Aspen Group, Inc. · OTC:ASPU
Aspen — LD Micro Main Event 2017
17 slides from Aspen's conference presentation, Dec 5, 2017
Slide 1: LD Micro Main Event
LD Micro Main Event Nasdaq: ASPUwww.aspen.eduDecember 5, 2017
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 opportunities and expectations from the nursing education
Slide 3: Aspen Group, Inc. Vision
ASPEN GROUP, INC. VISION 2 “To Make College Affordable Again in America”
Slide 4: How: Aspen First to Ever Vertically Integrate Marketing
HOW: ASPEN FIRST TO EVER VERTICALLY INTEGRATE MARKETING 3 Best-in-class customer acquisitionManagement’s expertise in Internet advertising and lead generation allowed Aspen to bring all marketing in-houseDo not utilize third-party lead gen firmsAll ads utilizing university brandsDirect publisher rel
Slide 5: Aspen Group's Business Model
ASPEN GROUP’S BUSINESS MODEL 4 Offer world class online education at half the cost of its competitors; committed to cash-based, pay-as-you-go education“Let’s Change Higher Education Forever” Students can pay $325/month for a Master’s degree = $11,700 (36 monthly payments)Students can pay $250/month
Slide 6: Aspen University
a ASPEN -f/ UNIVERSITY
Slide 7: Aspen University Overview
ASPEN UNIVERSITY OVERVIEW 6 Goal is to build the largest Nursing school in U.S. (4,068 at 10/31/17 – Top 5)
Slide 8: The Nursing Dilemma
THE NURSING DILEMMA 7 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 9: Aspen Capturing ~2% of BSN Completion Starts
ASPEN CAPTURING ~2% OF BSN COMPLETION STARTS WSJ Article, March 6, 2016 Approximately 140K students currently enrolled in BSN Completion programs; or approx. 50,000 new enrolls/year
Slide 10: Monthly Payment Methods Now the Majority Payment Type at Aspen U
MONTHLY PAYMENT METHODS NOW THE MAJORITY PAYMENT TYPE AT ASPEN U 9 Recurring Monthly Tuition Billing Now Exceeds $880,0003,410 degree-seeking students enrolled in a monthly payment method (as of 7/31/17)Total value of monthly payment plan contracts exceeds $30 million (as of 7/31/17) Tuition Revenue
Slide 11: Aspen University Unit Economics Among Best in Sector
ASPEN UNIVERSITY UNIT ECONOMICS AMONG BEST IN SECTOR 10 Low customer acquisition costs and variable teaching costs create highly attractive unit economics – projecting 68%+ Gross Margins (70%+ Adjusted Gross Margins*) at scaleAverage course completions per student enrollment is 8 = $7,000** revenue
Slide 12: United States University
PF UNITED STATES UNIVERSITY
Slide 13: United States University Overview (Acquired 12/1/17)
UNITED STATES UNIVERSITY OVERVIEW (ACQUIRED 12/1/17) 12 Regionally-accredited United States University will allow AGI to drive growth across three key sectors over the next 24 months; primary focus will be fully-online graduate programs, except for the hybrid FNP programNursing (MSN)Education (MEd)B
Slide 14: United States University Projections
UNITED STATES UNIVERSITY PROJECTIONS 13 United States University projected to represent ~20% of AGI revenues in Q4 FY’18Will rise to ~30% of AGI revenues by fiscal year-end 2019
Slide 15: Summary Income Statement
Summary Income Statement 14 Adjusted EBITDA is a Non-GAAP financial measure - see slide 1 “Regulation G – Non-GAAP Financial Measures”
Slide 16: Equity Snapshot
EQUITY SNAPSHOT 15 As of 12/1/17 Ticker on Nasdaq: ASPU Share Price: $8.46 52 Week Range: $2.46 - $9.25 Market Cap: $115 Million Shares Outstanding : 14.9 Million Mgmt & BOD Ownership: 20%
Slide 17: Q&A
Q&A