EX-99.1 2 dex991.htm PRESENTATION OF THE REGISTRANT AT THE BACK TO SCHOOL 2007 EDUCATION CONFERENCE Presentation of the Registrant at the Back to School 2007 Education Conference
Investor Presentation FY2007
1
NOBEL LEARNING COMMUNITIES, INC.
September 11, 2007
Exhibit 99.1

Investor Presentation FY2007
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 FY2007
3
NLCI BUSINESS SUMMARY
•
Premier operator in the for-profit private preschool,
elementary/middle school and specialty school market
–
Largest K-8 operator
–
#4 preschool operator; largest predominantly private pay
•
Education market is expected to grow at 6.4% per year
–
Extremely fragmented: provides rollup growth opportunity
–
Tuition increases of 3% to 5% per year
•
Excellent target market characteristics:
–
Dual income, high HH income families;            
professional and technical employment
–
Existing portfolio in high growth states and markets
•
3 year Net Income CAGR of over 30%

Investor Presentation FY2007
4
NLCI BUSINESS MODEL PRINCIPLES
•
Focus on three growing trends faced by families
–
Dual income and single parent households
–
Frustration with public schools
–
Assure child’s success in "Flat World"
•
“Cluster”
School Model
–
Feeder preschools support K-8 occupancy
–
Operating and marketing economies
–
Incremental students provide exceptional margins
•
Small classes and broad programs to meet family
before/after school and summer needs
•
Curriculum-based with standardized testing providing
excellent value for educational outcomes

Investor Presentation FY2007
5
School Locations by State

Investor Presentation FY2007
6
WE OPERATE UNDER MULTIPLE BRANDS
East                West
Specialized
Individual School Brands

Investor Presentation FY2007
7
NLCI GROWTH STRATEGY
1.
Grow the 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 FY2007
8
GROW PRESCHOOL BUSINESS
Retail Marketing Approach
Preschools will benefit from our new curriculum, which connects
parents to what their child is learning in school

Investor Presentation FY2007
9
GROW ELEMENTARY/MIDDLE SCHOOL BUSINESS
Differentiate Schools Through Curriculum Delivery Model
•
Utilize national network of schools to create extraordinary
"distance" learning projects, student interactions and
classroom experiences
•
Develop advanced skills to succeed in 21st century economy

Investor Presentation FY2007
10
NLCI STRATEGY -
COMPONENT INTEGRATION

Investor Presentation FY2007
11
Financial Results
NOBEL LEARNING COMMUNITIES, INC.

Investor Presentation FY2007
12
•
Education
traditionally
experiences
annual
tuition
increase
of
3%
-
5%
•
Margin leverage opportunity from incremental students
•
Recurring
revenues
–
high
student
retention
rate
•
Generates cash before services delivered
•
Modest
capital
requirements
–
real
estate
leased,
not
owned
•
Fragmented
market
–
growth
by
acquisition
and
new
development
KEY BUSINESS MODEL CHARACTERISTICS

Investor Presentation FY2007
13
WE HAVE ENTERED A GROWTH PHASE
Net Revenue
$152
$158
$162
$183
$-
$50
$100
$150
$200
2004
2005
2006
2007
Revenue should be reviewed in conjunction with the Financial Statements and Notes thereto filed with the SEC.
Comparable School
Revenue Growth
2.8%
3.7%
1.5%
4.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2004
2005
2006
2007
Revenue Growth     5.8%      3.9%      2.5%    13.0%

Investor Presentation FY2007
14
GROSS PROFIT AND NET INCOME ARE INCREASING
Gross Profit and Net Income should be reviewed in conjunction with the Financial Statements and Notes thereto filed
with
the
SEC.
Net
Income
for
FY
2007
and
FY
2005
–
EPS
shown
represent
results
adjusted
for
non-recurring
items
in those respective fiscal periods.
Gross Profit / Gross Margin
$20.4
$22.0
$23.0
$27.5
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2004
2005
2006
2007
Net Income
$3.4
$4.5
$5.8
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2005
2006
2007
Gross Margin      13.5%     14.0%     14.2%     15.0%
CAGR 30.6%

15
Fiscal Quarter - EPS
$(0.18)
$(0.11)
$(0.10)
$0.10
$0.12
$0.15
$0.15
$0.18
$0.21
$0.20
$0.22
$0.25
$(0.20)
$(0.10)
$-
$0.10
$0.20
$0.30
2005
2006
2007
Fiscal Year
Q1
Q2
Q3
Q4
NLCI EPS TREND HAS IMPROVED STEADILY
For FY 2007 and FY 2005 –
EPS shown represent results adjusted for non-recurring items in those
respective fiscal periods.  See Financial Statements and Notes thereto filed with the SEC. 
Fiscal Year - EPS
$0.35
$0.44
$0.55
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
2005
2006
2007
Fiscal Year
Fiscal Year –
July through June
CAGR 25.4%

Investor Presentation FY2007
16
Free Cash Flow = cash from operations less capital expenditures
NLCI DEBT IS DOWN; FREE CASH FLOW IS UP
Total Debt
$35.5
$25.3
$15.5
$13.2
$0.0
$-
$10.0
$20.0
$30.0
$40.0
2003
2004
2005
2006
2007
Free Cash Flow
$3.1
$5.3
$7.9
$8.3
$11.5
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2003
2004
2005
2006
2007
CAGR   38.2%

Investor Presentation FY2007
17
STRONG CAPITAL STRUCTURE
•
Fully diluted shares of 10,600,000
•
Converted Preferred to Common -
eliminated
dividends
•
Paid off all sub-debt and senior term debt
•
$50 million revolving credit facility
–
At
June
30,
2007
facility
unused
–
No
outstanding
debt
–
Provides flexible, efficient expansion capacity
–
Low leverage to cash flow
•
Market cap of around $150 million

Investor Presentation FY2007
18
Per Share Closing Price
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
NLCI STOCK HAS REACTED FAVORABLY
Management and Board
Changes Initiated

Investor Presentation FY2007
19
NOBEL LEARNING COMMUNITIES, INC.