Aspen Group, Inc. · OTC:ASPU
Aspen — Investor Presentation (September 2018)
25 slides from Aspen's investor presentation, Sep 25, 2018
Slide 1: September 2018 Nasdaq: ASPU
September, 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: Why We Are A Compelling Investment
3 Aspen Group: Why We Are A Compelling Investment Disruptive business model (monthly payment plans, no interest) with outstanding student outcomesBest-in-Class EdTech infrastructure (Proprietary SIS & CRM, integrated with D2L)Recurring revenue model (monthly payments over multiple years, over $35mm
Slide 4: Aspen Group's Disruptive Business Model: Making College Affordable
4 Aspen Group’s Disruptive Business Model:“Making College Affordable” Offer world class online education at half the cost of our competitors; committed to cash-based, monthly payment plans (no interest)Aspen University Nursing program’s overall graduation rate is 63% Online Bachelor-level students p
Slide 5: Best-In-Class EdTech Stack
5 Student Information System Data Warehouse CRM System Classroom (D2L) Best-In-Class EdTech Stack Student Portal
Slide 6: CRM System Delivers Breakthrough Functionality
6 CRM System Delivers Breakthrough Functionality Built to achieve highest enrollment conversion rates through recommendation engine algorithmInnovating in student services to drive higher persistence rates; alert Academic Advisors of ‘At-Risk’ events in real-time (launch Spring, 2019) Academic Finan
Slide 7: Recurring Revenue Model
7 Recurring Revenue Model 5,168 students at Aspen U & USU are using a monthly payment method; total value of monthly payment plan contracts exceeds $35 million*An additional 351 Aspen University graduates remain on Monthly Payment Plans as of 8/31/18 (~$120,000/mo.) *As of 7/31/18
Slide 8: Unprecedented LTV/CAC Ratios
8 Unprecedented LTV/CAC Ratios
Slide 9: Proven Business Model
9 Proven Business Model Aspen Group AEBITDA profitable from July 2016 (Q1 FY’17) to October 2017 (Q2 FY’18)Following acquisition of USU in December 2017, Aspen University remains AEBITDA profitable
Slide 10: Proven Management Team
10 Proven Management Team Michael Mathews, Chairman & CEO-Former CEO of Interclick (Nasdaq: ICLK, 2007-2011), sold to Yahoo! in 2011 for $270mm-Former Operating Exec of CKS Partners (Nasdaq: CKSG, 1994-1998), sold to USWeb in 1998 for $344mmDr. Cheri St. Arnauld, Chief Academic Officer -Former CAO o
Slide 11: Equity Snapshot
11 Equity Snapshot Closed on $23mm equity raise on April 23, terminated $10mm credit facility following day Cash on hand ~$9.9mm (9/10/18) As of 9/21/18 Ticker on Nasdaq: ASPU Share Price: $7.17 52 Week Range: $5.85 - $9.61 Market Cap: $131 Million Shares Outstanding : 18.3 Million Mgmt & BOD Owners
Slide 12: Appendix
Appendix 12
Slide 13: Q1 FY'19 KPI Results—Enrollments
Q1 FY’19 KPI Results—Enrollments 13 *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 14: KPI Results—Student Body
KPI Results—Student Body 14 *Active Degree-Seeking Students” are defined as degree-seeking students who were enrolled in a course during the quarter reported, or are registered for an upcoming course.
Slide 15: Q1 Fiscal Year 2019 Results
Q1 Fiscal Year 2019 Results 15 For the Quarter Ended April 30, 2018 Revenues $ 7,221,305 Operating expenses Cost of revenues 3,752,392 General and administrative 5,824,132 Depreciation and amortization 498,105 10,074,629 Operating loss from operations (2,853,324) Other income (expense): Other income
Slide 16: Net (Loss)/Income, Adjusted EBITDA and EPS
Net (Loss)/Income, Adjusted EBITDA and EPS 16 Consolidated AGI AU USU Net (Loss)/Income $ (2,837,276) $ (1.90M) $ 0.21M $(1.15M) Adjusted EBITDA $ (1,778,348) $ (1.49M) $ 0.52M $(0.81M) Net Loss Per Share ($0.15)
Slide 17: Subsidiary KPIs—Q1 FY'19
Subsidiary KPIs—Q1 FY’19 Ratios 17 AGI Consolidated AU USU Revenues $7,221,305 70% YOY Ratios as a Percentage of AU Revenue Ratios as a Percentage of USU Revenue Instructional costs $1,564,936 19% 33% Marketing costs $2,187,456 27% 26% Gross Profit $3,309,768 51% 40% General & Administrative expense
Slide 18: Targeting Four Growth Vectors
18 Targeting Four Growth Vectors
Slide 19: Growth Vector 1: RNs - Fully Online
19 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 20: Aspen University Capturing ~2% of BSN Completion Starts
20 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 21: Growth Vector 2: Pre-Licensure BSN Hybrid Online/Campus Program
21 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 an $30,000 LTV
Slide 22: Aspen University Pre-Licensure BSN: Launched
22 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, Honor Health, Phoenix Childre
Slide 23: Growth Vector 3: Doctoral Students – Fully Online
23 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 24: Growth Vector 4: RNs – MSN/FNP Hybrid Online Program
24 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 25: Net Loss to Adjusted EBITDA Reconciliation (Q1 FY'19)
Net Loss to Adjusted EBITDA Reconciliation(Q1 FY’19) Net Loss ($2,837,276)Interest Expense 40,353 Depreciation & Amortization 498,105 EBITDA (2,298,818) Bad Debt Expense 121,805Stock-Based Compensation 209,976Non-recurring Charges 188,689Adjusted EBITDA (Loss) ($1,778,348) 25