Aspen Group, Inc. · OTC:ASPU
Aspen — Q3 FY2021 Earnings Presentation
16 slides from Aspen's earnings presentation, Mar 16, 2021
Slide 1: Third Quarter Fiscal Year 2021 Earnings Slides
Third Quarter Fiscal Year 2021 Earnings Slides Michael Mathews, Chairman & Chief Executive Officer CREATING VALUE BY Robert Alessi, Chief Financial Officer & Chief TRANSFORMING THE COLLEGE Accounting Officer March 16, 2021 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 the anticipated impact on the pre -licensure unit of the imp
Slide 3: Key Takeaways For Q3 FY'21 Financial Results
Key Takeaways For Q3 FY’21 Financial Results 33% revenue growth from solid quarterly enrollment despite the Company’s predominantly RN student body on front lines of pandemic ü USU enrollment increased 43%, primarily from MSN-FNP program ü USU and AU BSN Pre-Licensure equaled 51% of consolidated rev
Slide 4: Third Quarter Fiscal Year 2021 Operating Metrics
Aspen Group, Inc. Third Quarter Fiscal Year 2021 Operating Metrics
Slide 5: AGI Active Student Body Grew by 22% to 13,407 in Q3 FY'21
AGI Active Student Body Grew by 22% to 13,407 in Q3 FY’21; Nursing Students Represent 87% of Total Student Body AU and USU Active Student Body* and Nursing Students by University AU and USU Active Student Body 12,000 10,779 10,863 9,975 10,000 9,487 9,274 9,101 9,197 8,377 7,862 8,000 7,562 6,000 4,
Slide 6: Aspen University Marketing Efficiency Ratio (MER) Above 11X for Both Universities
Q3 FY’21 Aspen University Marketing Efficiency Ratio (MER) 5 Above 11X for Both Universities Third quarter weighted average customer acquisition cost (CAC) increased by 38% year-over-year from $989 to $1,365, due to PL-BSN campus launches in two new markets. Marketing Efficiency Ratio Q3’21 Q3’21 Q3
Slide 7: High LTV Enrollment Growth Lifted Bookings By 24% and ARPU by 2%
Q3 FY’21 High LTV Enrollment Growth Lifted Bookings By 24% and ARPU by 2% Q3 FY’21 ENROLLMENT Q3 FY’21 Bookings1 Q3 FY’21 ARPU2 (in millions) $15,513 $33.0 2,129 1,746 $26.5 1,593 $23.5 1,371 $19.9 +2% +22% +24% +43% +43% $15,199 +16% +18% $9.6 536 $6.7 375 Aspen USU Total Aspen USU Total Q3 FY2020
Slide 8: Gross Profit Reflects Growth Spending in Two Newest Metros
Gross Profit Reflects Growth Spending in Two Newest Metros Gross Profit and Revenue Annual Growth Rate Comparison (in millions) • Full quarter of growth spending in Austin and $16.6 Tampa in third quarter impacted gross margin REVENUE +33% • PL-BSN and USU revenue exceeded 50% of YOY $12.5 total rev
Slide 9: G&A Grew at 49% of Rate of Revenue Growth
Q3 FY’21 G&A Grew at 49% of Rate of Revenue Growth YOY G&A and Revenue Compare (in millions) $16.6 • Revenue increased by $4.1 million • Total G&A increased by $2.0 million $12.5 +$4.1M YOY • G&A increased on a dollar basis by 49% of $10.6 the rate of revenue dollar growth, below $8.6 Company’s stat
Slide 10: Fiscal Year 2021 Key Metrics
FISCAL YEAR 2021 KEY METRICS Increasing enrollments in highest LTV programs while Annual FY’21 revenue managing costs to achieve forecast of 37%-38% growth our fiscal year Adjusted EBITDA goal
Slide 11: Third Quarter Fiscal Year 2021 Financial Results
Aspen Group, Inc. Third Quarter Fiscal Year 2021 Financial Results
Slide 12: Income Statement
Q3 FY’21 Income Statement Three Months Ended Jan. 31, 2021 Jan. 31, 2020 Revenues $ 16,624,837 $ 12,537,940 Operating expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 7,559,951 5,163,007 General and administrative 10,644,438 8,625,041 Bad debt expense 67
Slide 13: Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries
Q3 FY’21 Net (Loss)/Income, Adjusted EBITDA and EPS for Consolidated and Subsidiaries Consolidated AGI AU USU Net Income/(Loss) $(2,815,266) $(4,537,882) $1,375,359 $347,257 Adjusted EBITDA1 $(864,927) $(3,792,982) $2,471,994 $456,061 Earnings/(Loss) Per Share, basic & diluted $(0.11) $(0.18) $0.06
Slide 14: Subsidiary KPIs—Q3 FY'21 Ratios
Subsidiary KPIs—Q3 FY’21 Ratios Consolidated AU USU Revenues $16,624,837 $11,860,174 $4,764,663 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 24% 22% 27% Marketing and promotional costs 22% 20%
Slide 15: Net Loss to Adjusted EBITDA Reconciliation
Q3 FY’21 Net Loss to Adjusted EBITDA Reconciliation Three Months Ended January 31, 2021 Aspen BSN Consolidated AGI Corporate Pre-Licensure AU Online AU Total USU Net Loss $ (2,815,266) $(4,537,882) $989,1001 $386,259 $1,375,359 $347,257 Interest expense, net 33,436 33,516 -- -- -- (80) Taxes 10,460
Slide 16: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Q3 FY’21 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 Jan. 31, 2021 Jan. 31, 2020 Net Loss $ (2,815,266) $ (2,281,052) Add back: Stock-based compensation 701,170 347,210 Non-recurring char