Lincoln Educational Services Corporation (LINC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.47 million, or $ 0.02 a share in the quarter, against a net profit of $2.58 million, or $0.11 a share in the last year period.

Revenue during the quarter dropped 7.83 percent to $49.80 million from $54.03 million in the previous year period. Gross margin for the quarter contracted 272 basis points over the previous year period to 51.01 percent. Total expenses were 97.91 percent of quarterly revenues, up from 89.13 percent for the same period last year. That has resulted in a contraction of 877 basis points in operating margin to 2.09 percent.

Operating income for the quarter was $1.04 million, compared with $5.87 million in the previous year period.

"Our financial performance through the first nine months of 2016 is slightly ahead of our expectations as we have managed our assets to maximize returns and lower our fixed costs, all the while striving to enhance the student experience," commented Scott Shaw, president and chief executive officer. "Our student population through the first nine months is slightly below where we want to be at year end, but we believe by implementing programs to retain students currently enrolled, bringing back previously enrolled students and encouraging graduating students to enroll in advanced degree programs Lincoln will be positioned to achieve this milestone objective."

The company has spent $0.64 million cash to meet investing activities during the nine month period as against cash outgo of $1.16 million in the last year period.

The company has spent $9.02 million cash to carry out financing activities during the nine month period as against cash inflow of $18.79 million in the last year period.