Legacy Education Inc. · AMEX:LGCY
Legacy Education — Investor Presentation (December 2024)
28 slides from Legacy Education's investor presentation, December 2024
Slide 1: Investor Presentation
Investor Presentation December 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of words “could,” “believe,” “anticipate,” “intend,” “estimate,” “
Slide 3: Legacy Education At A Glance
Legacy Education At A Glance Legacy Education is an award-winning, nationally accredited, for-profit post- secondary education company • Owns & operates nationally accredited academic institutions which are affordable • Focused on programs in growing industries including allied healthcare (1) with a
Slide 4: Investment Highlights
Investment Highlights Changing Market Dynamics Within Post-Secondary Education Landscape Yields Opportunity Documented problems (cost, scalability, program design, COVID-19 pandemic) threaten traditional post-secondary education model Legacy Education to leverage programs and delivery model – drivin
Slide 5: U.S. Healthcare Labor Market
U.S. Healthcare Labor Market Healthcare & Social Assistance Job Openings The U.S. is facing a shortage of healthcare Openings Hires professionals driven by increased demand for 2.5M healthcare services Growth drivers for the U.S. healthcare labor 2.0M market include: • Expanding aging population 1.7
Slide 6: Legacy Education Timeline
Legacy Education Timeline 2023 Added Campus Directors of Education, Directors of Nursing & Dean of Imaging 15+ Years of Growth and Accolades Launched New Accredited Programs: California Association of Private Post Secondary School Excellence in Community Service Award – 2020, 2022, 2023 & 2024 Certi
Slide 7: Changing Post-Secondary Landscape
Changing Post-Secondary Landscape Legacy Education has Developed the Programs and Deployment Models to Effectively Capitalize on Changing Market Dynamics Challenges for Post-Secondary Education Bring Opportunity to For-Profit Education Rising tuitions (outpacing inflation and wage growth) Programs d
Slide 8: Geographic Footprint
Geographic Footprint Enrollment Growth by College (1) Ending Enrollment 5 2,539 25% Pro-Forma enrollment +3,000 Campuses Current Students 4 Year Enrollment CAGR (09/30/24) 2,539 2,187 Bakersfield, CA Lancaster, CA 1,705 1,588 Temecula, CA 1,264 907 Salinas, CA College FY20A FY21A FY22A FY23A FY24A 0
Slide 9: Quarterly Enrollment Since 2023
Quarterly Enrollment Since 2023 Quarterly Starts Ending Enrollment 3,00 60% 773 2,50 50% 2,539 627 2,00 2,166 2,187 40% 2,024 570 1,912 1,799 500 504 497 1,727 1,705 30% 1, 500 1,648 391 337 1, 00 0 20% 273 50 0 10% % Change 25% 23% 13% 27% 23% % Change 17% 16% 20% 28% 25% YoY YoY 0 0% Q1A Q2A Q3A Q
Slide 10: Successful Student Outcomes
Successful Student Outcomes Preparing students for a competitive workforce with functional and soft skills to be successful Exceeding Academic and Student Outcomes 79% 64% NCLEX Pass Vet Tech Pass Placement Rate by Campus Rates Rates 78% Avg Placement Rate (1) 85% 76% 77% 75% 73% 86% 78% Avg Program
Slide 11: Student Profile
||||||||||||| Education Level High School Diploma or G.E.D. Geography Targeting students within 25-mile radius to each campus (changing with availability of online programs) Desired Outcome Student Profile Students looking for better career opportunities Entrance Exam Over 50% Wonderlic Scholastic L
Slide 12: Management Team
Management Team LeeAnn Rohmann | Chief Executive Officer & Founder, Legacy Education Ms. Rohmann has served our Chief Executive Officer since July 2010 and Chairman of our board of directors since October 2009. From 2004 until 2008, she served as Chief Sales Officer, Student Loan Xpress at CIT, a na
Slide 13: Our Path to Growth
Our Path to Growth 1 Organic growth within existing footprint Current programs and cross program integration and acquire students at a positive ROI 2 New program development Create adjacent programs (increase re-enrollment) and new fields of study to increase enrollments with minimal cannibalization
Slide 14: Core Markets
Organic Growth Within Existing Footprint Core Markets Healthcare Veterinary Dental 22 Programs (1) 4 Programs 7 Programs ~ 90% of Legacy Education’s current enrollment (2) Continuous improvement in Expansion of dental assistant VTNE pass rates program at CCC Accredited programs launched since 2023:
Slide 15: Diverse & Growing Set of Programs
Organic Growth Within Existing Footprint Diverse & Growing Set of Programs Program Offering Timeline Current Program Offering Per College Cannabis Dispensary 33 Total Programs Offered (1) 1 MRI 1 Accounting 1 Phlebotomy 2 Veterinary 4 Med. Billing & Coding 2 Dental 7 Pharmacy 2 Sterile Processing /
Slide 16: Top Program Mix
Organic Growth Within Existing Footprint Top Program Mix Ultrasound Technician Medical Cardiac Sonography Vocational Ultrasound Technician AAS Assisting AAS Nursing Program Duration 108 – 123 weeks 34 – 42 weeks 115 – 130 weeks 84 – 99 weeks 56 – 68 weeks Quarterly Revenue ~$6.6k ~$6.5k ~$6.3k ~$7.4
Slide 17: Programs Designed for Re-Enrollment
New Program Development Programs Designed for Re-Enrollment Legacy Education is committed to students across their learning journey offering programs that build on one another as studen ts require further professional credentialing Students can build lasting trust with the same educational instituti
Slide 18: Track Record of Successful Campus Acquisitions
New Campuses (Buy vs Build) Track Record of Successful Campus Acquisitions ||||||||||||||| Legacy Education M&A Playbook Target Qualitative Transaction Rationale Single campus or multi-campus for-profit 35-year single owners with repeated highest grants of 1 accreditation postsecondary education ope
Slide 19: Contra Costa Transaction Summary
Contra Costa Transaction Summary Legacy Education announced an $8M asset purchase agreement with Contra Costa Medical Career College (“Contra Costa”) Transaction Overview Contra Costa is a private vocational training school in Antioch CA (east of the Bay Area) Contra Costa was founded in 2007 and sp
Slide 20: Interactive Distance Learning (“IDL”) Experience
Interactive Distance Learning (“IDL”) Experience Legacy Education partners with several Educational Industry Content Specialists to deliver a seamless Interactive Distance Learning Experience with the most advanced educational tools available today for its curriculums. Benefits of Legacy Education’s
Slide 21: National Accreditation
National Accreditation Legacy Education recently earned the highest grant of accreditation – 5-year certificate of accreditation through ACCET (1) Nationally Recognized ACCET National ACCET 5-year renewal grant April 2024 – Highest grant Accrediting Agencies achievable Accreditation ACCET 5-year ren
Slide 22: Financial Overview
Financial Overview 22 22 ECM 24-45
Slide 23: Financial & KPI Overview
Financial & KPI Overview as of September 30, 2024 STUDENT GROWTH – ending enrollment of 2,539 through 9/30/24 (25% YoY growth) REVENUE – $49.6M over LTM (33% YoY growth); surpassing prior 3-year sales CAGR of 25% from FY21A through FY24A PROFITABILITY – leveraging scale and IDL efficiencies to drive
Slide 24: Financial Performance
Financial Performance Revenue Adjusted EBITDA (1) $46.0M $35.5M $30.7M $8.4M $14.0M $3.8M $10.4M $3.5M $2.8M $1.4M FY22A FY23A FY24A 3ME 09/30/23 3ME 09/30/24 FY22A FY23A FY24A 3ME 09/30/23 3ME 09/30/24 (1) See sl ide 27 for full re conciliation from Net Income to Adjusted E BITDA 24
Slide 25: Quarterly Performance in Review
Quarterly Performance in Review Q1 FY25 Operating YoY Change Results (%) Starts 773 23% Ending Enrollment 2,539 25% Revenue $14.0M 35% Positive momentum across numerous financial KPIs and Educational Service Costs 51% 4% leading indicators (% of net Tuition) Student Acquisition Cost (marketing spend
Slide 26: Capitalization & Liquidity Summary
Capitalization & Liquidity Summary as of September 30, 2024 Highlights Capital Structure During Q1 2025, Legacy Education generated $3.2M in net cash from operating activities and recorded $8.2M in net proceeds from the IPO (net Diluted Common Shares Outstanding (1) 13.1M of fees and expenses) Share
Slide 27: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as earnings 3ME 3ME (loss) from operations less depreciation FY 22A FY 23A FY 24A ( $ in thousands) 09/30/23 09/30/24 and amortization, share based compensations, transaction costs, and Net Income $2,337 $2,667 $5,115 $1,070 $2,091 o
Slide 28: Contact
Contact LeeAnn Rohmann – CEO & Founder Email: lrohmann@legacyed.com Phone: (661) 940-9300 Amato and Partners, LLC Investor Relations Counsel 100 Park Avenue, 16th Floor New York, NY 10017 admin@amatoandpartners.com 28
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