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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 third quarter and nine months ended February 29, 2012.
Ronald L. Shape, Ed.D., Chief Executive Officer of the Company, commented, “We continue to be very pleased with our top-line growth and profitability, which we feel is a strong accomplishment given our geographic and programmatic expansion in a heightened regulatory environment. NAU has grown from 17 locations to 35 in the past three years (with four pending). NAU increased its enrollment by 10.5% over the same period last year during the fiscal 2012 third quarter, largely as a result of this expansion. Throughout fiscal 2012, we have incurred higher expenses through the addition of staffing, marketing, and facility expense at these new campus locations without offsetting revenue and enrollment. As NAU moves into the fiscal 2013 year, we plan to transition from this geographic expansion strategy to a more vertical approach of growth, developing programs and focusing on enrollment growth at each of our campus locations throughout the U.S., while building on our highly respected academic standards.”
Operating ReviewUpdate on Facility Expansion
NAU currently owns one property and leases 35 physical properties in the states of Colorado, Indiana, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Oklahoma, Oregon, South Dakota and Texas. NAU’S online academic and degree programs continue to grow. In addition, NAU continues to operate additional hybrid locations which utilize small physical facilities in strategic geographic areas, allowing its students to meet face-to-face with staff for assistance on their educational choices and related services while completing the majority of the coursework online.
During the remainder of fiscal year 2012, the Company is committed to moving forward with its campus expansion plans, while closely tracking the expenditures associated with these new educational sites, new program development, and program expansion within the SG&A expense category. The Company expects that its SG&A as a percentage of total revenue will decline as it focuses on increasing enrollment at its existing campus locations over the next fiscal year.