Aspen Group, Inc. · OTC:ASPU
Aspen — Q2 2022 Earnings Presentation
19 slides from Aspen's earnings presentation, Dec 14, 2021
Slide 1: Second Quarter Fiscal Year 2022 Earnings Slides
Second Quarter Fiscal Year 2022 Earnings Slides CREATING VALUE BY Michael Mathews, Chairman & Chief Executive Officer Matt LaVay, Chief Financial Officer TRANSFORMING THE COLLEGE December 14, 2021 EDUCATION EXPERIENCE Nasdaq: ASPU
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Certai n statements i n thi s presentation and responses to various questions include forward -looking statements within the meaning of the Pri vate Securi ti es Li ti gati on Reform Act of 1995, including statements regarding our planned lower cash use in the fiscal third and
Slide 3: Q2 FY'22 Executive Summary
Q2 FY’22 EXECUTIVE SUMMARY REVENUE ROSE 12% TO $18.9 M Growth driven by highest LTV programs with strong growth from USU, up 26% YOY, and Aspen University PL-BSN growth from its three new metros 35% REDUCTION IN NET LOSS Aspen 2.0 focused ad spend produced growth in our highest efficiency businesses
Slide 4: Second Quarter Fiscal Year 2022 Highlights
SECOND QUARTER FISCAL YEAR 2022 HIGHLIGHTS (All comparisons are Q2 FY’22 versus Q2 FY’21) REVENUE GROSS PROFIT NET LOSS UP $9.7M UP $(2.9)M 35% $18.9M 12% GROSS PROFIT 4% NET LOSS LOWER REVENUES • Two business units with • Disciplined cost controls…G&A Reduction in net loss highest LTV represented 5
Slide 5: Aspen 2.0: Focused Growth Spending and Managing New Investments
Aspen 2.0: Focused Growth Spending and Managing New Investments Focused “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
Slide 6: 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 7: Q2 FY'22 Enrollment and Bookings Impacted by COVID Delta Variant
Q2 FY’22 Enrollment and Bookings Impacted by COVID Delta Variant on Working RN Students and FNP Prospects Q2 FY’22 Y-O-Y Q2 FY’22 Y-O-Y Bookings* Enrollment (in millions) Strategic DECREASE in $42.1 2,659 Marketing Spend $37.4 2,380 • Phoenix Metro • AU online ex Doctoral 2,010 $30.5 1,750 $26.1 -10
Slide 8: Q2 FY'22 Sequential Total Enrollment and Bookings Lifted by New BSN P-L Campuses
Q2 FY’22 Sequential Total Enrollment and Bookings Lifted by New BSN P-L Campuses Q2 FY’22 Q-O-Q Q2 FY’22 Q-O-Q Bookings* Enrollment (in millions) Pick-up in AU’s BSN P-L 2,380 enrollment, primarily in $37.4 2,276 $35.2 new metros – Austin, Nashville, and Tampa 1,750 1,601 $26.1 $23.2 5% 6% -7% -7% $
Slide 9: Q2 FY'22 Revenue and Gross Profit
Q2 FY’22 Revenue and Gross Profit Revenue Y-O-Y Compare Gross Profit Y-O-Y Compare (in millions) (in millions) REVENUE $18.9 +12% $17.0 $6.2 High LTV $4.9 GROSS $9.7 54% of $9.3 PROFIT revenue +4% $12.1 $12.8 Q2 FY'21 Q2 FY'22 Q2 FY'21 Q2 FY'22 AU USU Investment in higher LTV programs driving higher
Slide 10: G&A Returns to Prior Year Levels in Q2 FY'22
G&A Returns to Prior Year Levels in Q2 FY’22 with Five Operational BSN-PL Campuses Q2 FY22 Y-O-Y G&A and Revenue Comparison (in millions) • G&A decreased to 61% of revenue, down from 66%, due to cost controls associated with the $18.9 Aspen 2.0 business plan $17.0 • Anticipate achieving operational
Slide 11: AGI Active Student Body Grew 8% to 14,318
AGI Active Student Body Grew 8% to 14,318; Nursing Students Represent 87% of Total Student Body AU and USU Active Student Body* and Nursing Students by University YoY Degree-Seeking Student Body Grew 8% AU Nursing Student Body +5% USU Nursing Student Body +24% AU and USU Active Student Body 12,000 1
Slide 12: Second Quarter Fiscal Year 2022 Financial Results Tables
Second Quarter Fiscal Year 2022 Financial Results Tables
Slide 13: Income Statement
Income Statement Three Months Ended October 31, Six Months Ended October 31, 2021 2020 2021 2020 Revenue $ 18,940,211 $ 16,971,045 $ 38,371,206 $ 32,136,607 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 8,789,201 7,324,780 17,382,769 13,172,3
Slide 14: Net Loss to EBITDA and Adjusted EBITDA Reconciliation
Net Loss to EBITDA and Adjusted EBITDA Reconciliation Three Months Ended October 31, Six Months Ended October 31, 2021 2020 2021 2020 Net loss $ (2,852,258) $ (4,370,525) $ (3,723,146) $ (5,313,721) Interest expense, net 138,064 1,529,517 170,196 1,984,740 Taxes 5,900 36,530 156,910 34,630 Depreciat
Slide 15: 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 October 31, 2021 Consolidated AGI Corporate AU USU Net income (loss) $ (2,852,258) $ (5,059,164) $ 1,329,813 $ 877,093 Interest expense, net 138,064 139,239 (739) (436) Taxes 5,900 1,249 3,400 1,251 De
Slide 16: Balance Sheet (Assets)
Balance Sheet (Assets) October 31, April 30, 2021 2021 (Unaudited) Assets Current assets: Cash and cash equivalents $ 10,985,131 $ 12,472,082 Restricted cash 1,433,397 1,193,997 Accounts receivable, net of allowance of $3,345,182 and $3,289,816, respectively 21,309,982 16,724,744 Prepaid expenses 1,
Slide 17: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity) October 31, April 30, 2021 2021 (Unaudited) Liabilities and Stockholders’ Equity Liabilities: Current liabilities: Accounts payable $ 2,102,624 $ 1,466,488 Accrued expenses 1,772,808 2,040,896 Deferred revenue 10,191,241 6,825,014 Due to students
Slide 18: Subsidiary KPIs (Percentage of Revenue)
Subsidiary KPIs (Percentage of Revenue) Three Months Ended October 31, 2021 Consolidated AU USU Revenue $18,940,211 $12,758,851 $6,181,360 Percentage of Revenue Consolidated AU USU Instructional costs 26% 26% 25% Marketing costs 21% 20% 16% General and Administrative expenses 61% 36% 41% Depreciatio
Slide 19: Second Quarter Fiscal Year 2022 Earnings Slides
Second 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