EX-99.1 2 dex991.htm PRESENTATION Presentation
Investor Presentation -
Signal Hill November 2007
1
NOBEL LEARNING COMMUNITIES, INC.
Exhibit 99.1

Investor Presentation -
Signal Hill November 2007
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 -
Signal Hill November 2007
3
NLCI BUSINESS SUMMARY
•
Premier operator in the for-profit private preschool,
elementary/middle school and specialty school market
–
# 4 preschool and largest K-8 operator
–
Predominantly private pay
•
Education market expected to grow at 6.4% per year
–
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 markets
•
3 year Net Income CAGR of over 30%

Investor Presentation -
Signal Hill November 2007
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
•
Programs to meet family after school, summer needs
•
Curriculum-based with standardized testing providing
excellent value for educational outcomes

Investor Presentation -
Signal Hill November 2007
5
SCHOOL LOCATIONS BY STATE

Investor Presentation -
Signal Hill November 2007
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WE OPERATE UNDER MULTIPLE BRANDS
East                West
Specialized
Individual School Brands

Investor Presentation -
Signal Hill November 2007
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 -
Signal Hill November 2007
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GROW PRESCHOOL BUSINESS
Retail Marketing Approach
Our curriculum connects parents to what their child is
learning in school

Investor Presentation -
Signal Hill November 2007
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GROW ELEMENTARY/MIDDLE SCHOOL BUSINESS
Differentiate Schools Through Curriculum Delivery Model
•
Utilize national network of schools to create extraordinary
"distance" learning experiences and student interactions
•
Develop advanced skills to succeed in 21st century economy

Investor Presentation -
Signal Hill November 2007
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NLCI STRATEGY -
COMPONENT INTEGRATION

Investor Presentation -
Signal Hill November 2007
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Financial Results
NOBEL LEARNING COMMUNITIES, INC.

Investor Presentation -
Signal Hill November 2007
12
Revenue Growth
•
Three sources of growth
•
Annual tuition increase of 3% -
5% -
1Q 2008 = 3.8%
•
Comparable school enrollment increases –
1Q 2008 = 1.6%
•
Acquisitions and new development –
YTD added 5 by acquisition and 4 by
new development
•
Strong recurring revenues –
high student retention rate
Margin Leverage Opportunity
•
Margin expansion from comparable school enrollment growth
Earnings Leverage
•
$175,000 pretax income = $0.01 EPS
KEY BUSINESS  CHARACTERISTICS

Investor Presentation -
Signal Hill November 2007
13
Cash Flow
•
Generate cash before services delivered
•
Modest capital requirements –
real estate leased, not owned
Capital Structure Strength
•
One class of common stock -
10,600,000 shares diluted
•
Dry powder -
$50,000,000 revolving credit facility available
•
$150,000,000 plus market cap
Governance Quality
•
Strong board of directors for company of this size
•
ISS CGQ -
Governance Index Rating = 84.8
KEY BUSINESS  CHARACTERISTICS

Investor Presentation -
Signal Hill November 2007
14
WE HAVE ENTERED A GROWTH PHASE
Net Revenue
$152
$158
$162
$183
$39
$45
$-
$50
$100
$150
$200
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%
4.9%
5.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Revenue Growth   5.8%  3.9%   2.5%  13.0%   9.1%   14.1%

Investor Presentation -
Signal Hill November 2007
15
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
$3.2
$4.1
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Net Income
$3.4
$4.5
$5.8
$(0.7)
$(0.3)
$(1.1)
$0.3
$1.7
$3.2
$4.6
$6.0
Gross Margin      13.5%   14.0%  14.2%  15.0%    8.2%   9.2%
CAGR 30.6%

Investor Presentation -
Signal Hill November 2007
16
Fiscal Quarter - EPS
$(0.18)
$(0.11)
$(0.10)
$(0.03)
$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
2008
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 -
Signal Hill November 2007
17
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
$12.6
$0.0
$-
$10.0
$20.0
$30.0
$40.0
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
CAGR   38.2%

Investor Presentation -
Signal Hill November 2007
18
NLCI STOCK HAS REACTED FAVORABLY
Per Share Closing Price
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
New CEO hired
8-2003
Senior Management Team in place
HR, Education, COO, CFO
9-2003 through 1-2004
SVP Corporate
Development starts
NLCI reports first double
digit revenue increase in
over five years 2-2007

Investor Presentation -
Signal Hill November 2007
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NOBEL LEARNING COMMUNITIES, INC.