National American University Holdings, Inc. (NAUH) saw its loss narrow to $0.75 million, or $0.03 a share for the quarter ended Nov. 30, 2016. In the previous year period, the company reported a loss of $1.18 million, or $0.05 a share.
Revenue during the quarter dropped 14.59 percent to $21.98 million from $25.74 million in the previous year period. Gross margin for the quarter contracted 301 basis points over the previous year period to 70.45 percent. Operating margin for the quarter stood at negative 4.52 percent as compared to a negative 5.28 percent for the previous year period.
Operating loss for the quarter was $0.99 million, compared with an operating loss of $1.36 million in the previous year period.
Ronald L. Shape, Ed.D., president and chief executive officer of the Company, stated, "We were pleased to see positive enrollment trends despite a lower year-over-year headcount. We continued to see double-digit percentage growth in our continuing education, doctoral, and graduate programs, and saw our total headcount increase quarter-over-quarter. Many of our peers are faced with challenging operating conditions in light of the current market, and as a result certain institutions have no answer but to close their doors, which in turn displaces many thousands of students. We are pleased to have received applicable regulatory approvals for a teach-out of over 1,000 students at a recently closed school in Texas. As of the date of this press release, approximately 1,000 of those students have expressed interest to enroll at NAU."
Working capital drops significantly
National American University Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $17.42 million as at Nov. 30, 2016, down 40.85 percent or $12.03 million from $29.45 million on Nov. 30, 2015. Current ratio was at 2.41 as on Nov. 30, 2016, down from 3.73 on Nov. 30, 2015.
Days sales outstanding went up to 28 days for the quarter compared with 27 days for the same period last year.
At the same time, days payable outstanding went up to 48 days for the quarter from 43 for the same period last year.
Debt comes down marginally
National American University Holdings, Inc. has recorded a decline in total debt over the last one year. It stood at $11.72 million as on Nov. 30, 2016, down 2.21 percent or $0.26 million from $11.98 million on Nov. 30, 2015. Total debt was 18.43 percent of total assets as on Nov. 30, 2016, compared with 15.52 percent on Nov. 30, 2015. Debt to equity ratio was at 0.33 as on Nov. 30, 2016, up from 0.26 as on Nov. 30, 2015.
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