EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation
Investor Presentation Q1, 2006
1
NOBEL LEARNING COMMUNITIES, INC.
September 14, 2006
Exhibit 99.1

Investor Presentation Q1, 2006
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 to successfully 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.

Investor Presentation Q1, 2006
3
NLCI BUSINESS SUMMARY
•
Established in 1982
•
For-profit operator of private preschools,
elementary/middle schools
•
FY
2006
1
revenues
of
approximately
$168
mm
•
Fiscal 2006 EPS of $0.44, a 69% increase
over Fiscal 2005
•
Strong cash flow and strong balance sheet
1
FY 2006 covered this period: July 2, 2005 through July 1, 2006

Investor Presentation Q1, 2006
4
NLCI BUSINESS MODEL PRINCIPLES
•
Preschool through eighth grade private
school education
•
Private pay
•
Small classes, nurturing environment
•
One-stop shopping
•
Curriculum-based with annual
standardized testing
•
Excellent value for educational outcomes

Investor Presentation Q1, 2006
5
NLCI OPERATES 150 SCHOOLS

Investor Presentation Q1, 2006
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OUR BRANDS
East                West
Specialized
Individual School Brands

Investor Presentation Q1, 2006
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COMPANY HISTORY
-
Revenue growth of 8.4% CAGR
-
Rapid growth from approximately 135 schools to 170 schools
-
Invested outside core business

Investor Presentation Q1, 2006
8
COMPANY HISTORY
-
Acquired schools with inconsistent real estate portfolio
-
Underinvested in infrastructure and people
-
Accumulated significant debt…and losses

Investor Presentation Q1, 2006
9
COMPANY HISTORY
-
Revamped Board of Directors
-
Built new management team
-
Focused resources on core business
-
Began to rationalize school portfolio

Investor Presentation Q1, 2006
10
EARLY 2004: A NEW TEAM IS RECRUITED
President -
Pearle Vision;  CFO and
EVP
Strategic
Planning
-
Cole
National
Corporation;
SVP,
GM
-
Things
Remembered;  Bain and Company
George Bernstein
CEO
VP HR -
NovaCare, Inc.;  VP HR -
Mellon Retail Bank, Philadelphia
Asst.
Superintendent
-
Union
NJ
Public
Schools;
Superintendent
-
Bound
Brook, NJ Public Schools
Jeanne Marie Welsko
Osborne F. Abbey, Jr.
Ed. D.
VP Human Resources
VP Education
CFO -
Broder
Bros. Co.; CFO/EVP
Finance
-
Mothers
Work,
Inc.
SVP
Franchise
Services
-
Sylvan
Learning Centers; VP Corporate
Operations
-
Nutri/System,
Inc.
Tom Frank
Patricia Miller
CFO
COO
EVP International and Corporate
Development
-
Right
Management
Consultants, Inc.
Lee Bohs
SVP Corporate
Development

Investor Presentation Q1, 2006
11
COMPANY HISTORY
-
Investment in critical success factors:
•
Real estate
•
Curriculum
•
People
-
Developed Strategic Plan

Investor Presentation Q1, 2006
12
Company History
-
Strong balance sheet to
support growth
-
Focus resources on growth
and implementation of the
strategic plan

Investor Presentation Q1, 2006
13
NLCI GROWTH STRATEGY
1.
Grow
the
retail
preschool
business
and
utilize
it,
where appropriate, to feed elementary school
enrollment
2.
Extend our market leadership in the for-profit K-8
private school business
3.
Add
education-based
enrichment
programs
that
can be sold to consumers through our schools and
other delivery channels
Our growth strategy consists of three prongs,
each building on the others

Investor Presentation Q1, 2006
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GROW PRESCHOOL BUSINESS -
LINKS TO LEARNING
Preschools will benefit from our new curriculum, including
Links
to
Learning,
which
connects
parents
to
what
their
child is learning in school

Investor Presentation Q1, 2006
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There are approximately 500 for-profit, private elementary
schools in the U.S., with few operators of size
EXTEND LEADERSHIP IN K-8 PRIVATE
SCHOOL BUSINESS
Source: Lochridge & Company Survey

Investor Presentation Q1, 2006
16
Our newest enrichment program will
support our elementary school science
and technology curriculum
•
Children’s Technology Workshops
–
State-of-the-art, computer-based
engineering and technology programs
–
Animation, engineering, robotics,
video game design, architecture,
fashion design
•
Summer camps, weekend and
after-school programs
ENRICHMENT PROGRAMS
TO LEVERAGE FIXED COSTS

Investor Presentation Q1, 2006
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NLCI STRATEGY -
COMPONENT INTEGRATION

Investor Presentation Q1, 2006
18
Financial Results
NOBEL LEARNING COMMUNITIES, INC.

Investor Presentation Q1, 2006
19
•
Created more clarity in our capital structure
–
Converted 100% of Preferred Series A and Preferred Series C  
to common stock
–
Preferred Series E has a 5% PIK, which can be paid in cash as
of 6/30/06;  converts 1:1 to common at $11.25; approx.
1.6 mm shares
–
Preferred Series F has a 5% PIK, which will be paid in cash
as of 9/30/06; converts 1:1 to common at $12.75; approx.
750K shares
–
Paid off our sub-debt
•
Converted warrants to common in June 2006
•
Expanded our credit facility and lowered our interest rate matrix
•
As of 7/1/06 net debt = $3.3 mm
SIMPLIFIED AND STRENGTHENED
CAPITAL STRUCTURE

Investor Presentation Q1, 2006
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Free Cash Flow = cash from operations less capital expenditures
NLCI DEBT IS DOWN AND FREE
CASH FLOW IS UP

Investor Presentation Q1, 2006
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NLCI GROSS PROFIT AND NET INCOME
ARE IMPROVING
Gross Profit and Net Income should be reviewed in conjunction with the Financial
Statements and Notes thereto filed with the SEC.

Investor Presentation Q1, 2006
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NLCI EPS TREND HAS IMPROVED STEADILY

Investor Presentation Q1, 2006
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NLCI STOCK HAS REACTED FAVORABLY
Management and Board
Changes Initiated

Investor Presentation Q1, 2006
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NOBEL LEARNING COMMUNITIES, INC.