FINALIST: Michael Delahunt - Alexander Schlatter - Jacob Silbermann - Ian Socrates

1. Michael Delahunt | Alexander Schlatter | Jacob Silbermann | Ian Socrates
Patterson Education Group
1

2. Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 12
Strategic Options 17
Final Thoughts 23
Appendix 25
Agenda
2

3.  Analysis of industry transactions and potential for
synergies along with continued strong market
conditions points to a recommendation of
pursuing a sale to a strategic buyer
Sell-Side Advisory
Compelling Story
 Patterson Education Group is a scalable education
platform delivering exceptional student outcomes
for students who seek a more individualized
school experience
 Maintains market position with the only nationally
accredited educational platform, a talented
executive team, individually tailored curriculums,
and an emphasis on company culture
 Valuation analysis places PEG’s enterprise value
between $157mm - $177mm
 2017E Revenue: $195.8mm
 2017E EBITDA $17.1mm
Potential Buyers
Valuation Overview
Attractive Investment in an Emerging Company
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 3
100 120 140 160 180 200 220 240
Leveraged Buyout (8.1x - 9.1x)
DCF - Exit Multiple (11.8x -
13.3x)
DCF - Perpetuity (7.5x - 8.6x)
Comparable Analysis (6.8x -
8.0x)
Precedent Analysis (7.7x - 9.5x)
Enterprise Value ($mm)

4. Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 13
Strategic Options 19
Final Thoughts 25
Appendix 27
Agenda
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 4

5. Commentary
Projected Growth in Households Earning Over $100,000 (US)
$0
$20,000
$40,000
$60,000
$80,000
2009 2010 2011 2012 2013 2014 2015 2016 2017P
20%
22%
24%
26%
28%
30%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
 Increase in birth rates coupled with an
improvement in high school retention
rates is forecasted over the next five
years to 2022
 Growth in the number of K-12 students
is anticipated at an annualized rate of
0.2% from 2017 to 2022
 Supplemented by population
growth
 Percentage of high-earning households
will continue to grow steadily
 Forecasted to reach 28% in 2022
Private Schools Revenue Growth
Domestic Growth Potential
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 5
$Millions

6. Egypt
Indonesia
China
India
Saudi Arabia
Vietnam
Turkey
Morocco
Brazil
South Africa
Mexico
Hungary
Russia
Poland
-20 0 20 6040 80
Real Period Growth Over 2010-2015, %
Growth in Consumer Expenditure on Education in EMES
 Higher education standards are vital to
emerging countries as economies are
shifting towards value-added sectors
 Better education contributes to rising
incomes which fuel middleclass
expansion and consumption
 52% of the population aged 15+ will
have secondary education while 11.7%
of them will attain higher education by
2030
Rising Demand for Skilled Labor
International Industry Landscape
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 6

7. 7
 Students are under immense pressure
 All energy is devoted to test preparation
 Very little time for play, lack of individualized
learning plans, or teacher attention
 Not every student continues their education to
the next level as acceptance rates lower
 English is required for all students to learn and is
often the determinate of salary and job
advancement
K-12
Pre-K and K Education
 Fierce competition drives parents to start early as
possible to give kids an advantage, driving growth
in private school and after-school training services
 Pre-K-K education is focused on improving
chances for admittance to best primary school
 Public Kindergartens are 3-6x cheaper than private
ones, teachers and paid less but get government
benefits- quality varies widely
China’s Education Environment
Chinese Education Acceptance Rates
Primary to middle school
99%
Middle to high school
74%
College entrance exam
23%
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 7

8. Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 13
Strategic Options 19
Final Thoughts 25
Appendix 27
Agenda
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 8

9. EBITDA Growth and Margins ($ in millions)
35%
52%
13%
Direct Costs
Indirect Costs
Corporate
Overhead
2017E Cost Breakdown
 Patterson Education Group is a
revolutionary community of
learning that combines positive
relationships and personalized
learning solutions to unlock
academic and individual potential
 The Company’s model utilizes a
small classroom setting with a high
level of direct teacher interaction,
flexible scheduling options, and its
proprietary online platform to
tailor curriculum to each student
 Offers an attractive alternative to
students who have not fit well in a
traditional classroom setting while
commanding a premium price
point with an average tuition of
$25,000 per year
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
2015A 2016A 2017E 2018P 2019P 2020P 2021P 2022P
EBITDA EBITDA Margin
PEG’s Profile
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 9

10. 11795
4841
3423
2470
2455India
United Kingdom
Germany
Japan
China
2017E Top 5 GDP Outside US ($ in billions)
Commentary
 Because of the premium price point and
reliance on technology, growth into
countries with top GDP’s would be ideal
Existing and New Market Entry
 Current domestic markets include
Ohio, New York, New Jersey,
Maryland, Pennsylvania,
Connecticut, Washington D.C.,
Illinois, Indiana, Wisconsin,
Washington and Oregon
 The Company has
planned expansion into
Florida and Colorado
with more states soon to
follow
Evolution into New Markets
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts 10

11. WS
O T
Growth Potential
11
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
 Proprietary platform is positioned for
superior growth and value generation
 Accredited by 5 of 6 major regional
accrediting groups  Dedication to individual education
and small classroom settings increases
the need for additional staffing
 Varying intra year seasonality
produces inconsistent cash flows
 Expand domestic school spaces
and penetrate international markets
 Grow enrollment and utilize flexibility
via more open hours and enlarged
summer offerings
 Increase tuition across markets to
further ancillary offerings and maintain
premium pricing
 Expert senior management team
with a desire to remain with the
company to oversee growth
 Development into international
markets may be restricted by
the lengthy accreditation
process
 Limited current enrichment and
ancillary offerings may deter
prospective students

12. Agenda
12
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 12
Strategic Options 17
Final Thoughts 23
Appendix 25

13.  Chosen precedent transactions were derived from
similar business models and the application of online
and offline services
 Undisclosed private deals pose a challenge when
assessing precedent transactions
Precedent Transaction Analysis
13
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Commentary Derived Valuation
High 107.01% 2.64x 20.81x 10.96x
3rd Quartile 96.44% 1.25x 17.30x 9.58x
Mean 54.39% 1.03x 13.55x 7.34x
Median 46.67% 0.98x 15.27x 7.69x
1st Quartile 17.98% 0.38x 9.74x 5.13x
Low 13.70% 0.31x 2.78x 2.40x
PEG's 2017E EBIDTA
Comparable Multiple Range 7.7x 9.5x
Enterprise Value 131.7 162.7
$17.1
Transaction Accouncement Transaction
Target Company Acquirer Type Date Value Revenue EBIT EBITDA
Capella Education Company Strayer Education Inc. Strategic Takeover 10/30/2017 733 13.70% 16.70x 11.28x 8.57x
McGraw-Hill Education Apollo Global Education LLC Strategic Takeover 11/26/2013 2,400 -- 1.05x 9.23x 5.47x
GABA Corp NichiGaken Co Ltd Strategic Takeover 8/5/2011 2,668 53.21% 0.38x 2.78x 2.40x
UP Inc Benesse Holdings Financial Sponser 1/31/2017 8,821 92.91% 1.25x 15.98x 9.87x
SmartPros Ltd Graham Holdings Co Financial Sponser 12/23/2015 12 40.13% 0.98x 17.74x 6.81x
Somos Education SA Tarpon Investimentos Sa Financial Sponser 2/9/2015 668 -- 2.64x 15.25x 10.96x
Wao Corp NA Holding Financial Sponser 12/20/2011 5,176 107.01% 0.31x 15.29x 6.79x
Nobel Learning Communities Inc Leeds Equity Advisors Inc. Financial Sponser 5/18/2011 140 19.40% 0.59x 20.81x 8.71x
($ in millions, except for price. Data as of October 22, 2017)
Premium
Transaction Value

14. Commentary Derived Valuation
 Comparable companies derive revenue from similar
operations
 Companies utilize both technology platforms as well
as brick and mortar locations for education
Comparable Company Analysis
14
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
($ in millions, except for price. Data as of October 22, 2017)
Market Enterprise LTM 2017E LTM Enterprise value
Company Name Ticker Share Price Captalization Value EBITDA Revenue EBITDA Revenue EBITDA Margin LTM EBITDA 2017E EBITDA 2017E Revenue
Cambium ABCD $6.49 287 384 $46 $156 45 162 29.4% 8.38x 8.52x 2.37x
Bridgepoint Education BPI $9.81 281 114 $33 $510 30 485 6.1% 3.41x 3.82x .23x
K12 Inc. LRN $17.43 736 312 $96 $889 96 889 10.8% 3.26x 3.26x .35x
American Public Education APEI $1.92 332 249 $61 $300 48 295 20.3% 4.09x 5.2x .83x
National American University NAUH $1.92 42 47 -$2 $85 -1 87 -1.3% NA NA .55x
Career Education CECO $10.40 742 494 $67 $631 61 600 10.7% 7.35x 8.1x .78x
Lincoln Educational Services LINC $2.23 56 80 $3 $227 5 227 1.4% 25.77x 16.65x .35x
PEG 17.1 196 5.0%
PEG's 2017E EBIDTA
Comparable Multiple Range 6.8x 8.3x
Enterprise Value 116.3 141.9
$17.1
$17.43 742 494 96 889 96 889 29.4% 25.77x 16.65x .56x
$10.11 534 348 64 571 51 514 13.2% 8.12x 8.42x .81x
Mean $7.17 354 240 43 400 37 368 10.3% 8.71x 7.59x .78x
$6.49 287 249 46 300 37 261 8.4% 5.72x 6.65x .55x
$2.08 169 97 18 192 8 188 4.1% 3.58x 4.17x .35x
$1.92 42 47 -2 85 -1 87 -1.3% 3.26x 3.26x .23x
1st Quartile
Minimum
Max
3rd Quartile
Median

15. Discounted Cash Flow Analysis
($ in thousands) Estimated
2017E 2018P 2019P 2020P 2021P 2022P
EBITDA $17 $19 $30 $31 $34 $41
Depreciation & Amortization (11.1) (11.6) (12.5) (12.2) (11.7) (13.2)
EBIT $6 $8 $18 $19 $23 $28
Taxes (2.1) (2.7) (6.2) (6.5) (8.0) (9.7)
NOPAT $4 $5 $12 $12 $15 $18
Plus: Depreciation & Amortization 11.1 11.6 12.5 12.2 11.7 13.2
Plus: New School/Other Addacks 7.4 7.5 7.5 7.9 8.5 9.1
Less: Capex ($6.8) ($7.0) ($6.9) ($7.5) ($7.8) $0.0
Less: Changes in NWC (13) (6) (3) (1) 0
Free Cash Flows $4.3 $19.0 $21.5 $25.9 $40.8
PV of FCF 3.8 14.5 14.4 15.2 20.9
Projected($ in millions)
Commentary
 Comparable assumption
 Beta derived from comparable average of
unlevered betas
 Assumes PEG constructs an average of 5 school
per year
 Growth Assumption
 A nearly 21% increase in EBITDA margin in
terminal year gives higher valuation to exit
multiple method
Derived Valuation
Discounted Cash Flow Analysis
15
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Perpetuity Growth Rate 2.5%
Terminal Value 181.5
PV of Terminal Value 93.0
Plus: Sum of Future Cash Flows 68.8
Enterprise Value 161.8
Perpetuity Growth Method
Capital Structure
Debt 25.00
Market Value of Equity 20.80
Beta 1.79
Equity Risk Premium 6.0%
Risk Free Rate 2.4%
Cost of Equity 13%
Tax Rate 35%
Cost of Debt 4.3%
WACC 14.30%
WACC Calucation
Exit Multiple 7.5x
Terminal Value 307.1
PV of Terminal Value 157.4
Plus: Sum of Future Cash Flows 68.8
Enterprise Value 226.2
Exit Multiple Method

16. Commentary
 Financial sponsor acquisition with the
assumptions that no schools will be
built
 Enhances return on equity through the
use of 52.2% senior debt financing
 Use of 77.0M of debt and 70.4M
of sponsor equity
Capital Structure
Sensitivity Analysis
Assumptions
 Assumes a 8.6x exit multiple with a
8.6x entry multiple
 Leverage 4.5x EBITDA with senior
debt with 100% free cashflow for
debt repayment
Leveraged Buyout Analysis: Financial Sponsor Acquisition
16
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
$0.00
$25.00
$50.00
$75.00
$100.00
$125.00
2018E 2019P 2020P 2021P 2022P
Equity Debt
$Millions
147.30 7.6x 8.1x 8.6x 9.1x 9.6x
23.0% 150.0 154.7 159.5 164.3 169.1
25.0% 143.0 148.0 153.1 158.2 163.3
27.0% 136.6 142.0 147.3 152.6 158.0
29.0% 130.9 136.4 142.0 147.6 153.2
31.0% 125.6 131.4 137.2 143.0 148.8
SponsorTargetIRR
Exit Multiple

17. Agenda
17
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 12
Strategic Options 17
Final Thoughts 23
Appendix 29

18.  2.3 million students in 42 cities all over china and more than 18 million
students partaking in online education resources
 Internet education platform supports 31 million monthly active users
 Offers comprehensive tutoring services to K-12 students
 Technology collects and analyzes student data to create a personalized
education tailored to the individual
 Over half a million current learners across 8 countries
 Offers educational programs and services at ground locations throughout
the United States
LTM sales of 4.8B
 Operates in more than 80 countries
 Focus on high-growth countries, like China, Brazil, India, and South
Africa creates opportunity for PEG's international expansion
LTM sales of 1.2B
LTM sales of 2B
Metrics Rationale
 Leading provider of personal tutoring services for primary and
secondary students in China
 Gives The Company an international presence in education
N/A
Strategic Buyer Synopsis
18
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts

19.  Focus on personalized learning is consistent with PEG’s model
 Offer a wide variety of summer programs
 46 International schools in 17 different countries coupled with the
Global Campus, connects students around the world
LTM sales of 1.6B
 Has a presence both globally and in attractive, high-worth locations
 Purchase will enable Adtalem to diversify their product offerings and
upsell their undergraduate programs
LTM sales of 631M
 Footprint coast to coast in high value markets
 Aims to facilitate growth inorganically through K12 education
services to complement their undergraduate programs
LTM sales of 156M
 Similar business model in serving K12 students
 Strong technological applications will compliment PEG’s aim to gain a
stronger presence online
 Can diversify their offerings with the implementation of a brick and
mortar presence
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Strategic Buyer Synopsis
19
LTM sales of 908.8M
RationaleMetrics

20. N/A but recently
invested $91mm in equity
 Largest private equity firm with an exclusive focus on the Knowledge Sector
 Advisory board includes leaders in education, business, and public service
 Works closely with senior management to increase operational efficiency, drive
growth and profitability and create long-term business value
Equity value of $5 -
30mm but is able to
partner for more equity
 Partners with companies’ management teams to help systematize, professionalize,
and scale the existing company
 Provides an expansive view of the education ecosystem
Equity value between
$10 - 25mm
 Offers capital to distinctive companies that have reached proof of concept and
commercial adoption, and are ready for scale
 Invests in growing companies that are transforming American education
N/A
 Sector-focused approach that includes media, communications, education and
information industries
 Employs experienced operating partners to implement efficient capital structures
 Investments in educational companies including Blackboard, NACE Schools and
Study Group
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Financial Sponsor Synopsis
20
RationaleMetrics

21. Equity value
of $5 - 15mm
 Invests in companies with quality products and services which improve
the K-12 and post secondary systems
 Works to build new programs, access new customer groups, develop
new sales channels, optimize cost, broaden product portfolios, make
acquisitions, and pursue other value creation initiatives
Equity value of
$15 - 50mm
 Focuses on sectors including technology business services, media,
education and communications
 Works hand-in-hand with management teams to achieve operational
and strategic goals
Equity value
of $5-15mm
Equity value of
$10 - 30mm
 Invests in companies with compelling customer value proposition
and meaningful growth opportunities
 Current investments; Cooperative Strategies and Atomic Learning
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Financial Sponsor Synopsis
21
RationaleMetrics
 Pursues a tenured team of owners or managers who seek a partner
focused on long-term value creation
 Invests in companies with competitive advantages and potential to buy
and build

22. TAL Education Group is a leading education and
technology enterprise in China, which prides itself
of being technology driven, talent-centered, and
quality-focused. In China, education is a top priority
for families and TAL Education Group offers
specialized tutoring, with a focus on small class sizes.
As one of the largest private equity firms operating in
the Knowledge Sector, LEEDS Equity Partners has
experience in the education industry. Recent
acquisitions fueled by online course evaluation
software positions the company to expand PEG’s
proprietary online platform. With their dedication to
retaining executive teams and supplemental education
programs, LEEDS Equity Partners is situated to
create greater synergies through the expansion of
their educational portfolio.
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Selected Buyers
22

23. Agenda
23
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 12
Strategic Options 17
Final Thoughts 23
Appendix 25

24.  We recommend that Patterson Education Group engages in a
sale to Tomorrow Advancing Life (TAL)
 2.3 million in-school students in 42 cities across China
 18 million student users partake in online platform
 Provides expansion into international markets and
offers services different from those provided by
PEG’s current model
Strategic vs. Sponsored
 A Strategic Sale positions Patterson Education
Group to capitalize on advantages within the
industry
 Low capital expenditure requirements for
building new schools allow for rapid
international expansion
 Realized synergies through the
conglomeration of their proprietary online
platform
 Allows executive team to maintain structure
Valuation Overview
Final RecommendationAcquisition Recommendation
Promotes educational
progress through cutting-
edge technologies
Maintains large market
share in emerging
international economies
Conclusion
24
Executive
Summary
Industry
Overview
Company
Overview
Valuation
Analysis
Strategic
Options
Final
Thoughts
100 120 140 160 180 200 220 240
Leveraged Buyout (8.1x - 9.1x)
DCF - Exit Multiple (11.8x -
13.3x)
DCF - Perpetuity (7.5x - 8.6x)
Comparable Analysis (6.8x - 8.0x)
Precedent Analysis (7.7x - 9.5x)
Enterprise Value ($mm)

25. Agenda
Executive Summary
Industry Overview
Company Overview
3
4
8
Valuation Analysis 12
Strategic Options 17
Final Thoughts 23
Appendix 25
25

26. 26
Pro Forma Income Statement (Base Case No Schools)
($ in thousands)
Estimated
2015 2016 2017 2018P 2019P 2020P 2021P 2022P
New School Revenue 0.0 0.0 0.0 0.0 0.0
Revenue $118.5 $156.4 $195.8 $231.1 $254.2 $272.0 $285.6 $297.0
Total Revenue $118.5 $156.4 $195.8 $231.1 $254.2 $272.0 $285.6 $297.0
Direct Cost (39.8) (53.6) (64.6) (87.8) (101.7) (111.5) (117.1) (121.8)
Indirect Costs (58.3) (77.9) (96.3) (97.0) (94.0) (100.6) (105.7) (109.9)
Corporate Overhead (18.1) (21.8) (25.3) (31.0) (34.1) (36.4) (38.3) (39.8)
EBITDA 2.3 3.1 9.6 15.2 24.4 23.4 24.6 25.5
New School Development Addback 3.8 5.0 4.4 0.0 0.0 0.0 0.0 0.0
Other Addbacks 4.1 3.1 3.0 3.0 2.9 3.1 3.3 3.4
Adjusted EBITDA 10.2 11.2 17.0 18.3 27.3 26.5 27.8 29.0
Depreciation & Amortization (6.3) (8.8) (11.1) (11.6) (12.5) (12.0) (10.9) (11.3)
Adjusted EBIT 3.9 2.4 5.9 6.7 14.9 14.6 17.0 17.7
Interest Expense (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
Taxes (1.3) (0.7) (2.0) (2.2) (5.1) (5.0) (5.8) (6.1)
Net Income 2.3 1.4 3.6 4.2 9.5 9.3 10.8 11.3
Income Statement
Historical Projected
Growth Analysis
Revenue 32.0% 25.2% 18.0% 10.0% 7.0% 5.0% 4.0%
Adjusted EBITDA 9.8% 51.7% 7.5% 49.6% -3.0% 5.0% 4.0%
EBITDA Margin 7% 9% 8% 11% 10% 10% 10%
Assumptions (Base case)
Revenue 32.0% 25.2% 18.0% 10.0% 7.0% 5.0% 4.0%
Direct Cost (as a % of Revenue) 33.6% 34.3% 33.0% 38.0% 40.0% 41.0% 41.0% 41.0%
Indirect Cost (as a % of Revenue) 49.2% 49.8% 49.2% 42.0% 37.0% 37.0% 37.0% 37.0%
Corporate Overhead (as a % of Revenue) 15.3% 13.9% 12.9% 13.4% 13.4% 13.4% 13.4% 13.4%
New School Addbacks (as a % of new school Capex) 0.88 0.88 0.88 0.88 0.88 0.88
Other Addback (as a % of Indrect Cost 3% 3% 3% 3% 3% 3%
($ in millions)

27. Pro Forma Income Statement (Base Case 5 Schools)
($ in thousands)
Estimated
2015 2016 2017 2018P 2019P 2020P 2021P 2022P
New School Revenue 0.0 6.0 15.1 27.1 41.3
Revenue $118.5 $156.4 $195.8 $231.1 $254.2 $278.4 $308.2 $348.7
Total Revenue $118.5 $156.4 $195.8 $231.1 $260.2 $293.5 $335.3 $390.0
Direct Cost (39.8) (53.6) (64.6) (87.9) (103.5) (119.3) (137.7) (160.8)
Indirect Costs (58.3) (77.9) (96.3) (98.2) (99.9) (114.0) (130.2) (150.6)
Corporate Overhead (18.1) (21.8) (25.3) (31.0) (34.1) (37.3) (41.3) (46.7)
EBITDA 2.3 3.1 9.6 14.0 22.7 22.9 26.0 31.9
New School Development Addback 3.8 5.0 4.4 4.4 4.4 4.4 4.4 4.4
Other Addbacks 4.1 3.1 3.0 3.1 3.1 3.5 4.1 4.7
Adjusted EBITDA 10.2 11.2 17.0 21.5 30.2 30.9 34.5 40.9
Depreciation & Amortization (6.3) (8.8) (11.1) (11.6) (12.5) (12.2) (11.7) (13.2)
Adjusted EBIT 3.9 2.4 5.9 9.9 17.7 18.6 22.7 27.7
Interest Expense (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
Taxes (1.3) (0.7) (2.0) (3.4) (6.1) (6.4) (7.8) (9.6)
Net Income 2.3 1.4 3.6 6.2 11.3 11.9 14.6 17.8
Income Statement
Historical Projected
Growth Analysis
Revenue 32.0% 25.2% 18.0% 12.6% 12.8% 14.2% 16.3%
Adjusted EBITDA 9.8% 51.7% 26.3% 40.7% 2.3% 11.6% 18.8%
EBITDA Margin 7% 9% 9% 12% 11% 10% 11%
Assumptions (Base case)
Revenue 32.0% 25.2% 18.0% 10.0% 7.0% 5.0% 4.0%
Direct Cost (as a % of Revenue) 33.6% 34.3% 33.0% 38.0% 40.0% 41.0% 41.0% 41.0%
Indirect Cost (as a % of Revenue) 49.2% 49.8% 49.2% 42.0% 37.0% 37.0% 37.0% 37.0%
Corporate Overhead (as a % of Revenue) 15.3% 13.9% 12.9% 13.4% 13.4% 13.4% 13.4% 13.4%
New School Addbacks (as a % of new school Capex) 0.88 0.88 0.88 0.88 0.88 0.88
Other Addback (as a % of Indrect Cost 3% 3% 3% 3% 3% 3%
27
($ in millions)

28. LBO Income Statement (LBO Case 0 Schools)
($ in thousands)
Estimated
2015 2016 2017 2018P 2019P 2020P 2021P 2022P
New School Revenue 0.0 0.0 0.0 0.0 0.0
Revenue $118.5 $156.4 $195.8 $231.1 $254.2 $274.5 $293.7 $314.3
Total Revenue $118.5 $156.4 $195.8 $231.1 $254.2 $274.5 $293.7 $314.3
Direct Cost (39.8) (53.6) (64.6) (87.8) (101.7) (112.5) (120.4) (128.9)
Indirect Costs (58.3) (77.9) (96.3) (97.0) (94.0) (101.6) (108.7) (116.3)
Corporate Overhead (18.1) (21.8) (25.3) (31.0) (34.1) (36.8) (39.4) (42.1)
EBITDA 2.3 3.1 9.6 15.2 24.4 23.6 25.3 27.0
New School Development Addback 3.8 5.0 4.4 0.0 0.0 0.0 0.0 0.0
Other Addbacks 4.1 3.1 3.0 3.0 2.9 3.2 3.4 3.6
Adjusted EBITDA 10.2 11.2 17.0 18.3 27.3 26.8 28.6 30.6
Depreciation & Amortization (6.3) (8.8) (11.1) (11.6) (12.5) (12.1) (11.2) (11.9)
Adjusted EBIT 3.9 2.4 5.9 6.7 14.9 14.7 17.5 18.7
Interest Expense (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3) (0.3)
Taxes (1.3) (0.7) (2.0) (2.2) (5.1) (5.0) (6.0) (6.4)
Net Income 2.3 1.4 3.6 4.2 9.5 9.3 11.2 12.0
Income Statement
Historical Projected
Growth Analysis
Revenue 32.0% 25.2% 18.0% 10.0% 8.0% 7.0% 7.0%
Adjusted EBITDA 9.8% 51.7% 7.5% 49.6% -2.0% 7.0% 7.0%
EBITDA Margin 7% 9% 8% 11% 10% 10% 10%
Assumptions (Base case)
Revenue 32.0% 25.2% 18.0% 10.0% 8.0% 7.0% 7.0%
Direct Cost (as a % of Revenue) 33.6% 34.3% 33.0% 38.0% 40.0% 41.0% 41.0% 41.0%
Indirect Cost (as a % of Revenue) 49.2% 49.8% 49.2% 42.0% 37.0% 37.0% 37.0% 37.0%
Corporate Overhead (as a % of Revenue) 15.3% 13.9% 12.9% 13.4% 13.4% 13.4% 13.4% 13.4%
New School Addbacks (as a % of new school Capex) 0.88 0.88 0.88 0.88 0.88 0.88
Other Addback (as a % of Indrect Cost 3% 3% 3% 3% 3% 3%
Organic Revenue Growth (Excluding New Schools)
28
($ in millions)