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Q3 2015 E DUCATION SECTOR OVERVIEW
November 19, 2015
PARCHMAN , V AUGHAN & C OMPANY, LLC

S Y MPHONY C E NTE R , SU ITE 1 2 0
1 0 40 P A R K AV E NU E , B A LTIMOR E , M D 2 1 201
410-244-8971 | www.parchmanvaughan.com
Table of Contents
Overview
Education Stock Price Performance by Sector
Q3 2015 Education Public Company Valuation Data..
Select U.S. Q3 2015 Education Merger, Acquisition, and Divestiture Transactions...
Overview
Parchman, Vaughan & Company, LLC (PVC) is pleased to share with you our quarterly summary of the
earnings and other multiples of publicly traded education firms, as well as select merger, acquisition, and
divestiture announcements.
We caution that many factors affect the valuation of firms and these multiples are, at best, a guidepost for
how the equity markets view the industry, specifically publicly traded participants. Growth rates, return on
capital invested, visibility of earnings, and a host of other elements influence valuation.
One Year Education Stock Price Performance by Sector

One Year Stock Price
180.0
Prices Indexed to 100
160.0
140.0
120.0
100.0
80.0
60.0
40.0
S&P 500
Educational Content & Services
Corporate Training
Sources: CapTarget and PVC
U.S. Post-Secondary
PreK-12 Education
Two Year Education Stock Price Performance by Sector

Two Year Stock Price
180.0
Prices Indexed to 100
160.0
140.0
120.0
100.0
80.0
60.0
40.0
S&P 500
Corporate Training
U.S. Post-Secondary
PreK-12 Education
Q3 2015 Education Public Company Valuation Data

U.S. Post-Secondary
Company Name
American Public Education, Inc.

Apollo Education Group, Inc.
Bridgepoint Education, Inc.
Capella Education Company
Career Education Corporation
DeVry Education Group Inc.
Education Management Corporation
Graham Holdings Company
Grand Canyon Education, Inc.
ITT Educational Services, Inc.
Lincoln Educational Services Corporation
National American University Holdings, Inc.
Strayer Education, Inc.
Universal Technical Institute, Inc.
Price
(As of 11/16/15)
Enterprise
Value ($MM)
Market Cap
($MM)
$21.78
$7.27
$7.69
$45.22
$4.00
$22.86
$0.07
$548.65
$38.65
$3.03
$1.81
$2.67
$51.20
$4.93
$240.4
$135.9
$62.9
$412.5
$72.6
$1,006.9
$969.9
$2,295.0
$1,678.1
$197.5
$79.3
$44.9
$477.0
$91.7
$354.3
$788.1
$352.1
$539.3
$272.0
$1,451.1
$8.8
$3,204.7
$1,821.9
$71.7
$43.2
$67.2
$564.6
$119.0
9.9%
(39.7%)
(41.1%)
1.0%
(56.0%)
(8.0%)
(21.3%)
(18.8%)
55.8%
(33.6%)
(26.2%)
(7.7%)
(24.1%)
(13.3%)
22.1%
12.6%
5.7%
21.1%
NM
15.2%
12.2%
18.2%
31.1%
15.1%
6.1%
10.8%
20.4%
8.5%
0.7x
0.1x
0.1x
1.0x
0.1x
0.5x
0.4x
0.7x
2.2x
0.2x
0.3x
0.4x
1.1x
0.2x
0.7x
0.1x
NM
0.8x
0.1x
0.5x
NM
NM
2.1x
NM
0.2x
NM
0.9x
0.1x
3.3x
0.4x
1.9x
4.6x
NM
3.5x
3.5x
3.8x
7.2x
1.4x
4.1x
3.7x
5.4x
2.9x
3.2x
0.5x
0.4x
3.6x
NM
3.4x
NM
NM
6.5x
NM
3.8x
NM
4.4x
1.7x
10.8x
26.9x
NM
13.7x
NM
12.0x
NM
18.4x
14.5x
2.0x
NM
20.5x
13.7x
61.6x
12.9x
12.4x
30.1x
13.4x
NM
9.2x
NM
NM
13.2x
7.8x
NM
NM
13.0x
36.3x
$44.9
$554.6
$218.9
$2,295.0
$8.8
$689.9
$353.2
$3,204.7
(56.0%)
(15.9%)
(20.0%)
55.8%
5.7%
15.3%
15.1%
31.1%
0.1x
0.6x
0.4x
2.2x
0.1x
0.6x
0.5x
2.1x
0.4x
3.5x
3.5x
7.2x
0.4x
3.1x
3.4x
6.5x
2.0x
19.4x
14.1x
61.6x
7.8x
16.5x
13.0x
36.3x
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
NTM
LTM
NTM
Revenue Growth Margin TEV/Revenue TEV/Revenue TEV/EBITDA TEV/EBITDA Price/Earnings Price/Earnings
Corporate Training
Company Name
CEB Inc.
Franklin Covey Co.
GP Strategies Corporation
Learning Tree International, Inc.
Workday, Inc.
Price
(As of 11/16/15)
Enterprise
Value ($MM)
Market Cap
($MM)
$73.22
$14.28
$25.79
$1.14
$80.59
$2,838.9
$241.4
$486.2
($3.7)
$13,827.4
$2,423.0
$231.6
$439.2
$15.0
$15,231.5
65.9%
22.0%
25.6%
(20.3%)
389.6%
24.5%
15.5%
8.9%
NM
NM
3.1x
1.2x
1.0x
NM
14.2x
2.7x
0.9x
0.9x
NM
9.4x
12.5x
7.5x
11.1x
NM
NM
10.5x
6.0x
9.0x
NM
116.9x
24.1x
21.6x
22.2x
NM
NM
18.0x
18.7x
17.8x
NM
NM
($3.7)
$3,478.0
$486.2
$13,827.4
$15.0
$3,668.0
$439.2
$15,231.5
(20.3%)
96.6%
25.6%
389.6%
8.9%
16.3%
15.5%
24.5%
1.0x
4.9x
2.1x
14.2x
0.9x
3.5x
1.8x
9.4x
7.5x
10.4x
11.1x
12.5x
6.0x
35.6x
9.7x
116.9x
21.6x
22.7x
22.2x
24.1x
17.8x
18.1x
18.0x
18.7x
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
NTM
LTM
NTM
Q3 2015 Education Public Company Valuation Data

Company Name
Price
(As of 11/16/15)
Enterprise
Value ($MM)
Market Cap
($MM)
$21.56
$14.20
$6.78
$13.21
$19.12
$17.70
$50.59
$11.63
$7.38
$39.90
$807.3
$637.0
$493.2
$54.6
$2,838.5
$434.0
$3,441.2
$13,043.1
$134.0
$1,083.5
$982.6
$686.0
$595.9
$53.6
$2,567.8
$467.1
$2,960.1
$9,547.0
$160.9
$1,360.1
NM
NM
NM
53.2%
11.3%
NM
2.5%
NM
(7.8%)
(27.4%)
NM
4.8%
2.6%
NM
13.8%
NM
23.2%
NM
neg.
9.7%
5.9x
0.4x
1.6x
1.3x
2.1x
6.7x
1.9x
NM
0.5x
0.7x
4.2x
NM
1.6x
NM
1.9x
NM
NM
1.4x
NM
0.6x
NM
7.5x
60.0x
NM
14.8x
neg.
8.2x
NM
NM
7.2x
NM
NM
22.0x
NM
9.8x
NM
NM
7.9x
NM
8.0x
NM
45.4x
NM
33.9x
NM
NM
17.1x
NM
NM
4.9x
NM
NM
48.2x
NM
NM
NM
16.4x
11.5x
NM
24.2x
$54.6
$2,296.6
$722.1
$13,043.1
$53.6
$1,938.1
$834.3
$9,547.0
(27.4%)
6.4%
2.5%
53.2%
2.6%
10.8%
9.7%
23.2%
0.4x
2.3x
1.6x
6.7x
0.6x
2.0x
1.6x
4.2x
7.2x
19.5x
8.2x
60.0x
7.9x
11.9x
8.9x
22.0x
4.9x
25.3x
25.5x
45.4x
11.5x
25.1x
20.3x
48.2x
2U, Inc.
Barnes & Noble Education, Inc.
Chegg, Inc.
Educational Development Corporation
Houghton Mifflin Harcourt Company
Instructure, Inc.
John Wiley & Sons, Inc. A
Pearson PLC
Rosetta Stone, Inc
Scholastic Corporation
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
NTM
LTM
NTM
PreK-12 Education
Company Name
Price
(As of 11/16/15)
Enterprise
Value ($MM)
Market Cap
($MM)
$62.58
$5.38
$9.44
$18.67
$4,679.2
$351.6
$243.6
$2,470.0
$3,757.4
$245.4
$367.6
$1,942.3
NM
(2.2%)
26.7%
NM
17.7%
25.0%
10.5%
21.1%
3.3x
2.5x
0.3x
4.5x
2.9x
NM
0.2x
3.2x
18.5x
9.9x
2.5x
21.2x
15.0x
NM
1.8x
12.5x
45.0x
NM
72.6x
66.7x
29.3x
NM
25.5x
24.4x
$243.6
$1,936.1
$1,410.8
$4,679.2
$245.4
$1,578.2
$1,154.9
$3,757.4
(2.2%)
12.2%
12.2%
26.7%
10.5%
18.6%
19.4%
25.0%
0.3x
2.6x
2.9x
4.5x
0.2x
2.1x
2.9x
3.2x
2.5x
13.0x
14.2x
21.2x
1.8x
9.7x
12.5x
15.0x
45.0x
61.4x
66.7x
72.6x
24.4x
26.4x
25.5x
29.3x
Bright Horizons Family Solutions, Inc.

Cambium Learning Group, Inc.
K12, Inc.
Nord Anglia Education, Inc.
Min
Mean
Median
Max
3-Year
EBITDA
LTM
NTM
LTM
NTM
LTM
NTM
Select U.S. Q3 2015 Education Merger, Acquisition, and

Divestiture Transactions
The economic recovery and regulatory environment in the United States have
resulted in a decline in enrollments at for-profit post-secondary institutions. This
has led to a decrease in M&A activity in that sector. EdTech, Corporate Training,
and service companies continue to experience a healthy level of M&A and
investment activity. On November 13, 2015, Instructure, Inc.s IPO debuted at
$16.00 per share and closed on the following Monday at $17.70. This appears to
support the strong interest by investors in the EdTech sector. We await the
outcomes of the IPOs for McGraw-Hill Education and Laureate Education, Inc.
in the coming months.
Select Q3 2015 Education

Transactions by Sector
3 3
16
40

Corporate Training
Post-Secondary
PreK-12 Education

Announcement
Date
Acquirer Company
Target Company
Target Business Type
11/5/2015
10/29/2015
10/27/2015
10/27/2015
10/27/2015
10/23/2015
PowerSchool Group LLC

Tempus Applied Solutions LLC
Relias Learning LLC
Greenwood Hall, Inc.
Cengage Learning, Inc.
The Gordian Group
InfoSnap, Inc.
Proflight Aviation Services LLC
RediLearning Corporation
Uvize, Inc.
Pathbrite, Inc.'s ePortfolio Solution
Sightlines, LLC.
10/22/2015
10/22/2015
10/19/2015
Kaplan, Inc.
Apollo Education Group, Inc.
Leeds Equity Partners (Affiliate)
SmartPros, Ltd.
Career Partner GmbH
Campus Labs' Data Analytics Business

Post-Secondary
Corporate Training
Post-Secondary
10/13/2015
10/13/2015
Global Knowledge Training LLC

Goodcall, LLC
DevelopMentor, Inc.
Schoolsoup.com
10/5/2015
10/5/2015
9/30/2015
International Institute for Learning, Inc.

Blackbaud, Inc.
Workday, Inc.
AFA Project Management Ltd.

Smart Tuition LLC
MediaCore
9/30/2015
9/30/2015
9/30/2015
9/30/2015
9/25/2015
9/22/2015
9/16/2015
9/8/2015
9/4/2015
9/2/2015
9/1/2015
8/31/2015
8/19/2015
8/19/2015
8/14/2015
8/13/2015
8/12/2015
WorkPlace Answers, LLC

Private Investors/Management Buyout
Hack Reactor LLC
Research Center on National Conservation, Inc.
Principled Technologies, Inc.
Cengage Learning, Inc.
Educational Development Corp.
FABERNOVEL
DCS Certification Pvt Ltd.
Longleaf Solutions LLC
Weston Education Group
PESI, Inc.
iCollege Ltd.
Percelvant LLC
TPG Capital/Leonard Green Partners
Blackboard Inc.
i3 Verticals LLC
Click 4 Compliance LLC

Amplify Education, Inc.
Mobile Makers Academy, LLC
New York Military Academy
WeejeeLearning, LLC
Learning Objects, Inc.
Demibooks, Inc.
Rebellionlab LLC
Mappr Technologies Solutions Pvt. Ltd.
CaseNEX LLC
Missouri College, Inc.
Cross Country Education, LLC
Celtic Training and Consultancy Pty LTd
Bearface Instructional Technologies LLC
Ellucian Company L.P.
Nivel Siete
Local Level LLC

Corporate Training
Corporate Training
Corporate Training
PreK-12
Post-Secondary
Corporate Training
Corporate Training
Acquisition
Price ($MM)
NA
NA
NA
NA (Pending)
NA
NA
$16.9 (Pending)
$109.0 (Pending)
$91.0 (Pending)
NA
NA
NA (Pending)
$190.0
NA
NA
NA
NA
$15.8
NA
NA
NA
$2.2
NA
NA
NA
$8.5
$1.7 (Pending)
NA
NA (Pending)
NA
NA

Announcement
Date
8/11/2015
8/11/2015
8/10/2015
8/10/2015
8/7/2015
8/7/2015
8/6/2015
8/6/2015
8/4/2015
7/31/2015
7/31/2015
7/24/2015
7/22/2015
7/21/2015
7/20/2015
7/20/2015
7/20/2015
7/16/2015
7/16/2015
7/14/2015
7/13/2015
7/9/2015
7/9/2015
7/8/2015
7/7/2015
7/6/2015
7/6/2015
7/2/2015
7/2/2015
7/1/2015
7/1/2015
Acquirer Company
Target Company
Target Business Type
Jenzabar, Inc.
Houghton Mifflin Harcourt Company
eResponse Recruitment Ltd.
Branch Metrics, Inc.
360training.com, Inc.
National Academy of Sports Medicine
NH Learning Solutions Corporation
Premier, Inc.
Callidus Software, Inc.
ESM Group, Inc.
PSI Services LLC
ApprenNet, Inc.
Catapult Learning, LLC
Learn4Life Columbus
Learn4Life Columbus
Unizin
Simba Information, Inc.
Atomic Learning, Inc.
Jonas Software USA Inc.
Vesey Street Capital Partners L.L.C. (Affiliate)
MakeMusic Inc.
Partners Group AG
TargetX.com LLC
Relias Learning LLC
Great Circle
IMPAQ International, LLC.
Blackboard Inc.
Data Recognition Corp.
Little Sprouts, Inc.
RJM Systems, Inc.

MeeGenius' E-Book and Technology Assets
Options Training Ltd.
ClassOwl, Inc.
Ameriteach-UCI, Inc.
TSS Redmond, LLC
Aerobics and Fitness Foundation of America
CompuWorks Systems, Inc.
CECity.com, Inc.
BridgeFront LLC
Tutorpedia, Inc.
Innovative Exams LLC
Handsfree Learning, Inc.
Specialized Education Services, Inc.
KidsOhio.org
Learning Circle Education Systems
Courseload, Inc.
Education Market Research Company
Versifit Technologies , LLC.
InReach
Imedex, LLC
Weezic SAS
Knowledge Universe's U.S. Early Childhood Business
Uversity, Inc.
Masterlink Training LLC
US Medical Systems, Inc.
Butterfield Youth Services, Inc.
Educational Services, Inc.
X-Ray Analytics
McGraw-Hill Education's CTB Assessment Business
A Place to Grow Childcare (3 Schools)

Corporate Training
Corporate Training
Corporate Training
Corporate Training
Corporate Training
Corporate Training
Corporate Training
Corporate Training
PreK-12
Corporate Training
Corporate Training
PreK-12
10
Acquisition
Price ($MM)
NA
NA
NA
NA
NA
NA
NA
NA
$400.0
$5.0
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA (Pending)
NA
NA
NA
NA
NA
NA
NA
NA
For more information, please visit www.parchmanvaughan.com
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Q3 2015 E DUCATION SECTOR OVERVIEW

November 19, 2015

PARCHMAN , V AUGHAN & C OMPANY, LLC

Education Stock Price Performance by Sector

Q3 2015 Education Public Company Valuation Data..

Select U.S. Q3 2015 Education Merger, Acquisition, and Divestiture Transactions...

One Year Education Stock Price Performance by Sector

Prices Indexed to 100

Educational Content & Services

Sources: CapTarget and PVC

Two Year Education Stock Price Performance by Sector

Prices Indexed to 100

Educational Content & Services

Sources: CapTarget and PVC

Q3 2015 Education Public Company Valuation Data

American Public Education, Inc.

Sources: CapTarget and PVC

Q3 2015 Education Public Company Valuation Data

Bright Horizons Family Solutions, Inc.

Sources: CapTarget and PVC

Select U.S. Q3 2015 Education Merger, Acquisition, and

Select Q3 2015 Education

Educational Content & Services

Select U.S. Q3 2015 Education Merger, Acquisition, and

Target Business Type

PowerSchool Group LLC

Educational Content & Services

Global Knowledge Training LLC

International Institute for Learning, Inc.

AFA Project Management Ltd.

WorkPlace Answers, LLC

Click 4 Compliance LLC

Sources: CapTarget and PVC

Educational Content & Services

Select U.S. Q3 2015 Education Merger, Acquisition, and

Target Business Type

RJM Systems, Inc.

Educational Content & Services

Sources: CapTarget and PVC

For more information, please visit www.parchmanvaughan.com

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