EX-99.1 2 dex991.htm COMPANY PRESENTATION Company Presentation
Nobel Learning Communities, Inc.
Exhibit 99.1

2
Nobel Learning Communities, Inc.
The following presentation contains forward-looking statements, within the meaning of
the
Private
Securities
Litigation
Reform
Act
of
1995,
about
such
things
as
the
Company’s business, projected revenues, expenditures and operating and capital
requirements.  Statements that are not historical facts are forward-looking statements,
and
are
subject
to
certain
risks,
uncertainties
and
assumptions,
such
as
factors
that
could cause actual results to vary materially.
Among the factors that could impact our
ability to achieve our stated goals are competitive conditions in the pre-elementary and
elementary school education and services industry, including advertising and tuition
price sensitivity; various factors affecting occupancy levels, including, but not limited
to, the reduction in or changes to the general labor force that would reduce the need or
demand for private schools; the establishment of governmentally mandated universal
pre-K programs that do not allow for participation by for-profit operators; our inability
successfully to defend against or counter negative publicity associated with claims
involving alleged incidents at our schools; and the acceptance of our newly developed
schools and businesses and performance of recently acquired businesses.  Forward-
looking statements should not be relied upon except as statements of our present
intentions and expectations that may or may not occur.
©

3
Agenda
•
Company Vision, History and Description
•
Review of Recent Changes
•
Growth Opportunities
•
Financial Review

4
To create an affordable alternative to public and secular
school systems through infant to 8
th
grade learning
communities that support the educational, enrichment
and wellness needs of students and their families.
NLCI Vision and Opportunity

5
–
Founded in 1982 as Rocking Horse Child Care Centers
of America.  Transitioned to an operator of non-sectarian
private schools and provider of educational services.
–
Company growth occurred primarily through small
acquisitions which were inconsistent in terms customer
base and geographic locations
–
During the late 1990’s and early 2000’s the company
expanded broadly, purchasing a variety of education
businesses that did not share competencies or provide
operating and management synergies
NLCI Company History

6
For the Periods FY 99  through  FY 03.
The chart below summarizes NLCI’s
controllable
investment allocation from FY 1999 through FY 2003
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
"Controllable
Investment"
Revenue
Operating Profit
Systems/Corp.
TES
Charter
TAC
HLA
Paladin Academy
Preschool & Elementary

7
NLCI has implemented significant changes over the past
three years
•
New Management Team, Board and Bank

8
NLCI Board of Directors (External)
Director
Experience
FY Elected
Peter Havens
Chairman, Baldwin Management, LLC
FY 91
Steven Fink
Vice Chairman, Knowledge Universe
FY 03
Chairman of the Board - LeapFrog Enterprises
Joseph Harch
Chairman, Harch Capital Management
FY 03
Boards-Spring Group, plc; General Nutrition Ctrs, Inc.
David Warnock
Founder & Partner - Camden Partners Holdings, LLC
FY 03
Boards-Calvert Education Services; Concorde Career Colleges, Inc.;
Touchstone Applied Science Associates
Dr. Terry Crane
Formerly VP, Info & Education Products at AOL;
FY 04
(Non-executive Chairman
President, Jostens Learning Corp/Compass Learning;
of the Board)
SVP Worldwide Strategic Market Segments, Apple Computer
Ralph Smith
Sr. Vice President, Annie E. Casey Foundation,
FY 05
Formerly Professor, Law School of Univ. of Pennsylvania;
Chief of Staff and Counsel, Philadelphia School System;
Counsel, Congressional Black Causus
Michael Rosenthal
Chairman & President, M.J. Rosenthal & Associates,
FY 05
Formerly Managing Director, Wesray Capital Corp;
SVP and Managing Director Mergers and Acquisitions, DLJ
Richard Pinola
Formerly Chairman, CEO, Right Management Consultants
FY 05

9
George Bernstein, CEO
President - Pearle Vision;  CFO and EVP Strategic
Planning - Cole National Corporation;  SVP,
General Manager - Things Remembered;  Bain and
Company
August, 2003
Jeanne Marie Welsko, 
VP - Human Resources
VP - Human Resources Nova Care, Inc.;  VP -
Human Resources Mellon Retail Bank, Philadelphia
September, 2003
Osborne F. Abbey, Jr. 
Ed.D.  VP - Education
Assistant Superintendent, Union, N.J. Public
Schools;  Superintendent, Bound Brook, N.J. Public
Schools;  Member, NJ Department of Education
December, 2003
Tom Frank, CFO
CFO - Broder Bros. Co.; CFO and EVP Finance -
Mothers Work, Inc.
January, 2004
Patricia Miller, COO
SVP Franchise Services - Sylvan Learning Centers;
VP Corporate Operations Nutri/System, Inc.
January, 2004
NLCI Executive Management

10
•
New Management Team, Board and Bank
•
Focus on our core business
NLCI has implemented significant changes over the past
three years

11
0.00
0.20
0.40
0.60
0.80
1.00
Non-Core Business
Core Business Operating
Pre-K to 8 Schools
NLCI has refocused investment allocation on our core
business of operating private schools
Operating
Profit
FY 99 -
03
Controllable
Investments
FY 99 -
03
Controllable
Investments
FY 2005

12
Pre-School
Pre-School
Pre-School
Pre-School
Elementary
School
Middle
School
Paladin
Program
Our growth will focus on filling existing geographic school
clusters and creating new ones

13
0
20
40
60
80
100
120
Pre-Schools
Elem. Schools
Elem./Middle
Schools
High Schools 
HLA
Special
Education
(Paladin
Academy)
NLCI operated 149 schools at FYE 2005, 90% of which are
now consistent with our core business
108
28
5
6
2/11
Clinics
Schools

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The top 40 providers account for only 25% of for-profit center revenues
Source: Childcare Exchange
The preschool industry is very fragmented, with the market
leader accounting for approximately 2.5% market share.
Nobel has opportunity to grow.
= ~10% of Top 40 Providers Capacity
US For Profit Child Care and Pre-School Market Revenue
(Based on 2003 Data)
0
500
1,000
1,500
2,000
2,500
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Revenue ($ Mn)
La Petite Academy
Learning Care
Group, Inc.
Bright Horizons
Family Solutions
Knowledge
Learning Corp
Nobel

15
Multi-Unit For Profit K-8 School Providers
(5)
-
5
10
15
20
25
30
35
40
45
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Estimated Revenue
($ 000)
Nobel
Aspen
Challenger
Educational
Services of
America
Stratford
Pine Crest
Brookfield*
2,500 Students
* Brookfield is owned by Bright Horizons
Source: Lochridge & Company Survey
NLCI is currently the largest operator of for-profit
elementary schools in the U.S.

16
We operate under multiple brands

17
•
There is exceptionally strong opportunity to grow our core business.
–
325 additional elementary schools
–
1475 additional pre-schools
•
We have developed a site analysis model to identify high potential
individual school locations and areas that can support school clusters
based on the market traits of our most successful schools/clusters.
•
We are identifying our most promising markets for clustering and
mapping “hot spots”
within each market. 
Our real estate analysis shows the domestic market
opportunity for our existing core business potential is
1800 schools.

18
NLCI operates in 13 states. Our focus is on technical
and professional economies.

19
NLCI operates a predominantly private pay model and
focuses on meeting the educational, enrichment and
lifestyle needs of students and their families
•
96% of our revenue is private pay
•
We offer one stop shopping for busy families
–
School day programs
–
Before and after school programs
–
Enrichment courses
–
Athletic programs
–
Summer camps
–
GAP camps
–
Transportation to and from public schools and NLCI cluster schools

20
12.0
12.6
8
th
Grade
8.7
9.0
7
th
Grade
9.6
8.5
6
th
Grade
8.1
7.5
5
th
Grade
6.1
7.0
4
th
Grade
4.8
5.0
3
rd
Grade
3.5
3.9
2
nd
Grade
2.5
2.8
1
st
Grade
1.3
1.4
Kindergarten
Math
Reading
Grade Level
*
These median scores reflect grade level equivalents of achievement for the 02/03 school
year.  For example: a 3rd Grade Reading score of 5.0 equals a 5th Grade Reading Level.
Our elementary schools emphasize value and accountability
for educational outcomes and NLCI students exceed
national grade level equivalents on standardized tests*

21
NLCI has implemented significant changes over the past
three years
•
New Management Team, Board and Bank
•
Focus on our core business
•
Growth in comparable school tuition for first time in 3+ years
(constant tuition dollars)

22
NLCI has achieved positive comparable school revenue
growth
FY 2002
FY 2003
FY 2004
FY 2005
5%
0%
(10%)
(2.3%)
+0.7%
(1.2%)
(6.3%)
Comparable School Revenue in Constant Tuition Dollars*
*Based on a 52 week fiscal year; Comparable schools open over the entire period FY02-FY05

23
NLCI has implemented significant changes over the past
three years
•
New Management Team, Board and Bank
•
Focus on our core business
•
Growth in comparable school tuition for first time in 3+ years
(constant tuition dollars)
•
NLCI performance has improved significantly
–
Stronger, simpler capital structure
–
Increased profitability
–
Improved stock price
•
NLCI has recently developed a five year strategic plan that focuses
on growing our company

24
Our strategy to grow the company and increase long term
shareholder value focuses on our base business
•
Grow revenue and margin in our school based pre-K model
•
Extend our market leadership in the for-profit K-8 school segment
•
Enhance revenue streams from education based products and
services
that
we
can
control
and
sell
to
pre-K
through
8
th
students
through our schools.

Nobel Learning Communities, Inc.
Financial Results

26
•
Retired all $10,000,000 of 13.25% Senior Subordinated Notes
•
Increased size of our Senior Revolving Credit facility to $10,000,000
•
Improved interest rate matrix on our Senior Credit facility
•
Converted 100% of Preferred Series A and Preferred Series C to
common stock
NLCI simplified and strengthened our capital structure
during fiscal 2005

27
Total Debt
$40.2
$35.5
$25.3
$15.5
$14.3
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
2002
2003
2004
2005
2006 Q2
Fiscal Year End
NLCI debt is down and free cash flow is up
Free Cash Flow
$1.9
$3.1
$5.3
$7.8
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
2002
2003
2004
2005
Fiscal Year End
Free Cash Flow = cash from operations less capital expenditures

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Gross Profit
(Based on 52 week fiscal year)
$18.7
$19.9
$21.8
$0.0
$10.0
$20.0
$30.0
2003
2004
2005
NLCI gross profit and net income are improving
Net Income
(Before effect of TES reserve in FY 2005)
-$11.5
-$6.1
$3.4
-$13.0
-$10.0
-$7.0
-$4.0
-$1.0
$2.0
$5.0
2003
2004
2005
Fiscal Year Ended
Gross Profit and Earnings Trends should be reviewed in conjunction with the Financial
Statements and Notes thereto filed with the SEC for the year ended July 2, 2005.
12.5%
12.8%
13.2%
Fiscal Year End

29
($0.30)
($0.42)
($0.18)
($0.11)
($0.53)
$0.07
$0.10
$0.12
$0.11
$0.10
$0.06
($1.11)
($0.76)
$0.20
($1.50)
($1.00)
($0.50)
$0.00
$0.50
Q1
Q2
Q3
Q4
NLCI EPS trend has improved steadily
2003
2005 ¹
2004
1
Third quarter Fiscal 2005 includes effect of TES reserve $0.10
Fiscal Year July -
June
2006

30
Monthly Closing Price
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Week Ended
NLCI stock price has reacted favorably to our strategy
and focus
Management and Board
Changes Initiated