STATE OF THE INDUSTRY Lisa Pullman Executive Director, INDEX

INDEX SCHOOLS

SCHOOL SURVEY: TOP 5 INITIATIVES FOR 2016-17 Capital Campaign Strategic Planning Building Projects Enrollment Curriculum (e.g. mapping, integration, etc.)

Total Revenue Net Tuition Revenue 21st Century Trends The Good Old Days 2002-2007 Financial Crisis 2007-2012 The New Reality 2012-2016 Total Revenue Total Revenue Growth (CAGR) 6.0% Non-Tuition Revenue Growth (CAGR) 3.4% 3.5% 4.0% 3.2% 3.4% Net Tuition Revenue Net Tuition Revenue Growth (CAGR) 7.1% Tuition Discount (CAGR) 2.9% 3.4% 5.4% 3.7% 1.6% Enrollment Enrollment Growth (CAGR) 0.6% Schools with Declining Enrollment 16% 0.1% 32% 0.2% 32%

TUITION

Tuition Pre-Financial Crisis 2002-2007 Financial Crisis 2007-2012 Post Financial Crisis 2012-2016 Average Tuition Increase (CAGR) 6.1% 4.3% 3.6% Maximum Increase (CAGR) 8.9% 6.0% 6.4% Minimum Increase (CAGR) 2.4% 2.3% 1.5%

TUITION DISCOUNTS: NEED-BASED AID, MERIT AWARDS & TUITION REMISSION

Need-Based, Merit, Tuition Remission 2002-07 Average Tuition Discount 9.4% Tuition Discount Growth (CAGR) 2.9% 2008-12 14.1% 5.4% 2012-16 16.5% 1.6%

ANNUAL GIVING & ENDOWMENT

Annual Giving 2002-07 2008-12 2012-16 Nominal $ (CAGR) 5.8% Real $ (CAGR) 2.6% 2008-12 (0.4%) (2.0%) 2012-16 5.1% 4.1%

+45%

Endowment per Student Nominal $ (CAGR) Real $ (CAGR) 16.6% 13% (11.2%) 2003-08 16.6% 13% 2008-10 (11.2%) (11.8%) 2012-16 6.4% 5.4%

OPERATING EXPENSE & DEBT

2004-16 3.1% 4.3% 6.5% Total Expense $ Administration Expense $ (CAGR) Instructional Expense $ (CAGR) 4.3% Administration Expense $ (CAGR) 3.1% Plant Expense $ (CAGR) 6.5%

The Attraction of Debt

Debt $ Debt to Unrestricted Net Assets 2002-07 2008-12 2012-16 Debt : Net Assets 0.30 0.42 0.36

ADMISSIONS: INQUIRIES

Inquiries Percentage Change Lower School Middle School Upper School 2002-07 (24%) (17%) (15%) 2007-12 (17%) 3% 19% 2012-16 (7%) (8%) 5%

APPLICATIONS, ACCEPTANCES & ATTRITION

Application Growth (CAGR) 2012-16 (1.4%) 0.6% 2.5% Application Growth (CAGR) Lower School Middle School Upper School 2002-07 (2.7%) (2.4%) (0.3%) 2007-12 (3.3%) (0.1%) 2.9%

Acceptance Rate Acceptance Ratio 2003-08 2009-12 2012-16 Lower School (CAGR) 4.9% 5.4% 0.5% Middle School (CAGR) 4.3% 3.2% (0.9%) Upper School (CAGR) 1.4% 1.8% (1.2%)

Attrition Acceptance Ratio 2003-08 2009-12 2012-16 Lower School 0.1% (0.4%) (0.1%) Middle School (0.1%) (0.6%) Upper School (0.4%) (1.1%) 0.6%

ENROLLMENT

Enrollment

Smaller Schools Tend to have Enrollment Erosion

Midwest and Mid-Atlantic Hit Hardest

West and Southwest are Growing Fastest

The Cost to Fill a Seat

STUDENT DIVERSITY

Top Quartile - Student Diversity Bottom Quartile - Student Diversity

ACADEMICS

Thank you! Questions? Comments?