Legacy Education Inc. · AMEX:LGCY
Legacy Education — IPO Roadshow (September 2024)
27 slides from Legacy Education's IPO roadshow presentation, Sep 10, 2024
Slide 1: Investor Presentation September 2024
Filed pursuant to Rule 433 of the Securities Act, as amended Issuer Free Writing Prospectus dated September 10, 2024 Relating to the Preliminary Prospectus dated September 10, 2024 Registration Statement File No. 333 – 281586 INVESTOR PRESENTATION September 2024 9/9/2024 1 ECM 24-45
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS ____ This presentation contains forward-looking statements that involve substantial risk and uncertainties. All statements, other than statements of historical facts contained in this presentation, including statements regarding Legacy Education Inc.'s (the "Company's"or "
Slide 3: Proposed Offering
PROPOSED OFFERING ____ Issuer Legacy Education Inc. Ticker / Exchange LGCY (NYSE American) Offering Type Initial Public Offering Securities Issued Common Stock Diluted Shares Outstanding (1) ~10.6M Offering Size (1,2) 1,666,667 Shares ($10.0M) Over-allotment (1,2) 250,000 Shares (15%) ($1.5M) Price
Slide 4: Legacy at a Glance
LEGACY AT A GLANCE 2009 2,166 29 266 LEGACY EDUCATION is an award-winning, Founded Student Enrollment Programs Offered Employees nationally accredited, for-profit post- secondary education company › Owns & operates nationally accredited academic institutions which are affordable $46.1M $5.9M $24k $2
Slide 5: 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 – d
Slide 6: U.S. Healthcare Labor Market
U.S. HEALTHCARE LABOR MARKET ____ Healthcare & Social Assistance Job Openings › The U.S. is facing a shortage of healthcare professionals driven by increased demand for 2.5M Openings Hires healthcare services › Growth drivers for the U.S. healthcare labor market include: 2.0M › Expanding aging popul
Slide 7: Legacy Timeline
LEGACY TIMELINE ____ 2024 10+ Years of Growth and Accolades 2023 Added 25,000 SF for CCC › California Association of Private Post Secondary School Excellence in Community Added Campus HDMC new curriculum Directors of Education, approval for the new Service Award – 2020, 2022 & 2023 Directors of Nurs
Slide 8: 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 BRING OPPORTUNITY TO FOR-PROFIT EDUCATION EDUCATION › Programs designed around high ROI for students (affordabl
Slide 9: Geographic Footprint
GEOGRAPHIC FOOTPRINT ____ ENROLLMENT GROWTH BY COLLEGE Ending Enrollment 5 2,166 23% Campuses Students 3 Year Enrollment CAGR 3 Year CAGR 23% 2,166 2,187 (3/31/24) 1,705 1,588 1,264 Bakersfield, CA Lancaster, CA 907 Temecula, CA Salinas, CA College FY20A FY21A FY22A FY23A 3/31/24 6/30/24E (1) Pasade
Slide 10: Last Two Years Quarterly Enrollment
LAST TWO YEARS QUARTERLY ENROLLMENT ____ Quarterly Starts Ending Enrollment 2,500 60% 627 50% 2,166 2,187 2,000 570 2,024 1,912 500 504 1,799 40% 1,727 1,705 1,500 1,648 391 30% 337 1,000 273 20% 500 10% % Change YoY 25% 23% 13% % Change YoY 17% 16% 20% 28% 0 0% (2) Q1A Q2A Q3A Q4A Q1A Q2A Q3A Q1A Q
Slide 11: 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% Placement Rate by Campus NCLEX Pass Vet Tech Pass 78% Avg Placement Rate (3) Rates (1,2) Rates (2) 85% 86% 78% 76% 77%
Slide 12: Target Student
TARGET STUDENT ____ STUDENT PROFILE Education Level High School Diploma or G.E.D. Over 50% of our student enrollment is Targeting students within 25-mile radius to each campus 24 years of age and younger Geography (changing with availability of online programs) Desired Outcome Students looking for b
Slide 13: 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,
Slide 14: Our Path to Growth
OUR PATH TO GROWTH ____ Organic growth within existing footprint 1 Current programs and cross program integration and acquire students at a positive ROI New program development 2 Create adjacent programs (increase re-enrollment) and new fields of study to increase enrollments with minimal cannibaliz
Slide 15: Core Markets
ORGANIC GROWTH WITHIN EXISTING FOOTPRINT CORE MARKETS ____ Healthcare Veterinary Dental 19 Programs 4 Programs 6 Programs › ~ 90% of Legacy’s current enrollment (1) › Continuous improvement in › Expansion of dental assistant VTNE pass rates program at CCC › Accredited programs launched since 2023: ›
Slide 16: 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 29 Total Programs Offered 1 MRI 1 Accounting 1 Phlebotomy 2 Veterinary 4 Med. Billing & Coding 2 Dental 6 Pharmacy 1 Medical Assisting 5
Slide 17: Top Program Mix
ORGANIC GROWTH WITHIN EXISTING FOOTPRINT TOP PROGRAM MIX ____ Ultrasound Cardiac Sonography Ultrasound Medical Assisting Vocational Nursing Technician AAS AAS Technician 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
Slide 18: 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 students require further professional credentialing › Students can build lasting trust with the same educational i
Slide 19: Track Record of Successful Campus Acquisitions
NEW CAMPUSES (BUY VS BUILD) TRACK RECORD OF SUCCESSFUL CAMPUS ACQUISITIONS ____ M&A TRACK RECORD LEGACY EDUCATION M&A PLAYBOOK Target Qualitative Transaction Rationale Single campus or multi-campus for-profit 1 › 35-year single owners with repeated highest grants of postsecondary education operators
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’S IDL
Slide 21: National Accreditation
NATIONAL ACCREDITATION ____ Legacy Education recently earned the highest grant of accreditation – Nationally Recognized 5-year certificate of accreditation through ACCET (1) Accrediting Agencies ACCET National › ACCET 5-year renewal grant April 2024 – Highest grant achievable Accreditation › ACCET 5
Slide 22: Financial Overview
FINANCIAL OVERVIEW 22 ECM 24-45
Slide 23: Financial and KPI Overview
FINANCIAL AND KPI OVERVIEW ____ as of March 31, 2024 › STUDENT GROWTH – ending enrollment of 2,166 through 3/31/24 (20% YoY growth) and anticipated to reach 2,187 (1) by end of FY 2024 (28% YoY growth) › REVENUE – $35.5M in FY 2023 and is anticipated to grow to approximately $45.7M - $46.5M (1) in F
Slide 24: Financial Performance
FINANCIAL PERFORMANCE ____ Revenue Operating Income Approximately $45.7M - $46.5M $35.5M $33.2M $30.7M Approximately $5.4M - $6.3M $25.9M $5.4M $3.6M $3.2M $2.5M (1) (1,2) FY22A FY23A FY24E 9ME 3/31/23 9ME 3/31/24 FY22A FY23A FY24E 9ME 3/31/23 9ME 3/31/24 (1) Based on our preliminary and estimated u
Slide 25: Operating Results
OPERATING RESULTS ____ Unaudited ($ in millions) FY 2022A FY 2023A 9ME 03/31/23 9ME 03/31/24 Major Impact(s) FY 2024E (1) New Students Revenue $30.7 $35.5 $25.9 $33.2 $45.7 - $46.5 New Programs Starts 1,703 1,668 1,277 1,534 Operating Expenses ($ and % of Revenues) Leverage Existing Educational Serv
Slide 26: Balance Sheet Summary and Capitalization
BALANCE SHEET SUMMARY AND CAPITALIZATION ____ as of March 31, 2024 (1) Capitalization ($ in thousands) Cash & Cash Equivalents $11,411.5 Current Portion of Debt $580.9 18.6M 19.4M Diluted Weighted Common Shares Debt Owed – Related Party $50.0 Average Shares Outstanding (1) Outstanding (1,3) Debt, Ne
Slide 27: 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 27 ECM 24-45