Aspen Group, Inc. · OTC:ASPU
Aspen — Investor Presentation (August 2018)
22 slides from Aspen's investor presentation, Aug 30, 2018
Slide 1: August 2018 Nasdaq: ASPU
August, 2018Nasdaq: ASPU 1
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement Certain statements in this presentation and responses to various questions include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding USU’s future role with family nurse practitioner’s, project
Slide 3: Aspen Group Vision: To Make College Affordable Again
3 Aspen Group Vision “To Make College Affordable Again”
Slide 4: Aspen Group's Business Model
4 Aspen Group’s Business Model Offer world class online education at half the cost of our competitors; committed to cash-based, monthly payment plans (no interest) “Let’s Change Higher Education Forever” Online Students can pay $325/month for a Master’s degree = $11,700 (36 months) Online Students c
Slide 5: Monthly Payment Model Now the Majority Payment Method at Aspen University
5 Monthly Payment Model Now the Majority Payment Method at Aspen University Recurring Monthly Tuition Billing Now Exceeds $1.2 million4,769 degree-seeking students enrolled in a monthly payment method (as of 7/31/18)Total value of monthly payment plan contracts exceeds $35 million (as of 7/31/18) Tu
Slide 6: AGI Student Bodies
AGI Student Bodies As of July 31, 2018 7,000 6500 5590 5086 6.000 seat sors ass a 4207 40 4068 4000 3309 3.000 2000 ca 1,000 ory 37 nay? tober 17 ary 18 on'18 vive
Slide 7: Targeting Four Growth Vectors
7 Targeting Four Growth Vectors
Slide 8: Growth Vector 1: RNs - Fully Online RN to BSN & MSN
8 Growth Vector 1: RNs - Fully OnlineRN to BSN & MSN RNs (post-licensure):BSN & MSN2.9mm RNs in U.S. Today65,000 Starts per Annum(TAM: - $478mm)**Assumes Aspen’s $7,350 LTV
Slide 9: Aspen University Capturing ~2% of BSN Completion Starts
9 Aspen University Capturing ~2%Of BSN Completion Starts Approximately 140K RNs currently enrolled in BSN Completion programs; or approx. 50,000 new enrolls/year
Slide 10: Aspen University Unit Economics Among Best in Sector
10 Aspen University (Nursing + Other) Unit Economics Among Best In Sector Low customer acquisition costs and variable teaching costs create highly attractive unit economics – projecting 68%+ Gross Margins at scaleAverage course completions per student enrollment is 8 = $7,350* revenue (average $820
Slide 11: Growth Vector 2: Pre-Licensure BSN Hybrid Online/Campus Program
11 Growth Vector 2: Pre-Licensure BSN Hybrid Online/Campus Program Pre-Licensure BSN Program:(Hybrid Online/Campus Program)100,000 Pre-Licensure BSN Startsper Annum(TAM: - $3B)**Assumes Aspen’s $30,000 LTV projection
Slide 12: Aspen University Pre-Licensure BSN: Launched
12 Aspen University Pre-Licensure BSN: LaunchedFirst campus in Phoenix in July, 2018 3-Year BSN program is 120 credits – 69% online, 31% on groundApproved by the AZ BON, AZPPSE, State of Colorado, DEACHave clinical partnerships in PHX (Maricopa Integrated Health System and Honor Health)Unique compar
Slide 13: Growth Vector 3: Doctoral Students - Fully Online
13 Growth Vector 3: Doctoral Students – Fully Online Doctoral Programs (Fully Online):55,000 Graduates per Annum14% Online Students or ~8K/yr.(TAM: - $100mm)**Assumes Aspen’s $12,600 LTV
Slide 14: Growth Vector 4: RNs - MSN/FNP Hybrid Online Program
14 Growth Vector 4: RNs – MSN/FNP Hybrid Online Program USU to become the university of choice for preparing six-figure Nurse Practitioners ($27K: $375 for 72 months) RNs (post-licensure):MSN-Family Nurse Practitioner (Hybrid Online Program)234,000 NPs in U.S. Today (8% oftotal RNs)30,000 Starts per
Slide 15: Q1 FY'19 KPI Results - Cost of Enrollment, LTV & MER
Q1 FY’19 KPI Results—Cost of Enrollment, LTV & Marketing Efficiency Ratio (MER) 15 *Based on a six-month rolling average**LTV projections are not yet available for the new BSN pre-licensure campus unit (preliminary estimate is $30,000) Enrollments Cost-of-Enrollment* LTV** MER Aspen (Nursing + Other
Slide 16: Q4 Fiscal Year 2018 Results
Q4 Fiscal Year 2018 Results 16 For the Quarter Ended April 30, 2018 Revenues $ 7,225,029 Operating expenses Cost of revenues 3,571,005 General and administrative 5,353,495 Program review settlement expense - Depreciation and amortization 460,314 9,384,814 Operating loss from operations (2,159,785) O
Slide 17: Equity Snapshot
17 Equity Snapshot Closed on $23mm equity raise on April 23, terminated $10mm credit facility following day Cash on hand ~$11.5mm (7/2018) As of 8/27/18 Ticker on Nasdaq: ASPU Share Price: $7.90 52 Week Range: $5.35 - $9.61 Market Cap: $145 Million Shares Outstanding : 18.3 Million Mgmt & BOD Owners
Slide 18: KPI Results
KPI Results 18
Slide 19: Q1 FY'19 KPI Results - Enrollments
Q1 FY’19 KPI Results—Enrollments 19 *Included doctoral enrollments Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 EAs Enrolls/Month/EA Aspen (Nursing + Other) 862* 1,044* 972* 980 882 51 5.8 Aspen (Doctoral) 116 118 5 7.9 USU (FNP + Other) 177 221 11 6.7 Aspen (Pre-Licensure BSN, AZ Campus) 93 3 10.3 NEW ENROLLMENT
Slide 20: Q4 FY'18 - Subsidiary KPIs
Q4 FY’18 - Subsidiary KPIs 20 AGI Consolidated AU USU Revenues $7,225,029 68% YOY Ratios as a Percentage of AU Revenue Ratios as a Percentage of USU Revenue Instructional costs $1,531,173 18% 38% Marketing costs $2,039,832 23% 35% Gross Profit $3,506,254 57% 27% General & Administrative expenses $5,
Slide 21: Q4 FY'18 Net (Loss)/Income, Adjusted EBITDA and EPS
Q4 FY’18 Net (Loss)/Income, Adjusted EBITDA and EPS 21 Consolidated AGI AU USU Net (Loss)/Income $ (3,664,485) $ (3.28M) $ 0.9M $(1.29M) Adjusted EBITDA $ (1,020,004) $ (1.41M) $ 1.37M $(.98M) Net Loss Per Share ($0.26) Adjusted Net Loss Per Share* ($0.15) * Excluding the one time interest expense r
Slide 22: Net Loss to Adjusted EBITDA Reconciliation (Q4 FY'18)
Net Loss to Adjusted EBITDA Reconciliation(Q4 FY’18) Net Loss ($3,664,485)Interest Expense 1,504,701 Depreciation & Amortization 460,314 EBITDA (1,699,470) Bad Debt Expense 317,222Stock-Based Compensation 176,098Non-recurring Charges 186,146Adjusted EBITDA (Loss) ($1,020,004) 22