The Advisory Board Company Reports Fiscal Year 2008 Third Quart...(25429 $194077 16.2% Percentages of...),Health

Percentages of

Revenues

Cost of services 46.7% 48.0% 46.4% 47.2%

Member relations

and marketing 21.2% 21.7% 20.9% 21.4%

General and

administrative 12.1% 12.2% 12.1% 12.2%

Depreciation and

loss on disposal

of assets 1.7% 1.2% 1.6% 1.0%

Income from

operations 18.3% 16.9% 19.0% 18.2%

Net income 14.2% 13.5% 14.6% 14.5%

THE ADVISORY BOARD COMPANY

CONSOLIDATED BALANCE SHEETS

(In thousands)

December 31, March 31,

2007 2007

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $29,068 $13,195

Marketable securities 10,675 12,718

Membership fees receivable, net 93,313 57,671

Prepaid expenses and other current assets 3,777 3,123

Deferred income taxes 18,630 21,673

Total current assets 155,463 108,380

Fixed assets, net 20,974 17,421

Intangible assets, net 1,117 1,011

Goodwill 5,426 5,426

Deferred incentive compensation and

other charges 22,827 13,857

Deferred income taxes, net of current

portion 3,114 6,629

Marketable
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