1. Employee Stock Ownership Plan
Welcome to our annual ESOP certificate meeting. This meeting is intended to celebrate the benefits of employee ownership, enjoy a company luncheon, hand out certificates and provide a forum for participants to participate in the meeting and ask questions about our ESOP.
Included in your envelope are your ESOP certificate, the SAR or the Summary Annual Report for 211 which is the basic financial statement of the ESOP.

2. ESOP CHAMPIONS Rene Shirley Nancy Seattle Donna Karel Theresa Jennifer
Tucson
Shirley
Colorado Springs
Nancy Seattle
Donna
Renton
Karel
Mesa
Theresa
Albuquerque
Jennifer
Las Vegas
Sev
Chula Vista
Chris
Denver
John
East Valley
Dana
Houston
Kate
South Denver
Lisa
West Albuquerque
Erin
Mesa Corporate
Rich
Corporate
Every campus and corporate has an ESOP champion (you ESOP champions represent members of the Pima ‘family’ that have volunteered to help spread the word and carry the ESOP banner). Rich Almeroth is our Controller and Liby Lentz is our Human Resources Director and both are based in Corporate Tucson, they are the behind the scenes ESOP administrators

3. Past ESOP Share Price Winners
George Borchers Seattle $252.57
Darv Nomann Mesa $267.35
Angie Dolfo C Vista $670.00
Ann King C Vista $1,970.00
Steve Zone Las Vegas $2,000.00
Ann Castillo C Vista $2,000.00
Jed Miles C Vista $1,920.00
George Borchers • Seattle • 2006
Darv Nomann • Mesa • 2007
Angie Dolfo • C Vista • 2008
Ann King • C Vista • 2009
Steve Zone • Las Vegas • 2010
Ann Castillo • C Vista • 2010
Jed Miles • C Vista • 2011
$252.57
$267.35
$670.00 $ $ $ $

4. 2011 ESOP Share Price Winner
Tara Dailey
Albuquerque Campus
$2,560.00
$1,920 for 2011 is a 4% share drop in price or an $80 decrease in per share value

5. 110 310 785 ESOP EMPLOYEE OWNERS New Employee Owners in 2013
Employee Owners are 100% Vested
310
In 2011 – we welcomed 121 new plan participants throughout Pima – new plan participants must work a minimum of 1,000 hours.
228 participants or 32% of the plan participants are 100% fully vested in the ESOP.
To become fully vested you must work 1,000 hours each year for SIX years or be 65 years of age or older.
When Pima implemented the plan in 2002, they retroactively vested employees in the plan, so anyone who had been with Pima prior to 2002, received employment credit for years of service. Very nice of the Luebke family to do that.
So currently, as of the end of 2011 we have 704 participants. The 704 participants, include those of us actively employed as well as those former employees who are receiving ESOP benefits (distribution checks!!) or waiting to receive distribution checks in the future.
600 active participants; 704 with account balances
Employee Owners
785
636 employee owners are active, but 785 have an account balance

6. ESOP AGENDA VALUE OF EMPLOYEE OWNERSHIP EARNING ESOP SHARES VESTING
VALUATION
STOCK APPRECIATION - GROWTH of PMI’s ESOP – ADDING VALUE
Some of the info today will be review for the longer termed employee owners and new info for the new employee owners – review of the basics, plus some exciting news for everyone and some new info for participants who have been on the plan at least 10 years and are at least age 55

7. Title slide Here

8. VALUE OF EMPLOYEE OWNERSHIP
EMPLOYEES SHARING IN THE SUCCESS
THEY ARE HELPING TO CREATE

9. Employee Ownership
Employee ownership works through the ESOP via a retirement plan – the benefit to employee owners is created through growth in the company’s stock value.
Employee owners are responsible for working together and improving the growth and performance of their company.
In exchange for growing the company and improving performance, shares are allocated to employees and held in an ESOP Trust until the employee retires or leaves the company.

10. ESOP-Owned Companies Practice:
Financially meaningful ownership stake for employees
Average ESOP account value is $105,227
Open Book Management
Employees understand how PMI earns revenue and profit
OBM meetings; review of I/S; sharing campus results of critical numbers and net operating income
Rewarding of employees by sharing profits
Service awards; 401(k) profit sharing match; year end rewards
Education of employees to understand the business
Growth goals; new programs; new campuses; Online degrees

11. EARNING
ESOP
SHARES

12. Shares of PMI stock
The ESOP is an investment plan primarily consisting of PMI stock
ESOP has 43, shares or 47.8% ownership
29, have been released to participants and 14,475 are shares in suspense (for future allocations)
Set amount of shares released each year to employees
1,000 shares x $2,560 = $2,560,000 in value
Shares are released annually to employees who work 1,000 hours in the Plan year and are employed on the last day of the Plan year (12/31/2014)
Shares are earned annually based on total compensation
– employee retention plan – employees who stay and help grow Pima may reap the rewards of the growth in the future
– investment plan – it’s a long ter, investment plan that requires daily care to grow in value

13. 310 Employee owners are 100% vested Six year vesting schedule
20%
Year 3
40%
Year 4
60%
Year 5
80%
Year 6
100%

14. ESOP is an employee retention tool
Vesting
ESOP is an employee retention tool
The longer you work for Pima, the more vested you become in the ESOP and the greater the stake you have in the outcome of the ESOP’s performance …
for your retirement, for your future
(remember it takes 6 years to become 100% vested)
If you leave early… you leave $$$ on the table

15. HOW IS VALUE DETERMINED?
Valuation
HOW IS VALUE DETERMINED?
Appraisal was conducted by an independent appraiser with extensive experience preparing ESOP appraisals
Value grew by $300 or 13% from the 12/31/12 stock price of $2,260 to $2,560 at 12/31/13
The value of the company stock is determined annually by a professional independent appraiser and is not arbitrarily set by management. The appraiser does not work for Pima – instead he works for the ESOP Trust, in other words for us as employee owners.
The appraiser determines the value of the stock based on various factors such as: historical earnings of the company and future earnings expectations; how close we come each year to meeting our financial and budget goals; how well our industry is doing – private, for profit vocational education – all of his appraisal work determines the value of your ESOP account as shown in your annual ESOP certificate

16. FACTORS AFFECTING STOCK PRICE
Valuation
FACTORS AFFECTING STOCK PRICE
Positive
A very successful business history of 43 years
Established market presence in 7 states
Well-trained, professional employees and management team
Strong sales growth and profit margins over the past 10 years;
Positive program growth: increased bachelor degree programs, 12 associate degree programs and 11 certificate programs
Enrollment growth due to a highly effective call center (ASC) and marketing initiatives
Revenue in 2013 was $122,393,000 an increase of 11.5% over 2012
Newer campuses accounted for the revenue gains: Houston; Aurora, Online and Albuquerque West
2013 was a year of new monthly records! Every month in 2013 was the BEST of any year for PMI collectively!

17. PMI Leadership actively seek ways to grow the Company:
GROWTH OF PMI STOCK
PMI Leadership actively seek ways to grow the Company:
Organic Growth: Increase student census through offering more programs (new and transplanted programs)
Growing New Campuses: Houston, West Albuquerque, Aurora
New program offerings at campuses: Paramedic
New online program offerings: BSHCA, BSPTA
PMI growth plans include new campuses, new on ground programs and new online programs

20. ESOP 2014
Thank you

21. New Student starts

22. Net Operating Income
6,627 to 30,908

23. Net Operating Income One Campus Difference
-2.1 Million to
+2.4 Million

24. Unmatched commitment to healthcare training
New student numbers
Starting over
11,000
New students this year!
42 years
Career Education
Community Service
Award Recognized
Unmatched commitment to healthcare training

25. 8,000 student numbers Serving nearly Active students right now!
Politically Active-Receiving Accolades from State Senators, U.S. Senators and U.S. Congressmen
Strong GE Numbers, and 3YR CDR
Outstanding Curriculum Development

26. Staff and faculty numbers
Serving over
900
Staff and faculty every two weeks!
Growth
Oriented
Family Owned
and
Legacy Mindset
Nationally
Recognized
Integrity
Leadership
Partnering
Generosity

27. Competitive Landscape
Strengths
Weakness
Improvement
Leadership
Foundation
What’s happening at other colleges in our sector?
What have you been hearing?
Why is this happening and why now?
How do we respond, what do we do differently?

28. 1 # Our Strategy What Is Our Strategy To Remain Strong and
the Premier College in Every Market? 1 #
Add Programs
Transplant Successful Programs
Open New Campuses
Have Realistic Growth Expectations of Ourselves
Remain Compliant, Honest, and Beyond Reproach

29. Our Challenges Maintain Momentum in an Improving Economy
Released Gainful Employment Regulations
Job Placement
LEAD
Lead Flow
Negative Press
Others Slowing Down

30. How Grateful Are We?

31. Go to the club H.O.P.E. website
PMI’s Health and
Wellness Program
Club H.O.P.E.
How to join
Go to the club H.O.P.E. website
pmi.theWellnessChallenge.com
Click on the JOIN NOW button at the login page and carefully follow the instructions to activate your account
Healthy, happy employees are the key to a successful, profitable company.
As an employee-owned company, we all work together to foster a worksite culture that supports employees in healthy, productive lifestyles.

32. Wellness Benefits Club H.O.P.E.
Free access to health risk assessment (HRA)
Campus Wellness Days/Health
Fairs
Annual Wellness Focus and education
Employee Assistance Program (EAP)
Health Club Reimbursement Program
Weight Waters Reimbursement program
Company-wide Health Team Challenge
Monthly Wealth of Wellness newsletter
One-on-one health consults
Campus wellness teams and activities

33. 72% of benefits • Eligible employees The Cub H.O.P.E. Wellness Program
PMI club H.O.P.E. stats
444 Members
72% of benefits • Eligible employees
213 participating in challenges each quarter (avg) • 48% of members
96 earn incentives each quarter (avg) • 45% of participants
Participating Survey Report • 217 responses
The Cub H.O.P.E. Wellness Program
Important part of the PMI culture • 79%
Valuable in keeping me on track toward a healthy lifestyle • 70%
Shows me that PMI cares about my well-being • 94%
Helps me be more productive at work • 71%

34. Health Risk Assessment 2013
PMI club H.O.P.E. stats
Team Challenge (Averages over last 3 years)
Eligible Employees
620
Number of Members
385
62%
Of eligible employees
Number of Participants
282
73%
Logged activity > one time
Met 150+ Mins/week Goal
173
61%
Avg. Mins/week Baseline
153
Avg. Mins/week During Challenge
275
79%
Increased over baseline
Health Risk Assessment 2013
Overweight or obese • -4.7%
Inadequite exercise • +2.6%
Nutritional risk >5 • -0.3%
(n=375) Percent change
from 2010
High blood pressure • -10.7%
Heat disease risk • -5.4%

35. Believe
PMI as a place where our people are happy and healthy and can excel.
A healthy company requires healthy employees.
Then, in turn, this enables PMI to optimize its performance and take off into the next era!
PMI offers opportunity
As Employee Owners we need to take personal responsibility for our health and well-being to enable a healthy company into the future!

36. How do YOU influence ESOP share price and company health?
Roll of the Campus
How do YOU influence ESOP
share price and company health?
This will be an open-ended Q&A. We will solicit answers and put them on the white board.
Examples: Expense control decisions, best practices implemented, improved efficiencies, working collaboratively as a team, honest day’s work, represent the brand well wherever you are, always take care of our students, etc.
See notes

37. 2013 Your Campus contribution
Actual
Budget
Benchmark
Variance
Stars
Retention %
Placement %
Net Operating
Income (NOI)

38. 2014 Your Campus contribution
Actual
Budget
Benchmark
Variance
Stars
Retention %
Placement %
Net Operating
Income (NOI)

39. 2014 YTD Key Accomplishments
See notes
Here we will input data the Campus Director will give us ahead of time regarding other key accomplishments of the campus already this year.
Examples – reaccreditation visits, career fairs, community events, awards and recognitions, new program launches, individual program growth, significant programmatic placement or retention improvements from prior year, etc. Anything that is outside the metrics but still demonstrates value added to the campus and thus the organization.
We will then ask the staff if there are other events we should add to this list that we overlooked.

40. Balance of the Year For Q3 and Q4
Where are our key opportunities to knock it out of the park?
What do we need to really focus on at this campus to finish strong?
We will write their input on the white board. Will probably be a good idea to have the CD set up a person or two with answers ready to get it started if others don’t contribute.
Examples: Implement best practices discussed on this year’s cruise, improve start rate, improve retention, strong HCA start in September.
See notes