. And each year, we're projecting to have a 10% growth year-over-year. For our adjusted EBITDA growth right now at the midpoint for 2026, our midpoint is at $74 million, and we're looking to more than double that to $150 million by 2030. That is an annual growth rate of 20% each year. And you could see that even without any future new campuses, we'll still grow by 90% at $140 million. So again, that middle bar, it just is all campuses that were announced to date and all growth initiatives. That's why it only has 24 new campuses. So now our future new campuses that by 2030, we're hoping to sign 9 new leases and open up 6 additional campuses. And as Chad mentioned, right now, we're projecting to have about a 13% margin, and we're looking to grow that margin each year by 150 basis points to 18%. And again, you could see where we're getting the growth from the relocations, the new campuses, our organic growth and our future campuses. By 2030, we're looking to triple from what we're projecting to be for 2026, triple our net income to $60 million, also almost triple our diluted EPS to $1.90. Each year, we're looking to spend about $75 million to $80 million in CapEx which $50 million to $55 million will be related to our new campus build-out. We're going to continue to have a very strong balance sheet where well, by 2030, be generating over $50 million worth of free cash flow. We should have over $100 million of cash on hand. And each year from 2026 to 2030 we might have to borrow during the year, but we're projecting right now to have no borrowings at any year-end because we're very seasonal, in the second half of the year, we do generate a lot of cash. So we're projecting to have no borrowings at year-end. And I think as Scott mentioned, we're very well positioned right now to more than double our existing credit facility to [indiscernible] of our future growth. With that, I'll turn the back over to Scott.

Thanks, Brian. So I think you can see that we have a lot of great momentum. I really do believe that this is a great time for Lincoln. No one else has our longevity, our 80-year history. No one else has been in the trades. As long as we've been in the trades, we do provide a quality of product, and we're going to be constantly focused on that. We want to drive profitability, but we want to drive our outcomes. That's going to lead to long-term success for us. We are constantly having more people come to us. There's more interest whether it's employers, as like Jenn Hash mentioned, or it's frankly the high schools that for years kept us out and now they want to embrace us. There's a lot of new opportunities ahead for Lincoln Tech. And given the strong balance sheet that we have, we are well positioned to continue to grow our business, and at the end of the day, I do believe that our people are the difference and so we're going to continue to make investments to make sure that we hold on to our people, give them great futures, and really make them as happy as can be, because happy employees make for happy students, which makes all of us happy. So with that, we're going to turn it over to questions.

So the question was, what's the process for getting degree granting status? Because just so you all know, the way that the rules work lots of times life goes faster than the government, and we are not allowed to -- or I should say another way, vets are not allowed to take a diploma online program and get -- take advantage of their benefits. So in states like New Jersey, where we have 6 campuses, in Connecticut, where we have 3 campuses and in New York, where we have 1 campus today, and soon we'll have 2 campuses. We're seeking degree-granting status, and that should be hoping, it will be within 12 months for New Jersey and Connecticut. For New York, it's a process that I've heard anywhere from 1 to 5 years. Our application is in front of them. Our senator that represents us in our district has already voiced how this needs to accelerate, but I can't tell you exactly when New York will be. But I feel pretty confident that we're going to get New York and New Jersey -- we get Connecticut and New Jersey in the next 12 months.

Okay. And then on nursing, maybe update us on your journey there?

So as Chad said, our objective is, again, we want to be the best at everything that we do. We have nursing at 7 of our campuses. Our [indiscernible] rates last year averaged 95%. So we're in very solid footing there, but it's not a big contributor to our EBITDA. So we're reorganizing the program as -- even though the slide says we're in Lincoln 10.0, we're not in Lincoln 10.0 yet. We're going to move to Lincoln 10.0, which will add efficiencies to us. We're changing how we're compensating some of our nurses to help drive profitability there. I'm hoping that within 18 months, you will see what the profitable model is, and we'll be transitioning our campuses over into Lincoln 10.0. I can tell you that in all the projections that we're giving to you, we're basically assuming nothing's happening with nursing beyond where they are today.

I just wanted to ask on the organic growth I guess what is the biggest hurdle to filling excess capacity, excluding even if you were to go through Friday, Saturday, Sunday classes, just with that existing capacity because obviously, demand is so robust it should seem like you can fill that pretty quickly? Or is it a geographical thing with certain campuses or I guess any color there?

Well, demand is definitely robust, but we literally have hundreds of thousands of leads come in. So we are constant -- even though everyone thinks trades are wonderful. Everyone knows it's the trade, you just open your doors, and they come in. It's not that easy. We have to be constantly out in front of these people constantly reminding them what the opportunity is as well as not everyone knows who we are. We just had a meeting down in Trenton with a group of the state senators and assembly people. And here we are, we've been in -- I'm sorry, I've been in New Jersey 80 years. And some of them didn't know who we are. We think everyone knows who we are, but there's a lot of people out there that still haven't gotten the message. So that's what it is. It's really getting in front of people, letting them know about the opportunity. The good news is more people are receptive to that we still have to get in front of them. So it will be nice but consistent growth, mainly a marketing initiative. I believe so.

Yes, I was explaining to one of the other -- I think -- I was explaining to one of the other folks this morning that when students come to us like it's a little bit different than traditional college students that are, when we all went to high school and everybody wants to go to college, people are pretty like motivated dead set, you're like, "Yes, I can do it, and I'll go college and I'll apply our students aren't like that, right? They come to us and they're not as self-confident as you think they would be. The good news is the ones that come to us are the most self-confident of the least self-confident people. But that doesn't mean they just come to us like, yes, I want to do this. They still have a lot of reservations and a lot of doubts like, can I do this? Can I afford it? Like is this really what -- like can I be successful at this? So it takes a lot of handholding, it takes a lot of convincing them like, no, you can do it. Like it doesn't matter where you came from. The human brain works same whether you're wealthy, not wealthy, whether you're -- whatever your racial background is, but we have to overcome a lot of self doubts in people, and that's probably one of the biggest hurdles. It's not that there's not demand out there. It's that the people that come to you, they still have reservations whether they think they can actually do it. And the biggest issue are things like transportation and affordability because like I said, they have -- some of them have kids and they have real bills, and it's like how am I going to go to school and still pay for my apartment and feed my kids. I mean there's -- there's a lot of food and security out there. So it's a bit more complex than people think in trying to -- trust me. We would want to fill up all the seats tomorrow. If it were that easy, we would have done it.

I'm sorry, I skipped the slide just to kind of summarize that. So this was a comment from one of our admissions people, when we were asking like why do you enjoy working at Lincoln Tech? And this kind of summarizes it here from the emissions perspective, they can see the excitement in the student size. They also see a little bit of despair or uncertainty. And so it's really from an admission standpoint is really getting them over that hurdle that they can be the success that they all want to be.

Thanks. Scott, a question on Lincoln 10.0. 30% of the coursework is online. Is that asynchronous? Or are there any live classes? And then second how do you settle on 30%. Could it be 40%? You don't need the capacity. You have a lot of excess capacity, but could 40% of it be online for some programs?

It's a very good question, something we debated. We're a hands-on institution. People come to us. The biggest complaint from our students, we want more hands-on. But we don't want to take that away from them. At the same time, we know there's stuff that they can learn online, there's theory, there's things of that nature. So we want to make it, I'll say, enough where it builds in flexibility for their lives as well as enough of the content that can be really almost maybe -- better done online, but we wanted to maximize the online experience. I don't know, Chad, anything...

Yes, I was going to say, I think it also goes back to what I was talking about, about the vulnerability of some of our students. And if you're already scared, nervous, do I think I can do this, even though like my kid is 20 years old and his whole life, he grew up on online learning, even a public school system. Students still go through that, they come out and they're like, "I'm not an online learner. They'll come and tell us, I don't want online. I don't like that. It's not how I learn. So we just felt if we tried to push -- if we went too far with online, we would only probably push more and more people away.

Great. That's helpful. And then it seems to me high school is a great opportunity. Veteran is a big opportunity, but so is high school. What have you been doing there differently, say, from 2 and 3 and 4 years ago? And how big could it get? And how -- and what is the structure of that enrollment counselor force? Are they out in the field? Do they get compensated the same way for inbound calls for adults, things like.

I'm not going to let Jeff speak, our Head of High School. He would gladly take the stage right here. So we have time limits, so I'm going to address that question. So what we've done is, first of all, we brought in new leadership. We have a dedicated resource for high school before Jay was overseeing most of it. His business and our business is growing very well. So we want to bring additional resources to put additional focus has a deeper approach, broader approach. He comes with a lot of experience. He comes with, I'll say, a fan base who has been following him to Lincoln Tech. So we're getting a lot of good talent. We are increasing some of the compensation. The reality is we were a training ground for a lot of other people's high school initiatives. But now with the receptivity that we're seeing from high schools reaching out to us, parents of high schoolers being more inclined to send students to us, we're going to really lean into that. And so we're putting more resources, hiring better people, paying them with better wages and increasing the number of high school reps that we have out there to take advantage of all that.

And I was just going to say one other thing about that. So what's different about the high school model versus the adult model that Jay runs -- the marketing team feeds Jay's team with inquiries. They just come in and Jay's team works all of those inquiries. In the high school model, there are no inquiries that are generated from the web. These are human beings that go out school to school to school and they make presentation after presentation after presentation, and they generate their own leads. So they're their own marketing engine. They're doing everything on their own. So not only do they generate their own leads. They work their own leads, they enroll their own leads. So it's a totally different role. And during the school season from, let's say, August to May, these folks are on the road all the time. They're just traveling one school to another to another. They do hundreds and hundreds and hundreds of presentations during the school season. So it's a totally different job, and it requires a very different compensation, which we didn't have it dialed in right. And that caused a lot of turnover. And think of -- if you're a high school counselor, you're very protective of your kids. And if 1 week from Lincoln Tech shows up Jay. And then a year later, it's Chad and a year later, it's Scott. You start to think to yourself I don't know if Lincoln Tech is where I want to send my kids because I keep seeing different faces all the time. So it's a model that you have to have people that are dedicated to it, and they have to be in these roles a long period of time and create these long-standing relationships with the high schools, and that's what we're doing, but it takes a little time.

[indiscernible] from competitors? That's the next question.

Most of them, yes.

Raj Sharma, Texas Capital Bank. Fantastic to be here at the new campus. I wanted to just follow on, on the high school share program. It seems like an excellent program. And I think you mentioned the reimbursement model, how well established is the reimbursement model from the high schools? Is there a pushback? How do you do that? Because that's pretty critical.

Yes, I'll take it. So it is critical, and that's why it works so well in New Jersey right now. New Jersey funds, high school at a much higher level than many other states. So it works very well for us. The problem is you have to negotiate with every kind of school district, which makes it less scalable and it's harder to implement, but we're out there probably in about -- while we have like 48 different school districts, both in New Jersey and outside that have expressed an interest. Now it's really trying to determine, can they afford it? And can we make something viable work for them, and every school district, we have to negotiate something a little bit different. So it's a great opportunity. Again, it those speaks to me about the desire by more people to come into the trades -- and we're just trying to figure out how we can meet that need at all different levels, whether it's in high school or post-high school. So it's still small, like in New Jersey, we have maybe 128 students, last year is about 60 students, hoping to maybe double it this year, and then we're looking to bring it in some other states. And it's a great model. The -- it's so into the administrators say, "Wow, this student is doing so well. We're just surprised. Well, because he's doing something he likes or she, I mean, they're engaged before they might have just been kind of, I hate to say, sitting around doing something that's really unproductive. So it's trying to meet people's needs, but it's difficult.

So how tough do you foresee this to be because the biggest part of the reticence is going to be from the parents who want to do this and of course, from the school district, too.

Yes. So that's all things, you've got to market. If you get parents really pushing behind it, that can get school districts to change their mind, but they also have limited budgets. We benefited in New Jersey in certain regards, was they were sending students across the border to New York, and all their programs now are full. So they said, sorry, New Jersey, you can't come. So now we're filling that gap and they're far more receptive, and some constant marketing and letting people know that this exists, but it's a great way. dual enrollment. 20% of the people in community college are dual enrollment. They're in high school. So we're just trying to replicate that model.

And then my other question was on the same vein, reducing dependence on Title IV corporate programs. any new on the horizon and how do you see that?

Well, I see it as a huge, huge opportunity. And I somewhat get -- I tell you in [indiscernible], frustrated with a lot of our corporate partners. They just -- they think that our product is like buying something at Home Depot off the shelf, but they're going to get exactly what they want, when they want it at the price they want, and that they're all screening that they need more talent. Well, that's only going to come if you partner with people like us and you frankly have to pay some money to train people. So with regards to that and with regards to corporations, we're seeing more people come to us. It's just -- it takes a long time to make that decision. We're looking at bringing in more resources in that area to add more focus, add more skills to open up more doors. I know the doors are there. We've just hired a marketing person to help us craft what the value proposition is for things like that nature. So that's on the training side. Jen and her team are bringing on resources to make sure that the employers that are currently hiring our students are getting more involved in offering better benefits, more tuition reimbursement, more plans, hopefully, to provide scholarship. We have certain companies that do start providing scholarship 6 months in. It was a interviewed a student and they like what they see, and they kind of want to lock them in. So we're just trying to encourage as much of that as possible.

Great. And my last question is really more for Brian as well. Just on the projections, the 2030 EBITDA with the new programs is $150 million. There's not much of a difference from the $140 million without the programs. And obviously, that's because of the run rate. Can you talk about what the run rate of by 2030, that implies a run rate revenues for the programs have already been opened but have -- but they're now contributing peak revenues and EBITDA. Can you talk about that? And then the follow-on question of that is, when do we expect your CapEx to fall off in the sense of, hey, we've built all the campuses.

I'll take the latter right now for the foreseeable future, unless market demand changes, we're going to keep the CapEx between $75 million and $80 million and looking to build 2 new campuses, which is a little bit flexible based on demand and based on site availability. So that will keep going. As far as the run rate, we do have a slide in there that shows that each campus, we're expecting to get to $30 million worth of revenue by year 4, I believe, of opening 4 or 5 of opening.

And each one to generate $8 million to $10 million of EBITDA.

Yes, and $10 million worth of EBITDA.

Yes. So you can do the math and see...

Correct. Yes, it'll be 9 leases, 6 open, so a full run rate will be 6x the $30 million or $60 million.

Before [indiscernible] we take your question. We do have a question coming from the virtual audience. Scott and team with the desire to involve more veterans combined with President in DoD's publicly communicated plans to revamp our naval fleet, is there potentially a large opportunity to train veterans to student in shipbuilding? How quickly can new programs be added to the Lincoln offering based on ever-changing labor needs of the country?

Sure. So well, I mean, I think what I was probably referring to is the government is looking to revamp the submarine fleet, they need to build 3 subs a year starting next year, and they forecast the need for 250,000 skilled trades people, of which a good number are electricians, welders, and even HVAC techs. So we've been having discussions. I know Jen and her team have been discussions with the different providers, whether they're -- it's electric boat as far as a large employer in Connecticut, where we have a strong presence, to down to smaller firms that are providing all the parts that go into this. So it's not necessarily needing to bring vets into it. We're happy to bring vets into that workforce, but we're constantly trying to get in front of all these organizations that need talented skilled trades, electricians, HVAC techs out there. I don't know, Jen, what else you want to share on that?

Yes. So we're in talks with many organizations that with the Department of Defense and building our fleet up. One of the things we see is everybody wants someone with 3 to 5 years of experience. And obviously, we have entry-level tech. So looking to see how we can up-skill our techs and our graduates quicker and also maritime weldings a little bit different than the welding we teach to see if that's something we want to get into as well.

So I just want to jump back to the leads discussion. Scott, you mentioned you guys get hundreds of thousands of leads. I think it was on one of Jay's slide that showed the trajectory for this year, which looks relatively similar to years past, maybe slightly north of 50,000 so far in the first couple of months. But I'm curious what designate to lead. Is that everybody that interacts with Lincoln via the marketing initiatives or high school students that express interest? And then second kind of part of that is 19% starts growth for the first quarter is really robust. Is that a function of greater intent by these leads or better conversion of the leads that you have or just overall demand?

It's probably Scott, more than me, but our leads come from several different sources. So we also -- we have the high school leads that we talked about earlier. We have our rep generator referral leads, which those are the leads that we generate ourselves through asking a prospect that they know to the outset who might be interested. And then we also have the marketing generated leads which are dozens of channels as well. Demand does look like it's similar to prior year. And however, it is an uptick. It's an early measurement of my chart there, as you saw for 2026. I think that the lead base is there for our start growth and our projected start growth, and the 19% is proving that we have the availability there still to grow.

And we do focus on conversion. That is important. All leads are not the same. Channels are not the same. So we -- that's how we measure the quality of the lead conversion. So we are seeing improved conversions early on. I'll attribute that to admissions on that side, we're certainly doing what we can. But we do focus on that. It's cost per start from a lead source is much more important than a cost per lead.

There's a healthy tension between marketing and admissions -- and they are currently focused on bringing in more leads. But again, we want to bring in quality leads. -- because you could have flat leads and actually get better performance if they're better sourced leads. And so Scott and his team are constantly looking to do that for us. And Jay and his team are constantly training these people to improve their conversion rates. So even when things might slow down, we can still drive growth. In particular, for the first quarter, the surprise growth really came from the organic side. We're just seeing more robustness there than we thought. The new programs are delivering what we anticipated, but it's really the core business, which is growing faster than we might have budgeted.

And would you say that stronger growth did that ramp up in the last month since your earnings call? Or was that similar to what you were talking about in the earnings call as well?

It's continuing trends. Sometimes we just can't believe what we see. So we're very cautious in how we project and we'll take the upside.

Eric Martinuzzi from Lake Street Capital Markets. My question is for Gena. It's regarding the graduation rates. You talked about there was a slight decline in the last couple of years, but then there's been some reversal. The issues that you guys talked about, the reason that students drop out mental health, financial issues, transportation, was -- have you done kind of the after action surveys with those students that didn't graduate, do you have access to them to really figure out was it a student-specific issue? Or was it maybe a Lincoln issue with maybe quality of education or facilities?

Yes, it's a good question. I don't know if we do surveys for students that haven't graduated. Something that we could do. But we noticed from talking to our students, we know what the issues are. We know where we need to help them. That's why we've made so many changes, right? We know that our students tell us when they leave, why they're leaving right? It could be -- they're not always honest, but always going to say, I'm leaving because I have a mental health issue or I'm leaving because it's financial, but they generally tell us when they're talking to their Dean, this is why I'm leaving. So we can look at the trends as to why they're leaving. So this is what kind of triggered the areas that we need to focus on. As far as after the fact, I need to look into that. But again, we know why they're leaving. They tell us when they're leaving and why. And so that's the areas that we focused in on.

So those focused efforts you feel like that's what's caused the reversal?

Absolutely. Absolutely, yes. Because again, we're focusing and the reason that they're telling us why they're leaving, right? I don't have transportation. I don't have childcare they're letting us know why they're leaving, how honest they are in those discussions. I don't know because, again, some things might be embarrassing for them to talk about. But that's where we did focus our efforts on why are our students dropping and what are the most important things. And again, most of the reasons why they're dropping were nonacademic.

Was there any -- as far as amongst the 22, 23 campuses, any trends by geography or problem campuses?

I don't know if I'd say campus, but program, you can see trends in programs, right? So our allied help with a lot of child care, right, where other -- you can definitely see the trends between skilled trades and allied health.

But we do -- when we survey our students to get a sense of what do they like, what they don't like. And we definitely know that they want more training aids and better training aids and the Brian mentioned, we put more money into that, and we'll continue to make more investments. But it's almost no matter what you do, you still can never satisfy them when we moved into this facility. I don't know if you ever saw the old Nashville, we still didn't get 100% of people. Wow, this is fantastic. They still had I don't like where my parking spot is. Who knows what the issue is. It's very tough to fully satisfy them no matter what you do. But the issues tend to be life issues that get in the way, which is why we track attendance, and we reach out to them when they're not attending because we know if that starts repeating, there's something there that they're missing. As Gina has said, though, lots of times, people are very private and they're embarrassed to say why they're struggling. That's why we try to create an environment where people feel free to talk about what their challenges are. They can find someone here that they can talk to so they can try to help them. we can't solve everyone's problems, especially we don't know what they are, but we do try to solve as many problems as we can, but it's life issues. It's a boyfriends, girlfriends, it's children, losing jobs, spouse changing a job, all these sorts of things that are the #1 driver. Sure, some might be dissatisfied with the education. But the at least some say, boy, this is a lot harder than I thought because it's an accelerated pace that we're putting people and some people still have this mindset of vocational school, this will be easy. Well, it isn't. So there are multiple ways, and it varies by campus and by program, and we just have to stay on top of it to make sure that we can get all those people over the finish line.

Okay. And last question, maybe for Chad. But you got new campuses per year particular areas of the country that you're going to be focused on as you investigate where our services and the greatest demand and then programs whether it's skilled trades or transportation or health care, what's the focus?

Yes, no problem. Yes. So let me answer the latter first. So the program offerings will be, for the most part, what we call our full-service campus program offering. It's the big 4, it's auto, it's welding HVAC and electrical, that will be how we'll open up most of our new campuses. And then as far as location, we're obviously looking in markets that have high needs. We have certain metrics that we're looking for populations of students between the age of 18 and 44 that have high school education, but don't have college education. Things that are very attractive to us are markets we've already been in. I know Scott has talked publicly on the calls about the scalability of opening up a second campus in an existing market because you get to leverage your marketing dollars. So you'll probably see us look at some of our bigger metro markets as opportunities for additional campuses as well as some new markets.

I guess I want to touch on the health care side of the business. So I think, obviously, baked into the expansion strategy for opening new campuses -- is going to skilled trades campuses. Have you guys thought about at all on the health care side of opening any campuses? And could you just kind of remind us your footprint of how many of your campuses offer health care programs?

Sure. So when you look at the investor deck, you'll see on Gina's slide, where we have medical assisting, which we have at more campuses than licensed practical nursing. So today, we have licensed practical nursing in only 7 campuses they would be 3 campuses in New Jersey, 2 Connecticut and 1 Allentown, Pennsylvania. We -- sorry, we're 1 in Rhode Island. So maybe I miscounted somewhere but that should be 7. And then we have MA at those same campuses, but we also have medical assisting in East Windsor. We have it in Indianapolis. We have it in Chicago. We have it in Marietta, and as of now, I believe that's all the only places where we have it. So we're -- as Chad said, we're expanding our real heritage is automotive and skilled trades. That's also where we have, I think, the greatest advantage and also where we have the greatest brand recognition. Health care, though, as Gina and Jen said is also growing. I mean, there's a huge need out there in certain of our markets, especially in the Northeast, I think that we do have some competitive advantage and could see expanding our opportunity there and ensuring that those programs are the best that they can be. But as of right now, we're going to continue to invest more in the skilled trades in automotive because I think we just have a better competitive advantage there overall.

And maybe one other thing on that is when and if we get to a place that we decide we do want to expand some of the health care programs, even though we're opening up our campuses like Houston or like a Levittown or even the new [indiscernible], there's extra space in those campuses that we're not building out. So it just gives us the opportunity to either use it as additional space should any of our existing programs grow too big, or if we decide we want to put health care in. So we're not thinking it as like we would build separate health care campuses, we would just put the programs in existing campuses where we have space.

Anything else. If not, I appreciate everyone's time and interest for those that are here in Nashville, we are very excited to give you a tour, so you can see this facility, and I will be out in California at the ROTH Conference. I'll be attending, Brian and I had a number of other conferences over the next 60 days. So if you have more questions or want to meet us, please do so. Also, I encourage anyone to come visit any of our campuses. You can reach out to Brian or anyone else. We can set up a visit. I think if you see what we do and who we do it for and how we do it, you'll have a much richer appreciation both for who we are as well as I think what our opportunity is. So thank you all very much.