Aspen Group, Inc. · OTC:ASPU
Aspen — Q2 FY2023 Earnings Presentation
17 slides from Aspen's earnings presentation, Dec 13, 2022
Slide 1: Second Quarter Fiscal Year 2023 Earnings Slides
Second Quarter Fiscal Year 2023 Earnings Slides CREATING VALUE BY Michael Mathews, Chairman & Chief Executive Officer TRANSFORMING THE COLLEGE Matt LaVay, Chief Financial Officer December 13, 2022 EDUCATION EXPERIENCE Nasdaq: ASPU
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation and responses to various questions, including our restructuring initiatives including efforts to reduce expenditures and the anticipated results and benefits of these efforts, our ability to generate positive operating cash flow in the se
Slide 3: Second Quarter Fiscal Year 2023 Highlights
SECOND QUARTER FISCAL YEAR 2023 HIGHLIGHTS (All comparisons are Q2 FY’23 versus Q2 FY’22) REVENUE GROSS PROFIT NET LOSS $559K $17.1M (10%) $10.2M 6% $(2.3)M RE V E N U E GR O S S P R O F I T NE T L O S S • AU revenue impacted by • Gross margin rose 900 • Higher gross profit enrollment stoppage in BS
Slide 4: Q2 FY'23 Profitability by Operating Segment
Q2 FY’23 Profitability by Operating Segment ($ in millions) Aspen University USU $2.3 $2.1 $2.1 $1.8 $1.3 $1.1 $1.1 $0.9 Net income Adjusted EBITDA Net income Adjusted EBITDA Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 AU Adjusted EBITDA YOY decline attributed to: USU Adjusted EBITDA YOY increased: • Decrease i
Slide 5: Cash Balance as of October 31, 2022
Cash Balance as of October 31, 2022 ($ in millions) The business generated POSITIVE cash from operations of $1M in Q2 FY23 Cash Balance The shift from operations using cash of $3.6 million in Q1 FY23 to being a source of cash in Q2 FY23 $2.4 $2.3 was the result of: 1. Lower discretionary spending on
Slide 6: Restructuring Impact on FY 2023 Expenses
Restructuring Impact on FY 2023 Expenses Focus on maintaining positive operating cash flow for the remainder of FY2023 Marketing Restructuring Savings (in millions) • Marketing ad spend reduced to maintenance spend levels of $150,000 per quarter $3.7 $3.8 • Realized savings of $3.7 million in Q2 and
Slide 7: Q2 FY'23 Enrollment and Bookings Overview
Q2 FY’23 Enrollment and Bookings Overview Q2 FY’23 Y-O-Y Q2 FY’23 Y-O-Y Bookings* Enrollment (in millions) 2,380 $37.4 Student enrollments have been impacted by 1,750 1. Enrollment stoppage at AU $26.1 pre-licensure campuses 1,290 2. Reduction in marketing $17.5 spend by $3.1 million over 784 the pr
Slide 8: Q2 FY'23 Revenue and Gross Profit
Q2 FY’23 Revenue and Gross Profit Subsidiary Revenue Y-O-Y Compare AGI GAAP Gross Profit Y-O-Y Compare (in millions) (in millions) $18.9 $17.1 * $6.2 $9.7 $10.2 $6.7 $12.8 $10.3 Q2 FY'22 AU USU Q2 FY'23 Q2 FY'22 Q2 FY'23 The decline in AU revenue was partially offset Gross profit increase related to
Slide 9: G&A Controls Reduced Costs in Q2 FY'23
G&A Controls Reduced Costs in Q2 FY’23; G&A Reductions from Restructuring to Continue in 2H FY’23 Q2 FY’23 Y-O-Y G&A and Revenue Comparison (in millions) $18.9 Y-O-Y G&A declined on a dollar basis but $17.1 increased as a percent of revenue on lower revenue in Q2 FY’23 • Year-over-year G&A decreased
Slide 10: AGI Active Student Body Declined 23% to 10,957
AGI Active Student Body Declined 23% to 10,957; Nursing Students Still Represent 86% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 11,184 10,736 10,225 9,531 9,116 9,133 8,632 7,973 7,686 6,640 2,911 3,134 2,773 2,988 2,890 3,109 2,708 2,915 2,752 2,984 Oct
Slide 11: Appendix
APPENDIX
Slide 12: Income Statement
Income Statement Revenue Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) General and administrative Bad debt expense Depreciation and amortization Total operating expenses Operating loss Other income (expense): Interest expense Other income (ex
Slide 13: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary
Slide 14: Balance Sheet (Assets)
Balance Sheet (Assets) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net of allowance of $3,587,840 and $3,460,288, respectively Prepaid expenses, Other current assets Total current assets Property and equipment: Computer equipment and hardware Furniture and f
Slide 15: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity)
Slide 16: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue) Three Months Ended October 31, 2022 Consolidated AU USU Revenue $ 17,074,547 $ 10,341,903 $ 6,732,644 Percentage of Revenue: Instructional Costs 32% 34% 29% Marketing Costs 5% 2% 3% Depreciation and Amortization 5% 7% 2% GAAP Gross Profit 60% 60% 67% General a
Slide 17: Second Quarter Fiscal Year 2023 Earnings Slides
Second Quarter Fiscal Year 2023 Earnings Slides CREATING VALUE BY IR Contact: Kim Rogers TRANSFORMING THE COLLEGE Hayden IR EDUCATION EXPERIENCE kim@haydenir.com 385-831-7337