Michael Mathews, Chairman & Chief Executive Officer
TRANSFORMING THE COLLEGE
Matt LaVay, Chief Financial Officer
September 14, 2021
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 expectations regarding bookings, Lifetime Value and cost of enrollment, the anticipated impact of changes in growth spend on enrollments, bookings, profitability, and liquidity, the expected rate and timing of opening new campuses and targeted markets, our future growth, g rowth drivers and growth strategy, expected increase in future gross margins, increase in revenues from the high LTV programs, expected future performance of recently opened campuses, future changes in operating expenses, projected future advertising spend, the expected impact of COVID - 19 and the federal vaccine mandate, the intended use of proceeds from the drawdown under the revolving credit facility, and the expected capital expenditures related to new campuses . The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward - looking statements . We have based these forward - looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs .
Important factors that could cause actual results to differ from those in the forward - looking statements include, without limitation, our ability to successfully implement the 'Aspen 2 . 0' business plan and the accuracy of the assumptions used in estimating the results of such implementation, unanticipated issues with, and delays in, launching phase two of our in- house CRM and the continued ability of the CRM to perform as expected, continued high demand for nurses, the continued effectiveness of our marketing efforts, the effectiveness of our collection efforts and process improvements, our ability to obtain the necessary regulatory approvals to launch our future campuses in a timely fashion or at all, national and local economic factors, including the substantial impact of the COVID - 19 pandemic on the economy, risks stemming from the new federal vaccination program, competition from nursing schools in local markets, the competitive impact from the trend of major non - profit universities using online education, unfavorable regulatory changes, our failure to continue obtaining enrollments at low acquisition costs and keeping teaching costs down, and potential loss of employees as a result of the COVID - 19 vaccine mandate . Further information on the risks and uncertainties affecting our business and operating results is contained in our filings with the Securities and Exchange Commi ssion, including our Form 10 - K for the fiscal year ended April 30, 2021, as amended and supplemented by the Form 10 - Q for the three months ended July 31, 2021 .
Any forward - looking statement made by us herein speaks only as of the date on which it is made . Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them . We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law .
Also, the discussions during this conference call and slide 4, 14 and 15, include certain financial measures that were not prepared in accordance with U . S . generally accepted accounting principles ("GAAP") . Additional information regarding non - U . S . GAAP financial measures can be found in the press release issued on September 14, 2021 and the Form 10 - Q filed the same day . Any non - U . S . GAAP financial measures presented are not, and should not be viewed as, substitutes for financial measures required by U . S . GAAP, have no standardized meaning prescribed by U . S . GAAP and may not be comparable to the calculation of similar measures of other companies . See reconciliati on of these non - GAAP financial measures to their respective GAAP measures at the end of this slide presentation .
Aspen Group Inc.
First Quarter Fiscal 2022
FIRST QUARTER FISCAL YEAR 2022 SUMMARY
(All comparisons are Q1 FY'22 versus Q1 FY'21)
First quarter revenue increased 28% to $19.4 million
55% of consolidated revenue attributable to AU's BSN Pre-licensure unit and USU (primarily MSN-FNP students)
Year-over-YearEnrollments and Bookings growth impacted by strategic shift in marketing spend to slow Phoenix metro pre-licensure enrollment growth while delivering growth in AU's new pre-licensure markets and USU's FNP program
Gross margin declined to 54% from 59% due to growth spending to support three new campus launches
Instructional costs increased to 23% of revenue from 20%
Marketing costs increased to 21% of revenue from 18%
G&A decreased to 56% of revenue, down from 58%, as a result of execution of cost controls associated with the Aspen 2.0 business plan.
All three business units (Aspen Nursing + Other, Aspen PL, and USU) delivered Adjusted EBITDA margins above 20%
Q1 FY'22 Enrollment and Bookings Impacted by Strategic Marketing Spend Reduction
Q1 FY'22 Y-O-Y
Q1 FY'22 Y-O-Y
New student enrollments increased sequentially from 2,182 to 2,276 or 4%. On a year-over-year basis, new student enrollments for the Company were down 3%
Excluding the 232 planned enrollment reduction in the Phoenix pre-licensure metro, Company-wide enrollments would have been up year-over- year by 7%
USU delivered a record 675 new student enrollments, an 18% increase year-over-year, primarily from FNP enrollments.
*Bookings are defined by multiplying LTV by new student enrollments for each operating unit.
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