National American University Holdings, Inc. Reports Fiscal 2013 First Quarter Results

Conference Call Information

Management will discuss these results in a conference call (with accompanying presentation) on October 4, 2012, at 11:00 a.m. EDT.

The dial-in numbers are:

[phone] (U.S.)

[phone] (International)

Accompanying Slide Presentation and Webcast

The Company will also have an accompanying slide presentation available in PDF format at the “Investor Relations” section of the NAU website at http://www.national.edu/InvestorRelations. The presentation will be made available 30 minutes prior to the conference call. In addition, the call will be simultaneously webcast over the Internet via the “Investor Relations” section of the NAU website or by clicking on the conference call link: http://www.investorcalendar.com/IC/CEPage.asp?ID=169773.

About National American University Holdings, Inc.

National American University Holdings, Inc., through its wholly owned subsidiary, operates National American University (“NAU”), a regionally accredited, proprietary, multi-campus institution of higher learning offering associate, bachelor’s, and master’s degree programs in health care and business-related disciplines. Accredited by The Higher Learning Commission and a member of the North Central Association of Colleges and Schools, NAU has been providing technical and professional career education since 1941. NAU opened its first campus in Rapid City, South Dakota, and has since grown to multiple locations throughout the central United States. In 1998, NAU began offering online courses. Today, NAU offers degree programs in traditional, online, and hybrid formats, which provide students increased flexibility to take courses at times and places convenient to their busy lifestyles.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's business. Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current beliefs and expectations and involve a number of assumptions. These forward-looking statements include outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on business, results of operations or financial condition. Specifically, forward-looking statements may include statements relating to the future financial performance of the Company; the ability to continue to receive Title IV funds; the growth of the market for the Company’s services; expansion plans and opportunities; consolidation in the market for the Company’s services generally; and other statements preceded by, followed by or that include the words “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “target” or similar expressions. These forward-looking statements involve a number of known and unknown risks and uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by those forward-looking statements. Other factors that could cause the Company’s results to differ materially from those contained in its forward-looking statements are included under, among others, the heading “Risk Factors” in the Company’s Annual Report on Form 10-K, filed on August 3, 2012, and in its other filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED AUGUST 31, 2012 AND AUGUST 31, 2011
(In thousands except share data)
		Three Months Ended
		August 31,
		2012				2011
REVENUE:
Academic revenue		$	26,477			$	23,700
Auxiliary revenue			2,699				1,427
Rental income — apartments			274				270
Total revenue			29,450				25,397
OPERATING EXPENSES:
Cost of educational services			7,135				6,352
Selling, general and administrative			20,421				16,775
Auxiliary expense			1,843				640
(Gain) loss on disposition of property			73				(132	)
Total operating expenses			29,472				23,635
OPERATING INCOME (LOSS)			(22	)			1,762
OTHER INCOME (EXPENSE):
Interest income			31				41
Interest expense			(253	)			0
Other income — net			35				31
Total other income (expense)			(187	)			72
INCOME (LOSS) BEFORE INCOME TAXES			(209	)			1,834
INCOME TAX (EXPENSE) BENEFIT			58				(728	)
NET INCOME (LOSS)			(151	)			1,106
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST			(13	)			(83	)
NET INCOME (LOSS) ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY
HOLDINGS, INC. AND SUBSIDIARIES			(164	)			1,023
OTHER COMPREHENSIVE LOSS —
Unrealized losses on investments, before tax			(22	)			(12	)
Income tax benefit related to items of other comprehensive loss			0				0
OTHER COMPREHENSIVE LOSS, NET OF TAX			(22	)			(12	)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.		$	(186	)		$	1,011
Basic net earnings (loss) attributable to National American University Holdings, Inc.		$	(0.01	)		$	0.04
Diluted net earnings (loss) attributable to National American University Holdings, Inc.		$	(0.01	)		$	0.04
Basic weighted average shares outstanding			25,574,478				26,710,881
Diluted weighted average shares outstanding			25,574,478				27,076,548

NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
AS OF AUGUST 31, 2012 AND AUDITED CONDENSED
CONSOLIDATED BALANCE SHEET AS OF MAY 31, 2012
(In thousands except share data)
		August 31,				May 31,
		2012				2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	16,427			$	15,658
Available for sale investments			11,403				14,917
Student receivables — net of allowance of $821 and $759 at August 31, 2012 and May 31, 2012, respectively			3,801				2,804
Other receivables			421				366
Bookstore inventory			0				6
Income tax receivable			1,640				974
Deferred income taxes			1,334				1,914
Prepaid and other current assets			367				613
Total current assets			35,393				37,252
Total Property and Equipment - Net			42,108				40,496
OTHER ASSETS:
Condominium inventory			2,667				2,667
Land held for future development			312				312
Course development — net of accumulated amortization of $1,799 and $1,715 at August 31, 2012 and May 31, 2012, respectively			1,239				1,241
Other			1,176				1,130
			5,394				5,350
TOTAL		$	82,895			$	83,098
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of capital lease payable		$	47			$	40
Accounts payable			5,613				4,175
Dividends payable			1,032				840
Student accounts payable			663				659
Deferred income			221				236
Accrued and other liabilities			5,983				6,717
Total current liabilities			13,559				12,667
DEFERRED INCOME TAXES			5,098				5,098
OTHER LONG-TERM LIABILITIES			4,197				4,161
CAPITAL LEASE PAYABLE, NET OF CURRENT PORTION			10,447				10,460
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, $0.0001 par value (50,000,000 authorized; 28,059,307 issued and 25,575,540 outstanding as of August 31, 2012; 28,057,891 issued and 25,574,124 outstanding as of May 31, 2012)			3				3
Additional paid-in capital			57,282				57,203
Retained earnings			10,051				11,239
Treasury stock, at cost (2,483,767 shares at August 31, 2012 and May 31, 2012)			(17,589	)			(17,589	)
Accumulated other comprehensive income, net of taxes - unrealized gain on available for sale securities			3				25
Total National American University Holdings, Inc. stockholders' equity			49,750				50,881
Net income attributable to non-controlling interest			(156	)			(169	)
Total equity			49,594				50,712
TOTAL		$	82,895			$	83,098

The following table provides a reconciliation of net income attributable to the Company to EBITDA:

		Three Months Ended August 31,
		2012					2011
		(dollars in thousands)
Net Income attributable to the Company		($164		)			$1,023
Income (Loss) attributable to non-controlling interest			13					83
Interest Income			(31	)				(41	)
Interest Expense			253					0
Income Taxes			(58	)				728
Depreciation and Amortization			1,351					879
EBITDA		$1,364					$2,672

Consists of income attributable to the Company, less income from non-controlling interest, plus loss from non-controlling interest, minus interest income, plus interest expense (which is not related to any debt but to the accounting required for the capital lease), plus income taxes, plus depreciation and amortization. The Company uses EBITDA as a measure of operating performance. However, EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or GAAP, and when analyzing its operating performance, investors should use EBITDA in addition to, and not as an alternative for, income as determined in accordance with GAAP. Because not all companies use identical calculations, its presentation of EBITDA may not be comparable to similarly titled measures of other companies and is therefore limited as a comparative measure. Furthermore, as an analytical tool, EBITDA has additional limitations, including that (a) it is not intended to be a measure of free cash flow, as it does not consider certain cash requirements such as tax payments; (b) it does not reflect changes in, or cash requirements for, its working capital needs; and (c) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements, or future requirements for capital expenditures or contractual commitments. To compensate for these limitations, the Company evaluates its profitability by considering the economic effect of the excluded expense items independently as well as in connection with its analysis of cash flows from operations and through the use of other financial measures.

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