Presentation forPresentation forFirst AnalysisFirst Analysis
SchoolcoSchoolco
March 22, 2001March 22, 2001
IHI VisionIHI Vision
Mission Statement
To build an industry leading post-secondary and vocational education
company through the acquisition, integration and consolidation of
operations and assets of acquired companies under a strong
management team with the ultimate exit strategy of taking the
company public.
InterboroInterboroFinancial DataFinancial Data
For more info see tabs 2 and 11 in the appendix
Value Proposition Value Proposition of IHI Programsof IHI Programs
Provide vocational education and practical business skills for high-demand jobs At reasonable and affordable prices
In accelerated time frames
With superior quality training Leverages Intellectual Assets of EVCI
Proprietary videoconferencing technology
Highly experienced management team
Professional acquisition team
Ability to integrate marketing strategies
Target MarketsTarget Markets
IBS and Interboro Institute Strategic Markets
Adults seeking job specific training to change careers to upgrade skills to rejoin the workforce after an absence
High school graduates seeking preparation for vocational employment
certification and licensing basic skills enhancement (e.g. ESL)
For more info see tab 2 in the appendix
Target MarketsTarget Markets
Videoconferencing and asynchronous distance learning Continuing education Job certification and licensing Undergraduate and graduate degrees
IBS and Interboro Institute Expanded Strategic Initiatives
Non-Traditional Students Women and minority students IBS/Interboro Alumni International students
Double cohort 2003 in Ontario
For more info see tab 2 and tab 6 in the appendix
Target MarketsTarget Markets
Canadian Market Size
25 million Canadians between the ages of 18-35 Five million post secondary education candidates In IT alone, there are 50,000 vacant jobs
Greater New York Market Size
Five million New Yorkers between the ages of 18-35 One million post secondary education candidates In ophthalmic dispensing, Interboro is #1 in New York
state
For more info see tab 6 in the appendix
EnrollmentEnrollment
International Business Schools Actual 2000……………..8,630 students Projected 2001………..9,541 students Projected 2002……….10,495 students
Interboro Institute Actual 2000……………..2,377 students Projected 2001………..2,910 students Projected 2002………..3,200 students
For more info see tabs 2, 3,4,5,10 and 12 in the appendix
Enrollments byEnrollments byMajor ProgramsMajor Programs
International Business Schools Business Administration……………………..33.5% Administrative Studies……………………...31.3% Information Technology……………………..28.9% Health
Care…………………………………………..6.3%Interboro Institute
Computer Studies………………………………….28% Business Management and Accounting...28% Paralegal and Secretarial Science………..30% Ophthalmology……………………………………..11% Security…………………………………………………..3%
For more info see tabs 2, 3, 4, 5 and 10 in the appendix
IBS CompetitionIBS Competition
Community Colleges
Private Vocational Schools DeVry Academy of Learning Institute for Computer Studies CDI Education Corporation Herzing Academy ITI Education Corporation
For more info see tab 2 in the appendix
Interboro CompetitionInterboro Competition
Community Colleges City University of NY Community College Hostos Community College
Proprietary Colleges DeVry Monroe Katherine Gibbs
Selected Four Year Colleges Mercy College College of Insurance
IBS StrategyIBS Strategy
#1 proprietary school in Canada
Establish several new locations in Canada and United States
Create new vocational and academic programs
Increase retention and placement rates of students
Increase facility utilization for evening and weekend classes
Increase target market penetration
Increase international student population
Utilize EVCI videoconferencing technologies to maximize
economies of scale and profits
For more info see tabs 1, 2 and 3 in the appendix
IBS Financial StrategyIBS Financial Strategy
Profitable operations will go to bottom line through
restructuring of debt (2001)
Continued emphasis on bringing down default rate
Enhance revenue through aggressive growth strategy
Close unprofitable IBS locations
Increase EBIDTA over next 3 years from 8% in 2000
to 22%
Increase margins for IBS
For more info see tabs 2, 4, 9 and 11 in the appendix
Interboro StrategyInterboro Strategy Continue to significantly increase revenue, EBIDTA, profits
Open new Extension Centers and Branch Campuses
throughout New York state
Create new Associate and Bachelor Degree programs
Increase international student population
Incorporate IBS modular curriculum system as part of
Interboro’s vocational programs
Increase student retention and placement rates
Utilize EVCI videoconferencing technologies to maximize
economies of scale and profits
For more info see tabs 1, 2, 3 and 12 in the appendix
IHI StrategyIHI Strategy
Acquire independent educational facilities, with at least
one million dollars in EBITDA
Target between two and four acquisitions per year
Open new locations to address different student
market niches
Attract experienced, senior level management with
proven records of excellent performance
Increase shareholder value
For more info see tabs 1 and 2 in the appendix
Interboro Holding Interboro Holding Executive Management Executive Management
TeamTeam Dr. Arol I. Buntzman, Chairman and CEO
Dr. John J. McGrath, President and Director
Richard Goldenberg, CFO and Director
Allan N. Ebedes, President and COO (IBS)
Stephen H. Adolphus, President (Interboro Inst.)
Arthur Goldberg, Chief Financial Consultant (IHI)
Interboro Holding Interboro Holding Senior Management TeamSenior Management Team
Philip D. Forster, Chief Financial Officer (IBS)
Dr. Norman Puffett, VP for Academic Projects (EVCI)
Frank Gallo, Vice President for Operations (EVCI)
Kay Schmalz, VP for Regulation and Compliance
(EVCI)
William Neumeister, Vice President/Technology (EVCI)
Ove Jornaes, Exec. Director of Info Technology (EVCI)
Michael J. O’Brien, General Counsel (EVCI)
Use of ProceedsUse of ProceedsU.S.$8 million raiseU.S.$8 million raise
Proceeds $8,000,000 Retire Bank Debt $3,333,000 Retire 1/2 debenture 899,000 Other (see schedule) 2,588,000
6,820,000
Working Capital $1,180,000
For more info see tab 9 in the appendix
IHIIHIConsolidated NumbersConsolidated Numbers
For more info see tabs 2 and 11 in the appendix
Conclusion: Conclusion: Investment DriversInvestment Drivers
IBS is one of only two private Canadian vocational schools with their own financial aid student processing center
Increasing “skills gap” in Canada, exacerbated by “brain drain” to USA
Canadian public higher education system unable to meet the needs of today’s modern workplace
Increasing numbers of unserved and new student population segments
More flexible training options required by busy adults (course times, duration of classes, scheduling etc.)
Expectation of strong revenue growth through internal and geographic expansion and acquisitions
For more info see tab 2 in the appendix
Conclusion: Conclusion: Investment DriversInvestment Drivers
Enhance existing and new educational offerings and
profitability through synchronous and asynchronous
distance learning
Valuable IBS and Interboro content plus other
educational offerings available from EVCI
Excellent balance sheet after restructuring
Attractive cash flow characteristics
Skilled management team with ability to implement
profitable business strategies
For more info see tab 2 in the appendix