Legacy Education Alliance, Inc. · OTC:LEAI

Legacy Education Alliance — Investor Presentation (June 2016)

26 slides from Legacy Education Alliance's investor presentation, Jun 2, 2016

  1. Slide 1: Investor Presentation June 2016

    www.LegacyEducationAlliance.com Copyright ©2016 by Legacy Education Alliance, Inc. All rights reserved. Investor Presentation June 2016 OTCQB: LEAI

  2. Slide 2: Disclaimer

    INVESTOR PRESENTATION OTCQB:LEAI 1 Disclaimer This presentation contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended (the "Exchange Act") (which Sections were adopte

  3. Slide 3: Overview

    INVESTOR PRESENTATION OTCQB:LEAI 2 • Leading International education company • Providing practical, high - quality and value - based training • Subjects taught are personal finance, entrepreneurship, real estate, and financial instruments for investing • Strong brand awareness with 20 years market p

  4. Slide 4: Legacy Education Alliance key stats

    INVESTOR PRESENTATION OTCQB:LEAI 3 Legacy Education Alliance, Inc. is a leading international provider of practical, high - quality, and value - based educational training on the topics of personal finance, entrepreneurship, real estate, and financial markets investing strategies and techniques . Ke

  5. Slide 5: Selected Stock Data

    INVESTOR PRESENTATION OTCQB:LEAI 4 Selected Stock Data OTCQB: LEAI (as of May 16, 2016 ) Recent Price $ 0.29 Market Cap $6.3 million Shares Outstanding 22 million Float 4.0 million Insider Ownership 15.7 %* P/S 0.07x Diluted EPS $0.03 Revenue ( ttm ) $88.2 million Cash & Equiv. ( mrq ) $9.1 million*

  6. Slide 6: Flagship Brand – Rich Dad Education

    INVESTOR PRESENTATION OTCQB:LEAI 5 Overview Flagship Brand – Rich Dad Education • Based on the teachings of Robert Kiyosaki , entrepreneur, investor, educator, and author of bestseller Rich Dad Poor Dad • Worldwide intellectual property rights • Best - selling personal finance book of all time • Ric

  7. Slide 7: Legacy Education Alliance - Brands

    INVESTOR PRESENTATION OTCQB:LEAI 6 Overview Legacy Education Alliance - Brands All trade and service marks and logos owned by or licensed to Legacy Education Alliance, Inc. or its affiliates. All rights res erved.

  8. Slide 8: Market Landscape: North America

    INVESTOR PRESENTATION OTCQB:LEAI 7 Market Landscape North America ▪ Market leader ▪ Only public pure play ▪ Brand development & diversification ▪ Elite Business Star ( Kevin Harrington, Shark Tank ) ▪ Brick Buy Brick ( Phillip Buchanon , former NFL player ) ▪ Women in Wealth ▪ The Independent Woman

  9. Slide 9: Market Landscape: Globally

    INVESTOR PRESENTATION OTCQB:LEAI 8 Globally ▪ Development of international market ▪ 2015 New Offices ▪ SOUTH AFRICA ▪ HONG KONG ▪ New brands thru acquisition + organic development ▪ Intellectual Property & Licensing Agreements Market Landscape

  10. Slide 10: Market Landscape: Web Based

    INVESTOR PRESENTATION OTCQB:LEAI 9 Web Based ▪ Online Instructor - Led Courses ▪ Livestream Courses ▪ On - Demand Courses ▪ Worldwide e - learning revenue*: ▪ $35.6B (2011) ▪ $51.5B (2016e) ▪ Intellectual Property & Licensing Agreements *Source: E - Learning Market Trends & Forecast 2014 - 16, a rep

  11. Slide 11: Market Landscape: Office Locations

    INVESTOR PRESENTATION OTCQB:LEAI 10 *New Offices in 2015 Market Landscape Salt Lake city, UT Vaughn, Ontario Cape Coral, FL Richmond Surrey, U.K. Johannesburg, South Africa* Causeway Bay, Hong Kong*

  12. Slide 12: Revenue Segmentation FY2015 vs FY2014

    INVESTOR PRESENTATION OTCQB:LEAI 11 Revenue Segmentation Significant Growth Opportunities Globally • Workshops & Seminars • Symposiums • Conferences 73.1% 6.3% 17.0% 3.6% Geography US Canada U.K. Other Foreign Mkts • Online • On - Demand 66.8% 6.4% 19.9% 6.9% Geography U.S. Canada U.K. Other Foreign

  13. Slide 13: Revenue Segmentation 1Q16 vs 1Q15

    INVESTOR PRESENTATION OTCQB:LEAI 12 Revenue Segmentation Significant Growth Opportunities Globally • Workshops & Seminars • Symposiums • Conferences 71% 6.7% 18.8% 3.5% Geography US Canada U.K. Other Foreign Mkts • Online • On - Demand 63.4% 5.1% 22.2% 9.3% Geography U.S. Canada U.K. Other Foreign M

  14. Slide 14: Revenue Segmentation by Brand FY2014 FY2015

    INVESTOR PRESENTATION OTCQB:LEAI 13 Revenue Segmentation Significant Growth Opportunities Globally • Workshops & Seminars • Symposiums • Conferences 86.1% 13.9% Brand Rich Dad Other Brands • Online • On - Demand 77.2% 22.8% Brand Rich Dad Other Brands FY2014 FY2015

  15. Slide 15: Revenue Segmentation by Brand 1Q15 1Q16

    INVESTOR PRESENTATION OTCQB:LEAI 14 Revenue Segmentation Significant Growth Opportunities Globally • Workshops & Seminars • Symposiums • Conferences 84.4% 15.6% Brand Rich Dad Other Brands • Online • On - Demand 74% 26% Brand Rich Dad Other Brands 1Q15 1Q16

  16. Slide 16: Cash sales as key operating metric

    INVESTOR PRESENTATION OTCQB:LEAI 15 Our cash sales are a key metric for evaluating our operating performance • Two ways revenue is recognized under US GAAP: • When students attend their courses • When term for taking their course expires - This could be several fiscal quarters after the student purc

  17. Slide 17: Operating Performance

    INVESTOR PRESENTATION OTCQB:LEAI 16 Operating Performance $22.60 $22.70 $21.30 $19.10 $23.70 $20.70 $24.40 $19.50 $23.30 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 FY2014 FY2015 FY2016 Cash Sales (Millions) Q1 Q2 Q3 Q4 $81.9 $94.1

  18. Slide 18: Financial Performance

    INVESTOR PRESENTATION OTCQB:LEAI 17 Financial Performance Deferred Revenue Cash Sales Agreement Term Expiration Attend Course $21.70 $22.70 $21.00 $21.50 $22.00 $22.50 $23.00 1Q15 1Q16 REVENUE $(0.6) $0.6 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 -$0.04 -$0.03 -$0.02 -$0.01 $0.00 $0.01 $0.02 $0.03 $0.04

  19. Slide 19: Value Proposition

    INVESTOR PRESENTATION OTCQB:LEAI 18 □ Leading Education Company □ Strong cash position with minimal debt □ Growth and diversification □ LEAI trades at a discount to other publicly - traded companies in education industry • Industry p/s( ttm ) range 0.3x - 2.4x • LEAI p/s( ttm ) 0.07x Value Propositi

  20. Slide 20: Valuation Metrics

    INVESTOR PRESENTATION OTCQB:LEAI 19 Valuation Metrics Company Name Ticker Share Price Market Cap (USD) P/E( ttm ) P/S( ttm ) Grand Canyon Education Inc LOPE $41.55 $1948.1M 13.9x 2.4x DeVry Education Group Inc DV $19.17 $1202.94M 33.9x 0.7x Apollo Education Group Inc APOL $9.28 $1008.2M N/A 0.4x Cap

  21. Slide 21: Management Team

    INVESTOR PRESENTATION OTCQB:LEAI 20 Management Team Anthony Humpage – Chief Executive Officer & Director • CEO since 2012 • EVP & CFO of Government Liquidation • CPA and British Chartered Accountant • MBA Finance Degree from Western International University Christian Baeza – Chief Financial Officer

  22. Slide 22: Board of Directors

    INVESTOR PRESENTATION OTCQB:LEAI 21 Board of Directors James Bass – Chairman of the Board • Chairman as of July 2015 • Former CEO and director of Piper Aircraft and Suntron Corp . • Former CEO of EFTC Corp . , a subsidiary of Suntron • Previously held management positions at Sony and GE • Earned a B

  23. Slide 23: Corporate Information

    INVESTOR PRESENTATION OTCQB:LEAI 22 Corporate Information Attorney Shumaker, Loop & Kendrick, LLP 101 E. Kennedy Blvd. Tampa, FL 33602 813 - 229 - 7600 Auditor MaloneBailey 9801 Westheimer Road, Suite 1100 Houston, TX 77042 713 - 343 - 4286 Transfer Agent VStock Transfer 18 Lafayette Place Woodmere,

  24. Slide 24: Investor Relations

    INVESTOR PRESENTATION OTCQB:LEAI 23 www.LegacyEducationAlliance.com Investor Relations RedChip Companies Inc. Jon Cunningham jon@RedChip.com 407 - 712 - 8969 Copyright ©2016 by Legacy Education Alliance, Inc. All rights reserved.

  25. Slide 25: Appendix: Select Brand Overviews

    INVESTOR PRESENTATION OTCQB:LEAI 24 Appendix Select Brand Overviews Elite Business Star™ was created in partnership with entrepreneur Kevin Harrington, one of the original Sharks from the television show Shark Tank , E lite Business Star is designed to help individuals grow their business through a

  26. Slide 26: Appendix: Select Brand Overviews (cont.)

    INVESTOR PRESENTATION OTCQB:LEAI 25 Appendix Select Brand Overviews (cont.) Brick Buy Brick offers a curriculum focused on real estate and the fundamentals of negotiating real estate purchases with sellers, rehabilita tin g distressed properties and leasing rental units to tenants to generate multip

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