Aspen Group, Inc. · OTC:ASPU
Aspen — Q4 FY2021 Earnings Presentation
23 slides from Aspen's earnings presentation, Jul 13, 2021
Slide 1: Fourth Quarter Fiscal Year 2021 Earnings Slides
Fourth Quarter Fiscal Year 2021 Earnings Slides Michael Mathews, Chairman & Chief Executive Officer CREATING VALUE BY Robert Alessi, Interim Chief Financial Officer, TRANSFORMING THE COLLEGE Chief Accounting Officer July 13, 2021 EDUCATION EXPERIENCE Nasdaq: ASPU
Slide 2: Safe Harbor Statement
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 our expectations regarding Lifetime Value and cost of enrollm
Slide 3: Fourth Quarter and Full Year Fiscal 2021 Operating Metrics
Aspen Group Inc. Fourth Quarter and Full Year Fiscal 2021 Operating Metrics
Slide 4: Fourth Quarter Fiscal Year 2021 Summary
FOURTH QUARTER FISCAL YEAR 2021 SUMMARY All comparisons are Q4 FY’21 versus Q4 FY’20 • Fourth quarter revenue increased 35% to $19.1 million • 51% of total revenue from AU’s BSN Pre-Licensure unit and USU (primarily FNP students) • Enrollments increased 23% (2,182) and bookings increased 21% ($32.2
Slide 5: High-LTV Enrollments Lifted Q4 FY'21 Bookings by 21%
HIGH-LTV ENROLLMENTS LIFTED Q4 FY’21 BOOKINGS BY 21% Q4 Y-O-Y Enrollment Q4 Y-O-Y Bookings* (in millions) 2,182 $32.2 1,776 $26.6 1,593 1,344 +23% $21.7 +21% $18.9 +36% +36% +19% +15% $10.5 589 $7.7 432 Aspen University USU Total Aspen University USU Total Q4 FY'20 Q4 FY'21 Q4 FY'20 Q4 FY'21 *Bookin
Slide 6: Q4 FY'21 Gross Profit Reflects New Campus Launches
Q4 FY’21 Gross Profit Reflects New Campus Launches Gross Profit and Revenue • PL-BSN and USU revenue contributed 51% of Y-O-Y Growth Rate Comparison total revenue in Q4 FY’21 (in millions) • Rising contribution from these units expected $19.1 to increase future gross margin REVENUE • Anticipate meet
Slide 7: G&A Growth Reflects Increased Growth Spend in Q4 FY'21
G&A Growth Reflects Increased Growth Spend in Q4 FY’21 • G&A growth exceeded revenue due to “growth Q4 Y-O-Y G&A and Revenue Comparison (in millions) spend” to support new campus launches • Anticipate achieving operational scale going $19.1 forward, due to: ü Increasing revenue from recently opened
Slide 8: Key Takeaways for FY'21
KEY TAKEAWAYS FOR FY’21 All comparisons are FY’21 versus FY’20 • High LTV program growth fueled 38% revenue growth • Aspen’s three business units all enjoyed strong growth • Revenue rose 16% for Aspen University Online during 2020/2021 COVID spike, strong performance considering majority of students
Slide 9: AGI Active Student Body Grows to 13,886
AGI Active Student Body Grows to 13,886;Nursing Students Represent 87% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 11,117 10,779 10,863 9,975 9,487 9,410 9,101 9,197 8,377 7,862 2,439 2,544 2,636 2,769 2,341 2,459 1,848 1,957 2,045 2,153 April '20 July '2
Slide 10: Growth in High LTV Program Enrollments Lifts FY'21 Bookings Growth
Growth in High LTV Program Enrollments Lifts FY’21 Bookings Growth by 29% to $143.4 Million Total Enrollments Total Bookings* (in millions) 9,321 $143.4 7,668 $111.3 +22% +29% FY2020 FY2021 FY2020 FY2021 *Bookings are defined by multiplying LTV by new student enrollments for each operating unit.
Slide 11: Aspen 2.0 Business Plan and FY'22 Guidance
Aspen 2.0 Business Plan and FY’22 Guidance
Slide 12: 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 13: Focused Growth Spending and Managing New Investments
Focused Growth Spending and Managing New Investments Focus “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 P-L market: • Aspen University legacy online unit (excluding Doctoral) •
Slide 14: Fiscal Year 2022 Guidance
Fiscal Year 2022 Guidance Three key drivers of growth in FY’22 (DOLLARS IN MILLIONS GUIDANCE GROWTH YOY • Double cohorts at main Phoenix EXCEPT EPS) RANGE RATE (%) 1 INCREASE 1 campus Revenue $85.0 $88.0 27.0% $18.7 • USU's MSN-FNP degree, second highest LTV program Net Income2 ($4.5) ($3.0) 64% $6.
Slide 15: Fourth Quarter and Fiscal Year 2021 Financial Results Tables
Fourth Quarter and Fiscal Year 2021 Financial Results Tables
Slide 16: FY'21 Income Statement
FY’21 Income Statement Years Ended April 30, 2021 2020 Revenues $ 67,812,520 $ 49,061,080 Operating expenses Cost of revenues (exclusive of depreciation and amortization shown 29,453,733 19,135,302 separately below) General and administrative 41,908,030 30,329,520 Bad debt expense 2,268,540 1,431,21
Slide 17: Q4 & FY'21 Net Loss to Adjusted EBITDA Reconciliation
Q4 & FY’21 Net Loss to Adjusted EBITDA Reconciliation Three Months Ended April 30, For the Year Ended April 30, 2021 2020 2021 2020 Net loss $ (2,319,986) $ (664,563) $ (10,448,973) $(5,659,065) Interest expense, net 13,369 393,471 2,031,545 1,818,078 Taxes (12,446) (10,688) 32,644 51,820 Depreciati
Slide 18: Q4 FY'21 Reconciliation to Adjusted EBITDA By Business Unit
Q4 FY’21 Reconciliation Of Net Income (Loss) To EBITDA And Adjusted EBITDA By Business Unit Three Months Ended April 30, 2021 AU BSN AGI Pre- Consolidated Corporate Licensure AU Online AU Total USU Net income (loss) $ (2,319,986) $ (4,736,579) $ 831,192 $ 557,608 $ 1,388,800 $ 1,027,793 Interest exp
Slide 19: FY'21 Reconciliation to Adjusted EBITDA By Business Unit
FY’21 Reconciliation Of Net Income (Loss) To EBITDA And Adjusted EBITDA By Business Unit Year Ended April 30, 2021 AU BSN Pre- Consolidated AGI Corporate Licensure AU Online AU Total USU Net income (loss) $ (10,448,973) $ (20,666,448) $ 3,895,576 $ 3,386,117 $ 7,281,693 $ 2,935,782 Interest expense,
Slide 20: Balance Sheet (Assets)
Balance Sheet (Assets) April 30, 2021 2020 Assets Current assets: Cash and cash equivalents $ 8,513,290 $ 14,350,554 Restricted cash 5,152,789 3,556,211 Accounts receivable, net of allowance of $3,289,816 and 16,724,744 14,326,791 $1,758,920, respectively Prepaid expenses 1,077,831 941,671 Other rec
Slide 21: Balance Sheet (Liabilities and Stockholders' Equity)
Balance Sheet (Liabilities and Stockholders’ Equity) April 30, 2021 2020 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 1,466,488 $ 1,505,859 Accrued expenses 2,040,896 900,643 Deferred revenue 6,825,014 3,712,994 Due to students 2,747,484 2,371,844 Operating lease obli
Slide 22: Q4 & FY'21 Subsidiary KPIs (Percentage of Revenue)
Q4 & FY’21 Subsidiary KPIs (Percentage of Revenue) Three Months Ended April 30, 2021 For the Year Ended April 30, 2021 Consolidated AU USU Consolidated AU USU Revenue $19,051,076 $13,307,813 $5,743,263 $67,812,520 $47,942,339 $19,870,181 Percentage of Revenue Consolidated AU USU Consolidated AU USU
Slide 23: Fiscal Year 2022 Guidance: GAAP to Non-GAAP Reconciliation
Fiscal Year 2022 Guidance: GAAP to Non-GAAP Reconciliation 2022 Guidance Range (in millions) Net loss ($4.5) - ($3.0) Interest expense, net 0.1 Taxes — Depreciation and amortization 2.8 - 3.3 EBITDA ($1.6) - $0.4 Bad debt expense 1.0 Stock-based compensation 2.7 Non-recurring charges (0.1) Adjusted