Aspen Group, Inc. · OTC:ASPU
Aspen — Q3 FY2022 Earnings Presentation
14 slides from Aspen's earnings presentation, Mar 15, 2022
Slide 1: Third Quarter Fiscal Year 2022 Earnings Slides
Third Quarter Fiscal Year 2022 Earnings Slides CREATING VALUE BY Michael Mathews, Chairman & Chief Executive Officer TRANSFORMING THE COLLEGE Matt LaVay, Chief Financial Officer March 15, 2022 EDUCATION EXPERIENCE Nasdaq: ASPU
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation and responses to various questions including the nursing shortage, our 2022 guidance, our liquidity and estimate as to when we will turn cash flow positive, the impact of COVID-19 on our business including our RN to BSN program, our opera
Slide 3: Third Quarter Fiscal Year 2022 Highlights
THIRD QUARTER FISCAL YEAR 2022 HIGHLIGHTS (All comparisons are Q3 FY’22 versus Q3 FY’21) REVENUE GROSS PROFIT NET LOSS UP UP $0.9M $18.9M 14% $9.2M 6% $(3.7)M RE V E N U E S GR O S S P R O F I T NE T L O S S • Two highest LTV business • Disciplined cost controls • Increase in net loss units represen
Slide 4: New Financing Satisfies Long-Term Capital Needs
New Financing Satisfies Long-Term Capital Needs Closed $30 million private debt financing, comprised of a $10 million convertible note and a $20 million revolving credit facility on March 14, 2022. $10M Convertible Note (funded at closing on March 14th): Interest Rate: 12% per annum Maturity Date: C
Slide 5: Q3 FY'22 Enrollment and Bookings Impacted by Omicron Variant
Q3 FY’22 Enrollment and Bookings Impacted by Omicron Variant on Working RN Students and FNP Prospects Q3 FY’22 Y-O-Y Q3 FY’22 Y-O-Y Factors impacting Q3 FY’22 Bookings* Enrollment Enrollment & Bookings (in millions) • Strategic decrease in $33.0 2,129 marketing spend in phoenix pre-licensure metro $
Slide 6: Q3 FY'22 Revenue and Gross Profit
Q3 FY’22 Revenue and Gross Profit Revenue Y-O-Y Compare Gross Profit Y-O-Y Compare (in millions) (in millions) REVENUE $18.9 +14% $16.6 Two $5.9 $4.8 highest LTV GROSS $8.7 $9.2 programs PROFIT +6% account for $11.9 $13.0 56% of revenue Q3 FY'21 AU USU Q3 FY'22 Q3 FY'21 Q3 FY'22 Investment in higher
Slide 7: G&A Decreased as % of Revenue in Q3 FY'22
G&A Decreased as % of Revenue in Q3 FY’22; Achieved With Pre-Licensure Campus Expansion to total of Five States Q3 FY22 Y-O-Y G&A and Revenue Comparison (in millions) $18.9 • G&A was 62% of revenue due to cost controls $16.6 associated with the Aspen 2.0 business plan • Anticipate achieving operatio
Slide 8: AGI Active Student Body Grew 2% to 13,724
AGI Active Student Body Grew 2% to 13,724; Nursing Students Represent 87% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 11,117 10,911 11,184 10,863 10,736 9,410 9,269 9,531 9,197 9,116 2,636 2,769 2,789 2,968 2,911 3,134 2,773 2,988 2,439 2,544 January '21
Slide 9: Income Statement
Income Statement Three Months Ended January 31, Nine Months Ended January 31, 2022 2021 2022 2021 Revenue $ 18,944,798 $ 16,624,837 $ 57,316,004 $ 48,761,444 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 9,275,419 7,559,951 26,658,188 20,732,
Slide 10: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary Three Months Ended January 31, 2022 Consolidated AGI Corporate AU USU Net income (loss) $ (3,733,997) $ (5,020,149) $ 941,437 $ 344,715 Interest expense, net 180,642 180,682 — (40) Taxes 231,610 951 230,660 (1) Depreciat
Slide 11: Balance Sheet (Assets)
Balance Sheet (Assets) January 31, 2022 April 30, 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 5,969,286 $ 12,472,082 Restricted cash 1,433,397 1,193,997 Accounts receivable, net of allowance of $3,381,204 and $3,289,816, respectively 19,635,715 16,724,744 Prepaid expenses 1,3
Slide 12: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity) January 31, 2022 April 30, 2021 (Unaudited) Liabilities and Stockholders’ Equity Liabilities: Current liabilities: Accounts payable $ 1,806,656 $ 1,466,488 Accrued expenses 2,079,249 2,040,896 Deferred revenue 6,182,781 6,825,014 Due to students 3
Slide 13: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue) Three Months Ended January 31, 2022 Consolidated AU USU Revenue $18,944,798 $13,027,338 $5,917,460 Percentage of Revenue Consolidated AU USU Instructional costs 26% 25% 28% Marketing costs 23% 22% 20% General and Administrative expenses 62% 36% 43% Depreciatio
Slide 14: Third Quarter Fiscal Year 2022 Earnings Slides
Third 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