Aspen Group, Inc. · OTC:ASPU
Aspen — Q1 FY2023 Earnings Presentation
17 slides from Aspen's earnings presentation, Sep 13, 2022
Slide 1: First Quarter Fiscal Year 2023 Earnings Slides
First Quarter Fiscal Year 2023 Earnings Slides CREATING VALUE BY Michael Mathews, Chairman & Chief Executive Officer TRANSFORMING THE COLLEGE Matt LaVay, Chief Financial Officer September 13, 2022 EDUCATION EXPERIENCE Nasdaq: ASPU
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements in this presentation and responses to various questions including our ability to improve operating results with controlled spending, future revenue trends including from our new Atlanta campus, the timing for new campuses to achieve profitability, USU growth,
Slide 3: First Quarter Fiscal Year 2023 Highlights
FIRST QUARTER FISCAL YEAR 2023 HIGHLIGHTS (All comparisons are Q1 FY’23 versus Q1 FY’22) REVENUE GROSS PROFIT NET LOSS $18.9M 3% $8.2M 21% $(3.7)M $(2.8)M RE V E N U E GR O S S P R O F I T NE T L O S S • Lower revenue • Lower revenue • Enrollment stoppage at the • Inflationary pressure on • Inflatio
Slide 4: Q1 FY'23 Profitability by Operating Segment
Q1 FY’23 Profitability by Operating Segment ($ in millions) Aspen University USU $1.7 $3.0 $1.5 $1.4 $1.3 $2.3 $0.8 ($0.2) Net income Adjusted EBITDA Net income Adjusted EBITDA Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 AU Adj EBITDA YOY decline attributed to: USU Adjusted EBTIDA YOY increase attributed to MSN
Slide 5: Balance Sheet
Balance Sheet ($ in millions) Liquidity Cash Balance • Cash flow used in operations was $3.6 million • Approximately $2.2 million is attributed to EBITDA loss $6.5 • $1.2 million is attributed to changes in working $2.4 capital primarily related to increase in short-term and long-term monthly paymen
Slide 6: Q2 FY'23 Restructuring Impact on Expenses
Q2 FY’23 Restructuring Impact on Expenses Improving ability to generate positive operating cash flow in 2H FY2023 Marketing Restructuring Savings (in millions) • Marketing ad spend reduced to maintenance spend levels of $150,000 per quarter $3.6 $3.8 • Expected to deliver savings of $3.6 million in
Slide 7: Q1 FY'23 Enrollment and Bookings Overview
Q1 FY’23 Enrollment and Bookings Overview Q1 FY’23 Y-O-Y Q1 FY’23 Y-O-Y Factors impacting Q1 FY’23 Bookings* Enrollment (in millions) Enrollment & Bookings 2,276 • Stoppage of Phoenix $35.2 campuses enrollments 1,601 • Strategic decrease in marketing spend in Q4 $23.2 1,315 • Aspen 2.0 reduced marke
Slide 8: Q1 FY'23 Revenue and Gross Profit
Q1 FY’23 Revenue and Gross Profit Subsidiary Revenue Y-O-Y Compare AGI GAAP Gross Profit Y-O-Y Compare (in millions) (in millions) $19.4 $18.9 * $6.2 $6.9 $10.4 $8.2 $13.2 $11.9 Q1 FY'22 AU USU Q1 FY'23 Q1 FY'22 Q1 FY'23 Decline in AU revenue was partially offset by USU MSN-FNP up 12% Gross profit d
Slide 9: G&A Controls in Q1 FY'23; Pre-Licensure Campus Expansion to Five States
G&A Controls in Q1 FY’23; Achieved With Pre-Licensure Campus Expansion to a Total of Five States Y-O-Y G&A flat as a percent of revenue Q1 FY’23 Y-O-Y G&A and at 56% primarily due to: Revenue Comparison (in millions) • Increased G&A spend in AU BSN Pre- Licensure and USU MSN-FNP programs related to
Slide 10: AGI Active Student Body Declined 13% to 12,048
AGI Active Student Body Declined 13% to 12,048; Nursing Students Represent 86% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 11,184 10,911 10,736 10,225 9,531 9,269 9,116 9,133 8,632 7,686 2,789 2,968 2,911 3,134 2,773 2,988 2,890 3,109 2,708 2,915 July '21
Slide 11: Appendix
APPENDIX
Slide 12: Income Statement
Income Statement Revenue Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) General and administrative Bad debt expense Depreciation and amortization Total operating expenses Operating loss Other income (expense): Interest expense Other income, ne
Slide 13: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA By Subsidiary
Slide 14: Balance Sheet (Assets)
Balance Sheet (Assets) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable, net of allowance of $3,653,072 and $3,460,288, respectively Prepaid expenses. Other current assets Total current assets Property and equipment: Computer equipment and hardware Fumiture and fi
Slide 15: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity)
Slide 16: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue)
Slide 17: First Quarter Fiscal Year 2023 Earnings Slides
First Quarter Fiscal Year 2023 Earnings Slides CREATING VALUE BY IR Contact: Kim Rogers TRANSFORMING THE COLLEGE Hayden IR EDUCATION EXPERIENCE kim@haydenir.com 385-831-7337