Aspen Group, Inc. · OTC:ASPU
Aspen — Investor Presentation (June 2019)
26 slides from Aspen's investor presentation, Jun 4, 2019
Slide 1: Investor Presentation June 2019
Investor Presentation June, 2019 Nasdaq : ASPU 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation and responses to various questions include forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding continued growth in nursing opportunities , expected increa
Slide 3: Aspen Group, Inc. education technology holding company
Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again . 3
Slide 4: Aspen Group, Inc. – History
Aspen Group, Inc. – History 2011 – 2012 2014 2017 2018 4 Michael Mathews appointed CEO of Aspen University; AGI is formed and begins trading on OTCQB (ASPU) Aspen University announces t he breakthrough Monthly Payment Plan (MPP) Aspen University grows its online post - licensure Nursing school from
Slide 5: Disruptive Business Model Making College Affordable with Outstanding Student Outcomes
5 Disruptive Business Model Making College Affordable with Outstanding Student Outcomes
Slide 6: ASPU's monthly payment plans are a revolutionary concept in for-profit education
ASPU’s monthly payment plans are a revolutionary concept in for - profit education 6 Degree Program Monthly Payment ($) # of Months (tuition)* Tuition ($) RN to BSN (AU, USU) 250 (AU) or 47 (USU) 9,750 (AU) or 11,700 (USU) MSN (AU, USU) 325 (AU) or /40 (USU) 11,700 (AU) or 12,350/13,000 (
Slide 7: 69% of ASPU's active students pay monthly, contractual value >$50mm
69% of ASPU’s active students pay monthly, for a total contractual v alue >$50mm 7 4,825 5,168 5,588 5,861 6,162 7,057 7,274 7,950 8,354 8,932 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 April '18 July '18 October '18 January '19 April '19 Total Monthly Payment Students Monthy Pay
Slide 8: Aspen's low cost of enrollment driven by in-house internet advertising
Aspen’s low cost of enrollment is driven by its in - house internet advertising and CRM system 8 The durability of this competitive advantage can be seen in the industry - leading conversion rate The traditional marketing approach of an online educator has been to purchase leads from third party pro
Slide 9: Student outcomes are key to our success
Student outcomes are key to our success 9 Upon completing their studies, % of alumni that responded they achieved the goals they had when they started the course or program 97% Student Satisfaction Compared to the national average of 60% of students who began a bachelor’s degree at a 4 - year instit
Slide 10: Targeting the High Growth Nursing Profession
Targeting the High Growth Nursing Profession 10
Slide 11: The aging population is fueling strong demand for nurses
The aging population is fueling strong demand for nurses 11 The Bureau of Labor Statistics (BLS) estimated in 2016 that the demand for RNs will grow by 15% over the next decade to ~3.4mm; this situation is exacerbated by the high percentage of RNs who are approaching retirement age (>30% over 50) A
Slide 12: Highly educated nurses are in demand – with salaries to match
Highly educated nurses are in demand – with salaries to match 12 Degree Avg. Salary*** Purpose # Students* Associate $67,463 Minimum qualification required to become an RN n/a Pre - Licensure BSN $77,249 Undergraduate degree for those with no experience 201,517 RN to BSN $77,249 Designed for RNs to
Slide 13: Higher salaries and demonstrated ROI incentivize higher graduation rates
Higher salaries and demonstrated ROI incentivize higher graduation rates 13 Degree Program Program Cost ($) Salary Uplift ($)* Payback ( yrs ) RN to BSN 9,750 9,786 1.00 MSN 11,700 16,260 0.72 DNP 18,900 21,577 0.88 MSN - FNP (USU) 27,000 27,361 0.98 These short payback periods demonstrate how by co
Slide 14: Nursing students represent 81% of ASPU's total student body
Nursing students represent 81% of ASPU’s total student body 14 4,807 4,863 5,466 5,718 6,164 6,500 6,590 7,107 7,393 7,784 431 582 740 868 1,049 557 684 843 961 1,148 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 April '18 July '18 October '18 January '19 April '19 AU and USU Active Studen
Slide 15: Two new nursing programs expanded TAM to more than $4bn
With the addition of two new nursing programs, ASPU dramatically expanded TAM to more than $4bn 15 Launched CCNE Accredited Degree Program Market Size ($) 2011 Q4 2013 2012 Q4 2014 Master of Science in Nursing (MSN) Bachelor of Science in Nursing (RN to BSN) 478mm 2017 In Progress Doctor of Nursing
Slide 16: Aspen University entered the >$3bn BSN Pre-Licensure campus business in July 2018
16 Aspen University entered the >$3bn BSN Pre - Licensure campus business in July 2018
Slide 17: Hybrid BSN P-L degree: affordable offering in a >$3bn market
By offering a hybrid BSN P - L degree, Aspen has created an affordable offering in a >$3bn market 17 The AACN has estimated that there are 190,000 qualified entry level nursing students in the United States annually; however, there is only capacity amongst US nursing schools to accept 70% of worthy
Slide 18: Hybrid BSN P-L Program Projected to Deliver $30,000+ LTV per Enrollment
Hybrid BSN P - L Program Projected to Deliver $30,000+ LTV per Enrollment 18 July 2018 cohort of 92 P - L students is projected to achieve a graduation rate in the same range or better than Aspen’s RN to BSN graduation rate of 76% Assuming each campus 3 - years out has 600 active students (400 2 - y
Slide 19: Ample opportunity to invest in business at attractive ROIs
Aspen has ample opportunity to invest in its business at very attractive ROIs 19 RN to BSN / MSN DNP MSN - FNP (USU) Revenue / Enrollment* 7,350 12,600 17,820 Marketing Cost / Enrollment* (1,361) (2,892) (1,619) Enrollment Advisor* Instructional Costs** Contribution Mar
Slide 20: Pre-announced fiscal Q4 results; 20% sequential growth
ASPU pre - announced fiscal Q4 results on 6/4/19; the company grew 20% sequentially and has returned to delivering positive Adjusted EBITDA 20 Sequential Financial Results Q3 FY’2019 Q4 FY’2019 Revenue $ 8.5 million $ 10.2 million Net (Loss)/Income $ (2.4) million $ (1.6) million EBITDA $ (1.7) mill
Slide 21: Proven Management Team
Proven Management Team 21 • Former CEO of Interclick ( Nasdaq : ICLK, 2007 - 2011), sold to Yahoo! in 2011 for $270mm • Former Operating Exec of CKS Partners ( Nasdaq : CKSG, 1994 - 1998), sold to USWeb in 1998 for $344mm Michael Mathews Dr. Cheri St . Arnauld Chairman & Chief Executive Officer • Fo
Slide 22: Equity Snapshot
Equity Snapshot 22 As of 5/31/19 Ticker on Nasdaq : ASPU Share Price: $4.00 52 Week Range: $3.75 - $ 8.20 Market Cap: $75 Million Shares Outstanding: 18.5 Million Mgmt & BOD Ownership:
Slide 23: Appendix
GROUP INC. Appendix 23
Slide 24: Q3 Fiscal Year 2019 Results
Q3 Fiscal Year 2019 Results 24 For the Quarter Ended January 31, 2019 Revenues $ 8,494,627 Operating expenses Cost of revenues 4,076,980 General and administrative 6,284,041 Depreciation and amortization 555,292 10,916,313 Operating loss from operations ( 2,421,686) Other income (expense): Other inc
Slide 25: Net (Loss)/Income, Adjusted EBITDA and EPS
Net (Loss)/Income, Adjusted EBITDA and EPS 25 Consolidated AGI AU USU Net (Loss)/Income $ (2,355,940) $ (1.83M) $ 0.39M $(.92M) Adjusted EBITDA $ (1,105,209) $ (1.45M) $ 0.87M $(0.52M) Net Loss Per Share ($0.13)
Slide 26: Net Loss to Adjusted EBITDA Reconciliation (Q3 FY'19)
Net Loss to Adjusted EBITDA Reconciliation ( Q3 FY’19) 26 Net Loss ($2,355,940) Interest Expense 74,248 Taxes _ Depreciation & Amortization 555,293 EBITDA (1,726,399) Bad Debt Expense 187,178 Stock - Based Compensation 350,838 Non - recurring Charges 83,174 Adjusted EBITDA (Loss) ($1,105,209)