Aspen Group, Inc. · OTC:ASPU
Aspen — Non-Deal Roadshow (August 2018)
21 slides from Aspen's roadshow presentation, Aug 1, 2018
Slide 1: Non-Deal Roadshow
Non-Deal RoadshowAugust, 2018Nasdaq: ASPU 1 Non-Deal RoadshowJuly, 2018Nasdaq: ASPU 1
Slide 2: Safe Harbor Statement
2 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 low customer acquisition costs and teaching costs creating favorable gross ma
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 million4,532 degree-seeking students enrolled in a monthly payment method (as of 4/30/18)Total value of monthly payment plan contracts exceeds $35 million (as of 4/30/18) Tu
Slide 6: AGI Student Bodies
AGI Student Bodies 6 AGI Student Bodies 6
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: - $260mm)**Assumes $4,000 revenue in year 1
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: - $1.5B)**Assumes $15,000 revenue in year 1
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: - $48mm)**Assumes $6,000 revenue in year 1
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: Q4 FY'18 KPI Results—Cost of Enrollment, LTV & Marketing Efficiency Ratio
Q4 FY’18 KPI Results—Cost of Enrollment, LTV & Marketing Efficiency Ratio (MER) 15 *Based on a six-month rolling average**Based on only one full quarter of marketing spend, therefore six-month rolling average will be available next quarter***Note that starting in March, 2018, Aspen University no lon
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 As of 7/30/18 Ticker on Nasdaq: ASPU Share Price: $6.90 52 Week Range: $5.35 - $9.61 Market Cap: $126 Million Shares Outstanding : 18.3 Million Mgmt & BOD Ownership: 17%
Slide 18: Q4 FY'18 Results
Q4 FY’18 Results 18
Slide 19: Q4 FY'18 KPI Results—Enrollments
Q4 FY’18 KPI Results—Enrollments 19 *Note that starting in March, 2018, Aspen University no longer admits students without official transcripts (formerly called conditional acceptances). This change was made for operational efficiency reasons, as the starts and revenues earned from conditional accep
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: Net (Loss)/Income, Adjusted EBITDA and EPS
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 related to