National American University Holdings reported results for the 2016 second quarter ended November 30, 2015. Total revenues were $25.7 million, compared to $30.6 million in the same period last year.
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The academic segment’s total revenue was $25.5 million, compared to $30.3 million in the prior-year period.
This decrease in academic segment revenues was primarily a result of a decrease in enrollment, which was driven by weaker market demand among NAU’s targeted student demographic and an improving economic environment in which many working adults choose not to attend school.
Educational services expense was $6.8 million, or 26.8% of the academic segment’s total revenue, compared to $7.1 million, or 23.3%, for the FY 2016 second quarter. The increase in cost of educational services as a percentage of total academic revenue was the result of fixed facility costs on lower revenues.
During the FY 2016 second quarter, SG&A expenses increased to $18.8 million, or 73.1% of total revenues, from $17.3 million, or 56.5%, in the prior-year period.
This increase was largely the result of a $0.3 million increase in the provision for uncollectable tuition, as well as the reversal of $1.5 million in non-cash compensation expense related to performance-based restricted stock awards in the FY 2015 second quarter.
Loss before income taxes and non-controlling interest for the FY 2016 second quarter was $1.5 million, compared to income before income taxes and non-controlling interest of $4.5 million in the same period last year, primarily as a result of decreased revenues and increased SG&A expenses.
Net loss attributable to the company for the FY 2016 second quarter was $1.2 million, or $0.05 per diluted share based on 25.2 million shares outstanding, compared to net income attributable to the company of $2.8 million, or $0.11 per diluted share based on 25.2 million shares outstanding, in the prior-year period.
EBITDA for the FY 2016 second quarter were $0.1 million, compared to $6.3 million in the prior-year period. ■