Aspen Group, Inc. · OTC:ASPU
Aspen — Q1 FY2021 Earnings Presentation
15 slides from Aspen's earnings presentation, Sep 14, 2020
Slide 1: First Quarter Fiscal Year 2021 Earnings Slides
First Quarter Fiscal Year 2021 Earnings Slides Michael Mathews, Chairman & Chief Executive Officer CREATING VALUE BY Frank J. Cotroneo, Chief Financial Officer TRANSFORMING THE COLLEGE Robert Alessi, Chief Accounting Officer September 14, 2020 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 expected further campus expansion, expected expansio n of USU
Slide 3: Key Takeaways For Q1 FY'21 Financial Results
Key Takeaways For Q1 FY’21 Financial Results • Enrollment growth in high LTV programs accelerated revenue growth to 46% • Decline in marketing spend to 18% of revenue boosted gross margin by 300 bps • Operating margin expanded and net loss narrowed by 55% • Adjusted Net Income* and Adjusted EPS* of
Slide 4: First Quarter Fiscal Year 2021 Operating Metrics
Aspen Group, Inc. First Quarter Fiscal Year 2021 Operating Metrics
Slide 5: AGI Active Student Body Grew by 24% to 12,128 in Q1 FY'21
AGI Active Student Body Grew by 24% to 12,128 in Q1 FY’21; Nursing Students Represent 86% of Total Student Body AU and USU Active Student Body* and Nursing Students by University 12,000 9,975 10,000 9,487 9,274 9,016 8,261 8,377 8,000 7,862 7,562 7,299 6,595 6,000 4,000 2,045 2,153 1,678 1,759 1,848
Slide 6: Aspen University Marketing Efficiency Ratio Improved by 16%
Q1 FY’21 Aspen University Marketing Efficiency Ratio (MER) 5 Improved by 16% First quarter weighted average customer acquisition cost (CAC) increased by 4% year-over-year from $1,153 to $1,203 Marketing Efficiency Ratio MER5 % Enrollments CAC1 LTV2 Q1’21 MER Q1’20 MER Change Aspen University 1,779 $
Slide 7: High LTV Enrollment Growth Lifted Bookings By 34%, Delivering 10% ARPU Growth
Q1 FY’21 High LTV Enrollment Growth Lifted Bookings By 34% Delivering 10% ARPU Growth Q1 FY’21 ENROLLMENT Q1 FY’21 ARPU2 Q1 FY’21 Bookings1 $15,344 2,351 (in millions) $36.1 1,929 1,779 $25.9 $26.9 1,415 +10% $17.7 +34% +11% +22% $13,919 +26% 572 +46% $10.2 514 $9.2 +11% Aspen USU Total Aspen USU To
Slide 8: Acceleration of Gross Profit Contribution
Acceleration of Gross Profit Contribution Gross Profit Rising Faster than Revenue (in millions) • YoY Q1 Revenue increased by $4.8 $15.2 million or 46% • YoY Q1 GAAP Gross Profit increased by REVENUE $3.2 million or 56% +46% $10.4 YOY • 67% of revenue increase dropped $9.0 to gross profit line $5.8
Slide 9: Q1 FY'21 G&A YOY Increase of 28% on 46% Revenue Growth
Q1 FY’21 G&A YOY Increase of 28% on 46% Revenue Growth G&A Growth versus Revenue Growth $15.2 (in millions) • Revenue increased by $4.8 million or 46% • G&A increased by $2.0 million or 29% $10.4 • The Company anticipates achieving the stated $8.8 goal of G&A increasing at half the rate of revenue g
Slide 10: Q1 Fiscal Year 2021 Financial Results
Q1 Fiscal Year 2021 Financial Results
Slide 11: Q1 FY'21 Income Statement
Q1 FY’21 Income Statement Three Months Ended % Better/ July 31, 2020 July 31, 2019 (Worse) Revenues $15,165,562 $10,357,982 46% Operating expenses: Cost of revenues 5,847,523 4,353,058 (34)% General and administrative 8,793,756 6,796,251 (29)% Bad debt expense 400,000 240,899 (66)% Depreciation and
Slide 12: Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries
Q1 FY’21 Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries Consolidated AGI AU USU Net Profit/(Loss) $(943,196) $(4,255,735) $2,309,763 $1,002,776 Adjusted EBITDA $1,307,298 $(2,977,839) $3,161,133 $1,124,004 Net Profit/(Loss) Per Share, basic & diluted $(0.04) $(0.19) $0.
Slide 13: Subsidiary KPIs—Q1 FY'21 Ratios
Subsidiary KPIs—Q1 FY’21 Ratios Consolidated AU USU Revenues $15,165,562 $10,720,642 $4,444,920 Ratios as a Ratios as a Ratios as a Percentage of Percentage of Percentage of Total AGI Revenue AU Revenue USU Revenue Instructional costs and services 20% 19% 22% Marketing and promotional costs 18% 18%
Slide 14: Net Loss to Adjusted EBITDA Reconciliation
Q1 FY’21 EBITDA Breakeven and Adjusted EBITDA Positive Net Loss to Adjusted EBITDA Reconciliation Three Months Ended % Better/ (Worse) July 31, 2020 July 31, 2019 Net Loss $(943,196) $(2,075,282) 55% Interest expense, net 455,223 420,067 (8)% Taxes (1,900) 90,277 NM Depreciation and amortization 490
Slide 15: Net Loss to Adjusted Net Loss Reconciliation Table
Net Loss to Adjusted Net Loss Reconciliation Table Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Net Income (Loss) per Share to Adjusted Net Income (Loss) per Share Three Months Ended % Better/ July 31, 2020 July 31, 2019 (Worse) Net Loss $(943,196) $(2,075,282) 55% Stock-bas