Lincoln Educational to shut seven campuses

Thu Aug 2, 2012 7:12am EDT

Aug 2 (Reuters) - Lincoln Educational Services Corp said it plans to shut seven colleges that were hurting its ability to comply with new regulations, and cut its full-year outlook.

The for-profit education company expects to post a net loss of $1.24 to $1.30 per share for 2012, including charges related to campus closures and goodwill impairment. It had earlier expected a profit of 25 cents to 40 cents per share.

The company expects revenue of $420 million to $430 million, down from its prior forecast of $440 million to $460 million.

Lincoln reported a narrower-than-expected quarterly loss for the second quarter and said new student sign-ups rose 18.4 percent.

The campus closures will add 21 cents per share to earnings in 2013, Lincoln said.

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