EX-99.1 2 dex991.htm PRESENTATION FOR SECOND ANNUAL SMALL CAP INVESTOR CONFERENCE Presentation for Second Annual Small Cap Investor Conference
1
NOBEL LEARNING COMMUNITIES, INC.
June 2008
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
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.

3
NLCI BUSINESS SUMMARY
•
Premier operator in the for-profit private preschool,
elementary/middle school and specialty school market
–
Largest K-8 and # 4 preschool 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 > 30%

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 the “21
st
Century Economy”
•
Curriculum-based with standardized testing providing
excellent value for educational outcomes
•
“Cluster”
School Model
–
Feeder preschools support K-8 occupancy
–
Operating and marketing economies
•
Programs to meet family after school, summer needs

5
Our preschool curriculum connects parents to
what their child is learning in our schools

6
Our K-8 Schools are Differentiated 
Through Our 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

7
WE OPERATE UNDER MULTIPLE BRANDS
East               West
Specialized
Individual Market Brands

8
1
1
5
3
1
SCHOOL LOCATIONS BY STATE
1
8
9
38
2
6
14
7
2
16
19
19
25

9
NLCI GROWTH STRATEGY

10
Growth Source
2006
2007
2008 YTD
Comparable Schools
Tuition Increase
3.8%
3.8%
Enrollment Increase
0.6%
0.4%
Total
1.5%
4.4%
4.2%
New Schools
1
2
4
Acquisitions - Completed
Preschools
0
7
17
Before and After Programs
0
0
7
Elementary
0
1
2
NLCI GROWTH STRATEGY -
EXECUTION
On
pace
to
top
$200mm
in
revenues
for
1
st
time
in
Company
history

11
NOBEL LEARNING COMMUNITIES, INC.
Financial Results

12
Revenue Growth
•
Sources of growth –
tuition, enrollment, new facilities, acquisitions
•
Strong recurring revenues –
high student retention rate
Margin and Earnings Leverage Opportunity
•
Margin expansion from comparable revenue growth
•
$175,000 pretax income = $0.01 EPS
Attractive Cash Flow
•
Generate cash before services delivered
•
Modest capital requirements –
real estate leased, not owned
Capital Structure Strength
•
One class of common stock -
10,392,000 shares outstanding
•
Dry powder -
$75,000,000 revolving credit facility
KEY BUSINESS  CHARACTERISTICS

13
DOUBLE-DIGIT REVENUE GROWTH
Revenue should be reviewed in conjunction with the Financial Statements and Notes thereto filed with the SEC.
Comparable School Revenue
Growth
3.7%
1.5%
4.4%
4.9%
4.2%
2.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Revenue Growth   5.8%  3.9%   2.5%  13.0%      12.9%   11.4%
39 weeks
2007  2008
39 weeks
2007  2008
Net Revenue
$152
$158
$162
$183
$134
$149
$-
$50
$100
$150
$200

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STRONG GROSS PROFIT AND NET INCOME GROWTH
Gross Profit and Net Income should be reviewed in conjunction with the Financial Statements, Notes and M,D&A filed with the SEC.
Net Income results for 2007 and  2005 are adjusted to remove non-recurring items in those respective fiscal periods.
Gross Profit / Gross Margin
$20.4
$22.0
$23.0
$27.5
$18.9
$21.0
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Net Income
$3.4
$4.5
$5.8
$3.1
$4.3
$-
$1.4
$2.8
$4.3
$5.7
Gross Margin      13.5%   14.0%  14.2%  15.0%  
14.1%
14.1%
CAGR  30.6%
39 weeks
2007  2008
39 weeks
2007  2008

15
Our execution provides leverage even with current
economic conditions
Comparable Schools
March 29,
2008
March 31,
2007
Increase
(Decrease)
Percent
Increase
(Decrease)
Thirteen Weeks
Revenue
50,043
$   
48,792
$   
1,251
$     
2.6%
Personnel Costs
23,724
     
23,264
     
460
           
2.0
            
School Operating Costs
5,995
       
5,941
       
54
             
0.9
            
Rent and Other
11,629
     
11,188
     
441
           
3.9
            
Gross Profit
8,695
$     
8,399
$     
296
$        
3.5%
Thirty-nine Weeks
Revenue
132,750
$ 
127,361
$ 
5,389
$     
4.2%
Personnel Costs
63,781
     
61,685
     
2,096
       
3.4
            
School Operating Costs
17,746
     
17,623
     
123
           
0.7
            
Rent and Other
31,640
     
30,405
     
1,235
       
4.1
            
Gross Profit
19,583
$   
17,648
$   
1,935
$     
11.0%

16
Fiscal Quarter - EPS
$(0.18)
$(0.11)
$(0.10)
$(0.03)
$0.10
$0.12
$0.15
$0.20
$0.15
$0.18
$0.21
$0.24
$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
STRONG EARNINGS TRENDS
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%
EPS  should be reviewed in conjunction with the Financial Statements, Notes and M,D&A filed with the SEC.
EPS results for 2007 and  2005 are adjusted to remove non-recurring items in those respective fiscal periods.

17
Free Cash Flow = cash from operations less capital expenditures
LOW DEBT AND INCREASING CASH FLOW
Total Debt
$35.5
$25.3
$15.5
$13.2
$0.0
$17.3
$-
$10.0
$20.0
$30.0
$40.0
2003
2004
2005
2006
2007
Free Cash Flow
$8.3
$7.9
$3.1
$5.3
$11.5
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
CAGR  38.2%
3Q 08

18
•
Education is a Growth Market
•
Only Public Company in Preschool and K-8 Space
•
Our Growth Produces Double-Digit Revenue and Earnings Growth
•
Margin and Earnings Leverage
•
Attractive Cash Flow
•
Growth through Acquisitions
•
Strong Capital Structure  –
Dry Powder
INVESTMENT HIGHLIGHTS

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NOBEL LEARNING COMMUNITIES, INC.