National American University Holdings, Inc. (the “Company”) (NASDAQ: NAUH), which through its wholly owned subsidiary operates National American University (“ NAU”), a regionally accredited, proprietary, multi-campus institution of higher learning, today reported unaudited financial results for its fiscal year 2012 second quarter and six months ended November 30, 2011.
The Company, through its wholly owned subsidiary, operates in two business segments: academic segment, which consists of NAU’s undergraduate and graduate education programs and contributes the primary portion of the Company’s revenue; and ownership in multiple apartments and condominium complexes from which it derives sales and rental income. The real estate operations generated approximately 1% of the Company’s revenues for the quarter ended November 30, 2011.
Ronald L. Shape, Ed.D., Chief Executive Officer of the Company, commented, “As a result of continued investment in NAU’s geographic expansion and programmatic development, we achieved double-digit growth in NAU’s enrollment to a record 10,898 students during the fiscal 2012 second quarter. Because of our strategic growth initiatives, SG&A expenses were higher during the period, and we expect these expenses will continue to be high through the third and fourth quarters of this fiscal year. However, as we enter fiscal 2013 we will shift our resources from expanding geographically to growing program offerings and headcount at the existing locations. At the same time, we continue to experience slower regulatory approvals for new locations, which has affected our short-term enrollment growth by approximately 4% to 6% as we cannot begin actively recruiting at these locations until we receive all necessary approvals. We continue to work closely with the appropriate governing bodies to obtain necessary programmatic approvals, and we’re proud to announce last month that our baccalaureate and master’s degree programs in nursing were granted official programmatic accreditation by the Commission on Collegiate Nursing Education (CCNE), a renowned national accreditation agency for nursing. We made improvements at existing locations in Colorado, Kansas, and Texas, and also made progress on development of our new learning centers in several states during the period. Despite the challenges, we continue to focus on our students, who choose to pursue their studies at NAU because we offer a variety of quality academic programs and the flexibility to also meet their work and family obligations.”