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Higher Ed, we target marketing costs (labor and expenses) to be about 10% - 12% of the annual net
revenue. The blue line in the chart indicates 10% of the net revenue earned for the year. The most
dramatic increases over the last few years, as the number of opportunities dwindled, is in our
marketing labor costs, reflecting personnel reductions in the previous fiscal years.

Mkt Cost Higher Education Net Revenue

$350,000 3,500,000
$300,000 3,000,000

$250,000 2,500,000

$200,000 2,000,000

$150,000 1,500,000

$100,000 1,000,000
$50,000 500,000

$- -
FY13 FY14 FY15 FY16 FY17
Mkt Labor Mkt Exp Net Revenue

As reflected in the graph below, we did improve considerably from a profitability standpoint in FY
2017, after three unprofitable years driven primarily by the University of Chicago Laboratory Schools
project. This project is nearly closed out, and we have been able to earn a significant amount of
revenue that had been held in reserve. Although total revenue is down, we are pleased that the
work we do have is being accomplished profitably.

Higher Education: Revenue Summary

10,000,000

8,000,000

6,000,000
Gross Revenue
4,000,000
Net Revenue

2,000,000 Project Profits
3% 20%
-
-14% -9% -10%
(2,000,000)
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017