For-profit National American U raises doubts about survival
By Ben Unglesbee
January 24, 2019
With enrollment declines driving down revenue since 2013, NAUH is closing its ground-based locations to reduce costs and is moving to cut enough staff to save $1.5 million in payroll expenses by the end of the third quarter of its 2019 fiscal year. Though the moves are meant to save money and reduce cash outflow, the operator acknowledged the shift online could hurt its revenue in the immediate future.
The earnings report comes as NAUH starts trading on a penny exchange after leaving the Nasdaq because its market capitalization fell below required levels.
From 2014 to 2018, NAU’s revenue dropped nearly 40% to $77.2 million, due mostly to enrollment declines. During that time, the company went from recording an annual profit of $3.5 million to… (continue reading)
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