Exhibit 99.1
NOBEL LEARNING COMMUNITIES Inc
Nobel Learning Communities, Inc.
Wedbush Securities
Management Access Conference
December 9, 2009
Nobel Learning Communities – Safe Harbor
NOBEL LEARNING COMMUNITIES Inc
Except for historical information contained in this press release, the information in this press release consists of forwardlooking
statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties that could cause actual results to differ materially from those in the forwardlooking
statements. Potential risks and uncertainties include among others, the implementation and results of the
Company’s ongoing strategic initiatives; the Company’s ability to compete with new or existing competitors; dependence
on senior management and other key personnel; changes in general economic conditions; and risks and uncertainties
arising in connection Corporation’s proposal Company with Knowledge Learning Corporation s unsolicited to acquire the Company. Other risks
and uncertainties are discussed in the Company’s filings with the SEC. These statements are based only on management’s
knowledge and expectations on the date of this press release. The Company will not necessarily update these statements
or other information in this press release based on future events or circumstances.
In this release, financial measures are presented both in accordance with United States generally accepted accounting
principles (“GAAP”) and also on a non-GAAP basis. Adjusted earnings and EBITDA in this presentation are non-GAAP
financial measures. EBITDA is commonly presented as a reconciliation starting with net income due to the number of
non-operating related items included in net income, we present EBITDA as derived from operating income as we believe
this provides the user the most useful and comparable information on an operating basis. The Company believes that the
use of certain non-GAAP financial measures enables the Company and its investors and potential investors to evaluate and
compare the Company’s results from operations generated from its business in a more meaningful and consistent manner
and provides an analysis of operating results using the same measures used by the Company’s chief operating decision
makers to measure the performance of the Company. Please see the financial summary in this presentation for
information reconciling non GAAP financial measures
2
non-measures to comparable GAAP financial measures.
NOBEL LEARNING COMMUNITIES Inc
NLCI Business Summary
• Leading education provider as an operator of 180+ private schools.
Revenue for fiscal year ended June 2009 increased y 8% to $220 mm
• Recently acquired a K-12 College Prep Online Distance Learning School
• Portfolio of schools consists of the following:
• Preschools
• Elementary and Middle schools
• Online K-12 Distance Learning School
• Dual income families; high average household income.
• Primarily private pay customer.
3
NOBEL LEARNING COMMUNITIES Inc
Platform spans PreK-12 with proprietary
curriculum and accredited programs
Program
Premier Portfolio
of Local Brands
Accreditations
National Curricula
21st Skills
4
21 Century
NOBEL LEARNING COMMUNITIES Inc
NLCI has multiple growth channels
Organic Growth: Generate enrollment growth g plus annual
tuition increases in existing schools; open new ones
Continue acquisition of K+ and Preschools
Expand online and distance learning presence into new
domestic and international market segments
5
NOBEL LEARNING COMMUNITIES Inc
Our platform strategy has dual tracks
Pure Play Preschool Track
• Curriculum based preschools
• Predictable cash flows
• Opportunity for quick gains in economic recovery
• Opportunity for growth through acquisitions at
i lil
6
attractive multiples
NOBEL LEARNING COMMUNITIES Inc
Our platform strategy has dual tracks
Integrated K-12 Track
• K-8 schools and K-12 distance learning
• Multiple delivery modalities; move to onsite/online model
• Strong growth opportunity
• Balance “onsite” capital requirements with online scalability
7
p q y
NOBEL LEARNING COMMUNITIES Inc
Building an onsite/online K-12 platform
• Ability to combine educational delivery models
Abilit t i t ti l k t
T diti l G d G d G d
• Ability to serve international markets
Traditional
Students
Grades
K-4
Grades
5-8
Grades
9-12
Now
F
Home
Brick
Future Brick
Distance Learning
Students
and
Click
Click
Now
Future
8
NOBEL LEARNING COMMUNITIES Inc
Combination strengthens both models in
the K-12 strategy track
Benefits for Traditional
School Students
Benefits for Distance
Learning Students
• Online course experience
• Personalized learning plans
• Enriched primary grades curriculum
• Classroom and socialization
• Customized math offerings opportunities
• Extended electives, languages
• Accelerated course offerings
• Summer school
• “Specials” classes—art, music, gym
• Athletic Teams
• Student collaborations, projects, clubs
• Online high school courses
• Gifted and Talented program
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NOBEL LEARNING COMMUNITIES Inc
Business model relationship to the
economy
Preschool Track K-12 Strategy Track
On – site On—line
Relationship
to • Lagging Indicator
• Local Economy
• Lagging indicator
• Local economy
• Slight lagging
Economy
indicator
• National economy
Largest • Unemployment • Unemployment • National public
Economic
Factor(s)
p y p y
• Local public school
funding
p
school funding
Growth
Impetus
• Job creation
• Program strength
versus competitors
• Optimism
• Job creation
• Trend to multiple
modalities
• Rapid penetration of
online education
• International demand
U S 10
delivery for U.S. diplomas
NOBEL LEARNING COMMUNITIES Inc
Learning Nobel Communities, Inc.
Financial Update
11
NOBEL LEARNING COMMUNITIES Inc
Key business model characteristics
Sources of Strength
• Revenue growth – tuition, enrollment, new facilities, acquisitions
• Strong – high student recurring revenues retention rate
Margin and Earnings Leverage
• Comparable school revenue growth = Margin expansion
• Distance learning online school delivers leverage with scalable platform
• $175,000 pretax income = $0.01 EPS
Attractive Cash Flow
• Generate cash before services delivered
• Modest capital requirements – real estate leased, not owned
• Dry powder—$75,000,000 revolving credit facility
– Substantial 40 000 000
12
availability at $40,000,000
NOBEL LEARNING COMMUNITIES Inc
Double-digit revenue growth
$220
$250
Net Revenue
$0.80
Adjusted Earnings Per Share
$181
$204
$200
$0.55
$0.67
$$0.60 0.53
$0.70
$150
Millions
$0.40
$0.50
$
50
$100
M
$0.20
$0.30
$-
2007 2008 2009
$-
$0.10
2007 2008 2009
13
See non-GAAP reconciliation table at the end of this presentation
NOBEL LEARNING COMMUNITIES Inc
Strong model in difficult economy
EBITDA
12.0%
EBITDA Margin
$17 9
$20.0
$20.9
$20.0
$25.0
9.9% 9.8% 10.0% 9.5%
17.9
$15.0
6 0%
8.0%
$10.0
4.0%
6.0%
$-
$5.0
Millions
0 0%
2.0%
14
$
2007 2008 2009
M
See non-GAAP reconciliation table at the end of this presentation
0.0%
2007 2008 2009
NOBEL LEARNING COMMUNITIES Inc
Recent performance
Q1 2010
• Revenue 50 6 v 50 flat year over year at $50.6 v. $50.9 million
• Generated EBITDA of $850,000 in our seasonally weakest quarter
– TTM EBITDA = $19.4 MM
• EPS Q1 2010 = ($0.14) compared to Q1 2009 = ($0.03)
• Q2 October/November comparable school revenue trend update
– Rate of student withdrawals appears to be improving
– Comparable school revenue trend is stable
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NOBEL LEARNING COMMUNITIES Inc
Capital structure supports acquisition
strategy
$40.0 1.6
As of the First Quarter period end
• We have made $20 for each fiscal year
million in acquisitions
1.5
1.2
1.4
$30.0
$35.0
q
over the past 12
months and maintained
$28.9
0.8
0.8
1.0
$20.0
$25.0
modest leverage
• sheet
$15.7
0.4
0.6
$10.0
$15.0
Our balance sheet,
capital structure and
leverage are strong and
?
0.2
$?
$5.0
g g
support our planned
acquisition strategy
16
$
2009 2010
Net Debt EBITDA Leverage
NOBEL LEARNING COMMUNITIES Inc
Nobel Learning Communities, Inc.
Appendix
18
NOBEL LEARNING COMMUNITIES Inc
Non-GAAP Reconciliation – Fiscal Years
2009 2008 2007
Net income $ 4,564 $ 7,678 $ 7,365
(Amounts in thousands except per share data; net income per share totals may not sum due to rounding)
Fifty Two Weeks Ended
Deferred Loan Fees Charge - - 343
Gain on contract settlement - - (2,013)
Gain on asset sale - - (1,335)
Change in Accounting Estimate - - 208
Lease exit costs for closed schools, net of tax 125 - 1,242
Change in Accounting Estimate - re-determination of useful life -
depreciation for closed schools, net of tax 619 - -
Professional fees for evaluation of Company sale process, net of tax 226 - -
Professional fees for DOJ lawsuit, net of tax 176 - -
Realization of gain contingency on lease contract net of related
property costs, net of tax - (572) -
Total adjustments, net of tax 1,146 (572) (1,555)
Adjusted net income $ 5,710 $ 7,106 $ 5,810
Weighted average diluted shares outstanding 10,701 10,630 10,580
Adjusted net income per share $ 0.53 $ 0.67 $ 0.55
Operating Income $ 10,258 $ 12,135 $ 10,371
Items excluded from operating income to reconcile non-GAAP
operating income:
Stock based compensation 1,012 717 675
Depreciation 9 668 7 200 6 814
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and amortization 9,668 7,200 6,814
Total adjustments 10,680 7,917 7,489
EBITDA $ 20,938 $ 20,052 $ 17,860