Aspen Group, Inc. · OTC:ASPU
Aspen — The MicroCap Conference 2015
15 slides from Aspen's conference presentation, Nov 5, 2015
Slide 1: The MicroCap Conference
The MicroCap ConferenceNovember 5, 2015 OTCQB: ASPUwww.aspen.edu ASPEN GROUP, INC.
Slide 2: Safe Harbor Statement & Non-GAAP
SAFE HARBOR STATEMENT & NON-GAAP * Certain statements in this presentation and responses to various questions include forward-looking statements including statements regarding our opportunities and expectations from the nursing education sector, future liquidity, and our strategic plans and financia
Slide 3: The Opportunity
THE OPPORTUNITY * The for-profit education business model is broken; industry is ripe for change $1.3 Trillion Student Debt BubbleTuition rates have increased by 500%+ since 1980’sThis is an enormous business$23 Billion for-profit education sectorNursing expected to be a critical growth driver in po
Slide 4: Aspen University Has Built a New Business Model
ASPEN UNIVERSITY HAS BUILT A NEW BUSINESS MODEL * Aspen University offers world class online education at half the cost of its competitors; committed to cash-based, pay-as-you-go educationAnnounced the ‘debtless’ education vision in 2014 “Let’s Change Higher Education Forever” Students can pay $325/
Slide 5: The Nursing Dilemma
THE NURSING DILEMNA * Critical Nursing shortage projected next decade (260,000 RN shortage by 2025)More than 1 million RNs will reach retirement age within next 10-15 years (average age of RNs is 47 years old); 525,000 replacement Nurses expected, bringing the job openings growth to 1.05mm by 2022Nu
Slide 6: Only 55% of RNs Have a BSN Degree or Higher
ONLY 55% OF RNs HAVE A BACHELOR OF SCIENCE IN NURSING (BSN) DEGREE OR HIGHER1.75mm RNs is the total targetable market size to 2022 (3.24mm workforce, minus 1.49mm of RNs that currently have BSN or higher degree) $9,750* x 1,750,000 = $17 Billion Opportunity*Aspen’s BSN program tuition NURSING: $17 B
Slide 7: Aspen's Progress in Nursing; BSN Program Exploding
ASPEN’S PROGRESS IN NURSING;BSN PROGRAM EXPLODING * Aspen’s CCNE-Accredited Master of Science in Nursing (MSN) program has grown to 1,165 students since marketing began in 2012Since BSN program was accredited by CCNE last November, the BSN student body grew to 439 students in 8 months (or +55/month
Slide 8: Debtless Education Solution Now the Majority
DEBTLESS EDUCATION SOLUTION NOW THE MAJORITY * Recurring Monthly Tuition Billing Now Exceeds $275,0001,345 degree-seeking students enrolled in a monthly payment method Tuition Revenues by Payment Type (September): Debtless Education Solution 52% -Monthly Payment Plan 40% -Monthly Installment Plan 12
Slide 9: How Aspen Offers Low Tuition While Achieving High Margins
HOW ASPEN OFFERS LOW TUITION WHILE ACHIEVING HIGH MARGINS * Best-in-class customer acquisitionManagement’s expertise in Internet marketing and lead generation led to vertically-integrating marketingDo not utilize third-party lead gen firmsAll Aspen branded adsAverage customer acquisition costs <$900
Slide 10: Unit Economics Among Best in Sector
UNIT ECONOMICS AMONG BEST IN SECTOR * Low customer acquisition costs and variable teaching costs create highly attractive unit economics – projecting 65%+ Adjusted Gross Margins at scaleAverage course completions per student enrollment is 7.5 = $6,000 revenue (average $800 tuition/course today and r
Slide 11: Innovative Business Model Now Proven, Time to Scale
INNOVATIVE BUSINESS MODEL NOW PROVEN, TIME TO SCALE * Financial Forecast FY’ 2016 – 2018 (50% CAGR Forecast) Q4’FY 2016* Q4’FY 2018* (Target) (Target) Annual Revenue Run Rate $9mm $20mm Adjusted Gross Margin** 59% 65% Adjusted EBITDA** B/E 30% Degree-Seeking Student Body 5,000 10,000 *Fiscal Fourth
Slide 12: Proven Management Team
PROVEN MANAGEMENT TEAM * Experienced team can deliver sustainable growth and strong results while maintaining high qualityCEO: Michael MathewsBuilt revenues from run rate of $6 Million in 2007 to$100+ Million in 2010 as CEO of Interclick (NASDAQ: ICLK)In 2011, Interclick sold to Yahoo for $270 Milli
Slide 13: Equity Snapshot
EQUITY SNAPSHOT Ticker on OTCQB: ASPU Share Price: $0.15 52 Week Range: $0.09 - $0.29 Market Cap: $19.3 Million Shares Outstanding : 128.3 Million Mgmt & BOD Ownership: 19%
Slide 14: Questions & Answers
QUESTIONS & ANSWERS ASPEN GROUP, INC.
Slide 15: GAAP P&L Reconciliation
GAAP P&L RECONCILIATION * Financial Forecast FY’ 2016 – 2018 (50% CAGR Forecast) Q4’FY 2016* Q4’FY 2018* (Target) (Target) Net Income (Loss) - GAAP ($356K) $1,095K Interest Expense - Net 28K 20K Depreciation & Amortization 143K 150K Stock Compensation 80K 150K Allowance for Bad Debt 32K 50K One-Time