National American University Holdings, Inc. · OTC:NAUH
National American University — Investor Presentation (September 2013)
38 slides from National American University's investor presentation, Sep 12, 2013
Slide 1: Investor Presentation September 2013
NASDAQ: NAUH Investor Presentation September 2013 You deserve an education. We provide the opportunity.
Slide 2: Safe Harbor
2 Safe Harbor This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about National American University Holdings, Inc. and its affiliated entities (the "Company"). Forward-looking statements are statements that are not his
Slide 3: NAUH Overview
3 NAUH OVERVIEW
Slide 4: Key Takeaways
4.8% dividend yield* 4 Key Takeaways Continued Enrollment Growth (slides 10-13) Focus on Vertical Growth (slides 16-18) Shareholder Friendly (slide 36) Strong Financial Growth (slide 30) *At 8/30/2013
Slide 5: Company Overview: NAUH At-A-Glance
5 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, master's, and doctoral degree programs in technical and
Slide 6: Financial Highlights/Valuation Metrics
6 Financial Highlights/Valuation Metrics Select Financial Info for the TTM ended 5/31/2013: Select Financial Info for the TTM ended 5/31/2013: Total Revenue $129.2 million Net Income Attributable to NAUH $5.4 million Diluted EPS $0.21 Cash/Short-term Investments $31.9 million (at 5/31/2013) Total Pr
Slide 7: NAU postsecondary institution for nontraditional students
7 NAU is a postsecondary educational institution catering to the nontraditional student, typically in his/her early 30s, seeking to complete a degree either for the first time or in a new field, while also juggling pressures of family obligations and work commitments Regionally accredited by the Hig
Slide 8: Investment Highlights
8 FY 2013 annual revenues increased 8.6% to $129.2 million from $118.9 million in prior year FY 2013 income before non-controlling interest and taxes increased 4.1% to $9.2 million from $8.8 million in prior fiscal year $31.9 million in cash and short-term investments, no long-term debt at 5/31/2013
Slide 9: Experienced Management Team
9 Experienced Management Team Dr. Ronald Shape Chief Executive Officer Dr. Jerry L. Gallentine President Dr. Sam Kerr Chief Operating Officer Ms. Venessa Green Chief Financial Officer Dr. Robert Paxton President-Online Learning Ms. Michaelle Holland President of Campus Operations Mr. Scott Toothman
Slide 10: Enrollment by Credit Hour
Credit Hours 10 Enrollment by Credit Hour FY 2008 169,670 FY 2009 203,114 19.7% YoY growth FY 2010 276,125 35.9% YoY growth FY 2011 337,558 22.2% YoY growth FY 2012 372,097 10.2% YoY Growth FY 2013 390,930 5.1% YoY Growth (CHART)
Slide 11: Enrollment Breakout
11 Enrollment Breakout Spring 2013 enrollment increased 2.2% YoY to 11,472 students
Slide 12: Enrollment Comparison
12 (CHART) APOL STRA EDMC National American University Over the past several quarters, NAU has reported healthy YoY enrollment growth rates, particularly when compared to those of its peers. CPLA Enrollment Comparison Source of enrollment figures: quarterly earnings releases from CPLA, EDMC, STRA, A
Slide 13: Factors Affecting Enrollment Growth
13 Factors Affecting Enrollment Growth Continued investment in the development of physical locations Dedicated focus on utilizing existing capacity Continued investment in the expansion of current academic programs and development of new academic programs Improved enrollment management system and re
Slide 14: Expansion
14 EXPANSION
Slide 15: Expansion Highlights
Expansion Highlights FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Financial Investment Campus Expansion Focused Expenditures Vertical Growth
Slide 16: Geographic Growth
(CHART) Geographic Growth 37 Current Locations (includes pending in orange) Colorado - 4 Indiana - 1 Kansas - 3 Minnesota - 6 Missouri - 4 Nebraska - 1 Locations Pending Approvals Austin Graduate Center, TX Houston, TX NAU Locations 16 Note: Number of locations for fiscal years 2009, 2010, 2011, 201
Slide 17: Geographic Footprint
Current locations Pending approvals 17 Geographic Footprint NAU offers online programs in every U.S. state except Massachusetts and Rhode Island. Geographic Footprint 17
Slide 18: Online Growth Strategy
18 Online Growth Strategy Online Growth Strategy Support Centers Vertical Growth International Exposure Program Mix Strategic Alliances Strategically placed to maximize online enrollments in new markets Dedicated focus on utilizing existing capacity Strategic relationships and degree programs for in
Slide 19: Academics
19 ACADEMICS
Slide 20: Academic Highlights/Focus
20 Academic Highlights/Focus Continued academic program expansion, including business, IT, and allied health at the undergraduate level Received approval from the Higher learning Commission (HLC) to offer the Education Doctorate (Ed.D.) in Community College Leadership Received approval from the HLC
Slide 21: Academic Breakdown for Spring '13 Term
21 Academic Breakdown for Spring '13 Term Degree Offering Academic Area (CHART) (CHART)
Slide 22: Roueche Graduate Center
22 Roueche Graduate Center Located in Austin, Texas Led by Dr. John E. Roueche, a nationally recognized authority in community college education Houses NAU's Harold D. Buckingham Graduate School Represents NAU's commitment to quality graduate programming In August 2013, became HLC-approved to offer
Slide 23: NAU Community College Advisory Board
23 NAU Community College Advisory Board Dr. George R. Boggs President and CEO Emeritus American Association of Community Colleges Dr. Donald W. Cameron President Emeritus Guilford Technical Community College Dr. Gerardo E. de los Santos President and Chief Executive Officer League for Innovation in
Slide 24: Accreditation & Regulatory Compliance
24 Accreditation & Regulatory Compliance Regional accreditation by the Higher Learning Commission and member of the North Central Association of Colleges and Schools Programmatic accreditation and approvals by various national educational and professional associations Continual evaluation of regulat
Slide 25: Accreditation & Academic Quality
25 Accreditation & Academic Quality Third-party Accreditation and Approvals Regional Accreditation by The Higher Learning Commission Colorado Board of Nursing Kansas State Board of Nursing Minnesota Board of Nursing Missouri State Board of Nursing New Mexico Board of Nursing South Dakota Board of Nu
Slide 26: Academic Excellence: Course Completion and Persistence
*Represents students who received a grade in the course. 26 Academic Excellence Course Completion* High Student Term-to-Term Persistence (CHART) (CHART)
Slide 27: Graduate Employment Rate
Rates as reported by responding students from inquiry made within 90 days of receiving the degree. 27 Graduate Employment Rate - Quarterly Average (CHART)
Slide 28: Cohort Default Rate
28 Cohort Default Rate (CDR) (CHART) NAU Cohort Default Rate vs. Proprietary Institutions * * *Draft rates
Slide 29: Financials
29 FINANCIALS
Slide 30: History of Financial Growth
History of Financial Growth (CHART) $ in USD thousands 30
Slide 31: Q4 Revenues and Cost of Educational Services
31 Q4 Revenues and Cost of Educational Services (CHART) Q4 Results Q4 Results Q4 Results (in USD thousands) Q4 2013 (unaudited) Q4 2012 (unaudited) Revenue $33,162 $33,110 Cost of educational services $7,493 $7,609 SG&A $21,441 $20,274 (in millions) Q4 Revenue
Slide 32: Q4 Net Income and EBITDA
(CHART) 32 Q4 Net Income and EBITDA (in millions) *Please see reconciliation of EBITDA to net income attributable to the Company in the press release dated July 31, 2013, available at www.national.edu/investorrelations. Q4 EBITDA Q4 Results Q4 Results Q4 Results (in USD thousands) Q4 2013 (unaudited
Slide 33: FY 2013 Revenues and Cost of Educational Services
(CHART) (in millions) 33 FY 2013 Revenues and Cost of Educational Services Fiscal Year Revenue Fiscal Year Results Fiscal Year Results Fiscal Year Results (in USD thousands) FY 2013 (audited) FY 2012 (audited) Revenue $129,176 $118,894 Cost of educational services $29,188 $27,831 SG&A $82,906 $77,47
Slide 34: FY 2013 Net Income and EBITDA
(CHART) 34 FY 2013 Net Income and EBITDA (in millions) *Please see reconciliation of EBITDA to net income attributable to the Company in the press release dated July 31, 2013, available at www.national.edu/investorrelations. Fiscal Year EBITDA Fiscal Year Results Fiscal Year Results Fiscal Year Resu
Slide 35: Strong Balance Sheet
Strong Balance Sheet 35 (in USD thousands) May 31, 2013 May 31, 2012 Cash and cash equivalents / available for sale investments $ 31,878 $ 30,575 Working capital $ 23,843 $ 24,585 Long-term debt $ 0 $ 0 Stockholders' equity $ 50,788 $ 50,712
Slide 36: Shareholder Friendly
Shareholder Friendly Dividend-paying company Dividend yield of 4.8% (CHART) 36
Slide 37: Key Takeaways
4.8% dividend yield* 37 Key Takeaways Continued Enrollment Growth (slides 10-13) Focus on Vertical Growth (slides 16-18) Shareholder Friendly (slide 36) Strong Financial Growth (slide 30) *At 8/30/2013
Slide 38: Contact Information
Contact Information: National American University Holdings, Inc. Dr. Ronald Shape 605-721-5220 rshape@national.edu Investor Relations Counsel The Equity Group Inc. Carolyne Yu 415-568-2255 cyu@equityny.com Adam Prior 212-836-9606 aprior@equityny.com 38 Thank You
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