National American University Holdings, Inc. · OTC:NAUH
National American University — Investor Presentation (September 2014)
37 slides from National American University's investor presentation, Sep 17, 2014
Slide 1: Investor Presentation | September 2014
Exhibit 99.1 Investor Presentation | September 2014
Slide 2: Safe Harbor
SAFE Inc. expectations forward-looking uncertainties continued ability economic May to theand 31, forward-looking HARBOR toits 2014, meet conditions, compliance affiliated of regarding debt which the statements. This Company’s obligations entities was as with presentation statements. the well filed
Slide 3: NAUH Overview
NAUH OVERVIEW NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.
Slide 4: Key Takeaways
KEY TAKEAWAYS Enrollment Trends (slides 10-13) Focus on Vertical Growth (slides 14-16) Strong Financial Growth (slide 28) Shareholder Friendly (slide 34) 5.7% dividend yield* *At 9/4/2014 4
Slide 5: Company Overview
aCOMPANY 5/31/2014) students regionally increased doctoral accredited, OVERVIEW flexibility degree proprietary, National programs to takeAmerican multi-campus courses in technical atUniversity times Fiscal Headquarters andYear NAUH places Endconvenient Rapid At-A-Glance May City, 31 andto South thei
Slide 6: Financial Highlights/Valuation Metrics
FINANCIAL $0.14 Stock (mrq) Cash/Short-term $0.045 Price $3.16 Dividend HIGHLIGHTS/VALUATION (at 9/4/2014) Investments Yield 5.7% Market (at $19.6 9/4/2014) Capmillion $79.4 METRICS 6(at million 5/31/2014) Select (at 9/4/2014) Financial Total Property Shares Info forBook and the Equipment TTM Valuee
Slide 7: Operating Highlights
OPERATING their Learning on-ground, development programming earlyCommission; 30s, online, of Economic HIGHLIGHTS seeking academic or a combination various toconditions programs complete History programmatic aFocus ofdegree ofboth Organic on37 either growing accreditations physical Growth, for the en
Slide 8: Investment Highlights
INVESTMENT decreased taxes insurance extensive of $5.8 experience premium enrollment million, HIGHLIGHTS costs in driven compared the $19.6 postsecondary by million weaker Solid to $9.2Financials, in market million cash education and demand inWell prior short-term industry Capitalized, year amongpri
Slide 9: Experienced Management Team
EXPERIENCED Initiatives Ms. Chief MANAGEMENT Venessa Financial TEAMGreen Dr.Officer Chief Ronald Ms. Michaelle Executive Holland ShapePresident Officer Dr. of Jerry CampusL. Gallentine OperationsPresident Dr. Chief Sam Operating Kerr Officer Dr. Robert Paxton President of Strategic
Slide 10: Enrollment by Credit Hour and YoY Growth
ENROLLMENT 72,424 379,39272,993 19.7%70,758 YoY BYgrowth CREDIT 59,09535.9% Credit HOURYoY 60,000 120,000 growth 53,265 102,727 22.2% 54,205 YoY 98,385 52,106 growth 99,146 38,649 10.2% 98,167 40,000 YoY100,000 growth 20,00096,745 5.1% 0 FYYoY 2009 99,694 growth FY95,792 2010 2.9% FY 95,377 YoY 2011
Slide 11: Enrollment Breakout
ENROLLMENT Students -4.6% Hybrid Growth 1,690 Continuing BREAKOUT 2,021 -16.4% EdSpring 12Total 0— 2014 10,857 Doctoral enrollment 11,472 37 0 — -5.4% decreased Graduate 11 5.4% 322 YoY 397 -18.9% to 10,857 Undergraduate students May10,486 31, 2014 11,075 May-5.3% 31, 2013 Total (Spring 10,857‘14 11
Slide 12: Enrollment Comparison
ENROLLMENT 7.2% stopped 4.8% providing 3.8% 2.2% COMPARISON total -3.6% enrollment 0.0%30.0% figures -2.6%24.3% -5.4% starting CPLA APOL withYoY the -10.0% Fall Enrollment -20.0% ‘12 quarter. -30.0% Growth Figures Source Rates in 20.0% the of enrollment chart 24.1% fromNational figures: that period
Slide 13: Factors Affecting Enrollment Growth
9 FACTORS academic growth Quality programs AFFECTING academic Improved programming ENROLLMENT enrollmentEconomic management GROWTH conditions system Dedicated Timing and recruiting/retention/persistence focus of regulatory on utilizing approvals existingfor capacity new efforts locations Continued E
Slide 14: Geographic Footprint
GEOGRAPHIC FOOTPRINT Current locations Pending approvals 14
Slide 15: Geographic Growth
GEOGRAPHIC 30 FY Minnesota 2011 FY 2012 – 6GROWTH South FY 2013 Dakota FY NAU2014 – 5Locations Missouri Note: Number 37 – 4Current Texas of locations –Locations 9 25 22for Nebraska 40fiscal 37 37years –(includes 1 20 2009, 17 35 pending 2010, Locations 2011, in orange) 2012, Pending 2013, 35 Approva
Slide 16: Online Growth Strategy
ONLINE demand future 10,234—Q4’05 student Increase GROWTH new Q2’06 placed markets STRATEGY Q4’06 to on students utilizing Q2’07Online opportunities Q4’07 relationships Growth Q2’08Growth Strategy Q4’08 and programs Q2’09 inSupport Online Q4’09 enrollments International and Q2’10 On-ground and Q4’10
Slide 17: Academics & Student Performance
ACADEMICS & STUDENT PERFORMANCE 7
Slide 18: Academic Highlights/Focus
ACADEMIC (Education the allied Roueche healthDoctorate and Graduate HIGHLIGHTS/FOCUS associate (Ed.D.) Center degree in Austin, Community programs Continued Texas, Continued College which academic Leadership) houses focusprogram on NAU’s course in expansion, January Harold completion, D. 2014, Bucki
Slide 19: Academic Breakdown for Spring '14 Term
ACADEMIC Health, 3.0% Nursing, BREAKDOWN27.4% 10.5% FOR SPRING Associate, ‘14Bachelor’s, TERM Academic 56.3% IT, Area 7.1% Degree 32.8%Offering Business, CCLP, 40.9% 0.3% 19 Cont Ed, Doctoral, Non-Credit, 0.1% .3% 0.1% Other, Other, 13.7% 7.5% Master’s, Allied
Slide 20: Roueche Graduate Center
ROUECHE authority? NAU’s College in the doctoral Harold Leadership Former GRADUATE program D. Buckingham Professor HLC-approved in CENTER January & Director, Graduate 2014 toLocated offer Goal: Community School five intoAustin, new Represents better doctoral-level College serve TexasNAU’s the Leader
Slide 21: NAU Graduate Community College Advisory Board
NAU Graduate Managing Community Dr. ThisLynn board NATIONAL Priddy Center Principal serves Colleges College (Ex-officio NAU; asCOMMUNITY North an Dr. Cuyahoga President advisory Gerardo Carolina member) Community group E. Emeritus, COLLEGE State deProvost, los onUniversity matters Santos League Coll
Slide 22: Accreditation & Regulatory Compliance
ACCREDITATION Programmatic federal, Completion state,Academy and accreditation accrediting & REGULATORY and agency approvals requirements COMPLIANCE by various Recertification national Regional educational accreditation by U.S. and Department professional by the Higher of Education associations Lear
Slide 23: Accreditation and Academic Quality
ACCREDITATION Board Nursing Allied Veterinary of Health (ACEN) Nursing Technician Education (Formerly ? Minnesota & Education ACADEMIC Programs NLNAC)? Board and (CAAHEP)? QUALITY Activities ofCommission Nursing?(CVTEA)? American Regional Missouri on Collegiate Accreditation Bar State State Associat
Slide 24: Course Completion and Persistence
COURSE 78.51% Summer 92.0% toCOMPLETION Fall78.00% Winter Spring 90.2% AND 90.0% Summer PERSISTENCE 90.0% Q4 FY2013 76.00% Course Q4 75.46% FY2014 Completion* 88.0% 2012-2013 74.00% Term-to-Term 2013 86.0% 2013 72.00% Persistence 2013Undergraduate 2013-2014 98.0% 2014 84.00% Graduate 2014 97.0% *Rep
Slide 25: Graduate Placement Rates
GRADUATE Winter SpringPLACEMENT 2012 Summer Fall RATES2012100% Winter 92%Spring 88% 2013 89% Summer 90% 87%Fall 86% 2013 86%2011-2012 85% 85%2012 79% 2012-2013 80% 80% 75% 201372% Overall 67%Placement 70% 63% Rate 60% Placement 57% 57% 54% Rate 50% (in field 43%only) 40%2530% 20% 10% 0% Fall 2011
Slide 26: Cohort Default Rate
COHORT 8.6% Proprietary Act, as8.2% amended, DEFAULT 8.2% Institutions-3 8.0% FY2011 RATE 8.2% year is the (CDR) 7.3% CDR final 6.5% NAU-3 30.0% year7.5% of25.0% year a 7.3% three-year CDR 24.6% 5.8% * NAU’s 23.0% transition 5.5% 5.0% 22.9% FY2011 period 0.0% 21.8% draft from 2000 3-year 21.5% 2-yea
Slide 27: Financials
FINANCIALS NATIONAL AMERICAN UNIVERSITY HOLDINGS, INC.
Slide 28: History of Financial Growth
HISTORY FY 2009 FY OF2010 FINANCIAL FY 2011 FY GROWTH 2012 FYTotal 2013 Revenue FY 2014 $140,000 28 $129,176 $127,753 $118,894 $120,000 $106,808 $100,000 $89, thousands $80,000 $62,584 USD $60,000 in $ $40,000 $20,000 $-
Slide 29: FY 2014 Q4 Revenues and Cost of Educational Services
FY 2014 $35.0 $33.2 Q4 Revenue REVENUES $31,968 AND $33,162 COST $30.0 OF EDUCATIONAL $32.0 $25.0 CostSERVICES of $20.0 educational FY 2014 Q4 $7,643 Results $7,493 Revenue services for FY $15.0 2014 $10.0 Q4 SG&A Q4 2014 $20,196 Q4 2013 $21,441 (in millions) $5.0 $0.0 (in FY USD2014 thousands) Q4 F
Slide 30: FY 2014 Q4 Net Income and EBITDA
FY 2014see controlling *Please Q4$4.1 reconciliation NET $2,253 INCOME$2,055 of AND EBITDA $3.5EBITDA $3.8 to net interest FY income 2014 andattributable taxes Q4 Results $3.0 $2.5 to EBITDA theNet Company income for FYin $2.0 2014 theattributable press Q4 (inrelease USD tothousands) dated $1,335Aug
Slide 31: FY 2014 Revenues and Cost of Educational Services
FY 2014Revenue $129.2 REVENUES $127,753 AND $129,176 COST OF$120.0 EDUCATIONAL $100.0 Cost of SERVICES $80.0 educational FY 2014$29,478 Results $29,188 Revenueservices for FY 2014 $60.0FY $40.0 2014SG&A FY 2013 $85,286 (in millions) $82,906 (in $20.0 USD$0.0 thousands) FY 2014 (audited) FY 2013 (aud
Slide 32: FY 2014 Net Income and EBITDA
FY 2014interest $9,184 EBITDA NET to netINCOME and income $12.8 attributable AND taxes EBITDA $12.0 to $10.0 theFY Company Net 2014income Results in the $8.0 EBITDA press attributable release for FY dated to2014 $3,485 August FY$5,446 2014 6, 2014, FY $6.0 2013 available NAUH(in USD $4.0 at www.nati
Slide 33: Strong Balance Sheet
STRONG term debt $BALANCE 0 $ 0 Stockholders’ SHEET Mayequity 31,$ May 51,195 31,$(in 50,788 USD thousands) 2014 2013 Cash and cash equivalents/available for $ 19,589 $ 31,878 sale investments Working capital $ 25,714 $ 23,843 Long-
Slide 34: Shareholder Friendly
SHAREHOLDER $0.03 $0.03 $0.02 $0.01 FRIENDLY $0.00 Q2’11 Dividend-paying Q3’11 Q4’11 company Q1’12 Quarterly Q2’12 Q3’12 Dividends Q4’12 Q1’13 $0.05 $0.045 Q2’13 $0.045 Q3’13 Q4’13 $0.045Q1’14 $0.045Q2’14 $0.045Q3’14 $0.04Q4’14 $0.04 Q1’15 $0.04 $0.04 o Dividend $0.04 yield $0.0325 of 5.7% $0.0325 $
Slide 35: Key FY 2014-2015 One-Time Impacts
KEY FYsale—$3.2 campus scheduled2014-2015 for review million ONE-TIME in October cash on IMPACTS the balance Timing sheet—$1.8 of cash million receivedcash for student gain on receivables the income shifted statement to June/July Tenant improvement 2014, from receivable—$1.4 March/April 2013—$13.8 m
Slide 36: Key Takeaways
KEY TAKEAWAYS Enrollment Trends (slides 10-13) Focus on Vertical Growth (slides 14-16) Strong Financial Growth (slide 28) Shareholder Friendly (slide 34) 5.7% dividend yield* *At 9/4/2014
Slide 37: Thank You
THANK YOU National csohn@equityny.com Adam American Prior 212-836-9606 University Holdings, aprior@equityny.com Inc. Dr. Ronald36 Shape 605-721-5220 rshape@national.edu Investor Relations Counsel The Equity Group Inc. Carolyne Y. Sohn 415-568-2255
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