Aspen Group, Inc. · OTC:ASPU
Aspen — Taglich Conference 2017
16 slides from Aspen's conference presentation, May 2, 2017
Slide 1: Taglich Conference – Aspen Group, Inc.
Taglich ConferenceMay 2, 2017 OTCQB: ASPUwww.aspen.edu ASPEN GROUP, INC.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation and responses to various questions include forward-looking statements including statements regarding our opportunities and expectations from the nursing education sector, the future federal regulatory impact on Aspen, the impact of our in
Slide 3: Aspen University Disrupting the Online For-Profit Education Sector
ASPEN UNIVERSITY DISRUPTING THE ONLINE FOR-PROFIT EDUCATION SECTOR 2 “Pay-As-You-Go”Monthly Payment Plans Targeting the High-GrowthNursing Sector Ability to Deliver Sub-$1,000 Enrollments at Scale Aspen Among the Fasting GrowingUniversities in U.S.
Slide 4: First University Ever to Vertically Integrate Marketing
ASPEN FIRST UNIVERSITY EVER TO VERTICALLY INTEGRATE MARKETING 3 Best-in-class customer acquisitionManagement’s expertise in Internet advertising and lead generation allowed Aspen to bring all marketing in-houseDo not utilize third-party lead gen firmsAll Aspen branded adsDirect publisher relationshi
Slide 5: Aspen University's Monthly Payment Business Model
ASPEN UNIVERSITY’S MONTHLY PAYMENT BUSINESS MODEL 4 Aspen University offers world class online education at half the cost of its competitors; committed to cash-based, pay-as-you-go education“Let’s Change Higher Education Forever” Students can pay $325/month for a Master’s degree = $11,700 (36 monthl
Slide 6: Monthly Payment Methods Now the Majority Payment Type
MONTHLY PAYMENT METHODS NOWTHE MAJORITY PAYMENT TYPE 5 Recurring Monthly Tuition Billing Now Exceeds $650,0002,575 degree-seeking students enrolled in a monthly payment method (as of 1/31/17)Total value of monthly payment plan contracts exceeds $16.5 million (as of 10/31/16) Tuition Revenues by Paym
Slide 7: Unit Economics Among Best in Sector
UNIT ECONOMICS AMONG BEST IN SECTOR 6 Low customer acquisition costs and variable teaching costs create highly attractive unit economics – projecting 68%+ Gross Margins (70%+ Adjusted Gross Margins*) at scaleAverage course completions per student enrollment is 8 = $7,000** revenue (average $800 tuit
Slide 8: The Nursing Dilemma
THE NURSING DILEMMA 7 Critical Nursing shortage projected next decade (260,000 RN shortage by 2025)More than 1 million RNs will reach retirement age within next 10-15 years (average age of RNs is 47 years old); 525,000 replacement Nurses expected, bringing the job openings growth to 1.05mm by 2022Nu
Slide 9: Aspen Capturing ~2% of BSN Completion Starts
ASPEN CAPTURING ~2% OF BSN COMPLETION STARTS WSJ Article, March 6, 2016 Approximately 140K students currently enrolled in BSN Completion programs; or approx. 50,000 new enrolls/year
Slide 10: Student Body Analysis
STUDENT BODY ANALYSIS School of Nursing Now 71% of Active Student Body 4,500 4,085 4,000 3,726 3,500 3,252 300 2932 2,899 2,708 2538 0 2,148 o 1,882 1,663 0 January 16 April July 16 October'16 January 17 School of Nursing Total -Actives Aspen University Total - Actives
Slide 11: Fiscal Q3'17 Record Operating Metrics
FISCAL Q3’17 RECORD OPERATING METRICS 10 Aspen set a quarterly enrollment record in Q3 with 825 new student enrollments; expecting well over 900 in Q4New class starts up 69% YoY, from 2,753 to 4,652Rolling 6-month average cost-per-enrollment (CPE) dropped 8% YoY, from $828 to $768Particularly impres
Slide 12: LOI for Regionally-Accredited University
LOI For Regionally-Accredited University 11 On 3/9/17 Aspen Group announced the signing of a letter of intent to acquire a regionally accredited, for-profit university in California$9mm purchase price ($4.5mm stock, $2.5mm cash, $2mm convertible note maturing over a two year period)Closing targeted
Slide 13: Summary Income Statement
Summary Income Statement 12 Adjusted EBITDA is a Non-GAAP financial measure - see slide 1 “Regulation G – Non-GAAP Financial Measures”
Slide 14: Equity Snapshot
EQUITY SNAPSHOT 13 As of 4/27/17 Ticker on OTCQB: ASPU Share Price: $4.65 52 Week Range: $1.52 - $5.00 Market Cap: $62.8 Million Shares Outstanding : 13.5 Million Mgmt & BOD Ownership: 19%
Slide 15: Investor Highlights
Investor Highlights Confidential and Proprietary 14 Company at Inflection Point with Multiple Near Term Catalysts60%+ projected revenue growth for FY’17 (FYE April) and FY’18Turned Net Income positive in Q2/Q3 FY’17 with ~ $1.5M projected FY’17 Adjusted EBITDA*Pending acquisition of California Unive
Slide 16: Q&A – Aspen Group, Inc.
Q&A ASPEN GROUP, INC.