Strategic Education, Inc. · NASDAQ:STRA
Strategic Education — Merger or Acquisition (October 2017)
20 slides from Strategic Education's merger presentation, Oct 30, 2017
Slide 1: Creating a National Leader in Education Innovation
Creating a National Leader in Education Innovation October 30, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This communication contains certain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Such statements may be identified by the use of words such as “expect,” “estimate,” “assume,” “believe,” “anticipate,” “
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It Investors and security holders are urged to carefully review and consider each of Strayer’s and Capella’s public filings with the Securities and Exchange Commission (the “SEC”), including but not limited to their Annual Reports on Form 10-K, their proxy st
Slide 4: Certain Information Regarding Participants; No Offer or Solicitation
Certain Information Regarding Participants Strayer, Capella and their respective directors and executive officers may be deemed participants in the solicitation of proxies in connection with the proposed transaction. You can find information about Strayer’s directors and executive officers in its de
Slide 5: Today's Participants
Today’s Participants ROBERT SILBERMAN KEVIN GILLIGAN Executive Chairman Chairman and Chief Executive Officer KARL MCDONNELL STEVEN POLACEK Chief Executive Officer Chief Financial Officer DANIEL JACKSON Chief Financial Officer 5
Slide 6: Creating a National Leader in Education Innovation
Creating a National Leader in Education Innovation All-stock merger of equals with Capella shareholders receiving 0.875 Strayer shares for each Capella share; Strayer shareholders will own approximately 52% and Capella shareholders will own approximately 48% of the combined company on a fully dilute
Slide 7: Stronger Corporate Platform Supporting Independent Universities
Stronger Corporate Platform Supporting Independent Universities S T R AY E R FA M I LY Accelerates innovations that C A P E L L A FA M I LY improve affordability and enhance the learning experience and career outcomes for students Leadership Leadership President: Brian W. Jones President: Richard Se
Slide 8: Transaction Overview
Transaction Overview All-stock, tax-free merger of equals Transaction Structure Capella shareholders to receive 0.875 Strayer shares for each Capella share Pro forma ownership: 52% Strayer shareholders and 48% Capella shareholders Robert Silberman will be Executive Chairman Kevin Gilligan
Slide 9: Capella Education Overview
Capella Education Overview ~37,000 STUDENTS (As of 9/30/17) 7% A leading educational services company 11% providing online postsecondary degree 38% programs and job-ready skills offerings to working adults: 19% Founded in 1993 with diversified program offerings: ‒ Capella University 25% • 1,900+ o
Slide 10: Enhanced Scale, Diversity & Educational Experience
Enhanced Scale, Diversity & Educational Experience PRO FORMA DEGREE MIX MEANINGFUL BENEFITS ~80,000 FOR STUDENTS Students Complementary program offerings 7% with more choices for students 11% Sharing of academic best practices ~135 36% to enhance the student experience Degree and Certificate E
Slide 11: A Compelling Platform for Students
A Compelling Platform for Students 11
Slide 12: Comprehensive Degree Programs
Comprehensive Degree Programs KEY PROGRAM OFFERINGS KEY PROGRAM OFFERINGS (152 SPECIALIZATIONS) Bachelors Associates Bachelors Masters Doctorates/Eds Bachelor of Science in Accounting Associate in Arts in Accounting Bachelor of Science in Business (FlexPath) Master of Business Administration
Slide 13: Strayer Education Overview
Strayer Education Overview ~42,000 STUDENTS (As of 9/30/17) 1% A diversified education company with 125-year track record of educating working adults 16% 4% through undergraduate and graduate degree 5% 53% programs: 11% ‒ Strayer University • 73 Campuses across 16 states and the District of Columbia
Slide 14: A Shared Focus on Delivering Value & Driving Outcomes For Students
A Shared Focus on Delivering Value & Driving Outcomes For Students AFFORDABILITY DATA DRIVEN SUPPORT SUPERIOR OUTCOMES Strayer Deep data analytics Strayer ‒ 20% undergraduate tuition ‒ Leading learning model and ‒ Over 80% continuation rate reduction in 2014 assessment capabilities ‒ 20% incre
Slide 15: Highly Achievable Cost Synergies
Highly Achievable Cost Synergies Expected annual cost savings of approximately $50 million Expect to achieve full run rate within first 18 months following closing with approximately half realized during first 12 months following closing Consolidation of executive functions Capturing efficienc
Slide 16: Strong Cash Flow to Support Investment and Return of Capital
Strong Cash Flow to Support Investment and Return of Capital FOR STUDENTS Investment in better educational experience and value for students $80 M Pro Forma Free Cash Flow FOR SHAREHOLDERS Expected $2/share annual dividend payout Note: Pro Forma TTM ended September 30, 2017 16
Slide 17: Creating a National Leader in Education Innovation
Creating a National Leader in Education Innovation Two regionally accredited independent universities Combined platform facilitates accelerated investment in student experience and affordability Highly achievable corporate cost synergies and strong cash flow drive shareholder value creation 17
Slide 18: La EpucaTrion
La EpucaTrion N COMPANY @ Carett EDUCATION
Slide 19: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures The following information provides reconciliations of non-GAAP financial measures , which are presented in the accompanying presentation, to the most comparable financial measures calculated and presented in accordance with accounting principle
Slide 20: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures The following information provides reconciliations of non-GAAP financial measures , which are presented in the accompanying presentation, to the most comparable financial measures calculated and presented in accordance with accounting principle
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