National American University Holdings Inc. operates through its wholly owned subsidiaries to operate the National American University (NAU), a regionally accredited, for-profit, multi-campus institution offering Associate, Bachelor and Master degree programs in allied health and business-related disciplines. The company today reported its unaudited financial results for its fiscal year 2011 first quarter ended August 31, 2010.
National American operates in two business segments: the NAU academic segment, and ownership in multiple apartments and condominium complexes, all of which generate sales and rental income.
The company reported revenue for the first quarter ended August 31, 2010, at $23.2 million, up 34.2 percent from $17.3 million for the comparable quarter of last year. An increase in enrollment generated a 33.5 percent increase in academic segment total revenue, reported at $22.7 million for the first quarter, as compared to $17.0 million for the first quarter the year prior.
Net income for the first quarter of fiscal 2011 was $1.3 million, or $0.05 per diluted share, compared to $1.3 million in the prior-year period.
National American’s EBITDA for the first quarter of fiscal 2011 was $2.7 million, compared to $2.8 million in the prior-year period. The company attributes the decrease in EBITDA to an increase in selling, general and administrative expenses.
In the first quarter, the company opened new hybrid learning centers in Colorado, Kansas, Minnesota and Texas, and expanded its nursing program into Kansas, Minnesota and South Dakota.
Ronald L. Shape, Ed.D., CEO of National American, said the company plans on continuing its expansion efforts.
“We are very pleased with our growth during the fiscal 2011 first quarter, as the company’s year-over-year revenues and enrollment were up significantly despite the summer being typically NAU’s slowest enrollment period. We continue to execute our strategic growth initiatives by developing and expanding additional degree and diploma programs, new campus locations, support infrastructure, and marketing research,” Shape stated in the press release.
As of August 31, 2010, the company had cash and cash equivalents and investments of $39.5 million, working capital of $35.0 million, no long-term debt, and stockholders’ equity of $52.6 million; compared to cash and cash equivalents and investments of $19.8 million, working capital of $4.4 million, no long-term debt, and stockholders’ equity of $21.4 million at May 31, 2010.
“We believe that we have created a scalable and cost-efficient operating structure well equipped to capitalize on potential enrollments in new and existing markets. We expect to leverage the company’s strong free cash flow and balance sheet to continue expanding NAU’s businesses throughout this fiscal year while remaining focused on providing the highest quality education opportunities for our students,” Shape stated.
For more information visit www.national.edu
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