Aspen Group, Inc. · OTC:ASPU
Aspen — Q1 FY2022 Earnings Presentation
19 slides from Aspen's earnings presentation, Sep 14, 2021
Slide 1: First Quarter Fiscal Year 2022 Earnings Slides
First Quarter Fiscal Year 2022 Earnings Slides CREATING VALUE BY Michael Mathews, Chairman & Chief Executive Officer Matt LaVay, Chief Financial Officer TRANSFORMING THE COLLEGE September 14, 2021 EDUCATION EXPERIENCE Nasdaq: ASPU
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 our expectations regarding bookings, Lifetime Value and cost
Slide 3: First Quarter Fiscal 2022 Operating Metrics
Aspen Group Inc. First Quarter Fiscal 2022 Operating Metrics
Slide 4: First Quarter Fiscal Year 2022 Summary
FIRST QUARTER FISCAL YEAR 2022 SUMMARY (All comparisons are Q1 FY’22 versus Q1 FY’21) • First quarter revenue increased 28% to $19.4 million • 55% of consolidated revenue attributable to AU’s BSN Pre-licensure unit and USU (primarily MSN-FNP students) • Year-over-Year Enrollments and Bookings growth
Slide 5: Q1 FY'22 Enrollment and Bookings Impacted by Strategic Marketing Spend Reduction
Q1 FY’22 Enrollment and Bookings Impacted by Strategic Marketing Spend Reduction • New student enrollments increased sequentially from 2,182 to 2,276 or 4%. On a year-over-year basis, new Q1 FY’22 Y-O-Y Q1 FY’22 Y-O-Y student enrollments for the Enrollment Bookings* Company were down 3% 2,351 (in mi
Slide 6: Q1 FY'22 Gross Profit Reflects New Campus Launches
Q1 FY’22 Gross Profit Reflects New Campus Launches • Q1 FY’22 Gross margin of 54% versus 59% represents higher instructional and marketing Revenue & Gross Profit Y-O-Y Compare costs for recently launched PL campuses (in millions) • BSN-PL and USU revenue contributed 55% of revenue in Q1 FY’22 $19.4
Slide 7: G&A Returns to Prior Year Levels in Q1 FY'22
G&A Returns to Prior Year Levels in Q1 FY’22 with Five Operational BSN-PL Campuses • G&A decreased to 56% of revenue, down from Q1 FY22 Y-O-Y G&A and Revenue Comparison 58%, as a result of execution of cost controls (in millions) associated with the Aspen 2.0 business plan $19.4 • Anticipate achievi
Slide 8: AGI Active Student Body Grew 14% to 13,879
AGI Active Student Body Grew 14% to 13,879;Nursing Students Represent 87% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 11,117 10,911 10,779 10,863 9,975 9,197 9,410 9,269 9,101 8,377 2,636 2,769 2,789 2,968 2,341 2,459 2,439 2,544 2,045 2,153 July '20 Oct
Slide 9: Aspen 2.0 Business Plan
Aspen 2.0 Business Plan
Slide 10: Aspen 2.0 Business Plan Designed to Deliver Maximum Efficiency
Aspen 2.0 Business Plan Designed to Deliver Maximum Efficiency Highest Efficiency Businesses ~$5 ~$12 ~$60 ~$10 REVENUE EARNED PER MARKETING DOLLAR SPENT LTV $7,350 LTV $17,820 LTV $30,000 LTV $30,000 COE $1,400 COE $1,500 COE $500 COE $3,0002 LIFETIME VALUE AND PROJECTED COST OF ENROLLMENT 1 BSN BS
Slide 11: Focused Growth Spending and Managing New Investments
Focused Growth Spending and Managing New Investments Focus “growth spend” on highest efficiency businesses, as defined by return on marketing dollar spent • Decrease marketing spend on lowest efficiency unit and in Phoenix BSN-PL market: • Aspen University legacy online unit (excluding Doctoral) • F
Slide 12: First Quarter Fiscal Year 2022 Financial Results Tables
First Quarter Fiscal Year 2022 Financial Results Tables
Slide 13: Income Statement
Income Statement Three Months Ended July 31, 2021 2020 Revenue $ 19,430,995 $ 15,165,562 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 8,593,568 5,847,523 General and administrative 10,946,477 8,793,756 Bad debt expense 350,000 400,000 Deprec
Slide 14: Net Loss to EBITDA and Adjusted EBITDA Reconciliation
Net Loss to EBITDA and Adjusted EBITDA Reconciliation Three Months Ended July 31, 2021 2020 Net loss $ (870,888) $ (943,196) Interest expense, net 32,132 455,223 Taxes 151,010 (1,900) Depreciation and amortization 779,409 490,624 EBITDA 91,663 751 Bad debt expense 350,000 400,000 Stock-based compens
Slide 15: Reconciliation Of Net Income (Loss) To EBITDA And Adjusted EBITDA By Business Unit
Reconciliation Of Net Income (Loss) To EBITDA And Adjusted EBITDA By Business Unit Three Months Ended July 31, 2021 Aspen BSN Consolidated AGI Corporate Pre-Licensure AU Online AU Total USU Net income (loss) $ (870,888) $ (4,458,536) $ 889,460 $ 1,444,997 $ 2,334,457 $ 1,253,191 Interest expense, ne
Slide 16: Balance Sheet (Assets)
Balance Sheet (Assets) July 31, 2021 April 30, 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 6,554,423 $ 8,513,290 Restricted cash 3,722,831 5,152,789 Accounts receivable, net of allowance of $3,272,977 and $3,289,816, respectively 17,190,238 16,724,744 Prepaid expenses 914,216
Slide 17: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity) July 31, 2021 April 30, 2021 (Unaudited) Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,627,731 $ 1,466,488 Accrued expenses 2,361,271 2,040,896 Deferred revenue 4,691,087 6,825,014 Due to students 2,905,192 2,747,4
Slide 18: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue) Three Months Ended July 31, 2021 Consolidated AU USU Revenue $19,430,995 $13,249,652 $6,181,343 Percentage of Revenue Consolidated AU USU Instructional costs 23% 23% 24% Marketing costs 21% 21% 16% General and Administrative expenses 56% 34% 39% Depreciation a
Slide 19: First Quarter Fiscal Year 2022 Earnings Slides
First Quarter Fiscal Year 2022 Earnings Slides CREATING VALUE BY IR Contact: Kim Rogers TRANSFORMING THE COLLEGE Hayden IR EDUCATION EXPERIENCE kim@haydenir.com 385-831-7337