Alive & Well
„New CBT Exam –
We Nailed it!
Pics Go Here
Alive & Well
„ Pass rates –
Pics Go Here
Double the rate of
non-Becker
candidates
Alive & Well
„ Growth in distance learning product
– from 25% to 40% of total
revenue
„ Our revenue is steady
Candidate numbers down 21%,
number of exam sections down 57%
Number of CPA Exam Candidates 1993-2003
160,000
140,000
140,228
116,907
120,000
115,498
106,079
108,573
109,729
100,000
87,127
80,000
60,000
40,000
20,000
0
1993
1998
2000
2001
2002
2003
2004*
Note * = first year of CBT (candidates from 4/5/04 - 3/31/05)
Source: Texas State Board of Public Accountancy Agency Strategic Plan 2005-2009 (citing NASBA); Illinois
Board (citing NASBA)
Demand for qualified accountants is
strong and getting stronger
Top 100 Accounting Firms’ Revenues ($Billions)
$34
$32
$30
$28
$26
$24
$33.2
$30.6
$28.3
$28.5
2001
2002
Source: Accounting Today (3/14/05; 4/1/04; 3/17/03)
2003
2004
Strong affiliations
„ Firms
„ Universities
Not Resting On Our Laurels
It’s All About The Candidates…
„New For You –
SmartFinancing™
(May 05)
Not Resting On Our Laurels
It’s All About The Candidates…
„New For You –
Final Review
(July 05)
Not Resting On Our Laurels
It’s All About The Candidates…
„ Review Course
– All-New lectures (Aug 05)
– PassMaster™: Next Generation (Aug 05)
– Extra mock final exam (Aug 05)
“We can take a punch…”
„ Non-disclosed exam 1996
„ 150-hour rule 1999-2001
„ Industry scandals 2001-2002
„ Computer based/on-demand exam
2004
“…and still stand strong”
CFA Market is at a Crossroads
Historical Low Pass Rates
CFA Level 1 Exam Pass Rates
Percentages
70%
60%
50%
40%
30%
20%
64%
52%
49%
44%
42%
34%
10%
0%
1999
2000
2001
2002
Source: CFA Institute
…and candidate counts are down 11%
2003
2004
Stalla Positioned As The New
Solution
„ “Books & notes” alone aren’t
getting the job done
„ Market ready for a clear alternative
– “instruction & coursework”
„ Stalla has significantly enhanced its
course offering, combining Becker
expertise with consumer research
Getting More Aggressive With
Sales & Marketing
„ New branding, society partnering
and B2B selling force are combining
to clearly differentiate Stalla from
Schweser
Leveraging Channels in New Ways
Washington Society
of Investment Analysts
Leveraging our Brands
„ Continuing Professional Education
– Targeting Fortune 500 companies
– Educating and training accounting and
finance department staffs
• Sarbanes-Oxley 404 Compliance
„ Leverage our brands to sell lifelong learning to meet regulatory
and global market requirements